Jiangsu Shentong: 2014 Social Responsibility Report

Jiangsu Shentong Valve Co., Ltd.

Social Responsibility Report 2014

Foreword

"Jiangsu Shentong Valve Co., Ltd. Social Responsibility Report 2014" is the fourth public 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, 2014 to December 31, 2014, which truly and objectively reflects the important information of the Company in fulfilling its social responsibility in its operation and management activities, from all aspects of the interpretation of corporate social responsibility awareness and understanding. The content includes the overall development of the country and society, the natural environment and resources, as well as the responsibilities of shareholders, suppliers, customers, employees and other stakeholders. Since its listing in 2010, the company has always put the awareness and concept of social responsibility through all aspects of the company's development strategy, production, operation and management. In practice, it has continuously deepened reforms, strengthened management, determined innovation, accelerated development, and strictly abided by social ethics. Business ethics, accept 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, and takes "manufacturing first-class products, creating first-class talents, creating first-class enterprises, and creating a century-old magic power" as its goal, adhere to the market positioning of "consolidating metallurgy, developing nuclear power, expanding petrochemical, and serving energy" and the corporate purpose of "creating value for users, creating opportunities for employees, creating returns for shareholders, and creating wealth for society", and adhere to the development idea of "relying on technology to make the company stronger, Relying on management to make the company solid, relying on marketing to make the company bigger, and relying on talents to seek the development of the company, insist on serving high-end customers with high-tech and high-end products, while committed to achieving sustainable development of the company, striving to create shareholder value, and protecting shareholders' rights and interests, while maintaining the harmonious development of the economy and society, the balance of the natural environment and resources, employees, customers, and suppliers Stakeholders such as suppliers also assume corresponding responsibilities, which promotes the comprehensive, natural and coordinated development of the company and society.

We hope that this report can serve as a bridge for communication and 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 compiled in accordance with the "Guidelines for the Social Responsibility of Listed Companies on the Shenzhen Stock Exchange", "Guidelines for the Standardized Operation of Listed Companies on the Small and Medium-sized Enterprise Board of the Shenzhen Stock Exchange" and other relevant regulations, combined with the actual situation of the company in fulfilling its social responsibilities. Deliberated and approved at the eleventh meeting of the third board of directors.

This report is in Chinese and is published in the Company's statutory information disclosure website Juchao Information Network (www.cninfo.com.cn) on the Company's performance of social responsibility.

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 provincial innovative enterprise, a provincial demonstration enterprise for energy conservation and emission reduction, and an excellent demonstration enterprise for the standardization of provincial intellectual property management. It is the vice chairman unit of China Valve Industry Association, the member unit of National Valve Standardization Technical Committee, the leader unit of butterfly valve working group of National Valve Standardization Technical Committee, the member unit of Baosteel equipment and spare parts joint development and supply center, the member unit of material supply network of China Petrochemical Corporation, and the member unit of CGN nuclear power equipment localization joint research and development center. It has the design and manufacturing license of civil nuclear safety equipment, the manufacturing license of special equipment for pressure vessels and pressure pipeline components, TS-A1(2) and TS-A2(2), the material supplier access certificate of China National Petroleum Corporation, the registration certificate of marine valve approved by BV factory of French classification society, and the German TUV fire protection certificate. Through the American Petroleum Institute API 6D, API609 certification and ISO9001 quality management system, ISO10012 measurement management system, ISO14001 environmental management system, GB/T28001 occupational health and safety management system certification.

The company is mainly engaged in the special valves of blast furnace gas all-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 its supporting equipment applied to nuclear power plant, as well as the R & D, production and sales of products such as coal chemical industry, ultra (ultra) critical thermal power, LNG ultra-low temperature valve and so on.

In 2014, the company's management closely focused on the annual development goals set by the board of directors, adhered to the market positioning of "consolidating metallurgy, developing nuclear power, expanding petrochemicals, and serving energy", and further through the implementation of lean production projects and the promotion of smart magic consulting projects. Optimize resource allocation, increase corporate vitality through management innovation, deepen internal management innovation, improve efficiency, reduce costs, and strengthen technology research and development and product line extension, on the basis of consolidating the market share of traditional advantageous industries and products, we continue to explore new markets and new customers. With the continuous appearance of the initial investment effect and the continuous strengthening of cooperation with core customers, the market goals of various business areas have achieved results. In 2014, the company achieved a total operating income of 465.6064 million billion yuan, down 8.90 percent from the same period last year, and a net profit of 53.8165 million billion yuan, down 18.33 percent from the same period last year.

