Wall Street Match Up: Kandi Technologies Vs. Tesla Motors [View article]
A person who visited the exhibition in Haikou, Hainan just told me that the robotic arm shown in the first picture above allows to do a fully automated battery swap for the KD5011XXYEV! I also found an article with more pictures that seem to prove her statement! Please check: http://bit.ly/vkwXnf
Wall Street Match Up: Kandi Technologies Vs. Tesla Motors [View article]
Arthur, Great article and let me congratulate you on your synopsis! There are a couple of points that I like to comment on:
“Nowhere in the World other than China will you find this strong Government conviction toward EVs” Yes, absolutely correct, I have documented the Government’s support and policy actions in Part 4 of my KNDI article. But in this context, watch out for the meeting that will be held in Beijing on January 5, 2012 “2011 Global Conference of New Energy Vehicles”: http://bit.ly/snYPcT I expect some more announcements may be made by Chinese Government Representatives during this venue.
“The China Central Government has intelligently addressed the first four “bulleted” points above with their decision to develop Quick Battery Exchange (QBEX) as their preferred standard” Yes, the State Grid Corporation of China and the China Southern Power Grid are clearly moving on in this direction as is once more proven by their booth set-up and announcements during the now ongoing exhibition held in Haikou, Hainan: “China International Electric Vehicle and Charging Equipment & Storage Technology Exhibition”: http://bit.ly/rAXaHu
“You will notice in the article that the only car at the State Grid booth is the KNDI, KD5011 Lithium Battery EV. This article shows further evidence confirming what both Chang and I have been saying about KNDI’s “Golden Child” standing with China State Grid which is by far the World’s largest electric utility.” Arthur, “The State Grid’s Golden Child” is indeed the perfect term for Kandi but let’s not forget that Kandi wasn’t conceived by the State Grid…it was adopted by the SGCC because of it brilliant EV business concept and QBEx EV car design…
“Smart Grid Stabilization.” Once more, look to the denomination of the exhibition and conference that I mentioned above! No need to say more…
“A “Grid Upgrade” or Cap Ex item for the Grid which could allow the Grid to pass the purchase cost of all the batteries on to all of their electric consuming customers.” Today I have already seen some articles that were describing the awkward business position of “BetterPlace” as a technology partner for the China Southern Power Grid because the CSP intends to generate revenues from the EV charge stations functioning as “Energy Storage Units”
I like your figures…I might have been a little too conservative on the price of the KD5011XXYEV to be sold in Hangzhou. Specifically about the subsidies we might have a different interpretation or perception as to who will set up the EV leasing company in Hangzhou. I do believe that this will not be the Hangzhou Government but a private entity with the support of the Hangzhou and federal Government. According an earlier press release from Kandi the Federal subsidy for the KD5011XXYEV could amount to 60,000 Yuan per car, while Professor Quan Shi Chen already mentioned 800 million Yuan subsidies from the Hangzhou Government, which in principle would be to the benefit of the EV car leasing company when buying those Kandi EV cars, resulting in 40,000 Yuan per car... So I really wonder how this will work out!
Gulf Resources Is An Opportunity To Make A Fortune. [View article]
Islam Herzallah, I fully agree GURE is very attractive now as a buying opportunity. For those people that got spooked about the recent change in auditors, I suggest you call IR and learn for yourself what motivated them to change auditors. I did call and their answer was very acceptable to me but I am not in a position to report word for word. I also learned that Grant Sherman followed the same procedure as I did during my visit in August to determine the Bromine production capacity resulting in a “Net production capacity” pretty close to what I found out. Remember that there are two events that might be reported during the next weeks: commissioning of the new factory 4 and completion of the wells drilling at the Daying project. If I was short, I would think twice….
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 4) [View article]
Art, your observation is correct. I thought it would be better to keep the figures very conservative and assume that for such order of 20,000 EVs it's better to allow a serious discount. On the other hand it is perfectly possible that the deal for Hangzhou would command a higher price as the potential subsidies for purchase of the car would be at least 60,000 Yuan. I rather prefer to underestimate instead of overestimate the EPS.
