Ryan Pape: Well, I think I think it is in the sense that we have this sell-in versus sell-through dynamic that we’ve talked about sort of ad nauseam on, but our goal is to we eliminate that this year and to then have the ability to recognize our revenue in China as it as it occurs. And that’s part of what we’re trying to accomplish there. And part of what we’re trying to on to change to actually enable us to see even more growth in China. And that could take a number of forms in terms of what we do, a vendor-managed inventory type process or others. And so all of that is a part of what we’re working on in China when you’ve got the bulk of the product for on China coming from the U.S., you’ve always got lots of material in transit.
You’ve got lots of inventory held at different points. And so that creates this lumpiness until you can actually sell through it. And that’s what we’re that’s what we’re going to change. So our quarter to quarter, our sales into China really have almost no our relationship to actually what’s happening on the.
Unidentified Analyst: Okay. Yes, makes sense. And an interesting commentary on the on the colored film Can you kind of explain what sparked that move because you guys have been cautious in the past. Just curious why why and why the change?
Ryan Pape: Well, I think you you’re at a you’re at an inflection point here to say does the application of colored films now fit more in with our business model on if you can use a technology and installation profile that more of our customers are familiar with the incumbent products, the non sort of TPU based products are fundamentally different in there, our physical characteristics, if you will. And so that that leap from a technician or an installer standpoint is a further leap because it’s not the same to install. But as you see the movement and the momentum around using a TPU based colored film that brings it. I’m more into the realms of our current customer base and the labor that we’ve trained and the labor that exists in the market so it creates an opportunity for that.
The products itself, if you’re using TPU. as a substrate, they have the possibility of being more durable, the possibility of better optical properties and a better appearance. So that’s attractive. But I think at the same time where we’re being candid about it is that I don’t know at a consumer level that it fundamentally changes the number of people that want to change the color of their car. And that’s still something that is a bespoke option and not inexpensive. And so it probably appeals to have a fairly narrow fairly narrow portion of the buyer. But as you’re looking at other programs around accessories, operation and customization at the dealership level or the OEM level there will be more opportunity from that. So the time is right to further advance that.
And I think from a product line standpoint, you have to you have to be mindful around things like colors, maintaining many colors requires a lot of inventory and colors come in and out a style, particularly in the aftermarket. So that’s probably part of our conservatism and approach on that historically. But I think it said you’re going to see you’re going to see some reordering of the industry in the aftermarket relative to colored stones over time. Just by virtue of this bifurcation and the technology that’s used. And I think ultimately, that can play to our strengths. So that’s why expanding that sort of beyond black is something that’s worth doing.
Operator: Thank you very much. We will now be handing back over to management for any.
Ryan Pape: Yes, I want to thank everybody for joining us on the call today, and thank our team for working, really hard it set the business up for success and look forward to speaking with everyone again, thank you very much.
Operator: This does conclude today’s conference. You may disconnect your phone lines at this time.