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

During the reporting period, the Company continued to improve its governance structure, operate in good faith, establish and improve its internal management and control system, and effectively improve the level of governance of the Company. The general meeting of shareholders, the board of directors, the supervisory board and the managers form a corporate governance structure with clear powers and responsibilities, mutual checks and balances, mutual coordination and complementarity. In addition to the Articles of Association, the Company has also formulated the Rules of Procedure of the General Meeting of Shareholders, the Rules of Procedure of the Board of Directors and the Rules of Procedure of the Board of Supervisors, which clarify the responsibilities and working procedures of the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors and the management, and ensure that decision-making, implementation and supervision are separated from each other.

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

Since its listing, the operation of the "three meetings" of the general meeting of shareholders, the board of directors and the board of supervisors has been continuously standardized, and various systems have been continuously improved, forming a set of effective internal management and control systems with mutual checks and balances. it has effectively protected the legitimate rights and interests of all shareholders and creditors. The Company strictly follows the provisions and requirements of the Rules of the General Meeting of Shareholders of Listed Companies and the Articles of Association of the Company to ensure that all shareholders, especially small and medium-sized shareholders, enjoy equal status and can fully exercise their powers. The company convenes and convenes the general meeting of shareholders in strict accordance with the relevant requirements of the China Securities Regulatory Commission, and invites lawyers to attend and witness, ensuring that the legitimate rights and interests of all shareholders, especially small and medium shareholders, are not infringed.

In 2014, the company held a total of 1 general meeting of shareholders (1 annual general meeting of shareholders). The annual general meeting of shareholders adopted a combination of on-site voting and online voting to vote. The board of directors was held 5 times and the board of supervisors was held 4 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 2014, 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.

In accordance with the provisions of the Information Disclosure Management System and the Accountability System for Major Errors in Annual Report Information Disclosure, the company disclosed the company's 2014 production and operation management and other relevant information in a timely, accurate, complete and fair manner, and published it in the Securities Times "," China Securities Journal "and Juchao Information Network for investors to consult. In the information disclosure work, adhere to the principles of openness, fairness and impartiality, there is no selective information disclosure behavior, to ensure that shareholders of the company's major matters and operating conditions of the right to know.

The company carries out various forms of investor relations activities to promote investors' understanding and recognition of the company, advocate rational investment, and establish a good image of integrity among the investment public. In the company's website in a timely manner to publish the company's recent important news, to further let investors and the public fully understand the company's operation, set up the "investor relations" column, timely update relevant information and answer investor inquiries. The company also provides investors with the opportunity to learn about the company from various channels through on-site reception of visits from individuals and institutional investors, on-site visits, and media interviews by company executives.

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

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

While the company's economic benefits are growing steadily, it attaches importance to reasonable returns to investors and actively builds a harmonious relationship with shareholders. In order to reasonably formulate the cash dividend policy and corresponding decision-making procedures, and improve the information disclosure and supervision mechanism of cash dividend, according to the relevant requirements of the regulatory authorities and combined with the actual situation of the company, the company has formulated the "shareholder return plan for the next three years (2012-2014)", and put forward the minimum proportion of cash dividend of the company, 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 2014: based on the total share capital of 208,000,000 shares after the close of the Shenzhen Stock Exchange on December 31, 2014, 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 will not increase its share capital with capital accumulation fund in 2014. The proposal will be implemented after being reviewed and approved by the 2014 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. Sign the Labor Contract with all employees to specify the employees' wages, working hours, rest and vacation, labor safety, social insurance and welfare, vocational training, etc., and the company and employees shall assume obligations and enjoy rights in accordance with 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 adheres to the scientific principle of "fixing posts by responsibilities and people by posts", and flexibly adjusts the position setting and personnel allocation. The company has established and implemented a performance evaluation mechanism that is based on ability and salary based on performance, scientifically sets up an evaluation index system, regularly evaluates and objectively evaluates the performance of each responsible unit and employee within the enterprise, and uses the evaluation results as the basis for determining employee salary, promotion, evaluation, demotion, job transfer, dismissal, etc. In order to strengthen the incentive effect of the "over-production award" on improving the company's operating performance and make the company's management team take more responsibility for the completion of the company's overall objectives, the "over-production award" issued monthly by the person in charge and above is linked to the monthly team performance indicators of the company or the division according to the different degrees of relevance.

