ReneSola does not assume any obligation to update any forward-looking statements except as required under applicable law. Before I turn the call over to Mr. Li please be reminded that unless otherwise noted, all figures mentioned during this conference call are in US dollars. It is now my pleasure to introduce Mr. Xianshou Li, CEO of ReneSola. Mr. Li will give us remarks in Mandarin and I will read a translation. Please go ahead, Mr. Li.
[Foreign Language] Hello and thank you for joining today's 2012 second quarter earnings call. If you have downloaded our presentation, please turn to slide four for our company highlights.
[Foreign Language]Despite challenging market conditions in the second quarter of 2012, we made significant progress in our module business, while at the same time lowering our overall costs and investing in R&D. We have increasingly focused on a relatively better margin module business and the second quarter we delivered record module shipments. While further ASP declines put pressure on our margins, improvements in our manufacturing processes helped lead to decreases in the manufacturing cost of modules, wafers and polysilicon in the second quarter. At the same time we continue to invest in R&D to improve our Virtus technology and develop horizontal products such as micro inverters. We will remain committed to R&D while simultaneously expanding our sales and marketing reach to grow our market share and position ReneSola favorably once market conditions improve. [Foreign Language] I will now quickly review our shipments. Please turn to slide six for a snapshot of our shipments and financial progress. [Foreign Language] Total solar product shipments in the second quarter of 2012 were a record 503.7 megawatts, an increase of 8.1% from 466 megawatts in the first quarter. Module shipments rose over 75% quarter over quarter largely due to the success of our new regional sales teams plus relatively strong demand from Europe particularly from Germany as well as demand from Australia. Wafer shipments decreased 8.3% as a result of a strong demand for our modules as we use of our own wafers in house.