Ms. Zhang: Let me spend a few minutes to give you an overview of our company. Our CEO, Mr. Wu Jianhua, founded the Huayang Companies in 1995. And the company went public through a reverse merger transaction in November 2007, at which time it changed its name to China Wind Systems and we launched our wind energy business, supplying forged rolled rings to the wind power industry in 2007. On the 28 of December 2009, China Wind Systems was approved to list on the Nasdaq Global Market. As you may be aware, over the past five years, there has been tremendous growth in the Chinese wind power industry, which now represents a US$23 billion market. We manufacture forged rolled rings used in flanges, gear rims, yaw bearings and shafts. With our 40,000 tons of production capacity, we have the ability to produce a larger size of forged rolled rings, up to 6.3 meters in diameter, and the shaft for use in 1-megawatt to 3-megawatt wind turbine units. Also since 2007, China Wind Systems has been focusing on investments in advanced technologies. We employ axial closed-die forging technology to produce high-precision forgings, which can reduce the material consumption by 35%, leading to high-precision surface flatness, excellent material strength, high flexibility and a full automatic operation. In October 2009, we commenced construction of our electroslag remelted (ESR) forging production line, which started production in March 2010. We are confident that the addition of high-precision forged rolled rings to our product portfolio will increase our competitiveness in the wind power components market.
Also we already have established a growing national network of satisfied customers. In the end of 2009, China Wind Systems signed a preliminary agreement with Shanghai Jing An Metal Materials Company to supply 12,000 tons of ESR forging products from 2010 to 2012. Also we are currently in discussions with a number of potential customers, and we are confident to get more orders for our forging products in the coming months. Certainly, we have a geographic advantage. Wuxi is located in the central point of the Eastern Corridor Wind Resource area and also conveniently accessible by all types of transportation, which is a cost-saving advantage as well. Our 15 years of manufacturing experience in high-precision industrial equipment and manufacturing expertise is highly transferable and relevant to the wind power industry.
All these advantages were reflected in our financial results. In 2007 we had only 7.8% of revenue come from sales of forged rolled rings for use in the wind power industry and other industries. In 2008 the revenue from sales of forged rolled rings increased to 41% of total revenue. In 2009 the revenue from sale of wind energy components exceeded 40% of total full-year revenues and exceeded 52% of total revenues for the fourth quarter. As a key player, we will keep promoting technological production progress and low internal cost through market competition. We believe we are well positioned to become a leading wind component supplier in the years to come.
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