Jiangsu Shentong Valve Co., Ltd.

2014 Social Responsibility Report

Preface

"Jiangsu Shentong Valve Co., Ltd. 2014 Social Responsibility Report" is the fourth 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 2014. From 1st to December 31st, 2014, 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. The content includes the overall development of the country and society, the natural environment and resources, as well as the responsibilities of shareholders, suppliers, customers, employees and other stakeholders. Since the company’s listing in 2010, the company has always implemented social responsibility awareness and concepts throughout the company’s development strategy, production, operation and management. In practice, it has continuously deepened reforms, strengthened management, innovated, and accelerated development, and strictly abided by social ethics, Business ethics, accept the supervision of the government and the public. 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 has always taken "the industry to serve the country and benefit mankind" as its corporate mission, "manufacturing first-class products, cultivating first-class talents, creating first-class enterprises, and building a century-old magic power" as its goal, and insisting on "consolidating metallurgy and developing The market positioning of nuclear power, the expansion of petrochemicals, and energy services and the corporate tenet of “creating value for users, creating opportunities for employees, creating returns for shareholders, and creating wealth for the society” adhere to the principle of “strengthening the enterprise by technology and strengthening the enterprise by management. Be solid, rely on marketing to make the company bigger, rely on talents for corporate development" development thinking, adhere to high-tech and high-end products to serve high-end customers, while committed to achieving sustainable development of the company, creating shareholder value, and protecting shareholder rights , For the harmonious development of economy 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 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 for the Social Responsibility of Listed Companies on the Shenzhen Stock Exchange”, the “Guidelines for the Standard Operation of Listed Companies on the Small and Medium-sized Enterprises Board of the Shenzhen Stock Exchange” and other relevant regulations, combined with the company’s actual situation in fulfilling its social responsibilities. Deliberated and approved at the eleventh meeting of the third board of directors.

This report is in Chinese, and the company’s statutory information disclosure website Juchao Information Network (www.cninfo.com.cn) uniformly publishes relevant information about the company’s fulfillment of social responsibilities.

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 recognized by the Ministry of Science and Technology as a high-tech enterprise, a provincial innovative enterprise, a provincial energy-saving emission reduction demonstration enterprise, and a provincial excellent demonstration enterprise for intellectual property management standardization. It is the vice chairman unit of China Valve Industry Association, the member unit of the National Valve Standardization Technical Committee, the leader unit of the butterfly valve working group of the National Valve Standardization Technical Committee, the member unit of the Baosteel Equipment and Spare Parts Joint Development and Supply Center, and the member of the China Petrochemical Corporation Material Supply Network Unit, member unit of China Guangdong Nuclear Power Equipment Localization Joint R&D Center. Possessing civil nuclear safety equipment design and manufacturing licenses, pressure vessels and pressure pipeline components special equipment manufacturing licenses TS-A1(2), TS-A2(2), and China National Petroleum Corporation material supplier access certificate, The BV factory of French Classification Society approved the registration certificate of marine valves and obtained the German TUV fire protection certificate. Passed the American Petroleum Institute API 6D, API609 certification and ISO9001 quality management system, ISO10012 measurement management system, ISO14001 environmental management system, GB/T28001 occupational health and safety management system certification.

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 Non-nuclear butterfly valves, non-nuclear ball valves and their supporting equipment, as well as the research and development, production and sales of products such as coal chemical industry, ultra (super) critical thermal power, and LNG ultra-low temperature valves.

In 2014, the company’s management team closely focused on the annual development goals set by the board of directors, adhered to the market positioning of “consolidating metallurgy, developing nuclear power, expanding petrochemicals, and serving energy”. Through the implementation of lean production projects and the promotion of wisdom and magic consulting projects Optimize resource allocation, increase corporate vitality through management innovation, deepen internal management innovation, improve efficiency, reduce costs, strengthen technology research and development and product line extension, and continue to explore new markets and new markets on the basis of consolidating traditional advantageous industries and product market share. Customers, with the continuous manifestation of the effects of the initial investment and the continuous strengthening of cooperation with core customers, the market goals of various business areas have achieved results. In 2014, the company achieved operating income of 465,606,400 yuan, a year-on-year decrease of 8.90%, and realized a net profit of 53,816,500 yuan, a year-on-year decrease of 18.33%.