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 3) [View article]
jl2002lj, thanks for your comments and questions. You surely have analyzed all bits of information!
1. I was initially thinking to do some kind of marking or highlighting of the potential receivers of the subsidies in the schematics, so I should have done it. Based on the existing documents from Jinhua and Hangzhou Government my perception is: In Jinhua: subsidies go to Kandi In Hangzhou: car subsidy goes to car manufacturer, battery lease subsidy to "Battery leasing and Integrated Service Co.", battery swap subsidy goes direct to charge and swap stations....customer pays net charges.
2. Even if the Hangzhou deal seems comes as giant order, the execution of the order will be spread over time and the subsidies are already pre-fixed by Hangzhou. These are subsidies that were already budgeted by H a long time ago. If temporary financing is needed by KNDI to organize production it shouldn't be a problem considering the Government backing for such deal. Further Kandi still has some funds temporarily locked up in credits to non-related companies for which it receives a decent interest. If necessary these funds might be unlocked...I presume. Anyway, Kandi's credit worthiness shouldn't be an issue here. Don't forget also that the amount of subsidy per car should largely cover the manufacturing cost in the H case!
3. In the Hangzhou model the dotted Red and Blue lines mean that besides car sales to the leasing company, some direct sales will also occur.
4. That's a hard nut to crack...I am only able to give a roughly estimated timeline as a result of what the China media reported: Hangzhou leasing program: the date you refer to (next week) was given by Professor Quan Shi Chen. So that's his estimate but he is probably not the one to put the last official stamp on the paper. A delay is possible and if there is no news before the end of December that isn't a reason to doubt about the program. I give some further comment about it in Part 4. EV standardization policy and reviewed NEV promotion / subsidy plan: my guess, before Chinese New year we should know more.
In fact, we can be quite happy with the existing Hangzhou subsidies and don't need to eagerly wait for the new NEV policy...and remember that the 4 Ministries have send out a Circular to the pilot cities to speed up their actions.
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 3) [View article]
CSIHawaii, There are no roses without thorns! Investing in the stock market has inherent risks and each of us has to figure out what risk level she/he is able and willing to take. The fact that you claim you’re very long Kandi and the level of analyses you gave tells me that you have weighed and measured all risks and decided to go long?
Your statement that I have suddenly become “the” source of information should be taken “with a little bit of salt” I hope. Yes, I have followed KNDI for a long time and early this year I had my own doubts if Mr. Hu’s strategy was sound enough but my doubts have been cleared by thanks to the achievements of Mr. Hu and my own research which I have shared here. Sharing my research with other investors doesn’t mean I am KNDI’s mouthpiece and I would suggest every reader to also review what was written about KNDI by other authors that publish in Seeking Alpha. In part 4 of the Article we’ll go a bit more in-depth to analyze KNDI as a company and compare risks versus potential, but let me answer now some of the questions that undermine YOUR confidence (≠ investor confidence).
You wrote in point1): “deliberate obfuscation in order to conceal this monumental development”
Isn’t that judgment a little over the border? I would nearly think you are short the stock... If you do a search on KNDI’s past SEC files you will repeatedly find a clear distinction was made between ATV’s and EVs but the terms EVs and Pure Energy Vehicles have been used with less distinction. For example, on page 42 of the last 10Q document you can read “The objective of the ceremony was to promote sales of our electric vehicles in Jinhua City through government financial subsidies to consumers who purchase the Kandi pure EV” but it’s clear from this paragraph that this is all about the KD5011XXYEV. And if you have any doubts about what is written there please do a Google translate of the Jinhua’s Government website: http://bit.ly/rKHFnd
You also wrote: “They could not be offended by Mr. Xiaoming Hu humbly reporting KNDI's own business activity (and excluding anything they had not disclosed). Mr. Xiaoming Hu's behavior needs more explanation.”
