Sunshine Oil

CHAMBROAD CULTURE

Presented byShandongConfucius CulturalIndustryDevelopment Co., Ltd.The standard statue of Confucius waslaunched officially to the world on September 23, 2006.Based on the image of Teaching Confucius painted byWu Daozi, a famous painter in the Tang Dynasty,and combined with the typical physical appearance ofShandong people, this statue incarnates the Confucianthingking of “Benevolence” and “Propriety”as well as his profound knowledge and refined elegance.

Confucius551 B.C.-479 B.C.





ChambroadHonor

The Most Generous Enterprise in Shandong ProvinceAward to Innovations Made by Chinese Privately-run Sci-tech EnterprisesNational May 1st Labor AwardChina Award for Outstanding Contribution to CharityNational Advanced Unit of Corporate Culture ConstructionNational Contract-abiding and Trustworthy EnterpriseOutstanding Enterprise in Terms of Environmental ProtectionNational AAA-class Contract-abiding and Trustworthy EnterpriseChina Outstanding Privately-run Sci-tech EnterpriseNational High-tech EnterpriseChina Top 500 IT Application EnterprisesChina Top 500 Chemical EnterprisesChina Top 500 Privately-run EnterprisesChina Top 500 Manufacturing EnterprisesChina Top 500 Enterprise

Ma Yunsheng, Chairman of the Board of Shandong Chambroad Holding Co., Ltd., a deputy to the 10th and 11th People’s Congress of Shandong Province, a member of the Standing Committee of Binzhou Municipal People’s Congress, an executive director of China Enterprise Confederation, an executive director of China Chamber of Commerce for Petroleum Industry, a member of China Confucius Foundation, vice president of Shandong Enterprise Federation, honorary president of Boxing Charity Federation, sponsor of Shandong Le’an Charity Foundation, enjoys the special government allowances of the State Council of China.Torch Bearer of the 11th National GamesMayor Quality Award of Binzhou CityShandong Top 10 Meritorious Entrepreneurs of HarmoniousShandong Young and Medium-aged Expert with Outstanding ContributionsShandong Labor Medal in Terms of Enriching People and Invigorating ShandongShandong Sci-tech Progress AwardExcellent Communist Party Member of Shandong ProvinceTop 10 Filial Piety Stars of Shandong ProvinceShandong Charity Award, Most Generous and Loving Charity Donator Award for OutstandingContribution to CharityChina’s Top 10 Figures of Privately-run EnterprisesNational Outstanding Privately-run Entrepreneur of Petrochemical EnterprisesNational Advanced Worker in Chemical IndustryNational Advanced Individual in Terms of Corporate Cultural ConstructionNational Model of Respecting the Aged and Loving the RelativesNational May 1st Labor MedalNational Model Worker

Ma Yunsheng,Chairman of the Board,Shandong Chambroad Holding Co., Ltd.







ContentsChapter One 14-27LAW OF HEAVENObserve the Motion of Heaven and Do in Accordance with Its Law•About Chambroad •Development Course•Strategic Thought •Strategic Target •Sales RevenueChapter TwoLAW OF EARTH 28-67Business Carries Morals and Morals Produce Harmony•Family Tradition •General Principles •Responsibilities •Vision •Mission•Spirit •Values •Purpose •Outlook on Life •Outlook on Development•Concept of Talents •Management Philosophy •Innovation Ideas •Administration Notion•Family Motto •Exploration & KnowledgeChapter ThreeLAW OF MAN 68-147Take Benevolence as Root and Man as Foundation•Classic Stories of Excellent Employees •Sharing from Chairman of the Board•Filial Piety to Staff •Filial Piety to Customers •Filial Piety to Society•Appreciation of Calligraphic Works by Employees•Appreciation of Calligraphic and Painting Works by Employees' Parents •Logo Interpretation



ONE LAW OF HEAVENObserve the Motion of Heaven and Do in Accordance with Its Law

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismAbout Chambroad Shandong Chambroad Holding Co., Ltd. is located tech Enterprise”, “China Outstanding Privately-runin Boxing, where is the hometown of Dong Yong, a Sci-tech Enterprise”, “National Advanced Unit ofman who is famous for his filial piety during the Han Corporate Culture Construction”, “National Contract-Dynasty. Shandong Province, where Boxing is located, abiding and Trustworthy Enterprise”, “Award tois the hometown of Confucius and Mencius as well as Innovations Made by Chinese Privately-run Sci-the birthplace of Sun Tzu, a famous military strategist tech Enterprises”, “Advanced Tax Paying Enterpriseof ancient China. The establishment preparation of of Shandong Province”, “Shandong ProvincialChambroad started in 1988. In 1991 the construction Advanced Metrological Management Enterprise”,was finished and the production was soon put into and “Shandong Provincial Bank Credit Rating AAAoperation. Nowadays Chambroad is a large-sized Unit”. Chambroad Technological R & D Centerprivately-run enterprise engaged in many industries has been awarded the title of “Shandong Provincialsuch as petrochemicals, fine chemicals, culture & art, Technological R & D Center. Chambroad is alsoeducation, modern service, modern agriculture and one of the earliest companies among the domesticstrategic investment. Its annual sales revenue exceeds industry to be granted with the triple (unified) system10 billion yuan, with profits and tax of more than one registration certification of ISO9000, ISO14000 andbillion yuan. OHSAS18000. As a market-oriented company, Chambroad The new starting point is meant for a new leapkeeps abreast of the market and adheres to scientific forward. In accordance with the goals stipulated inmanagement and a development strategy of the medium and long term development strategy,“prioritizing main business in chemical industry and Chambroad Holding Co., Ltd. is accelerating its pacetaking into account other related industries” to improve of development by reinforcing its learning executiveits management and economic benefits. It is in a leading capacity, giving full play to its talents, technology andposition in corporate cost control and management management, and targeting at the high-end market.among companies in the same industry across China. The aim of Chambroad is to develop itself into an enterprise of century integrity and establish a brand of Continuously Chambroad has been awarded many century influence.titles and honors, including “National High-techEnterprise”, “China Outstanding Privately-run Sci-

