Jiangsu Shentong: 2011 Annual Social Responsibility Report

Jiangsu Shentong Valve Co., Ltd.

2011 Annual Social Responsibility Report

Foreword

Jiangsu Shentong Valve Co., Ltd. (hereinafter referred to as "the company" or "the company"), as a private listed company, actively practices the scientific concept of development, follows the principles of honesty and trustworthiness, and standardized operation. While developing and expanding the enterprise, pursuing economic benefits and protecting the interests of shareholders, it also needs to balance the harmonious development of the country and society, the natural environment and resources, employees, customers, suppliers and other stakeholders bear the corresponding responsibilities to promote the comprehensive, natural and coordinated development of the company and society.

Corporate social responsibility means that while enterprises create profits and bear legal responsibility to shareholders, they should also bear corresponding responsibilities for the harmonious development of the country and society, as well as employees, customers, suppliers, and the environment. The social responsibility of enterprises requires enterprises to go beyond the traditional concept of taking profit as the only goal, emphasize the attention to human value in the production process, and emphasize the contribution to the environment and society. The 2011 Social Responsibility Report of Jiangsu Shentong Valve Co., Ltd. takes the 2011 corporate operating results as the core, truly and objectively reflects the company's pursuit of corporate value positioning and social responsibility in daily operation and management, and summarizes the company's 2011 In protecting the rights and interests of shareholders and creditors, the rights and interests of employees, the rights and interests of suppliers and customers and other relevant parties, as well as the social responsibilities fulfilled in environmental protection and sustainable development, safe production, public relations and social welfare undertakings, I hope this report can serve as a bridge for communication with all sectors of society, and strengthen the awareness of all sectors of society to the company. At the same time, I also hope to get suggestions and opinions from all sectors of society to promote the company to better fulfill its social responsibilities.

The 2011 Annual Social Responsibility Report of Jiangsu Shentong Valve Co., Ltd. was compiled 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 actual situation of the company in fulfilling its social responsibilities. The company was reviewed and approved at the 20th meeting of the second board of directors.

Chapter I Basic Situation of the Company

Jiangsu Shentong Valve Co., Ltd. was established in January 2001 and listed on the Shenzhen Stock Exchange in June 2010 (securities referred to as "Jiangsu Shentong", securities code "002438"), with a registered capital of 104 million yuan. At present, the company is a national high-tech enterprise, a vice-chairman unit of China Valve Industry Association, a member of CGN Nuclear Power Equipment Localization Joint R & D Center, a member factory of Baosteel Equipment and Spare Parts Joint Development and Supply Center, and an innovative pilot enterprise in Jiangsu Province. The company is mainly engaged in the development, production and sales of blast furnace gas dry dust removal system, converter gas dust removal and recovery system, coke oven flue gas dust removal system, special valves of gas pipe network system, as well as nuclear butterfly valves, nuclear ball valves, non-nuclear butterfly valves and non-nuclear ball valves used in nuclear power plants.

The management of the company actively seeks development through innovation. 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. Through the introduction, digestion, absorption, and re-innovation of work ideas, it has realized nuclear-grade butterfly valves. The full localization of ball valves has become an important supplier of nuclear-grade butterfly valves and ball valves in China. In 2011, under the continuous influence of the international financial crisis, especially after the nuclear safety accident in Japan, the company's management, in accordance with the annual development goals and strategic plans determined by the board of directors, pioneered and innovated, made decisive decisions, and put forward a new business idea of "consolidating metallurgy, developing nuclear power, marching into petrochemical and serving energy. To further consolidate the market position of metallurgical special valves, take measures to actively respond to the new situation of national nuclear power development, track the new development direction of nuclear power technology, increase investment in research and development, develop high parameters, high safety performance, in line with the third generation nuclear power technology AP1000 standard requirements of nuclear power equipment, in response to the Japanese nuclear accident may bring to the development of China's nuclear power technology impact and changes. At the same time, the company also seizes the favorable opportunity to carry out special valve technology research in the fields of petroleum and petrochemical, ultra (ultra) critical thermal power units, coal chemical industry, etc., and carry out technological research and development and innovation of core technologies and product experience in the fields of metallurgy and nuclear power, and actively apply them to other fields, expand product application fields, and improve business performance, In order to enhance the ability of enterprises to resist business risks.

