Guanlong energy conservation: the listing recommendation letter of Changjiang sponsor on the company’s initial public offering and listing on the gem

Changjiang Securities Company Limited(000783) underwriting and recommendation Co., Ltd

About Shanghai Guanlong valve energy saving equipment Co., Ltd

Initial public offering and listing on GEM

of

Listing recommendation

Sponsor (lead underwriter)

28th floor, No. 1198, Century Avenue, China (Shanghai) pilot Free Trade Zone

February, 2002

Sponsor statement

Changjiang Securities Company Limited(000783) underwriting and recommendation Co., Ltd. (hereinafter referred to as “the recommendation institution” or “Changjiang recommendation”) and the recommendation representative specifically responsible for the securities issuance and listing project have been in accordance with the company law of the people’s Republic of China (hereinafter referred to as “the company law”) and the Securities Law of the people’s Republic of China (hereinafter referred to as “the securities law”) The measures for the administration of securities issuance and listing recommendation business (hereinafter referred to as the “measures for the administration of recommendation”), the measures for the administration of the registration of initial public offerings on the gem (for Trial Implementation) (hereinafter referred to as the “measures for the administration of the registration on the gem”), the rules for the listing of shares on the gem of Shenzhen Stock Exchange (hereinafter referred to as the “rules for the listing on the gem”) and other relevant laws In accordance with the administrative regulations and the provisions of the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) and Shenzhen Stock Exchange, we are honest, trustworthy, diligent and responsible, issue this listing recommendation letter in strict accordance with the business rules and industry self-discipline norms formulated according to law, and ensure the authenticity, accuracy and integrity of the documents issued.

Unless otherwise specified, the abbreviations and terms used in this listing recommendation letter are consistent with those in the prospectus. 1、 Basic information of the issuer (I) basic information of the issuer

Company name: Shanghai Guanlong valve energy saving equipment Co., Ltd

English Name: Shanghai Karon eco Valve Manufacturing Co., Ltd

The registered capital is 125674290 yuan

Legal representative: Li Zhenghong

Date of establishment: July 29, 1991

Date of establishment of the joint stock company April 26, 2020

Registered address: No. 815, Deyuan Road, Nanxiang Town, Jiading District, Shanghai

Postal Code: 201804

Tel: 02131229378

Fax 02131229356

website http://www.karon-valve.com.

E-mail investor@karon -valve. com.

General items: production, processing proportion, low-power pneumatic control valve and other control valves of servo hydraulic technology, electronic water meter, intelligent meter reading monitoring system of tap water meter, flowmeter, fire-fighting equipment and other related products, as well as the processing of various mechanical castings and the manufacturing of mechanical and electrical equipment, Sell the company’s self-produced products, as well as the wholesale, import and export business of similar commodities of the above products, commission agency (except auction) and relevant supporting business (not involving state-owned trade management commodities; if involving quota and license management commodities, apply in accordance with the relevant provisions of the state). (except for the items that must be approved according to law, the company shall independently carry out business activities according to law with its business license)

(II) main business of the issuer

The company is mainly engaged in the R & D, design, production and sales of water-saving valves. Its main products include butterfly valves, gate valves, control valves, check valves and other valve products and other supporting products, which are mainly used in downstream fields such as urban water supply and drainage, water conservancy and industry.

Valve is a key component of pipeline fluid transmission system. After years of continuous R & D investment, the company has established a high brand awareness in the industry by virtue of leading technical R & D strength, excellent production process, strict and stable quality control and perfect product system, and formed valve soft sealing technology, valve hard sealing technology, valve and pipeline protection technology It is a leading supplier of water-saving valves in China. Its products have been successfully used in the Three Gorges project, the South-to-North Water Transfer supporting project, the water cube, Beijing Capital International Airport, Oriental Pearl Group Co.Ltd(600637) , Beijing Metro Line 6, Shanghai World Expo Park, Shanghai Disney, CCTV Headquarters building Shenzhen Futian sewage treatment plant, Hong Kong Zhuhai Macao Bridge and Beijing Daxing International Airport.

As of the issuance date of this letter of recommendation, the company has 23 invention patents and 81 utility model patents

Five national standards, 17 industrial standards and four group standards have been prepared, and have passed ISO9001 quality management system certification, ISO14001 environmental management system certification, iso45001 occupational health and safety management system certification and CNAs laboratory accreditation. The application technology of hydraulic control valve of the company was recognized as the guide project for the promotion and transformation of scientific and technological achievements of the Ministry of construction. Products such as elastic seal butterfly valve and soft seal gate valve for water supply and drainage were included in the national recommended list of water-saving products of the Ministry of water resources in 2017, Ultra large diameter silent check valve (Technology) and multi orifice sleeve valve conical hole jet collision energy dissipation technology (Technology) are listed in the guidance catalogue for the key promotion of advanced and practical water conservancy technologies in 2021. The intelligent water-saving control technology of time-sharing pressure regulation of piston valve is listed in the catalogue for the promotion of national mature and applicable water-saving technologies (2021) by the Ministry of water resources. A variety of products are recognized as water-saving products, It has high R & D strength and technological innovation level.

