Question-and-Answer Session
Operator
(Operator Instruction). Your first question comes from the line of Kun Tao with Roth Capital.
Kun Tao - Roth Capital
Good morning everyone. My first question is, you just mentioned on the SG&A cost expenses, you try to lower that cost in terms of revenue. In this quarter actually that cost would be I believe it is increasing. So, what is sort of expectation in Q4 and going forward? Do you have a specific target?
Yong Zhang
[Foreign Language]
Some expenses have increased while the SG&A expenses however remain reasonably stable on absolute dollar value. And the increase is mainly due to the increased selling and marketing activities to promote new projects and as well as other expenses. And in Q4, we will do something to cut the expense as well as selling and in promotion expense for the marketing activities.
[Foreign Language]
And you know that [ex that] sales for Q4 comparing with the former original expectation has decreased. So, we have no need to maintain a very large headcount. And in Q4, we will cut salaries and other expenses and we will go in and continue to cut the SG&A piece into Q4.
[Foreign Language]
And as you know, comparing with original expectations for the sales volume, and right now our strategy is to sit part our liquidity and to make sure that the sales volume is as per expectation.
[Foreign Language]
And our base expectation for the sales volume in Q4 and next year 2009 will replace our, I mean the selling and general and administrative fees in our next year's budget.
Kun Tao - Roth Capital
All right. Thanks. For you cash flow, do you, what's your cash flow from operation in the quarter and what's your cash flow from the investment this quarter?
Yong Zhang
[Foreign Language]
Okay. Frank will revert to this question.
Frank Hin
For the financial activities, firstly for the investment folks, I mean, mainly we get the monies in from the bank borrowings. From September, I mean from Jan to September, talking borrowings we have, I was talking about sometimes RMB1.3 billion in abandonment that we have.
And as the rest, okay, operational wise, I don't have the exact numbers with me because, on our quarterly we don't immediately clarify the comparison in the cash flow statement. But roughly we are talking about borrowings in the range of RMB4 billion to RMB5 billion unrealized from the operational wise. But I have to check on that in response to your question. As far as for financing activities, I've just told you, okay, there will be RMB1.3 billion, of income that we have drawn down from Jan to November.
- To read the full transcript on Seeking Alpha, click here »
