Xiaoming Hu: So I guess the increase was based on the sales plan of partners like Lowe’s. So we will have more inventory in U.S. under our facilities like SC, just to get ready to meet the sales plan of our partners. And as we mentioned earlier, right, we have expanded our collaboration of the — over tens of those, the retail chains and then the superstore companies, plus we are expanding our channels to those dealerships. So that’s why we have to get ready and have more inventory in place to be prepared for the upcoming sales transaction and activities.
Unidentified Analyst: And then we’ve heard unofficially about Kandi distributorships for off-road sales outside of the U.S. and China, like in the UK and in the EU. Can you describe what your business plan is for utilizing distributorships for off-road sales outside of China and the U.S.? What distributorships currently exist and what’s your projected timetable for expansion of those?
Xiaoming Hu: So we are going to — those are the foreign trading companies located in China to have ourselves shipped to those areas like the UK, the EU and some other Southern Asia areas as well. And volume right now is not so large at the moment. So, yes, that’s what happened right now.
Unidentified Analyst: And can you give us any color of what’s in your backyard in China for off-road EV sales?
Xiaoming Hu: The amount is not that material. There are some distributors and some other wholesaler to get our samples for the test cells. But then the amount, as I mentioned, is not the material.
Unidentified Analyst: Okay. And then the political change — there may be a political change in the U.S. that might significantly increase tariffs on manufactured goods from China. Are you very concerned about that, somewhat concerned or not concerned at all? And might that propel you to fall through with the press release that you issued a number of years ago about possibly establishing a manufacturing facility, if not or close to the Texas facility, perhaps in Mexico?
Kewa Luo: Did you say the political will impact what?
Unidentified Analyst: Well, there’s a possible political change here in the United States. And there’s a chance that that might have a result of increasing tariffs on manufactured goods received from China. And I just wondered how concerned you guys might be and how much that might motivate you to establish a manufacturing facility either in Texas or in Mexico following up Mr. Hu’s press release that he put out a number of years ago about wanting to do something like that.
Xiaoming Hu: Yes, so we are considering those factors and thinking of the plan for the facility establishment in Northern America. We are thinking about it, and we have such thought, and we’ll disclose more information before the development.
Unidentified Analyst: All right. And then just one follow up from something that Art kept asking about, and this is sort of a crazy question, but I’ll ask it anyway. Those 540,362 shares that you repurchased using your buyback in January and February of this year, was that done in the open market, or was that part of a private transaction?
Xiaoming Hu: So yes, we are — through our broker, we do the shares buyback from the open market compliant with the SEC regulations.
Unidentified Analyst: Okay. That’s all my questions, and I will just echo what Art was trying to get across to you and it doesn’t seem to be getting through to anybody there. You guys went public back in 2007 where the stock sitting now and what you’ve been managed to accomplish is not being reflected in the share price. And from anyone’s third-party view, it doesn’t appear that, first, you’re very concerned about it, and second, that you’re doing anything about it. Blue shirt, you seem to have their hands tied behind their back. You’re not letting them loose to go out and try to generate institutional interest. All they seem to be doing is reviewing drafts of your press releases and chiming on comments on your monthly meetings, but not utilizing the resources that they have to promote companies stock.
I just don’t — most of us are just puzzled why you don’t seem to be more concerned about it and using amorphous, ambiguous, and arbitrary language, saying that you’re working on it and you know you’re concerned. It just gets old hearing it year after year. Shareholders are very frustrated.
Operator: Our next question comes from line of Walter Hill with Carty & Company. Please proceed with your question.
Walter Hill: On the last conference call, it was explained with no press releases mentioning Lowe’s superstores as the first big box Kandi retailer with 2,500 locations. This was done in deference to letting Lowe’s make the first promotion move. Subsequently the attack was taken again in August with Walmart coming aboard with 4,500 stores. Next the Amazon store. Early January, with no PR, it was discovered that all Kandi products are now in Marcus Lemonis’ Camping World stores, which is a public company. However, in November, two smaller chains Rural King with 140 stores, Peavey Mart in Canada with 270 stores were given Kandi PRs, Peavey also holds a Canadian license to Tractor Supply and ACE Hardware. So based on published information, both PR and SEC filings, if an average Kandi shareholder relies on press releases and SEC filings for stock updates, might assume that Kandi’s total outlets are less than 1,000, even when adding independent dealers.
This is despite the actual outlet count, be over 8,000 when adding in unannounced Lowe’s, Walmart and Camping World. Where this lack of knowledge becomes a problem is when looking at Kandi’s 47 million in inventory at the end of Q3, this much inventory might be a red flag if there were only reported 1,000 locations, but a very well timed smart position with 8,000 plus locations. Now my question is, if new account — If new accounts or products are added, Kandi should announce milestones without being specific, such as each time a chain is added, starting out with PR with the total number of outlets also keeping a tally on Kandi America website. If an investor needs to know specifics, all he’d have to do is search big box ecommerce sites.
