Greetings and welcome to the China Automotive Systems Second Quarter 2017 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Mr. Kevin Theiss. Thank you. You may begin.

Thank you everyone for joining us today. Welcome to China Automotive Systems' 2017 second quarter conference call. Joining us today are Mr. Hanlin Chen, Chairman; and Mr. Jie Li, Chief Financial Officer of China Automotive Systems. They will be available to answer questions later in the conference call with the assistance of translation. Before we begin, I would remind all listeners that throughout this call, we may make statements that may contain forward-looking statements. Forward-looking statements represent the Company's estimate and assumptions only as of the date of this call. As a result, the company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors including those described under the heading Risk Factors in the Company's Form 10-K Annual Report for the year ended December 31, 2016 as filed with the Securities and Exchange Commission on March 30, 2017, and in other documents filed by the company from time-to-time with the Securities Exchange Commission. The company expressly disclaims any duty to provide updates to any forward-looking statements made in this call whether as a result of new information, future events or otherwise. On this call, I will provide a brief overview and summary of financial results for the 2017 second quarter and six month period, management will then conduct a question-and-answer session. The following 2017 second quarter financial results are unaudited and the fiscal year results are audited. These results are reported under U.S. GAAP for the purposes of our call today. I will review the financial results in U.S. dollars. We'll begin with the review of the recent dynamics of the automobile industry in China Automotive market position. The 2016 year is very strong for passenger vehicle sales as the Chinese government reduced its consumption tax on automobile purchases from 10%…

[Operator Instructions] Our first question comes from the line of William Gregozeski with Greenridge Global. Please proceed with your question.

Hi. Could you talk a little bit about why you are seeing the best increases now in the hydraulic product, and the year-over-year decline again in EPS sales?

[Interpreted] The reason hydraulic product sales has experienced increase in the second quarter is mainly due to a two areas, one is the tax [indiscernible] were picking up. However, and most of our international shipments are hydraulic products. nd the other reason is driving that the increase of hydraulic sales, product sales in the commercial vehicle sector. As you know, the commercial vehicle sector in China has posted very robust growth and as far as in the second quarter. That's why hydraulic sales is up for us.

[Interpreted] Okay. So, in terms EPS or EPS sales, EPS product sales, which is or some quarter sales is relatively flat compared with the same period last year. There are two reasons, one is the report took place late last year, early this has a good visual effect on order site. Second thing is the overall passenger vehicles sector. The growth has been one of the results. Yesterday the passenger vehicle sales year-over-year increase is only 1.6% that's for the entire industry and it was in the industry where the EPS product had mostly in store or NPV and sedan these are even has given us smaller growth, even negative growth for those two segments that's why our EPS - overall EPS sales has been remained flat.

Okay. As far as who they hang on for the international business, the revenue for the quarter was quite a bit higher than I was modeling for the ones you have. What's the quarterly or annual revenue, what you guys have in place now is for the international sport business?

[Interpreted] Okay. Although international front for the business both $40 million in the first half of 2017, we are anticipating $50 million sales in the second half. So, full year would be $90 million for current unit along international.

Okay. And last question is can you give an update on the Brazilian operations and also how you added that 15.8% ownership at no cost.

15.8% oh, okay.

Yes, the equity is there in the quarter?

[Interpreted] Okay. So the Brazilian operation is on track as we announced earlier the annual productions 120,000 units. The first half we brought about $20 million R&D sales in terms -- in terms of the equity consolidation for that 15.8% it's basically in that our Brazilian Venture has been going for a while due to the economic environment in Brazil and being going too well. Even our first quarter of the -- first half of the year was decent revenue was still running at a loss, small loss. So our local partner, the Brazilian partner is somewhat wants to leave the venture. So since the reason is the question you are asking is how we, if we consolidate the equity, which are paying anything human beings local nor require and a local partner at the time of establishment. So we need to have a Brazilian National at that time to form a company with us Joint Venture with us. So we could have that meeting putting in any month. So, that's the reason what we did those share back since business is losing money, it is well interviewed to us on some cost.

Okay. Is there any expectation you might give the rest of it back from the other Brazilian National?

[Interpreted] Not at the moment.

Okay. All right, that's all I have. Thanks guys. See you next week. Thank you.

Thank you.

Thank you. [Operator Instructions] There are no further questions. I will now turn it back to management for closing comments.

Thank you.

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time.