Chapter One LAW OF HEAVEN 17Observe the Motion of Heaven and Do in Accordance with Its Law

CHAMBROAD CULTURE Integrity Dedication Improvement Altruism Chapter One LAW OF HEAVEN 20 Observe the Motion of Heaven and Do in Accordance with Its LawDevelopment On January 1, 2007，the On January 4, 2011, Shandong Taifeng Culture & Art Co., On January 21, 2011, Shandong Yifeng Bio-chemical and EnvironmentalCourse publication of the corporate Ltd. was set up. With the establishment of cultural platforms Protection Co., Ltd. was set up. magazine Chambroad as the mainline, investment and management of artifacts In 2000, the company established a On June 10, 2005, Shandong People was published. as the means and culture & art company characterized In 2011, Shandong Kunlun Chambroad Energy Co., Ltd. was set up in Technological R & D Center. Chambroad Group was Chambroad culture as objectives, this company is committed cooperation with China National Petroleum Corporation. On October 12, 2012, In 2000, the company established the renamed as Shandong On October 23, 2007, to the spread of Chinese traditional culture and wisdom. its Binnan Logistics Standard Station was put into operation. corporate culture based on “benevolence Chambroad Holding Shandong Qingyuan 2010sand filial piety”, which laid a solid foundation Development Co., Ltd. Environmental Protection In March 2009, Chairman Ma 2011 2014 for the establishment of ever prospering Engineering Co., Ltd. Yunsheng received special 2000sIn April 1995, the Party century-old Chambroad. On October 20, 2005, No. 2 was set up. government allowances of 2010 2012 2013 On April 25, 2014, Shandong1990s Committee and Government Gas Station opened up. the State Council of China. Chambroad Timber Material Co., Ltd. of Boxing County made some On December 17, 2000, Lubricating Oil & Grease Plant of Boxing County In 2007, Chambroad On March 22, 2012, Shandong Bohua Efficient In March, 2013, the internationally advanced Italian was set up. adjustment to the leadership of was restructured from a state-owned enterprise into Shandong Chambroad In November 2005, Petrochemical ranked 37th 2009 Eco-agriculture Science and Technology Co., Ltd. butyl synthetic rubber technology was introduced. the enterprise and appointed Ma Petrochemical Co., Ltd., which was a privately-run enterprise. On December Shandong Jiulong Tourism among China’s top 500 was set up, marking the company’s first official The five-ton butyl rubber project with a total In 2014, Chambroad Holding ranked Yunsheng, then Party Committee 18, Shandong Chambroad Group was established. Chairman of the Board Culture Co., Ltd. was set up chemical enterprises. 2008 involvement in agriculture. Till then, the company’s investment of 1.6 billion yuan was started and this 326th among China’s top 500 Deputy Secretary and Township made important remarks on this restructuring: “Before it, we ran the state-owned and Chambroad began its industries multi-operation covered the primary project was listed as a provincial key project. Upon enterprises, 10th among China’s top Head of Caizhai Town, to be enterprise as our own enterprise. After it, we will run our own enterprise as a social involvement in the industry of 2007 industry, the secondary industry and the tertiary completion, the main operation income will amount 500 chemical enterprises, 83rd among the president of this Lubrication undertaking.” tourism culture. industry. to 2 billion yuan and the profits and taxes one billion China’s top 500 privately-run enterprises Oil & Grease Plant. Since In March 2003, Chambroad Le’an Real yuan, pushing the petrochemical industry forward. and 162nd among China’s top 500 then, the enterprise ushered 2000 2005 Estate Co., Ltd. was established. In April 2012, Chambroad Holding restructured manufacturing enterprises. in a new beginning of leaping Shandong Petrochemical Co., Ltd. into holding On May 18, 2013, the statue group of Confucian development. 2003 2006 In 2008, Shandong Chambroad New On December 21, 2010, operation. Disciples Asking Benevolence was set up at In 2014, Chambroad community, with Energy Holding Development Co., Shandong Chambroad Chambroad. an investment volume of over three 1995 Ltd. was established and Chambroad In 2010, the company invested five billion Holding Development Co., On September 10, 2012, Chambroad Chinese billion yuan, achieved harmonious stepped into the new period of gas yuan on the new petrochemical project. With Ltd. was restructured into Culture Business School was officially inaugurated. On May 26, 2013, the “Yanyi Building” of Yellow agriculture, farmers and rural area stations’ rapid development. an area of over 1.2 million square meters, Shandong Chambroad The company’s management was systematically River Delta Chambroad Chemical Institute, with where “children are properly educated; the construction of this project was divided Holding Co., Ltd., marking a integrated with the nine traditional culture systems an investment volume of 200 million yuan and a youth make achievements and elders1991 1992 1996 On May 1, 2005, President In September 2006, into 3 stages. With an investment of 3.2 In April 2010, Chairman of the new step toward normalized including Confucianism, Buddhism, Taoism, I-Ching: construction area of 20,000 square meters, was are properly provided for” by adopting Ma Yunsheng was awarded Shandong Confucius billion yuan, the first-stage project was put Board of the company was operation and management Book of Changes, Mohism, Su Tzi’s The Art of War, completed and put into operation. So far this is an the agricultural chain service model of In October 1996, 1998 In 2003, Chambroad Industrial Park the May 1st Labor Medal. Cultural Industry On June 16, 2008, the grand unveiling into production in 2011. With an investment granted the title of “National and laying a solid foundation Legalism, tactics, and traditional Chinese medicine, R & D building with the largest construction area in “the industrialization of agriculture, the the first gas station was constructed. Development Co., Ltd. ceremony for the large Statue of of 1.8 billion yuan, the second-stage project Model Worker”. for the realization of the marking the beginning of the new business model Binzhou. changing of farmers into workers and of Chambroad was In August 2006, the company carried was established. Taking Confucius presented by President Hu was put into production in 2012. After all company’s long-term strategic based on the combination of modern corporate In 2013, Chambroad Holding ranked 366th among the urbanization of the rural areas”. completed. In February 2003, Shandong out the enterprise management reform spreading Chinese Jintao to Waseda University during units are put into operation, the annual sales On November 11, 2010, development. management and traditional Chinese culture’s China’s top 500 enterprises and 188th among Up to now, two modern communities Chambroad Water Supply Co., Ltd. of “metamorphosis”, which clarified Confucianism culture as his visit to Japan was held. This statue revenue will increase by 32.3 billion yuan and Shandong Xin Tianhong wisdom. China’s top 500 manufacturing enterprises. have been completed, where all was set up. And in May 2004, it was the company’s development strategy, its mission, it is committed was designed and produced by the annual profits and taxes will increase by Water Utilities Co., Ltd. was In 2010, Chambroad Holding kinds of infrastructure such as elders’ officially changed into Shandong optimized institutions and procedures, to the development of Shandong Confucius Cultural Industry 3.2 billion yuan. By that time, the company’s set up. ranked 375th among China’s apartments, schools, kindergarten, Boxing Huayun Water Industry Co., Ltd. established an effective performance Confucian culture and Development Co., Ltd. comprehensive working ability will reach 12 top 500 enterprises and residential buildings are available. appraisal system, and constructed the related cultural projects and million ton per year. 199th among China’s top 500 In March 2003, the Technological R more flattening organizational structure. cultural products to promote In 2008, with a total of 10.8 billion yuan, the manufacturing enterprises. & D Center was awarded the title of The never-satisfied Chambroad the building of a harmonious company’s sales revenue exceeded 10In 1991, the construction On December 29, 1992, In October 1998, the strategy of Shandong Provincial Technological R people constantly explored modern society. On 23rd, the Statue billion yuan. Since then, the company hasof Lubricating Oil the 200,000 ton/year diversified development based & D Center. management modes more suitable of Confucius was officially developed rapidly.& Grease Plant of crude oil unit was put on petrochemical industry was for the enterprise’s development by its launched to the world.Boxing County was into production. established. In May 2003, Boxing Hengfeng courageous self-negation on its reform On November 28, 2008, the firststarted after years of Thermo Power Co., Ltd. was set up. way. postdoctoral research workstation inpreparation since 1988. 1993 Boxing County was unveiled in theThe construction was company.completed and the plant In February 1993, the administration authority In August 2010, Binzhou Le’an Benevolence and Filial Piety Charity Foundation In 2012, Chambroad New Energy Co., Ltd. set upwas put into operation of the enterprise was changed to the Oildom sponsored by Chairman Ma Yunsheng was established, dedicating itself to the many joint ventured subsidiary corporations. With thein the same year. This Administration Office of Boxing County from improvement of the living conditions of the elders and the cause of respecting constant expansion of the company, its gas stationsis the predecessor of Boxing Technical School. and caring for the elders, the aid to impoverished or seriously ill children, and the radiated all over Shandong province and the brandChambroad, a school- advance of the harmonious society. image of these stations was upgraded.run factory with less than100 workers.

