Work Report of the General Manager on the Sixth Anniversary of Yunnan Electric (Yunnan Jiangbian)

Yunnan People's Electric (Yunnan Jiangbian) 6th Anniversary General Manager's Work Report

Good morning everyone!

Today is March 19, 2012, the 6th anniversary of Yunnan People's Electric (Yunnan Jiangbian Electric), a day worth celebrating for all company colleagues. Over the past six years, with the joint efforts of all employees, the company has grown from small to large, from weak to strong, evolving from an unknown small company into a well-known enterprise in the "electric power industry".”This is the result of our collective efforts and the best reward for all employees' hard work! Today we gather here to celebrate the company's sixth anniversary grandly. On behalf of the company, I would like to extend warm congratulations and heartfelt thanks to all employees.

Standing at a new historical starting point, we will vigorously promote the spirit of Yunnan People's Electric (Yunnan Jiangbian Electric) of 'seeking truth, seeking change, seeking innovation, seeking victory', focusing on 'improving product craftsmanship and quality, insisting on continuous innovation', and elevating 'creating first-class product quality and first-class service awareness' to a new level, presenting even more outstanding achievements to celebrate the company's 6th anniversary.

I. Reviewing History

Looking back over six years, we have walked a difficult and winding road. However, with tenacious perseverance and firm belief, we have steadily advanced step by step. After six years of development, especially in the past two years, we have achieved brilliant results. Our products have been fully recognized by a wide range of users, with sales increasing exponentially, laying a good foundation for the sustainable development of the enterprise. In these years, we have successively passed: ISO9001 international quality system certification and obtained numerous honors and national production licenses:

Kunming City Famous Brand Product;

Top Ten Recognized Transformer Products in China;

Top Ten Quality Recognized Brands of Transformers in China;

Key promoted new products for energy conservation and consumption reduction by State Grid;

National Standard Qualified Quality Management Advanced Unit in the National Power Industry;

Key recommended products for power transmission and transformation projects by State Grid;

Production qualifications for 35KV large transformers and KYN61 series 35KV high-voltage cabinets, and simultaneously obtained high-altitude dry-type and oil-immersed transformers and high-voltage cabinet plateau-type tests above 3000 meters nationwide, along with national production licenses.

For two consecutive years, we have received the 'Contract Abiding and Credit Valuing' honorary title awarded by the municipal government.”In terms of sales performance, we have also achieved one good result after another. In 2011, sales reached 360 million yuan, further expanding corporate strength and enhancing market competitiveness. The past six years since the company's establishment have been six years of starting up and laying foundations. After six years of hard work, the company's survival issues have been basically resolved. The next stage is a critical period for rapid development of the company, which requires our management at all levels and all employees to make significant breakthroughs in ideological concepts and management levels. We must seize this key moment to maintain and promote the working style of unity, integrity, innovation, and dedication of 'People's Electric Yunnan Jiangbian', working together with sincerity to make our company's work even better and to grow stronger.

Over the past six years, our company has continuously improved employees' technical levels and business qualities while also giving back to society and shouldering corporate social responsibility. In 2010, the company donated an American-style box transformer worth over 100,000 yuan to an elderly care home in Honghe Prefecture; in 2011, it donated nearly 200,000 yuan worth of electrical equipment to earthquake-stricken areas in Yingjiang. Recently, due to severe droughts in Yunnan Province, our company is preparing to donate over 100,000 yuan to the government for drought relief efforts as a gesture of our company's goodwill.

The achievements made in recent years are hard-won. Every achievement we have made has been under the correct leadership and care of provincial and municipal party committees and governments, with strong support from leaders at all levels as well as customers and suppliers. On behalf of the company, I would like to express my highest respect and heartfelt thanks to all levels of leaders who have long supported our company's development and to our many customers and suppliers who have cared for us.

In the past six years, the company has based itself on reality, forged ahead bravely through difficulties while uniting in struggle to achieve good results and summarize some valuable experiences. First is always adhering to the concept of 'safety first, quality first, service first' for overall development; 'people-oriented' and 'moral governance' as development goals. These two principles serve as fundamental bases for the entire company's development; second is always insisting on institutional reform and product innovation while continuously promoting management systems reform.

After six years of honing at our company, I now require every employee to form a spirit of 'seeking truth', 'seeking change', 'seeking innovation', 'seeking victory', so that our company can always stand at the forefront of the market while witnessing rapid development through self-improvement.

'Seeking truth' is the foundation for our company's leap forward.

