Mr. Li Xinyan, Deputy to the National People's Congress and Chairman of the Board of China Lonking Holdings Co., Ltd., attended the meeting and delivered an important speech. In his speech, Chairman Li Xinyan first reviewed the work of 2013. He said that in the just-concluded year of 2013, all Lonking people faced the crisis with calm and composure, made accurate judgments and took solid measures, united as one with the strength to move Mount Tai, dared to confront difficulties and took real action, focused on process and emphasized sustainability, valued methods and sought practical results, proactively adjusted and responded actively, achieving three decreases and three increases with remarkable results. All financial indicators improved comprehensively, and various development indices were significantly better than those of industry peers; the structural proportion of employees became more reasonable, and per capita labor productivity increased markedly; the supplier team became leaner and more capable, and procurement efficiency improved noticeably; the dealer team became more mature, and the ability to withstand risks was significantly enhanced; the profitability of various complete machine and component enterprises improved somewhat, and the long-loss-making Casting and Forging Company turned from loss to profit, while the risks of the ever-changing international business became more controllable and the foundation more solid. What is even more commendable is that after a year of optimization and reorganization, Lonking's cadre team became more stable, and the employees' mental outlook, work passion, and work efficiency improved significantly; notable results were achieved in material management, consumption quotas, internal trading, budget assessment, and various other aspects of work; a new round of corporate culture promotion and system improvement and implementation is being advanced in an orderly manner... Lonking people have already walked out of this crisis at the forefront of the industry, and the overall development situation of the enterprise is autonomously controllable. These achievements are the result of the correct decision-making, timely adjustment, and decisive integration of the Board of Directors and the holding company, the result of the management team led by Chief Executive Officer and President Mr. Qiu Debo vigorously implementing measures and persevering, and the result of all Lonking people uniting their hearts and striving for success. On behalf of the Board of Directors and in his own name, he extended the most heartfelt gratitude and the highest respect to all Lonking people!

　　When deploying the tasks for 2014, Chairman Li Xinyan said that facing the future, Lonking people are full of confidence. This confidence comes from Lonking's 20 years of development accumulation and the special advantages built in corporate brand, product quality, service quality, cost-effectiveness, profitability, and cultural development; from the fact that after several rounds of fierce competition, whether for Lonking's business divisions and subsidiaries or for the systems of dealers and suppliers, all have undergone trials and been tempered into steel through hardships, with more mature and steadier ability to withstand risks; from the overall scale and stable development macro environment of China's construction machinery industry; from the fact that Lonking has completed this round of adjustment and integration at the forefront of the industry and already possesses various foundations and conditions for exerting strength; and from the fact that Lonking has a management team led by Chief Executive Officer and President Mr. Qiu Debo and a contingent of cadres and employees with strong execution and combat effectiveness who can overcome all difficulties. In the new year, Lonking people will make persistent efforts and, as always, adhere to the unchanged entrusted operation, adhere to the unchanged operation and management by the team led by President Qiu Debo, implement the unchanged president responsibility system premised on the division of responsibilities within the team, and maintain the unchanged system and mechanism whereby the president is responsible for all businesses of the holding company. As always, adhere to institutional control, truly strengthen the construction and implementation of systems, and truly achieve the standardized operation goal of "everyone abides by the system, everything follows the process." As always, adhere to the requirement of "strictly controlling risks, maintaining control with ease; pursuing steady development, comprehensively optimizing indicators," and do well in both internal and external markets. As always, adhere to the concepts of cost and efficiency, and form a good atmosphere throughout the company where "everyone saves costs and everyone strives for efficiency." As always, adhere to "strict budget execution and open and transparent assessment." As always, adhere to corporate culture development, effectively and organically combine cultural development work such as employee care with the company's various management businesses, achieve distinctive features and practical results, and continuously enhance employees' sense of identity and belonging. As always, adhere to corporate social responsibility, take the lead in setting an example in safety and environmental protection work, and actively make new and greater contributions to the development of local economic and social undertakings.

　　Mr. Qiu Debo, Executive Director, Chief Executive Officer and President of China Lonking Holdings Co., Ltd., spoke at the meeting, sincerely thanking all cadres and employees for the wisdom and sweat they devoted to Lonking's development over the past year, and warmly hoping that all Lonking people in the new year will further unify their thinking, build consensus, seize opportunities, act proactively, and strive with determination to achieve the goals and tasks proposed in the "Board of Directors 2014 Work Outline" and the work requirements put forward by Chairman Li Xinyan at this senior management meeting! When deploying the new year's work, President Qiu Debo said that 2014 is a year full of opportunities and challenges, with challenges outweighing opportunities. Lonking people should be good at seizing opportunities, dare to meet challenges, and unswervingly take the "Board of Directors 2014 Work Outline" as the guide, the annual target assessment indicators issued by the Board of Directors and the holding company as the foothold, and the promotion and implementation of a new round of corporate culture as the lever; strengthen the principle that division of labor is paramount and teamwork is essential, bravely shoulder heavy responsibilities and be good at fighting tough battles; and persistently do a good job in improving and implementing systems, making solid and practical all specific work of the "System Management Year and System Implementation Year." He emphasized basing work on the management of entity companies, avoiding formalism and emphasizing practical results, proceeding from reality, establishing and improving new marketing models adapted to new market situations, and intensifying risk control; strengthening market research, accelerating the pace of international product R&D and manufacturing as well as bulk customization and considerate service for major customers, and continuously meeting the individualized needs of different users; establishing a sound evaluation system to avoid the phenomenon of judging the good and bad based on partial information and personal preferences, scientifically evaluating the market, objectively evaluating performance, and doing everything possible to mobilize the work enthusiasm and subjective initiative of all stakeholders across the entire value chain.

　　The meeting was chaired by Mr. Chen Chao, Executive Director and Vice President of China Lonking Holdings Co., Ltd. Leaders of the holding company including Executive Directors and Vice Presidents Luo Jianru and Zheng Kewen, as well as heads of Lonking's business divisions, subsidiaries, and directly affiliated departments (offices), attended the meeting. The participants closely focused on the "Board of Directors 2014 Work Outline" and the work deployment of the holding company, further unified their thinking, deepened their understanding, firmed up their goals, clarified measures, and became even more full of confidence in victory in doing well in all work of the new year.