CHAMBROAD CULTURE Integrity Dedication Improvement Altruism Chapter One LAW OF HEAVEN 23 Observe the Motion of Heaven and Do in Accordance with Its LawStrategic Strategic GoalsThought 2 Strive to be one of the world’s top 500 enterprises (in return on By 2020 assets, return on sales, profit rate on funds, team construction and Modern corporate culture) and become the most responsible and useful Services enterprise for both society and customers. Manufacturing Rangking among World's Top 500 Enterprises 1 STRATEGIC GOALS 4 Culture & Art Modern and Education Agriculture 3 Based on total risk management and with innovation and capital operation as its emphasis, fuelenergy chemicals as its main industry, culture operation as its basis, modern service industry as itsguarantee, urbanization and agricultural modernization as its growth points, resources recycling as itsbreakthrough, Chambroad aims to establish a sustainable ever-lasting enterprise that is responsiblefor the society and cares for its staff. Development of “One Core, Four Sections and Nine Industries” of the Company Taking Shandong Chambroad Holding Co., Ltd as its core, Chambroad targets at the developmentof four sections, including manufacture, modern services, culture & art and education, and modernagriculture, and nine industry groups, including chemical industry, culture & art and educationindustry, modern service industry, eco-environmental protection industry, new material industry,modern logistics industry, real estate industry, investment industry, and modern eco-agriculture.

CHAMBROAD CULTURE Integrity Dedication Improvement Altruism Singapore

Chapter One LAW OF HEAVEN 25 Observe the Motion of Heaven and Do in Accordance with Its Law Beijing Changchun ShenyangLanzhou Qingdao Shanghai Wuhan Guangzhou Taiwan Shenzhen Hong Kong With a nationwide presence and involving all walks of life, the industry companies of Chambroad Holding are developing rapidly to the international market. It is anticipated that the Chinese benevolence and filial piety culture will spread throughout the world in the near future.

