Peter Cyrus, Private Investor
Okay. Are you starting to see brands going away? I mean, what’s happening with consolidation? I mean, obviously you have less stores, everybody seems – stores what is their – are brands disappearing?
Chee Jiong Ng, Xiniya’s Chief Financial Officer
Based on his observation and knowledge, he noticed a few brands has gone out of market with the closing to the year end and next year is coming, he expects to see more of this brand to get – being to go in the market.
Peter Cyrus, Private Investor
And last question and then I will get back in the queue, when do you expect to see this sort of clearance process and you start returning to profitability?
Chee Jiong Ng, Xiniya’s Chief Financial Officer
The consolidation process you have to see in two perspectives. First off, brands without the financial strength, they will be naturally being retired by the market. For those brands with financial strength, they cannot execute the new compressed business models, for example, Xiniya would be one of them. So, we expect to see after 2015, you will see better profitability from there.
Peter Cyrus, Private Investor
Okay, thank you. I will get back in the queue.
Operator
Thank you for your question, Peter. Ladies and gentlemen, should you wish to ask a question, please press 0 followed by 1 on your touch type phone now. Once again, I would like to encourage any new participants who would like to ask their question to press 0 followed by 1 on your touch type phone to join the question queue. We have another question from Peter’s line. Please proceed, Peter.
Peter Cyrus, Private Investor
Okay. Since nobody else is asking, I will ask. So, one other thing you are using cash for is to buyback inventory, but you still have the gigantic amount of cash. So, can we talk about other things that you are going to do with all this money?
Chee Jiong Ng, Xiniya’s Chief Financial Officer
Okay. The total repurchase of the inventory that is the – to help our distributors to improve their confidence towards our brand. As the financial strength – very strong financial strength at Xiniya, we have initiated a 5-year plan to convert from wholesale business models to the retail business models. This has been mentioned during the last quarter’s call, which includes purchasing the high traffic volumes retail stores at the – to purchase to also to do a major acquisition to acquire other brands to improve our logistics initiatives, which include buying a land to build a plant and a logistics center. So, all these initiatives have been in progress. We are taking steps to materialize this initiative. As the very first step will be to stabilize the retail channels, which what we have done is to do the inventory buyback.
Peter Cyrus, Private Investor
Okay. So, just so I understand, your strategy is to buyback, clean out the bad inventory from the channel, stabilize your channel, then start to open your own company-owned stores, get more brands and improve logistics. Am I understanding that correctly?
Chee Jiong Ng, Xiniya’s Chief Financial Officer
Perfect.
Peter Cyrus, Private Investor
Thanks. Thank you very much.
Chee Jiong Ng, Xiniya’s Chief Financial Officer
Your understanding is correct.
Peter Cyrus, Private Investor
Okay, great. Thank you.
Operator
Thank you, Peter. Again, ladies and gentlemen, should you wish to ask your question, please press 0 followed by 1 on your touch type phone now. I’d like to advise the speakers at this stage, we have no further questions.
Christian Arnell, Christensen
All right. Well, thank you very much for joining China Xiniya Fashion Ltd (ADR (NYSE:XNY)’s third quarter 2014 earnings conference call. If you ever happened to be in China or in Xiamen, please let us know. This concludes the call. Thank you very much.
Operator
Ladies and gentlemen, thank you for your attendance today. We kindly request that you now disconnect your lines. Thank you again.