Through the joint efforts of all the cadres and employees of the company over the years, the "Shentong" brand has become a well-known brand in the industry. In 2011, the company achieved a total operating income of 377.7155 million billion yuan, an increase of 25.19 percent over the same period last year, and a net profit of 50.8667 million billion yuan, an increase of 15.34 percent over the same period last year.

The company adheres to the market and customer demand as the leading direction of new technology and new product research and development, and realizes continuous technological innovation and product upgrading by increasing investment; adheres to the innovation concept of "people do not have me, people have me, and people are superior to me"; Establish the quality concept of "do not do it, do it, you must do the best"; form the business goal of "manufacturing first-class products, bringing up first-class talents, and creating first-class enterprises. In the process of enterprise growth, the unique business philosophy constantly guides the enterprise and all employees, and becomes the spiritual pillar of the sustainable and stable development of the enterprise.

"Shentong is a factory, to produce good products; Shentong is a school, to produce good talents; Shentong is a family, everyone should care for each other" corporate culture has become the common spiritual strength and value orientation of all Shentong people. In 2011, while pursuing economic benefits and protecting the interests of shareholders, Jiangsu Shentong Valve actively safeguarded the legitimate rights and interests of employees, suppliers and customers, treated stakeholders with integrity, and advocated low-carbon environmental protection, energy conservation and emission reduction for all employees, and continuously improved the company's competitiveness through independent innovation. At the same time, the company also actively participates in social charity and actively returns to the society.

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

Shareholders are the premise of the survival and development of enterprises, the company attaches great importance to the protection of the rights and interests of shareholders and creditors, especially the majority of small and medium-sized shareholders, and shareholders, creditors to maintain smooth communication channels and good relations is one of the important work of the company.

1. companies have established a relatively complete governance structure and internal control system. The operation of the "three meetings" of the general meeting of shareholders, the board of directors and the board of supervisors of the company is constantly standardized. The Company has set up an audit committee of the Board of Directors and an internal audit department to exercise supervision and audit duties over managers and businesses in accordance with the Company's internal control management system, and to effectively protect the legitimate rights and interests of all shareholders and creditors.

2. companies earnestly fulfill their information disclosure obligations. In accordance with the regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange on fair information disclosure, the information disclosure system has been improved to ensure that the information disclosure is true, accurate, timely, complete and fair, so that the company's shareholders and creditors can timely understand and grasp the company's operating dynamics and financial status And the progress of all major issues to protect the interests of shareholders and creditors. At present, the company is exploring and innovating the company's investor relationship management work methods, taking various forms to actively communicate and communicate with the majority of investors, the company's business strategy, the company's governance structure, and the company's production and operation and other industry information in a timely manner Pass it to the capital market to achieve interaction, and establish a public relationship of mutual trust and consistent interests on this basis.

3. the company adheres to honesty and trustworthiness and standardized operation, the scale of assets continues to expand, and the total assets have increased from 0.377 billion yuan before listing to 1.096 billion yuan at the end of 2011; in 2011, the company's operating income was 0.378 billion yuan, an increase of 25.2 percent over the same period last year; the net profit attributable to shareholders of listed companies was 50.8667 million yuan, an increase of 15.3 percent over the same period last year; various taxes and fees were 34.6353 million yuan.

4. companies create economic benefits while positively rewarding shareholders and investors

Since its listing, with the help of the capital platform, the company has adhered to honesty and trustworthiness and standardized operation, and has made significant development: the business performance has continued to grow steadily, the scale of assets has been continuously expanded, the comprehensive competitiveness has been greatly improved, and the risk prevention ability has also been greatly improved. In the location of the company, the company has become a major taxpayer and has made great contributions to the economic development of the local government and society. While creating economic benefits, the company attaches importance to reasonable returns to investors and actively builds a harmonious relationship with shareholders. To this end, combined with the actual situation of the company's operation, the formulation of a relatively stable profit distribution policy and dividend plan, and actively return to shareholders.

The Company's cash dividends for the last three years are as follows:

Unit: ten thousand yuan

Profit distribution plan for 2011: Based on 104,000,000 shares of the company's total share capital as of December 31, 2011, a cash dividend of RMB 1 (tax included) will be distributed to all shareholders for every 10 shares; at the same time, the capital reserve will be converted into share capital, based on the company's total share capital. 104,000,000 shares are used as the base, and 10 shares are transferred to all shareholders for every 10 shares. After the transfer, the company's total share capital will increase to 208,000,000 shares.