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismSalesRevenue 43.6 billion yuan 35.4 billion yuan 28 billion yuan 20.8 billion yuan 10.833 billion yuan 5.704 billion yuan 3.044 1.433 billion yuan535 billion yuanmillion yuan2000 2003 2004 2006 2008 2010 2012 2013 2014

Landscape by Huang BinhongCollected by Chambroad Culture & Art Museum



TWO LAW OF EARTHBusiness Carries Morals and Morals Produce Harmony





CHAMBROAD CULTURE Integrity Dedication Improvement AltruismChambroadFamilyTradition Just No Shuffling Patriotic No Complaining Innovative No Venting Diligent No Same Mistake Humble Respect Superiors Self-improvement Help Colleagues Tolerant Fulfill Subordinates’ Success Responsible Growing Companions Democratic Respect the Aged and Help Harmonious the Feeble Follow the Law of Heaven and Keep Filial Piety

Chapter Two LAW OF EARTH 33 Business Carries Morals and Morals Produce HarmonyGeneral PrinciplesFamily Precept: Business Carries Morals andMorals Produce HarmonyFamily Virtue: Be Righteous and Benevolent Loyaland FilialFamily Rule: Observe the Motion of Heaven and Doin Accordance with Its LawFamily Property: Take Benevolence as Root andHuman Being as Foundation

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismGeneral PrinciplesFamily Precept: Business Carries Morals and Morals Produce HarmonyFamily Virtue: Be Righteous and Benevolent Loyal and FilialFamily Rule: Observe the Motion of Heaven and Do in Accordance with Its LawFamily Property: Take Benevolence as Root and Human Being as Foundation

Chapter Two LAW OF EARTH 35 Business Carries Morals and Morals Produce HarmonyFamily PreceptBusiness Carries Morals and Morals Produce Harmony Everything in the universe grows out of nothing. Yin resources. As a social undertaking, Chambroad has beenand Yang together constitute the law of the universe, pursuing the harmony and unity of corporate valueswhich is the highest law of harmony. Born into the and social values, performing its duties of runninguniverse, human beings should abide by the highest business like operating conscience, and rewarding“law of harmony” and conform to the laws of nature. society with actions for the trust it receives. ChambroadProsperity, democracy, civilization and harmony are the believes that it is strictly forbidden to do anything thatembodiment of socialist core values at the national level. violates the natural law of development or the moralityIn terms of enterprises, making business means keeping and conscience, and that enterprise can flourish only byconscience and there is no contradiction between running it in the right way and harmony is the eternal“business benefits” and the “law of harmony”. What principle of the growth of enterprises.an enterprise pursues should not be the maximizationprofit, but rather the maximization values and utilizationFamily VirtueBe Righteous, Benevolent,Loyal and Filial As the foundation for a person’s development, good management of households, medium filial pietybenevolence and filial piety are also the quintessence leads to good management of enterprises, and greatof moral education of Confucius. A benevolent person filial piety leads to good governance of a nation. Incan make the world peaceful. The implementation Chambroad, the administrators carry out benevolentof benevolent governance will lead to the peaceful management and preach filial piety. Benevolence andco-existence of ordinary people and the emperor. filial piety run through their work, life and growth. ByEveryone can live in peace and work in happiness, practicing benevolence and filial piety in various forms,which is the harmony that our family tradition Chambroad is doing what benevolence advocates. Thatadvocates. Filial piety is the basis of good virtues, is to love all men and to know all men. Chambroad aimswhere good breeding comes from. Fulfilling filial piety to cultivate the charisma of leadership in accordanceis the foundation for establishing morality. Accordingly, with the moral etiquette, procedures and institutions.we should fulfill filial duty to our parents, to oursuperiors, and to our people and nation so as to gainfame and position. Therefore, little filial piety leads to

CHAMBROAD CULTURE Integrity Dedication Improvement Altruism Making the complicated issue simple—Shu ; Making the simple issue complicated—Tao.Family RuleObserve the Motion of Heaven and Doin Accordance with Its Law Effective implementation stems from good strategy and strategy planning comes from the natural law. Goodstrategy planning and effective implementation lies in the administrators’ understanding of the law of nature,which puts forward new requirements for the executives: abiding by law, seizing opportunities and mastering ofmanagement techniques. These three levels are indispensable to each other. Laws can be explored and grasped. The development of Chambroad lies in its compliance with laws. Theplanning of strategy, the nine industries in four sections are laid down in accordance with the law of China’seconomic development. Laws are to be followed rather than revolt against. The mission of administrators is toconvey the idea of seeking and following laws to their teams.Family PropertyTake Benevolence as Root and Human Being as Foundation The idea of human orientation consists of two shades of meanings. One is the basis of benevolence. The other ishuman orientation. Since human is the most fundamental element for enterprise development, human orientationmeans to foster, inspire, care and bring accomplishment to its employees with benevolent policies. Adhering to the idea of human orientation, Chambroad attaches great importance to the growth of staff teams,including the nine-level instructor team, the seven-class training systems and five-promotion channels. Practicingits corporate culture of benevolence love and altruism, Chambroad has been showing its filial piety to its staff,customers and society. Its constant practice of human orientation in and out management guarantees and improvesthe constant growth of our enterprise, which demonstrates the social values of our enterprise and ensures the long-term sustainable development of Chambroad.

