On the morning of August 10th 2011, accompanied by our Chairman and General Manager Wang Xiangrong, Vice-General Manager Yan Tufu and Vice-General Manager Zhang Xubo, Zhejiang Vice-governor Mao Guanglie, Li Yuecheng (Taizhou’s Deputy Mayor), Zhou Xianmiao (Wenling Municipal Party Secretary), and other government officials paid a visit to our garden machinery factory and product display hall. During the visit, Zhejiang Vice-governor Mao Guanglie also watched an operational demonstration of products, such as constant pressure variable frequency water system, lawnmower and shredder.

  Later at the seminar, our chairman gave a report of the current development condition, technological innovation, industrial leadership, vision, plan, business transformation and upgrades etc. Zhejiang Vice-governor Mao Guanglie fully affirmed and agreed that we insist on improving the ability of independent innovation, accelerating measures for transformation and upgrades, and acting as an industrial pioneer. As one of the few enterprises with the ability to manufacture high-end equipment in Zhejiang province, we need the support from the provincial government badly as we confront with many difficulties during the process of transformation and upgrades.

  Regarding the problems of business transformation and upgrades, Vice-governor Mao Guanglie affirmed the contribution that LEO made to the local economic construction and industry. He also made five important instructions:

  Point 1: recently, due to the influence from the intense rainfall, many places were flooded, so the construction of the urban irrigation and drainage system is very important. LEO, as the vice-chairman unit of China drainage and Irrigation Machinery Industry Association, is responsible for paying attention to the research and development of the pump for irrigation and drainage.

  Point 2: The guiding principle is to transform and upgrades business scope in its entirety. Structurally accelerate development of internal innovations, and then develop products with maximal market prospects. Avoid following existing trends. Since petrochemical resources are limited, any product planning in this market should be made at the earliest stages of research-and-development, in concert with locating burgeoning business opportunities.

  Point 3: improve the core competiveness; play an exemplary role as a leading enterprise; establish a first class national technical center, different from the research institute in the university.

 Point 4: it is good to introduce talents from abroad. Advanced technology and philosophy can be introduced by them. But their cooperation with the Chinese group is quite important. If this does not happen, obviously it is a failure.

  Point 5: desalination of sea water has very good market prospects. Pumps for desalination of sea water can be another growth point for the business transformation and upgrades.

  Vice-governor Mao Guanglie held great hope in LEO’s development. LEO should lead enterprises in the industry to grow faster and make contributions to the transformation and upgrades for the pump industry in Zhejiang province. Our chairman expressed thanks for his encouragement, and said we will accelerate the business transformation and upgrades. We will build a large and powerful company.

        Administration Office