Daphne Board of Directors Office       37th Issue    October 19, 2009

        To further unify the thoughts, build confidence and speed up internal reform, at 8 o'clock on the October 14 morning, Daphne convened an assembly in Conference Room 3. The meeting was chaired by Mr. Tang Xiuwen, president of the Daphne Group. At the meeting, Mr. Tang pointed out that all the staff should be clear about the current situation, build confidence in development, and work hard with high sense of responsibility and urgency. We need to adjust our strategies according to the condition, normalize our management, and push the reform within the organization, so that the internal reform heads fast in a correct direction. The purpose and direction of the reform was further clarified at the meeting.
        Mr. Tang stressed that the internal reform was aimed at seriousness, preciseness and normalization. The meeting held on September 9 night marked start of this reform campaign. Daphne has implemented an exercise system for more than 30 years. It is mainly aimed at improvement of the mental outlook of each employee and boosted profile of the company. To accelerate the reform, we need to start with the basic exercise system. Everything should be done precisely to ensure that the orders are communicated and implemented smoothly. Direction of the reform: to build confidence, and speed up achievement of the strategic goals. Each employee shall build confidence and continuously improve own skills. Taking the chance of conversion of the working disciplines, the company will implement the rules & regulations strictly and introduce a distinct reward and penalty system. No grace will be given for any offenses against the rules & regulations. All the efforts are aimed at achieving good performance from sound management practice. 
        Now, it is key time for development of the company. The staff shall pull together, be clear about the situation, enhance the sense of risk and look for innovative working thoughts to promote fast development of the company. Targeting fulfillment of the annual objectives, everyone shall try to realize more breakthrough in work, and make due contribution to development of the company.