Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.In addition, any projections as to the Company's future performance represents management's estimates as of today August 15, 2012. China Gerui assumes no obligation to update these projections in the future as market conditions change. I will now turn the call over to China Gerui's Chairman and CEO, Mr. Mingwang Lu for some brief openings remarks. CCG’s (inaudible) will be translating for Mr. Lu. Mr. Lu, please. Mingwang Lu [Foreign Language] Dear gentlemen and ladies, thanks for joining us today to the earnings conference call. [Foreign Language] We achieved a reasonable level of revenue and cash flow generation in the second quarter of the year, despite a very weak pricing environment, and challenging domestic and international market condition. Our second quarter saw further utilization of our 2200 tons of chromium plating capacity and the steady ramp up of production from our added specialized cold-rolled wide-strip steel capacity. [Foreign Language] While the current market environment has been challenging, we believe that our competitive advantages enable us to uniquely meet our customers' needs, which will enable us to generate continued solid results. We will closely monitor the market economic conditions in China, and seek to diversify our customer base by exploring new export markets, as well as enrich our product mix, by expanding the range of our end-use product and materials. [Foreign Language] We believe that our adoption of a wider customer base fits our strategy of being a high-end global steel producer will enable us to fully optimize our new capacity and specialized value-added capacity. [Foreign Language] Although the rest of the year 2012 continues to look challenging, we are confident that our strategies already in place will enable us to weather current market condition, and to testing our specialized steel segment in the long term. We are intent on executing upon our initial so as to leverage our new capacities and technologies already in place as well as those currently being developed.
[Foreign Language]I thank you again for joining us, and we'll now turn the call over to Edward, our CFO. Edward? Edward Meng Thank you, Mr. Lu, and thanks to all online attending this earnings call. Looking at the queue of listeners, I do appreciate people from the West Coast getting up early, and also people from Europe and China. To begin, a summary of the second quarter’s financials. For more details, please refer to our earnings press release earlier today. Our revenue decreased 10.8% to $76.8 million in the second quarter of 2012 from $86.1 million in the second quarter of 2011. The decrease in revenue was primarily due to an 18.2% decrease in the Company’s average selling price or ASP to $820 per ton for the second quarter of 2012 as compared to an average selling price of $1004 for the same period of last year. This was partially offset by a 9.2% increase in sales volume to approximately 93,500 tons for the second quarter of 2012 from approximately 85,600 tons for the same period of 2011. Gross profit decreased 16% to $19.8 million in the second quarter of this year from $23.6 million in the same period of last year. Gross margin was 25.8% compared to 27.4% in the first quarter of 2011. The decrease in gross margin was due to a weak domestic price environment as China’s economic growth has continued to slow in 2012, and in addition there was an impact from the testing associated with continued ramp up of the added 100,000 tons specialized steel production line. Read the rest of this transcript for free on seekingalpha.com