It all makes perfect sense. Kandi is unable to sell one single EV to the end user in Hangzhou, a city with a population of more than 8 million. So Hu, with a stroke of genius, sends $58 million to some unknown entity 200 miles to the north in Nanjing to purchase factory equipment to be delivered 1200 miles to the south in Wanning, a city of 65 thousand people. This factory will then produce 100,000 EV annually which will sell like hot cakes in the city of 65 thousand, and all of the Kandi shareholders will become incredibly rich.
Based on the currently available information, the Board wishes to inform the Shareholders and
potential investors that after the inclusion of unrealized foreign exchange loss arising from the
Company’s operations in Russia, the amount of the Net Profit for the year ending 31 December
2014 is expected to decrease by approximately 50%, as compared with the amount of the Net
Profit of RMB2,663.1 million for the year ended 31 December 2013.
Shareholders and potential investors are advised to exercise caution when dealing in the
shares of the Company
Nobody on this board is shorting the stock. Only Hu's friends, and they will continue to short and he will continue to sell them more shares to cover their short. Hu and his friends continue to profit at the expense of the shareholders.
The firm of Dewey Cheetum and Howe have initiated coverage of Kandi with a strong buy. They also wish to express their thanks to Bullmarket for bringing this gem to their attention.
Today Geely announced that their 99% owned subsidiary Shanghai Maple, the same company that formed the JV with Kandi, has formed a new JV for the following purpose:
The Joint Venture will be engaged in the research and production of automobile parts,
components and engines, production of electric vehicles and the provision of related after-sale
Without a doubt it is. Have you considered the fact that they may have closed the old investigation because there is enough evidence for a new and unrelated investigation?
Maybe they are hiring people to drive the cars around to give the appearance that they have customers.
The SEC decided to go after the five biggest accounting firms rather than go after EVERY one of them, but the settlement applies to Albert Wong and ALL of the other accounting firms as well. Note the SEC forced Kandi, and other Chinese companies, to put the following in their 10-K report as a prelude to what was going to happen:
The independent registered public accounting firm that issues the audit reports included in our annual reports filed with the SEC, as auditors of companies that are traded publicly in the United States and a firm registered with the Public Company Accounting Oversight Board (United States), or the “PCAOB”, is required by the laws of the United States to undergo regular inspections by the PCAOB to assess its compliance with the laws of the United States and professional standards. Because our auditors are located in the PRC, a jurisdiction where the PCAOB is currently unable to conduct inspections without the approval of the PRC authorities, our auditors are not currently inspected by the PCAOB.
Inspections of other firms that the PCAOB has conducted outside China have identified deficiencies in those firms' audit procedures and quality control procedures, which may be addressed as part of the inspection process to improve future audit quality. The inability of the PCAOB to conduct inspections in China prevents the PCAOB from regularly evaluating our auditor's statements, audits and quality control procedures. As a result, investors may be deprived of the benefits of PCAOB inspections.
The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of our auditor's quality control and audit procedures as compared to auditors outside of China that are subject to PCAOB inspections. Investors may lose confidence in our reported financial information and procedures and the quality of our financial statements.
Whatever the reason, Motley Fool is starting to look more and more like a common penny stock rag hired for a pump and dump.
The purpose of the SEC action was to force the big accounting firms to produce the working audit papers from China. The SEC has succeeded in that action so those demands will apply to ALL accounting firms. Kandi now has three options:
1. Hire one of the Big Four accounting firms to do their audit.
2. Force Albert Wong to comply with SEC requirements to produce working audit papers.
3. Be delisted from Nasdaq.
Whoops. False alarm. Despite Kandi having "sold" more than 7000 EV in the first nine months of this year, and thousands more over the last three years, neither Jack Perkowski, Tom Konrad, nor any of the private groups who went on pimp tours to Kandi can produce one single picture of a Kandi customer standing next to their vehicle.
Nowhere on the internet is there to be found one single picture of a Kandi vehicle at a service center. No quotes from a single mechanic who has serviced a Kandi vehicle. No happy stories from customers about how the Kandi EV has changed their lives.
Sales documents prepared by Deutsche Bank revealed that while Forbes is seeking price of over $400M, the 2012 EBITDA was only $15M. Forbes sold a majority of itself to Asian investor group Integrated Whale Media Investments in July of 2014.
Why would they let small retail investors into the private party? Kandi issued more than 4 million shares to private investors at $20 per share, so now they have to reprice the warrants and issue more shares so that the private investors don't lose money on the deal. That is what has been driving the stock down. A savvy investor such as yourself should know that.
Nothing says "business acumen" quite like opening a new factory when you can't find a buyer for the EV already being produced. Or adding to the JV when your JV partner will NOT be adding to the JV. However, than money needs to be placed as far as possible from the hands of the SEC before they shut the scam down.
What do you mean you can't locate shares? More that a million are traded nearly every day, and each day less than the day before. I can understand about you not being stupid enough to buy puts, that might actually make you some money. Instead of selling 17 strike call options you would be much better off selling the underlying shares, as I don't think there are many dreamers left out there interested in purchasing $17 call options. Not even for a penny each.
You're being a bit unfair to Kandi. They are also a certified battery reseller.