Tongwei holds annual work summary and planning meeting

February, 13 -14, Tongwei held efficiency, innovation, breakthrough themed 2010 work summary and 2011 work planning meeting. Board chairman Liu Hanyuan, President Guan Yamei, Giastar president Tang Guangyao, Executive vice president Zhuo Yujiao, Chairman of board of supervisors Chen Xinyu, vice president Hu Rongzhu, Tongwei Co., Ltd. President Yan Hu, chairman of board of supervisors Yan Baoquan, as well as over 200 department officials and managers attended the meeting.

To review the year of 2010, at the crucial moment of successful completion of the 11th five year plan and the initiation of 12th five year plan, China s economy is gradually on the upswing into a new stage of steadfast growth with virtuous circle. Yet, facing the complex global economic situation, the influence of financial crisis still remains. Over the past year, China has suffered drought in the Southwest, Qinghai Yushu earthquake, Zhouqu mudslide, torrential rains, extreme weathers and severe natural disasters, which adversely affected China s economic recovery and benign development. With the concerted effort of Tongwei people, Tongwei set up guiding principle of speed efficiency integration development and has focused on the development in agriculture and new energy. Combined with its own development stage, industrial characteristics, management requirements, market positioning and competitive environment, the company further improved its management, efficiency, and performance and kept active healthy development momentum with its over 100 subsidiaries.

Due to the extreme weathers, rising price of raw materials, and continuing low price of end products in 2010, the feed industry was confronted with unprecedented difficulties, with prominent polarization of feed companies, weaker ability against market risks, and large compression of market space. Therefore, at the beginning of the year, Tongwei Co., Ltd. put forward the management guiding policy of making breakthrough, meeting challenges, promoting speed and efficiency for development . The year on year sales increase of aquafeed and pig feed exceeded the average industry level. Among these, aquafeed continued seizing 25% share of the domestic market with top sales performance in China for 17 consecutive years. Pig feed sales had a year on year increase of 13.16%. Additionally, the sales from downstream food cluster also improved greatly.

Meanwhile, the Group s new energy cluster also received remarkable achievements. Due to complex and uncertain macroeconomic situation, there was a large surplus in chloro-alkali PVC industry. China s PV and solar grade polysilicon industry has been experiencing a grave situation. Unstable price fluctuation and pressure from competition on costs are the major problems facing domestic companies. In such circumstances, Yongxiang persistently presses on in overcoming technical difficulties, and promoting its competitiveness. Yongxiang polysilicon producing method has formed and been applied. The 3,000 ton polysilicon project is in progress. The quality improvement and market expansion of trichlorsilane also laid solid foundation for Yongxiang s fast-paced development.

On the 13th and 14th, Mr. Liu made important speeches and fully analyzed and summarized business operation and achievements of all the clusters with in-depth explanations of Tongwei s competitive advantages during the past 30 years steadfast and fast development. Combined with current competition situation and pattern, he analyzed the opportunities and challenges facing Tongwei, and emphasized on the importance of further consolidating foundation, integrating resources, seizing opportunities, optimizing incentive mechanism, strengthening management, self-control, and promoting speed, efficiency. Meanwhile, Mr. Liu hoped that all the staff members could press on and effectively extend and improve agriculture and new energy businesses with renovation and creativity.

Mr. Liu also pointed out the issues to consider: how to practically implement service and marketing; how to strengthen customer competitiveness and attract advantageous customer groups through effective service; how to lower risks and costs for higher comprehensive benefits. He emphasized, the top priority of this year is to lead our work focus by ideas so as to further change and improve our work status. We need to organize our raw materials, assess our formulas, implement our techniques and do our service follow-ups from the perspective of customers interest, by which we can finally optimize our customer value to the greatest extent. Therefore, we are doing our plan of growing together with ten thousand households and implement our techniques at our testing and demonstration sites as well as labs.

As for talent mechanism issue, Mr. Liu said, the key is the internal human resources. It is necessary to further carry on trainings on EQ. What accounts is not whether we can produce products; what accounts is that whether we can use the same input for extra product value and additional value in the process from production to customer service. In most circumstances, the extra value is where the profit comes from. We have to realize that those who fit the job are qualified staff; those who perform higher than social average level are talents; those who identify with corporate culture with innovation are excellent talents.

About Tongwei s development direction, Mr. Liu continued, Tongwei is still an excellent company. Facing the current fierce market competition, we are also on a burning platform . Therefore, we need changes, improvements, pressures and motivations to fully participate in the process of change.

Also at the meeting, Mr. Liu elaborated on Tongwei s organizational structure and security, and analyzed Tongwei s strategic planning in five years. He further explained Tongwei s responsibilities and missions in its major business of aquaculture. The key is to provide healthy safe aquafood with our products. The crucial support of this core value is to attract more talents to this industry. China has already become the biggest aquafood producer in the world after 30-60 years development of its aquaculture. The opportunities of meeting its own demand as well as export supply needs still suffice. As for China s new energy industry, it has become the biggest emerging industry with the most important value and market potential in the world s economic development.

On the afternoon of February, 14, Tongwei and its subsidiaries signed Letters of Responsibility for Operation Objectives 2011. Also during the meeting, Tongwei awarded the annual team of heroes, as well as the first Top Ten Exemplar Farmers.