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2005-2009 Work Summary of Emission Reduction
-- - Providing Low Carbon Economy New Type of Operation materials for interview

In recent years, Group Company has emphasized assessment and guidance of development of energy conservation and emission reduction, broken down the work objective and mission of emission reduce by levels to subordinate enterprises, monitored implementation situation at all levels, established responsibility system for the company''s management to workers at the production line as well as from Group Company to positions at basic level, and formed the work system of "Responsibility implemented by levels and pressure passed by levels". In 2009, XD Group invested RMB 8.52 million Yuan in environmental protection reconstruction in technological upgrading projects to try to reduce the discharge of COD and SO2. Discharge of COD in 2009 was reduced to 442.9 tons, discharge of sulfur dioxide was reduced to 53.6 tons, respectively year-on-year reduced by 9.14% and 19.65% compared with 2005, consequently totally completed assessment objective within 2007-2009 tenure of 8% emission reduction transmitted by the State-owned Assets Supervision and Administration Commission.

We will also manage pollution emission reduction as an important job for following a scientific approach of development and promoting good and fast economic development, stress to take technological upgrading projects as platform, strictly implement energy conservation and emission reduction, and seek for new breakthrough in key working procedures of emission reduction. For example, we will reduce the discharge of COD and SO2 fundamentally by means of implementing on-line monitoring, wastewater treatment, reclaimed water reuse transformation, kiln waste heat reuse, waste gas burning heat energy reuse projects, etc.

In recent years, all subsidiaries of Group Company have implemented large-scale technological transformation, all projects were strictly examined and approved concerning environmental protection before they are transformed in accordance with principle of "replacing old with new". As deepening of technological transformation, improvement of environmental protection management, progress of emission reduction technology as well as adjustment and enhancement of technology, Group Company''s comprehensive discharge of atmospheric pollutant has been significantly reduced. Although the production scale has been expanded in successive years and discharge of wastewater has also increased over the same period of the previous year, yet comprehensive energy consumption for unit output value has been greatly reduced, main pollutant discharge has been effectively controlled, thus realizing standard discharge and ensuring the sustainable production development of Group Company!
In recent years, XD Group''s main work in environmental protection as flowing:
Establish a leader group of Group Company in charge of emission reduction. Lead, direct and coordinate each unit of Group Company the work of energy conservation and emission reduction.

Solve the unified verification of affiliation departments concerning the environmental protection management of Group Company and its subordinated enterprises in order to enhance direction and coordination of Group Company on the environmental protect work of each unit, as well as transmission and communication of environmental protection information between Group Company and each unit. Gradually improve organizational system of energy conservation and emission reduction, which is considered as a vital safeguard measure ensuring completion of energy conservation and emission reduction mission.

Establish own environment dynamic monitoring and statistics management team. Use internal professional management to avoid too long monitoring period of government monitoring department. Indicators exceeding the standard may cause the enterprise to stop production, limit production or pay great amount of expenses for pollution discharge, so measures should be taken timely to ensure the long-term standard discharge of enterprise.

Strengthen the professional study of management personnel of environmental protection department, bring in management talents majored in environmental protection. Certain time of professional training should ensured for management personnel of environmental protection department every year.

Positively promote the implementation of energy conservation and emission reduction projects.
Project of Kiln Residual Heat Utilization Program and Green Lights Program submitted by Xi''an XD High Voltage Porcelain Insulator Co., Ltd utilizes natural gas kiln residual heat to dry electrotechnical porcelain blanks to improve utilization ratio of steam. After the project is completed, RMB 4.752 million Yuan of steam expenses can be saved every year. The project has now got approval of Xi''an City Economic Commission government special funds support.
Actively utilize national policy to obtain government funds support
Four environmental protection projects, including Xi’an High Voltage Apparatus Works: Project of UHV (EHV) Open Type Switches and Accessories Industrialization; Shuangjia Company: Project of Large Porcelain Insulator Factory Infrared Radiation Heating;
Xi’an XD Electrical Material Co., Ltd: Project of Horizontal Type Gluing Machine and Waste Gas Burning; Xi''an XD Transformer Co., Ltd: Project of Equipment Workshop Drying Room Energy Conservation and Technological Transformation, were listed in Xi''an City Industrial Development Special Funds Supporting Plan in April 2008. The projects obtained totaling RMB 2.9 million Yuan of government supporting funds.

