Jiangsu Shentong Valve Co., Ltd.

2013 Social Responsibility Report

Preface

"Jiangsu Shentong Valve Co., Ltd. 2013 Social Responsibility Report" is the third publicly released social responsibility report of Jiangsu Shentong Valve Co., Ltd. (hereinafter referred to as the "Company" or "Company"). The time span of this report is January 2013. From 1st to December 31st, 2013, it truly and objectively reflected the company’s important information 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, the company, as always, takes "the industry to serve the country and the benefit of mankind" as its corporate mission, adheres to the development strategy goal of "single champion, industry pioneer, respected, and century-old magical powers", and "people do not have me. The new product development policy of "people have the best, others are better, we are cheap, and others are cheap, we turn", 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" The market positioning and 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 and interests. For the harmonious development of the economy and society, the balance of natural environment and resources, employees, customers, suppliers and other stakeholders also assume corresponding responsibilities, which promotes the overall, natural and coordinated development of the company and society.

We hope that this report can serve as a bridge for communication and exchanges with all sectors of society, and we also hope to accept social supervision to promote the company's better and faster development.

This report is prepared in accordance with the "Guidelines on Social Responsibility of Listed Companies on the Shenzhen Stock Exchange", the "Company Law" and other relevant regulations, combined with the company's actual performance of social responsibilities, and has been reviewed and approved at the fifth meeting of the company's third board of directors.

We would like to publish the relevant information on the company's fulfillment of social responsibilities through the statutory information disclosure website www.cninfo.com.cn (www.cninfo.com.cn).

Chapter One Basic Information of the Company

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 used in the metallurgical field, nuclear butterfly valves, nuclear ball valves, and Research and development, production and sales of non-nuclear butterfly valves, non-nuclear ball valves, nuclear power ancillary equipment, as well as products used in coal chemical, ultra (super) critical thermal power, LNG ultra-low temperature 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 2013, the company continued to focus on the market positioning of "consolidating metallurgy, developing nuclear power, entering petrochemicals, and serving energy". Through the implementation of "lean production projects" and "cooperative office OA system construction" projects, the company improved the production and work efficiency of all employees; "Internal control management system" is sorted out and improved to standardize management; through the implementation of major special projects, improve the quality of all employees and enhance the company’s core competitiveness; adopt product development strategies that combine independent research and development with research institutes, production, learning and research, and seize opportunities to do Good product development in new areas and product upgrading work, relying on technological innovation to strengthen and expand the enterprise.

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 2013, the company achieved operating income of RMB 511.1192 million, a year-on-year increase of 14.66%, and realized net profit of RMB 65,894,600, a year-on-year increase of 1.37%.

The company adheres to the market and customer needs as the leading direction of new technology and new product research and development, and achieves 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 magical characteristics continues to lead the enterprise and all employees, becoming 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 strictly followed the "Company Law", "Securities Law" and the requirements of relevant laws and regulations of the China Securities Regulatory Commission and Shenzhen Stock Exchange to continuously improve the governance structure, improve the internal control system, standardize the company's operations, and strengthen information disclosure management and Investor relationship management fully protects 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 more and more perfect, the internal control system has been continuously improved, and a complete set of checks and balances and effective internal 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. Analyze the reasons for the deficiencies, and actively rectify them to lay a solid foundation and improve the level of corporate governance. In 2013, the company’s various internal control systems have been effectively implemented, and the system has been continuously improved, including the formulation and implementation of the "Quality Accident Handling System", "Special Reward Measures for Employees Participating in Part-time University Study", "Overtime and Duty Management Measures ( Trial Implementation), “Regulations on the Administration of Letter Express Business”, “Methods for the Construction and Reward of Independent Intellectual Property Rights”, “Administrative Measures on Equipment Maintenance”, “Regulations on the Administration of Retirement and Resignation of Employees”, “Regulations on Payments and Invoice Management of Corresponding Units” , Several internal control systems such as the "Regulations on Personal Loans for Employees", to effectively protect the legitimate rights and interests of all shareholders, especially small and medium shareholders and creditors.

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 standard operation and management awareness, and strengthen the prevention of illegal occupation of funds and illegal guarantees. Be aware of behavior, and better perform the job responsibilities of planning corporate governance and protecting the interests of investors.

