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A new year begins, spring fills the universe. On this occasion of updates, on behalf of the board of directors and management of Shanggong Shenbei (Group) Co., Ltd., I would like to express my sincere gratitude and New Year's wishes to all Chinese and foreign employees, global customers, partners, and friends who have always cared about and supported Shanggong Shenbei's development!

In 2023, the overall recovery of the world economy is full of uncertainty and geopolitical turmoil, exacerbating the vulnerability of emerging markets and developing economies. China's sewing machinery industry has experienced a dual challenge of sluggish domestic demand and declining external demand. Shanggong Shenbei maintains composure, actively responds, adheres to the belief of sustainable development, based on technological leadership advantages, deeply cultivates material connection technology, explores market demand potential, and continuously innovates to "connect" global customers!

Over the past year, Shanggong Shenbei has adhered to a market-oriented approach, customer-centric, and focused on segmented fields. We will continuously integrate Industry 4.0 technology into product performance, create a specialized brand IP for "smart sewing", continuously strengthen product and service innovation and supply, successfully participate in CISMA and TexProcess exhibitions, launch green intelligent digital workshop overall solutions, Dukep DELTA digital series products, as well as domestic achievements such as GAMA3767, Baifu 1545, Mauser2645, etc., to fully and multi-level meet market demand.

Over the past year, Shanggong Shenbei has adhered to innovation leadership and driven the steady and high-quality development of the enterprise. We anchor the transformation and development goal of "service-oriented manufacturing", build a first mover advantage in automation, digitization, and low-carbon product technology innovation, invest in and use SGG Germany Innovation Center, focus on exploring process integration, hydrogen technology, artificial intelligence and other technologies, expand and strengthen the product matrix, rely on DA global leading sewing equipment, KSL three-dimensional automated material processing, SNT intelligent ultrasonic welding, QONDAC intelligent networking service solution, take technological innovation as the cornerstone and core driving force of enterprise development, inject new vitality into industry transformation and upgrading and high-quality development, and forge a new highland of intelligent manufacturing industry technology.

Over the past year, Shanggong Shenbei has adhered to a global layout, achieving industrial integration and diversified development. Following the merger and acquisition development strategy of "horizontal expansion of the industrial chain and vertical extension of upstream and downstream", we have invested in the acquisition of Sonotonic GmbH, a hidden champion enterprise in German ultrasonic welding non-standard automation equipment, to broaden the material connection technology industry track; Invest in the establishment of Shanggong Transportation Machinery Equipment (Zhangjiagang) Co., Ltd. to enhance the precision component processing capability and the scale production level of intelligent equipment; Invest in and acquire Shanghai Shanggong Feier Automotive Parts Co., Ltd., enter the field of automotive interior parts and structural components, cultivate and strengthen new business growth points; Establish a sales subsidiary in Mexico, increase the construction of marketing network, take multiple measures and blossom at multiple points, activate new engines, release new momentum, and create a second profit curve for enterprise development.

Over the past year, Shanggong Shenbei has adhered to green development and implemented low-carbon, environmental protection, and energy-saving measures throughout the entire process of product design and intelligent manufacturing. We have released the Corporate Social Responsibility (ESG) Report, shouldering the mission of sustainable operation and caring for society. While continuously creating economic benefits and strengthening our own resilience, we actively cooperate and support the implementation of the national "dual carbon" goals. The "E-CON Sustainable Sewing Solution" has been selected as one of the "Top 100 ESG Cases of Chinese Listed Companies" at the 2023 China Sustainable Investment (ESG) and Free Trade Port Construction Forum, as well as the "Enterprise Green and Low Carbon Innovation Development Report" at the 2023 Service Trade Fair. It leads the forefront of green intelligent manufacturing and technological innovation, creates differentiated value advantages, and enhances future development limits.

The spring scenery is flourishing, and the national stride is soaring. 2024 is a crucial year for implementing the 14th Five Year Plan. We have designated the new year as the "Total Quality Management Year" for Shanggong Shenbei Group, and the entire group will focus on consolidating product quality and improving service quality to carry out various business operations. We will continue to fully implement the business strategy of "dual wheel drive of innovation and service to promote development", adhere to the principle of quality first and innovation as the key, benchmark products for excellence, innovation leadership, and standardized governance, and make up for shortcomings, forge long boards, and strengthen the bottom board. In terms of total quality management, we continuously improve the system construction, strengthen on-site basic management, continuously improve manufacturing processes, optimize and enhance production efficiency, effectively improve product quality and service level, and maximize the satisfaction of market demand and customer expectations. In terms of technological innovation, we continuously increase investment in innovative research and development capabilities, continuously promote the forefront of industry technology, expand new business areas, and strive to win higher market reputation and competitive advantages. In terms of corporate governance, we continuously establish and improve risk prevention mechanisms and limited partnership incentive mechanisms, build an internal environment that adapts to high-quality development, strengthen cost control and management, improve the profitability and standardized operation level of enterprises, maintain long-term stability, health, and sustainable development, and create more value for shareholders, employees, and society.

Connecting technology, creating a smart future. In the new year, facing more severe market competition tests, the people of Shanggong Shenbei must withstand external pressure, overcome internal difficulties, gather strength with confidence, forge dreams with hard work, continuously improve their ability to cross the enterprise life cycle, and strive to promote the transformation and upgrading development of listed companies. We will continue to steadfastly pursue the development path of "new globalization" amidst the tide of "anti globalization", fully leverage the synergistic advantages of German technology and local production, deepen cross-border mergers and acquisitions strategies, vigorously introduce advanced talents and technologies, create a symbiotic system of social and economic value for enterprises, open up the space for upgrading the industrial chain, achieve strong brand breakthroughs, accelerate the application and promotion of material connection technology, lead "Shanggong Intelligent Manufacturing" to new heights, and make every effort to move towards a broader global market.

Wishing everyone a happy New Year!