Notice on Conducting the Year-End Performance Evaluation and Recognition Program

In 2011, amid an environment of economic uncertainty, TianTe Valves, under the strong leadership and sound guidance of the Group’s Board of Directors, advanced all aspects of its work in a coordinated manner, achieved phased results, and successfully fulfilled the annual objectives and tasks. In the process of promoting the enterprise’s sound and rapid development, the broad workforce pooled their wisdom and efforts to drive the company’s growth. To recognize outstanding individuals, establish model examples, provide guidance and set benchmarks, further stimulate employees’ enthusiasm for learning from, catching up with, and striving to become role models, and thereby propel the enterprise to make new strides in leapfrog development and achieve new successes in fostering corporate harmony, it has been decided to launch the selection of the Group’s Outstanding Individuals for 2011. The relevant details of the selection are hereby announced as follows:

Notice on Conducting the Year-End Excellence Evaluation

In 2011, amid a macroeconomic environment characterized by significant uncertainty, TianTe Valves, under the strong leadership and sound guidance of the Group’s Board of Directors, made comprehensive progress in all areas of its operations, achieved phased results, and successfully fulfilled the year’s objectives and tasks. In the course of promoting the enterprise’s steady and high-quality development, the broad workforce pooled their wisdom and efforts to drive the company forward. To recognize outstanding individuals, establish model examples, provide exemplary guidance, further inspire employees to learn from, catch up with, and strive to become role models, and thereby propel the enterprise to make new strides in leapfrog development and achieve new successes in fostering a harmonious workplace, it has been decided to launch the selection process for the Group’s Outstanding Individuals of 2011. The relevant details of the selection are hereby announced as follows:

I. Award-Nominated Projects and Quotas

1. Outstanding Employees: 5–6 (the exact number will be adjusted based on actual circumstances)

2. Outstanding Managers: 2–3 (the exact number will be adjusted based on actual circumstances)

3. Several Encouragement Awards II. Criteria for Selecting Outstanding Individuals

(1) Criteria for Selecting Outstanding Employees

1. Demonstrates dedication and professionalism, is passionate about the manufacturing of valve products, and possesses outstanding work capabilities;

2. Obey leadership’s work assignments and demonstrate strong organizational skills and discipline;

3. Strictly comply with safety production systems and safe operating procedures, with no equipment-related accidents or personal injury accidents throughout the year;

4. Proficient in job duties, highly responsible, with a strong quality awareness, and zero quality incidents throughout the year;

5. High work efficiency and high attendance rate, with no absenteeism and no more than ten instances of tardiness throughout the year;

6. Proactively offer suggestions and recommendations for the company’s development, thereby significantly enhancing its economic performance.

(II) Selection Criteria for Outstanding Managers

1. Demonstrate passion for the company, dedication to one’s job, and enthusiasm for the valve industry;

2. Obey leadership and follow instructions; uphold professional ethics and adhere to principles; demonstrate strong organizational skills, discipline, and a principled approach to work.

3. Set an exemplary example by strictly complying with all company policies and procedures, proactively guiding and educating employees who exhibit inappropriate behavior, and striving to foster a warm and harmonious work environment;

4. Dedicated to one’s duties, highly competent in one’s work, with a rigorous work style and high efficiency in handling matters;

5. No unauthorized absences; no more than five instances of tardiness throughout the year; no accidents for which the individual is held responsible; no quality or safety incidents; no acceptance of improper hospitality or bribes; strict adherence to integrity and self-discipline; and no disputes, physical altercations, or verbal abuse involving employees.

6. Actively offer constructive suggestions for the company’s development, take the lead in implementing lean management, and deliver tangible benefits to the enterprise.

III. Eligible Candidates and Selection Criteria

1. Eligibility for the Outstanding Employee Award: All frontline production staff in the workshop, warehouse custodians, janitors, drivers, security personnel, cutting workers, and canteen staff, among others.

2. Eligible candidates for the Outstanding Manager Award include department heads, workshop supervisors, engineering technicians, clerical staff, administrative assistants, documentation specialists, equipment maintenance personnel, electricians, quality inspectors, and other similar roles.

3. In 2011, all employees who have worked continuously at Tiantе for more than six months and meet the above evaluation criteria are eligible to participate in the selection; the selection quota is 5%, with an applicant-to-position ratio of approximately 20:1.

4. Individuals falling under any of the following circumstances shall be disqualified from consideration:

(1) Individuals who have engaged in illegal or unlawful activities in society and have been subject to administrative detention or summons by public security organs, or to more severe penalties;

(2) Employees who have previously been subject to disciplinary actions within the company, including fines and written reprimands of a serious nature or more severe (excluding mere general written reprimands), and who have a record of misconduct.

IV. Selection Procedures

1. The selection of Outstanding Employees shall be conducted as follows: department heads shall nominate candidates at a ratio of 1:1.5; the nominations shall then be reviewed and approved by the Safety, Quality Inspection, and Human Resources & Labor departments; after a re-evaluation by the Evaluation Committee, the final list shall be submitted to Chairwoman Liu Rouruan for approval.

2. The selection of outstanding management personnel shall be conducted as follows: each department shall nominate candidates at a ratio of 1:1.5, with final approval vested in Chairwoman Liu Rouruan.

3. The Company shall post the list of candidates nominated by each department on the notice board in advance for a publicity period of no less than three days. During the publicity period, any candidate found to be ineligible under these Regulations shall have his or her eligibility for consideration revoked in accordance with these Regulations.

4. The Leading Group for the Selection Process will convene a review meeting, taking into account the public announcement results, to conduct a thorough screening and determine the candidates to be considered for evaluation.

V. Strengthening Leadership over the Selection Process The selection process is a serious and meticulous undertaking. To ensure that it is conducted in a fair, open, and impartial manner, to eliminate all instances of improper selection practices, and to prevent formalism and falsification, it is imperative to strengthen leadership by establishing a Selection Committee: Chairperson: Cai Chengfu; Vice Chairpersons: Wang Chen and Wang Zheng; Members: Zhang Leyang, Chen Shujuan, Tan Qifa, and Gao Jianhua. All selection activities shall be carried out under the leadership of the Selection Committee.

VI. Schedule and Other Items

1. December 6–7: Survey and baseline assessment phase for heads of all departments;

2. December 8–9: Each department shall submit the list of candidates for evaluation.

3. From December 10 to 13, the evaluation committee will conduct a centralized assessment and verification of safety incidents, disciplinary fines, compliance with laws and regulations, work quality, and other relevant factors, followed by a three-day public announcement period.

4. On December 14, department heads shall sign and submit the selection results to the review committee for examination and approval; the final candidates shall then be submitted to company leadership for approval.

5. Award prize money and certificates to the selected individuals, and publicize their names on the notice board and the company website.

6. Present awards collectively to the recipients at the year-end New Year’s Eve banquet.

Tiantte Valve Group Co., Ltd.

December 5, 2011