Jiangsu Shentong: 2012 Social Responsibility Report

Jiangsu Shentong Valve Co., Ltd.

Social Responsibility Report 2012

Foreword

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

As a backbone enterprise in China's valve industry, in 2012, the company, as always, took "industry serving the country and benefiting mankind" as its corporate mission, adhered to the development strategic goal of "learning, surpassing, leading and building a century-old magic power", and the new product development policy of "no one has me, no one has me, no one has me, no one is good, no one is cheap, no one is cheap and no one is good", and the market strategy, adhering to the market strategy, adhere to the market positioning of "consolidating metallurgy, developing nuclear power, expanding petrochemical, and serving energy" and the innovative service concept of "creating value for users, creating opportunities for employees, creating returns for shareholders, and creating wealth for society". While striving to achieve sustainable development of the enterprise, strive to create shareholder value, protect shareholders' rights and interests, and balance the harmonious development of the country and society, the natural environment and resources, stakeholders such as employees, customers and suppliers also bear corresponding responsibilities, which promotes the comprehensive, natural and coordinated development of the company and society.

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

The 2012 Social responsibility report of Jiangsu Shentong Valve Co., Ltd. was compiled in accordance with the guidelines on Social responsibility of listed companies on the Shenzhen Stock Exchange, the Company Law and other relevant provisions, combined with the actual situation of the company in performing social responsibility, and has been examined and adopted at the 26th meeting of the second session of the Board of Directors of the company.

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

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 208 million yuan. The company is currently a high-tech enterprise recognized by the Ministry of Science and Technology, a vice-chairman unit of China Valve Industry Association, a leader unit of the butterfly valve working group of the National Valve Standardization Technical Committee, a member factory of Baosteel Equipment and Spare Parts Joint Development and Supply Center, an innovative pilot enterprise in Jiangsu Province, Jiangsu Province Top 100 private technology enterprises, energy conservation and emission reduction demonstration enterprises, and Jiangsu Province intellectual property management standardization demonstration enterprises. 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 leads all cadres and employees to innovate 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 PWR nuclear power plants. Through the introduction, digestion, absorption and re-innovation of working ideas, the company has realized the comprehensive localization of nuclear-grade butterfly valves and ball valves, and has become the main supplier of nuclear-grade butterfly valves and ball valves in China. In 2012, under the continuous influence of the international financial crisis, the company's management, in accordance with the annual development goals and strategic plans determined by the board of directors, pioneered and innovated, and made decisive decisions, and put forward the business of "consolidating metallurgy, developing nuclear power, entering petrochemical, and serving energy" Ideas, consolidate the market position of metallurgical special valves, take measures to actively respond to the new situation of national nuclear power development, and track the updated development direction of new nuclear power technology, increase investment in research and development, and develop nuclear power supporting equipment with high parameters, high safety performance, and meeting the requirements of the third-generation nuclear power technology AP1000 standard to cope with the impact and changes brought about by the development of China's nuclear power technology. At the same time, the company also 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, LNG special cryogenic valves, etc., and integrate the core technology and product experience in the fields of metallurgy and nuclear power. Carry out technological research and development and innovation, actively apply it to other fields, expand product application fields, improve business performance, and further enhance the company's ability to resist business risks.

Through the joint efforts of all the cadres and employees of the company over the years, the "Shentong" brand has become a well-known brand in the industry, and the products high quality by the company have been widely praised by users in the industry. In 2012, the company achieved a total operating income of 445.78 million billion yuan, an increase of 18.02 percent over the same period last year, and a net profit of 65.0045 million billion yuan, an increase of 27.79 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 continuously increasing investment; establishes the quality concept of "either do not do it or do it, you must do the best"; Form the business goal of "manufacturing first-class products, creating first-class talents, and creating first-class enterprises. In the process of enterprise growth, the management concept with magic characteristics 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.

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

During the reporting period, the Company fully protected the legitimate rights and interests of all shareholders, especially small and medium-sized shareholders and creditors, by continuously improving its governance structure, standardizing its operation, and strengthening information disclosure management and investor relations management.

1. Continuously Improve the Corporate Governance Structure and Safeguard the Interests of Investors

Since its listing, the corporate governance structure of the company has become more and more perfect, and the system has been continuously improved, forming a set of internal management and control systems with mutual checks and balances and effective internal management and control systems. It has consciously carried out in-depth governance activities, and through comprehensive self-inspection, timely discovered the corporate governance process. Existing deficiencies, analyze the reasons and actively rectify to consolidate the foundation, improve the level of corporate governance, and effectively protect the legitimate rights and interests of all shareholders, especially minority shareholders and creditors. In 2012, the Company continued to promote system construction, further revised the Articles of Association and formulated the Shareholder Return Plan for the Next Three Years (2012-2014) to further safeguard and clarify the arrangements for shareholder returns at the institutional level and further improve the Company's internal control system.