3. 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.

4. companies pay attention to the cultivation and reserve of talents. A relatively complete training system has been constructed. Every year, the Human Resources Department organizes various departments to prepare annual training plans for employees' job competency needs and competencies, and carry out targeted training such as induction training for new employees, project management, technical research and development, and business consulting. Effective training courses. In 2014, according to the company's annual work objectives and requirements, various training tasks were successfully completed. 83 internal and external trainings were completed throughout the year, with 1831 participants, including 44 external trainings and 113 participants. 39 internal trainings, with 1718 participants; Management knowledge training 5 times, quality assurance system training 3 times, vocational qualification certification training 21 times, technical knowledge training 13 times, intellectual property training 1 time, induction training 2 times, job business knowledge training 20 times, job skills training 7 times, safety production 3 times, nuclear safety culture training 8 times. In the whole year, 69 new and re-examination personnel qualification certificates were obtained. In 2015, the company will continue to scientifically and reasonably formulate the annual training plan according to the needs of all aspects. The training work in 2015 will focus on nuclear safety culture, training of the company's nuclear quality assurance system, training of skills upgrading for front-line workers in workshops, such as mechanical drawing recognition, equipment operation and maintenance, etc.

5. company attaches great importance to strengthening communication and exchange with employees. Through the company's workers' congress, production scheduling meeting, employee birthday symposium and other meetings, as well as the "magic style" newspaper, the company's intranet, WeChat circle of friends and other forms, timely and extensive communication with the company's employees can be carried out to achieve the upper and lower feelings. Company leaders through the monthly meeting to the staff in a timely manner to publicize the company's development of strategic planning, objectives, positioning and annual plans.

6. carry out various cultural and recreational activities to enrich the amateur cultural life of employees. In order to create an organizational culture atmosphere in which all employees participate in management and mobilize their initiative and enthusiasm, the company carries out flexible and diverse organizational activities, such as standardized teams, QC groups, 5S activity groups and other regular activities. At the same time, it also carries out various activities such as rationalization suggestions, magic voice youth song competition, sports competition, technical competition and so on, so that employees can fully display their talents.

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

Suppliers and customers are the company's partners, is the company's valuable resources, but also part of the company's competitiveness. The company has always followed the principle of "equality and mutual benefit, win-win cooperation", actively build and develop partnerships with suppliers and customers, and pay attention to communication and coordination with various stakeholders.

Suppliers are important partners of the company. After screening and evaluation, the company has established a long-term and excellent strategic partnership with reputable and high-quality suppliers. The supply channels are stable and reliable. Through the establishment of strategic partnership, Ensure the timely supply of materials required by the company. The company's procurement follows the principles of equality, fairness and justice for sampling and data exchange, and always adheres to the concept of "long-term cooperation to achieve win-win results". Independent procurement of auxiliary materials and machine materials implements strict bidding methods. The bidding review is organized by the procurement department, and the finance department and the user unit send personnel to participate. Under the same quality conditions, the price is compared and the goods are compared to ensure openness, fairness and justice. The company evaluates suppliers once a year, carries out hierarchical management, introduces high-quality supplier resources, promotes supplier self-improvement, continuous improvement, reduces procurement costs, and improves the competitiveness of the supply chain.

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

The company organizes regular marketing meetings every year. According to the market and customer demand information fed back by the salesmen, the company formulates effective marketing strategies, guides customer demand and continuously improves customer satisfaction. The marketing department holds a monthly strategy analysis meeting to analyze the market situation last month and design the work plan for next month. Through market expansion management, the market share is increased and the return of accounts receivable is accelerated.

Chapter V Environmental Protection and Sustainable Development

The company pays great attention to the protection of the environment and ecology, strictly complies with the environmental protection standards and requirements in line with international standards, and creates a green ecological industrial park with beautiful environment and fresh air. The company has increased its investment and successively completed the greening of the factory area, clean sewer, noise reduction and other projects.