2. Standardize the "three meetings" to ensure the legitimate rights and interests of shareholders

During the reporting period, the "three meetings" of the general meeting of shareholders, the board of directors, and the board of supervisors were operated in a standardized manner. The previous general meetings of shareholders, the board of directors, and the board of supervisors were organized in strict accordance with regulations. The company insists on treating all shareholders fairly and effectively protecting the legitimate rights and interests of shareholders, especially small and medium shareholders. The "three meetings" are held in various ways such as on-site meetings, communication voting, online voting, etc., so that more shareholders can participate in the shareholders meeting and ensure that shareholders The right to know, participate and vote on the company's major matters, and at the same time hire qualified lawyers to witness the convening of the general meeting of shareholders.

In 2013, the company held a total of 3 shareholder meetings (1 annual general meeting and 2 extraordinary general meetings). Among them, the annual general meeting adopted a combination of on-site voting and online voting to vote. A total of 8 board meetings were held (the second The board of directors was held 4 times and the third board of directors was held 4 times), and the board of supervisors was held 6 times (the second board of supervisors was held 3 times, and the third board of supervisors was held 3 times). In the spirit of being responsible to shareholders and seeking truth from facts, independent directors of the company actively participated in the board of directors, professional committees of the board of directors and shareholders meetings held in 2013. They made independent judgments based on their professional capabilities and experience, put forward independent opinions, and reviewed various items in accordance with prescribed procedures. Proposals are voted on and play an active role for the board of directors to make correct and scientific decisions.

3. Strictly fulfill the obligation of information disclosure and continuously strengthen investor relationship management

During the reporting period, the company disclosed company information in a timely, accurate, and complete manner in accordance with relevant regulations. In the information disclosure work, it adhered to the principles of openness, fairness and impartiality, and there was no selective information disclosure behavior, which ensured that shareholders are aware of the company’s major issues and operations. Right to know. 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 and maintain effective interaction with investors. All investors have the opportunity to understand the company from multiple channels.

In 2013, the company disclosed a total of 36 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 2012 annual report, the company also held a 2012 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 Mr. Ji Ping, Sponsor Representative of Huatai United Securities Co., Ltd. Participated in this performance briefing. At the briefing, the directors and executives of the company gave detailed answers to questions raised by investors.

4. Adhere to the cash dividend policy to ensure a stable return on investment for shareholders

The company has formulated a clear profit distribution policy, comprehensively considering the company’s development stage, operating status, and profitability scale, and through cash dividends and capitalization of capital reserve funds into share capital and other profit distribution plans, it provides shareholders with reasonable investment returns and stabilizes investors. Expected returns. The company revised the requirements for cash dividends in the "Articles of Association" and formulated the "Shareholder Return Plan for the Next Three Years (2012-2014)". The revised profit distribution policy, standards and proportions are clear and clear. The profit distribution policy may be adjusted or adjusted. The changed conditions and procedures are compliant and transparent, and fully protect the legitimate rights and interests of small and medium investors.

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

Unit: ten thousand yuan

The profit distribution plan for 2013: Based on the total share capital of 208,000,000 shares after the closing of the Shenzhen Stock Exchange on December 31, 2013, a cash dividend of RMB 0.50 (tax included) is distributed to all shareholders for every 10 shares, for a total cash dividend of RMB 10,400,000.00. In 2013, the company did not convert capital reserve into share capital. The proposal was implemented after it was reviewed and approved by the 2013 Annual Shareholders' Meeting.

Chapter III Protection of Employees' Rights and Interests

The company always adheres to the people-oriented concept, regards employees as valuable resources for the survival and development of the company, links the development of employees with the development of the company, continuously improves the company’s employment mechanism, and improves the working environment of employees through various channels and channels. Remuneration package in order to stimulate the enthusiasm and creativity of each employee, provide employees with opportunities and space for sustainable development, and 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 will further revise and improve the related management systems for labor employment and welfare guarantee; according to the actual situation of the company, adjust the work and rest time according to the season; sign a "labor contract" with all employees, and the company and employees will assume obligations and Enjoy rights. Strictly implement the relevant national social insurance regulations, pay social insurance such as housing provident fund and endowment insurance, medical insurance, unemployment insurance, work injury insurance, maternity insurance, etc., pay all insurance expenses in full and on time every month, and complete new procedures in time in accordance with relevant regulations of the labor department. Employment and resignation personnel’s labor contracts, social insurance and other related procedures, 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, so that employees can work with peace of mind and seek development in a fair and just environment.

