Our process automation contracts continue to grow in average size and the need for our systems is trending toward the energy sector, more specifically, clean energy. HollySys automation control system for power plants makes power production from coal fired plants more efficient and cost-effective, increases the amount of power generated from each unit of coal, while simultaneously reducing emissions. We continue to focus our efforts on high growth opportunities in this business segment, and are pursuing a strategic alliance with a major PRC energy group to offer exclusive automation control products and services for their power plants.

We expect to see a larger number of projects stemming from growth in environmentally friendly markets, such as wind, automated emission control devices in manufacturing, garbage power generation, and straw combustion power. In addition, we are also focused on providing control systems to the rapidly expanding alternative energy market, including wind and biomass, and are pursuing alliance with a leading wind energy company in China to provide automation controls for their wind turbines exclusively.

We are working towards enlarging our customer base, including extending and broadening the technological applications available to each individual customer, which we feel will widen our potential revenue stream and increase market share. In addition, our management will continue to analyze and improve our operational efficiency and enhance margin improvement.

The control system and product portfolio that we offer ranges from Distributed Control Systems (DCS) and Programmable Logic Controllers (PLC) to Industrial Management Software solutions to meet your entire plant automation needs from Manufacturing Execution System (MES) to Enterprise Resource Planning (ERP).