Q3 2024 Gulf Resources Inc Earnings Call
Speaker Change: Greetings, and welcome to the Gulf Resources 3rd Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
Speaker Change: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Helen Chu.
You may begin.
Hi, thank you, operator.
Speaker Change: Good morning, ladies and gentlemen, and good evening to all of those of you who join us from China. And we'd like to welcome all of you to Golf Resources.
Speaker Change: Third quarter, 2024 conference call. I'm Helen Xu, the IR director. Our CEO of the company, Mr. Shelby Liu, is also joining this call today.
Speaker Change: I'd like to remind you, to all our listeners, that in this call, certain amendment statements during the call will contain for-looking statements.
information about GoFresource's incorporation and its subsidiaries' business.
Speaker Change: and products within the meaning of RU175 under the Security Act of 1933 and RU3B-6 under the Security Exchange Act of 1934 and are subject to the safe harbor created by those rules.
Speaker Change: Actual results may differ from those discussed today, taking into account a number of risk factors, including, but not limited to.
Speaker Change: The general economic and business conditions in the PRC, the risks associated with the pandemic outbreak or future product development and production capabilities
Speaker Change: shipments to end customers market acceptance of new and existing products, additional competition from existing and new competition from the bromine and the other oil field and power production chemicals.
Speaker Change: changing technology, the ability to make future bombing assets and the various other factors beyond its control.
All forelooking statements are correctly qualified in their entirety.
Speaker Change: by this cautionary statement and the risk factors detailed in the company's report filed with the SEC.
Bye.
Speaker Change: GovResources assumes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.
Speaker Change: Accordingly, our company believes expectations reflecting the result for looking statements are reasonable, and there can be no assurance that such will prove to be correct.
Speaker Change: In addition, any reference to a company's future performance represents the management's estimate as of today, the 20th of November, 2024.
Speaker Change: For those of you unable to listen to this entire call at this time, a replay will be available at the company's website. The call is also accessible through the webcast.
Speaker Change: And the link is accessible through our website. So please locate our press release issued earlier for the details.
Speaker Change: I like to start out the call by saying that the company regrets that the change in auditors.
Speaker Change: made it difficult to file out our 2023 10-K and 2024 10-Qs in a timely manner. We also regret that we have not had a conference call since the end of the third quarter of last year.
Speaker Change: We recognize that we have to be active in communicating with investors and the hope today will be the start of a new discussion between the company and its investors.
Speaker Change: In this case, we will focus on the third quarter of 2024, but we are also willing to take questions about the first and second quarters as well as the fourth quarter of last year. I'd like to briefly cover the financial results.
Speaker Change: Then I will summarize a few issues of importance before turning the call over to Mr. Liu. And then we will be opening for the Q&A section.
Speaker Change: Since the company filed its 10Q yesterday for the third quarter of 2024,
All our financials are in the Thank You file.
Speaker Change: So, for the three months ended September 30, 2024, the revenues for the third quarter were approximately $2.2 million.
Speaker Change: a decline of 21.8% compared to the same period of last year. The net loss was approximately $3.5 million, and the basic and diluted loss was 33 per share.
Speaker Change: During the third quarter, the brownie revenues declined by 68% to approximately 1.6 million, and crude salt revenues declined by 26%.
to $654,000.
Warming operation last word.
Approximately 4.0 million.
Speaker Change: while crude salt operation loss was $102,000. The losses from operation from our currently inactive chemical and natural gas business.
were.
Approximately $339,000 and
$39,000 respectively.
Speaker Change: for the nine months and each September 30th to the 24th.
Speaker Change: The revenues were approximately 5.9 million, a decline of 74.4% compared to the same period of 2023.
Speaker Change: The losses from operations by segment were as follows. Bromine worth approximately $13.5 million, crude salt worth approximately $47, chemicals.
was $990,000 and natural gas was $140,000.
Speaker Change: The net loss was approximately $40.6 million, and the basic and diluted loss per share was $3.78.
Speaker Change: We incurred a loss of approximately $29.2 million from the disposition of equipment and purchased
approximately 60.5 million worth of new equipment.
Our cash position declined to approximately $11 million.
Speaker Change: from $72.2 million as of December 31st, 2023. The total assets at the end of the third quarter was approximately $193.9 million.
Speaker Change: There are five major issues we'd like to highlight during this call. The economics of the broadband business.
