Is Kandi and the JV going to start their own University so they can order a fleet of vehicles from themselves?
From March Sailbad says that it looks like Kandi only customers are related companies. In the 10-K and first quarter 10-Q one of their major customers is Shanghai Huapu Auto Ltd. Sailbad does a search and their address is the same as a Geely subsidiary. In the latest 10-Q, Kandi list the name of their major customer as Shanghai Maple Auto Ltd.
Maple is a Geely brand name. So Kandi sells to Geely., Geely sells to Kandi. Kandi and Geely both sell to their JV, and the JV sells to its own subsidiaries. That's quite a multiplier effect.
Look at the 10-Q and you will see $52,841,904 as "advances to suppliers". That means they have taken the money from sales of their stock to the American public and sent it to their cohorts in Wanning where it is now out of the reach of the SEC and shareholders.
If Kandi received $800K from the sale of 1000 vehicles by the JV and they received $400K from the sale of 4000 vehicles by the JV, then my guess is that they will owe the JV about $10 million if it sells 100,000 vehicles.
In the 10-Q for the period ending 31Mar14 Kandi shows revenue for the JV as being $34,860,044 and their share of the profits as being $828,412.
On July 14, 2014 Kandi issued the following press release. JINHUA, China, July 14, 2014 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. (the "Company" or "Kandi") (Nasdaq:KNDI), today announced that Kandi Electric Vehicles Group Co., Ltd. (the "JV Company"), which is a 50/50 joint venture between the Company and Shanghai Maple Guorun Automobile Co., Ltd., a 99% owned subsidiary of Geely Automobile Holdings Ltd., sold 4,114 Kandi brand Electric Vehicles ("EVs") during second quarter of 2014, a 238% increase from 1,215 EVs in the first quarter of 2014. Kandi expects to report its second quarter financial results on August 11, 2014.
Kandi filed a 10-Q today for the period ending 30Jun14 showing revenue for the JV as being $45,135,796 and their share of the profits as being $364,497.
Can anyone explain how they sold 1215 EV for $34,860,044 or $28,691 per vehicle in Q1 and 4114 EV for $45,135,796 or $10,971 per vehicle in Q2?
The filing was Friday after hours. I suspect the selling happened today to coincide with the press release. Another 1.4 million shares of dilution.
You don't seem to have a good grasp of what "paid" really means. I'm looking forward to the 10-Q and seeing what kind of accounting gymnastics they have come up with this quarter.
Until the SEC brings charges against them, it is unlikely than anyone will be able to explain their revenue. However, the short answer to you question appears to be the sale of battery packs. In their last 10-Q filed with the SEC they listed this "new business" as bringing in $25 million. They sold the battery packs to their JV, which appears to be their only customer.
Looking at their filings, you will see that the JV does not appear to be able to pay them, since over the last three quarters the amount due from JV has been $2.9M, $21.6M, and $34.5M respectively.
They reason they haven't "sold" as many battery pack to their JV this quarter might be because they haven't paid their suppliers for the last battery packs. Accounts payable for the last three quarters has been $22M, $44M and $53M
When you have revenue of $32.96M but your Accounts Payable is $53M, something is not quite right.
KNDI is no different from any other company when it comes to filing requirements. SEC rules state that they have to file the 10-Q no more than 45 days after the end of the quarter or file a "NT" saying they are unable to file on time. They are free to file anytime after the quarter has ended. It is their choice to wait the full 45 days or file earlier.
Not!!!! However, and this is to their credit, they have not mentioned anything about EV sales from their JV.
The board of directors of Geely Automobile Holdings Limited (the “Company”, together with its
subsidiaries, the “Group”) is pleased to announce that the total sales volume of the Group for the
month of July 2014 was 20,124 units, a decrease of approximately 41% over the same period last year
and down approximately 36% from June 2014. The Group’s exports volume was 4,117 units in July
2014, down around 67% from the same period last year, due to further deterioration in political
environment in the Group’s major export countries like Russia, Ukraine and the Middle East. During
the month of July 2014, the Group’s total sales volume in China market was 16,007 units, a decrease
of around 26% from the same period last year, mainly driven by the sharp drop in the sales volume of
“EC7”, ahead of the imminent launch of its upgraded version: “Xindihao” in late July 2014. On the
positive front, during the month of July 2014, the total retail sales volume of the Group’s dealers in
the China market was almost 40% higher than the wholesales volume, reflecting the continued stable
underlying demand for the Group’s products in China. The total sales volume in the first seven
months of 2014 was 207,310 units, down about 30% from the same period last year.
By declaring the S-3 registration effective at 1600 hours yesterday, Hu is well positioned to sell you some new shares when he announces massively increased sales to himself. lol.
Maybe you missed yesterdays filing with the SEC where they think they declared the SE effective, and can now sell $300 million worth of shares.
I would hate to see your definition of loose shares if you think $300 million of new shares is tight.
Let's be fair to Art, he is an equal opportunity recidivist who never limits his scams to Chinese stocks only.
Porcari and truth and two words that should never be used in the same sentence. Oops, I broke my own rule.
Here is a post from Sailbad (Moi) the day the 10-Q was released.
Round tripping again
Kandi starts new business selling EV Battery packs. lololololololololol.
1.) Kandi purchases battery packs but can't pay so Accounts Payable is a whopping $44M
2.) Kandi turns around and sells battery packs at a profit to JV, but JV can't pay so JV owes them $22M
3.) Kandi then purchases complete vehicle from JV and sells it to their rental unit for $35M
4.) Rental-a-scam can't pay either, so Kandi has $35M Note Receivable instead of cash from the sale
5.) Kandi has the audacity to show profit of $1.7M from JV sales.
Shun International Securities Research, like a lot of Kandi customers, only seems to exist for the sake of Kandi. Since Kanid is the only stock they have ever "rated" it's quite an accomplishment.
No chance that it will be tomorrow. SEC requires a lot more information before it is approved. Never looks like a better date.
If you had no qualms in the first instance about "investing" more that $15K on a company being investigated by the SEC then I suggest you double down.
Kandi purchased parts from (related party?) Zhejiang New Energy Vehicles to make 4114 kits.
Kandi sold the 4114 SKD kits to Geely.
Geely assembled the 4114 kits and sold them to the JV.
The JV in turn sold the 4114 assembled EV to their Service Company subsidiary (source of PR).
The Service Company then leased the 4114 EV to the Rental Company.
Kandi also expects to announce record revenue for the onward sale of batteries for these 4114 EV.
Kandi just doesn't understand why the SEC would call this "related party transactions" when it is just the way they do business in China.