2. The company has established and implemented a performance appraisal mechanism that employs ability and pays according to performance, scientifically sets up an appraisal index system, and conducts regular and objective appraisal of the performance of the responsible units and employees within the company, and uses the appraisal results as identifying employees Salary and the basis for promotion, evaluation, demotion, job transfer, dismissal, etc. Through a special inspection team, the effectiveness of business development is evaluated in real time, and rewards and punishments are timely. The company provides employees with stable and competitive salaries according to the industry and the location of the company, and implements a piece-rate salary system for front-line workers; the salary of management and process technology, research and development, sales and other employees is based on basic salary and performance salary Composition, implement a salary system of monthly performance appraisal. The company makes timely corresponding adjustments in accordance with the changes in the salary level of the same industry and the local human resource market, and forms a performance appraisal and incentive and restraint mechanism for employment according to ability and salary according to performance, so as to attract and retain outstanding talents and provide human resources for company development Guaranteed.

3. The company attaches great importance to safe production, abides by national laws and regulations on safe production, pays attention to the physical and mental health of employees, 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 is a general machinery manufacturing enterprise, so it pays more attention to safety production risk assessment. It provides employees with necessary labor protection equipment and protective facilities for different positions. It has set up a safety supervision department to take charge of safety production and is equipped with a full-time safety production job. Positions and safety officers have established relevant systems and risk prevention emergency plans, checked and identified the links that are prone to safety production accidents in the production and operation process, and effectively prevented and controlled risks through monthly safety production work meetings. The production.

Fourth, the company always adheres to the people-oriented principle and pays attention to the physical and mental health of employees. The company’s business scale has continued to expand and the number of employees has gradually increased. The company regularly organizes all employees to conduct physical examinations and timely re-examinations if problems are found; measures are taken to prevent heatstroke in the summer. As the new employee dormitories are put into use, all the employees live in spacious rooms. In the rooms, the company installed air conditioners, televisions and water heaters in every newly built dormitory, which greatly improved the living conditions of employees. 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.

5. The company attaches great importance to the cultivation and reserve of talents. In terms of employee training, the company has established a systematic training system and introduced a wealth of online teaching resources for employees to train, learn, and improve their skills. The company’s human resources department formulates detailed training plans at the beginning of the year in accordance with the needs of the company’s development every year. Carry out training courses such as new employee induction training, project management, technology research and development, and business consulting. In 2013, in accordance with the company’s annual work goals and requirements, various training tasks were basically completed. In the whole year, various trainings were organized in the form of internal lectures and external lecturers, with 1,881 participants; the organization of professional qualifications and certification, There were 60 trainings on job skills, management knowledge, technical knowledge, business knowledge, etc., with 244 participants and 125 vocational qualification certificates and 48 training certificates. In the whole year, 125 persons were newly established or re-examined to obtain personnel qualification certificates, and 48 persons obtained training certificates. In 2014, we will continue to formulate scientific and reasonable annual training plans based on the needs of various aspects, formulate monthly training work plans in a timely manner in strict accordance with the annual training, and organize the implementation of various internal and external trainings. Through training, the quality of all employees will be continuously improved, and the company will develop Reserve human resources.

6. The company attaches great importance to strengthening communication and exchanges with employees. The company regularly holds employee birthday symposiums, founded an internal publication "Shen Feng Qing", opened the company website and OA automated office system, etc., built a bridge for communication between the company and employees, making it an internal company to exchange experience, report information, display achievements, and commend An important platform for advanced and morale-boosting.

Seven. Carry out various cultural and entertainment activities to enrich the amateur 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, and basketball matches. The monthly birthday seminars allow employees to experience the warmth of the company's big family, and enhance their cohesion, teamwork awareness and collective sense of honor. At the same time, activities such as the 2013 Spring Festival Gala and Haining Day Tour were held. Through these activities, in addition to the intense production work, the employees' body and mind were adjusted and the emotional exchanges between employees were promoted. In 2013, the trade union organized 6 employee labor competitions and 8 employee cultural activities, and organized 3 democratic evaluations of middle-level managers.