Speaker Change: the purchase of land for crude salt and bromine, and our chemical businesses.
Speaker Change: our natural gas business, and the last is the cost of our flood prevention project.
Firstly, let's look at our roaming segment.
to better understand the economics of our growing segment.
Speaker Change: I'm going to focus on the results of the third quarter from year 2022, 2023, and 2024.
So, D.O.V.E.
Speaker Change: The year 2022, the company earned approximately $10.6 million in bromine, but in year 2024 we lost $4 million. During this period, revenue declined by 92%.
Speaker Change: Much of the decline was due to the price of bromine, which dropped 68%.
Speaker Change: But, some were also due to the lower level of palm produce, which declined 75%.
During this period, our utilization dropped from 34% to 8%.
Speaker Change: One impact of the lower level of production and the decline in utilization was that the cost per ton more than doubled.
Speaker Change: from 2,773 to 5,709 because overhead, depreciation, amortization, and other costs had to be allocated over a much lower level of production.
Speaker Change: Like oil, dirt, or any other element, our company has a relatively fixed amount of bromine available for mining in our properties.
When the pandemic hit, demand for bromine, especially for
Speaker Change: Antiseptics surge. As the price of bromine declined, management decided to limit the sales and protect our mineral assets for the time. When prices rebound,
Speaker Change: When we made this decision, many recognized that the lower level of production would impact our profits.
Speaker Change: However, we believe it would have been a disservice to shareholders to sell more of our bromine at extremely low prices.
Speaker Change: Since the end of third quarter, bromine prices have increased substantially. We believe we are approaching the time when we will choose to increase production and utilization.
Speaker Change: The second issue was about the purchase of land for the coastal fields and bombing. In June, the company had an opportunity to secure additional land for coastal fields.
Speaker Change: and bromine from groups in our production area nearby. At the time, we were aware of the existing price of bromine and the impact of that price on the likely earnings we would have in this quarter.
Speaker Change: We believe this was an exceptional opportunity for us to gain control of more land for the production of crude salt and bromine in the future.
Speaker Change: Our management team conducted an analysis of all these opportunities and concluded that
Speaker Change: As acquiring its crude salt fields would enable the company to produce most crude salt and bromine.
Speaker Change: and that the cash we invested was likely to be returned in the next four to five years.
Speaker Change: We also want our shareholders to know that we are still in negotiation with sellers over the timing and the terms of a stock portion of the agreement.
Speaker Change: The company wants investors to understand that we would not have made this decision in June if we were not convinced this was an excellent short-term investment. That would not...
geoparadise, any of our other opportunities.
Third issue is about the alchemical factories.
Speaker Change: Well, the company made the decision to spend money on the cool soft.
Speaker Change: We also decided to postpone spending money on completing our chemical section.
Speaker Change: We have invested about $45 million out of a projected $69 million in building this new chemical factory.
Speaker Change: However, as we studied in the industry, we concluded that the most companies in our niches, currently some of them are losing money. Further, we continue to see interesting new opportunities in areas.
like zinc bromine and sodium iron batteries.
Speaker Change: If we were to pursue one of these opportunities, we would modify the configuration of our factory.
Speaker Change: Rather than commit capital to a business that does not produce short or intermediate term returns, we decided to wait until we had better visibility as to the best opportunities.
Speaker Change: We are still committed to our list chemical business. We are looking at many different alternatives, including potential joint ventures, and we'll move ahead with chemicals as the market improves.
Speaker Change: The third issue is about our natural gas project. The company has also refrained from investing money
more money in our natural gas segment.
Speaker Change: We have been working with local authorities and they are finalizing.
the Provincial Environmental Plan.
During this period,
The last issue is about flood prevention.
Speaker Change: Flood Prevention Project. In year 2023, the company spent slightly more than $50 million on flood prevention because the work was conducted in neighboring rivers that were not part of our property.
These investments were expensed instead of capitalized.
Speaker Change: This expenditure impacted both our earnings and balance sheet. However, we believe it will benefit us in the future. In the past six years, the company spent about $47 million in floor repairs.
after the two typhoons, as we have previously reported.
Speaker Change: Not only did the flood damage our facility, they also impacted our ability to produce from some of our wells.
Speaker Change: With this flood prevention project completed, we believe this may help the company to obtain approval to open our bombing factories No. 2 and No. 10.