'Truth' means reality, practicality, practice, authenticity. 'Seeking truth' requires us to be realistic in speech and action while achieving practical results. By consistently adhering to this spirit of seeking truth, our company has been able to grow from nothing into something substantial step by step while achieving one goal after another; this is how we have achieved today's results. In the future, we will continue using this spirit to guide our company's faster and better development.'Seeking change' is a winning formula for our company's leap forward.'Change' means reforming or adapting without being bound by conventions. 'Seeking change' requires us to continuously adapt to new situations—new environments—new markets—new changes—ensuring that where others have it we excel; where others excel we innovate further. New market changes bring new challenges; only by seeking change can we respond effectively to difficulties and pressures while seizing opportunities for proactive growth.

'Seeking innovation' is both a source and driving force for our company's leap forward.'Innovation' means emerging ideas or updates. 'Seeking innovation' requires us to keep pace with times while grasping new trends—constantly introducing fresh ideas. Throughout our journey so far, it has been 'seeking innovation' that has accompanied us—new thoughts—new concepts—new systems—new management—new technologies leading our company forward rapidly.

'Seeking victory' sets a new benchmark for our company's leap forward.'Victory' means success. 'Do not be arrogant in victory nor discouraged in defeat.' 'Seeking victory' requires us to be grounded while continuously innovating through challenges towards success. 'Seeking victory' is not merely about chasing rankings; it represents both an overall requirement for our company as well as an ultimate goal for advancing development comprehensively. This year is crucial for enhancing product quality and service; I hope all colleagues will fully cooperate with the company while working together diligently.

   “求胜”我们公司跨越发展新的标杆。“胜”就是胜利。 “胜不骄，败不馁”。“求胜”就是要求我们脚踏实地不断创新、克难求胜。“求胜”不是简单的追逐排名。它既是我们公司的整体要求，更是全方位推进公司发展的最终目标。今年是我们提升产品质量和服务的关键一年，希望各位同事一定要全力配合公司，齐心协力做好各项工作。

We should also be soberly aware that there is still a gap between us and our goals and requirements. The company still has some urgent issues that need to be resolved during its development, particularly in communication and coordination among various departments, product quality, internal management, and the quality of the leadership team. In this regard, we must remain clear-headed, take effective measures, and earnestly address these issues.

Looking to the future, we will lead the company's leapfrog development with the spirit of People's Electric (Yunnan Jiangbian).

In 2012, the company will fully promote the improvement of corporate rules and regulations and the four major systems required by the enterprise (namely, work management system, quality management system, delivery management system, production management system), striving to achieve procedural decision-making, quantitative assessment, systematic organization, clear rights and responsibilities, evidence-based rewards and punishments, planned objectives, streamlined business processes, standardized behavior, controlled processes, and standardized services.

The Yunnan People's Electric Industrial Park that the company is investing in and constructing in the national-level high-tech development zone covers an area of 78 acres and has a standard factory building of 26,000 square meters. After production starts, it will have the capacity to produce large ultra-high voltage transformers of 110KV and below, as well as various types of high and low voltage complete equipment of 35KV and below. It also features a twin tower building with 36,000 square meters and 16 floors for office use and employee accommodation. The industrial park is equipped with comprehensive living facilities for employees, including entertainment rooms, gyms, libraries, karaoke rooms, chess rooms, tennis courts, badminton courts, table tennis rooms, basketball courts, etc. Employee dormitories include suites, standard rooms, single rooms, and couple rooms. There are parks, zoos, fitness parks in front of the industrial park; transportation is very convenient with bus stops and subway stations. Our industrial park will officially start production this June.

The guiding ideology for our work in 2012 is: seeking progress while maintaining stability, promoting innovation, and meeting the requirements for leapfrog development. We will seize the strategic opportunities presented by a new round of western development and open up a bridgehead in Southwest China; comprehensively enhance the company's overall competitiveness and strive to improve its independent innovation capabilities.

In 2012, the company's development aims for further growth in total sales revenue. The key to ensuring the smooth completion of various target tasks lies in people, especially at all levels of leadership; we must maintain a clear mind and strong fighting spirit while continuing to uphold unity and cooperation. All cadres and employees of the company must be brave enough to take on heavy responsibilities, strengthen supervision and inspection, reinforce accountability mechanisms for those who fail to complete production tasks or do not cooperate with work or provide inadequate service to customers or have quality oversight issues or do not care about or resolve problems; we must hold them accountable seriously and investigate thoroughly. We must ensure that all work is implemented without fail.

Colleagues, we face very daunting tasks ahead of us; our responsibilities are significant. In light of the new market development environment and opportunities for growth, let us unite closely and move forward bravely. I believe that with the joint efforts of all our employees to uphold the vision of 'making Yunnan People's Electric Jiangbian Transformer a world-renowned electrical enterprise that benefits all humanity,' continuously improving product quality, corporate management level, and service awareness; we can certainly grow our company stronger while fulfilling our mission of 'People's Electric for the People.' Yunnan People's Electric will surely expand beyond Southwest China and into the world.

Finally, I sincerely wish all colleagues good health, smooth work progress, family happiness, fulfillment of wishes, and all things go well!

Thank you all!