Answer to my email-request about latest developements of QSoLast Friday, June 13, I sent an email to
Gary Perkins, who is assigned as contact for
investor relations on www.qsolar.net, placing a few questions related to the recent decline of the stock prices. Today I got his surprisingly open response, which might be of some interest for all of You.
My email of June, 13: Dear Mr. Perkins,
On June 3, the US authorities announced import duties on Chines solar products (26.89%).
On June 5 I bought QSolar shares only about half an hour bevor Mr. Xie started "to sell the price down" by more than 20% within a few minutes. That was very disapointing, as You might imagine!
Two days later,when the price reached $0.40, I decided to triple my investment. Thus I reduced my average price, which is now $0.533. I plan to keep the shares for a while, hoping for a healthy development of your company (and the corresponding share price).
Since then I watched every day, as Mr. Xie kept selling shares at a price just above $0.40 a piece, thus losing roughly $0.35 per share since hey bought at $0.75 a piece.
Between June 4 and June 12 he sold 1.243.500 shares at an average of $0.491. During that time he suffered/accepted a loss of $322.120.
Source: https://www.canadianinsider.com/node/7?ticker=QSL
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Questions:
Preferred US areas for distribution of Your products would be - beside other countries in the world - i.e. Arizona, East - and South California, Nevada, New Mexico and Texas.
- How much will QSolar be affected by the new import duties on Chines solar products (26.89%).
- How is Mr. Xie’s selling shares related to this ?
- What is Your view to these events. I am convinced, that Your executives have a clear view of what the import duties will do to Your business and why he is acting like that and thus hurting the share price and the trust of the public in Your shares … and Your company.
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I would be very pleased, if You would share Your view with Your less important shareholders
Yours faithfully
His response of today, June 16:
Thank you for your interest and support of QSolar.
Questions:
Preferred US areas for distribution of Your products would be - beside other countries in the world - i.e. Arizona, East - and South California, Nevada, New Mexico and Texas.
- How much will QSolar be affected by the new import duties on Chines solar products (26.89%).
QSolar is affected by the import duties like every other Chinese manufacturer as manufacturing is currently done by a wholly-owned Chinese subsidiary, QSolar (Shanghai) photovoltaic Technology Co. Ltd., in Shanghai, China.
A. QSolar Mass solar market - It will impact two products for the mass solar or traditional rooftop market (QSolar standard QSS250 and QSF (Flexible))
The plan to deal with tariffs, upon successful TUV SUD UL certification results, QSolar sees three options currently:
1. Set up manufacturing in a labour friendly and economically attractive state (Florida is a candidate) utilizing USA made solar cells to meet content rules, and have a “made in USA” product;
2. Partner with an existing USA solar manufacture, meeting “made in USA” criteria offering the above value proposition;
3. Licence the technology or right to manufacture specific products to an existing or new USA group.
B. QSolar “speciality” market - panels (8W-200W) used in other solar applications where the traditional mass solar manufacturers are not interested in, or do not have the products or technology or know-how to penetrate, (called off-grid autonomous soalr power solutions) we see a good market opportunity, very good margins and little impact due to importing component parts. QSOlar is dealing with U.S. Customs on this issue.
- How is Mr. Xie’s selling shares related to this ?
It is not. The Corporation has press released this (twice) and QSolar has been advised Mr. Xie has had to sell for personal reasons. We speculate a capital requirement, unrelated to and which is not in QSolar’s control. QSolar continues to communicate through translation with Mr. Xie.
- What is Your view to these events. I am convinced, that Your executives have a clear view of what the import duties will do to Your business and why he is acting like that and thus hurting the share price and the trust of the public in Your shares … and Your company
QSolar believes there are two distinct events that have happened. It would appear there is selling and buying, from other parties apart from what Mr. Xie has reported on insider report filings.. QSolar is of course concerned with the significant price decline which is not attributed to corporate developments.
We trust we have satisfactorily addressed your questions.
Regards,
QSolar Limited