We recognize the enormous potential of the construction materials industry in China and we are focused on maintaining a leading position as a manufacturer of ceramic tiles in China. Our two decades of experience in this business translate into a deep understanding of the industry dynamics and potential and reinforce our confidence in our future success.
We have benefited from the strength of the Chinese economy, and we were able to deliver strong results for our shareholders, with revenue of $230.7 million and adjusted net income, excluding share-based compensation expenses, of $39.8 million in 2012.
By the beginning of 2012, we completed the expansion of Phase II at Hengdali which represents an additional 20 million square meters of annual productive capacity. This will give us a total of 72 million square meters of annual ceramic tile production capacity, enabling us to continue our growth trajectory.
Going forward, we are optimistic that we can leverage our industry expertise to strengthen our position in the Chinese ceramic tile market and create long-term value for our shareholders.