Jiangsu Shentong Valve Co., Ltd. 2015 Annual Social Responsibility Report

Foreword

"Jiangsu Shentong Valve Co., Ltd. 2015 Social Responsibility Report" is the fifth 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, 2015 to December 31, 2015, 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 of social responsibility throughout all aspects of the company's development strategy and management, and has continued to deepen in practice, strictly abide by social ethics and business ethics, and 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, 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, at the same time, the harmonious development of the economy and society, the balanced use of the natural environment and resources, employees, customers, suppliers Stakeholders and other stakeholders also assume corresponding responsibilities, which promotes the comprehensive 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 we are also willing to accept social supervision to promote better and faster development of the company.
This report is based on the "Shenzhen Stock Exchange Listed Companies Social Responsibility Guidelines", "Shenzhen Stock Exchange SME Board Listed Companies Standard Operation Guidelines", "SME Board Information Disclosure Business Memorandum No. 2: Periodic Report Disclosure Related Matters" (Revised on January 15, 2016) 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 21st meeting of the third board of directors of the company.
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"). The company specializes in the research and development, production and sales of new special valves. The main products include butterfly valves, ball valves, check valves, regulating valves, filters, shellfish traps, 145 series and more than 2000 specifications, which are widely used in nuclear power, Metallurgy, thermal power, coal chemical industry, petroleum and natural gas gathering and transportation, petroleum refining and other fields.
The company has established independent innovation platforms such as national post-doctoral research station, Jiangsu Provincial Key Laboratory of Nuclear Power Valve Enterprise, Jiangsu Enterprise Technology Center, and Southeast University Graduate Workstation. It is a high-tech enterprise of the National Torch Program and the first batch of key enterprise R & D institutions in Jiangsu Province Excellent unit, Jiangsu Province energy-saving and emission reduction technology innovation demonstration enterprise, Jiangsu Province two-oriented integration pilot enterprise, Jiangsu Province intellectual property management standardization demonstration enterprise. Is the vice chairman of the China Valve Industry Association unit, the National Valve Standardization Technical Committee butterfly valve working group leader unit. It has passed the API certification of American Petroleum Institute, CE certification of European Union, BV certification of French Classification Society, ISO9001 quality management system, ISO10012 measurement management system, ISO14001 environmental management system and GB/T28001 occupational health and safety management system certification.
The company's existing testing and testing center, chemical analysis laboratory, metallographic laboratory, flow characteristic test, containment pit filter test, cryogenic valve cryogenic inspection and other laboratories, with a real (test) construction area of 4700 m2. It has production, testing and testing equipment such as flow characteristic test, driving torque dynamic test, running aging test, thermal cycle test, cold cycle test, thermal aging test, liquid penetration, non-destructive testing, etc. With NASTRA finite element analysis, SolidWorks three-dimensional design, JSCAST casting process design analysis and verification of international advanced software. Valve flow characteristics test device is mainly for the valve flow capacity, flow resistance coefficient, regulating characteristics of the test design, but also for nuclear power valve special fluid blocking test and check valve water hammer characteristics test, is a system software support covering detection, data acquisition, data processing and automatic control of high precision and high automation system. The device makes full use of advanced measurement technology, control technology and computer technology to ensure the high precision and high repeatability of the test data. The designed maximum test capacity is nominal size DN700, nominal pressure PN40 and flow rate 6000 m3/h. It is currently the largest diameter and most functional valve flow characteristic test device in China.
In 2015, facing the severe economic situation and increasingly fierce market competition environment, the company's management closely focused on the annual development goals and strategic plans determined by the board of directors, and adhered to the market of "consolidating metallurgy, developing nuclear power, expanding petrochemical, and serving energy" Positioning, on the one hand, focus on promoting the integration and optimization of internal resources, and strive to improve the company's management level and efficiency; on the other hand, firmly seize the favorable opportunity of the capital market to implement strategic layout, seek diversified development opportunities. By optimizing the product structure, meeting the market demand of high-end key valves and enhancing the added value of the company's products; Increase marketing development, expand the scope of business, and do better and stronger valve main business; Through the promotion and implementation of PDA bar code system, ERP has deepened the improvement of application software development capability, laying a solid foundation for the company's intelligent manufacturing.
