Daphne Board of Directors Office        The 19th Issue      May 20, 2009

        This year is key for achievement of the energy consumption & emission reduction goal for “11th Five-Year Plan" period. Daphne will, according to the spirit of the 17th Congress of the CPC and the requirement of learning and implementing views of scientific development, take a series of measures to realize energy consumption & emission reduction alongside the effort to maintain business growth and demand expansion.
        For the first thing, more effort will be made in office energy consumption reduction. At the very beginning of the year, Daphne's top management prioritized energy consumption reduction as a task atop the agenda. Production energy consumption reduction by no less than 10% is listed as a target in the annual work plan for 2009. In the meantime, Daphne stepped up implementation of the task of office energy consumption reduction. A relevant system for energy consumption reduction has been established and maintained. As the first step, regulations on office paper printing energy saving were defined, requiring each department to make sure recyclable paper is recycled and used in office paper printing, as a part of the move of cost saving and income increase. Second, effort in lighting energy saving is made by clearly requiring the staff to turn off the lights and computers before leaving the offices for home everyday. The road lamps in the office areas are required to be turned on and off according to the specified time, namely to be turned off at 6 a.m. and turned on at 7:50 p.m., and responsible persons are designated for the implementation.
        Secondly, concrete effort is made in production energy consumption reduction. Starting with enhancement of management, Daphne has improved boiler's coal utilization by crushing the lump coal and using mixed coal. Through the improvement, the Extraction Workshop saves 10—50 kg of coal each day, with anticipated annual coal saving of about 18 T. Additionally, the water resource is fully tapped by utilization of the recycling water tank, so that the cooling water generated by each piece of extracting equipment is recycled. In the meantime, wastewater treatment is stepped up by utilization of the wastewater treatment system (daily capacity: 40 T), so that wastewater will not be disposed of unless it has been treated to the standard. Statistics show that about 1000 T of water will be saved each year. Last year alone, Daphne achieved three consumption targets per 10000 yuan of industrial output value: water consumption: 43.9T, coal consumption: 1.4 T and energy consumption of 742.8 kw.h. All these consumptions have dropped compared to the same period of the previous year.
        The effort above has laid a firm basis for survival and development of the enterprise and achievement of the 2009 target of energy consumption reduction by no less than 10%.