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.Xianshou 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.
[Foreign Language]ASPs continued to decline in the second quarter with module ASPs dropping to 0.75 per watt and wafer ASPs dropping to $0.31 per watt in the second quarter compared to $0.84 per watt and $0.33 per watt respectively in the first quarter. Second quarter revenues were $233 million up 10.2% from $211.5 million in the first quarter as a result of higher module shipments. [Foreign Language] Please turn to slide 7 for update on our research and developments. [Foreign Language] R&D remained the central focus in the second quarter. During the quarter, we made progress in the development of our Virtus wafer and modules. We developed a second generation of our Virtus wafer, which uses our newly developed and proprietary in-house manufacturing process, the Virtus A++ process which reduces wafers without the use of monocrystalline seeds. This new manufacturing process results in lower light induced degradation and lower processing costs, which in turn results in a production of more distributed ingots with a greater percentage of high efficiency products. At present, our Virtus A++ processing cost is close to $0.12 per watt, significantly lower than our overall processing cost of $0.17 per watt. We are confident, we can lower this to $0.11 per watt by the end of the year and we’ll continue to invest in Virtus A++ to improve its efficiency. At present, the Virtus A++ method produces wafers with average cell efficiency of 17.5% and Virtus II modules that generate 250 watts to 260 watts of power based on 60 solar cells with a potential to generate as much as 300 watts to 310 watts of power based on 72 solar cells. Read the rest of this transcript for free on seekingalpha.com