In 2015, the reform of the domestic capital market was further accelerated, especially the efficiency of administrative examination of refinancing and merger and reorganization projects was greatly improved, which promoted the high activity and prosperity of the domestic secondary capital market. The company successfully implemented the merger and reorganization project in 2015, and purchased 100 of the shares of Wuxi flange Forging Co., Ltd. held by Xu Jianping and other five natural persons by issuing shares and paying cash, approved by the China Securities Regulatory Commission "Zheng Jian Permit [2015] No. 2637" "Approval for Approval of Jiangsu Shentong Valve Co., Ltd. to Issue Shares to Xu Jianping and Other Assets", the target asset Wuxi Flange Forging Co., Ltd. was completed in December 2015 After the equity transfer procedures and related industrial and commercial registration procedures, Wuxi Flange has become a wholly-owned subsidiary of the company. At the same time, through the implementation of the employee equity incentive plan, the company's managers and technical backbones can share the benefits of corporate growth and become the company's shareholders, making their interests and the company's interests converge, thereby forming a community of corporate interests, Greatly improve the enthusiasm, initiative and creativity of managers and technical backbones.
However, during the reporting period, after the resumption of approval of nuclear power project construction, the nuclear power industry ushered in the peak of bidding for new nuclear power projects, but the newly obtained nuclear power valve orders have not yet begun to be delivered in batches; the market demand in the metallurgical industry is still sluggish, and the steel market prices continue to decline. The demand for valves in the steel industry has slowed down; in the energy equipment industry, the company has invested a lot of manpower and financial resources, orders have increased significantly, and the increase in production and sales has led to a decrease in the average cost of products and an increase in gross profit margin. Under the circumstances that the overall economic situation is not optimistic, the company's operating performance has declined as a whole. During the reporting period, the company achieved a cumulative operating income of 427.5223 million billion yuan, down 8.18 percent from the same period last year, and a net profit of 16.5763 million billion yuan, down 69.20 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 provisions 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 the operation of the company. we will strengthen the management of information disclosure and investor relations, and fully protect the legitimate rights and interests of all shareholders, especially minority 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
The general meeting of shareholders, the board of directors and the board of supervisors are respectively the authority, management decision-making body and supervisory body of the company, and their standardized and effective operation is the key to the governance of listed companies. In 2015, the company held 4 general meetings of shareholders (including 1 annual general meeting and 3 extraordinary general meetings), 8 meetings of the board of directors and 7 meetings of the board of supervisors, the convening procedures, convening procedures, qualifications of participants and voting procedures of the meeting are in line with the Company Law, the guidelines for the standardized Operation of listed companies on the SME Board of the Shenzhen Stock Exchange and other normative documents, as well as the articles of Association, the rules of procedure of the shareholders' meeting, the rules of procedure of the Board of Directors and the rules of procedure of the Board of Supervisors.
Since its listing, the company has organized and prepared the relevant work of the general meeting of shareholders, the board of directors, the board of supervisors and the special committees of directors in strict accordance with the regulations, and has set up a combination of on-site voting and online voting at each general meeting of shareholders in accordance with the regulations, so as to ensure the participation rights of small and medium-sized investors. For the company's major asset restructuring matters, related party transactions, equity incentives and other important matters in 2015, the independent directors of the company actively listened to the opinions and suggestions of small and medium shareholders, and expressed corresponding opinions, effectively safeguarding the legitimate rights and interests of small and medium shareholders.
3. strictly fulfill the obligation of information disclosure and 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 2015 annual report and other relevant information in a timely, accurate and complete manner, and published it in the Securities Times and 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 the company's integrity image among public investors. 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 2015, the company disclosed a total of 75 periodic reports and temporary announcements in accordance with regulations to help investors understand the company's operating conditions in a timely and comprehensive manner. After the 2014 annual report was announced to the public, the company also held the 2014 online performance briefing, the chairman of the company, Mr. Wu Jianxin, the president, Ms. Zhang Yifang, the independent director, Mr. Wang Dezhong, the vice president and secretary of the board of directors, Mr. Zhang Qiqiang, the chief financial officer, Ms. Lin Dongxiang, and the audit manager, Mr. Hong Xuechao, attended the performance briefing. At the briefing, small and medium-sized investors actively participated in asking questions, and the company's directors and executives answered the questions raised by investors in detail.
4. establishing a long-term and stable profit distribution policy to ensure a stable return on investment for shareholders
The enterprise is a member of the society, and it is the responsibility of the enterprise to actively and steadily give back to shareholders and society. For many years, the company has adhered to the concept of sharing the fruits of enterprise development with investors and put them into practice. 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 (2015~2017)", and put forward the minimum proportion of the company's cash dividend, and actively return to shareholders.
The Company's cash dividends for the last three years are as follows:
Unit: ten thousand yuan
Dividends
Annual cash dividend amount (including tax) dividend annual net profit attributable to shareholders of listed companies in the consolidated statement of net profit attributable to shareholders of listed companies in the consolidated statement of net profit attributable to shareholders of listed companies in the consolidated statement of annual distributable profit.