During the reporting period, the operation of the "three meetings" of the general meeting of shareholders, the board of directors and the board of supervisors was continuously standardized, and the previous board of directors and the board of supervisors were held in strict accordance with the regulations, and qualified lawyers were hired to witness the convening of the general meeting of shareholders on the spot. At the same time, the company actively organizes directors, supervisors and senior managers to participate in various trainings organized by Shenzhen Stock Exchange, Jiangsu regulatory bureau of China Securities Regulatory Commission and sponsor institutions, so as to improve the awareness of standardized operation and standardized management, strengthen the understanding of eliminating illegal occupation of funds and illegal guarantee, and better perform the work responsibilities of planning corporate governance and protecting the interests of investors.

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

During the reporting period, the company attached great importance to information disclosure, strictly implemented the relevant management system of information disclosure, adhered to the principles of openness, fairness and impartiality in the work of information disclosure, ensured that the information disclosure was true, complete, accurate and timely, and there was no selective information disclosure behavior, which ensured the shareholders' right to know about the company's major matters and operation. The Company formulates and strictly implements the Management System for Information Disclosure Affairs, the Accountability System for Major Errors in Annual Report Information Disclosure and the Management System for Investor Relations, and the Office of the Board of Directors is responsible for the management of information disclosure affairs and investor relations. At the same time, the company has established an effective channel to communicate with investors, set up a dedicated telephone and a dedicated E-mail to accept investor consultation, the company's website has an investor relations column, and at the same time, special personnel are arranged to answer investors' questions on the "interactive easy" platform, interact with investors, investors can learn about the company from multiple channels.

In 2012, the company disclosed a total of 38 periodic reports and temporary announcements in accordance with regulations, so that investors can fully understand the company's operating conditions in a timely manner. After the 2011 annual report was announced to the public, the company also held the 2011 online performance briefing, the company's chairman 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 Africa, Audit Manager Mr. Hong Xuechao, and Huatai United Securities Co., Ltd. Sponsor Representative Mr. Ji Ping attended the performance briefing. At the briefing, the company's directors and executives gave detailed answers to questions raised by investors.

3. companies to develop a positive dividend policy to ensure a stable return on investment for shareholders.

The company has formulated a clear profit distribution policy and revised the Articles of Association to adhere to the principle of rewarding shareholders while steadily increasing economic benefits. During the reporting period, the company formulated the "Shareholder Return Plan for the Next Three Years (2012-2014)" in accordance with the China Securities Regulatory Commission's "Notice on Further Implementing the Relevant Requirements for Cash Dividends of Listed Companies" (Su Zheng Jian Company Zi [2012] No. 276) document, in addition, the relevant provisions of the "Articles of Association" concerning profit distribution have been revised, and the "Shareholder Return Plan for the Next Three Years (2012~2014)" has been formulated. The revised profit distribution policy, standards and proportions are clear and clear, and the conditions and procedures for adjusting or changing the profit distribution policy are compliant and transparent, fully protecting the legitimate rights and interests of small and medium investors.

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

Unit: ten thousand yuan

2012 profit distribution plan: based on the total share capital of 208,000,000 shares after the closing of the Shenzhen Stock Exchange on December 31, 2012, a cash dividend of 0.50 yuan (including tax) will be distributed to all shareholders for every 10 shares, totaling 10,400,000.00 yuan. The Company did not convert capital reserve to share capital in 2012. The proposal will be implemented after being reviewed and approved by the 2012 annual general meeting of shareholders.

Chapter III Protection of the Rights and Interests of Employees

The company regards employees as the most valuable resource of the company, constantly improves the employment mechanism of the enterprise, improves the working environment and salary of employees through various channels and ways, so as to stimulate the enthusiasm and creativity of every employee, provide opportunities and space for sustainable development for employees, and effectively safeguard the legitimate rights and interests of employees.

The 1. 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, further revise and improve the relevant management system of labor employment and welfare security; adjust the work and rest time according to the actual situation of the enterprise; sign the labor contract with all employees, and clarify the rights and interests of employees and the obligations to be performed. Strictly implement the relevant national regulations on social insurance, pay housing provident fund, handle social insurance such as endowment insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance, etc., pay various insurance fees on time and in full every month, and timely handle labor contracts, social insurance and other related procedures for newly hired and resigned personnel in accordance with the relevant regulations of the labor department to ensure that employees enjoy social insurance benefits, to enable employees to receive timely help and compensation in the case of pension, illness, work injury, unemployment, childbirth, etc., and to implement paid annual leave and other benefits, so that employees can work and seek development in a fair and just environment.