Again, that’s quite a harsh statement for someone who’s very long, let me explain: In the eyes of the Hangzhou / Chinese Authorities a deal is only real and valid when the last officer involved has put the last necessary official stamp on the documents. In the eyes of Chinese Authorities any monumental step or deal that gets the Government backing should be first announced by the Government. Just consider yourself plain lucky that there were a few “news leaks” that allowed us to understand what’s going on in Hangzhou. Mr. Hu’s behavior here is in line with the morals of the market where he operates his business and he can only confirm any monumental deal when the last official stamp is placed. He has gone a long way to give some info about the deal in the last 10Q page 42.
You wrote in point 2) : “KNDI's non-communication to shareholders seems to be extended to customers. KNDI's electric car is already being sold but there is no marketing on the website.”
Which EV do you mean? The KD5011XXYEV sold in Jinhua? No marketing? Have a look to this website: http://bit.ly/vAWF9e It is KNDI all over and marketing is paid by the tripartite JV. Have a look to the Jinhua Government website I mentioned above, check point 7: “Seven, promotion and publicity 1. Promotion of new energy vehicles October 10, 2011 officially launched. Ceremony hosted by the City, City Commission by letter, Condit Vehicle Co., Ltd. Zhejiang, Zotye Holding Group contractors. 2. "Jinhua Daily", "Jinhua Evening News" and Jinhua television stations announced the promotion of new energy vehicles.” What do we want more as investors? KNDI even gets free of charge publicity on the regional television…. And for the KD5011XXYEV: if the 20,000 cars are subject of a deal with a government supported leasing company…I expect that most of the marketing will rest in the hands of the leasing company and the local government..
In point 3) you wrote: " KNDI's website has 2 pictures of buildings but they have the distinct look of artists impressions or architects models. "
Why you are "Very long" than if you believe what you write? Is this good enough for you? Is Google Earth real? http://bit.ly/sfHon0
In point 4) you wrote: "KNDI's website has a picture of cars posed as if on a production line."
If you do the effort of looking back to the different videos that were shown on the regional television network you will see some recent filming inside the buildings and you will notice that the current production lines are upgraded. Kandi doesn’t need to give us the details of their automation and production lines but yes, some more pictures or videos on the website would help. By the way, several investors have pointed this out and recently they have started to upgrade their website.
Your point 5: " If KNDI's production facilities are those that..."
As written above, their facilities have been upgraded already and their production capacity would now be 100,000 EV per year according some contacts. The wording used in the Q3 report is very standard and normal but you seem to have an interest to particularly highlight these words…. In my humble opinion I don’t see any danger for a stock offering or dilution at this price level because Mr. Hu knows that the stock is incredibly cheap right now. Besides, don’t underestimate the actions of the local governments and resulting subsidies.
Your point 6: KNDI's car is a 2-seater....
Simple answer: one step per time…and rest assure Kandi’s R&D team and designers will take care of that. Of course a 2-seater will not suit everybody for all kinds of needs….but you might do some research how many Mercedes Benz Smarts are sold in Europe and the US. Here in Taiwan, there are a lot, if I remember well they sell about 40,000 Smarts per year here.
Your point 7) "swap stations show batteries that are not compatible with the KNDI patented design...."
The big green batteries that you see in those pics of the charging racks are batteries that were designed a long way ago to be used in the cars from Haima Motors and Zotye. I have reported in my article that these cars were used in the first Hangzhou experiments.... The batteries that you see in the picture of the KD5011XXYEV shown in part 3 were developed in cooperation with the SGCC and produced by “Lithium in the Air”, a subsidiary of AVIC. The modular battery boxes that you saw in the pics I posted will be adapted to also carry these batteries, according info from SGCC staff. You might soon see lots of pictures with those batteries in Chinese online car magazines… “How many car manufacturers are able to compete with KNDI?” I clearly wrote in my article that none of the Chinese car manufacturers has a MIIT approved EV model that uses the same simple battery swap technology as KNDI and if they would like to have such model there will be patent issues to overcome. KNDI has more than 60 patents….