Chapter Two LAW OF EARTH 37 Business Carries Morals and Morals Produce HarmonyChambroad Responsibilities New Rural ConstructionServe the Country with Industryand Serve the Society Little filial piety leads to good management with benevolence and filial piety as its core values, toof household; medium filial piety leads to good the contributions and returns to the society, and tomanagement of enterprises and large filial piety leads turning Chambroad into a social Chambroad. Whileto good governance of a country. Filial piety is gratitude making significant progress in enterprise, we have beenand reward. keeping our promise of being “most beneficial” and trying to influence and put forward the development of Chambroad is a Chinese enterprise that takes both materials and socialist culture and ethics with ourbenevolence and filial piety as its core corporate development results.culture. As a Chinese prirate enterprise, Chambroadis committed to supporting and making contributions What business and industry an enterprise does is notto the growth of China, which is also the responsibility what matters most. What is really important is to doof every Chinese enterprise. Chambroad devotes itself well whatever we are doing, to give your enterpriseto the glory of the Chinese nation by offering more better development and excellent performance. Thus,financial support to the nation and providing larger to become a century-old and ever-lasting enterprise, itdevelopment platforms for more people. must be altruistic all the time, which means to take its social responsibility and to do things most beneficial to Chambroad’s vision of “establishing the most society. This is what we mean by serving society andresponsible and beneficial enterprise to society and being filial to society.leaving enterprise platforms with sustained profitabilityto posterity” and its mission of “manufacturingsatisfying products for customers and cultivating usefultalents for society” come from its responsibility ofserving the Chinese nation with industry. In the process of its development, Chambroad hasbeen dedicated to the establishment of corporate culture

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismVisionEstablishthe Most Responsibleand Beneficial Enterprise forSociety and LeaveEnterprise Platforms with SustainedProfitability to PosterityThe source of improvement is This is the future vision of Chambroad, which is an unchangeablewisdom. Good products originate answer and promise to what kind of enterprise Chambroad aimsfrom good ideas. to develop itself into, and the embodiment of Chambroad’s development direction and strategic position. Chambroad has been committed to developing its corporate culture with benevolence and filial piety as its core values, to dedicating itself to and reward society, to developing Chambroad into social Chambroad. What entrepreneurs operate is their conscience, which is embodied by good management of enterprises and establishment of excellent culture of being men. We have been keeping our promise of “being a useful enterprise” with our own actions to be responsible for staff, customers and environment. Today’s business depends on management; tomorrow’s on innovation; the day after tomorrow’s on training; and the future’s on culture. Only in this way can we establish an enterprise platform with sustained profitability for our descendants. Being sustainable, flourishing and harmonious, this platform is meant to be most responsible and everlasting. Earning money is not the ends of Chambroad but a means to achieve the objective of value maximization. Only in this way can Chambroad achieve its dream of becoming an everlasting century-old Chambroad.

Chapter Two LAW OF EARTH 39 Business Carries Morals and Morals Produce HarmonyMissionManufacture Satisfying Products for Customers and CultivateUseful Talents for Society For over 20 years we have been taking producing spiritual wealth and the mission of cultivating excellentvaluable exchangeable commodities, serving and and outstanding talents, we are committed to theproviding service and problem solving methods, and development of Chambroad to provide better service forpromoting material development of our society as our society. For over 20 years, people in Chambroad havemission. In addition, we aims to produce and create been taking the enterprise as a college of continuingmore carriers of culture so as to inherit and elevate education, which has cultivated tens of thousands oftraditional Chinese culture and promote the progress excellent employees. The development of the enterpriseof socialist culture and ethics. In all our products are is accompanied by the continuous progress and growthembodied the wisdom and dedication of Chambroad of its staff. We are influencing our society by developingpeople. Chambroad. People in Chambroad are rewriting and inheriting the Chinese culture in the new era with As an important part of society, companies are modern business civilization.important groups for social development and progress.The development of nothing is possible without humanand talents, let alone the useful talents. Shoulderingthe responsibility of creating human material and

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismSpiritBearing Hardship,Dedicating to Work,Being Frugality andDrawing SwordBearing Hardship The corporate spirit of bearing hardship means that if one intends to achieve something, he should be able, braveand willing to bear hardship, be ready to bear setbacks and frustrations, and be capable of doing things in a down-to-earth manner without caring too much about one’s own interests. Thus, the hardship bearing spirit is beneficialto the growth of an enterprise, leading it to one success after another. Looking back at the development of Chambroad, we have undergone many trials and hardships and it is withour readiness to bear hardship, our courage to bear setbacks and frustrations, and our fearlessness of difficultiesthat Chambroad has developed all the way from a small and weak enterprise into a big and powerful one. NowChambroad is in a new developing period, requiring people in Chambroad to inherit and carry forward this spirit.Fearless of difficulties and tiredness, we should accomplish our own work and be responsible for all the work in ourposts by working vigorously and paying attention to details. We should incarnate our own quality and value with theconcept of “doing the right thing and doing things rightly”. Meanwhile, we should also have a right attitude towardwork, willing to do the basics from grassroots and loyal to the responsibilities that Chambroad gives to us, andaccumulate our virtuous deeds and knowledge whole-heartedly. In the practical work, we should believe in the view that suffering losses and bearing hardships are blessings andthat able person should do more work and more work produces more capabilities. So why not work more? Physicalstrength would decrease without being used and one would become dull if his brains are not used. As long as wecarry on our diligence and humbleness as well as hardship bearing spirit, we can do better than others and can makegreat contributions to our enterprise. At the same time, our enterprise provides us with a development platform or ajumping board leading to success. Therefore, it leads to a win-win result because making more contributions to theenterprise also means laying solid foundations for our own success.

