I. Company basic information

1. Basic information of the company
Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (hereinafter referred to as the Company)
Company registered address: Huzhou Shuanglin Town Town West Industrial Park
Legal representative: Zhou Zhijiang
Registered capital: 208 million yuan
Securities abbreviation: long li special material
Stock Code: 002318

Scope of business: stainless steel welded pipe, stainless steel seamless pipe, metal pipe, plumbing equipment manufacturing, sales, metal materials (except rare metal), paper sales, import and export business (except national laws and regulations restrictions or prohibitions).

The company has four holding subsidiaries, namely, Huzhou Jiuli Extrusion Special Steel Co., Ltd., Huzhou Jiuli Perforation Co., Ltd., Huzhou Jiuli Stainless Steel Welded Pipe Co., Ltd., and Jiuli America Co., Ltd.
The company's main two products namely industrial stainless steel seamless pipe, stainless steel welded pipe; It is divided into two major production areas. Among them, Wuxing District Balidian Industrial Park mainly produces industrial stainless steel seamless tube; Zhenxi Industrial Park, Nanxun District, mainly produces industrial stainless steel welded pipes. The company's products are widely used in petroleum, chemical, natural gas, power equipment manufacturing, shipbuilding, paper, machinery manufacturing, aviation, aerospace and other industries. The company has established a sales network covering North China, Northeast China, East China, South China, Central China and other major domestic markets, the company's products in addition to meet the needs of domestic customers, but also exported to India, the United States, Italy, South Korea, Saudi Arabia and other more than 40 countries and regions.

2. Development of the company

Company is approved by the people's government of zhejiang province "on the whole change set up zhejiang long made of stainless steel tube co., LTD." (zhejiang government shares [2005] no. 51), approved by zhejiang long made of stainless steel tube co., LTD of a joint stock limited company established in the overall change way, by the zhejiang tian jian audit as of July 31, 2005 with a net worth of $108 million, according to the proportion of 1:1 into 108 million shares, the face value of $1 per share. The company was registered in Zhejiang Administration for Industry and Commerce on September 19, 2005, with a registered capital of 10,800 million yuan and the industrial and commercial registration number of 3300001011575.

On December 14, 2006, the original shareholders, Jiuli Group Co., Ltd. (hereinafter referred to as Jiuli Group), Meixinda Group Co., Ltd., and the new shareholders, Shenzhen Xintongfang Investment Management Co., Ltd., increased capital and shares in the form of cash, and the registered capital of the company was changed to RMB 120 million.

On November 19, 2009, the Company issued an initial public offering of not more than 40 million RMB ordinary shares at an offering price of 23 RMB per share, approved by China Securities Regulatory Commission Securities Regulatory Commission (CSRC) No. [2009]1196. Approved by the Notice on Listing of Renminbi Common Shares of Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (No. [2009]176 on Shenzhen Stock Exchange) issued by Shenzhen Stock Exchange, the Company was listed and traded on the Shenzhen Stock Exchange on December 11, 2009. After the issue, the total share capital of the company increased from 120 million shares to 16 million shares.

After the review and approval of the company's 2009 annual general meeting of shareholders, every 10 shares of capital reserve fund will be converted to 3 shares, and the total share capital of the company will be changed to 208 million shares.

3. Shareholding structure of the company
As at December 31, 2010, the total number of shares of the Company was 208 million, of which 1,02,268,153 were shares subject to limited sale conditions and 10,7318.47 were shares subject to unlimited sale conditions. The company's ownership structure is as follows:

4. During the reporting period, with the gradual completion and production of projects raised by the Company and the gradual expansion of production capacity, no significant changes have taken place in the structure, property rights, products or services of the Company

Two, the company's environmental protection work overview

1, the company's environmental protection policy

The company has always focused on the specific requirements of the "Twelfth Five-Year Plan", in strict accordance with the relevant environmental protection laws and regulations to do a good job in environmental protection. The company's environmental protection policy is: "clean production, pollution prevention, resource conservation, sustainable development".

2. Environmental Protection Goals and Achievements in 2010

In 2010, we continued to strengthen environmental protection, improve the environmental protection management system, eliminate outdated production processes and equipment to achieve energy conservation and emission reduction, and promote a circular economy. Through one year's efforts, the company has established a more standardized environmental management system, which was approved in September 2010. Under the guidance of the environmental protection policy of "clean production, pollution prevention, resource conservation, sustainable development", through increasing investment in environmental protection, improving environmental protection equipment, improving the environmental protection system, the emission of exhaust gas, waste water, noise and other major pollutants reached the qualified rate of 100%; Environmental protection equipment and facilities run synchronously with production equipment; The target of reducing unit energy consumption year by year. In 2010, the number of major environmental pollution accidents, sudden environmental accidents and environmental complaints from the public was zero.

