Joining me on today’s call is the company’s chief executive officer, Mr. Alexander Lee, and the company’s chief financial officer, Mr. Steven Wong.I’d now like to turn the call over to the chief executive officer, Mr. Alexander Lee. Alex? Alexander Lee Thank you. Good morning everyone and welcome to the call. I would like to take this opportunity to give you a quick update on our various initiatives. As many of you know, Albert and I have both joined the company at the beginning of the second quarter. Albert serves as the president of the company and I’m now serving as the CEO. Upon taking our respective positions, we quickly turned our focus to three key areas which I’d like to discuss today; namely our activities in China, our focus on revenue generation and some of our product activities. With respect to China, Albert and I quickly understood the importance of the China market to our business plan. So we focus on the company’s negotiations with the cities of Wu’an and Handan, which are both located in Hebei province in China. By April 19th, we successfully concluded our negotiations and signed our agreements in an economic development confine in Hong Kong, which is hosted by Handan City. These agreements shall provide many perspective benefits of the company including the planned establishment and production facility within the newly formed technology firm in Wu’an City. In addition, these agreements include various orders for EV buses, taxis, and energy storage systems over the next few years. Since we signed those agreements, we’ve made some excellent progress. We’ve established an office in July at China and started to hire some initial staff there. We retained video in China to manager accounts. We started the planning process and submitted our preliminary plan designs and send everyone for their review. The land transfers will occur in phases and the process is moving along according to the plan.
August 1st, we received $1.9 million down payment from the City of Wu’an for its first EV bus order. This order calls for the delivery of 50 medium-sized EV buses by the end of 2012.In the next few weeks, we’ll create ground in the first phase of construction at the plant Altair site and Wu’an Technology Park. And essentially we’ll be building a showroom in sales office as part of the first phase of construction. In terms of revenue, the management team has placed great emphasis on the issue of revenue generation both through the delivery of existing orders and through new sales. We have four large energy storage systems in our product pipeline, project pipeline, I’m sorry, along with smaller early stage projects. Although our Q2 revenues were fairly low, our system deliveries to customers like Hawaiian Natural Energy Institute, known as HNEI, ESH and then European renewable energy customer, again, later in the year, which will trigger large milestone payments related to the testing, installation and commissioning phases of those programs. With respect to sales, in addition to the $1.9 million down payment that we just received, we grow the supply agreement Proterra in May and received the first PO in June for deliveries within January 2013. We also received the follow-on order for algorithm dynamics from HNEI which I’ll be utilizing two entities that we will be delivering to them for using solar and wind applications. During the quarter, I also met with HNEI in El Salvador. As you know, we ordered a contract for a 10 megawatt turnkey system there. HNEI continues to show its support for the deal and we’re directly engaged with them to win the necessary and regulatory approvals. With respect to our proposal activity, we recently down selected the final large turnkey frequency regulation project and had submitted several other projects for turnkey projects. Although the sales process for the motor systems can be quite challenging, customer are becoming increasingly aware of our product capabilities and strengths and inviting us to tender. Read the rest of this transcript for free on seekingalpha.com