On February 5, 2009, JuneYao Group Annual Work Meeting cum Summary Meeting for Studying and Practicing Scientific Outlook on Development Activity was successfully held at the C32 Club House in Shanghai JuneYao International Plaza. Group executives including Chairman of the Group Wang Junjin, Vice Chairman of the Group Wang Junhao, Party Committee Secretary and Vice President Chen Li, Vice President Xu Biao, and YouYongshi, as well as more than 100 persons including deputy general managers above personnel of all functional departments of the Group, and branch companies in all subordinate sectors and some key business personnel attended the meeting.

The Meeting was divided into five sections , including annual work report of all business sectors, summary of studying and practicing scientific outlook on development activity by the Group Party Committee, announcement of top ten events of JuneYao Group in 2009, commendation of 2009 JuneYao Group Century-old Shop Outstanding Builder, and the Chairman’s report. As a result of sufficient preliminary preparations, all meeting sections were carries out in an orderly and splendid manner, and each section was compact and rich in content. Wang Junhao acted as the host of the Annual Meeting. His witty comments added appeal to the Meeting.

In the annual work report of all business sectors, President of JuneYao Airlines Dong Lijia reported the achievements of the airline business in the past year. JuneYao Airlines in 2009 adhered to “low cost operation”, and clarified control responsibility. Its operation ability and profit earning level experienced significant enhancement. In 2009 it fulfilled sales amount of 1.67 billion yuan, realized profit of over 100 million yuan, which guaranteed profit earning for three consecutive years for the Company, and it maintained “zero” safety accident rate per 10 thousand flight hours. While praising the satisfactory results of fast integration of team members and the rapid expansion of fleet size since the founding of JuneYao Airlines three years ago, Wang Junhao also said that he hoped JuneYao Airlines can achieve better results by revolving around the target of “new aircraft, heart-to-heart service” in 2010.

Wuxi Commercial Mansion in its report summarized that, the Mansion Group in 2009 experienced the christening of the financial crisis and fierce market competition. Through adjusting operation strategy and structure, meanwhile continually promoting domestic demand, the whole year total business turnover recorded about 5.6 billion yuan. Wang Junhao highly valued the efforts of the Mansion Group in “centering on enterprise cultural construction, improving brand popularity through management, adhering to refined management, adhering to the policy to make the enterprise ‘stronger’, and achieving 30% turnover growth and more than 100% profit growth for the whole year”.

Yang Yun, the Managing Deputy General Manager of JuneYao Dairy and JuneYao Creativity, reported the path of JuneYao Dairy in 2009 in determining production based on sales, and integrating product with culture, it implemented the strategy of optimizing brand marketing, and achieved the healthy development approach of integrating production, sales, and research. Furthermore, after one whole year of transition and adjustment, JuneYao Creativity organized new teams, and actively dedicated itself to the development and marketing of World Expo products. JuneYao’s brand influence is being further expanded.“ It is exactly due to the fact that JuneYao Dairy followed the policies of long-term growth, becoming stronger and bigger, although the entire industry experienced the impact of Melamine incident, JuneYao Dairy still successfully launched products with culturalcontents.” Wang Junhao indicated that, the Group was confident of its ability to develop a better JuneYao Dairy. Meanwhile , he argued that the year of 2010 is the harvest year of World Expo projects, “We must fight for the World Expo, and win results in the World Expo”, we should grasp opportunities when meeting challenges, and achieve success.

Zhang Caiyuan, General Manager of Wuhan JuneYao Real Estate Company, mentioned in his report that, Wuhan Real Estate accomplished a series of excellent results, including the completion and delivery of Longjiang Tingyuan in 2009.

You Yongshi, General Manager of the Real Estate Division, said thatthe World Expo, the construction of financial center and shipping center, the integration of Pudong and Nanhui and other events would continually create opportunities for JuneYao Real Estate.Kangqiao land plot again appreciated in value, its development would become the fuel provider for the future of the Group.

Gao Binghua, General Manager of the Group’s Asset Management Division, pointed out in his report that, the Company implemented centralized management and flat management in its asset management, which sharply reduced cost, and accomplished value preservation and value adding of the existing assets of the Group. Shanghai JuneYao International Plaza overcame the impact of declining customers in the financial crisis. Its whole year sales income topped 50 million yuan.

Lin Ji, General Manager of www.16885.com, indicated that the travel website maintained a steady growth in its earnings for the whole year; its newly developed business areas expanded the total marketing scale of the Group . Meanwhile, the Company also made beneficiary explorations in digitalization, professional development, and network development.

