PKU PIONEER 2013 Annual Summary Conference Was Successfully Held - Nine years of successive growth

2013 Annual Summary Conference of PKU PIONNER was held in Beijing on March 20, 2014. Mr.Tang Wei, the general manager, looked back on the operations last year, while prospected the objectives and strategy in the next year.

Despite of the poor macro-economy and industrial growth in 2013, PKU PIONEER was still creating the best level of sales revenue and net profit in its history, not only achieving the annual objectives and nine years of successive growth, but also producing a satisfactory answer to the shareholders and all the staff.

Over years of accumulation and growth in various industrial fields, PKU PIONEER has improved its undertaking capacity in both project scale and quantity significantly. In 2013, PKU PIONEER implemented more than 20 projects, conducted more than 40 program optimization, technical innovation, and R&D projects relating to engineering technique and product development. All equipments constructed by PKU PIONEER fulfill the design. From clients’ feedback, the satisfaction rateremains high in professional technology, after-sale service, etc.

The PSA-CO Plant for ethylene glycol project of Xinjiang Tianye (Group) Co., and anotherfor blast furnace gas purification project of Hengyang Valin Steel Tube Co.Ltd., successfully started up in 2013. The performance exceeds design. Both projects are not only milestones in the history of PKU PIONEER, but light a new way of utilizing blast furnace gas and calcium carbide furnace gas. These two projects further consolidate the leadership of PKU PIONEER in the field of PSA-CO technology around the world.

Another record was created in 2013. Baotou Huading Copper Company, a regular customer,requested an unexpected short delivery and commission time after signing the third VPSA oxygen plant contract with PKU PIONEER. Under close and efficient teamwork,the plant finally started up one month ahead of schedule, creating the shortest time record. Later, Baotou Huading Co. sent a formal thank-you note for this issue.

The service philosophy of PKU PIONEER adheres to customer’s demand and satisfaction, fully winning user’s trust from the deployment of technical proposal and the implementation of project construction. Each established project adds itsreputation.

In 2013, PKU PIONEER broke the ice in the gas supply business. A gas products line has been built across iron & steel,chemical, glass and glass fiber industries. Gas supply business is an important portion for the adjustment of strategic deployment in recent years. The technical innovation and service under the gas supply model will keep on meeting diverse demands of the users, and reducing the product cost to supply cheap industrial gas.

In December 2013, as an enterprise affiliated to the Ministry of Education, PKU PIONEER firstly implemented the equity incentive program, which was launched for trials in the Zhongguancun National Demonstration Zone. Equity incentives greatly enhanced the motivation and creativity of the in-house technical and management personnel, and promoted R&D achievements.

PKU PIONEER has successfully signed a special service contract with a CPA firm,which will coordinate the internal control and management system, thus elevate the enterprise’s over all management level.

Looking back to history, PKU PIONEER emerged from innovation; therefore, PKU PIONEER will persist in innovation. By the 15th year since its foundation, thanks to the core technologies such as world-leading PSA-CO separation technology, VPSA-O2 technology and industrial tail gas recycling technology, PKU PIONEER’s corebusiness has occupied the over whelming majority of market share. However, with constant deepening of economy, the market environment has become increasingly complex. New product, technology, and management thought are emerging in an endless stream. PKU PIONEER is constantly strengthening all staff’s innovation consciousness, cultivating the innovation capacity, to guarantee the sustainable development towards a better future.