Jiangsu Shentong: 2013 Annual Social Responsibility Report

Jiangsu Shentong Valve Co., Ltd.

Social Responsibility Report 2013

Foreword

"Jiangsu Shentong Valve Co., Ltd. Social Responsibility Report 2013" is the third public social responsibility report released 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, 2013 to December 31, 2013. 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, the company, as always, takes "industry serving the country and benefiting mankind" as its corporate mission, adheres to the development strategic goal of "single champion, industry pioneer, respected by others, and 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 I turn, adhering to the market strategy of" high-tech, high-end products serving high-end customers ", adhering 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 committed to realizing the sustainable development of enterprises, striving to create shareholder value and protecting shareholders' rights and interests, for the harmonious development of economy and society, the balance of natural environment and resources, employees, customers, suppliers and other stakeholders also bear 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 exchange with all sectors of society, and also hope to accept the supervision of the society to promote the company's better and faster development.

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

We would like to publish the relevant information of the company's social responsibility through the legal information disclosure website Juchao Information Network (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 special valves of blast furnace gas full dry dust removal system, converter gas dust removal and recovery system, coke oven flue gas dust removal system, gas pipe network system, nuclear butterfly valve, nuclear ball valve, non-nuclear butterfly valve, non-nuclear ball valve and nuclear power supporting equipment used in nuclear power plants, and used in coal chemical industry, ultra (ultra) critical thermal power, LNG ultra-low temperature valves and other products research and development, production and sales.

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 2013, the company continued to focus on the market positioning of "consolidating metallurgy, developing nuclear power, entering petrochemical, and serving energy", and improved the production and work efficiency of all employees through the implementation of "lean production project" and "collaborative office OA system construction" projects; Through the sorting and improvement of the "internal control management system", standardize management; through the implementation of major special projects, improve the quality of all employees and improve the company's core competitiveness; adopt the product development strategy of independent research and development and the combination of production, education and research in scientific research institutes, seize the opportunity to expand new areas of products and upgrade products, and rely on scientific and technological innovation to strengthen and expand enterprises.

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 2013, the company achieved a total operating income of 511.1192 million billion yuan, an increase of 14.66 percent over the same period last year, and a net profit of 65.8946 million billion yuan, an increase of 1.37 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 business philosophy with magic characteristics continues to lead the enterprise and all employees, and become 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, in strict accordance with the requirements of the Company Law, the Securities Law and the relevant laws and regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, the company continuously improved its governance structure, improved its internal control system, and standardized company operations. strengthen information disclosure management and investor relations management to fully protect the legitimate rights and interests of all shareholders, especially small and medium shareholders and creditors.

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

Since its listing, the corporate governance structure of the company has become more and more perfect, and the internal control system has been continuously improved, forming a set of mutual checks and balances and effective internal control system. It has consciously carried out in-depth governance activities. Through comprehensive self-examination, it has found out the deficiencies in the process of corporate governance in time, analyzed the reasons and actively rectified, so as to consolidate the foundation and improve the level of corporate governance. In 2013, the company's internal control systems were effectively implemented and the system was continuously improved, including the formulation and implementation of the "Quality Accident Handling System", "Special Reward Measures for Employees to Participate in Amateur University Studies", "Overtime and Duty Management Measures (Trial)", "Letter Express Business Management Regulations", "Independent Intellectual Property Rights Construction and Reward Methods, Equipment Maintenance Management Measures, Staff Retirement and Retirement Management Regulations, and Regulations on Payment and Invoice Management of Correspondent Units", "Certain Provisions on Personal Borrowing of Employees" and other internal control systems, effectively protect the legitimate rights and interests of all shareholders, especially small and medium shareholders and creditors.

The company actively organizes directors, supervisors and senior 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. standardize the operation of the "three meetings" and ensure the legitimate rights and interests of shareholders

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 standardized, and the previous general meetings of shareholders, the board of directors and the board of supervisors were held in strict accordance with the regulations. The company insists on treating all shareholders fairly and effectively protecting the legitimate rights and interests of shareholders, especially small and medium shareholders. The "three meetings" are held by on-site meetings, communication voting, online voting and other meetings, so that more shareholders can participate in the general meeting of shareholders and ensure that shareholders have the right to know, participate and vote on major issues of the company. At the same time, qualified lawyers are hired to witness the convening of the general meeting of shareholders.

In 2013, the company held a total of 3 general meetings of shareholders (1 annual general meeting of shareholders and 2 extraordinary general meetings of shareholders). Among them, the annual general meeting of shareholders adopted a combination of on-site voting and online voting to vote. The board of directors was held 8 times (the second board of directors was held 4 times, the third board of directors was held 4 times), and the board of supervisors was held 6 times (the second board of supervisors was held 3 times, the third board of supervisors was held 3 times). In the spirit of being responsible to shareholders and seeking truth from facts, the independent directors of the company actively participated in the board of directors, the professional committee of the board of directors and the general meeting of shareholders held in 2013, made independent judgments based on professional ability and experience, put forward independent opinions, and voted on various proposals in accordance with the prescribed procedures, so as to play a positive role in making correct and scientific decisions for the board of directors.