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

During the reporting period, the company continued to improve its governance structure, operate with integrity and norms, established and improved internal management and control systems, and effectively improved the company’s governance. The general meeting of shareholders, the board of directors, the board of supervisors and the managerial level constitute a corporate governance structure with clear powers and responsibilities, mutual checks and balances, mutual coordination, and complementarity. In addition to the "Articles of Association", the company also formulated the "Rules of Procedures for the General Meeting of Shareholders", "Rules of Procedures for the Board of Directors", and "Rules of Procedures for the Board of Supervisors", which clarified the responsibilities and working procedures of the shareholders' meeting, the board of directors, the board of supervisors and the management to ensure decision-making , Implementation and supervision are separated from each other.

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

Since the listing, the "three committees" of the general meeting of shareholders, the board of directors and the board of supervisors have been continuously standardized, and various systems have been continuously improved. A set of checks and balances and effective internal management and control systems have been formed, which has effectively protected all shareholders and creditors. Legal rights. The company strictly follows the rules and requirements of the "Listed Company Shareholders' General Meeting Rules" and the "Articles of Association" to ensure that all shareholders, especially small and medium shareholders, enjoy equal status and can fully exercise their power. The company strictly complies with the relevant requirements of the China Securities Regulatory Commission to convene and convene a general meeting of shareholders, and invite lawyers to attend the witness, ensuring that the legitimate rights and interests of all shareholders, especially small and medium shareholders, are not infringed.

In 2014, the company held a total of 1 shareholder meeting (1 annual shareholder meeting), of which the annual shareholder meeting adopted a combination of on-site voting and online voting to vote. The board of directors was held 5 times and the board of supervisors 4 times. In the spirit of being responsible to shareholders and seeking truth from facts, independent directors of the company actively participated in the company’s 2014 board of directors, professional committees of the board of directors, and shareholders’ meetings. 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

In accordance with the "Information Disclosure Affairs Management System" and "Annual Report Information Disclosure System of Accountability for Major Errors", the company timely, accurately, completely and fairly disclosed the company's 2014 production and operation management and other related information, and published it in the "Securities Times" , "China Securities Journal" and www.cninfo.com.cn, for investors to consult. In the information disclosure work, we adhere to the principles of openness, fairness, and justice, and there is no selective information disclosure behavior, which guarantees the shareholders' right to know the company's major issues and operating conditions.

The company carries out various forms of investor relations activities, promotes investors’ understanding and recognition of the company, advocates rational investment, and establishes a good integrity image of the company among the investing public. The company’s website will promptly publish important recent news about the company to further allow investors and the public to fully understand the company’s operations, set up an “Investor Relations” column, update relevant information in a timely manner, and answer investor inquiries. The company also receives on-site visits from individuals and institutional investors, on-site visits, and company executives accepting media interviews, etc., so that investors have the opportunity to learn about the company from multiple channels.

In 2014, the company disclosed a total of 32 periodic reports and temporary announcements in accordance with regulations, so that investors can fully understand the company’s operating conditions in a timely manner. After the 2013 annual report was announced, the company also held a 2013 online performance briefing. The chairman of the company Mr. Wu Jianxin, President Zhang Yifang, Independent Director Mr. Song Yinli, Vice President and Secretary of the Board of Directors Mr. Zhang Qiqiang, Chief Financial Officer Ms. Lin Dongxiang, Audit Manager Mr. Hong Xuechao, and Huatai United Securities Co., Ltd. sponsor representative Ms. Shi Li attended the performance briefing meeting , In the briefing session, small and medium investors actively participated in asking questions, and the company’s directors and executives gave detailed answers to the questions raised by investors.

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

While the company's economic benefits are growing steadily, it attaches importance to reasonable returns to investors and actively builds a harmonious relationship with shareholders. In order to reasonably formulate cash dividend policy and corresponding decision-making procedures, and improve the information disclosure and supervision mechanism of cash dividends, in accordance with the relevant requirements of the regulatory authorities and the actual situation of the company, the company formulated the "Shareholder Return Plan for the Next Three Years (2012~2014)" , And proposed the minimum proportion of the company’s cash dividends to actively repay shareholders.