1040.00 2014 5,381.65 19.32% 28,517.87
1040.00 2013 6,589.46 15.78% 24,710.57
1040.00 2012 6,500.45 16.00% 19,828.28
Cumulative cash dividends in the last three years as a percentage of average annual net profit (%) 50.67
Profit distribution plan for 2015: according to the "profit distribution plan for 2015" approved by the 21st meeting of the third board of directors of the company, based on the total share capital of 219,571,540 shares after the closing of Shenzhen Stock Exchange on March 31, 2016, a cash dividend of 0.50 yuan (including tax) will be distributed to all shareholders for every 10 shares, with a total cash dividend of 10,978,577.00 yuan (including tax). The Company will not use capital reserve to increase its share capital or send shares with undistributed profits in 2015. The above profit distribution plan is yet to be approved by the Company's 2015 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, 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 work 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. The company has signed the "Labor Contract" with all employees of the company in accordance with relevant national and local laws and regulations, and has handled five insurances and one housing fund for all employees in accordance with laws and regulations. In accordance with the relevant regulations of the labor department, timely handle labor contracts, social insurance and other related procedures to ensure that employees enjoy social insurance benefits, so that employees can receive timely help and compensation in the case of pension, illness, work injury, unemployment, childbirth, etc., and implement paid Annual leave and other systems enable employees to work and develop 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 staffing. 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. Focus on the formulation, assessment, feedback, interview and other work of the personal performance standards of each employee of the company, combine the company's production and operation situation and the industry market situation, focus on reducing costs and increasing efficiency, and timely adjust the indicators and assessment methods of the company's employee performance assessment to ensure that the performance assessment is compatible with the business development of the enterprise and escort the realization of the business objectives of the enterprise.
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. the company has always paid attention to the training of all kinds of employees and built a relatively complete training system. Every year, the human resources department organizes various departments to prepare annual training plans according to the post ability needs and competency of employees. targeted to carry out effective training courses such as induction training for new people, project management, technical research and development, business consulting and so on. In 2015, according to the company's annual work objectives and plans, various training tasks were successfully completed, with 141 internal and external trainings completed throughout the year and 3065 participants, including 54 external trainings and 135 participants. There were 87 internal trainings and 2930 participants. Based on the internal and external training of the company, the completion rate of the annual training plan is over 90%, and each period has teaching records, sign-in forms and training effect evaluation. The training effect evaluation mainly comes from training tests, oral surveys, experiences, etc. In 2015, a total of 66 employee qualification certificates were obtained for the new office and review, effectively meeting the company's requirements for employee qualification. In 2016, the company will make an annual training plan in a timely manner according to the requirements of the training and education syllabus, and formulate a monthly training work plan and organize its implementation in a timely manner.
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. The company's leaders timely publicize the company's development strategic planning, target positioning and annual plan implementation to employees through monthly regular meetings.
6. company attaches great importance to the construction of corporate culture, and strive to improve the overall quality of employees. The company's party committee, youth league committee, and labor union organized activities such as rope skipping, shuttlecock kicking, basketball league matches, tug-of-war, and table tennis matches during the "May 1st" International Labor Day and National Day. In March 2015, all women employees were organized to travel. By holding various forms of competition activities, the communication between the company's employees is more sufficient, the talent of the employees can be well reflected, the cohesion and centripetal force of the enterprise are enhanced, and a good corporate culture atmosphere is created.
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 an important part of the company's competitiveness. In 2015, the company continued to build a good cooperation and communication mechanism with suppliers, customers and other partners, established a close strategic partnership, and through regular research and return visits, timely understood the needs and problems of suppliers and customers, and fully respected and protected the legitimate rights and interests of suppliers and customers.
1. The company insists on operating in accordance with the law, standardizing operations, being honest and trustworthy to suppliers, customers and consumers, and building a good supply and marketing relationship. Through the integrated construction of supply chain, the company continuously improves the procurement process and mechanism, strengthens procurement management, establishes a fair and just price selection and evaluation system, and creates a good competitive environment for suppliers; signs supply agreements with suppliers, strictly abides by and fulfills contractual agreements, and solves disputes through friendly negotiation to ensure the reasonable and legitimate rights and interests of suppliers. Organize technical personnel to enter the customer site, timely understand customer needs and problems, discuss and analyze solutions with customers, and provide services for the smooth operation of customer equipment.
2. The company implements strict quality and technical standards, adopts strict quality control measures to ensure the continuous, stable and effective operation of the quality assurance system, improves product quality and service quality, and provides customers with high quality products and high-quality and thoughtful services., Quality inspection, transportation, delivery and other links are checked at all levels, and strive to improve customer satisfaction and maximize customer rights.