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 3) [View article]
Alysha, good to read you here! Yes, I am convinced that more than 20,000 EV cars will be sold in Hangzhou in 2012. If you clicked on the links in my article you will have seen a comment from a Key Government person in Hangzhou that clearly points into this direction. Also, the EV charging infrastructure that has been completed in Hangzhou during the last months can already support 15,000 EV cars and is continuously being expanded. The sale of those 20,000 cars mentioned in that link is not direct to the public, it's to a leasing company and such concept is backed by the Hangzhou Government. Since August, the HG has strongly promoted the set-up of EV car leasing companies (see link in my article) and the testing of this concept has proven the demand is there. It's a lot easier to have customers deciding to lease an EV for 126 USD per month than to convince them to buy one. It's extremely affordable for a whole crowd of people and allows them to test the EV car and get a first hand experience of the EV charging facilities. At the same time for the SGCC it not only guarantees to have enough EV's on the road to get their swap and charge infrastructure fully operational, but it also results in more batteries available that can have a role as energy storage units for the Smart Grid. And, last but not least, when the Hangzhou Government promotes a small and compact EV car such as the KD5011XXYEV their subsidy budget will result in more cars sold at a very attractive price....that fits their target. The TRINITY set-up (see Hangzhou EV-Business Model Schematic) is what many Chinese EV Authorities believe in as the best solution to have a break-through of the EV in China. As for the plug-standard, it's the SGCC standard which was recently released by the SGCC, to the National Standard Committee, see http://bit.ly/vwxWfR We also shouldn't forget here that the SGCC now constructs 90% of the EV Charging Stations and their subsidiary NARI is heavily involved in charging poles. The SGCC enterprise standards are valid for SGCC EV stations all over the different provinces where the SGCC operates, and supplies >85% of the electric power consumption. The National EV plug standard will soon be known and I wouldn't worry to much about this because in the next months Kandi's main focus will be Zhejiang Province.
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Why than did you mention ABAT? Why not picking a Chinese company that brought a good investment return to its shareholders? Such as for example SINA which I bought late in 2001 at $1.3 but sold too early...in 2004...at $40 They aren't ALL risky!
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Art, in your calculation you didn't even take the subsidies into consideration! For 156 miles (250km) there would be a charging subsidy of 0.09 x 250 = 22.5 Yuan to be deducted from the charging cost!
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
f-kru, what you shouldn't overlook here is that Kandi Technologies doesn't have a VIE structure and that if Mr. Hu would like to buy this company on the cheap he legally would have to get the majority of the outside shareholders to agree with whatever deal he comes up with! Besides, KNDI's EV business will now get into acceleration and besides the 20-25,000 EV cars for Hangzhou the SGCC next targets 20,000 EV cars in Huzhou (2.57 million inhabitants) and has already prepared the charging/swapping stations on the highway to Shanghai. With such future sales in the pipeline I see no way that the company can remain undervalued as it is today... Further, as I mentioned earlier, it fits much more to Mr. Hu's mindset to have his shares traded at $50US instead of trying to steal the shares away from foreign investors.
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
I can only be online for a while today. Just let me add some info to what Art has just posted:
Specifically for battery charging and battery leasing, the following subsidies are now available: Battery charging subsidy: 0.09 Yuan /km for a period of 3 years up to a maximum mileage of 60,000 km (whichever comes first) Battery lease subsidy: 0.50 Yuan / km of standard rental fee subsidies given to the battery lease company, the maximum subsidy for a period of 3 years or a maximum mileage allowance of 60,000 km (whichever comes first). More about subsidies in Part 3
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Albreese, With what I currently have as data my guesstimate for next year is >30,000 EV’s for Zhejiang Province alone. On top of that you may have some sales to other provinces and export. Part 4 of my article has a section that is specifically about Kandi. The photos of the other vehicles are there for the simple reason that it’s good for everyone to see what’s available now as EV cars with a battery swap facility, and how it compares to a Kandi car, especially designed with the purpose of easy battery swap. The photo of the black Haima was there as a proof of that CNOOC, through its Lishen Battery JV Company is now cooperating with the SGCC and produces standard batteries that comply with the SGCC’s standards.
