On December 19th, we hold the groundbreaking ceremony for phase II of our Renhe factory construction.
Renhe factory phase I was completed in 2015, and the newly constructed site has since been our main production facility. In phase II, new building compounds will be built on the adjacent 40,000 square meters land. Designed construction area of the structure is 116,000 square meters. This construction project is a partial fulfilment of our IPO fund-raising proposal, which is to increase annual production capacity for novel, environmental-friendly brazing alloys by 4,000 tons. Combining the incremental capacity and the existing capacity of our Gouzhuang factory and Renhe factory phase I, total annual production capacity will reach 10,000 tons. The site will serve as our global headquarters, and in addition to being an intelligent manufacturing facility, it will also include functional areas for R&D, office space and living space for employees. The company has plans to adopt world-class manufacturing equipment in the industry and to implement digital transformation at the new factory.