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

Through technological transformation, the company has achieved the goals of environmental protection and dust removal, rain and sewage diversion, wastewater purification, cooling water circulation, etc., to protect the health of employees, to contribute to the environment on which human beings depend, and to provide a guarantee for the realization of organizational strategic goals. In terms of energy saving and consumption reduction, the company has carried out frequency conversion transformation on high-power motors on the basis of full investigation. In terms of comprehensive utilization of resources, the company vigorously promotes circular economy and strengthens comprehensive utilization of resources. The company's precision casting workshop takes the comprehensive utilization rate of resources as a benchmark and earnestly studies and develops recycling technologies such as waste sand and scrap steel. The reported recycling rate of waste products has increased from 50% to 85%. According to the current production scale, 1800 tons can be recovered in one year, which has increased the benefits for the enterprise, contributed to the comprehensive utilization of resources and sustainable development, and achieved good social benefits; in terms of public health, the company pays attention to public health safety, strictly adheres to the "disease from the mouth", assigns special personnel to be responsible for the health and safety work of the staff canteen and dormitory, the canteen staff has a physical examination every six months, and other employees have a physical examination every year, contact the Municipal People's Hospital and the Municipal Hospital of Traditional Chinese Medicine as the company's designated service hospitals; in terms of environmental protection publicity, the company continuously enhances employees' awareness of energy saving, consumption reduction and environmental protection through publicity boards, internal newspapers, banners, etc., and cultivates employees in work and life Develop the habit of consciously saving electricity, water, paper, and oil. Every employee should 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.

Chapter VI Safety in Production and Occupational Health

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

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

2. In summer, we not only supply heatstroke prevention drugs such as green tea, Rendan and ten drops of water, but also organize logistics departments to distribute cold drinks to front-line employees. Air conditioning is installed in the team lounge and powerful electric fans are installed on the operation site to create a comfortable working environment for employees.

3. Establish health records for employees, organize regular physical examinations for employees, and when employees are found to be unwell, distribute nutrition fees and arrange rest to ensure that employees' health is not harmed.

4, according to the different configuration of the corresponding labor protection supplies, respectively, there are safety helmets, anti-heat work clothes, anti-static work clothes, acid-resistant work clothes, dust masks, eye shields, canvas gloves, gauze gloves, labor protection shoes and other labor protection supplies that meet the requirements of the standard. Regularly listen to the proposals of front-line employees on labor protection supplies to protect the rights and interests of employees.

5. Identify the hazards in the production area, formulate various emergency rescue plans, train relevant employees, clarify their respective responsibilities, and conduct pre-plan exercises once a year to correct the problems in the exercises and improve the organization's emergency response capabilities and The ability to deal with various emergencies.

6, strengthen the safety production education training, regularly invite safety experts to explain safety knowledge, fire knowledge, emergency rescue and other safety knowledge. In particular, special operation personnel and safety production management personnel shall be employed with certificates. Organize employees to conduct business training in the same industry before the commencement of new processes and projects.

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

Chapter VII Public Relations and Social Welfare Undertakings

The development of an enterprise originates from the society, and it is the responsibility of an enterprise to return to the society. As the basic unit that constitutes the organic whole of society, an enterprise must not only pursue profits, but also consider the overall interests and long-term development of the society, and assume corresponding social responsibilities. Including actively participating in social welfare undertakings and co-organizing various large-scale activities, at the same time, it also includes legal operation, paying taxes according to regulations, caring for resources, protecting the environment, paying attention to safety, caring for employees, expanding employment, integrating into society, and common prosperity. The company needs to organically integrate the pursuit of profit and social responsibility, give back to the society with love, and actively participate in and support social welfare activities, such as fighting against natural disasters, supporting public welfare and charity, education, and advocating that all employees of the company actively participate with gratitude and offer 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, has strongly supported the national and local finance, and has been commended by industry and commerce, taxation and relevant authorities at all levels for many times.

3. The company actively supports public welfare undertakings. Within the company, the company has set up mutual aid funds to help and support families with major diseases, disabilities and natural disasters to tide over difficulties; outside the company, it focuses on supporting charitable foundations in the field of public welfare. In 2014, the company donated a total of 2.15 million yuan to Qidong charitable foundation, sending warmth to vulnerable groups and people in need.

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 the expected 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 2015, 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. On the basis of the stable company's main business development entity, we will continue to promote and improve social responsibility work, actively assume social responsibility, humbly accept the supervision of all sectors of society, strengthen communication and exchanges with various stakeholders, and continue to support social welfare undertakings. Promote the harmonious development of the company and society to make new contributions.

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 29, 2015