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Summary of Social Responsibility

  Overthe years of its pursuit of business development, Continental Hope Group hasalways kept in mind its social responsibility as a corporate citizen, and seeksto constantly enhance the social value of the enterprise. This has beenaccomplished through a variety of business services meant to solve specificsocial issues, including energy efficiency, recycling, and common development.

Energy Conservation

  Since the beginning of its development, Continental Hope Group has had its core inthe high-tech industry. It has made a significant contribution throughcontinuous technological innovation, improvement of energy-saving products,reduction of customers’ energy consumption, emission reductions, and giving thecommunity more efficient products for environmental protection.

  Example 1:As a pillar of the national economy, the petrochemical industry has a very highenergy consumption. Fans are extensively used in petrochemical production, inpumps and other applications. Transitioning traditional energy-throttle modelsto frequency control technology can save large amounts of energy. If the fan isrunning with a Senlan inverter, it saves about 30% of total energy. If Senlanis directly regulating the pump inverter, it can save about 20%.

  Example 2:Another way to save energy is the recycling of wasted industrial heat. InChina, only about 30% of heat is recovered, a small percentage when comparedwith a heat recovery ratio of almost 60% in developed countries. However, usingDeep-blue Absorption Chiller air conditioners and other heat utilizationsolutions can fully recycle industrial heat (like gas heat, wasted smoke, etc)generated during production to cool or heat other steps of the process, thusgreatly reducing emissions and increasing the utilization rate of wasted heat.

The“Green” Economy of Recycling

  Inaddition to the continuous development of energy-saving products, the Groupalso adheres to the concept of recycling economic development. It seeks to makefull use of natural water resources to provide green energy security for theenterprise’s development, and adheres to a non-polluting, zero-emissionindustrial chain.

  Thevigorous development of hydropower to fully use local water resources cancreate a steady stream of energy to ensure enterprise development.

  In the process of sodium chlorate production, the Group strictly controls sewagedischarge in order to not pollute the local ecosystems. Exhaust from theprocess is also fully utilized as an input for artificial gemstone production;therefore, the process has zero emissions and is non-polluting.

Common Development

  With the gradual globalization of the economy and increasing social awareness, theGroup’s focus on the enterprise is not limited to economic development. It alsopays more attention to social responsibility, improving employee relations,business integrity, and the wellbeing of local stakeholders to contribute tocommon development.

  TheResponsibilities of Common Development

  LawfulBusiness: compliance with business ethics, and the tenets of legal and businessintegrity.

  SocialContributions: positive contributions through employment, taxation, areaeconomic development, etc.

  StaffDevelopment: provide space for employees to develop and achieve greaterpersonal values.

  MutuallyBeneficial Partnership: respect and work closely with upstream suppliers toform a good partnership, provide quality products, services, and creditmanagement to downstream customers. We believe that a united collaborationbetween all links of the supply chain create a competitive advantage and thereforeare of mutual benefit.