Jiangsu Shentong Valve Co., Ltd.

2012 Social Responsibility Report

Preface

"Jiangsu Shentong Valve Co., Ltd. 2012 Social Responsibility Report" is the second social responsibility report issued by Jiangsu Shentong Valve Co., Ltd. (hereinafter referred to as the "Company" or "Company"). The time span of this report is January 2012. From 1st to December 31st, 2012, it truly and objectively reflected the important information of the company in fulfilling its social responsibilities in its operation and management activities, and interpreted the company's knowledge and understanding of corporate social responsibility from all aspects. As a member of the society, the company actively assumes and fulfills its social responsibilities, abides by laws and administrative regulations, abides by social ethics and business ethics, is honest and trustworthy, and accepts the supervision of the government and the public in the course of its business management activities. This report is the embodiment of the company's conscious action to integrate social responsibility into the company's development strategy and management, and participate in the construction of a harmonious socialist society.

As a backbone enterprise in China's valve industry, in 2012, the company continued to take "serving the country by industry and benefiting mankind" as its corporate mission in 2012, adhering to the development strategy goal of "learning, surpassing, leading, and creating a century-old magical power", and "people without me, people The new product development policy of "I have the best, the others are the best, the others are cheap, and the others are cheap", adhering to the market strategy of "high-tech, high-end products serving high-end customers", and insisting on "consolidating metallurgy, developing nuclear power, expanding petrochemicals, and serving energy" Market positioning and the innovative service concept of “creating value for users, creating opportunities for employees, creating returns for shareholders, and creating wealth for society” are committed to achieving sustainable development of the company, creating shareholder value, and protecting shareholders’ rights. The harmonious development of the country and society, the balance of natural environment and resources, employees, customers, suppliers and other stakeholders also assume corresponding responsibilities, which promotes the comprehensive, natural and coordinated development of the company and society.

We hope that the public will have a deeper understanding and awareness of all aspects of the company through this report. At the same time, as a listed company, we also hope to accept supervision and suggestions from all aspects of society to promote the company's future development. Better, contribute to social harmony and prosperity.

"Jiangsu Shentong Valve Co., Ltd. 2012 Social Responsibility Report" was prepared in accordance with the "Guidelines for Social Responsibility of Listed Companies on the Shenzhen Stock Exchange", the "Company Law" and other relevant regulations, combined with the company's actual situation in fulfilling social responsibilities. Deliberated and approved at the 26th meeting of the second board of directors.

We would like to publish the relevant information of the company's social responsibility business activities uniformly through the information disclosure website designated by the Shenzhen Stock Exchange (www.cninfo.com.cn).

Chapter One Company Basic Information

Jiangsu Shentong Valve Co., Ltd. was established in January 2001 and listed on the Shenzhen Stock Exchange in June 2010 (stock abbreviation "Jiangsu Shentong", stock code "002438"), with a registered capital of 208 million yuan. The company is currently a high-tech enterprise recognized by the Ministry of Science and Technology, the vice chairman unit of the China Valve Industry Association, the leader unit of the butterfly valve working group of the National Valve Standardization Technical Committee, a member factory of the Baosteel Equipment and Spare Parts Joint Development and Supply Center, an innovative pilot enterprise in Jiangsu Province, and Jiangsu One of the top 100 private technology enterprises in the province, a demonstration enterprise for energy conservation and emission reduction and a demonstration enterprise for intellectual property management standardization in Jiangsu Province. The company is mainly engaged in blast furnace gas all-dry dust removal systems, converter gas dust removal and recovery systems, coke oven flue gas dust removal systems, special valves for gas pipe network systems, and nuclear-grade butterfly valves and nuclear-grade ball valves used in nuclear power plants. R&D, production and sales of non-nuclear butterfly valves, non-nuclear ball valves and other products.