Make depth transformation for original wastewater treatment project.

Project of Wastewater Treatment Plant Expansion and Reuse of Xi''an XD High Voltage Porcelain Insulator Co., Ltd newly established one wastewater treatment production line with capacity of 700m3/day, and made depth treatment together with the original wastewater treatment system, wastewater can be treated about 200,000m3 each year. Reuse can realize wastewater recycling for water of productive use and non-drinking water. 420,000 tons of tap water can be saved every year in the whole factory, and RMB 1.39 million Yuan of water charge can be saved.
By implementing Project of Circulating Water and Reclaimed Water Reuse Transformation, Xi’an XD Electrical Material Co., Ltd changed wastewater discharge into reaching standard of reclaimed water after dephenolizing treatment, and entering into circulating system for production in the factory to be reused with zero discharge. The company won the title 2008 Advanced Unit in Cleaner Production of Xi''an City promulgated by Xi''an Environmental Protection Bureau.

Strengthen examination for environmental protection equipment and radiating operation sites in particular.  
Xi’an XD Switchgear Electric Co. Ltd has enhanced monitoring for 34 environmental facilities and equipment within scope of factory (including 27 waste gas treatment equipment, 5 wastewater treatment equipment, 2 emitting and radiating protective devices), and formulated corresponding quantified evaluation form according to different types of treatment facilities. It has entrusted radiation monitoring station to monitor three radiating operation sites, entrusted City Environment Monitoring Station to monitor waste gas discharge of the company''s two directly fired units, consequently all indicators were in conformity with the requirements of relevant national standards.

Increase boiler desulfurization and dust collection devices
Changzhou XD Transformer Co., Ltd equipped with water curtain dust collection and desulfurization devices on the original two production boilers, the discharge of was reduced from 53.8 tons/year (3.81kg/h) in 2005 to current 19 tons/first half of the year (1.7kg/h), enabling boiler desulfurization treatment capacity to be significantly improved.

Rigorously prohibit from running, emitting, dripping and leaking based on technological improvement and management consolidation.

Under the situation of production value increased year by year and capacity gradually increased progressively in recent years, Xi’an XD Power Capacitor Co., Ltd has improved technology and enhanced management to reduce discharge of wastewater fundamentally. By the end of December 2008, the discharge of wastewater reduced by 8.3% compared with the same period last year, and discharge of COD reduced by 2,000kg.

Processing ratio of plating sludge waste reaches 100%.

Xi’an XD Switchgear Electric Co. Ltd signed Agreement concerning Harmless Treatment for Domestic Scrap and Dangerous Waste with three qualified units in order to ensure dangerous waste processing ration to reach 100%, and annual plating sludge capacity to reach 62.83 tons. It won the title "2008 Advanced Unit in Environmental Protection Management" promulgated by Xi''an Environmental Protection Bureau.
Promote improvement of environmental protection management level by implementing Environment System Authentication.
Xi’an XD Switchgear Electric Co., Ltd, Xi''an XD Transformer Co., Ltd and Xi’an XD Cable Co., Ltd have passed ISO14000 Environment System Authentication and ISO18000 Occupational Health and Safety Management System Authentication and officially entered into operational period. Xi’an High Voltage Apparatus Works and Xi’an XD Power Rectifier Company have passed external auditing of ISO14000 Environment System Authentication and ISO18000 Occupational Health and Safety Management System Authentication, and are going to get the certificates.
Xi’an XD Electrical Material Co., Ltd has now started work of ISO14000 Environment System Authentication and ISO18000 Occupational Health and Safety Management System Authentication.
Integral moving caused falling of XD Group''s COD indicators.
According to the adjustment of overall strategy of XD Group, the Casting Projects of Xi’an XD Power Rectifier Company, Xi’an High Voltage Apparatus Works Xi’an XD Switchgear and Xi’an XD Switchgear Electric Co., Ltd will be respectively moved to New and High Development Zone, Economic Development Zone and Xianyang XD Industrial Park. The original plating operation areas in the factory will be dismantled to reduce the discharge of COD fundamentally and ensure the completion of Group Company''s emission reduction indicators.

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