We have been also affected. The thing is important change is that we are increasingly working as an integrated company. As you know, we have the minority. So this led to a creation of an autonomous organization historically, which now has been more and more integrated in the way we’re working and the way we operate retail brand and merchandising choices. So we feel good about the direction that with our partner, we’re giving to the business. And hopefully, that will be also translating in a positive outcome from that geography that is still witnessing a very, very, very conservative consumer after the pandemic.
Dave Kanen: Okay. On that topic, I’m cheating a little bit, I guess I’m asking more questions, but this was on my list, cash in China. How much is in the JV right now? And what is our flexibility or optionality in accessing some of that cash?
Carlo Silvestri: So on the cash, I need to refer to Piero, if technically, I know the figure, but I want to be sure that technically, we can refer to it before the 20F. I suspect we cannot disclose it now, right?
Piero Direnzo: You’re right, you’re right. You cannot disclose also because they are a listed company, so we cannot disclose.
Carlo Silvestri: So I cannot disclose the figure. They have been since the beginning of the year, increasing the cash. Of course, is below what we report in previous year because as I mentioned that a few times, the balance between liquidity and fixed asset has been moving more in direction of fixed assets because they invested in inventory as, which we are now managing, but the group has been accruing cash. And again, unfortunately, I cannot give you the figure because of respect of our, let’s say, they are also both partners being listed. The other question — the other aspect is easier to answer. So the distribution of cash or dividend can happen in a form of capital reduction or dividend, both need to be authorized by the anonymity of the Board members, which are five, three being timing appointed by the majority shareholder Kuka and two being appointed by Natuzzi and being our Executive Chairman, Mr. Pasquale Natuzzi and myself.
So both the cash — so both options to, say, reduce cash, which is capital reduction and dividend need to be approved by an anonymity by the Board of the JV.
Dave Kanen: Okay. And then a quick strategic question, and maybe this falls into Jason’s domain, but I would like to get your thoughts on this, Antonio. When I visit your stores, it seems like you’re very focused on the living room, that particular space within the home. And when I go to competitors, I see that they have a broader appeal of the dining room, the bedroom as well as the living room. And so I guess the silver lining is this probably is a large opportunity for you. Could you talk in terms of the focus there? I know you’re focused on building out the North American footprint, but are you also focused — do you have your team focused on building and designing high-quality desirable Natuzzi product that goes into these other rooms, so that longer term, our average unit volumes could be double or even triple where we are now? Thanks.
Antonio Achille: No, David, you are really spot on. And I believe the answer here needs to be specific for Natuzzi Italia and Natuzzi Editions. On Natuzzi Italia, we’re really growing the of having a lifestyle presentation in the store with a total living. As you, of course know, the heritage and the strength of Natuzzi is in the living room in the poster where Mr. Pasquale Natuzzi is saying it, but it’s the market saying that has been a genius, inventing a new category of product, which combines harmony and emotion. And we want to preserve that. But as you mentioned, as we’re entering in retail, we want this retail to occupy different rooms. So we are working definitely on the bedroom, where, again, technically it is somehow closer to the opposite, especially for the poster at bedroom because technically, they are not far away, material.
And in fact, some of that production up in our factory. So the bedroom is another room we want to occupy. Another room we want to occupy is the dining room where instead of course, materials and technology and technicalities of production are different. And in fact, we design internally everything, but we do a strategic partnership for the production. And increasingly, we want also to have, let’s say, legitimacies and accessories, lighting, really because of two needs. One is to present in the store a full immersive experience of the brand and to experience that the retail needs to be experiential. And so you need to have a full enough of accessory and format. The second is to increase the average order ticket. And in fact, that is directional in most geographies.
I must admit and be transparent that we see — we do still see a significant opportunity in improving our furnishing because it’s a recent, let’s say, direction. So we are still working to improve the furnishing offering for Natuzzi Italia. This is a clear part of the short-term objective to fully leverage our strengths of the brand and to fully leverage the investment that we will retain.
Dave Kanen: Okay guys. Thank you. My apologies to anyone that’s waiting in queue for monopolizing the call. But thank you guys. If I have anything to follow up with, I’ll just pose another question. Thank you.
Antonio Achille: Thank you, Dave.
Operator: [Operator Instructions] We do have a question from Steve Emerson from Emerson Investment Group. Your line is now live.
Steve Emerson: Thank you for taking — hold on, let me hit video. Can you hear me?
Antonio Achille: We hear you perfectly. We don’t see you, but we hear you perfectly.
Steve Emerson: Antonio, thank you very much. I met with you at the LD Micro conference last year.
Antonio Achille: I do remember, Steve, nice to see you again.
