We have devoted substantial resources to establishing research and development capabilities in an effort to improve our products and diversify our product mix. As of December 31, 2012, we own 4 utility model patents and have exclusive right to use 11 design patents. In addition, we were awarded a ¡°High-tech Enterprise Certificate¡± in 2007 from Fujian Provincial Department of Science and Technology, affirming its innovations in the industry. Our R&D team focuses on new products as well as developing energy and resource efficient production methods. As of December 31, 2012, the team has 82 persons and developed over 2,000 types of different product combinations. We focus on environmentally friendly products like ultra thin, light weight tiles and developed the energy recycling system for re-using excess heat and energy in production to save up to 20% of cost.
Through our efforts in research and development, we believe that we are well positioned to further expand our market share and widen our customer base by continuing to develop technological advances in anticipation of, or in response to, customer requirements and evolving government standards.