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

Since its listing, the company has been following the principle of "equality, mutual benefit, and win-win cooperation", actively constructing and developing partnerships with suppliers and customers, and focusing on communication and coordination with stakeholders in all aspects. The company’s management put forward the goal of building "six satisfaction projects", namely: creating value for customers and satisfying customers; achieving progress for suppliers and satisfying suppliers; creating opportunities for employees and satisfying employees; creating taxes for the government , To satisfy the government; to create wealth for the society and satisfy the society; to create returns for shareholders and satisfy shareholders. Build a respected listed company and promote its sustainable, stable and healthy development.

Suppliers are the company’s important partners. The company adheres to the principle of "cooperating with suppliers for win-win and common progress", adheres to the policy of "professional production and social collaboration", is honest and trustworthy, and achieves development and progress for suppliers with full respect The legitimate rights and interests of suppliers shall be strictly protected and their secret and proprietary information shall be maintained, and long-term good cooperative relations shall be maintained to promote win-win cooperation and development. We always attach importance to communication with suppliers, regularly hold supplier product quality meetings, and hold supplier annual summary meetings once a year. The company has established a stable supplier supply channel, categorizes the raw materials that need to be purchased, extensively collects and screens supplier information, and reviews their economic strength, quality management capabilities, delivery capabilities and supply prices to ensure the raw materials purchased Can meet the needs of company operations. The company has established a database of qualified suppliers, and conducts continuous supervision and management and regular evaluation of suppliers in follow-up cooperation. The company monitors daily purchases, the management and control department reviews the quantity and price of purchases, and supervises the compliance and legality of purchase contracts. The financial department pays suppliers on time in accordance with purchase contracts and material arrivals. 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.

Creating value for customers is the starting point and foothold of all our work. We take customer satisfaction as the yardstick to measure the work of the company, attach importance to the win-win relationship with customers, and provide customers with high-quality products while actively providing services to customers , Anxious to the customer's urgency. Each business department of the company has set up a quality control department, and a dedicated person is responsible for the quality management of each process link in the on-site production and operation, to ensure the quality control of the material procurement process and product production process, and to ensure that only qualified materials are put into production, and qualified materials can flow into the next production. At this stage, only qualified finished products can be put into storage or sold out of the factory to prevent and control the appearance of substandard products. The company's quality assurance office supervises and assesses the company's production and operation quality management control activities, supervises, inspects, and maintains the operation and implementation of quality, environment, occupational health and safety, measurement management, API and other management systems, and understands customer product quality requirements in a timely manner Handle customer's product quality feedback information. In addition, the company collects customer opinions through various channels such as regular customer return visits, issuing "Customer Satisfaction Survey Questionnaires" and other channels to keep abreast of customer needs and opinions. The company conducts customer satisfaction survey activities for all customers at the end of each year. It is calculated by weighting to obtain customer satisfaction, which is 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 also has complete after-sales service measures, has set up after-sales service departments and is equipped with professionals to provide high-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. As a company with a high sense of social responsibility, the company always regards environmental protection as an important part of the company’s sustainable development, and actively responds to the country’s call for building an environment-friendly and resource-saving society , To fulfill the corporate environmental protection responsibility, adhere to technological innovation, energy saving and emission reduction, and strive to minimize the impact of the company's development on the environment. By introducing advanced energy-saving equipment and optimizing production technology, energy consumption has been reduced and waste emissions have been reduced. The company strictly abides by the national laws and regulations on environmental protection, and has formulated a complete set of environmental protection management systems and environmental risk emergency plans to prevent environmental risks. During the reporting period, the company has not had any environmental violation cases, has not been punished by the environmental protection department, and paid the pollution discharge fee in full on time.

The company vigorously promotes circular economy and strengthens comprehensive utilization of resources. The company continuously enhances employees’ awareness of energy conservation, consumption reduction, and environmental protection through publicity columns, internal newspapers, banners, etc., and cultivates employees to consciously save electricity, water, paper, and oil habits in work and life; the company passed OA office system, ERP resource management system and other software have established a complete paperless office system, which greatly saves the company's office costs; through the double-sided use of office paper, paper reuse, etc., a large amount of paper and ink cartridges are saved Consumption, reduce resource occupation, eliminate waste; save communication and mailing costs, and also reduce the occupation of social communication lines and postal resources by telephone, fax and mail contact methods. Let every employee start from the little things around him, save company and social resources, and contribute to the promotion of energy conservation and emission reduction, the promotion of green life, the construction of ecological civilization, and the construction of an environmentally friendly society.