3. strictly fulfill the obligation of information disclosure and continuously strengthen the management of investor relations.

During the reporting period, the company disclosed the company's information in a timely, accurate and complete manner in accordance with relevant regulations. In the information disclosure work, it adhered to the principles of openness, fairness and impartiality, and there was no selective information disclosure behavior, which ensured the shareholders' right to know the company's major matters and operations. 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, and set up an investor relations column on the company's website. at the same time, special personnel are arranged to answer investors' questions on the "interactive easy" platform, to maintain effective interaction with investors, all investors have the opportunity to learn about the company from a variety of channels.

In 2013, the company disclosed a total of 36 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 2012 annual report was announced to the public, the company also held the 2012 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.

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

The company has formulated a clear profit distribution policy, taking into account the stage of the company's development, operating conditions, profit scale, through cash dividends and capital provident fund to increase the share capital and other profit distribution plans, to give shareholders a reasonable return on investment, so that investors have formed a stable return expectations. The company revised the requirements for cash dividends in the "Articles of Association" and formulated the "Shareholder Return Plan for the Next Three Years (2012~2014)". The revised profit distribution policy, standards and proportions are clear and clear, and the profit distribution policy is adjusted or The changed conditions and procedures are compliant and transparent, and fully protect the legitimate rights and interests of small and medium investors.

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

Unit: ten thousand yuan

Profit distribution plan for 2013: based on the total share capital of 208,000,000 shares after the closing of the Shenzhen Stock Exchange on December 31, 2013, a cash dividend of 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 use capital reserve to increase its share capital in 2013. The proposal will be implemented after being reviewed and approved by the 2013 annual general meeting of shareholders.

Chapter III Protection of the Rights and Interests of Employees

The company always adheres to the people-oriented concept, regards employees as valuable resources for the survival and development of the enterprise, links the development of employees with the development of the enterprise, and constantly improves the employment mechanism of the enterprise. through a variety of channels and ways to improve the working environment of employees, improve the salary and treatment of employees, in order to stimulate the enthusiasm and creativity of every employee, provide employees with opportunities and space for sustainable development, 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, we will 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 the company and employees shall bear the obligations and enjoy the rights according to the labor contract. Strictly implement the relevant national regulations on social insurance, pay housing provident fund, old-age insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and other social insurance, pay all kinds of insurance fees on time and in full every month, and timely handle the labor contract, social insurance and other related procedures of 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 has established and implemented a performance evaluation mechanism of taking up posts according to ability and receiving salary according to performance, scientifically set up an evaluation index system, regularly evaluate and objectively evaluate the performance of all responsible units and employees within the enterprise, and take the evaluation results as the basis for determining employees' salary, promotion, evaluation, demotion, post transfer, dismissal, etc. Through a special inspection team to evaluate the effectiveness of business work in real time, timely reward and punishment. The company provides employees with stable and competitive salaries according to the industry and the location of the company, and implements a piece-rate salary system for front-line production workers; the salaries of management and process technology, research and development, sales and other employees are composed of basic salary and performance salary, and the salary system of monthly performance appraisal is implemented. The company makes corresponding adjustments in accordance with the changes in the salary level of the same industry and the local human resources market, and forms a performance appraisal and incentive and restraint mechanism based on ability and performance, so as to attract and retain outstanding talents and provide human resources for the company's development. Guarantee.

The 3. company attaches great importance to production safety, complies with national production safety laws and regulations, pays attention to the physical and mental health of employees, 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 is a general machinery manufacturing enterprise, so it pays more attention to safety production risk assessment. For different positions, it is equipped with necessary labor protection articles and protection facilities for employees. It has set up a safety supervision department to be responsible for safety production, equipped with full-time safety production posts and safety officers, established relevant systems and risk prevention emergency plans, and investigated and identified the links prone to safety production accidents in the production and operation process, through regular monthly work safety meetings, effectively prevent and control risks.

4. company always adhere to the people-oriented, pay attention to the physical and mental health of employees. The company's business scale continues to expand, and the number of employees is gradually increasing. The company regularly organizes all employees to conduct physical examinations and re-check and see a doctor when problems are found; in summer, measures to prevent heatstroke and cool down are taken. With the use of new employees' dormitories, the accommodation employees live in spacious rooms. The company has installed air conditioners, televisions and water heaters in each newly-built dormitory, which has greatly improved the living conditions of employees. 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.

