Good morning, ladies and gentlemen. My name is Tam [ph] and I will be your conference operator today. Welcome to the Gulf Resources 2018 Third 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 would now like to turn the conference over to Ms. Helen Xu. Ma'am you may begin your conference.

Okay. Thank you, operator. Good morning, ladies and gentlemen, and good evening to all of you who are joining us from China and we'd like to welcome all of you to Gulf Resources' third quarter 2018 earnings conference call. 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 his comments for the company's operating results during the Q&A session. I would like to remind you to all of our listeners that in this call, certain management's remarks during the call with contain forward-looking statements information about Gulf Resources operation and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1933 and are subject to the safe harbor created by those rules. Actual results may differ from those discussed today taking to account and now of risk factors, including, but not limited to, the general economic and b ns 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 under the new competitors from the bromine and other oilfields, and power production chemicals and change in technology, the ability to make future bromine asset and various other factors beyond the its control. All forward-looking statements are expressly qualified in this entirety by this precautionary statement and the risk factors detailed with the company's reports filed with the SEC. Gulf Resources assumes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call. Accordingly, our company believes the expectation reflected 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 the company's future performance represents the management's estimates as of today, November 14, 2018. For those of you who 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 website. So, please locate our press release issued early for the details. So, before we start presenting our financial results, Mr. Xiaobin Liu, our CEO would like to make some comments about the past year for our shareholders and employees.

Hello. Good morning, everyone. Thanks for attending Gulf Resources' 2018 third quarter earnings conference call. We cannot imagine a more difficult time for any collaboration. The Chinese government in a mission to improve our environment where one of our shareholders visited at the beginning of the year. He showed me his Apple Watch. The weather section that usually [indiscernible] with highly unhealthy. Weather is highly unhealthy, something really needs to be done and when leaving here note that the air needs to be improved and our citizens and farmers need to be protected from the polluting industries. We agreed with the steps and supported them have been taking few that had not made it any easier for our management team, our company, our employees and even our shareholders. When the government announced its new plan to improve the environment, we had to close all of our bromine, crude salt and chemical operation. We worked very hard to rectify our bromine and crude salt operation and develop plans for our new chemical factory in especially designed industrial pack. Then Shouguang City was hit by one of the worst Typhoon in recent memory. Crude salt plants were flooded, those were destroyed, products were damaged, factories were flooded and so on. Before we could even ask for approval to reopen our facility, we had to clean up the mess and repair the damages. Then we received a notice from the government that three of our factories, bromine factories were to be permanently closed, because they could not find a solution for the waste water discharge and reach the bromine and crude salt coal production papers [ph]. During this time, it would have been easy to discourage. However, our team has been united and highly motivated. Our managers have gone into the field to…

Thank you, Mr. Liu. So, I'll review our business segment one-by-one and financially profit numbers. So firstly, let's look at bromine and crude salt segment. While we have no guarantee by the government, we approved opening of our seven remaining bromine and crude salt factories. We are optimistic enough to increase our cash flows pending on bromine. Our initial estimate for rectification was around $35 million. As of September 30, 2018, we have spent around $28.1 million. We will spend another $7 million in the first quarter of 2018. In addition to the expenditures on rectification we have indicated that we will spend around $8 to $10 million to repay and rebuilding the damages from the flood. We will also spend around $30 million to drill more than 1,000 new wells, roughly more than 2,000 of our older wells are in the need of repair or are producing at less than acceptable levels. These older wells will be scrapped. Now more than 1,000 new wells will allow us to have more efficient production, this will bring the total expenditures in our bromine and crude to around $85 million. We will not be spending this money if we did not think we could get approvals for these factories. Since the end of third quarter 2018, we have signed around five contracts costing $14.6 million, which including $5.9 million to repair the flooded wells, $2.6 million to repay damaged acreage [ph], halogen reserves and $0.2 million for land for the waste water distract channels on Factory No 10, $5.1 million for waste water drainage and treatment for Factories, No 1, No 2 and subdivision of Factory No 1, and $0.81 million waste water drainage and treatment for our Factory No 10. As we have indicated, we will not be signing of these…

Sure. Thank you, Helen. [Operator Instructions] And there are no questions at this time. Presenters you may continue. : :

Hi operator. I think if there is no question can we just close the call for today?

Sure. And this concludes today's presentation. Thank you all for your participation. You may now disconnect.