Wall Street Match Up: Kandi Technologies Vs. Tesla Motors [View article]
I also found an article with more pictures that seem to prove her statement! Please check: http://bit.ly/vkwXnf
Wall Street Match Up: Kandi Technologies Vs. Tesla Motors [View article]
Great article and let me congratulate you on your synopsis!
There are a couple of points that I like to comment on:
“Nowhere in the World other than China will you find this strong Government conviction toward EVs”
Yes, absolutely correct, I have documented the Government’s support and policy actions in Part 4 of my KNDI article. But in this context, watch out for the meeting that will be held in Beijing on January 5, 2012 “2011 Global Conference of New Energy Vehicles”: http://bit.ly/snYPcT
I expect some more announcements may be made by Chinese Government Representatives during this venue.
“The China Central Government has intelligently addressed the first four “bulleted” points above with their decision to develop Quick Battery Exchange (QBEX) as their preferred standard”
Yes, the State Grid Corporation of China and the China Southern Power Grid are clearly moving on in this direction as is once more proven by their booth set-up and announcements during the now ongoing exhibition held in Haikou, Hainan: “China International Electric Vehicle and Charging Equipment & Storage Technology Exhibition”: http://bit.ly/rAXaHu
“You will notice in the article that the only car at the State Grid booth is the KNDI, KD5011 Lithium Battery EV. This article shows further evidence confirming what both Chang and I have been saying about KNDI’s “Golden Child” standing with China State Grid which is by far the World’s largest electric utility.”
Arthur, “The State Grid’s Golden Child” is indeed the perfect term for Kandi but let’s not forget that Kandi wasn’t conceived by the State Grid…it was adopted by the SGCC because of it brilliant EV business concept and QBEx EV car design…
“Smart Grid Stabilization.”
Once more, look to the denomination of the exhibition and conference that I mentioned above! No need to say more…
“A “Grid Upgrade” or Cap Ex item for the Grid which could allow the Grid to pass the purchase cost of all the batteries on to all of their electric consuming customers.”
Today I have already seen some articles that were describing the awkward business position of “BetterPlace” as a technology partner for the China Southern Power Grid because the CSP intends to generate revenues from the EV charge stations functioning as “Energy Storage Units”
I like your figures…I might have been a little too conservative on the price of the KD5011XXYEV to be sold in Hangzhou.
Specifically about the subsidies we might have a different interpretation or perception as to who will set up the EV leasing company in Hangzhou. I do believe that this will not be the Hangzhou Government but a private entity with the support of the Hangzhou and federal Government.
According an earlier press release from Kandi the Federal subsidy for the KD5011XXYEV could amount to 60,000 Yuan per car, while Professor Quan Shi Chen already mentioned 800 million Yuan subsidies from the Hangzhou Government, which in principle would be to the benefit of the EV car leasing company when buying those Kandi EV cars, resulting in 40,000 Yuan per car...
So I really wonder how this will work out!
Gulf Resources Is An Opportunity To Make A Fortune. [View article]
Gulf Resources Is An Opportunity To Make A Fortune. [View article]
http://bit.ly/vP9V7I
Gulf Resources Is An Opportunity To Make A Fortune. [View article]
I fully agree GURE is very attractive now as a buying opportunity.
For those people that got spooked about the recent change in auditors, I suggest you call IR and learn for yourself what motivated them to change auditors.
I did call and their answer was very acceptable to me but I am not in a position to report word for word.
I also learned that Grant Sherman followed the same procedure as I did during my visit in August to determine the Bromine production capacity resulting in a “Net production capacity” pretty close to what I found out.
Remember that there are two events that might be reported during the next weeks: commissioning of the new factory 4 and completion of the wells drilling at the Daying project.
If I was short, I would think twice….