5. company attaches great importance to the cultivation and reserve of talents. In terms of employee training, the company has established an institutional training system and introduced rich online teaching resources for employees to learn and improve their skills. The company's human resources department formulates a detailed training plan at the beginning of the year according to the needs of the company's development every year, and carries out targeted training courses such as new employee induction training, project management, technical research and development, business consulting, etc. In 2013, according to the company's annual work objectives and requirements, all training tasks were basically completed. 48 trainings were organized in the form of internal lectures and external lecturers throughout the year, with 1881 participants. Organize 60 trainings in the form of professional qualification certification, job skills training, management knowledge, technical knowledge, business knowledge, etc. in the form of outsourcing, with 244 participants, and obtain 125 professional qualification certificates and 48 training certificates. In the whole year, 125 new personnel qualification certificates were established and reviewed, and 48 people obtained training certificates. In 2014, we will continue to scientifically and reasonably formulate the annual training plan according to the needs of all aspects, formulate the monthly training work plan in strict accordance with the annual training and organize and implement various internal and external trainings, so as to continuously improve the quality of all staff through training and reserve human resources for the development of the company.

6. company attaches great importance to strengthening communication and communication with employees. The company regularly holds employee birthday symposiums, establishes an internal publication "Shentong Elegance", 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 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 trade union actively organizes various forms of activities on holidays, such as singing competitions, essay competitions, table tennis matches, and basketball matches. The monthly birthday symposium enables employees to experience the warmth of the company's big family and enhances their cohesion, sense of teamwork and sense of collective honor. At the same time, activities such as the 2013 Spring Festival Gala and Haining one-day tour were held. Through these activities, apart from the intense production work, the body and mind of employees were adjusted and the emotional exchanges between employees were promoted. In 2013, the trade union organized 6 employee labor competitions and 8 employee cultural activities, and organized 3 democratic reviews of middle-level managers.

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

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

Suppliers are important partners 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, realizes development and progress for suppliers, fully respects the legitimate rights and interests of suppliers, strictly protects the secret and proprietary information of suppliers, and maintains a long-term good cooperative relationship with them. Promote win-win cooperation and development. Pay attention to communication with suppliers at ordinary times, regularly hold supplier product quality meetings, and hold an annual supplier summary meeting every year. The company has established a stable supplier supply channels, the need to purchase raw materials are divided into categories, extensive collection, screening of supplier information, its economic strength, quality management capacity, delivery capacity and supply price evaluation, to ensure that the procurement of raw materials to meet the needs of the company's operations. The company has established a database of qualified suppliers and conducts continuous supervision and management and regular evaluation of suppliers in subsequent cooperation. The company monitors the daily procurement, the control department reviews the quantity and price of the purchase, supervises the compliance and legality of the purchase contract, and the finance department pays the suppliers on time according to the purchase contract and the arrival of materials. Implement dynamic management of suppliers, promote healthy competition among suppliers, promote suppliers to continuously improve product quality and service quality, and achieve common progress.

Creating value for customers is the starting point and foothold of all our work. We take customer satisfaction as the criterion to measure the work of the enterprise, attach importance to the win-win relationship with customers, and take the initiative to provide services for customers while providing high quality products for customers. Each division of the company has set up a quality control department, with special personnel responsible for the quality management of each process link of on-site production and operation, ensuring the quality control of material procurement process and product production process, ensuring that only qualified materials can be put into production, qualified materials can flow into the next production link, qualified finished products can be put into storage or sold out of the factory, and preventing and controlling the occurrence of unqualified products. The company's quality assurance office supervises and assesses the company's production and operation quality management and control activities, supervises, inspects and maintains the operation and implementation of quality, environment, occupational health and safety, measurement management, API and other management systems, understands the customer's product quality requirements, and handles the customer's product quality feedback information in a timely manner. In addition, the company collects customer opinions through various channels such as regular customer return visits and the issuance of "Customer Satisfaction Questionnaire" to understand customer needs and opinions in a timely manner. The company conducts customer satisfaction surveys to all customers at the end of each year. The method of dividing weights is used to calculate customer satisfaction, which serves 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 also has perfect after-sales service measures, set up after-sales service department and equipped with professionals to provide quality service 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. As a company with a high sense of social responsibility, the company always regards environmental protection as an important part of the company's sustainable development, and actively responds to the country's call for building an environment-friendly and resource-saving society, Fulfill the corporate environmental protection responsibilities, adhere to technological innovation, energy saving and emission reduction, and strive to minimize the impact of the company's development on the environment. Through the introduction of advanced energy-saving equipment and optimization of production processes, energy consumption is reduced, while reducing waste emissions. The company strictly abides by the national laws and regulations on environmental protection, and has formulated a set of environmental protection management system and environmental risk emergency plan to prevent environmental risks. During the reporting period, the company did not have any environmental violations, was not punished by the environmental protection department, and paid the sewage charges in full on schedule.