Chapter III Protection of the Rights and Interests of Employees

The development of enterprises can not be separated from employees, employees are the most valuable resources in the process of survival and development of enterprises. The company always adheres to the people-oriented concept, constantly improves the enterprise employment mechanism, improves the working environment and salary of employees through various channels and ways, provides healthy and safe production and living environment for employees, and effectively protects the legitimate rights and interests of employees.

In strict accordance with the labor law, labor contract law and other relevant laws and regulations, the 1. company revised and improved the relevant management system of labor employment and welfare security, combined with the actual situation of the enterprise, adjusted the work and rest time according to the season, signed the labor contract with all employees, paid the housing accumulation fund, handled the social insurance such as medical treatment, pension, unemployment, work-related injury and maternity insurance, and paid various insurance fees on time and in full every month, in accordance with the relevant regulations of the labor department, the labor contract, social insurance and other related procedures for newly hired and resigned personnel shall be handled in a timely manner to ensure that employees enjoy social insurance benefits, so that employees can receive timely assistance in the case of pension, illness, work injury, unemployment, childbirth, etc. And compensation. To enable employees to work in a fair and just environment and seek development.

2. the company's labor union to fully perform the function of safeguarding the legitimate rights and interests of employees, actively communicate with the management and arrange the participation of employee representatives when formulating, modifying or deciding on rules and regulations or other major matters directly related to the vital interests of employees, and discuss and review through the workers' congress; Sign "Collective Contract", "Collective Wage Negotiation" and other documents with the company to further clarify the interests and rights of employees. Through the collection of rationalization proposals, employee birthday seminars, employee performance interviews and other forms, widely listen to employee opinions and suggestions, and accept employee supervision.

3., the company has established a reasonable salary plan and perfect performance appraisal methods, focusing on the performance appraisal of departments and employees, adhering to the idea of "tilting to front-line posts and key posts", reflecting the principle of "more work, more pay and fairness", and effectively stimulate the enthusiasm and creativity of employees. In addition, the company also improves the technical level and income level of employees through "labor competition" and "skill competition.

4. the company attaches great importance to safe production, abides by national laws and regulations, and promotes safe production management. The company has passed GB/T 19001-ISO9001 -2008: 2008 quality management system certification, GB/T 24001-2004 / ISO 14001:2004 environmental management system, GB/T28001-2001 occupational health and safety management system certification. At present, the company's various safety management systems are sound, and employees are regularly provided with safety education and training, including safety production knowledge and fire safety emergency treatment, etc., and large occupational disease hazard warning signs are set up at the production site to provide employees in different positions and different types of work. Equipped with personal protective equipment and emergency rescue facilities, and conduct a comprehensive inspection of the company's production safety from time to time, effectively improve employees' safety awareness and self-protection capabilities.

5., in terms of employee training, the company has established an effective training and development mechanism. In 2011, the company invested 746600 yuan in improving employees' personal knowledge and skills to enhance their career development ability. The company has designated 2012 as the company's "training year". The Human Resources Department, in combination with job responsibilities and job requirements, carefully sorts out training needs, prepares annual training and education plans, and conducts job quality training and special skills training for employees through various methods such as inviting in and going out. In particular, health, safety, career development and vocational skills improvement are taken as important contents of employee training.

6., the company attaches great importance to communication and exchange with employees, and regularly holds employee birthday symposiums. Through internal publications such as "Shentong Style" and "Shentong Network Forum", it has built a bridge between the company and employees, making it an important platform for the company to exchange experience, report information, display achievements, commend advanced and boost morale.

7. carry out various types of cultural and recreational activities to enrich the amateur cultural life of employees. In 2011, the company's trade union organized a number of singing competitions, essay competitions, table tennis matches, basketball matches and other activities to enhance employees' sense of teamwork and collective honor. The 2012 Spring Festival Gala and a one-day tour of foreign employees to Qidong were held to enhance the morale of employees and enhance the cohesion and centripetal force of employees while entertaining.

8. care for employees, help the poor. During the Spring Festival, Mid-Autumn Festival, Double Ninth Festival and other solar terms, the company will issue condolences and gifts to all employees and retired employees, send warmth to sick and needy employees in a timely manner, and create conditions to help employees solve practical difficulties. In 2011, a total of 39500 yuan was given to all kinds of employees with living difficulties and illness, 41600 yuan was given to retired employees, and 171300 yuan was given to trade union members at the end of the year.

