China Infrastructure Construction Corporation announces that it has completed relocation of its facility to Daxing County, Beijing from the Yizhuang Economic Development Zone, Beijing. The Company has purchased land in Daxing County, whereas previously the Company was leasing the land on which its facility was located. The Company is in the process of building a new office building at this new location, which will house its headquarters when completed in April of 2012.
"The significance of this relocation for the Company is that at this location, we are within 10 kilometers of the new Beijing Airport, which will reportedly commence construction in mid 2012. This new airport will have capacity of 40 million people per year during the first phase of construction, to be completed by 2015. The total construction project will last for 8 years. With the development of this new airport, the development of the surrounding areas is also well underway. We have invested significant time and capital into this move and are convinced that this relocation will bring the Company increased potential business in the near future."
We needed additional time to re-examine our accounts receivable and as a result were unable to file our quarterly report in a timely manner. After careful consideration, we decided to make the provision for bad debt related to our accounts receivable in the amount of approximately $8.0 million. Notwithstanding that we do intend to collect the respective accounts receivable, we believe it is our obligation to make this provision in our financial statements. We plan to remedy the timely collection of our accounts receivable by increasing our focus on contractual obligations reflecting shorter payment terms and by stepping up our efforts in collecting accounts receivable.
Our growth strategy continues to prove successful, as evidenced by our strong third quarter performance. Our geographic expansion into Xi'an and Tangshan led to robust year-over-year revenue growth. The shift in our business model from only supplying concrete to including manufacturing services and technical services with a higher margin continued to result in improved profitability. With the Chinese government ramping up its efforts to modernize the nation's infrastructure and double-digit industry growth expected over the next several years, we will continue our focus on infrastructure projects such as highways and high speed railway. We believe this focus will put us on strong footing to continue our growth.
Our growth strategy continues to prove successful, as evidenced by our strong second quarter performance. Our geographic expansion into Xi'an and Tangshan led to robust year-over-year revenue growth, while our introduction of higher-margin technical support services resulted in improved profitability. With the Chinese government ramping up its efforts to modernize the nation's infrastructure and double-digit industry growth expected over the next several years, we are upbeat about our growth potential in 2011.