Ye Fanzhi, General Manager of Aviation Logistics Division, summarized the overall performance of the logistics division in 2009. While overcoming various adverse impacts, JuneYao logistics recorded profit earning for the whole year. Meanwhile, during the process of serving the main businesses, and serving the World Expo, it also found out many new opportunities and ways for development.

Zhang Yueying, Schoolmaster of World Foreign Language Primary School, and Xu Jian, Principal of World Foreign Language Middle School respectively reported the achievements of the two schools in the past year, as well as a great number of honorable prizes they were awarded at district level and municipal level contests. The World Foreign Language School now has acquired PYP, MYP and DP accreditations for primary school, junior high school and senior high school from the World IB organization, and developed a complete internationalized education industrial chain. “Teacher is a happy occupation. When feeling depressed, one will feel brightened in front of the lively and innocent children.” Wang Junhao recommended everyone to visit the World Foreign Language School, discuss the key of school management with the faculty team, and try to find out effective methods for enterprise management.

After listening to the work report of all business sectors, Wang Junhao pointed out, “In 2009, the Group has achieved satisfactory results, which are acquired under the pioneering leadership of Chairman Wang Junjin, under the guidance of our corporate culture, and under the joint efforts of the work teams. We have shared the work results of the past year through the report of each business sector, next we will together share the pleasure brought by the achievements through annual commendation.”

In the “Summary on the Studying and Practicing Scientific Outlook on Development” held in the afternoon, Chen Li reported on the detailed conditions of the head office and all the business operation units in the Shanghai region in implementing the “study and practice”. The study and practice activity collected a total of more than 190 pieces of advice and suggestions, and sorted out over 20 problems at the group level, themed with building up internationalized “Century-old Shop”, and with focus placed on main businesses, these advice and suggestions revolved around transformation toward modern service industry, and departed from steady development of enterprise, aiming at bringing benefits to the staff, helping the enterprise to detect and eliminate problems in the development process, and progressively clarifying the working thoughts in the next step.

The announcement of Top Ten Events of JuneYao Group in 2009 as well as the award presenting ceremony of the first “Outstanding Builder of Century-old Shop” brought the meeting atmosphere to a climax. After Wang Junhao announced “Top Ten Events in 2009”, the “Outstanding Builder of Century-ld Shop” was ceremoniously unveiled. This time, apart from 15 “Outstanding Builders of Century-ld Shop” who were conferred commendation, there were also 8 staff members who were awarded “Nomination Prize for Outstanding Builder of Century-ld Shop”, 10 diligent workers were selected as “Advanced Staff for 2009”. Group executives, including Wang Junjin, Wang Junhao, Chen Li, Xu Biao, and You Yongshi conferred prizes to prize winning staff members, to commend those JuneYao members who have worked diligently on their respective posts, and thank their remarkable achievements made in the past year.

When receiving the prize, “Outstanding Builder” Xu Biao frankly expressed excitement and exhilaration, he said: “I feel surprised and happy, for this is the first time I win a prize in the 16 years since I joined JuneYao. This is the prize of the highest value since the founding of the Group. The heavy medal marks a reward, but it also places heavier obligations on the work in the future. I will live up to the expectations of the Group.” Meanwhile, he called for every JuneYao staff to contribute efforts to the construction of the Century-old Shop by the JuneYao Group, in order to have a better tomorrow for JuneYao. He also said with a smile that he wanted to be awarded more prizes in the future.

Finally, Wang Junjin delivered an address for the annual meeting. He analyzed the overall operation conditions of the Group in 2009 and pointed out that: In 2009 the Company experienced difficulties and challenges rarely seen since the founding of the Group, whereas the fighting spirit of “weathering the winter” enabled the enterprise to smoothly pull through the hard times, and it also achieved remarkable results——income from business operations was 9.6 billion yuan, profit was more than 300 million, tax payment was nearly 500 million yuan.

Meanwhile, targeting at some “ill tendencies of large companies”, namely unhealthy signs which have cropped up in the Company, Wang Junjin stressed that “we must remove these defects, and must enforce reform. Reform must start from oneself, start from the Group Company.” The Group should start from the head office. In 2009 the Company implemented a series of reform measures, and gradually made adjustments from the management platform to the operation management platform, consolidated some backbone personnel into business units, the management mode of each business unit changed accordingly. Matters are handled in a more direct and efficient manner, and efficiencyhas been improved. The Group’s organizational structure after reform not only becomes simpler, but also reduces cost and improves the efficiency. “When there are less empty things, the work will become more solid, the anticipation of increasing income and decreasing expenditure, reducing consumption and improving efficiency will come true, then efforts to actively deal with the crisis will produce results.” Wang Junjin also pointed out that, the Group’s functional department shoulders the double functions of management and service, every executive must strengthen management ability, every staff member must develop strong service awareness. “This must be popularized in a top to bottom manner!

