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MACHINERY & ELECTRIC CO. LTD. “The Twelfth Five-Year Plan” on the Strategic Development of Talent

I. Strategic Guiding Thoughts
According to the requirement of “to build China into a powerful country with talent till the year 2020” from the Central Committee of CPC, “National Program for Talent Development (2010-2020)”as the guideline, we are guided by company development strategies in “the Twelfth Five-Year Plan”, with the goal of MACHINERY & ELECTRIC Group “321” strategies and 50 billion shares. We should work hard on the talent development and make full use of all types of personnel to guarantee powerful human resources and intellectual support for our strong and large enterprise.

II. Development Thought of Strategies
We are always guided by “respect persons working with commitment, have the talent well placed, cultivate the one with ambition, encourage the one with spirit of innovation”. As to “the Twelfth Five-Year Plan”, there are “four nine four” strategies for company talent planning: launch “four presumptions”, carry out “nine measures”, accomplish “four kinds of construction”. By the end of “the Twelfth Five-Year Plan”, we’ll have a talent team full of excellent personnel with outstanding performance and in good spirits, being skilled in the company business. By then, we can successfully transform human resources to talent resources and capital.

III. Talent Development Concepts
1. We should have the idea of “Human resources always stay first” towards talent resources. We need completely realize that human resources play an important role in various resources we’ve had. So it should be in rational utilization and optimally allocated to prove its function as first place resources.
2. We should build an attitude of “Every one can be a talent” towards talent standards and carry out “three valuations and three not-onlies” to value the age, degree and experience. But they are not the only three evaluations for the employees; Moreover, we should break through the traditional talent standards, and make all staff talents.
3. We should have an attitude of “People Foremost” towards talent development, establishing three “priorities”. That is to say, we shall give priority to talent capital accumulation, adjustment of talent structure and investment in talent development. In addition to scientifically develop and make use of talent resources, we should encourage our talent to have a career, support their career and help them have good career.