At 4 a.m., 15 April 2016, the 520,000-tonne urea plant at Fudao Phase I of the Company’s Hainan Base resumed production and delivered output of urea meeting required standards after the completion of the alternative natural gas supply upgrade project 76 days ahead of the original schedule.The Yacheng 13-1 natural gas contract, pursuant to which the supply of natural gas to the Company’s Hainan Fudao Phase I Urea Plant had been conducted, expired in February 2016. In 2014, the Company had decided to use the natural gas produced by the Dongfang 1-1 adjustment project as the alternative source of gas supply for Fudao Phase I Urea Plant to ensure its stable production. As the components of the alternative source of natural gas were significantly different, technological upgrades at Fudao Phase I Urea Plant were required before using the new source of gas for production.The Fudao Phase I Urea Plant upgrade project commenced in September 2015. During the course of the upgrade works, the Company’s Hainan Base conducted stringent audit of relevant designs and formulated detailed construction plans for 24-hour running without intermission. The expedited work progress has resulted in the completion of the upgrade project and resumption of production 76 days ahead of schedule, as well as savings in upgrade costs amounting to over RMB2 million.