The management of the company leads all cadres and employees to innovate with integrity and strive for perfection. Since the establishment of the company, it has been committed to the localization of metallurgical special valves and nuclear-grade valves for pressurized water reactor nuclear power plants. It has been achieved through the introduction, digestion, absorption and re-innovation of the work ideas The comprehensive localization of nuclear-grade butterfly valves and ball valves has become the main supplier of nuclear-grade butterfly valves and ball valves in China. In 2012, under the continuous influence of the international financial crisis, the company’s management team, in accordance with the annual development goals and strategic plans determined by the board of directors, pioneered and innovated, made decisive decisions, and proposed the operation of “consolidating metallurgy, developing nuclear power, entering petrochemicals, and serving energy”. Ideas, to consolidate the market position of metallurgical special valves, take measures to actively respond to the new situation of the country’s nuclear power development, track the development direction of new nuclear power technologies, increase R&D investment, and develop high-parameter, high-safety, and third-generation nuclear power technologies Nuclear power equipment required by the AP1000 standard to cope with the impact and changes brought about by the development of China's nuclear power technology. At the same time, the company also seized the favorable opportunity to carry out special valve technology research in the fields of petroleum and petrochemical, ultra (super) critical thermal power unit, coal chemical industry, LNG special cryogenic valve, etc., and focused on the core technology and products in the field of metallurgy and nuclear power. Experience in technology research and development and innovation, and actively apply to other fields, expand product application areas, improve business performance, and further enhance the company's ability to resist business risks.

Through the joint efforts of all the cadres and employees of the company for many years, the "Shentong" brand has become a well-known brand in the industry, and the company's high-quality products have been universally praised by users in the industry. In 2012, the company achieved operating income of RMB 445.78 million, an increase of 18.02% year-on-year, and realized a net profit of RMB 65,504,500, an increase of 27.79% year-on-year.

The company adheres to the market and customer needs as the leading direction of new technology and new product research and development, and realizes continuous technological innovation and product upgrades through continuous increase in investment; establishes "or do not do it, do it, we must do the best" quality Philosophy; to form the business goal of "manufacturing first-class products, training first-class talents, and creating first-class enterprises". In the process of enterprise growth, the business philosophy with supernatural powers continuously guides the enterprise and all employees and becomes the spiritual pillar of the enterprise's sustainable and stable development. The corporate culture of "Supernatural power is a factory, which must produce good products; supernatural power is a school, which must produce good talents; supernatural power is a family, and we must care for each other" corporate culture has become the common spiritual strength and value positioning of all supernatural powers.

Chapter II Protection of the Rights and Interests of Shareholders and Creditors

During the reporting period, the company continuously improved its governance structure, standardized company operations, strengthened information disclosure management and investor relationship management, and fully protected the legitimate rights and interests of all shareholders, especially small and medium shareholders and creditors.

1. Continuously improve the corporate governance structure and safeguard the interests of investors

Since its listing, the company’s corporate governance structure has become increasingly perfect, the system has been continuously improved, and a complete set of checks and balances and effective internal management and control systems have been formed. The company has consciously carried out governance activities in depth, and through comprehensive self-examinations, it has been discovered in a timely manner in the corporate governance process Existing shortcomings, analyze the reasons and actively rectify and reform, in order to lay a solid foundation, improve the level of corporate governance, and effectively protect the legitimate rights and interests of all shareholders, especially small and medium shareholders and creditors. In 2012, the company continued to promote system construction, further revised the "Articles of Association", and formulated the "Shareholder Return Plan for the Next Three Years (2012-2014)" to further guarantee and clarify the arrangements for shareholder returns from the institutional level, and further improve The company’s internal control system.

During the reporting period, the operation of the “three meetings” of the general meeting of shareholders, the board of directors, and the board of supervisors was continuously regulated. The previous board of directors and the board of supervisors were organized in strict accordance with regulations, and qualified lawyers were hired to witness the convening of the general meeting. At the same time, the company actively organizes directors, supervisors and senior management personnel to participate in various trainings organized by the Shenzhen Stock Exchange, the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission and the sponsors to improve the awareness of standardized operation and standardized management, and strengthen the elimination of illegal occupation of funds and illegal guarantees And other behaviors, better fulfill the job responsibilities of planning corporate governance and protecting the interests of investors.

2. Strictly fulfill the obligation of information disclosure and establish good investor relations

During the reporting period, the company attached great importance to information disclosure, strictly implemented relevant management systems for information disclosure, and adhered to the principles of openness, fairness, and impartiality in information disclosure to ensure that information disclosure was true, complete, accurate, and timely, and there was no selectivity Information disclosure activities ensure that shareholders have the right to know the company’s major events and operating conditions. The company formulated and strictly implemented the "Information Disclosure Affairs Management System", "Annual Report Information Disclosure Responsibility System for Major Mistakes" and "Investor Relations Management System". The office of the board of directors is responsible for information disclosure affairs management and investor relations. At the same time, the company has established an effective communication channel with investors, set up a dedicated telephone line and a dedicated mailbox to accept investor inquiries, the company’s website has an investor relations column, and at the same time, a dedicated staff is arranged to take charge of investors’ questions on the "Interactive" platform. Answer, interact with investors, investors can learn about the company from multiple channels.