3. Plan for environmental protection work of the company in 2011
In 2011, we will be around the country's 12th five-year plan and goal, in combination with the practical situation of the company to formulate environmental protection work of the 12th five-year plan, for better implementation and completion of the planning and goals, the company will continue to implement the State Council on implementing the scientific concept of development to strengthen environmental protection decision ", consciously abide by the laws, regulations and rules and do a better job of propaganda of environmental protection work, improve the environmental protection consciousness; Constantly increase investment in environmental protection, improve environmental protection equipment, improve the "three wastes" treatment efficiency, reduce pollutant discharge; Introducing advanced equipment, improving production technology, improving production efficiency and energy utilization, so as to prevent pollution, save resources and achieve sustainable development.

III. Environmental management of the company
(I) Organizational structure of environmental management of the company
Since its establishment, the company attaches great importance to environmental protection, and according to the requirements of national environmental protection laws and regulations, technical specifications, technical standards and systems, the company has established and improved a multi-level environmental protection management system composed of the company, subsidiaries (branches), workshops (departments), etc. The safety and environmental protection department, headed by the deputy general manager, has been established as the environmental protection management department of the company, which is responsible for the inspection and supervision of the environmental protection implementation of the subordinate companies. Companies under the company set up safety and environmental protection offices, hire environmental protection college graduates as full-time environmental protection supervisors responsible for environmental protection work, on the relevant environmental protection facilities for scientific and standardized operation management, to ensure the stable discharge of waste water, waste gas standards.

The company has equipped all the pickling workshops with safety emergency pools, and all containers are equipped with emergency controllable valves. In case of an emergency, the company can respond to the emergency plan and be dealt with in time.

(ii) the implementation of environmental impact assessment and the "three simultaneous" system.

Company in line with the principle of paying equal attention to both production development and environment protection, the new, change, expansion project detailed argument, in strict accordance with the law of the People's Republic of China on environmental impact assessment law "has carried on the construction project environmental impact assessment work, strict enforcement of environmental protection in the project design, construction projects are according to the relevant national laws and regulations do environmental protection facilities with the principal part of engineering design, constructed and put into production at the same time. The company's current environmental impact assessment of production projects and the implementation of the "Three Simultaneity" system are as follows:

During the reporting period, the new, upgraded and expanded construction projects of the company and its subsidiaries were all carried out EIA and received the approval from the corresponding environmental protection department, with the implementation rate of EIA being 100%.

(3) the generation of major pollutants and the attainment of standards
The main pollutants in the production process of the company are the waste gas produced in the heating and heat treatment process, the waste acid produced in the pickling process, the workshop cleaning wastewater and the solid waste produced in the production process. In order to further standardize the storage and disposal management of solid waste, the company has compiled the hazardous solid waste management plan, established the relevant ledger, and set up the identification and marking according to the provisions. In order to strengthen environmental protection management, improve energy utilization efficiency and reduce environmental pollution, the company's specific measures for the treatment of "three wastes" are as follows:

1. Waste gas: the company adopts the method of absorption tower purification to treat the waste gas in the production process, and the waste gas is discharged through the exhaust pipe after treatment to meet the emission standards stipulated by the state.
(1) Pickling waste gas, discharge outlet: height 30 meters, 40 meters, five seats. Pickling exhaust gas emission implementation (GB16297-1996) "Comprehensive Air Pollutant Emission Standard" in the secondary standard, after the high altitude emissions.
(2) Boiler exhaust gas, discharge outlet: two seats with height of 25 meters. Boiler exhaust gas emission implementation (GB13271-2001) "boiler air pollutant emission standards" in the secondary standard, after the high altitude emissions.
(3) Natural gas exhaust gas, discharge outlet: height of 25 meters, 3 seats. The emission of natural gas shall comply with the secondary emission standard of GB9087-1996 "Emission Standard for Air Pollutants in Industrial Furnaces".

