With that said it's now my pleasure to turn the call over to Lihua’s Chairman and Chief Executive Officer, Mr. Jianhua Zhu, who will provide an overview of recent operational highlights in Mandarin, I will then translate Mr. Zhu’s remarks and provide some additional comments on his behalf before turning the call over to Daphne Huang, Lihua’s Chief Financial Officer to discuss the second quarter 2012 financial results. Then we will open the call up to your questions.Mr. Zhu, please go ahead. Jianhua Zhu In the second quarter we continue to grow our sales by capturing new opportunities within the large and growing end markets of our copper alternative products. We achieved another quarter of double-digits sales growth over last year and have set the stage for continued strong performance over the longer term. Although our bottom-line performance was impacted by ongoing ASP pressures, demand for our industry leading copper anode, rod and wire products remains strong and we are well equipped the cash remover of the unmet demand in the market following the launch of our two new copper anode smelters in June. These two smelters have more than doubled our copper anode capacity to 85,000 tons per year, while increasing total refine copper production capacity by nearly 60% to 135,000 metric tons per year. We produced approximately 1,000 tons of copper anodes from the two new smelters following the launch of production in June, as to reach output close to full capacity at the end of the third quarter. The (inaudible) completion and longer than anticipated ramp up of the two new smelters as well as a reduced assumption in profitability of our CCA copper wire and copper anode products, we are revising our 2012 guidance to gross profit of 84 to $87 million and non-GAAP net income of 54 to 57 million. While this is softer than our initial expectations, we remain on-track (inaudible) another year of solid growth and have taken additional steps to further solidify our long-term process.
Our copper rod production continues to generate strong sales following it's reintroduction in the fourth quarter of 2011. With 50,000 tons of copper rod production capacity and 20,000 to 25,000 tons of copper wire drawing capacity and our ability (inaudible) pure copper rod to other wire producers will be a meaningful contributor to our top and bottom-line growth.In addition to our near-term growth objective, we are working on initiatives that will support our company’s sustainable growth for the longer term. We completed the second quarter with a strong balance sheet including approximately $125 million in cash and we are putting the cash to use for investments that will solidify Lihua’s ability to continue growing within our current markets, while introducing new products that will gain entry into new factoring markets that have significant unmet needs for these types of products we produce. The new CCA cable and wire products are designed to address the cost sensitivities of customers in the electric power delivery and transmission markets, this segment of the market generate sales of [several] billion dollars annually. And there are currently no alternative to pure copper cable and wire for electric power transmission. With our partners at the Shanghai Electric Cable Research Institute, we are going to change this. We plan to introduce bi-metallic cable and wire product comprised approximately 50% copper and 50% aluminum by weight which can provide the same press release even higher connectivity as the pure copper cable and wire currently being used in the under 1000 voltage electric transmission market. The 50-50 ratio of aluminum to copper differs from traditional CCA and requires an entirely new binding product to produce a product capable of maintaining the required structural integrity and conductivity. We are currently working with our partners at SECRI to secure the necessary patents and establish industry standards for the use of this new bi-metallic CCA cable and wire products. Feedback from prospective customers has been very positive and I’m confident that these products will represent another important growth engines for Lihua. Read the rest of this transcript for free on seekingalpha.com