Xiaoming Hu: Thank you for your suggestions. That’s a very good opinion. We will make corresponding adjustments after communicating with and confirming with our partners.
Walter Hill: Thank you. All right. Another part and possibly similarly replicate, update continued Kandi’s November 2022 PR where it said Kandi Technologies produces 10,000 crossover electric golf carts. You should put out each time there’s maybe another 10,000. Put out a new PR showing that they’ve passed another 10,000 units.
Xiaoming Hu: Thanks again for the suggestion. That’s a great idea. In the past two years, we have been through the strategic shift with cost uncertainties. That’s why we are relatively conservative in terms of the public release. The press release approach ongoing. We will strengthen our effort in the PR and make more promotions of our products and development.
Walter Hill: The other question I was going to ask has already been answered whether you’re going to add any new superstore outlets this year. So you all already answered that question. So that’s all of my questions.
Kewa Luo: You still want to ask how many new superstores?
Walter Hill: Yes, I just was going to find out how many — if they were going to add any superstore outlets this year and if so, how many outlets would there be?
Xiaoming Hu: So based on the foundation working with Lowe’s superstores, we have now added more cooperation with more than 10 superstores outlet with different scales. Besides, we are expanding our cooperation with the dealerships from 300 in the past to more than 1,000 in 2024.
Walter Hill: Thank you. That’s all of my questions.
Xiaoming Hu: Thank you.
Operator: Our next question comes from the line of [indiscernible] Private Investor. Please proceed with your question.
Unidentified Analyst: Yes. Good morning and good afternoon and hello. First, I have to make some comments and then my question. On the prior conference call, a question was asked from the filing about the company’s retention of a business growth and financial advisory service consultant. CFO simply responded, indeed, it is for our separate plan to our U.S. subsidiary SC Autosports to explore the possibility of being separately listed on the U.S. main board. Nothing further was discussed on the subject since it was the last question’s answer. If I understand this correctly, it appears the board of directors are considering splitting off the U.S. subsidiary, Kandi America into a separate U.S. Nasdaq company. This makes a lot of sense in the releasing of the true value of Kandi as a separate manufacturer, being able to book its sales and spin off, also being able to book its own P&L particularly since Kandi at its current price is not being given any value for all of its business entities above its cash values.
Can the CFO give us some more color as to what the Board is thinking and what is the end goal?
Xiaoming Hu: So regarding the IPO process of our U.S. subsidiary SC Autosports, the company is still considering of this matter. And as for further development, we will provide disclosure timely in accordance with the relevant regulations of the SEC.
Unidentified Analyst: Also, since Kandi China makes in house 85% to 90% of all parts that go into its own vehicles, it can double dip. So how would the revenues be booked should Kandi spin off its U.S. subsidiary?
Xiaoming Hu: So first of all, for all the intercompany transactions occurring in the company, we will not have any double dip or any recognition of the revenue or related amount. Based on the proper accounting treatment, we will eliminate all those related balances to make sure no double or duplicate reconnections of the revenue. And besides, if SC Autosports will be separately listed, it’s very likely Kandi, our group will still be the controlling shareholder of the SC Autosports and the related parties and ended such group. So we will continue to consolidate the financial statements of SC into our group consolidated financial statements. I hope that can resolve your question.
Unidentified Analyst: Yes, that solves my question. And the last question is, in the past there were also talks about the China subsidiary that produces lithium batteries and power trains to be spun off separately. Is there anything happening here? Or is this off the table?
Xiaoming Hu: So currently we are having the strategic shift of those battery recharge industry and related business. So I guess once we will have it all settled, we will go from there and discuss more upcoming development information.
Unidentified Analyst: Okay. I understand. Thank you a lot for the answers, and yes, have a nice day.
Xiaoming Hu: Thank you.
Operator: We’ve come to the end of our time allowed for questions. I’ll turn the floor back to management for any final comments.
Kewa Luo: Thank you again for joining today’s conference call. If you have any further questions, please don’t hesitate to contact our IR consultant gary@blueshirtgroup.co or you can contact us at ir@kandigroup.com. We look forward to updating you on our next earnings call. This concludes our call for today. Thank you very much. You may now all disconnect.
