Xiaoming Hu: Well, for management, especially those from PRC because of the restrictions of the foreign currency disbursement. So it takes us more effort to buy the shares. But we definitely, will have such plan and proceed in the future.
Arthur Porcari: Thank you. With the stock trading $0.60 simple below cash. I can’t imagine the time being any better than right now than worrying about the future, unless you just like paying higher for it. But anyway, with all this cash we have, now it’s almost $3 a share and it’s gone up every quarter, which is amazing this year. Are you going to make an acquisition with that? You’re going to buy a manufacturing facility, maybe in the U.S. or Mexico? Or how about just doing a straight $20 million share buyback at $3 a share. Just don’t worry about Dutch auctions or anything else. Tell that, I’m just about done.
Kewa Luo: I’m sorry, can you repeat the last part? You say, if we are going to acquire any facility in U.S. and Mexico and what’s after that?
Arthur Porcari: Yes. What I was saying — no, I was just saying or maybe make an acquisition with this cash, maybe a manufacturing or maybe buy another company or do an actual tender to buy — I mean, there’s no better — there’s no more undervalued stock than your own right now. You’re treating 1/3 of book value. You’re trading like I said, $0.80 below cash in the bank. Just go out and make a $20 tender for — I’m sorry, 20 million shared tender for $3 a share. I doubt you’ll get anything wanting to meet it, but at least it will wake up the market.
Xiaoming Hu: Yes, we are striving to work on it, including we are considering the plan for any possible acquisitions or the facilities set up. And as for the share buyback, yes, we will work on it.
Arthur Porcari: That didn’t really answer my question, but let’s just [indiscernible]. You’re talking about maybe buying a facility in this hemisphere. Is that perhaps what he was just saying?
Xiaoming Hu: Yes. As you mentioned, we are really seriously considering such plan. Considering there are some other factors like from the political, the economy, we will definitely take those all into consideration. And if there are further development, we will timely disclose to the public.
Arthur Porcari: That might be a surprise. One last question over here. No, one of the — so we don’t even know who the chains are. I mean all the company has reported in press releases has been that Rural King and Peavey in Canada, we have a total of about 410 locations. Can you go down the list right now and tell us what other Walmart, Amazon just a whole list of who we’re doing business with right now?
Kewa Luo: I’m sorry, you want us to grow the list of —
Arthur Porcari: Again, you’ve only put press releases out on Peavey Mart and Rural King, a total of 410 locations. We know that you’re in Walmart. We know you’re in maybe that Marcus Lemonis’ company, Camping World, and we know you got your own Amazon site. We’ve never seen any press release. So average person looking at would think that you only got 400 locations, but you got $60 million in inventory. So what other locations do you have within the United States? Or in the area.
Xiaoming Hu: Well, I noticed that you would like to know exactly how many the retail stores we have our exposure to. It’s hard to confirm because what we can confirm is how many the companies like our company megastore company or the retail chains we’re working, we are working with over a dozen of those megastore companies and the mega chain or the retail chains in different scales. But then each company they have a number of the retail stores that — not all of them necessarily will sell our products. So I guess it’s easier for us to disclose the number of the partners we have working with instead of the retail store number to give a more accurate figures to the public. Besides, currently, we are working with over 300 dealerships in the U.S. market.
We expect to expand our exposure to over 1,000 of those channels to dealerships in 2024. We expect that the sales will be — and the volume will continue to improve this year. So that’s what we can tell you for the plan of the sales.
Arthur Porcari: Okay. That pretty much answered my question. But right now, I think I named 5, and you said you’re working with 12. So — and maybe they should explain why they don’t want to give up the names in press releases. I understand that, I’m not holding against it, but to give the shareholders a reason why don’t you put the names out?
Xiaoming Hu: Well, see, we are working with those different types of the superstores and the retail chains. And apart from the five that you have found out from the public information, the rest actually are doing the cloud sales of our products. That’s why it’s not 100% like finalized that. We are still working on the terms and the sales plan among both parties. We will disclose more information when it’s all finalized. We would like to add more color there, as you may know, just like what we have been through with Lowe’s, the sales form with Lowe’s is pretty material, but then they — we need to have their consent for the public information disclosure. But then many of those stores maybe they declined. So because they are working on their own sales plan.
So there’s just a confidential idea, and then that’s how that works in the business world. So we have to get the concern before we can give our information even though we want to. We just have to stick with the terms with both parties. We’re working on that. We try to release more information in the future and trust us, we’re working on that collaboration. And besides, even though we entered the agreement of our sales with those parties, it will take months for them to finalize and go through the legal and other department before all the information becomes public. So there will be a time lag, so I hope you understand that.