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 4) [View article]
On the other hand it is perfectly possible that the deal for Hangzhou would command a higher price as the potential subsidies for purchase of the car would be at least 60,000 Yuan.
I rather prefer to underestimate instead of overestimate the EPS.
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 3) [View article]
1. I was initially thinking to do some kind of marking or highlighting of the potential receivers of the subsidies in the schematics, so I should have done it. Based on the existing documents from Jinhua and Hangzhou Government my perception is:
In Jinhua: subsidies go to Kandi
In Hangzhou: car subsidy goes to car manufacturer, battery lease subsidy to "Battery leasing and Integrated Service Co.", battery swap subsidy goes direct to charge and swap stations....customer pays net charges.
2. Even if the Hangzhou deal seems comes as giant order, the execution of the order will be spread over time and the subsidies are already pre-fixed by Hangzhou. These are subsidies that were already budgeted by H a long time ago. If temporary financing is needed by KNDI to organize production it shouldn't be a problem considering the Government backing for such deal. Further Kandi still has some funds temporarily locked up in credits to non-related companies for which it receives a decent interest. If necessary these funds might be unlocked...I presume.
Anyway, Kandi's credit worthiness shouldn't be an issue here.
Don't forget also that the amount of subsidy per car should largely cover the manufacturing cost in the H case!
3. In the Hangzhou model the dotted Red and Blue lines mean that besides car sales to the leasing company, some direct sales will also occur.
4. That's a hard nut to crack...I am only able to give a roughly estimated timeline as a result of what the China media reported:
Hangzhou leasing program: the date you refer to (next week) was given by Professor Quan Shi Chen. So that's his estimate but he is probably not the one to put the last official stamp on the paper. A delay is possible and if there is no news before the end of December that isn't a reason to doubt about the program. I give some further comment about it in Part 4.
EV standardization policy and reviewed NEV promotion / subsidy plan: my guess, before Chinese New year we should know more.
In fact, we can be quite happy with the existing Hangzhou subsidies and don't need to eagerly wait for the new NEV policy...and remember that the 4 Ministries have send out a Circular to the pilot cities to speed up their actions.
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 3) [View article]
There are no roses without thorns!
Investing in the stock market has inherent risks and each of us has to figure out what risk level she/he is able and willing to take. The fact that you claim you’re very long Kandi and the level of analyses you gave tells me that you have weighed and measured all risks and decided to go long?
Your statement that I have suddenly become “the” source of information should be taken “with a little bit of salt” I hope. Yes, I have followed KNDI for a long time and early this year I had my own doubts if Mr. Hu’s strategy was sound enough but my doubts have been cleared by thanks to the achievements of Mr. Hu and my own research which I have shared here.
Sharing my research with other investors doesn’t mean I am KNDI’s mouthpiece and I would suggest every reader to also review what was written about KNDI by other authors that publish in Seeking Alpha.
In part 4 of the Article we’ll go a bit more in-depth to analyze KNDI as a company and compare risks versus potential, but let me answer now some of the questions that undermine YOUR confidence (≠ investor confidence).
You wrote in point1): “deliberate obfuscation in order to conceal this monumental development”
Isn’t that judgment a little over the border? I would nearly think you are short the stock... If you do a search on KNDI’s past SEC files you will repeatedly find a clear distinction was made between ATV’s and EVs but the terms EVs and Pure Energy Vehicles have been used with less distinction. For example, on page 42 of the last 10Q document you can read
“The objective of the ceremony was to promote sales of our electric vehicles in Jinhua City through government financial subsidies to consumers who purchase the Kandi pure EV” but it’s clear from this paragraph that this is all about the KD5011XXYEV. And if you have any doubts about what is written there please do a Google translate of the Jinhua’s Government website: http://bit.ly/rKHFnd
You also wrote: “They could not be offended by Mr. Xiaoming Hu humbly reporting KNDI's own business activity (and excluding anything they had not disclosed). Mr. Xiaoming Hu's behavior needs more explanation.”
