It relates to the slowdown in overall business in China and affected to some extent auto sales in China. I would think that that would benefit the ridesharing services such as Didi and Cao Cao. If that is so, would Mr. Hu, give us his input on how it should affect Kandi's business going forward?
That's why I mentioned earlier that if we continue to produce and sell the EV models, we're going to continue to lose money. That's going to help us to gain more market share to survive in this kind of slowing down market. And we'll go to our next question from Mike Pfeffer of Oppenheimer. Sir, your line is open. Pfeffer, your line is open. Perhaps you're on mute. We're not able to hear you. If you're on mute, please depress your mute function so that we can hear you.
With no response on the line, we'll have to move to our next question. Thank you for your questions. I can tell from the numbers that you are very familiar with our financials side. Really appreciate that. Of course, our current market capital is extremely undervalued by the market. I think that's also due to the misunderstanding our battery exchange [Phonetic] in the past years and years and JV restructuring and our own performance.
That's why right now we are going through all these business refining. And we believe that once we upgrade our business to meet the new market conditions and to improve our internal operational results, we will be able to regain market recognition and the market cap will eventually return to a reasonable range. The Company's buyback shares also showing the Company's confidence in the Company's future. So for that we are very confident that we are going to achieve all these.
But however I believe the longer it last, the longer -- the more value it's going to become. And yes, that's all. Good evening, Mr. Hu, and good morning, Kewa. So I have three questions, still should be short ones. To the longtime holders of Kandi, this is exciting inflection point we have waited over -- we have waited over five years for. For the sake of new investors, could Mr. Hu please explain why [Indecipherable] only 14 EV makers, which does not even include Tesla or Nio, out of more than prospective EV makers in all of China to receive this dual award.
It's so big for Kandi. So Mr. Hu was saying that to Kandi -- Kandi has waited for five years to receive the dual production license. But for himself, he actually has waited for 30 years to receive this license. It's really, really valuable. And in terms of what kind of benefits Kandi is going to receive after having the dual production license, there are a couple things.
First, again, in the past we were accused about battery exchange and the government came up with a lot of misunderstanding on this kind of business model. And this certainly impacted Kandi JV to receive the approval for the license. That's why it has been delaying for this long time. But right now, this has finally got cleared.
Second of all, as everyone know, in the past the JV company is producing and selling -- was producing and selling EVs through Geely's license. So now once the JV has its own license, no longer need to rely on Geely's license.
And this is a big step forward. Thirdly, after the license is received, the Jiangsu -- Kandi Jiangsu is going to -- definitely going to receive a lot of support from the local government. And in fact Jiangsu's license is the first that received in Nantong. So this is definitely a big deal.
And Li Gao [Phonetic] [Indecipherable] mentioned that out of manufacturers there were only about dozens, about 14 EV makers got a license, but I have to say that those car manufacturers, most of them are traditional carmakers, but however, these -- over dozens of EV car makers they are EV makers.
So we are I think about 17 manufactures to receive this. And I believe there will be one more to be approved. After that I think there won't be no more dual production license will be granted to an EV produce -- EV manufacturer. So indeed, this is very valuable. And I really appreciate this investors closely following up and support to Kandi. And right now, we do have the money and we'll also have the license.
I think what's come next is execution. That's why I keep saying that I'm very excited that [Indecipherable] going to under Geely's leadership with their resources and technologies and their network, the Kandi's JV going to have a very good future. And for that, I'm kind of disappointed, just a joke on the side.
So and a follow-up on this question, so we longtime shareholders followed the license very closely, especially there's some value added to the Company. So we understand that many Chinese EV start-ups has formed a joint venture or bought out some old car company which has the production license. So, Mr. Hu, what kind of value you think this license alone added to the JV company? While you mentioned the transaction, and it's complicated than it seems.
But however, for us, I think it at least adds a couple-fold [Phonetic] to our current value. So another question is about, Mr. Hu mentioned on the last conference -- actually, Mr. Hu also just mentioned after we received the license and also after the JV reorganization local government will give Kandi JV a lot more support. You mentioned a number about something closer to RMB10 billion investment or some kind of cash or I don't know what kind of form from the government.