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

Unit: ten thousand yuan

2014 profit distribution plan: Based on the total share capital of 208,000,000 shares after the Shenzhen Stock Exchange closed on December 31, 2014, 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 2014, the company did not convert capital reserve into share capital. The proposal will be implemented after being reviewed and approved by the 2014 Annual General Meeting of Shareholders.

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. Sign "Labor Contracts" with all employees to specify the employees' wages and remuneration, working hours, rest and vacation, labor safety, social insurance and benefits, vocational training, etc. The company and employees assume obligations and enjoy rights in accordance with the labor contract . 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 adheres to the scientific principle of "determining posts by responsibilities and assigning people by post", and flexibly adjusts position setting and personnel allocation. 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, conducts regular and objective appraisal of the performance of various responsible units and employees within the company, and uses the appraisal results as the determination of employee compensation and Basis for promotion, evaluation, demotion, transfer, dismissal, etc. In order to strengthen the incentive effect of the calculation and issuance of the "Overproduction Award" on the improvement of the company's operating performance, and make the company management team take more responsibility for the completion of the company's overall goals, according to the difference in correlation, the "Overproduction Award" "Respectively linked to the monthly team performance indicators of the company or division.

3. 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.

Fourth, the company pays attention to the cultivation and reserve of talents. A relatively complete training system has been established. Every year, the Human Resources Department organizes various departments to prepare annual training plans for employees’ job capabilities and competence levels, and conduct targeted training such as new recruit induction training, project management, technology research and development, business consulting, etc. Effective training courses. In 2014, in accordance with the company's annual work goals and requirements, various training tasks were successfully completed. 83 internal and external trainings were completed throughout the year, with 1831 participants, including: 44 external trainings, 113 participants; 39 internal trainings, 1718 people participated; 5 management knowledge training, 3 quality assurance system training, 21 vocational qualification certification training, 13 technical knowledge training, 1 intellectual property training, 2 induction training, 20 job knowledge training, and job skills 7 times of training, 3 times of safety production, 8 times of nuclear safety culture training. Sixty-nine personnel qualification certificates were newly established and reviewed throughout the year. In 2015, the company will continue to formulate an annual training plan scientifically and reasonably according to the needs of various aspects. The training work in 2015 will focus on nuclear safety culture, company nuclear quality assurance system training, workshop front-line workers mechanical drawing, equipment operation and maintenance and other skills upgrading training .

5. The company attaches great importance to strengthening communication and exchanges with employees. Through the company’s workers’ congress, production scheduling meeting, employee birthday symposium, etc., as well as various forms such as "Shen Feng Cai" newspaper, company intranet, WeChat circle of friends, etc., communicate with company employees in a timely and extensive manner, so as to reach the situation. , The next sentiment is up. The leaders of the company announce to employees the strategic planning, goals, positioning and annual plan of the company's development in a timely manner through monthly regular meetings.

Six. Carry out various cultural and entertainment activities to enrich the amateur cultural life of employees. In order to create an organizational culture atmosphere where all employees participate in management and mobilize the initiative and enthusiasm of employees, the company carries out flexible and diverse organizational activities, such as regular activities such as standardization teams, QC teams, and 5S activity teams. At the same time, it also develops rationalization suggestions and magical powers. Various activities such as Good Voice Youth Song Competition, cultural and sports competitions, and technical competitions allow employees to fully demonstrate their talents.

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

Suppliers and customers are both partners of the company, a valuable resource of the company, and an integral part of the company's competitiveness. The company has always followed the principle of "equality, mutual benefit, and win-win cooperation", actively building and developing partnerships with suppliers and customers, and focusing on communication and coordination with all stakeholders.