Again, that’s quite a harsh statement for someone who’s very long, let me explain:
In the eyes of the Hangzhou / Chinese Authorities a deal is only real and valid when the last officer involved has put the last necessary official stamp on the documents. In the eyes of Chinese Authorities any monumental step or deal that gets the Government backing should be first announced by the Government.
Just consider yourself plain lucky that there were a few “news leaks” that allowed us to understand what’s going on in Hangzhou.
Mr. Hu’s behavior here is in line with the morals of the market where he operates his business and he can only confirm any monumental deal when the last official stamp is placed. He has gone a long way to give some info about the deal in the last 10Q page 42.
You wrote in point 2) : “KNDI's non-communication to shareholders seems to be extended to customers. KNDI's electric car is already being sold but there is no marketing on the website.”
Which EV do you mean?
The KD5011XXYEV sold in Jinhua?
No marketing?
Have a look to this website: http://bit.ly/vAWF9e
It is KNDI all over and marketing is paid by the tripartite JV.
Have a look to the Jinhua Government website I mentioned above, check point 7:
“Seven, promotion and publicity
1. Promotion of new energy vehicles October 10, 2011 officially launched. Ceremony hosted by the City, City Commission by letter, Condit Vehicle Co., Ltd. Zhejiang, Zotye Holding Group contractors.
2. "Jinhua Daily", "Jinhua Evening News" and Jinhua television stations announced the promotion of new energy vehicles.”
What do we want more as investors? KNDI even gets free of charge publicity on the regional television….
And for the KD5011XXYEV: if the 20,000 cars are subject of a deal with a government supported leasing company…I expect that most of the marketing will rest in the hands of the leasing company and the local government..
In point 3) you wrote: " KNDI's website has 2 pictures of buildings but they have the distinct look of artists impressions or architects models. "
Why you are "Very long" than if you believe what you write?
Is this good enough for you? Is Google Earth real?
http://bit.ly/sfHon0
In point 4) you wrote: "KNDI's website has a picture of cars posed as if on a production line."
If you do the effort of looking back to the different videos that were shown on the regional television network you will see some recent filming inside the buildings and you will notice that the current production lines are upgraded.
Kandi doesn’t need to give us the details of their automation and production lines but yes, some more pictures or videos on the website would help.
By the way, several investors have pointed this out and recently they have started to upgrade their website.
Your point 5: " If KNDI's production facilities are those that..."
As written above, their facilities have been upgraded already and their production capacity would now be 100,000 EV per year according some contacts.
The wording used in the Q3 report is very standard and normal but you seem to have an interest to particularly highlight these words….
In my humble opinion I don’t see any danger for a stock offering or dilution at this price level because Mr. Hu knows that the stock is incredibly cheap right now. Besides, don’t underestimate the actions of the local governments and resulting subsidies.
Your point 6: KNDI's car is a 2-seater....
Simple answer: one step per time…and rest assure Kandi’s R&D team and designers will take care of that. Of course a 2-seater will not suit everybody for all kinds of needs….but you might do some research how many Mercedes Benz Smarts are sold in Europe and the US. Here in Taiwan, there are a lot, if I remember well they sell about 40,000 Smarts per year here.
Your point 7) "swap stations show batteries that are not compatible with the KNDI patented design...."
The big green batteries that you see in those pics of the charging racks are batteries that were designed a long way ago to be used in the cars from Haima Motors and Zotye. I have reported in my article that these cars were used in the first Hangzhou experiments....
The batteries that you see in the picture of the KD5011XXYEV shown in part 3 were developed in cooperation with the SGCC and produced by “Lithium in the Air”, a subsidiary of AVIC. The modular battery boxes that you saw in the pics I posted will be adapted to also carry these batteries, according info from SGCC staff.
You might soon see lots of pictures with those batteries in Chinese online car magazines…
“How many car manufacturers are able to compete with KNDI?”