In 2012, the company disclosed a total of 38 periodic reports and temporary announcements in accordance with regulations, so that investors can understand the company’s operating conditions in a timely and comprehensive manner. After the announcement of the 2011 annual report, the company also held a 2011 online performance briefing. The chairman of the company Mr. Wu Jianxin, President Ms. Zhang Yifang, Independent Director Mr. Sun Zhiwen, Vice President and Secretary of the Board of Directors Mr. Zhang Qiqiang, Securities Affairs Representative Ms. Chen Mingdi, Chief Financial Officer Ms. Wang Fei Fei, Audit Manager Mr. Hong Xuechao, and Huatai United Securities Co., Ltd. Sponsor Representative Mr. Ji Ping Participated in this performance briefing. At the briefing, the directors and executives of the company gave detailed answers to questions raised by investors.

3. The company formulates an active dividend policy to ensure a stable return on investment for shareholders

The company has formulated a clear profit distribution policy and revised the "Articles of Association" to adhere to the principle of rewarding shareholders while maintaining steady economic growth. During the reporting period, according to the China Securities Regulatory Commission's "Notice on Further Implementing Issues Concerning Cash Dividends of Listed Companies" (Zheng Jianfa [2012] No. 37) and the China Securities Regulatory Commission's "Notice on Further Implementing the Requirements for Cash Dividends of Listed Companies" "(Suzhengjian Company Zi [2012] No.276) document requirements, the company formulated the "Shareholder Return Plan for the Next Three Years (2012-2014)", and made relevant provisions concerning profit distribution in the "Articles of Association" Revised and formulated the "Shareholder Return Plan for the Next Three Years (2012-2014)". The revised profit distribution policy, standard and ratio are clear and clear, and the conditions and procedures for adjustment or change of the profit distribution policy are compliant and transparent, which fully protects the legitimate rights and interests of small and medium investors.

The company's cash dividend distribution in the last three years is as follows:

Unit: ten thousand yuan

Profit distribution plan for 2012: Based on the total share capital of 208,000,000 shares after the Shenzhen Stock Exchange closed on December 31, 2012, a cash dividend of RMB 0.50 (tax included) will be distributed to all shareholders for every 10 shares, for a total cash dividend of RMB 10,400,000.00. In 2012, the company did not convert capital reserve into share capital. The proposal will be implemented after it has been reviewed and approved by the 2012 Annual General Meeting of Shareholders.

Chapter III Protection of Employees' Rights and Interests

The company regards employees as the company’s most precious resource, and constantly improves the company’s employment mechanism. It uses multiple channels and channels to improve the working environment and salary of employees, so as to stimulate the enthusiasm and creativity of each employee and provide employees with sustainable Opportunities and space for development to effectively safeguard the legitimate rights and interests of employees.

1. The company strictly abides by the "Labor Law", "Labor Contract Law" and other relevant laws and regulations, and protects the legitimate rights and interests of employees in accordance with the law. During the reporting period, we further revised and improved the related management systems for labor employment and welfare security; adjusted the work and rest time according to the actual situation of the company according to the actual situation of the company; signed a "labor contract" with all employees, clarifying the rights and interests of employees and the obligations they should perform. Strictly implement the relevant national social insurance regulations, pay housing accumulation funds, apply for social insurance such as endowment insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance, etc., pay all insurance expenses in full and on time every month, and in accordance with relevant regulations of the labor department Handle labor contracts, social insurance and other related procedures for newly hired and resigned employees to ensure that employees enjoy social insurance benefits, so that employees can receive timely help and compensation in the case of pension, illness, work injury, unemployment, childbirth, etc., and implement paid Annual leave and other benefits enable employees to work and seek development in a fair and just environment.

2. The company attaches great importance to safe production, abides by national laws and regulations, and actively promotes safe production management. The company has passed GB/T 19001-2008/ ISO9001: 2008 quality management system certification, GB/T 24001-2004 / ISO 14001: 2004 environmental management system certification, and GB/T28001-2001 occupational health and safety management system certification. The company always puts the safety of employees in the first place, firmly establishes the idea of ​​"safe production responsibility is more important than Mount Tai", and equips employees with necessary labor protection supplies and protective facilities for different positions. The safety supervision department regularly monitors the company's production safety Carry out a comprehensive investigation, and find hidden dangers in a timely manner, eliminate hidden dangers, and ensure safe production through regular safety production work meetings held every month.