2. Wastewater: after the company classifies the wastewater, most of it will be recycled and a small amount will be discharged according to the standard.
(1) the pickling wastewater in the production process of acid pickling waste water produced in full by the company's existing pickling waste water treatment station for processing, processing of water recycling, cycle recycle excess water processing standards, emissions standards (GB8978-1996) was the primary standard of sewage comprehensive discharge standard, the town of west industrial park to mark the back into the river, eight stores in the eastern industrial park to mark the back into the sewage treatment plant.
(2) emulsion, the annual production of 50 tons, all adopt the exhibitor type emulsion wastewater treatment equipment, processing to achieve (GB8978-1996) secondary standard of integrated wastewater discharge standard, all into the company after pretreatment for central treatment of sewage treatment station, after processing the water discharging standard, discharge standard (GB8978-1996) was the primary standard of sewage comprehensive discharge standard, the town of west industrial park to mark the back into the river, eight stores in the eastern industrial park to mark the back into the sewage treatment plant.

3. All pickling sludge shall be cleared, transported and disposed by Huzhou Shijiqing Metal Sludge Disposal Co., Ltd.

4. Entrust the Town Environmental Health Institute to dispose of all the domestic solid waste in the renewed contract. All the coal cinder renewal contracts generated after the company's annual boiler combustion are recycled by the brick-tile factory. Solid waste products (stainless steel scraps) are sold by bidding.
(4) operation of environmental protection facilities
Company existing sewage treatment station five, eight industrial park, in the town of west industrial park a), daily processing capacity of 4100 tons of waste gas absorption processing equipment 10 units, emulsion 2 sets of processing equipment and imported binary acid analyzer, over the past year, the environmental protection equipment are normal operation, ensure the stability wastewater, waste gas emissions standards.

5. Accomplishment of the total emission reduction task
In 2010, the company invested a total of 4.435 million yuan for energy-saving technical reform. Among them: through the transformation of heat treatment equipment in the welding pipe branch factory, by changing the heat treatment power supply, the original medium frequency induction is transformed into super audio frequency induction. The rated power is reduced by 30kW /h and the actual power is reduced by 60kW /h. Unit energy consumption was reduced from 1,343 to 671 degrees per ton. Through the renovation of the furnace chamber, the size of the furnace chamber is enlarged, so that the cooling effect of circulating water is more ideal, and the consumption amount of hydrogen is reduced from 10L/min to 8L/min. The mechanical and electrical control system of 10-ton, 20-ton and 65-ton cold rolling mill was reformed to change the power source control mode of the main transmission mechanism of the puller, to change the stepless speed regulation to stepless speed regulation, saving less power consumption; Through PLC control, simplify the control line, improve the level of automatic control, reduce the maintenance cost.
(6) Annual input in environmental protection and environmental performance

In 2010, about 3.14 million yuan was invested in environmental protection. The company has established an environmental assessment system to reduce environmental pollution through technical transformation and energy conservation and emission reduction. Among them, only the overall transformation of the pickling room in the first cold rolling plant invested more than 3 million yuan. After the transformation of the project, the company can save more than 1.5 million yuan/year, reduce the consumption of lime, completely solve the environmental pollution, to achieve zero discharge of waste water, waste gas, waste acid; The dust removal equipment of the cutting machine is reformed, and the original dust removal equipment (bag type) is changed. Through the use of centrifugal force, the water and high-concentration sand dust containing air are thoroughly mixed, and after the filtration of fine water film, clean air is discharged, and the secondary pollution is eliminated.

Four, the company's compliance with the law
The company and its subsidiaries shall implement the pollutant discharge permit system, obtain the pollutant discharge permit or temporary pollutant discharge permit according to the regulations, declare the pollutant discharge according to the requirements, pay the pollutant discharge fee in full and timely according to the pollutant discharge fee notice of the environmental protection department, and fulfill the social responsibilities of the enterprise itself. In 2010, the company paid the pollutant discharge fee on time.
The company did not receive administrative punishment for environmental protection in 2010, and there was no environmental behavior requiring rectification within a time limit.
Emergency response to environmental pollution accidents

The company has established a multi-level environmental protection management system composed of the company level, subsidiaries (branches), workshops (departments), etc. Carry out environmental impact assessment on the environmental risks involved regularly to prevent the occurrence of environmental pollution accidents. At the same time, the company further revised and improved the "emergency environmental emergency plan", and regularly conducted emergency drills for employees to improve the company and employees' ability to respond to emergency environmental pollution accidents.
Sixth, other
Company E-mail: jlgf@jiuli.com
The company's hotline is 0572-7362125
Company fax: 0572-3620799
Company website: http://www.jiuli.com