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

The company has always attached great importance to the protection of the rights and interests of stakeholders such as suppliers and customers. Especially since its listing, the company's management has put forward the goal of building "six satisfaction projects", namely: creating value for customers and satisfying 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, satisfying society; creating returns for shareholders and satisfying them. Build a respected listed company and promote the sustainable, stable and healthy development of the company.

The company adheres to the principle of mutual benefit and win-win with suppliers, adheres to the policy of "specialized 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 suppliers' secret information And proprietary information; maintain a long-term good cooperative relationship with it to promote win-win development of cooperation. Pay attention to communication with suppliers at ordinary times, hold a supplier product quality meeting every quarter, and hold an annual supplier summary meeting every year. The company has formulated supplier management regulations, which stipulate the evaluation standards for suppliers, including the supplier's enterprise environment, management level, technical quality, product quality and logistics and transportation. According to the comprehensive evaluation of suppliers, all suppliers are graded and evaluated at the annual supplier meeting to encourage suppliers to make positive progress. Implement dynamic management of suppliers, promote healthy competition among suppliers, and promote suppliers to continuously improve product quality and service quality.

Companies to provide customers with high-quality products at the same time, take the initiative to provide services to customers, urgent customer urgency. Collect customer opinions through various channels such as return visits with customers and issuing customer satisfaction questionnaires to understand customer needs and opinions in a timely manner. In 2011, the company distributed 60 questionnaires to customers and received 51 questionnaires returned by customers, with a response rate of 85%. The total number of satisfactory and more satisfactory questionnaires collected accounted for 96.7. The improvement of customer satisfaction largely shows that the company attaches importance to internal management, improves product quality and is recognized by customers through market feedback.

The company's sales staff regularly visit customers and listen to their suggestions and opinions. The company also arranges special personnel to be responsible for after-sales service and timely handle customers' after-sales service requirements. The company can actively and efficiently deal with the technical problems of customers in the process of using products, so as to deal with the requirements of customers in the first time through specialized sales and service personnel, so as to ensure that the rights and interests of customers are not damaged.

Chapter V Environmental Protection and Sustainable Development

The company always adheres to the scientific concept of development, regards environmental protection as an important part of the company's sustainable development, and actively practices environment-friendly and energy-saving development. Strictly abide by the national laws and regulations on environmental protection, formulate a set of environmental protection management system, and formulate an environmental risk emergency plan to prevent environmental risks. The company conscientiously implements the system of preventing and controlling pollution and its public hazards, and strictly implements the "three simultaneous" system of simultaneous design, construction and production of the main project at the same time. In the past three years, there has been no case of environmental violation, no punishment by the local environmental protection department, and full and timely payment of sewage charges. The company is a machinery manufacturing enterprise. The main pollutants discharged in the daily production process are mechanical noise, welding dust, iron scrap solid waste, and domestic wastewater. The company strictly complies with the requirements of the management system and discharges all pollutants up to the standard. The company every year Apply to Qidong Environmental Monitoring Station to evaluate the three indicators of dust, noise and wastewater in the plant area, and the evaluation results all meet the national index requirements. The company also obtained the ISO/14000 environmental management system certification on June 23, 2006 and passed the review in 2011.

In the past three years, the company has continuously increased its investment in environmental protection. Among them, in order to reduce dust, noise and other pollution, the company invested more than 500,000 yuan in October 2009 to purchase a bag dust removal and sandblasting machine for shot blasting and sand removal of product parts; in December 2010, the company invested 192000 yuan to purchase a valve environmental protection coating production line, which not only greatly reduced the pollution of paint to the atmosphere, but also improved the production efficiency. In addition, in order to further beautify the environment of the factory area, seedlings and flowers worth more than 180,000 yuan have also been cultivated in the factory area, creating a comfortable working environment for employees. In 2011, the company invested a total of 1.0524 million yuan in energy conservation and environmental protection.

The company vigorously promotes circular economy and strengthens the comprehensive utilization of resources. During the construction process of the company's fund-raising projects from 2010 to 2011, the company used the concept of circular economy, focused on scientific research personnel according to the characteristics of different product processes, and adopted "low consumption, low emissions, less pollution, recyclable, Recycling and reuse" as the goal, using advanced technology and clean production technology to achieve the purpose of comprehensive utilization of resources and clean production, the annual reduction of solid waste emissions reached more than 300 tons, and it received financial support from the local government's "Energy Conservation and Circular Economy Key Project Plan" for two consecutive years, and received an incentive fund of 85000 yuan.

