Greetings and welcome to the China Automotive Systems Incorporated First Quarter 2015 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I’ll now turn the call over to your host, Mr. Kevin Theiss. Thank you. Sir, you may now begin.

Thank you for joining us today and welcome to China Automotive Systems 2015 first quarter conference call. My name is Kevin Theiss, and I’m with Grayling, China Automotive’s U.S. Investor Relations Advisor. Joining us today are Mr. Hanlin Chen, Chairman; Mr. Qizhou Wu, Chief Executive Officer, Mr. Jie Li, Chief Financial Officer; and Mr. Daming Hu, Chief Accounting Officer of China Automotive Systems. They will be available to answer questions later in the conference call. And we will help with translation. Before we begin, I’ll remind all listeners that throughout this call, we may make statements that may contain forward looking statements. Forward looking statements represent our estimates and assumptions only as of the date of this call. As a result, the company’s actual results could differ materially from those contained in these forward looking statements due to a number of factors including those described under the heading Risk Factors in the company’s Form 10-K Annual Report for the year ended December 31, 2014 filed with the Securities and Exchange Commission on March 26, 2015, respectively; and in documents filed by the company from time to time with the Securities and Exchange Commission. The company expressly disclaims any duty to provide updates to any forward looking statements made in this call whether as a result of new information, future events or otherwise. I’ll provide a brief overview and summary of the 2015 first quarter financial results. And then I’ll turn to management to conduct the question-and-answer session. The 2015 first quarter results are unaudited numbers, results are reported under U.S. GAAP. For our call today, I’ll review the financial results in U.S. dollars. First, let’s review the industry status and our market position for the first quarter of 2015. According to China’s National Bureau of Statistics, China’s GDP was 7%…

Thank you. [Operator Instructions] Our first question is coming from William Gregozeski of Greenridge Global. Please proceed with your question.

Hi, in terms of EPS sales, are those mixed into the other subsidiaries that you breakout in your filings?

Let me answer this question. Actually right now, we incorporate our EPS sales into [indiscernible] and not any outside sector.

I’m sorry could you repeat that?

Yeah, it was [indiscernible] out of one of the biggest subsidiary’s sales now, not in other sectors.

Okay. All right. And then when will we start seeing better margins from those growing EPS sales?

[Foreign Language] So, overall, our EPS business is growing and EPS margins also including. The reason are blended gross margin decline in the first quarter 2015 was mainly due to the weak commercial vehicle market and in turn hits our commercial vehicle business, steering business. And that factor has somewhat dragged [ph] the gross margin.

Okay. What about then – if the EPS sales are in Hanlong [ph], I saw the margins year-over-year down in that segment specifically?

EPS?

Yeah, I think, Jie, sales were in Hanlong [ph], the margins for Hanlong [ph] were down, gross margins were down year-over-year?

[Foreign Language] EPS margin year-over-year basis has increased. However, EPS margin compared with hydraulic steering product is still lower than the average of hydraulic steering margin. We are working on that – the profit.

Okay. All right. And then my last question is – I saw a little note in the filing that there was $2.4 million payment to a customer for new product testing. Can you just say what that was about?

$2.5 million, what?

It said there was a $2.4 million payment to a new customer for new product testing services.

[Foreign Language] It’s the R&D expenses, you are right, Bill. It’s for R&D project for Beijing Auto. And according to U.S. GAAP at this moment, we can only classify this category, but it’s actually R&D expenses.

Okay. All right. Thank you. That’s all I had.

Thank you.

Thank you. Our next question is coming from Gary Nash of Crede Capital Group. Please proceed with your questions.

Yeah, good morning, gentlemen. I have two questions. My first one is, how much more R&D will be required to expand the electric power steering models?

[Foreign Language] We are – by and large, will deploy 5% of our revenue to R&D and most of this R&D dollars will go into EPS products, development and research. And yeah, so, you can see, we continue to invest in the EPS product line.

Okay. And my second question is do you plan to sell electric power steering to the commercial vehicle market in terms if you are guys are looking at?

[Foreign Language] Yeah. In the commercial vehicle for a smaller size EPS there is a market for the EPS product, however when you talk about the large trucks and buses in the commercial vehicle category, we have a product, it’s not quite, it is what we call EHPS, it’s electric hydraulic power steering, it has some electronic components in it. It’s a hybrid product. It has a hydraulic line. So hopefully that answer your question.

Yeah, it does, okay. Thank you very much.

Thank you.

[Operator Instructions] Our next question is coming from Robert Polivich, a Private Investor. Please proceed with your question.

Thank you. Good morning and congratulations on the performance for China Automotive for Q1 and for that matter for many quarters in the past, I had a question on the shelf registration that we saw back in April and I know it’s typical for companies to do these shelf registrations just to keep their options open, but I did notice that Chairman Chen also filed along with that registration to potentially sell up to 5 million shares and I was just wondering is there the possibility of a different perspective with regard to the future of China Automotive in potential merger, acquisitions or sale of the company. Might we expect to see something in the form of an announcement in the not too distant future?

[Foreign Language] The shop registration is actually [indiscernible] long term. We are planning to continue to grow globally and so we are eyeing all kinds of opportunities including some of the M&A opportunities. When a good opportunity presents itself, we want to be able to come to the market to take the money and complete the transaction. This shop registration is three year in duration. So we’re not looking for anything immediate term. Okay, in terms of your second question regarding the Chairman, Chairman has been holding his share ever since the inception. So it’s about 20 years. He has always been buying stock and never sold a share and also some of the other mid-level management are, they are having shares through Chairman. Again, it’s just one of the filing. It’s only a small portion of his overall holding and he is still and he is very confident in the long-term prospects of the company. He just want to have that option if there is an opportunity presents itself, you will be able, like any other company [indiscernible] to take come cash whole. And there is no plan for selling the company or any kind of re-org. They continue – the Chairman continue to show his confidence in the company and the company is well positioned to capture the global market opportunities as well as continue to grow internally in China.

I had another question and you know I was just wondering how could we get the share price to go up with China Automotive? I mean the success behind the company is the performance has been exceptional and I know the market is getting a little bit difficult there, but you’re growing around it. At this point, is there any plan for some share buyback or something to kind of motivate that price to go up and the only other last question I have is, any other new contracts, I know you don’t [indiscernible] these companies until you get the awards, is there something to look forward to in the not too distant future with regard to any possible new relationships with automotive manufactures? Thank you. Thank you very much.

[Foreign Language] So, there is no – again there is no plan for – immediate plan for share buyback as far as the Board of Director’s view however, Mr. Jie Li, the CFO is going to pick your suggestion to the Board again. In terms of a new contracts and any potential new OEM relationship, there are actually some good development in that department. However, due to the restriction we have with this OEM customer, we’re not allowed to make announcement until we start to do a large volume shipment and so they make it difficult for us, but again the business is definitely speaks for itself. Our shipment to North America has been quite strong.

Thank you. At this time, I’d like to turn the floor back over to management for any additional or closing comments.

We want to thank you all for participating in the first quarter 2015 earnings conference call. We look forward to speaking with you again. Thank you.

Ladies and gentlemen, thank you for your participation in today’s teleconference. You may disconnect your lines at this time and have a wonderful day.