CIMM Donghai Carbon New Material Co.,Ltd
Convened the fourth meeting of the first board of directors successfully

The fourth meeting of the first session of board of directors was held by CIMM Donghai Carbon New Material Co., Ltd in the Conference Room #1 of CIMM Group Co., Ltd on 18th March 2012. Conference theme: comprehensive summary of the company operation status in the first quarter, strengthening management, standardizing system, introducing assessment mechanisms, ensuring the comprehensive fulfillment of the plan and target for the production, operation, management in 2012.

The members who attended the board of meeting include: Chairman Zhu Fulian, Vice Chairman Ma Shujun, Zheng Yan, Director Liu Hongwei, Zhang Xiangjun, supervisors of the Supervisory board An Xiangyang, Cai Guizhen, Secretary of Board of directors Hao Yanan. The High-level representatives of CIMM Group Co., Ltd and CIMM Donghai attended the meeting. Chairman Zhu Fulian presided at the meeting. Zhang Xiangjun, the general manager of CIMM Donghai reported the company overall operation status in 2011, summed up the main production and operation of the first quarter in 2012; CFO Wang Sizhai reported the company financial position of the first quarter. Focused on the company operation status of 2011 and the first quarter of 2012, especially for the theme—comprehensive fulfilling the plan and target for the production, operation and management in 2012, the board of directors, the supervisors of the Supervisory board and the High-level representatives who attended the meeting made discussion and speeches positively, seriously, pragmatically and constructively.

After the discussion with the representatives present at the meeting, Vice Chairman Ma Shujun delivered an important speech at the meeting.

He said: the core work of the production, operation and management of CIMM Donghai in 2012 is efficiency and effectiveness. In order to achieve the high efficiency and high effectiveness, the following five points must to be followed at full blast:

Firstly, practicing hard to increase internal competence, management mechanism must be adapted to the requirement from the domestic and the overseas market.

1. We must persistently strengthen our management, subdivide the management, standardize each management system, and quantify the management content. The management should be streamlined at further step and be introduced to assessment mechanism, and implement assessment to various departments and positions in the field of production, marketing, management and services etc.

2. We must strengthen technical innovation and technical upgrading, improve and provide auxiliary equipments to current idle equipments.

3. We must decisively increase new equipments in accordance with the requirements of international and domestic VIP customers and bulk orders.

4. We must accelerate the improvement of all production process and technology, and must come up with a time-table and strictly implement assessment as per the time table requirement.

Secondarily, for the external machining production, we must strictly control and implement management on the quality of each process, yield rate and delivery speed as per CIMM DONGHAI Quality Management System.

Thirdly, we must strengthen the technical service for VIP customers, develop VIP end-users system, and maintain sound cooperation relationship with big professional intermediaries to achieve the grand cooperation and mutual grand development.

Fourthly, management mechanism of the board of directors should not only ensure the normal operation of our manufacturing plant and profit achievement, but also should clarify and ensure the positioning of our long term developed products in the two markets, especially in the international market.

Fifthly, the board of directors and supervisors, and management cadres at each level must fully support the work of the general manager, maintain the overall interest of enterprise, firmly uphold the goal of going public at home and overseas, achieve the sustainable grand development of CIMM DONGHAI in the situation of diverting crisis into opportunity.

The Chairman Zhu Fulian made summary. On behalf of the board of directors and all representatives in the meeting, he fully supported the management philosophy with the core aspect of “Efficiency and Effectiveness” and Five Aspects of management requirements proposed by Vice Chairman Dr. Ma Shujun, and declared that such philosophy and requirements would be the guideline for the production, operation and enterprise management of CIMM DONGHAI in 2012.

The fourth meeting of the first session of board of directors held by CIMM Donghai Carbon New Material Co., Ltd. closed after the completion of all meeting agenda and unanimous passing of the resolution for the project construction and investment expansion by all directors in the way of raising hands.