In October 2010, the Company paid RMB 63,442,960 to the Managing Committee of China Yixing Industrial Park for Environmental Science & Technology, a government organization, in advance to acquire the land use right on a piece of land of approximately 151,040 square meters in Yixing, Jiangsu province of the PRC. The Company plans to establish an operating facility in the area for the manufacture and sale of bilmetallic wire products in Southeast China. As of September 30, 2012, the Company has not obtained the title to the land use right because the administrative procedures, including obtaining governmental approvals, have not been completed. The prepayment was recorded in deposits for land use right in the consolidated balance sheets as of September 30, 2012 and December 31, 2011 and will be reclassified to land use rights once the Company obtains the title to the land use right. The Company believes that the deposits will be refunded or used as payment for another equivalent piece of land if the title to the land use right cannot be obtained.