Chapter VI Safety in Production and Occupational Health

"Without safety, everything is equal to zero". Safe production is the premise and foundation for the survival and development of enterprises, the reliable guarantee for enterprises to achieve benefits, the greatest welfare of employees, and the greatest social responsibility of enterprises. In 2011, the company attached great importance to the management of production safety, fully implemented the leadership responsibility system, and all departments and teams signed a unified production safety responsibility certificate, with clear responsibilities and personnel on duty. Pay attention to safety knowledge training and safety production three-level education, and continuously improve the safety awareness of employees. More than 478 people participated in the three-level education throughout the year. Actively carry out the "Safety Month" activity, during the "Safety Month" activity, organize the company's employees to carry out national safety laws and regulations, safety knowledge question and answer, the number of participants is 685. Post more than 80 safety production publicity pictures, more than 50 publicity slogans (banners), and set up more than 40 safety warning signs in dangerous areas; organize employees to participate in fire fighting and first aid drills for the wounded. Strengthen the inspection and assessment of production safety, adhere to the daily on-site inspection not less than 2 times, and make records; for safety accidents caused by illegal operations, the company adheres to the principle of "four do not let go", the person responsible for the accident shall be notified and punished in accordance with the provisions of the system.

The human resources department of the company improves the ability of risk identification and assessment of key positions through special training. Each division of the company carefully combed the various risks existing in the production process and operation process, and on this basis, improved the process safety technical regulations, safety operation instructions and various accident emergency plans, and further improved the risk identification ability of employees and the operability of the process and safety documents.

The company earnestly carries out occupational health education and prevention work for employees. The company continuously improves the working conditions and working environment of employees by increasing investment, and implements occupational protection measures in workplaces such as toxic and harmful, dust, and noise. Conduct daily monitoring, regular detection and evaluation of occupational hazard factors 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 surveillance files. The company has passed the GB/T28001-2001 occupational health and safety management system certification.

Chapter VII Public Relations and Social Welfare Undertakings

In the process of production and operation, the company attaches importance to maintaining public relations and participating in social welfare undertakings, takes active fulfillment of social responsibility as the core value of the company, pays attention to building harmonious and friendly public relations, and takes into account the interests of the company, shareholders and other related parties., Actively participate in social welfare undertakings, influence and promote the revitalization of the local economy with its own development. 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 actively communicates and contacts with the competent government departments, industry associations and regulatory agencies, and actively cooperates and assists in the law enforcement supervision, inspection, inspection and visit of the relevant departments at a higher level, and does a good job in the reception work. fulfill its own responsibilities and obligations.

2. The company actively participates in social welfare undertakings. In 2011, a total of 1.78 million yuan was donated to Qidong Charity Foundation, Xinjiang Yining County Red Cross Society and other charitable organizations, and employees were organized to donate 350 sets of winter clothes and winter quilts to the students of Golmud Changjiang Source School for Nationalities, sending them to socially disadvantaged groups and people in need. Warmth.

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 global customers with high quality and serialized valve solutions to continue to create maximum value for customers; Grow with our partners, take on the responsibilities given by society, and fulfill more social obligations.

At present, there is still a certain gap between the performance of the company's social responsibility and the relevant provisions of the "Guidelines on Social Responsibility of Listed Companies on the Shenzhen Stock Exchange. It is mainly reflected in the construction of social responsibility system and supervision system. The company will establish a social responsibility system in the future to further improve the corporate social responsibility supervision and management system. Abide by social morality and business ethics, accept the supervision of the public, actively protect the legitimate rights and interests of creditors and employees while pursuing economic benefits and protecting the rights and interests of shareholders, treat suppliers and customers honestly and fairly, actively do a good job in public welfare undertakings such as environmental protection, and strengthen the training and education of employees' social responsibility, so as to promote the coordinated development of the company, society, environment and relevant interest groups, create new wealth for shareholders, employees, customers and society, and promote the coordinated and harmonious development of the company and society.

In the past year, the company's development is facing 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, customers, suppliers and friends from all walks of life and investors for their strong support and love for the company. People from all walks of life and investors are welcome to put forward valuable opinions on this report. 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

Mail:zhangqq@stfm.cn

Board of Directors of Jiangsu Shentong Valve Co., Ltd.

March 13, 2012