3. The company always adheres to the people-oriented principle and pays attention to the health of employees. The company regularly organizes all employees to conduct physical examinations and re-examinations if problems are found; measures are taken to prevent heatstroke in summer. As the new employee dormitories are put into use, the staff stayed in spacious rooms, and the company installed them in every dormitory. Air conditioners, televisions and water heaters have greatly improved the living conditions of employees.

Fourth, the company establishes a reasonable salary plan and a sound performance appraisal method. Pay employees’ wages in full and on time each month, and plan to increase employee wages and benefits. In the context of rising social prices, increase employee food subsidies to solve employees’ worries and reduce the pressure on life caused by rising prices. At the same time, the company also uses "labor competition" and "skill competition" to improve the technical level and income level of employees.

5. Strengthen employee training and career planning, actively carry out induction training for new employees, and regularly carry out various skills training. In 2012, according to the company's annual training goals and requirements, various training tasks were completed one after another. A total of 129 internal and external trainings including management knowledge, technology, entry, business knowledge, quality assurance system knowledge, safety production, job skills, and personnel qualification acquisition were organized throughout the year, with 3434 participants. In 2013, according to the company's 2013 annual training plan and external third-party certification requirements, we will continue to formulate monthly training work plans in a timely manner and organize various internal and external trainings to continuously improve the quality of all employees and enhance the company's competitiveness.

6. The company attaches great importance to strengthening communication and exchanges with employees. It holds regular birthday seminars for employees, establishes internal publications "Shen Feng Cai" and "Shen Tong Network Forum", opens the company website and OA automated office system, etc., and establishes communication between the company and employees. The bridge makes it an important platform for the company to exchange experience, report information, display achievements, commend advanced and boost morale.

Seven. Carry out various cultural and entertainment activities to enrich the leisure cultural life of employees. The company is equipped with staff entertainment venues, such as the book reading room, table tennis room, basketball court, etc. The company’s labor union actively organizes various activities during holidays, such as singing competitions, essay competitions, table tennis matches, basketball games, etc., and holds monthly birthday seminars, so that employees can experience the warmth of the company’s big family, and enhance their cohesion and teamwork. A sense of cooperation and a sense of collective honor. At the same time, activities such as the 2013 Spring Festival Gala and Shanghai one-day tour were held to enhance the morale of employees and enhance their cohesion and centripetal force while entertaining.

8. Caring for employees and helping the poor. The company distributes condolences and gifts to all employees during Spring Festival, Dragon Boat Festival, Mid-Autumn Festival and other festivals, bringing the warmth of the company into the hearts of employees.

Chapter IV Protection of the Rights and Interests of Suppliers, Customers and Consumers

As a member of society, the company has always adhered to honest cooperation and common development with suppliers and customers, and fully respects and protects the legitimate rights and interests of suppliers and customers. Especially since its listing, the company’s management has proposed the construction of "six satisfaction projects" "The goal is to: create value for customers and satisfy customers; achieve progress for suppliers and satisfy suppliers; create opportunities for employees and satisfy employees; create taxes for the government and satisfy the government; create wealth for the society and let the Social satisfaction; create returns for shareholders and satisfy shareholders. Build a respected listed company and promote its sustainable, stable and healthy development.

Based on the principle of win-win cooperation and common progress with suppliers, the company adheres to the policy of "professional production and social collaboration", is honest and trustworthy, and achieves development and progress for suppliers; fully respects the legitimate rights and interests of suppliers and strictly protects the supply The company’s secret information and proprietary information; maintain a long-term good cooperative relationship with it to promote win-win cooperation and development. Normally, it attaches great importance to communication with suppliers, holding a supplier product quality meeting every quarter and an annual supplier summary meeting. The company has formulated a supplier management system and stipulated the evaluation criteria for suppliers, including the supplier’s corporate environment, management level, technical quality, product quality, logistics and transportation, etc., based on the comprehensive evaluation of suppliers, at the annual supplier meeting Carry out grading assessment of all suppliers and encourage supplier development and progress. Implement dynamic management of suppliers, promote healthy competition between suppliers, and promote suppliers to continuously improve product quality and service quality, and achieve common progress.

While providing customers with high-quality products, the company proactively provides services to customers and is anxious for what customers need. Collect customer opinions through regular customer return visits, issue "Customer Satisfaction Survey Questionnaire" and other channels to understand customer needs and opinions in a timely manner. At the end of each year, the company conducts customer satisfaction survey activities for all customers, using a weighted calculation method , Derive customer satisfaction as an important basis for annual management review and service improvement.