Chapter Two LAW OF EARTH 41 Business Carries Morals and Morals Produce HarmonyDedicating to Work Dedication to work is a judgment standard for team with benevolence and intelligence. As the corewhether our work behavior is right or wrong. We will of corporate undertakings, teams decide the failure ordo everything that will promote the development of our success of the enterprise. Teams are like our family. Weenterprise and will never do anything that is detrimental should cherish and care for every member of the family,to the development of our enterprise. This is what we cultivate him into the pillar of the company. We shouldshould take into consideration in the first place whether try to solve and turn whatever problems encountered byit is in doing things or being a person. By “dedicating teams into the driving force of the company’s progressto work”, we mean the following points. The first is we with our intelligence. The third point is to treat ourshould treat our undertakings with respect and self- customers with gratitude and reverence. Customers aremotivation. The undertakings of our company are also god to us. Without their existence, there would be nothe undertakings of its staff. Since it is the business of value for us. We should try to satisfy our customers byour own, we can do the work well with respect and providing them with valuable commodities or schemesenterprising mentality. The second point is to treat our that meet their demands.

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismFrugality Frugality is a virtue, a kind of consciousness, a kind ofnotion and a kind of wisdom. Frugality means innovationsince it tries to output more with the same input or inputless with the same output. Frugality means benefit sinceit reduces the cost and minimizes waste. Frugality meansinfinite innovations with limited resources by maximizingthe functions and value of resources. Chambroad started from scratch. Its development froma small weak enterprise to a large powerful one reflects thegood tradition of frugality and diligence of Chambroadpeople. Our family, enterprise and country are still inthe developing stage. So we should cherish the hard-wonmaterial wealth. Frugality must start from petty things sinceno good deed is too small. In production and management,frugality must start from a drop of water, a kilowatt ofelectricity, a lump of coal, a gram of raw material, anda cent of money because many a little makes a mickleand the reduction of costs means the rise of benefits. Intechnological research and development, frugality can bedone by optimizing technology, maximizing the utilizationof raw materials, and minimizing energy consumption.In talent allotment, frugality can be done by making thebest use of every individual. Thus, frugality means placingthe right resources in the most suitable position, givingfull play to the resources, maximizing the comprehensiveuse of resources, and establishing Chambroad’s enterpriseplatform with sustained profitability.

Chapter Two LAW OF EARTH 43 Business Carries Morals and Morals Produce HarmonyDrawing Sword The spirit of drawing sword means that one gives all resources, to achieve success and to progresshimself the winning confidence and gives his team continuously rather than doing nothing and waiting forstrength by drawing his sword even if he is aware that failure. The third part of drawing sword is to improvehe is no match for others due to the great disparity in constantly and go ahead continuously, which meanscapability. Even if he falls down unfortunately, he must taking lessons from failures and experiences in doingbecome a mountain, a ridge, a marker post instead of a businesses and supporting the new round of fighting socoward who is frightened by a difficulty or problem. as to win another victory. Attitude is the top priority of drawing sword. One The logic of the spirit of drawing sword is “wanting toshould be bold enough to try, to innovate, to be the do something—daring to do something—being capablefirst, to challenge and to fire at questions, and to of doing something—being good at doing something—criticize himself, so as to force himself and his team to accomplishing something”, which is also the inevitablemove forward, to progress constantly and to defeat the course for the growth of everyone in Chambroad. Indifficulties. The primary requirement of the spirit of terms of its growth, Chambroad started and developeddrawing sword is to face up to difficulties and advance its business by drawing sword all the time. The spiritdespite difficulties. People in Chambroad will never be of drawing sword was, has been and will always befrightened and crushed by problems. Drawing sword Chambroad’s weapon to win victories and only this canmeans regarding difficulties as driving force rather than guarantee the ever growing of century-old Chambroad.pressure. Actions should be taken only after carefulplanning with the purpose of defeating all difficulties.Centering around success as the bottom line, one shouldanalyze the problems calmly and carefully and try everymeans to solve the existing problems by integrating

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismValuesIntegrityDevotionImprovementAltruismIntegrity effective systems should be set up, including the norms to guarantee integrity deeds and open, fair and just Without integrity man could not establish himself reward and punishment policies to constrain dishonestas an honest man. Similarly, without integrity, an behaviors and inspire upright ones. At the same time,enterprise could not achieve success. Integrity is the staff ’s honest service awareness and quality should behigh morality as well as good conduct. It is both enhanced by guiding them to practice integrity valueresponsibility and principle. The reputation and system. Only by improving customers’ satisfaction canimage of an enterprise are its intangible assets. Just as an enterprise expand itself and build its own brand.the saying goes, first class enterprises export culture;second class enterprises export brands; and third class Our products make such promises to customers thatenterprises export products. In modern economic we will ensure the highest quality, never replacing lowsociety, integrity serves not only as codes of ethics but price with low quality. We would rather lose temporaryalso as important resources, even more important than profits for low price than make life-long apology tomaterial resources and human resources in some way. It customers for low quality. We try our best to reduce costcan bring economic benefits to enterprises. Integrity is only for your possession of topmost cost performance.the foundation for enterprises to gain maximum profits. It is perfect quality that constitutes our pride and value.The maximization of economic benefits is the objective To fulfill our promise, we will never defame our brandof the survival and development of an enterprise and for short-term benefit and all our efforts and persistencehonest operation is the source of lasting economic are just to meet your expectations and trust. We arebenefits. There is no foothold for an enterprise without committed to creating a bright future with high quality.integrity in the modern society. As the most important part of market economy, Therefore, it is of special significance to establish an integrity determines the failure or success of anenterprise’s integrity. First, as part of corporate culture, enterprise. It can achieve its sustainable developmentintegrity should run through the daily operation of and push forward the improvement of market economyan enterprise, including staff ’s integrity education and only with better integrity construction.creation of integrity culture atmosphere. To establishintegrity of an enterprise, the administrators shouldenhance their own cultural quality of integrity andserve as role models to employees. Second, practical and

