Kandi Technologies Group, Inc. · NASDAQ:KNDI
Kandi Technologies — Investor Presentation (November 2010)
29 slides from Kandi Technologies's investor presentation, Nov 22, 2010
Slide 1: Investor Presentation 2010
. ull & Investor Presentation 2010 | Kandi Technologies Corporation
Slide 2: Safe Harbor Statement
@) _geit, KANDI Safe Harbor Statement Information Regarding Forward-Looking Statements: Except for historical information contained herein, the statements made in the presentation are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A
Slide 3: Kandi Technologies Inc. (NASDAQ: KNDI)
CD Kandi Technologies Inc. (NASDAQ: KNDI) Transforming from a leading China-based exporter of recreational vehicles to a world leader in Pure Electric Vehicle (Pure EV) Manufacturing Location: Jinhua, Zhejiang Province, China Founded: 2002 Listed: NASDAQ (March 2008) Kandi Technologies develops and
Slide 4: Kandi Technologies: Market Data
Kandi Technologies: Market Data Closing Price (as of 11/12/10); | Mie! #4 Yesr. teiny (ii/77ie = 44/7/40) Close $5.84 ! Market Cap:$141.9 Million 52-Week Range: $2.75 - $6.75 Common Shares Outstanding: 24.3 Million Volume. () 2049: AOL INE Float: ~12.2 Million [ | 1 LC | 90-day Avg. Daily Volume: |
Slide 5: Investment Highlights
@) _geit, KANDI Investment Highlights + China’s leading All-Terrain Recreation Vehicles (ATRV) exporter to US + Emerging leader in China’s burgeoning Electric Vehicle (EV) market — a top government priority + Kandi EV is approved for sale by Chinese government and sales have commenced in the U.S. an
Slide 6: EV Opportunity Worldwide
; @) _Gei, KANDI EV Opportunity Worldwide . + Momentum has been building around the world due to acute pollution and overdependence on oil (i.e. Better Place, Nissan, etc.) * The global market for Electric Vehicles is forecasted by Pike Research to reach 2.4 million units by the year 2015 + Some gov
Slide 7: EV Market Worldwide
. Gi, KANDI EV Market Worldwide . The global market for electric vehicles is forecasted to reach 2.4 million units by the year 2015 according to Pike Research Total Electrified Vehicle Sales, World Merkets: 2010-2015 1,500,000 4,200,000 © Global HEV Sales ~® Global PHEV $ s00.000 Sales 3 — 3 Global
Slide 8: EV Market Worldwide — Other Estimates
@) _geit, KANDI EV Market Worldwide — Other Estimates 2010: Hybrids/Plug-ins / EVs combined: Currently represent 2.2% of the world market (J.D. Power 11/1/10) Global HEV/PHEV/EV Market Projections Global xEV Volume by Region 0.00 153 Saas a aH 3 2000 5 ite 12 ie i ane 22 i = ane htdl 2020: Pure EV E
Slide 9: EV Market in China
oo @D _i KANDI EV Market in China + In China there has been a new car sales boom due to urbanization and economic growth (China is #1 in the world, sold 14 mm new cars in 2009) — There are currently only 40 car owners per 1000 people in China (compared with 800 per 1000 in the U.S.) — The country ha
Slide 10: Automobile Sales in China
Automobile Sales in China Predicted Rate of Automobile Sales Growth in China 2,000 US sales volume (2008) a Sales volume (10,000 care) 8 2006 2007 2008 2000 2010 Fig 1 Surpassing Japan to Become the World's No.2 Market Car sales in China reached 7,216,000 units in 2008, surpassing Japan to become th
Slide 11: The Enormous EV Opportunity in China
@) _geit, KANDI The Enormous EV Opportunity in China + The Chinese government announced in June 2010 that they will be subsidizing electric cars in five cities to increase their attractiveness for buyers, reducing reliance on fossil fuels and improving air quality — Each Pure Electric Vehicle will r
Slide 12: Kandi's Competitive Advantages
@)_geit!, KANDI Kandi’s Competitive Advantages + Strong Government Support - Kandi “Express Change” EV was approved for production by the Chinese government + Strong Stable Partnerships - The joint venture partners include two of China’s largest companies (in energy and battery production respective
Slide 13: Major Milestones
Major Milestones D Founded in 2002 by one of China’s leading auto designers 2007: Kandi was the leading Chinese ATRV exporter to the U.S. 50,000 vehicles manufactured Leading vehicle test center in China Numerous innovative recreational products, e.g. the three wheel motorcycle, and the UTV pick up
Slide 14: Major Milestones (cont'd)
@D _ei. KANDI Major Milestones (cont'd) 2008: + Listed in the U.S. on NASDAQ * Successful introduction of Electric Vehicle + Launch of Electric “COCO” - China’s first pure EV production line * Electric vehicle named Qualified “Plug-in” by U.S. Treasury + First EV Sales Investor Presentation 2010 | K
Slide 15: Major Milestones (cont'd): 2010