Speaker Change: So now let me turn the call over to Mr. Liu for some comments.
Bye-bye.
Mr. Liu: As Helen said in the phone call, we are very happy that our file is the latest and we look forward to communicating with our users again.
Speaker Change: China's economy has been in a slump, but we have seen the signs of recovery. When we saw the softening, we postponed the final delivery of the epidemic chemical equipment. Because we can't see a short-term profit path, we are continuing to explore the new and old.
Speaker Change: This may provide a more attractive return, and we are considering potential partners in these areas. When we consider all kinds of potential partners in these areas,
Bye.
Speaker Change: We also stopped investing in natural gas when we had the chance to do so. The reason why we invested in acquiring new raw materials is that
我们相信这项投资在未来几年
Speaker Change: We hope you understand that we are making the most beneficial decisions in line with the share market.
Speaker Change: If China's economy improves, we are now fully prepared. We believe that China's economy will improve.
Speaker Change: We believe that these trends will continue, and we thank the shareholders for their patience and look forward to seeing them in the future.
Bye!
need to communicate based on that.
So, I need to look at that.
Speaker Change: As in the beginning of this call, we are very pleased to have our filings, which is up-to-date and looking forward to renew.
communication with our investors.
The economy of China has been difficult.
Speaker Change: but we see signs that it is beginning to recover. When we saw the weakness, we postponed the final delivery of equipment for our chemical business.
Speaker Change: Because we did not see a short-term path to profitability, we are continuing to explore opportunities for Zinc and Bromine and Sodium-Iron batteries.
Speaker Change: that could potentially offer much more attractive returns and are considering potential partners in this field.
Speaker Change: We also stopped spending money on natural gas while we considered various joint venture opportunities and strategies.
We need our investment in acquiring land.
Thank you for your time. Thank you.
Speaker Change: Because we believe this investment would produce more strong returns in the coming years, we want our investors to understand that the companies are making decisions that are in the best interest for its shareholders.
Speaker Change: The company also believes that FLIR pre-venture project will enable it to produce more bromine at Crosort and allow the company to open its RAS II closed factories.
Speaker Change: The company is now well-positioned to capitalize if the Chinese economy improves, as the company believes it will since the end of the last quarter. Farming prices have increased substantially.
Speaker Change: We believe that this change will continue and we appreciate the patience of our shareholders and look forward to more active communication in the future.
Speaker Change: So Hi Tom operator can we open for the QA section?
Thank you.
Speaker Change: Absolutely. Ladies and gentlemen, the floor is now open for questions.
Speaker Change: If you would like to ask a question at this time, please press star 1 on your telephone keypad to join the queue.
Speaker Change: You will hear a brief tone to indicate you have successfully joined the queue. We do ask, if listening on speakerphone this morning, that you pick up your handset while asking your question to provide optimal sound quality.
Speaker Change: Once again, please press star 1 on your telephone keypad at this time if you wish to join the queue to ask a question.
Please hold a moment while we poll for questions.
And the first question this morning is coming from
Thank you very much.
QMing, your line is live. Please go ahead.
Bye.
Speaker Change: Hi, good morning. I have been an investor for more than 10 years. And then I still remember a few years ago that when you did the quarterly report
Seeing nice things and seeing confidence, stay with us.
And then in the report you just stated,
Speaker Change: That you spend millions of dollars in the new field while your revenue
and the profit is substantially going downhill.
Speaker Change: And then I would like to say, I would like to hear
Speaker Change: that how you, what is the reasoning and the color on investing millions of dollars while the revenue and profit is substantially going downhill. And you said that
Speaker Change: that investment is going to be returned back to profit or
Speaker Change: whatever, but you hope within four or five years. I'd like you to kind of share some light on that. What is the reasoning, you know, behind that so that we would have a better understanding?
Speaker Change: Instead of keep saying that we're very hopeful, please stay with us and like what you said two years ago, but nothing has changed.
That's my question.
Speaker Change: Oh, hi, Kuni. Can you just be more specific about your question? Based on my understanding that you are talking about the cold shots.
Speaker Change: acquisition, am I right? You want to get a more clear explanation why the company expects it will have a good return in coming four to five years? This is your question?
Speaker Change: Yeah, you keep investing, including whatever, Typhoon reinforcing facility to spend millions of dollars. You said that it's a better prevention.