The company vigorously promotes circular economy and strengthens the comprehensive utilization of resources. The company continuously enhances employees' awareness of energy saving, consumption reduction and environmental protection through publicity boards, internal newspapers, banners and other forms, and cultivates employees to consciously save electricity, water, paper and oil in their work and life. The company has established a complete paperless office system through OA office system, ERP resource management system and other software, which greatly saves the company's office cost. Through the double-sided use of office paper, paper reuse, etc., save a lot of paper, ink cartridge consumption, reduce resource occupation, put an end to waste; save communication costs and mailing costs, but also reduce the use of telephone, fax and mail contact information on social communication lines and postal resources occupation. Let every employee start with the little things around him, save company and social resources, and contribute to promoting energy conservation and emission reduction, advocating green life, building ecological civilization, and building an environment-friendly society.

In the construction process of the fund-raising project in 2013, the company used the concept of clean production, focused on the characteristics of the technological process of nuclear power products, concentrated scientific research personnel, adopted advanced technology and clean production technology through public bidding, and realized the clean production of the nuclear power ball valve workshop The purpose of improving the working environment of employees and improving labor productivity, for two consecutive years, it has received financial support from the local government's "Key Project Plan for Energy Conservation and Circular Economy.

Chapter VI Safety in Production and Occupational Health

"Without safety, everything is equal to zero." 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 production safety management, sets up a safety supervision department to be responsible for the company's production safety supervision and management, fully implements the leadership responsibility system, and all departments and teams sign a unified production safety responsibility letter, clarify responsibilities, and arrive at the post. The Safety Supervision Department insists on daily safety inspections, checks hidden dangers, corrects the "three violations", finds problems and solves them in time, eliminates the company's hidden safety hazards in the bud, and lays the foundation for the continuous improvement of the company's safety production.

In order to achieve on-site safety production management with high standards and strict requirements, the company hired professional intermediary agencies to provide the company with guidance and standardized consulting services for safety production management, which greatly improved the company's safety production management capabilities. The safety supervision department organizes relevant departments to formulate rectification plans for potential safety hazards rectification suggestions, earnestly implement them, do not go through the scene, clearly distinguish 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.

The company conscientiously implements a series of decisions and deployments of the State Council on strengthening production safety, and in accordance with the general requirements of full coverage, zero tolerance, strict law enforcement, and emphasis on practical results, comprehensively and in-depth investigation and management of hidden production safety hazards, plug safety supervision loopholes, and strengthen safety production measures. In 2013, the company conducted 6 safety education and training sessions with 552 participants. The number of new employees receiving the company's three-level education is 131. In 2013, a total of 28 special inspections of various types were organized, with daily inspections twice a day. The hidden dangers of accidents found were basically rectified on time, with a rectification rate of 96%. In 2014, the company's work safety objectives: zero injury, zero accident, zero pollution. In accordance with the requirements of the safety production standardization enterprises of machinery manufacturing enterprises, strengthen the company's safety production management, and truly realize the standardization of operation, on-site standardization, and management standardization.

Chapter VII Public Relations and Social Welfare Undertakings

The stable development of the company is inseparable from the support of 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 maintains communication and contact with the competent government departments, industry associations, regulatory authorities and relevant media, and actively cooperates and assists in the supervision and inspection proposed by relevant departments in accordance with the requirements of laws and regulations. fulfill its own responsibilities and obligations.

2. Operating in good faith, paying taxes according to law, and contributing 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 social responsibilities and giving back to the society. For a long time, it has truthfully declared taxes and paid taxes in a timely manner. The company has become one of the major taxpayers in Qidong City for many years, strongly supported the national and local finance, and has been commended and rewarded by local government departments for many times.

3. The company actively participates in social welfare undertakings. The company and its employees actively donate to social welfare undertakings and charities, and carry out activities such as poverty alleviation pairing, caring for students, and unpaid blood donation. In addition, the company maintains communication with all sectors of society, carries out cultural performances, harmonious community construction and other activities, and has achieved good social impact. In 2013, a total of 750000 yuan was donated to the Qidong Charity Foundation, sending warmth to the socially disadvantaged and needy people.

The growth of the company and the active social responsibility of the enterprise complement each other and are inseparable. 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 2014, the company will continue to accelerate technological innovation, improve the level of customer service, improve customer satisfaction, and create more value for shareholders. Pay attention to customer relationship management and investor relationship management, adhere to the "people-oriented", promote the construction of corporate culture and human resource management innovation, effectively protect the rights and interests of employees, and provide employees with a broader career development space. Actively assume social responsibility, humbly accept the supervision of all sectors of society, constantly improve the construction of the company's social responsibility management system, strengthen communication and exchanges with various 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 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 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 16, 2014