On October 25, 2013, the First Extraordinary General Meeting of Shareholders (2013) and the First Meeting of the Fourth Board of Directors and Supervisory Board of LiuGong OVM Company were grandly convened. The meeting adopted a series of important programmatic documents and elected the fourth Board of Directors and Supervisory Board of the company. At the same time, the first meeting of the fourth Board of Directors appointed the senior management team to operate for the next three years.

After the meeting, the reporter interviewed Zheng Jin, Executive Vice President of LiuGong Group and Chairman of OVM, on related issues.Reporter: The management team of the fourth Board of Directors, Supervisory Board, and senior management of LiuGong OVM has successfully completed its transition. What are the differences between this team and the previous one? What is the significance for OVM? What impact does it have on the company's management structure?

Zheng Jin: By October 2013, it was exactly the third anniversary of LiuGong Group's entry into OVM, and also the end of the term of the third Board of Directors, Supervisory Board, and senior management team. Therefore, in accordance with national laws and regulations on companies and in the interest of OVM's future development, we conducted a normal transition. The transition was very smooth and successful, mainly due to the strong support of all shareholders, especially the major shareholder LiuGong Group. We are very grateful to all shareholders. The success of this transition is mainly reflected in the reform at the board level, in accordance with the requirements of the modern enterprise system and relevant regulations for listed companies. We introduced three independent directors to form the new board and established four board committees mainly composed of independent directors, namely the Strategy, Investment, Human Resources and Compensation Incentive, and Audit Committees.

This transition reform is of great significance to OVM. First, it fully demonstrates the great confidence of the major shareholder LiuGong Group in OVM's future development, because the three independent directors introduced can greatly help OVM's development in terms of their influence in the industry and their professional expertise. Second, it fully demonstrates that OVM is a proactive and highly responsible company. The introduction of independent directors will greatly improve the company's governance structure, further enhance the independence, fairness, transparency, and objectivity of corporate governance, improve the level of corporate governance, decision-making, and supervision efficiency, effectively accelerate the company's development speed, and maximize the protection and enhancement of the company's value and shareholders' interests. Third, it will accelerate OVM's transformation and upgrading and the realization of its strategic goals, because this transition will inevitably bring many new things and changes, which will promote internal reform and management improvement at OVM.

Reporter: OVM's achievements are summarized as benefiting from the outstanding wisdom of you and your team. In the past three years, under your leadership and that of the company's management team, what major changes has OVM undergone and what important results have been achieved?

Zheng Jin: Actually, OVM cannot yet be described with the word "achievements"; it has only made relatively great progress and achievements. These progress and achievements have been made by all OVM people with diligence, wisdom, unity, and hard work, and of course with the strong support of our customers and cooperative partners. In the past three years, with the full support of the company's shareholders, the board of directors, supervisory board, and senior management team have indeed devoted a lot of effort and sweat to OVM's development. The directors are diligent and responsible with scientific decision-making; the supervisors carefully supervise and actively perform their duties; the senior management team is passionate and enterprising. Everyone is sincerely united, forming a strong synergy, leading all employees to face difficulties directly, actively meet challenges, calmly respond to the complex and volatile economic environment and market competition, and continuously improve the company's competitiveness. Major changes have taken place in many aspects, and some important achievements worthy of praise have been made, mainly in the company's strategic transformation, technology research and development, marketing, internationalization, operations, branding, and culture. In the past three years, the company's sales revenue has grown against the trend, with an average growth rate of nearly 40%, and profits and return on net assets have also continued to rise, which is not easy. At the same time, in the technical field, we have also made breakthroughs in many projects, such as observatory technology, LNG technology, and seismic damping technology, reaching world-leading levels. We have applied for 35 invention patents and obtained 23 authorizations, making the company's leading position in the prestressing field even more solid.

Reporter: After the new management team takes office, what are the plans and goals for the next three years?

Zheng Jin: In the past three years, we have laid a relatively good foundation. Therefore, in the next three years, we will build on this foundation to challenge better and higher goals and accelerate the realization of OVM's strategy. The overall plan is to aim to become a leading domestic and internationally renowned system solution provider in prestressing and related fields in the next three years, and achieve a victorious leap from the "12th Five-Year Plan" to the "13th Five-Year Plan". The connotation of the leap is reflected in: First, to build another OVM, meaning that by 2016 we will achieve sales revenue of more than 2.5 billion yuan; second, to strive for the company's successful entry into the capital market, further enhancing OVM's strength through the capital market and building the most valuable company; third, to accelerate the company's internationalization process and strive for international market sales revenue to account for more than 25% of total revenue by 2016.

Reporter: Today, China is in a critical period of industrial transformation and upgrading and accelerated development. Achieving the grand goal of making the equipment manufacturing industry strong from large is our historical mission. Prestressing is an indispensable part of China's building materials industry and is playing an increasingly important role. As an industry leader, what goals and dreams does OVM have for the development of China's prestressing industry? How will it create greater value and contribute to the realization of the great Chinese Dream?

Zheng Jin: For more than 40 years, OVM has focused on the development of the prestressing field. Since replacing imports in the 1990s, OVM's technology and products have been widely used in major projects in China and have continuously gone abroad to be applied in projects around the world, creating many miracles and making outstanding contributions to China and the world. In future development, OVM will closely focus on the critical period of our industrial transformation and upgrading, continue to shoulder the responsibility of promoting better development in the prestressing field, and promote the transformation and upgrading of prestressing technology and product services. We will not only continue in-depth research and development in prestressing technology, but also transform our development model and business model. We will extend from being a supplier of prestressing-related materials and products to covering design and R&D, product manufacturing, engineering construction, quality inspection, consulting services, and other links, transforming into a provider of overall solutions, thereby providing customers with higher-level prestressing system value and becoming their most trusted partner for system solutions. Through transformation and upgrading, we will ensure that OVM continues to maintain an absolute leading position in the prestressing field in China and can compete with international giants on the same stage, realizing OVM's goal of becoming a world-class Chinese brand and contributing OVM's strength to the realization of the great Chinese Dream!