I clearly wrote in my article that none of the Chinese car manufacturers has a MIIT approved EV model that uses the same simple battery swap technology as KNDI and if they would like to have such model there will be patent issues to overcome.
KNDI has more than 60 patents….
Kandi Technologies: Right Time, Right Place, Right Disruptive Technology, Right Now (Part 3) [View article]
Yes, I am convinced that more than 20,000 EV cars will be sold in Hangzhou in 2012. If you clicked on the links in my article you will have seen a comment from a Key Government person in Hangzhou that clearly points into this direction.
Also, the EV charging infrastructure that has been completed in Hangzhou during the last months can already support 15,000 EV cars and is continuously being expanded.
The sale of those 20,000 cars mentioned in that link is not direct to the public, it's to a leasing company and such concept is backed by the Hangzhou Government.
Since August, the HG has strongly promoted the set-up of EV car leasing companies (see link in my article) and the testing of this concept has proven the demand is there.
It's a lot easier to have customers deciding to lease an EV for 126 USD per month than to convince them to buy one. It's extremely affordable for a whole crowd of people and allows them to test the EV car and get a first hand experience of the EV charging facilities.
At the same time for the SGCC it not only guarantees to have enough EV's on the road to get their swap and charge infrastructure fully operational, but it also results in more batteries available that can have a role as energy storage units for the Smart Grid.
And, last but not least, when the Hangzhou Government promotes a small and compact EV car such as the KD5011XXYEV their subsidy budget will result in more cars sold at a very attractive price....that fits their target.
The TRINITY set-up (see Hangzhou EV-Business Model Schematic) is what many Chinese EV Authorities believe in as the best solution to have a break-through of the EV in China.
As for the plug-standard, it's the SGCC standard which was recently released by the SGCC, to the National Standard Committee, see http://bit.ly/vwxWfR
We also shouldn't forget here that the SGCC now constructs 90% of the EV Charging Stations and their subsidiary NARI is heavily involved in charging poles. The SGCC enterprise standards are valid for SGCC EV stations all over the different provinces where the SGCC operates, and supplies >85% of the electric power consumption.
The National EV plug standard will soon be known and I wouldn't worry to much about this because in the next months Kandi's main focus will be Zhejiang Province.
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Such as for example SINA which I bought late in 2001 at $1.3 but sold too early...in 2004...at $40
They aren't ALL risky!
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Besides, KNDI's EV business will now get into acceleration and besides the 20-25,000 EV cars for Hangzhou the SGCC next targets 20,000 EV cars in Huzhou (2.57 million inhabitants) and has already prepared the charging/swapping stations on the highway to Shanghai. With such future sales in the pipeline I see no way that the company can remain undervalued as it is today...
Further, as I mentioned earlier, it fits much more to Mr. Hu's mindset to have his shares traded at $50US instead of trying to steal the shares away from foreign investors.
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
Just let me add some info to what Art has just posted:
Specifically for battery charging and battery leasing, the following subsidies are now available:
Battery charging subsidy: 0.09 Yuan /km for a period of 3 years up to a maximum mileage of 60,000 km (whichever comes first)
Battery lease subsidy: 0.50 Yuan / km of standard rental fee subsidies given to the battery lease company, the maximum subsidy for a period of 3 years or a maximum mileage allowance of 60,000 km (whichever comes first).
More about subsidies in Part 3
Kandi Technologies: Right Place, Right Time, Right Disruptive Technology, Right Now (Part 2 of 4) [View article]
With what I currently have as data my guesstimate for next year is >30,000 EV’s for Zhejiang Province alone. On top of that you may have some sales to other provinces and export.
Part 4 of my article has a section that is specifically about Kandi.
The photos of the other vehicles are there for the simple reason that it’s good for everyone to see what’s available now as EV cars with a battery swap facility, and how it compares to a Kandi car, especially designed with the purpose of easy battery swap.
The photo of the black Haima was there as a proof of that CNOOC, through its Lishen Battery JV Company is now cooperating with the SGCC and produces standard batteries that comply with the SGCC’s standards.