In the construction process of the fund-raising project in 2013, the company used the concept of cleaner production, focused on the characteristics of nuclear power product process flow, concentrated scientific research personnel, through public bidding, adopted advanced technology and clean production technology, to achieve a clean nuclear power ball valve workshop The purpose of production is to improve the working environment of employees and increase the efficiency of labor production. For two consecutive years, it has received financial support from the local government's "Energy Conservation and Circular Economy Key Project Plan".

Chapter VI Work Safety and Occupational Health

"If there is no safety, everything is equal to zero." 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. It has set up a safety supervision department to be responsible for the company's safety production supervision and management, and fully implements the leadership responsibility system. All departments and teams sign a safety production responsibility certificate to specify responsibilities and assign personnel to their posts. The Safety Supervision Department insists on conducting daily safety inspections, investigating hidden dangers, rectifying the "three violations", discovering problems and solving them in a timely manner, eliminating the company's hidden safety hazards in the bud and laying the foundation for the company's continuous improvement of safety production.

In order to achieve 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. The safety supervision department organizes relevant departments to formulate a rectification plan and implement it carefully. 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.

The company conscientiously implements a series of decisions and deployments of the State Council on strengthening production safety, and in accordance with the general requirements of full coverage, zero tolerance, strict law enforcement, and pragmatic results, comprehensively investigates and controls production safety hazards, plugs safety supervision loopholes, and strengthens safety production measures. In 2013, the company's safety education and training were conducted 6 times, with 552 participants; 131 new employees received the company's third-level education. In 2013, a total of 28 special inspections of various kinds were organized, and daily inspections were conducted twice a day. The hidden accidents detected were rectified on time, and the rectification rate reached 96%. The company's safety production goals in 2014: zero injury, zero accident, and zero pollution. In accordance with the requirements of safety production standardization enterprises of machinery manufacturing enterprises, strengthen the company's safety production management, and truly realize operation standardization, field standardization, and management standardization.

Chapter 7 Public Relations and Social Welfare

The stable development of the company is inseparable from the support of the society

, Repaying the society is the responsibility of enterprises. 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 to 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 natural disasters, supporting public welfare and charity, education, and encouraging all employees of the company to actively participate with gratitude and dedicate their love.

1. The company actively maintains communication and contact with competent government departments, industry associations, regulatory agencies and relevant media, and actively cooperates and assists in the supervision and inspection of relevant departments in accordance with the requirements of laws and regulations, and fulfills its own responsibilities And obligations.

2. Integrity management, pay taxes according to law, and contribute to the development of society and the country. The company regards paying taxes in accordance with the law as the most basic requirement for fulfilling its social responsibilities and giving back to the society. The company has been one of the major taxpayers in Qidong City for many years, has strongly supported the national and local finances, and has been commended and rewarded by local government departments many times.

3. The company actively participates in social welfare undertakings. The company and its employees actively donate to social welfare and charitable causes, and carry out activities such as poverty alleviation pairing, loving education, and free blood donation. In addition, the company maintains communication with all sectors of society, carries out activities such as cultural performances and harmonious community construction, and has achieved good social impact. In 2013, a total of 750,000 yuan was donated to the Qidong Charity Foundation, which sent warmth to the disadvantaged and needy people in society.

The company's growth and the company's active commitment to social responsibilities are complementary and inseparable. 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 2014, the company will continue to accelerate technological innovation, improve the level of customer service, increase customer satisfaction, and create more value for shareholders. Attach importance to customer relationship management and investor relationship management, adhere to "people-oriented", promote corporate culture construction and human resource management innovation, and effectively protect employees' rights and interests, and provide employees with a broader career development space. Actively assume social responsibilities, accept the supervision of all sectors of society with an humility, continuously improve the construction of the company's social responsibility management system, strengthen communication and exchanges with all stakeholders, continue to support social welfare undertakings, and make new efforts to promote the harmonious development of the company and society contribution.

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 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 16, 2014