Suppliers are the company’s important partners. After screening and evaluation, the company has established long-term and excellent strategic partnerships with reputable, high-quality suppliers. The supply channels are stable and reliable. Through the establishment of strategic partnerships, Ensure the timely supply of materials required by the company. The company’s procurement follows the principles of equality, fairness, and justice for sampling and data exchange, and always adheres to the concept of “long-term cooperation to achieve win-win”. The independent procurement of auxiliary materials and mechanical materials implements strict tendering methods. The tender review is organized by the purchasing department. Departments and user units will send people to participate, compare prices under the same quality conditions, and shop around to ensure openness, fairness and justice. The company evaluates suppliers once a year, conducts hierarchical management, introduces high-quality supplier resources, promotes suppliers' self-improvement, continuous improvement, reduces procurement costs, and improves the competitiveness of the supply chain.

The company pays great attention to the needs, expectations and preferences of customers and the market, always focusing on customer satisfaction, establishing a mutual trust mechanism with strategic customers, signing supply and marketing contracts at the beginning of the year, and sharing risks with customers when the market changes. In response to customer complaints on quality, the company initiates a rapid response mechanism to ensure that customer interests are not lost. The company regularly analyzes customers in "different regions, different industries, and different levels" through questionnaires, and adopts a series of countermeasures to understand and determine customer requirements and expectations for products and key factors in making purchase decisions. Taking targeted measures for different customers, tailoring the whole process from product design, production, improvement, market development, marketing, service, etc. to meet customer needs, while identifying innovation opportunities, such as: the company's metallurgical business department service personnel, In doing after-sales service for customers, we found business opportunities to develop the metallurgical valve spare parts market.

The company regularly organizes marketing meetings every year. According to the market and customer demand information fed back by salespersons, the company formulates effective marketing strategies to guide customer needs and continuously improve customer satisfaction; the marketing department holds monthly strategy analysis meetings to review the market situation last month Analyze and design the work plan for the next month. Through market expansion management, the market share has been increased and the return of accounts receivable has been accelerated.

Chapter 5 Environmental Protection and Sustainable Development

The company pays great attention to the protection of the environment and ecology, and strictly follows the environmental protection standards and requirements in line with international standards to create a green ecological industrial park with a beautiful environment and fresh air. The company has increased its investment and has successively completed plant greening, clean sewers, and noise reduction Noise reduction and other items.

According to the production and operation characteristics of the valve industry, the company’s senior leaders regard safety accident rate, environmental pollution accidents, customer satisfaction rate, production cost, and product quality as key performance indicators. They rejected the assessment of safety production accidents and environmental pollution accidents with one vote, and clearly put forward "people-oriented" , Safety first; strict management, eliminate violations; find violations, promptly stop" requirements, through strong measures and management, to ensure that employees and the public have a safe production environment and a harmonious living environment.

Through technological transformation, the company achieves environmental protection dust removal, rain and sewage diversion, wastewater purification, cooling water circulation, etc., to protect the health of employees, to contribute due responsibilities to the environment on which mankind depends, and to provide guarantees for achieving the organization's strategic goals. In terms of energy saving and consumption reduction, the company has carried out frequency conversion transformation on high-power motors on the basis of full investigation; in terms of comprehensive utilization of resources, the company vigorously promotes circular economy and strengthens comprehensive utilization of resources. The company’s precision casting workshop takes comprehensive utilization of resources as a benchmark and earnestly Research and development of waste sand, scrap steel and other recycling technologies. The recycling rate of scrap products has been increased from 50% to 85%. According to the current production scale, 1,800 tons can be recycled a year, which has increased the efficiency of the enterprise and is also a comprehensive resource. Utilization and sustainable development have made contributions, and good social benefits have been achieved; in terms of public health, the company pays attention to public health safety, strictly adheres to the "sickness from the mouth", and assigns special personnel to be responsible for the health and safety of the staff canteen and dormitory. The canteen staff is half a year One physical examination, one physical examination for other employees a year, contact the Municipal People’s Hospital and the Municipal Hospital of Traditional Chinese Medicine as the company’s designated service hospitals; in terms of environmental protection publicity, the company continuously enhances employees’ energy-saving, consumption-reduction, and environmental protection through publicity boards, internal newspapers, and banners. Awareness and cultivate the habit of consciously saving electricity, water, paper and oil in work and life. Every employee should start with 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 environment-friendly society.