In terms of marketing, the company wins the trust of customers by providing customers with high-quality products, operates with integrity, and eliminates improper transactions that violate business ethics and market rules and affect fair competition, and promote the company's continuous, stable and healthy development. The company's sales staff regularly visit customers and listen to their suggestions and opinions. The company has also set up comprehensive after-sales service measures, set up service departments and staffed professionals to provide quality services to customers, ensure customer satisfaction, and strive to create a harmonious customer relationship.

Chapter 5 Environmental Protection and Sustainable Development

The company has always attached great importance to environmental protection and pollution prevention, actively responding to the country’s call for building an environment-friendly and resource-saving society, performing corporate environmental protection responsibilities, strictly complying with national environmental protection laws and regulations, and formulating a complete set Environmental protection management system and an emergency plan for environmental risks have been formulated to prevent environmental risks. The company conscientiously implements pollution prevention and pollution prevention systems, and strictly implements the "three simultaneous" system of simultaneous design, simultaneous construction, and simultaneous operation of the main project. There has not been any environmental violation in the past three years, and has not been punished by the environmental protection department. Pay sewage charges in full on time.

The company is a machinery manufacturing enterprise. The main pollutants discharged in the daily production process are mechanical noise, welding dust, iron filings and solid waste, domestic wastewater, etc. The company strictly follows the requirements of the management system and discharges all pollutants up to the standard. All applied for the Qidong Environmental Monitoring Station to evaluate the three indicators of dust, noise, and wastewater in the plant area, and the evaluation results all met the indicator requirements set by the state. The company has obtained the ISO/14000 environmental management system certification on June 23, 2006, and passed the review in 2011.

The company has continuously increased its investment in environmental protection since its listing. Through the purchase of bag dust removal and sandblasting machines, environmentally friendly coating production lines and other equipment, the air pollution caused by dust and paint has been greatly reduced, and production efficiency has also been improved. In addition, in order to further beautify the plant environment, the company has also cultivated a large number of seedlings, Flowers create a comfortable working environment for employees.

The company vigorously promotes circular economy and strengthens comprehensive utilization of resources. In the process of implementing fund-raising projects in 2012, the company used the concept of cleaner production, focused on the characteristics of nuclear power product process, concentrated scientific research personnel, through public bidding, adopted advanced technology and cleaner production technology, realized the nuclear power ball valve workshop The purpose of cleaner production is to improve the working environment of employees and increase labor production efficiency. For two consecutive years, it has received financial support from the local government’s "Energy Conservation and Circular Economy Key Project Program". In 2012, it received a total of 40,000 government special awards for cleaner production. yuan.

Chapter VI Work Safety and Occupational Health

"If there is no safety, there is nothing." Safe production is the prerequisite and foundation for the survival and development of an enterprise, a reliable guarantee for the enterprise to achieve benefits, the greatest welfare of employees, and the greatest social responsibility of the enterprise. The company attaches great importance to safety production management, has set up a safety supervision department to be responsible for the company's safety production, and fully implements the leadership responsibility system. All departments and teams have signed the safety production responsibility certificate with clear responsibilities and assigned personnel. The full-time safety production management department-the Safety Supervision Department is responsible for the safety knowledge training and the three-level education of safety production, and continuously improve the safety awareness of all employees. The company passed the GB/T28001-2001 occupational health and safety management system certification in June 2010.

In order to implement on-site safety production management with high standards and strict requirements, the company has hired professional intermediary agencies to provide the company with guidance on safety production management and standardized consulting services, which greatly improved the company’s safety production management capabilities. For potential safety hazards, the Work Safety Supervision Department organizes relevant departments to formulate rectification plans and implement them conscientiously. The rewards and punishments are clearly defined to improve the effect of review and rectification. The company's human resources department has implemented special training to improve the safety risk identification and assessment capabilities of key positions. Each business department of the company carefully sorted out the various risks in the production process and operation process, and improved the process safety technical regulations, safe operation instructions and various accident emergency plans on this basis, and further improved the risk identification ability of employees.

In 2012, the Safety Supervision Department organized company employees to conduct safety regulations and safety knowledge questions and answers. The number of participants was 685. More than 110 copies of safety production publicity pictures, more than 30 publicity slogans (banners) were posted, and more than 60 safety warning signs in hazardous areas were set up; Organize employees to participate in fire fighting and first aid drills for the wounded. Strengthen production safety inspections and assessments, adhere to no less than 2 on-site inspections per day, and keep records; for safety accidents caused by violations of rules and regulations, the company adheres to the "four do not let go" principle and is responsible for accidents People report and punish them in accordance with the regulations.