@) _geit, KANDI Major Milestones (cont'd) 2010: A Year of Historical Advances + New Strategic Alliance to produce EVs and create the “Express Change” Model City in Jinhua (January) + Local subsidies to jump start sales Kandi’s EV sales in Jinhua + Chinese Government License to manufacture EVs (April
Slide 16: Key Obstacles to Commercialization of EVs
@) _geit, KANDI Key Obstacles to Commercialization of EVs + High cost of EVs and hybrids (battery is usually the most expensive component of EVs) + Long charging time + Short driving range + Limited or no charging facilities « Battery maintenance and pollution Investor Presentation 2010 | Kandi Tech
Slide 17: Kandi's Solution
@) _geit, KANDI Kandi’s Solution Kandi’s innovative “Express Change” Business Model: Lower Price: Separate car sales and battery sales Distance: Each full battery last ~100 miles, “Express Change” service station available every 5 km Short Change time: “Express Change’ in less than 2 minutes Infrast
Slide 18: Kandi's Solution (Cont'd)
Kandi’s Solution (Cont'd) + Multi-corporation joint venture, in association with the Government: The Alliance For Chinese Electric Vehicle Development and Commercialization * Core Strategic Partners: Kandi, Tianneng Power Corporation, and China State Grid Power Corporation + Acomprehensive, multifac
Slide 19: Battery Rental and Service Company (New JV)
@) _geit, KANDI Battery Rental and Service Company (New JV) Joint Venture of Kandi, the State Grid Power Corporation and Tianneng Power International: + State Grid Power Corporation is China’s largest power supply company, covering 26 provinces, totaling over 88% of China, 1 billion population * Tia
Slide 20: The New Model KD5010 EV
The New Model KD5010 EV Ra paee, ikaw Zee - Il + Battery: Lead Acid d \ | lI j | | t “= * Charging Time: “Express Change” yas 2) ‘ + Speed: 45+mph + Range:100 miles _ « Passengers: Two Investor Presentation 2010 | Kandi Technologies Corporation 20]
Slide 21: Kandi's Manufacturing Site
Kandi’s Manufacturing Site Kandi’s 110,000 Square Meter Manufacturing Site in Jinhua Total land coverage is 400 Mu (266,640 square meters) Investor Presentation 2010 | Kandi Technologies Corporation
Slide 22: Jinhua City: The First EV Model City
Jinhua City: The First EV Model City D Strategic location: Kandi’s home base Population of nearly 5 million Located in the economically advanced Zhejiang Province Strong local government support: First 3000 cars to be sold will receive a subsidy of up to 50% provided by the city and province Investo
Slide 23: Growth Strategy
@) _Gei, KANDI Growth Strategy Build infrastructure to meet demand + Enlist local, regional, and national government support/subsidies for station construction, auto sales, etc * Alliance partners, JVs * Take advantage of typical intra-city commuting by establishing models in a single city — startin
Slide 24: Management Team
@) _geit, KANDI Management Team Hu Xiaoming — Chief Executive Officer, President and Chairman of the Board of Directors since March 2002. From October 2003 to April 2005, Mr. Hu was the Project Manager (Chief Scientist) in WX Pure Electric Vehicle Development, a state-level highest-priority technolo
Slide 25: Historical Financial Highlights
@) _geit, KANDI Historical Financial Highlights FYE 12/31 ($ million) 2007 2008 2009 Revenue $33.4 $40.5 $33.8 Gross Profit 7.2 9.6 8.2 Net Income 5.0 49 1.0 Gross Margin % 21.6% 23.7% 24.2% Note: Results for 2008 and 2009 were affected by the global economic downturn Investor Presentation 2010 | Ka
Slide 26: Current Financial Highlights
Current Financial Highlights @) _geit, KANDI 9 Months 2009 9 Months 2010 ($ million) (Unaudited) (Unaudited) Revenue $19.1 $28.6 Gross Profit 48 6.5 Net Income 0.2 (0.7) Adjusted Net Income (a) 11 3.1 Cash Flow from (6.2) #4 Operations (@) Adjusted NI (Non-GAAP) excludes convertible notes related ex
Slide 27: Balance Sheet Summary
@_i@, KANDI Balance Sheet Summary 30-Sep-10 ($ million) 2009 (Unaudited) Cash and Cash Equivalent (a) $5.9 $13.3 Current Liabilities 42.1 50.6 Current Assets 30.0 53.6 Total Assets 64.1 86.3 (a) Includes restricted cash of $5.7mm for 2009 and $9.9mm for first nine month of 2010. Investor Presentatio
Slide 28: Key Investment Highlights
@) _geit, KANDI Key Investment Highlights + China's leading ATRV exporter + Emerging leader in China’s burgeoning Electric Vehicle market (top Government priority) + EV was approved by Chinese government and sales commenced in US and China + Unique “Express Change” business model + Strong partners:
Slide 29: Contact Information
Contact Information @) _geit, KANDI Company Contact: PR Contact: Website : Cathy Cao Executive Vice President Kandi Technologies Corp. cathy@kandigroup.com cathy_kndi@yahoo.com US: (212) 551-3610 Ken Donenfeld DGI Investor Relations kdonenfeld@dgiir.com donfgroup@aol.com (212) 425-5700 http://www.ch
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