The 2. company attaches great importance to production safety, complies with national laws and regulations, and actively promotes production safety management. The company has passed the certification of GB/T 19001-ISO9001:2008 quality management system, GB/T 24001-2004 / ISO 14001:2004 environmental management system and GB/T28001-2001 occupational health and safety management system. The company always puts the safety of employees in the first place, firmly establishes the idea of "safety production responsibility is more important than Mount Tai", and equips employees with necessary labor protection articles and protection facilities for different positions. The safety supervision department regularly conducts a comprehensive investigation of the company's safety production, and finds out hidden dangers in time, eliminates hidden dangers and ensures safe production through regular monthly safety production work meetings.

3. company always adhere to the people-oriented, pay attention to the health of employees. The company regularly organizes all employees to have physical examinations, and if problems are found, they will be re-examined in time; in summer, measures to prevent heatstroke and cool down are taken. With the use of new employees' dormitories, all the accommodation employees live in spacious rooms. The company has installed air conditioners, televisions and water heaters in each dormitory, which has greatly improved the living conditions of employees.

4. the company to establish a reasonable compensation program and improve the performance appraisal methods. Pay the wages of employees on time and in full every month, and plan to increase the wages and benefits of employees. In the context of the continuous increase of social price levels, increase the food subsidies of employees to solve the worries of employees and reduce the pressure of life caused by rising prices. At the same time, the company also improves the technical level and income level of employees through "labor competition" and "skill competition.

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

6. the same time, the company attaches great importance to strengthening communication and exchange with employees. It holds regular birthday symposiums for employees, establishes internal publications "Shentong Elegance" and "Shentong Network Forum", opens the company's website and OA automated office system, etc., and builds a bridge between the company and employees, making it an important platform for the company to exchange experiences, 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. The company is equipped with entertainment venues for employees, such as book reading room, table tennis room, basketball court, etc. The company's labor union actively organizes various forms of activities on holidays, such as singing competitions, essay competitions, table tennis matches, basketball matches, etc., and monthly birthday symposiums are held to enable employees to experience the warmth of the company's big family and enhance the cohesion of employees. The sense of teamwork and collective honor. At the same time, activities such as the 2013 Spring Festival Gala and a one-day tour to Shanghai were held to enhance the morale of employees and enhance their cohesion and centripetal force while entertaining.

8. care for employees, help the poor. The company sends condolences and gifts to all employees during the Spring Festival, Dragon Boat Festival, Mid-Autumn Festival and other festivals, sending the warmth of the company into the hearts of employees.

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

As a member of the society, the company always adheres to honest cooperation and common development with suppliers and customers, and fully respects and protects the legitimate rights and interests of suppliers and customers. Especially since its listing, the company's management has put forward the goal of building "six satisfaction projects", namely: to create value for customers and satisfy customers; To achieve progress and satisfaction for suppliers; Create opportunities for employees and satisfy employees; create taxes for the government to satisfy the government; create wealth for society to satisfy society; create returns for shareholders to satisfy shareholders. Build a respected listed company and promote the sustainable, stable and healthy development of the company.

In line with the principle of win-win cooperation and common progress with suppliers, the company adheres to the policy of "specialized production and social cooperation", 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 long-term good cooperative relations with them to promote win-win cooperation and development. 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 a supplier management system, which stipulates the evaluation criteria 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 develop and progress. Implement dynamic management of suppliers, promote healthy competition among suppliers, promote suppliers to continuously improve product quality and service quality, and achieve common progress.

The company provides customers with high quality products at the same time, take the initiative to provide services for customers, urgent customer urgent. Through regular customer return visits, the issuance of "customer satisfaction questionnaire" and other channels to solicit customer opinions, timely understanding of customer needs and opinions, the company at the end of each year to all customers to carry out customer satisfaction survey activities, using the method of weight calculation, to obtain customer satisfaction, as an important basis for annual management review and service improvement.

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

Chapter V Environmental Protection and Sustainable Development

The company has always attached great importance to environmental protection and pollution prevention and control, actively responded to the country's call for building an environment-friendly and resource-saving society, fulfilled its corporate environmental protection responsibilities, strictly abided by national environmental protection laws and regulations, and formulated a complete set of Environmental protection management system, and formulated environmental risk emergency plans 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 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, domestic wastewater, etc. The company strictly follows the requirements of the management system and discharges all pollutants up to the standard. The company every year All apply to Qidong Environmental Monitoring Station to evaluate the three indicators of dust, noise and wastewater in the plant area, and the evaluation results meet the national index requirements. The company has obtained the ISO/14000 environmental management system certification on June 23, 2006 and passed the review in 2011.