Wang Junjin clearly pointed out that, in 2010 the Group must focus on implementing reform from four aspects: Adhere to transformation toward modern service industry without wavering, expand the main businesses of aviation and marketing service, further promote enterprise transformation, gradually improve the new mechanism generated through business transformation, strengthen internal integration; further clarify division of responsibilities, build up governance structure, improve working efficiency; properly grasp team construction, improve execution ability, enhance the core competitiveness of the enterprise; vigorously advocate master spirit, improve the cohesion of the enterprise.

In the report, Wang Junjin also discussed the development orientation of each business unit in 2010: “Firstly, JuneYao Airlines must adhere to the policy of becoming bigger, stronger, and better, vigorously strengthen the construction of five key systems of ‘safety operation system, service quality system, cost control system, flight route and business network system, information and logistics safeguarding system’, in order to make preparations for ‘flying higher and better’.Secondly, Wuxi Commercial Mansion must further tap its existing potentials, explore emerging markets, develop new business modes, strengthen standardized management, improve profit earning level, maintain its leading status in Wuxi commercial retail sector, and strive to join the ranks of top ten fine department stores nationwide.

Thirdly, real estate development will take advantage of the Kangqiao Project, concentrate superior resources to directly manage the real estate business sector, meanwhile incorporate the strength of Wuhan JuneYao, and consolidate the strength of the real estate business sector.

Fourthly, the Asset Management Company must strengthen the management of idle housing, strive to lower cost, improve quality. Yichang JuneYao Jinjiang International Hotel must further improve efficiency, optimize management procedures, improve alignment effects, and improve corporate competitiveness.

Fifthly, the Company should strengthen the construction of www.16885.com, by relying on the development of JuneYao Airlines.. Efforts must be made to enable the system to become more stable and effective. Aviation and logistics must position themselves; re-organize new company with real business, in order to become a genuine modern logistics company.

Sixthly, JuneYao Creativity must firmly grasp the opportunity of the World Expo, and strive to become the company in the Group with the highest per capita profit earning in 2010, meanwhile develop forward-looking vision, properly plan 2010 for the development in the post -World Expo age, develop the already located FIFA, NBA ‘duplicate gene’ into good seedlings, become pioneer of internationalization, and become one of the pillars of the Century-old Shop.

Seventhly, JuneYao Dairy must grasp the opportunity for strategic cooperation with the famous cartoon ‘Red Cat Blue Rabbit’, achieve ‘side by side flying’ with famous cartoon image ‘Ultraman’, so as to endow JuneYao products with both function and culture, and lay down solid foundation for the transformation of JuneYao healthy food.

Eighthly, the Company should fully utilize the completely internationalized education industrial chain which has already been developed by World Foreign Language School, explore the establishment of ‘World Foreign Language Middle and Primary School Quality Education Innovation Research Center’, refine education methods and modes, provide support and assistance to education undertakings in backward regions, so as to make contributions to China’s compulsory education reform and exploration. World Foreign Language School must develop into a genuine ‘Century -old Famous School’, and become the pioneer of China’s primary and junior high school education reform.”

The year of 2010 is the year of the World Expo Shanghai, and the concluding year of the “Eleventh Five Year” Plan. It is also the year after the Group has made preliminary achievements in coping with the challenges of the financial crisis. In the face of the 2010, a year of continued reform, Wang Junjin proposed four thinking to all the JuneYao staff members, namely strategic thinking, systematic thinking, innovative thinking, dialectical thinking. Meanwhile, he hopes all the staff members could improve four abilities, namely management ability, innovation ability, execution ability, and operation ability. He also pointed out that, the implementation of various actual work in 2010 requires efforts through “target quantification, quantification of working plan, quantification of meeting system, individual quantification of project plan” to improve actual effects.

Wang Junjin stressed that in 2010, JuneYao Group must closely revolve around scientific outlook on development, grasp the opportunity of the opening of the Shanghai World Expo, and adhere to walking the path of internationalized and modernized service industry in order to construct harmonious JuneYao, create more benefits for employees, and offer more wealth to the society, and bring richer meaning to the connotation of “Century-old Shop”. Every JuneYao staff member must clearly remember the corporate mission and outlook on value, and contribute their share to the construction of the Century-old Shop.