During the reporting period, there was no significant change in the company’s main business. (III) core technology of the issuer

After years of development, the company has accumulated rich industry experience and related technologies in the R & D, design and manufacturing of valves, and the core technologies are self-developed. The company’s core technology system includes valve soft sealing technology, valve hard sealing technology, valve and pipeline protection technology, valve efficient control technology and valve performance simulation test technology, which have been successfully applied to the company’s main products.

With its competitive advantages in technology and R & D, quality control, technical service and brand, the company has a high market position in the industry. In the future, the company will strive to be better and stronger, continue to maintain the leading position in China’s water-saving valve market, increase investment in R & D and innovation, improve the company’s production management efficiency, explore other application fields of valves, and strengthen the development of Shanghai Dzh Limited(601519) water market, so as to build the company into a leading and world-class valve brand in China.

(IV) R & D level of the issuer

The issuer has 23 invention patents and 81 utility model patents, participated in the preparation of 5 national standards, 17 industrial standards and 4 group standards, and passed ISO9001 quality management system certification, ISO14001 environmental management system certification, iso45001 occupational health and safety management system certification and CNAs laboratory accreditation. The application technology of hydraulic control valve of the company was recognized as the guide project for the promotion and transformation of scientific and technological achievements of the Ministry of construction. Products such as elastic seal butterfly valve and soft seal gate valve for water supply and drainage were included in the national recommended list of water-saving products of the Ministry of water resources in 2017, Ultra large diameter silent check valve (Technology) and multi orifice sleeve valve conical hole jet collision energy dissipation technology (Technology) were listed in the guidance catalogue for the key promotion of advanced and practical water conservancy technologies in 2021, and the intelligent water-saving control technology of time-sharing pressure regulation of piston valve was listed in the catalogue for the promotion of national mature and applicable water-saving technologies (2021) by the Ministry of water resources, A variety of products are recognized as water-saving products, with high R & D strength and technological innovation level. (1) Important awards and honors won by the issuer

No. honors / awards awarded by department date

1 Enterprise Technology Center Shanghai Jiading District Economic Committee 2007

2 innovative enterprises, Shanghai Science and Technology Commission, etc., 2012

3 Shanghai Patent Work demonstration enterprise Shanghai Intellectual Property Office 2013

National Award winning project supplier – Shanghai World Expo

4 “2014 class award of Lu China State Construction Engineering Corporation Limited(601668) metal structure association” for Expo Axis and underground complex project

5 20152016 national building water supply and drainage bank China State Construction Engineering Corporation Limited(601668) metal structure association 2017 famous brand water equipment branch of water supply and drainage industry

6 20172018 national water supply and drainage industry name China State Construction Engineering Corporation Limited(601668) metal structure association water supply and drainage 2019 brand water equipment branch

7 20152016 national construction water supply and drainage bank China State Construction Engineering Corporation Limited(601668) metal structure association 2017 water supply and drainage industry outstanding contribution enterprise water equipment branch

8 20172018 national construction water supply and drainage bank China State Construction Engineering Corporation Limited(601668) metal structure association water supply and drainage industry outstanding contribution enterprise water equipment branch in 2019

9. Industry reform of China State Construction Engineering Corporation Limited(601668) Metal Structure Association China State Construction Engineering Corporation Limited(601668) metal structure association outstanding contribution enterprises for the 40th anniversary of reform and opening up in 2019

10 outstanding contribution award: Shanghai General Machinery Industry Association, fluid engineering branch of Shanghai 2019 Mechanical Engineering Society

Advantage of China General Machinery Industry Association in 2019

12 the 3rd Jiading District Quality Gold Award Shanghai Jiading District People’s Government 2020

13. 2018 Jiading District advanced manufacturing industry comprehensive implementation Gold Award of Shanghai Jiading District People’s Government in 2019

14. Comprehensive implementation of advanced manufacturing industry in Jiading District in 2019 and 2020 strength award of Shanghai Jiading District People’s Government

15. Gold medal of comprehensive strength award Shanghai Jiading District People’s Government in 2021

(2) Participation in the formulation of national standards, industrial standards and group standards

As of the signing date of this recommendation, the company has participated in the formulation of 26 national standards, industrial standards and group standards. The details are as follows:

Sequence category name No. implementation date drafting document company’s personnel participating in number position sorting

1 national standard GB / t322902015 elastic sealing light gate valve for water supply system July 5, 2016

2 national standard water supply pipeline composite high-speed exhaust and intake valve GB / t365232018 February 2019 4 Li Zheng Hong

3. National standard automatic sprinkler system gb5135 6-201809 3 li Zhenghong Part 6: general valves

4. National standard automatic sprinkler system gb513517201111.3 Li Zhenghong Part 17: pressure reducing valve

5 national standard decompression type backflow preventer GB / t251782020 December 2020 3 li Zhenghong, Liu Fengnian

6 industry standard soft seal CJ / t2162013 2 li Zhenghong gate valve for water supply and drainage

7 industry standard hydraulic control valve CJ / t2192017 May 3, 2018 Li Zhenghong, Liu Fengnian

Sequence category name No. implementation date drafting sheet company participation No

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