The company earnestly carried out employee occupational health education and prevention work. Continuously improve the working conditions and working environment of employees by increasing investment, and implement occupational protection measures for toxic, hazardous, dust, noise and other workplaces. Carry out daily monitoring and regular inspection and evaluation of occupational hazards to ensure that the workplace meets the requirements of occupational health environment and conditions; implement the occupational hazard notification system, set up warning signs and warning instructions; regularly conduct occupational health inspections for employees, and improve occupational health monitoring file. In the process of the construction of safety production standardization, the company manages the company's safety production management system according to the PDCA cycle model, and pays attention to the continuous improvement of safety production management. Through hard work, it successfully passed the safety production standardization of machinery manufacturing enterprises in September 2012 Acceptance of third-level enterprises. In 2013, the company will continue to improve the company's safety production performance, enhance the safety production management level, truly achieve continuous improvement, and strive to achieve the company's safety production standardization second-level enterprise implementation task.

Chapter 7 Public Relations and Social Welfare

The development of enterprise comes from the society, and it is the responsibility of the enterprise to give back to the society. As a member of society, taking into account the interests of the company, shareholders and other related parties, actively participate in social welfare undertakings, use its own development influence and drive the revitalization of the local economy, and organically integrate the pursuit of profits and the assumption of social responsibilities. Give back to the society with love and actively participate in and support social welfare activities. Such as fighting against natural disasters, supporting public welfare and charity, education, and advocating all employees of the company to actively participate with gratitude and dedicate their love.

1. The company proactively communicates and contacts with government authorities, industry associations, and regulatory agencies, and actively cooperates and assists in law enforcement supervision, inspections, inspection visits, etc. of relevant higher-level departments, does a good job in reception, and performs its own Responsibilities and obligations.

2. The company actively participates in social welfare undertakings. In 2012, a total of 1.03 million yuan was donated to the Qidong Charity Foundation, which sent warmth to the disadvantaged and needy people in society.

As a professional supplier and service provider of special valves, the company will continue to expand its market share with specialized production and continuous innovation capabilities, and is committed to providing high-quality and serialized valve solutions to global customers, and continuing to create maximum value for customers , To keep customers satisfied; grow up with our partners, take on the responsibilities entrusted by society, and fulfill more social obligations.

In 2013, the company will continue to improve in fulfilling its social responsibilities, with reference to the relevant provisions of the "Guidelines for Social Responsibility of Listed Companies on the Shenzhen Stock Exchange", and make continuous efforts to focus on improvements in social responsibility system construction and supervision system construction, and further improve corporate social responsibility Supervise and manage the system, observe social ethics and business ethics, accept the supervision of the public, actively protect the legal rights of creditors and employees while pursuing economic benefits and protecting the rights and interests of shareholders, treat suppliers and customers with integrity and fairness, and actively protect the environment And other public welfare undertakings, strengthen the training and education of employees’ social responsibility, thereby promoting the companyCoordinated development with society, the environment and related interest groups, creates new wealth for shareholders, employees, customers, and society, and promotes the coordinated and harmonious development of the company and society.

In the past year, the company's development has faced opportunities and challenges. Through the cooperation with friends from all walks of life and the joint efforts of all employees, the company has achieved good operating results. I would like to thank government departments at all levels, our customers, suppliers and friends, people from all walks of life and investors for their strong support and love to the company. In 2013, the company will further implement the "Guidelines for Social Responsibility of Listed Companies on the Shenzhen Stock Exchange", continuously improve the corporate social responsibility management system, and implement corporate social responsibility throughout all aspects of corporate operation and management, and consciously accept the supervision of the government and the public , To achieve the harmonious development of enterprises and society. People from all walks of life and investors are welcome to provide valuable opinions on this report to help the company continue to improve in fulfilling its social responsibilities. We will listen carefully to your feedback and express our heartfelt thanks.

Our contact information:

Department: Office of the Secretary of the Board of Directors of Jiangsu Shentong Valve Co., Ltd.

Address: No. 88, Xiexing North Street, Nanyang Town, Qidong City, Jiangsu Province

Tel: 0513-83335899

Fax: 0513-83335998

Email: zhangqq@stfm.cn

Jiangsu Shentong Valve Co., Ltd. Board of Directors

March 15, 2013