Speaker Change: I mean, while the revenue is going downhill, as a businessman, I would not do anything until I see the...
Speaker Change: If the uptrend in the market and the demand is going up, that's when I'm going to invest. But you do that while the revenue is still down, there's no hope of the revenue going up.
Speaker Change: And then you say that we do everything we can to, for the benefit of the investors.
I'm working in China in July.
of 2024 this year.
During business hour, I keep calling the number on record.
About 20 times, no one answered the phone.
Speaker Change: Is this the sign that you do everything for the benefit of the investor? There is not even a person answering the phone.
Speaker Change: thought the business is dead. There is no way for me to sell my share because I have a substantial loss on my investor.
on my investment.
Speaker Change: So I'm very upset about this thing, you know. I keep calling the number on record. No one answers the phone. Can you answer this question as well? Thank you.
Okay, thank you.
Speaker Change: I think our company has spent a lot of money on our anti-pandemic projects, including our annual revenue.
Speaker Change: But what he saw was that the company spent a lot of money, but the company's net profit was falling. He hopes that the company can explain this problem in more detail. Another problem is that in July of this year,
Speaker Change: to China, and then I called the company's assistant, but no one answered, and then he wanted to ask about this.
Speaker Change: First of all, I would like to ask the following question. Because of the company's situation, I would like to ask the following question.
Speaker Change: We don't have a fixed time, but we can make an appointment.
Speaker Change: This is one, and the second is the possibilities of fees in the case of
Speaker Change: First of all, let me make another explanation. This anti-counterfeiting project...
It's what they should do when they go shooting.
Speaker Change: As for the current short-term deficit, it is due to the decline in China's economic sales. We are also in a low position in terms of production sales and prices.
Speaker Change: We think that some of the exciting activities of the new government in China's economy will slowly recover, and the price of stocks will also gradually increase, and based on the price of stocks, we will also gradually expand production to guarantee profit. Thank you.
Thank you very much.
Okay. Okay. Okay. Okay. Okay.
Speaker Change: Hi, Queenie. So firstly, about your question about the phone numbers of the company.
Speaker Change: Because it's, you know, fixed number and in the office sometimes, you know, because people not in China, they normally use mobile phone.
Speaker Change: and we cannot make sure every time there is people sitting there.
Speaker Change: But if you want to visit the company, you can make appointment or email me first, then we can visit. And I think that there is an investor who had been in the factory company site for twice.
Visit it successfully, there is no doubt on it.
And then about your questions, firstly let's look at the...
Alert Protection Project.
Speaker Change: Ms. Blue has two points. Firstly, we do this if required by the government.
Speaker Change: Because based on the government policy, there is a mineral restoration policy, which means that the companies in the mining industry.
Speaker Change: Due to its mining impact on the environment and the company's site and surrounding area, so the company had to do this.
to do the flood protection.
project.
Speaker Change: to following the government's requirements. Secondly, because this project can help the company to avoid future potential flood damage.
Speaker Change: This is about the flood protection project. Secondly, about the cool salt acquisition project.
Speaker Change: Because for the long-term environmental issue, the government requires the consolidation, consolidated production of bromine and crude salt.
Speaker Change: So, for company currently, we do not have sufficient place for the wasted halogen water to flow to our cool salt.
Echo Dutch.
Speaker Change: So in order to do the consolidated production, we must have enough cool source fuel for this consolidated production.
consolidated production and for the long-term growth of the company.
Speaker Change: This is about the CoolSalt project. So for short time now, we see the company temporarily at a loss.
Thank you. Be well.
Speaker Change: The low price of bromine at the market, then companies intentionally controlled the production and the selling volume of bromine.
so which temporarily caused the company loss at this moment.
But we think following the Chinese economic recovery,
Speaker Change: and the price of brown meat will be increased, then the company will start to increase its production as well.
economy, the profit will also increase.
Thank you.
Your next question today is coming from... Oh, sorry.
Speaker Change: And just as a reminder to the audience, should you wish to ask a question at this time, you may press star 1 on your telephone keypad to join the queue. Once again, that will be star 1 on your telephone keypad if you wish to join queue at this time to ask a question.
Speaker Change: Your next question is coming from John Rawls. John, your line is live. Please go ahead.
Yes, I have two questions.
The first is, when do you expect to make decisions?
Speaker Change: about the future of the chemical factory and about the natural gas project.
