Good morning, my name is Crystal and I will be your conference operator today. At this time, I would like to welcome everyone to the Gulf Resources 2016 Fourth Quarter and Annual Earnings Conference Call. All lines have been placed on mute to prevent any background noise. And after the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you. I will now turn the conference over to Helen Xu. Please go ahead.

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' fourth quarter and fiscal year 2016 earnings conference call. And we are sorry for the delay to joining this call due to the line problem from China. And my name is Helen, the IR Director. Our CEO of the company Mr. Xiaobin Liu will also join this call today. I will be offering translation for the management’s comments for the company’s operating results. And I would like to remind you, to all our listeners 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 the protection of Safe Harbor for the forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today depending upon a 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 the existing and new competitors for the bromine and other oilfields, agriculture and flame production chemicals and changing technology, the ability to make future bromine asset purchase and various other factors beyond the company’s control. All forward-looking statements are expressly qualified in their entirety by this precautionary statement and the risk factors detailed with the company’s reports filed with the SEC. Accordingly, our company believe that a expectation reflecting in these forward-looking statements are reasonable and there can be no assurance of such will prove to be correct. In addition, any reference to company’s future performance represents the company…

We are continuing to make excellent progress with our natural gas and brine project in Sichuan Province. And we have seen from our press release for the fourth quarter on company Web site, the company had installed all of the media equipment and also begin trial production and begin training its workers. We have applied for the needed operational and safe production certificates in other to begin production. The company has also applied product quality inspection report, after we get this report company will [indiscernible] customers for the natural gas production. Based on everything the company has seen now up-to-date, it believes the natural gas and brine opportunity in Sichuan will be extremely profitable. The current plan is for the company to apply for the permission to begin exploration and drilling of between two and five new wells in year 2017. The costs of these wells will depend on the geographic underground structure in each of the locations of bromine. However, on a conservative basis, company does not expect the average cost of a well approximately $10 million. In addition, we’d like to reiterate that the company approval permission for drilling includes both natural gas and brine resources in to bromine and crude salt. Based on earlier tests, it appears that the concentration of brine is many times higher than the concentration of brine water in Shandong Province. Given the current strong price of bromine and the actions by the Chinese government to limit production for environmental reasons. We believe it could have substantial opportunity for the development and production of bromine in Sichuan Province. We will wait until we have sufficient number of wells drilled before deciding how it will move ahead to develop these brine resources. About the future business comments, we are very optimistic about our future,…

So now I would go back to a discussion on the 2017 guidance. We will provide full 2017 guidance when we report the first quarter 2017 results, however at the present time we are optimistic, we believe that both our bromine and chemical segments should show gains over 2016. We are seeing structural changes in our industries because of government regulations and capital constraints that should restrict competition and lead to better pricing. We also expect to begin producing natural gas at our first well in Sichuan in a relatively short period of time. So, now I would like to open the call to questions. Operator let's start with question-and-answer part.

[Operator Instructions] I'm not showing any questions in queue. Actually, now you do have a question. It comes from the line of John Wells [ph].

Two question. The volume in both your major businesses seem to have decreased in the fourth quarter of 2016. Is the volume of sales being experienced in the current quarter higher than that of the first quarter of 2016?

Hi, John I just want to make clear of your question, do you mean 2016, as compared to 2016 quarter fourth and the 2017 first quarter the volume of both segments had been increased/decreased, right?

Your volume decreased in both the bromine and chemical sectors in the fourth quarter of 2016, you stated some grounds for optimism in the current quarter, the first quarter of 2017, and my question is, is the volume in the first quarter of 2017 higher than that of the corresponding first quarter of 2016?

Do you mean all segments, or just for chemicals?

Bromine and chemical.

[Foreign Language]

[Foreign Language]

Hi, John here is answer from Mr. Liu, he said that, and if you note, it's not [indiscernible] 2017 first quarter clearly financial results yet, but from the trend up to date we can see that the volume, setting volume of bromine and chemical segment will be higher than the first quarter of 2016.

How about compared to the first quarter of 2016?

First quarter 2016, [Multiple Speaker], hello hi John.

I want to make sure the volume of sales we’ve experience in the current quarter is higher than that of the same quarter of last year.

[Foreign Language].

[Foreign Language]

Hi John, so as compared to the '16 first quarter and first quarter of '17 from now the thing that we can see the bromine will be higher than last year in terms of revenue and volume. But chemical situation is not clear yet; we're doing to best to increase it.

Okay thank you, my other question has to do with the wells, when do you expect revenues from natural gas from your first well to begin. And what is the schedule for installing the 2017 wells, [indiscernible] transition to operations.

[Foreign Language].

[Foreign Language]

Hi John, first regarding your first question of the -- first well when it contribute to revenue. We have explained in our press release and this call as well. The company has applied to the natural gas products quality inspection report. Once we have this report than we can show customer and then we will be able to secure customer and sign the formal selling -- sales agreement. So it can generate revenue. We believe this won’t be long maybe approximately within amount, we can have this done. [Foreign Language]

[Foreign Language]

Okay. Regarding the 2017, new wells spent. We also have discussed before in our press release previously that. We say that the company will start the next step for this new well within half a year since the formal production of the first well started.

Okay. Thank you.

Okay. Thank you. You’re welcome.

Your next question comes from the line of Joe Ski [ph].

Yes. So I’m just wondering, so a company, are you planning on doing any buyback, any buying [indiscernible]?

Is this the question? Thank you. [Foreign Language]

[Foreign Language]

Hi Joe, the response from Mr. Liu says that until now we do not have clearly expected plan yet for this buyback.

Okay. Thank you.

At this time, there are no further questions.

Okay. Operator, if there is no questions can we close the call for today. Thank you.