Chapter VI Work Safety and Occupational Health

The company belongs to the machinery manufacturing industry, and safe production is an important prerequisite for ensuring the safety of employees. The company strictly implements labor and safety such as the Labor Law of the People’s Republic of China, the Safety Production Law of the People’s Republic of China, and the Occupational Disease Prevention and Control Law of the People’s Republic of China. Production laws and regulations, and constantly improve the occupational health and safety conditions in the working environment of employees, the company's production safety management is mainly achieved through monthly safety inspections and daily inspections by safety personnel. The company has carried out reforms and innovations in the following areas:

1. Organize a major safety inspection once a month to find out the unsafe status of the object, and through the hidden danger investigation, rectification within a time limit to ensure that employees have a safe working environment.

2. In summer, it not only supplies heatstroke prevention medicines such as green tea, Rendan, and Shidropshui, but also organizes the logistics department to distribute cold drinks to frontline employees. Air-conditioning is installed in the shift lounge and powerful electric fans are installed on the job site to create a comfortable working environment for employees.

3. Establish health records for employees and organize regular physical examinations for employees. When employees are found to be unwell, they will be paid nutrition fees and rest arrangements to ensure that their health is not harmed.

4. According to different positions, configure the corresponding labor protection supplies, including safety helmets, heat-resistant overalls, anti-static overalls, acid-resistant overalls, dust masks, eye protection, canvas gloves, gauze gloves, labor protection shoes and other labor protection that meet the requirements of the standard Supplies. Regularly listen to the suggestions of front-line employees on labor insurance products to protect the rights and interests of employees.

5. Identify the dangers in the production area, formulate various emergency rescue plans, train relevant practitioners, clarify their respective responsibilities, and conduct a plan exercise once a year to correct the problems in the exercise to improve the organization's emergency response capabilities and Ability to deal with various emergencies.

6. ​​Strengthen production safety education and training, and regularly invite safety experts to explain safety knowledge, fire protection knowledge, emergency rescue and other safety knowledge. In particular, special operations personnel and safety production management personnel are required to hold certificates. Before the start of new processes and new projects, organize employees to conduct business training in the same industry.

In 2014, the company's safety supervision department organized employees of various positions to wear safety inspection red armbands in turn. On the one hand, it strengthened employees' awareness of consciously complying with safety production rules and regulations, and on the other hand, it also encouraged employees to consciously learn basic knowledge of safety production.

Chapter 7 Public Relations and Social Welfare

The development of an enterprise originates from the society, and it is the responsibility of an enterprise to give back to the society. As the basic unit that constitutes the organic whole of the society, an enterprise must not only pursue profit, but also consider the overall interests and long-term development of the society, and undertake corresponding social responsibilities. Including actively participating in social welfare undertakings, co-organizing various large-scale activities, but also including legal operations, paying taxes according to regulations, caring for resources, protecting the environment, paying attention to safety, caring for employees, expanding employment, integrating into society, and common prosperity. The company needs to organically integrate the pursuit of profit and social responsibility, give back to the society with love, actively participate in and support social welfare activities, such as fighting natural disasters, supporting charity, education, and advocating that all employees of the company are grateful Take an active part and dedicate your 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 in accordance with the 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, and has long reported and paid taxes truthfully and timely. 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 repeatedly commended by various levels of industry and commerce, taxation and relevant authorities.

3. The company actively supports public welfare undertakings. Within the company, the company established a mutual aid fund to help and support families suffering from major illnesses, disabilities, and natural disasters to tide over the difficulties; outside the company, it focused on supporting charitable foundations in the field of public welfare. In 2014, the company donated a total of donations to Qidong Charity Foundation 2.15 million yuan has sent warmth to the disadvantaged and the people in need.

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 expected 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 2015, the company will continue to accelerate technological innovation, improve the level of customer service, improve 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, effectively protect employees' rights and interests, and provide employees with a broader career development space. On the basis of the stable development of the company’s main business entity, we will continue to promote and improve social responsibility work, and actively assume social responsibility,Accept the supervision of all sectors of society with an open mind, strengthen communication and exchanges with all stakeholders, continue to support social welfare undertakings, and make new contributions to promoting the harmonious development of the company 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 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 29, 2015