In February 3, 2018, Inner Mongolia Wuhu Pump Co., Ltd. held a 2018 annual meeting of shareholders and staff members in the company conference room. The meeting was chaired by Chairman Wang Yongjin. There were 14 shareholders, 24 staff representatives and 5 delegates attended the meeting. The main contents of the meeting are as follows. All departments and workshops are carefully carried out. Implement the spirit of the conference, and do a solid job in 2018.

1. General Manager Jia Zhanjun makes the summary report of work in 2017 and the report of business target in 2018.

2. Chief Accountant Wang Changshun makes the financial final accounts and profit distribution plan for 2017, the financial budget report for 2018, and the receptions and usage report for 2017.

3. Deputy General Manager He Yinlu gives a report on foreign trade work.

4. Vice General Manager He Leicheng gives a briefing on the sales meeting in 2017 and a report on the sales work plan for 2018.

5. Deputy General Manager Peng Zhanyun reports on the benefit Award Scheme for 2018.

6. Deputy General Manager Bai Kun conveys the spirit of the communique of the Sixth Plenary (Enlarged) Meeting of the Seventh CPC Wuhai Municipal Committee.

7. The chairman of the trade union, Zhang Xiaoyun, made a report on the proposals for the revision of the Collective Contract and the explanations for the revision of the Pay Special Collective Contract.

The shareholders and staff representatives put forward the relevant suggestions:

(1) The equipments for coating sand in foundry workshop should be perfected as soon as possible.

(2) Daily business training for some management cadres and business personnel.

(3) Strengthen the training of sales and after-sales service personnel in outsourcing the processing of products.

(4) Drawings and test reports of the outsourced products should be perfected as soon as possible.

(5) online sales in accordance with the province's near delivery.

(6) Improving the insulation quality of winding wire and producing double insulated winding wire.

(7) Outside the staff as far as possible in advance notice, the relevant departments one day ahead of schedule for stock.

(8) Frontline staff training should be targeted to improve the past staff training methods.

(9) Continue to reform the internal distribution and encourage skilled workers in the production line.

After listening to the above report, the representatives were divided into two groups to discuss and deliberate on the contents and issues of the report. The board of directors, through a summary discussion of the proposals and opinions made in the deliberations, made further amendments and improvements to the related reports, and the meeting was voted on by the Conference:

1. Adopted the general manager Jia Zhanjun's work summary report for 2017 and the report on the business objectives for 2018.

2. the 2017 financial accounts and profit distribution scheme, and the 2018 financial budget report, the 2017 business hospitality extraction and the use report, made by the general accountant Wang Changshun.

3. Adopted the report on foreign trade work made by Vice General Manager He Yinlu.

4. Adopted the presentation of the sales meeting in 2017 by Vice-General Manager He Leicheng and the report of the sales work plan in 2018.

5. Adopted the report on the Draft Benefit Award of 2018 by Peng Zhanyun, Vice-General Manager.

6. Adopted the report on the revision proposal of the Collective Contract and the revision explanation of the Pay Special Collective Contract made by the trade union chairman Zhang Xiaoyun.

Summary of the speech by Wang Yongjin, chairman of the board of directors during and after the meeting:

At this meeting, the delegates participated actively in the deliberations and discussions of the reports submitted and revised and perfected the relevant reports. The conference gave an objective and good evaluation of the work of the company in 2017, planned the work of the company in 2018, and voted through all the reports and documents submitted by the general assembly. On behalf of the board of directors and the party, the political and industrial organizations, I would like to express my sincere thanks to the delegates for their serious and responsible participation in the meeting and the rationalization proposals made to the work of the company.

