The resolution of capitalization of capital reserves passed by the company’s general meeting of shareholders was implemented in June 2013. Based on the 45 million shares of the company’s total capital as of December 31, 2102, 1 share for every 3 shares, a total of 15 million . The other four internal employees of the company increased their registered capital by increasing the capital by 200,000 yuan. After the capital increase, the company's total share capital was 60.2 million yuan. The industrial and commercial registration was completed on July 1, 2013.