Due to the lower demand of bromine as influenced by continuing macroeconomic tightening policy imposed by the Chinese government, the average selling price of bromine decreased from $4,596 per tonne for the first quarter in 2011 to $3,569 per tonne for the same period this year, with stable cost of raw material and increasing cost of labor, we reported significantly lower operating performance in this quarter in comparison to the same period of last year.
Although the potential benefit of our recently acquired manufacturing capacity and upgrades on production efficiency was not positively reflected in our operating results in this quarter, we believe that the company in the long run will benefit from exploration and acquisition of businesses with proven reserve and cooperation with overseas large-scale bromine manufacturers in the same sector with sophisticated manufacturing technology. Therefore, we intend to retain our cash for potential attractive opportunities of future expansion of our bromine and crude salt businesses that can enable the company to achieve long term sustainable growth.
Based on the current business outlook, the Company estimates that bromine prices, a factor with a large impact on the Company's operating performance, will fluctuate between a range of RMB23,150 per tonne and RMB30,000 per tonne in fiscal year 2012. Given anticipated bromine price levels, the Company forecasts total revenue to range between $114.7 million and $147.3 million, and net income to range between $16.8 million and $30.5 million in fiscal year 2012. The above forecast does not take into account the potential effect on net income resulting from expenses that may arise from potential drilling expenditures in 2012 for further testing and exploration of underground bromine water resources in Daying County, Sichuan Province.
"Although we expect bromine prices to stay relatively constant and stable in fiscal year 2012 due to the continued slowdown of the economy in China, we believe the strategy of exploring more brine water resources and obtaining bromine assets through acquisitions will enable us to achieve long term growth in the future. We have sufficient cash flow for our operating activities and will continue to look for attractive acquisition targets."
The continuing influence of macroeconomic tightening policies in China resulted in weakened market demand for a number of our products in the fourth quarter of the year. The quarter's operating environment was especially difficult compared to the same period in 2010 as the average selling prices of both bromine and crude salt decreased. Despite slowing economic growth in the domestic market, we now expect the prices for bromine and crude salt to stay relatively stable with only minor volatility throughout the year in 2012.
With the completion of equipment upgrades and improvements carried out in 2011, we expect that the problem of aging equipment will be solved and that this will facilitate enhanced bromine extraction from brine water with lowered concentrations in the Shandong area. Factory No. 4 completed its relocation by the end of 2011 and began production in late November. We anticipate our bromine production capacity to gradually recover to the same levels of a year ago. We will also focus on exploring quality underground brine resources and to form cooperation opportunities in Daying County in Sichuan Province.