Chapter Two LAW OF EARTH 45 Business Carries Morals and Morals Produce Harmony If you have not invested in your subordinate, you should not require her to invest in her subordinate.Devotion Devotion is inherent in the genes and flows in the blood of people in Chambroad. Generations of people havedevoted their youth to this land and devotion itself is filial piety. The development of Chambroad can not beseparated from the support and help from its staff and society. Chambroad has always been keeping the promise of“being a beneficial enterprise”. We adhere to the belief that Chambroad should influence and carry forward thelocal material wealth and socialist culture and ethics with the developing results of Chambroad. The growth of an enterprise is impossible without the society, its staff and customers. We should treat our staffwith the same mentality as we treat our own children. We should treat customers with the same mentality as wetreat members of our family. To be specific, we should serve and reward our customers with valuable products andservices, benefit and devote to society with our performance and responsibility, and influence more people with ourbenevolent hearts and behaviors. Bearing the weight of history and shouldering the responsibility of future, people in Chambroad keep thinkingabout how to better develop their enterprise and to share the benefits of their developing results with its staff andsociety. This requires us to be self-knowing, self-effacing, self-possessed, responsible and diligent, trying to influenceevery person around us with such gratitude and realizing the unity of self-worth and social values in selflessdevotions.

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismImprovement With this or that problem, an individual or a team every company should organize monthly appraisal ofneeds to make constant self-improvement. We need improvements to better the improvement atmosphere.continuous promotion in knowledge and ability. Besides,the unceasing appearance of new things and new What is improved are things and what is bettered areproblems with the development of the enterprise and our hearts. Our objectives are to make improvementsociety requires us to make adaptations and deal with a habit and to develop our ability to find, analyze andthem. Thus, improvement is a must for us. solve problems. Improvement is not to take formalism, but it needs to be done by means of some forms. It is Improvement is ubiquitous. It exists everywhere not only the requirement of work but also the necessityat every time. Improvement has no limit. It only for an individual or a team’s growth. So we should treathas starting point without ending point. Since improvement with permissive and support attitude.2011 Chambroad has kept making constant and Different from reform, improvement means the gradualcomprehensive improvement among all members and perfection of the existing situation. It goes through fromsections. quantitative change to qualitative change and equals innovation once breakthroughs are made. There is no small or large for improvement and weshould not refrain from making small improvements.The growth of an enterprise lies in its long timeaccumulation. The objective of improvement isenhancement. Every company should give reports ofits monthly improvement, demonstrate improvementresults and offer incentives to improvements. Also,

A leader should always keep altruism in his mine; Locust on Plantain by Qi Baishiotherwise he is not a qualified leader. Collected by Chambroad Culture & Art Museum Altruism Just as Confucius advocated, we should treat others as we would like to be treated, help others get benefits what we would like to achieve. Altruism is actually being good to oneself. We should put altruism ahead of egoism. Advocating the spirit of altruism, people in Chambroad have been interpreting with their actions the mission of producing satisfying products for customers and cultivating useful talents to society and keeping the promises to staff, customers and society. What we seek after is not profits but to achieve the unity of values of enterprise and society by means of profits. Personal benefits and desires should be given up to walk on the right track. We persisted, have been persisting, and will ever persist in taking enterprises as social enterprises to carry forward and influence the local development of both materials and socialist culture and ethics.

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismPurposeHaving a Good Heart, Doing Good Deeds, Saying Kind Words,Being a Kind Person, Correcting Attitude, Learning to Be anExcellent Teacher, Acting as an Exemplary Person, TreatingOthers with Integrity, Devoting Oneself to Society, Developing andInnovating, and Benefiting PosterityHaving a Good heart, Doing good Deeds,Saying Kind Words, Being a Kind person, and Correcting Attitude As ways of survival, having good intentions, doing good deeds,saying kind words and being a good person are required by everyonein the world. In our mission statements, the word “good” is addedto the fundamental survival rules of human society creatively, whichraises Chambroad’s survival view to a higher level. By “good”, wemean always having altruist intentions to know the demands ofmarket, always doing just deeds to achieve altruist effect, alwayssaying appropriate words to benefit the team’s progress and toenhance customers’ loyalty and belongingness to Chambroadbrand. We should become people with good intentions, just deedsand appropriate words. Thus, “good” is not only what Chambroadendeavors to achieve but also a persistent way to achieve it. Senses and enlightenment refer to the thoughts liberated fromconstraints in self-development and correcting consciousnessimprints the “good” principle onto self-development. “Good” is thestandard to judge whether the thoughts are noble or not. Sensesand enlightenment are not something we are born with. They comefrom constant practice in work and life. For people in managementpositions in particular, practicing “correcting, sensing andenlightening” is to adjust themselves to the right management qualityin the first place, to bring their inner thoughts to the open and reflecton them. Good senses and enlightenment can be gained only afterlong study and accumulation as well as rigorous practice in their ownpositions.