Nitrogas was announced 12 years ago.
Thank you.
Speaker Change: Virtually every interaction since then has been that we are contemplating.
having a partner doing
Speaker Change: this way, doing it that way. I wonder when a decision is actually going to be made.
Can you respond to that question, please? Okay.
Okay.
Speaker Change: Mr. Liu, this question is from John. His first question is, when and under what circumstances will the company make plans for chemical plants and natural gas projects in the future?
Cheerio!
Speaker Change: Because the company's weather project was mentioned more than 12 years ago, but there is no progress so far. There is also no major progress in the chemical industry. Under what circumstances
这是公司会做出决定
Speaker Change: it needs to have a market potential. When we invested in this project a few years ago, it was a moving project. When we moved, we thought that this project was...
当时这个产品是有市场权益,就是说是盈利的,但是当我们做了
Speaker Change: In part, we feel that there are some changes in the market environment. Some of our original designs have been compromised by the market. So if we continue to build, we may face major losses.
So we decided to suspend the project.
Speaker Change: The second is the Tiananmen project, the main thing is that we can't get the approval from the government.
Speaker Change: We have been trying to cooperate with local state-owned enterprises, but the efficiency of state-owned enterprises is very low.
Speaker Change: So we are also very anxious about this, including our senior officials will come to us on a regular basis to discuss these issues with them.
But we don't know when the results will come out.
Bye-bye.
Thank you very much.
Speaker Change: Okay. Hi, John. So here's a response from Mr. Leo. Firstly, look at the chemical segment.
Thank you.
Speaker Change: when it will be making the decision. It's totally dependent on the market. Because many men think that when we do a big investment, we have to see the future of this product or this segment.
Speaker Change: So some years ago when company started this chemical segment, it was a relocation project. That time we can see in the market this project with really good profit and a good future.
Speaker Change: For antibiotics, which raw materials to be used for human and animals.
But the plan was temporary.
Stop.
because the market for these products.
and the future is...
Speaker Change: becoming, you know, dramatically decreased. And if companies start continuing with this project, it may face loss even.
Speaker Change: So now a company is looking for some other products or some other industries this can be transferred to. So it totally depends on the next appropriate product which can meet the market demand and with good future.
Speaker Change: This is the first one. The second one is about the natural gas project.
Speaker Change: The major problem is that the company now wants to get cooperation with state-owned operations.
Speaker Change: and in order to better get the government approval on this.
natural gas mining and
Speaker Change: But, you know, the state-owned factories, they are very low efficient, even our management team.
Speaker Change: Always, frequently, they had to fly to Sichuan to be in discussion with the state owned.
Speaker Change: team. But we cannot confirm when this will happen. This is our current situation.
Thank you.
Okay, my second question.
It has to do with the bromine operation. It's.
Thank you. Bye.
quite profitable, high gross margin, even at today's prices.
Speaker Change: So, I don't understand your reasoning about limiting production. I understand that you might get more for the sales when the price of bromine goes up.
But today you're...
getting significant losses from this
Speaker Change: And the cash that the company now has is much less than it was in the past.
It seems to me you're flirting with bankruptcy.
by taking this approach.
Bye.
Good.
Hi, John. I can talk. Hi, John. Hi, John.
Speaker Change: Let me just finish. All the cash has been invested in things which to this point do not seem to impact your revenue.
So, restricting your revenue.
It seems to me...
a policy.
that's gonna hurt the company in the long run.
Bye bye.
Speaker Change: Okay, about your first part of this question, I think we explained earlier, because the
Our bromine resources are limited, such as oil and gold.
So, in order to get a better, you know,
maximize profit.
Speaker Change: the company intentionally controlled its production at this very low market selling price. But when the Chinese economy started recovering, when broadband prices increased, our production will also increase as well. This will increase the company revenue in future as well when Chinese economy come back, recovery. About your second question, I can translate Mr. Liu's comment on it.
on the matter, but I didn't see this...
利润上的上升,然后他不理解公司这个
花了这么多的现金花了这么多的现金
It seems to be based on the trend of bankruptcy.
Thank you.
Speaker Change: I don't think this has anything to do with bankruptcy. The main thing is that the company wants to develop for a long time. We feel that it must meet some of the requirements of Chinese law. At this time, it's just that we haven't done anything before.