Since its listing, the company has continuously increased its investment in environmental protection. Through the purchase of bag dust removal and sandblasting machine, environmental protection coating production line and other equipment, the pollution of dust and paint to the atmosphere is greatly reduced, and the production efficiency is also improved. In addition, in order to further beautify the factory environment, the company has also cultivated a large number of seedlings and flowers in the factory area, creating a comfortable working environment for employees.

The company vigorously promotes circular economy and strengthens the comprehensive utilization of resources. In the construction process of the company's fund-raising project in 2012, the company used the concept of clean production, focused on the characteristics of the process flow of nuclear power products, concentrated scientific research personnel, adopted advanced technology and clean production technology through public bidding, and realized the nuclear power ball valve workshop The purpose of clean production has improved the working environment of employees and increased labor productivity, for two consecutive years, it has received financial support from the local government's "Energy Conservation and Circular Economy Key Project Plan". In 2012, it received a total of 40000 yuan in government clean production special incentive funds.

Chapter VI Safety in Production and Occupational Health

"Without safety, there is nothing." Safety production is the prerequisite and foundation for the survival and development of an enterprise, a reliable guarantee for the realization of benefits, the greatest welfare of employees, and the greatest social responsibility of an enterprise. The company attaches great importance to the management of production safety, sets up a safety supervision department to be responsible for the company's production safety, fully implements the leadership responsibility system, and all departments and teams sign a unified certificate of responsibility for production safety, with clear responsibilities and people on duty. The safety supervision department, a full-time safety production management department, is responsible for safety knowledge training and three-level safety production education, and continuously improve the safety awareness of all employees. The company passed the GB/T28001-2001 occupational health and safety management system certification in June 2010.

In order to 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 and standardized consulting services for safety production management, which has greatly improved the company's ability of safety production management. For safety hazards, the Safety Supervision Department organizes relevant departments to formulate rectification plans, earnestly implement them, do not go through the scene, have clear rewards and punishments, and improve the effect of review and rectification. The Human Resources Department of the Company improves the ability of identifying and evaluating safety risks 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, safe operation instructions and various accident emergency plans, and further improved the risk identification ability of employees.

In 2012, the safety supervision department organized the company's employees to carry out questions and answers on safety regulations and safety knowledge, with 685 participants, more than 110 safety production publicity pictures, more than 30 publicity slogans (banners) and more than 60 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 company earnestly carries out occupational health education and prevention work for employees. Continuously improve the working conditions and working environment of employees by increasing investment, and implement occupational protection measures for toxic and harmful, dust, noise and other workplace. 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. In the process of safety production standardization construction, the company managed the company's safety production management system according to the PDCA cycle model, and paid attention to the continuous improvement of safety production management. Through hard work, it successfully passed the safety production standardization of machinery manufacturing enterprises in September 2012. Level 3 enterprise standard acceptance. In 2013, the company will continue to improve the company's safety production performance, improve the level of safety production management, truly achieve continuous improvement, and strive to achieve the company's safety production standardization secondary enterprise standard implementation task.

Chapter VII Public Relations and Social Welfare Undertakings

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

1. The company 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 2012, a total of 1.03 million yuan was donated to the Qidong Charity Foundation, which sent warmth to the socially disadvantaged and needy people.

As a professional supplier and service provider of special valves, the company will continue to expand its market share with professional production and continuous innovation capabilities, and is committed to providing global customers with high quality and serialized valve solutions, and continue to create maximum value for customers. Let customers continue to be satisfied; grow together with our partners, assume the responsibility given by the society, and fulfill more social obligations.

In 2013, the company will continue to improve its social responsibility, make continuous efforts in accordance with the relevant provisions of the guidelines on Social responsibility of listed companies in Shenzhen Stock Exchange, focus on improving the construction of social responsibility system and supervision system, further improve the supervision and management system of corporate social responsibility, abide by social morality and business ethics, and accept the supervision of the public, While pursuing economic benefits and protecting shareholders' rights and interests, actively protect the legitimate rights and interests of creditors and employees, treat suppliers and customers in good faith and fairness, actively do a good job in public welfare undertakings such as environmental protection, and strengthen training and education on employees' social responsibility, so as to promote the coordinated development of the company and society, the 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. In 2013, the company will further implement the guidelines on Social responsibility of listed companies on the Shenzhen Stock Exchange, constantly improve the corporate social responsibility management system, and carry out corporate social responsibility throughout all aspects of enterprise operation and management. consciously accept the supervision of the government and the public, and realize the harmonious development of enterprises and society. People from all walks of life and investors are welcome to put forward valuable opinions on this report to help the company continue to improve in fulfilling its social responsibilities. We will listen carefully to your feedback and express our heartfelt thanks.

Our contact information:

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

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

Tel: 0513-83335899

Fax: 0513-83335998

Mail: zhangqq@stfm.cn

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

March 15, 2013