Chapter Two LAW OF EARTH 49 Business Carries Morals and Morals Produce HarmonyLearning to Be Excellent Teachers, Acting as Exemplary Persons “What one learns should be extensive enough to be excellent teachers and what one does should be good enoughto be role models”. We should try to make contributions to our company and society whole-heartedly and bringblessings to our descendants. “Learning” should be life-long learning; only with profound knowledge can one bean excellent teacher; only with high morality can one educate talents. “Acting” must be in line with Chambroad’sbehavior norms or even better. Only with benevolent love for students can one win the love from students and winthe hearts of all. The manners of a gentleman will be guidance for future generations in the world; the behaviors of a gentlemanwill be the moral standards of future generations in the world; the words of a gentleman will be maxims of futuregenerations in the world. In terms of learning, we should make efforts to master a professional skill so that we canbe teachers in this aspect. In terms of deeds, we should take the lead and set an example and role model for others.In terms of ways to deal with people and things, we should base our deeds on integrity with devotion to society asthe ultimate objective.Sincerity to People and Devotion to Society With honesty and devotion to markets and society, the markets will become boundless and the society will becomemore progressive because markets treasure our integrity and depend on our dedication.Developing and Innovating, Benefiting Posterity Just as a finite life will perish without exercises, Dare to think and act in terms of development; Work in aan infinite enterprise will stop the steps of progress clever and flexible way in terms of management.without innovations. The development of anenterprise needs innovation and only with constantinnovation can an enterprise grow. “Benefit”means being unusual for people in Chambroad,which comes from the conquest of difficulties withstrong perseverance, from the constant advancewith self-improvement, and from people’s beliefin and reliance on Chambroad. For people inChambroad, enjoying benefits means enjoyingtaking pressures for social progress. Only withunceasing development and innovation can ourposterity take over this platform, continuing tomake contributions to the progress of society.

CHAMBROAD CULTURE Integrity Dedication Improvement AltruismOutlook on LifePoverty Teaches Me to Cherish Happiness;Growth Teaches Me to be Grateful;Responsibility Teaches Me to DevelopPoverty Teaches Me to Cherish Happiness “Every grain of rice is hard to be gained and every piece of cloth is difficult to be woven.” Since people areborn and depart the world naked, poverty can be seen both the starting point and the ending point of people’slife. Poverty makes us aware that we are in the poorest condition and teaches us not to be content with the currentsituations. Believing that we are the poorest both physically and spiritually and being aware of our poverty, we cancherish what we possess now on one hand and strive for what we have not on the other. To cherish blessings is to cherish the present happiness. It is a mentality that happiness lies in contentment. “Nowaste of food and clothing is not out of valuing belongings but for cherishing blessings.” We should be thrifty bothin food and clothing, never wasting even a grain of rice at will. We should value materials, cherish blessings, cultivatehappiness, and never abandon blessings. People realize the value of water after the drying up of wells, the value ofhealth after serious illness, the value of peace after the ravages of wars, and the value of jobs after dismissal. Theprocess from poverty to cherishing blessings teaches us to set right our mentality and know ourselves. It is true for both an individual and an enterprise. Chambroad’s development from a small enterprise to a largeone tells us that such accomplishments are not easily won. Therefore, we need to maintain, cherish and expand whathave been achieved. While enjoying the benefits that Chambroad brings, people in Chambroad should cherish whatthey are now possessing, further develop it, make more contributions to it, and expand its business for possessingmore in the future. Only in this way can Chambroad provide better living, working and growing environments.

Chapter Two LAW OF EARTH 51 Business Carries Morals and Morals Produce HarmonyGrowth Teaches Me to Be Grateful Gratitude is great wisdom of life. “Crows feed their the support of society. It is our country and nation thatparents to repay them and lambs kneel down while contribute to today’s glory of Chambroad; it is thesucking mothers’ milk to show gratitude.” We should family of Chambroad that provides us a permanentbe grateful to our parents because they devote all their home; it is Chambroad’s culture that gives us morallife to children; we should be grateful to our leaders principles for self-cultivation. Now, Chambroad and itsbecause they guide us into useful talents; we should be children have grown up and it is time for Chambroadgrateful to our colleagues because they inspire us to to repay society, and for Chambroad’s children to repaypersist with their care and encouragements when we are their company. Growing up teaches us to be grateful.in frustrations. Never forgetting where our happiness comes from and repaying others’ kindness are the right thing for a man One’s growth is impossible without parents’ support, to do and the right thing for people in Chambroad tocolleagues’ assistance and leaders’ guidance. Likewise, do.the development of an enterprise cannot do withoutthe help of national policy, the trust of customers andResponsibility Teaches Me to Develop Development means marching forward courageously, Running enterprises is doing conscience. Profits areliberating oneself from any imprisonment, and not the ultimate ends but only means to maximize therising above oneself. Responsibilities are what we value of social resources. It is the social responsibilityshould assume whatever roles we play and we should that pushes the constant progress of Chambroad. It isdutifully fulfill our obligations of building our family the corporate responsibility that pushes the constantand dedicating to our family while enjoying the innovation of Chambroad. It is responsibilities thatwarmth of the family. We should dutifully fulfill push us to develop unceasingly. As a conscientiousour obligations of developing and dedicating to our enterprise, it should undertakes even greater social orcompany while enjoying the benefits of the company. even national responsibilities to bring benefits to localWe should dutifully fulfill the obligations of developing people and push forward the development of localand dedicating to society while enjoying the social economy by means of developing itself. With strivingachievements. A family will be harmonious only when for a prosperous and powerful nation as its own duty,an individual shoulders his family responsibility; a Chambroad is determined to become an enterprisebusiness will be prosperous only when a professional which is most responsible and beneficial for society.assumes his post responsibility; and an enterprisewill develop further only when it takes its socialresponsibilities.

CHAMBROAD CULTURE Integrity Dedication Improvement Altruism“Three Days and Future”of Our enterprise