Speaker Change: Last year, the government made a request that we had to do it, and we had to make up for the previous work that we didn't do. We had to lay the foundation for the future, so we spent a lot of money. This money is a must-spend. Secondly, the purchase of raw materials is also to ensure that our embroidery will be able to operate normally.
而必须做的一件事情。
Speaker Change: So the purpose of these two funds is to ensure the company's legal and normal operation, and to ensure that our main business will be able to operate smoothly in the future.
Back to the home zone.
Bye-bye.
合法长期生产
Thank you.
Okay. Thank you.
Speaker Change: So, here is Mr. Liu's comment that this is, you know...
nonsense or does not have any related to bankrupt.
Speaker Change: Because all these actions, all the money, cash we spend are for the long-term growth purpose of the company.
So firstly, if we look at the fuller projecting.
Speaker Change: flood protection project, we have to follow China's rules. Because, you know, based on China's rules, the mining industry have to do this for the mineral restoration. These were the common liabilities.
Speaker Change: For so many years, companies are actually employing resources, but never do this. So now companies are doing this since the government is requiring it to do.
Speaker Change: So this is a necessary must-do action, which helps the company build a strong and a necessary fundamental position, foundation for future growth.
Secondly, the cool socks.
Speaker Change: asset acquisition, which will secure the company's future, can produce more bromine with this more, you know, core source of future.
Speaker Change: So all these two actions to have secure the company to be legally
long-term.
production, and growth.
Thank you.
Your next question is coming from David Chu.
David, your line is live, please go ahead.
David Chu: Thank you. I want to ask, you have spent so much money in improving the foundation or infrastructure of the field, but you have no guarantee
to generate increased revenue or sales.
And of course you cannot control the price as well
So,
Does the management or the board have any?
evaluation, or done any research,
on how to secure increased revenue.
That's the question.
Speaker Change: Okay, hi David. Because there are two major segments. The first one is about the flood control project. This one was based on the government requirements. We had to do this. Then the second one is the coastal fields acquisition.
Speaker Change: So, I mean, if like a really analysis, you mean the second one or the first one?
The management or the board did any research.
the future demand.
Speaker Change: of the product, and how are they going to increase it in order to generate more revenue? Because you spend so much money on the project, and if you do not have any plan...
Speaker Change: to generate increased sales and revenue, then those money are pouring into a hole.
Okay. Thank you.
This question is from David.
Speaker Change: What she means is, when the company is making investments and spending cash, does it make any analysis of the market's needs, including the future price of the market? That is, does the market make any analysis of the product's needs and the price of the product? If not, how do you ensure that this can be done? If not, how do you ensure that this can be done?
Speaker Change: We have done this analysis, including the acquisition of the salt fields, which means that we can guarantee how many tons of embroidery in the future, and the price trend of how many tons of embroidery, and how many years you can get back the cost. We have done this prediction, and it is a very conservative prediction, even in the case of embroidery, it is a relatively cost-effective investment. We have this prediction.
Yes, we keep the...
analysis.
Speaker Change: Based on the market and based on the acquisition we did, like how many after our acquisition
Speaker Change: with the company, how many pounds will produce and how it will influence the company's production capability.
Speaker Change: And even based on current low market situation, you know, we did all the analysis on a very conservative perspective. And with the profit like we.
Speaker Change: Estimated, like we before say, which we estimate will get returned in future 4-5 years, a conservative point of view.
Speaker Change: What is the management's estimation of this current quarter's sales volume?
Current Culture
Did the volume do anything?
Varium on Revenue.
这个我们会下一步公告出来
Yeah, we will have an announcement.
Speaker Change: Thank you. As a reminder, should anyone wish to chat... Okay. You're welcome. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Speaker Change: Any further questions, you may press star 1 on your keypad at this time. Once again, if you did wish to join the queue, you may press star 1 on your telephone keypad at this time.
Speaker Change: we have a follow-up from David Chu. David, your line is live, please go ahead.
David Chu: Yeah, so the management cannot provide the current quarter estimation. Does it mean that the management also do not have a...
The full picture on 2025 sales figure and volume.
Speaker Change: No, hi David. Because for the transparency and fairness to all our shareholders, this number we can provide for guidance, but cannot only disclose in this conference call.
Why not?
Speaker Change: Yeah, we will make an announcement later on in our press release for the guidance.
