Recent years the reducing number of public works projects has been a very serious situation. We had 380 billion and 360 billion projects in 2009 and 2010, in 2011 we only got 180 billion by the big amount of shrinkage of up to as much as 200 billion. In addition, more un-sold houses has been gradually increasing, which makes the relative reduction of the use in concrete can be expected, not even mention the follow-up addition works will be inevitably shrinking. The reduced Shipments plus the up-price of gravel, cement, oil, tires, etc, our industry is forced to raise a lot of the cost. The current situation is extremely unfavorable to the business.
The requirements of concrete is being able to reach required strength after 28 days of compressive strength in order to satisfy suppliers and construction companies, in any case the price of course is the first consideration, so the ready-mix concrete companies have price competition in order to get orders, which will cause the poor quality and the shortage of quantity. And this is temporary means of the operation, eventually we will be out of the market by running the business in this way.
In the future, I hope to seek the best business strategy through competitive analysis, but also reduce operating costs. As long as we streamline the organization and transformation of the management model, we should be able to get through the crisis, and enhance the industrial competitiveness. Eventually the undesirable industry will be naturally eliminated and the market will back on track.