Work on 2017

In 2017, the country's supply-side reform, the transformation of economic growth mode and other macroeconomic policies, so that the company encountered many difficulties in production and operation. The enterprise earnestly studies the market situation, accurately checks the macro situation, all the employees work sincerely and conscientiously. In the case of the sales and output of the submersible pump obviously decreasing, they should actively respond and strike, and strengthen the low voltage electrical appliances, water supply equipment, engineering projects, special contract services, sewage pumps, mixed flow pumps and so on. With the expansion of products and business, the annual sales revenue, profit, employee income, repayment, industrial added value and other major economic indicators have increased year after year. 64 technical innovation and process improvement projects have been implemented in the year, and a batch of new technology and new technology, such as the intelligent processing line of the pump parts, the casting process of film mulching sand, and the technology of ring compression loading, have been applied to the practice. Many of the workers in the production line have integrated the innovation and improvement into the daily work. The enterprise continues to develop healthfully.

On the work deployment in 2018

We have entered a new era in which the major contradictions in society have been transformed into contradictions between the growing needs of the people for a better life and unbalanced and inadequate development. Through a series of policy adjustments, such as the supply side reform in recent years, the macro-economy has steadily recovered. The price of the products in the coal, steel and chemical industries has reached a new high. It shows that these industries have a better period of development, and it can be predicted that the overall situation of the industrial industry this year is better than the previous years. In spite of the uncertainty in agriculture, the state has issued and is in favor of the policy of "extension of agricultural land contract for 30 years" and "guidance on promoting the construction and development of agricultural high and new technology industry demonstration area", and the Central Committee of the Central Committee of the Central Committee of the Communist Party of China (CPC Central Committee and State Council) on the implementation of the strategy of Rural Revitalization. Wait. We should grasp the opportunities brought by the industrial economic recovery and deeply understand the changes that the implementation of relevant national agricultural policies will bring to the rural market. In particular, the management departments and marketing personnel should actively respond to, take the initiative to attack, contact with relevant local government departments, go deep into the enterprises and rural grass-roots, feed back information in time, strengthen communication discussion, study the countermeasures carefully, and strive to expand business services and scope of operation.

The sales work should be coordinated by the sales department, the two sales department and the foreign trade department's business management. The company's leadership and marketing departments and various workshops should completely abandon, rely, think, do not wait for rabbits and wait for business, they should take the initiative to go out, adhere to the fields of industry, agriculture, forestry, water conservancy and so on, and enter the grass-roots of enterprises, villages, communities, farmers and so on, not only to sell our products but also to undertake the sales of our products. All kinds of services that our enterprise can do. The marketing department, the various workshops and the leaders of each of them will take the 2018 management target and the total amount of the foreign Association revenue achieved in 2017 as the assessment base, the super award under penalty, and the formation system.

We will continue to improve the development of new products and technological innovation, and make great efforts to advance the development progress of plastic film casting, intelligent processing, intelligent assembly, permanent magnet motor, generator and other projects. We should strengthen online purchasing, online sales, register enterprise online stores, and register special accounts for online transactions. All departments, workshop managers and business personnel should take the initiative to learn and use the Internet, and gradually take "Internet +" as the main means of our daily work. All departments and workshops should pay full attention to customer service, meet customer requirements and strive to exceed customer expectations. In particular, the sales agencies, the outer row service team, the maintenance service department and other departments should strive to achieve the timely and thoughtful sales service, play the regional advantages of the enterprises and the foreign sales agencies, and expand the scope of service. Foreign trade should seek cooperation with Jiangsu and Zhejiang enterprises, and strive to make a breakthrough in export trade in 2018. The company also has to investigate and explore other investment models, making full use of enterprise resources to create benefits.

Comrades: The new journey is calling us to open, the new goal is waiting for us to achieve. Although we will encounter many difficulties in our operation in 2018, we must firmly believe in the courage and determination to build up the mountains and bridges. To overcome all difficulties and obstacles, and strive to achieve the business objectives set at this meeting. Under the guidance of the socialist ideology with Chinese characteristics in the new era of Xi Jinping, let us unite and cooperate, work sincerely, cut the strength and advance, and strive for the better work situation of the enterprise.

Inner Mongolia Wuhu Pump Industry Co., Ltd.

February 6, 2018