Speaker Change: Okay, another question, is it possible for the shareholders to visit the factory or the plant?
Yes, of course.
Speaker Change: So the company can arrange to have the shareholders go to the factories and visit the factories directly.
Yes, we have shareholders visiting the companies actually already.
When is that?
Bye bye.
I think twice.
I cannot remember that clearly now.
like this shareholder.
as my memory at this time.
But you have no idea when.
Thank you. Bye-bye.
Speaker Change: I think end of last year or beginning of this year is the most recent one.
Okay, what is the best time to visit the factory?
Wait.
Bye.
What was that? Did you hear that?
Speaker Change: What is the reply? What is the best time to visit?
Yes, yes. I'm waiting for Mr. Liu to respond.
Speaker Change: Oh, I mean, generally, you can tell us in advance. But now, at the end of the year, it may not be very convenient. Generally, it should be after March.
Bye.
Speaker Change: Yes, normally just notify the company or email me in advance.
You can visit the company's site or field.
Bye.
Another question concerning the share holdings. I want to know,
Speaker Change: What is a percentage? The management or the both of directors?
Own the company's shares.
I think you can reference to a company most recently.
Annual Journal Holders' Meeting proxy being filed on SEC website.
I can send you the link if you e-mail me.
Do you mean under the SAG filing?
Yes.
And, well, just a follow-up.
Speaker Change: It looks like that they do not have a majority ownership of a company based on the number of shares they have.
Is that correct?
Yeah.
I cannot, you know, clearly remember it.
like You Ming Hu.
Speaker Change: Are there any other type of shares that the management owns that really control the company or they are just purely like the other shareholders, just own ordinary shares and control the company?
Bye bye.
Speaker Change: I think you can reference the filing on the ICT website. If you need, I can email you the link.
Speaker Change: I can't find it in the website that's why I'm asking you know it sounds pretty strange it indicates that the management own a pretty small number of percentage of the shares but they control the company okay
Speaker Change: So, there must be some other ownership that the management or board has.
Speaker Change: I don't get you. Because as I see here, Mr. Yang and his family owns around 18.5 percentage.
I don't know who you are referring to, others.
Speaker Change: I know, that's a small percentage and based on that percentage they can easily be outvoted and kicked out of the management by the majority of other shareholders.
Speaker Change: So if they own just less than 20% of a company, but they control the company, that's really strange. So, yeah, I think that's it. Thank you.
Speaker Change: That's why I'm curious. You say, are there other shares on the ship that protect them?
or help them to control the company?
Speaker Change: or other shareholders on the line can throw some light on this.
Speaker Change: The company has a board of directors and we have annual general meetings as well.
Yeah.
I understand.
Speaker Change: So, I would say the other 80% ownership shareholders didn't do anything.
to address the company issues. They just sit there.
and didn't do anything at all.
and let the minority shareholders.
Thank you.
We do have another question, a follow-up from Keeming Chen.
Kuming, your line is live, please go ahead.
Thank you very much. I consent with the gentleman's...
Speaker Change: Opinion on the majority of the owners, they're not in control of the company. From the website, it indicated as of December 2023,
all the
major control people like CEO, CFFO, and the...
Speaker Change: A few others, they own only approximately 58,000 shares, which is really a fraction of the company of entire holding.
That's the minority, the minority.
And also, I want to follow up.
with my previous questions, which were not exactly translated correctly.
Speaker Change: I was in China in July, and I called during business hours about 20 times, no answer. And then Mr. Liu, the company CEO, said that you can schedule. I also, in the past year or two, sent email to Helen twice with no answer.
And with no answer from my e-mail request.
Speaker Change: And with no answer, anybody's phone call from the company phone record, how can I, as an investor, to schedule something to visit or get any communication at all from the company?
Speaker Change: Premium, I don't know when did you send me email because I just not checked on my mailbox. I did not get any email from you.
Speaker Change: But there are shareholders which have visited the company site. You can send me an email in advance and arrange your trip to the company.
Speaker Change: Thank you. We have reached the end of the Q&A session at this time.
Speaker Change: And we do thank you for your participation. I'd now like to turn the floor back to Helen Xu for closing remarks.
Speaker Change: Operator, since the time is up, I think we can close the call for today. Thank you.
Speaker Change: Thank you. This does conclude today's conference call. You may disconnect at this time and have a wonderful day. Thank you for your participation.
Bye.