3. While providing high-quality products, the company pays attention to providing customers with high-quality technical support and after-sales service. In order to meet the needs of all kinds of customers, through market research, product market segmentation, find out the preferences and needs of customers; in addition to maintaining regular communication with customers by telephone, e-mail, fax, etc., the company organizes sales and technical personnel to visit customers every year, give them technical support on site, provide high-quality pre-sales, in-sales and after-sales services, improve customer satisfaction, and enhance brand image.
4. 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 market strategy analysis meeting to analyze the market situation last month, analyze and plan the market development plan for next month, and consolidate and expand the market share through market expansion management.
Chapter V Environmental Protection and Sustainable Development
In 2015, the company strictly abides by national environmental protection laws, regulations and local environmental protection regulations, continuously follows the requirements of ISO14001 environmental management system certification, strictly implements the "three simultaneous" system of construction projects, timely treats waste gas, waste water, noise and solid waste in accordance with management and control procedures, strengthens the protection of the surrounding environment, and vigorously advocates the concept of low-carbon, environmental protection and green office, to raise employees' awareness of environmental protection, the Company did not experience any significant environmental pollution during the reporting period.
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 by one vote, and clearly put forward "people-oriented, Safety first; strict management, put an end to violations; found violations, timely stop" requirements, through strong management measures, ensure that employees and the public have a safe production environment and a harmonious living environment.
The company practices the concept of environment-friendly and energy-saving development, effectively promotes the sustainable development of the environment, and integrates environmental protection, energy conservation and emission reduction into the whole process of production and operation. The company advocates the concept of environmental protection, builds garden enterprises, and beautifies the company's factory environment by planting trees, flowers and lawns, greening the factory area, beautifying the factory area, purifying the air, etc. Actively carry out energy conservation and consumption reduction work, reasonably and efficiently use the company's ERP, OA and other office systems, and make full use of modern information technology, greatly reducing the consumption of paper, ink cartridges and other office products; In daily work, the company promotes and encourages employees' awareness of environmental protection and takes effective measures to achieve environmental protection and sustainable development.
Chapter VI Safety in Production and Occupational Health
The company belongs to the machinery manufacturing industry, and production safety is an important prerequisite for ensuring the safety of employees' lives and property. The company strictly implements labor and production safety laws and regulations such as the the People's Republic of China Labor Law, the the People's Republic of China Safety Production Law, and the the People's Republic of China Occupational Disease Prevention and Control Law. To continuously improve the occupational health and safety conditions in the working environment of employees, the company's production safety management is mainly achieved through monthly safety inspections and daily inspections by safety officers. The company has carried out reforms and innovations in the following areas:
1. The Safety Supervision Department organized 10 safety production education and training sessions throughout the year, conducted many theoretical examinations for the company's cadres and employees, and achieved good results by promoting learning; organized and carried out safety production month activities, arranged safety production publicity banners, and posted Safety production publicity slogans.
2. Supply heatstroke prevention drugs such as green tea, Rendan and ten drops of water during the high temperature in summer, and 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 hazard sources in the production area, organize the implementation of the company's safety production emergency plan, the inspection of fire-fighting equipment, the actual practice operation of employee fire-fighting equipment, train relevant employees, clarify their respective responsibilities, and conduct a plan exercise once a year To correct the problems existing in the exercise and improve 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.
Chapter VII Public Relations and Social Welfare Undertakings
While doing a good job in production and operation, the company does not forget to repay the society, pay attention to public interests, build harmonious and friendly public relations, and actively pay attention to and support social welfare undertakings while taking into account the interests of the company and shareholders.
1. The company actively and actively maintains communication with relevant government departments, regulatory agencies, and the media, and actively accepts the administrative supervision of government departments and regulatory agencies and the social supervision of the public and news media to create sincere and harmonious public relations.
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 by governments at all levels, taxation and relevant authorities for many times.
3. Actively create more job opportunities. While developing and growing, the company also actively creates more employment opportunities for the society, and contributes to alleviating the employment pressure of the society and driving the local economic development.
4. Actively support public welfare undertakings. Within the company, the company has set up a mutual aid fund for employees to help and support families with major diseases and disabilities to tide over difficulties; outside the company, it focuses on supporting charitable foundations in the field of public welfare. In 2015, the company donated a total of 2.95 million yuan to Qidong Charity Foundation, sending warmth to socially disadvantaged 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 social and economic situation is not optimistic, the company's development is facing greater challenges, through the cooperation with friends from all walks of life and the joint efforts of all employees, the company has achieved good 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 2016, 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 steady development of the company's main business, we will continue to promote and improve social responsibility, actively assume social responsibility, humbly accept the supervision of all sectors of society, strengthen communication and exchanges with various stakeholders, continue to support social welfare undertakings, and promote The harmonious development of the company and society makes 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. 3 Base of Shentong Valve, 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.
April 10, 2016