Good morning. My name is Kyla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Gulf Resources’ 2014 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions). Thank you. I will now turn the call over to Helen Xu.

Hi, thank you, operator. Good morning, ladies and gentlemen, and good evening to those of you who are joining us from China. And we would like to welcome all of you to Gulf Resources’ first quarter 2014 earnings conference call. My name is Helen, IR Director and Assistant of Company's CEO. Our CEO and CFO of the Company, Mr. Xiaobin Liu; and Mr. Min Li, will also join this call today. I will be offering translation for the management’s comments for the Company’s operating results. I’d like to remind you that in this call, management’s remarks will contain forward-looking statements which are subject to risks and uncertainties. The management may make additional forward-looking statements. Therefore the Company claims protection of Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today depending upon number of risk factors, including but not limited to, the general economic business condition in China, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for the bromine and other oil fields, agriculture and the [indiscernible] production chemicals and changes of technology, the ability to make future bromine asset forecast and various other factors beyond the company’s control. All forward-looking statements are expressly qualified in their entirety by the cautionary statements and the risk factors detailed through the Company’s reports filed with SEC. Accordingly, our Company believes that expectations reflected in these forward-looking statements are reasonable and there can be no assurance of such were proven to be correct. In addition, any reference to the Company’s future performance represents the Company’s management estimate as of today, the 12th of May, 2014. Gulf Resources assumes no obligation to update these projections in the future as market conditions may change. For those of you unable to listen to the entire call at this time, a replay will be available for 14 days at the Company’s website. The call is also accessible through the webcast and the link is accessible through our Company website. Please look at our press release issued earlier for details. It’s now my pleasure to turn this call to Mr. Liu, the company’s CEO, who is going to provide some initial remarks and then I will do the translating for him. Xiaobin?

First of all, thank you all for participating in Gulf Resources first quarter 2014 earnings conference call. I am pleased to report that revenue from chemical segments products had impressive performance increased by 36.9% even with the average performance from bromine and the crude salt segment in the first quarter of 2014 as compared with the same period of 2013. The company’s net income from operations still increased by 115% and the net income increased by 128% as compared with the same quarter of 2013. Although we expect bromine prices to stay at current relatively low level in fiscal year 2014 due to the continued slowdown of the economy in China. We believe the strategy to take this great opportunity to expand the business segments, by exploring more brine water resources and obtaining bromine assets through acquisitions, the development of new projects and continually looking and doing attractive horizontal and vertical acquisition targets would enable the Company to achieve long-term growth in the future while considering the sufficient cash flow from our operating activities. In the meantime, the Company will also try to improve its internal control, expand sales markets, increase its production utilization rate and decrease management and the administration expenses.

Thank you, Mr. Liu. I am going to continue with presenting the company’s results for the first quarter of 2014 on behalf of the company’s CEO. The company’s net revenue was approximately 26.6 million for three months period ended March 31, 2014; an increase of approximately 14% as compared to the same period in 2013. This increase were primarily attributable to the increase of our chemical segments products which increased approximately 36.9% as we mentioned earlier. The gross profit was approximately 6.9 million or 27% of net revenue for the three-months period ended March 31, 2014 as compared to approximately 4.6 million, or 20%, of net revenue for the same period in 2013. The increase in gross profit percent was primarily attributable to the increase in the margin percent in all of our three segments. The total research and development costs incurred for the three-month ended March 31, 2013 and 2014 were 31,000 and 18,000 respectively, an increase of 74%. Research and development costs for the three-months period ended March 31, 2014 and 2013 representing raw materials used by Company’s vision for testing of the manufacturing routine. General and administrative expenses were 1.3 million for the three-months period ended March 31, 2014; an increase of approximately 33% as compared to $2 million for the same period in 2013. The decrease was primarily due to firstly, the legal cost and expenses incurred in connection with the class action lawsuit as described in our 2013 Form 10-K, which was around 93,000 for the three-months period ended March 31, 2013 and $0 for the same period in this year since the lawsuit was already settled in early of 2013; and the second thing was because of the unrealized exchange gain in relation to the translation difference of inter-company balances in US dollar and…

(Operator Instructions) The first question is from James (Halt) [ph].

Yes, good afternoon, good morning or whatever time. The company stock sells at a price well below both asset and cash value. Purchases of the company stock is very attractive use of company funds. Are you planning on buying back company stock and if not, why not?

Okay. Hi, James, this is the comments from Mr. Liu that he said that we heard some concern from some investors as we have hinted, they could email us or contact us regarding the Company’s share prices decrease. But the Company management are considering that, while we're considering the economic condition in China and for the company’s long-term growth acquisition, we still didn’t make any decision yet to do acquisition or use this money to purchase share.

The second question or follow-up question, the market does not recognize the value of the Gulf and perhaps this is primarily due to a lack of confidence in the financial space upon experience with other companies that came to market under similar circumstances. What is Gulf planning to do to increase investor confidence in the company?

Okay. Company thinks that company's growth is a long time plan which is not a temporarily value, considering the Chinese company’s performance in the market which might not be real and we think currently approve everything and the long term reward to shareholders is our best interest. So the management now is considering how to best use the cash in hand and the product's maximum value to our shareholders in long term run. So we think the company's long term growth and we bring the confidence in shareholders and maximize shareholders' value in long term as well.

What are you doing in the near term to increase investor confidence?

Okay. Mr. Liu said in quarter three increase the shareholder's confidence in company when we first increased the communication with shareholders in some road show and that may involve an IR first to a special communication with shareholders as well increase the company's transparency to our shareholders.

Hi, operator.

Yes, ma’am.

You may ask any other questions?

I am not showing any further questions in queue.

Okay.

Are there any closing remarks?

So, I think if there are no other questions. We think we can close the call.

And that is correct, there are no further questions.

Okay, operator. Thank you very much. If there are no other questions I think we can close the call. Thank you very much.

Thank you. This concludes the call you may now disconnect.