Xiwang Special Steel Company Limited reported audited consolidated cash flow results for the fiscal year ended December 31, 2011. For the period, the company reported net cash flows from operating activities of RMB 1,568,475,000 against RMB 111,072,000 a year ago. Purchases of items of property, plant and equipment was RMB 1,276,527,000 against RMB 1,023,212,000 a year ago. The company reported that its Bar III has begun trial operation in November 2011, and is expected to begin commercial operation around the end of the first quarter of 2012. The company's Bar III will produce large bar special steel (cross sectional diameters ranging from 100 to 350 millimeters) including bearing steel bars, spring steel bars and gear steel bars. With the commercial production of Bar III, the company expects the revenue contribution of the company's special steel will increase going forward. The company's expansion plan is the construction of high-duty alloy pipe production line. The annual production capacity of this line is expected to be 500,000 tonnes. Alloy pipes can endure corrosion and pressure, which are used to make boiler pipes, oil well drill pipes and many other chemical-resistant pipes. The company expects this line will begin production by the end of 2013. The capital expenditure for this line will be approximately RMB 1.24 billion, which will be satisfied by the net proceeds from the IPO and the Group's internal cash flow.