So if I heard that correctly about that number, could Mr. Hu clarify this? So what kind of support from local government after the manufacturing license? So once we have received the support, either in payment or anything else, we will update the market accordingly. Finally, a very quick question about the new car Mr. Hu mentioned in the last conference and just now. If it is, when will that be ready for sale? It's going to be a brand new car that utilize Geely's technology.
It will be much more advanced in all -- overall features. Your line is open. Thank you very much. Hu, I really do like this new format you created right now. It truly does prove to us long-term holders Kandi may have finally hit an inflection point after 10 years, and as far as [Indecipherable].
Though since my first writing, I have personally visited the company and management in Jinhua China, I do not have, nor do I care to have any access to information not available to anyone who takes the time to do good due diligence. Exceptional Company Execution. It now appears that my revenues and earnings prognostication for year end stated in my September article will apparently prove to be too high.
This in turn delayed initial sales to only the last five weeks of the year. I think you will find that most other speculations I made have not only come to pass, but in many cases were far exceeded.
This chart shows a chronology of events that have taken place since my first article. I have created a corresponding letter on the chart for each published event to the headlines below. These articles are annotated by the SA after the date. My point in listing these events is twofold; one to show there was no negative event to cause the drop in the stock price and two to give the reader quick reference to advances made.
Rapidly growing China with its 1. Source: TradingEconomics-US. The tables above compare as of China to the US in per capita motor vehicle ownership cars, trucks, buses and freight but not 2-wheelers , China on top with On this basis, stunningly, China stands in where the US stood in Thankfully China understands and has made it quite clear it intends to be the world leader in vehicle electrification.
As of this writing, there are really only three relatively pure EV US traded stocks for US investors to speculate on this rapidly emerging potential trillion dollar pure EV space. The information contained in this Item 7. ITEM 9. Pursuant to the requirements of the Securities Exchange Act of , the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Kewa Luo, Manager, Investor Relations. Michael Fearnow, Focus Tech Investments.
Li Gao, Private Investor. Arthur Porcari, Corporate Strategies Inc. Mike Pfeffer, Oppenheimer. Please go ahead. Kewa Luo:. Thank you Jenny. Hello everyone and welcome to Kandi Technologies Group Inc.
Zhu Xiaoying. Please note that the discussions today will contain forward-looking statements made under the Safe Harbor provisions of the U. Private Securities Litigation Reform Act of Forward-looking statements involve inherent risks and uncertainties. Securities and Exchange Commission. Kandi does not assume any obligation to update any forward-looking statements except as required under applicable law. As a reminder, this conference call is being recorded. Hu Xiaoming. Hu Xiaoming:. Chinese spoken.
First of all, hello everyone. Thank you for joining our second quarter earnings conference call. This model is close to be launched, and I believe it has a lot of advantages in terms of price, performance and technologies. Additionally, we have finally received the dual production licenses, and since we got that, I believe we are going to get additional support from local government.
There was a seminar hosted on July 31 that the topic is about the exchange batteries. So going forward, this is going to lay out a great foundation for our EV development, such as our collaboration with An Kao, I believe this is very good news for us. Operator, we can start to take some questions. Thank you. Michael Fearnow:. Yes, good morning. My question relates to the press about the recent slowdown in China overall and to some extent affecting auto sales. It seems in this kind of environment that the ride share, like Didi and CaoCao, would greatly benefit, so would Mr.
Hu give us his input as to how it will affect Kandi going forward? Yes, it relates to the slowdown in overall business in China and affecting to some extent auto sales in China. I would think that would benefit the ride sharing services such as Didi and CaoCao.
If that is so, would Mr. Yes, the market has been having reduced subsidy policies to support the EVs recently in this year. Well thank you, and again I appreciate the new format of the conference call.
Sir, your line is open, please go ahead. Pfeffer, your line is open. Walter Hill:. Thanks for your questions. First of all, I really appreciate how closely you follow Kandi. I can tell from the numbers that you are very familiar with our financials and I really appreciate that. Of course, our current market cap is extremely undervalued by the market. I think this is also due to the misunderstanding of our battery exchange in the past years, JV restructuring and our own performance. Li Gao:.
Good evening Mr. Hu and good morning Kewa.
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