As a reminder, this conference is being recorded. In addition, a webcast of this conference call will be available on VisionChina Media’s Investor Relations website at www.visionchina.cn.
I will now turn the call over to our CEO, Mr. Li.
Hello everyone and thank you for joining us today.
In the first quarter of 2012, as anticipated, the company saw quarter-over-quarter decrease in revenue, largely due to the Chinese New Year holiday. Despite this seasonality and other pressures of the quarter, advertising service revenue reached $28.3, exceeding the company’s guidance.
In the first quarter of 2012, we celebrated VisionChina Media’s seventh anniversary. As a company growing from a small startup, VisionChina Media has become the market leader in China’s mobile television industry. Boasting an influential media network across China, VisionChina Media’s distinctive model and its impact on the development of media in China have been groundbreaking, and we have benefited from strong and stable relationships with the Chinese government.
Most recently we have begun exploring ways to lead the development of the new national media and advertising industrial park to be based in Shenzhen that will be fully funded by the central government and municipal government of Shenzhen. The project will support the development of a large industry cluster that would include companies that serve various media functions such as concept design, content and programming, advertising production, as well as many others. As the ultimate leading developer of this program -- project, VisionChina Media will benefit from the collective cooperation of the companies in this area. With central and municipal government bodies paying close attention to the development of this project and supporting the initiative, there would be additional opportunities for VisionChina Media’s long-term growth.
Turning now to our media network development, the implementation of our proven cost control initiatives continues, including our proactive approach to control costs, developing our core media resources. In addition, we are deepening our penetration into tier 3 and tier 4 cities through plausible agency agreements that allow us to expand our media coverage and enhance our ability to support multinational and domestic brands in their product promotion and sales in those region without increasing our fixed media costs.