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Dear colleagues,

Good Afternoon! With a heavy and full harvest, we are here again at the annual award ceremony to witness and celebrate the glorious moment for nearly 100 “value contributors”. On behalf of the company, please allow me to extend warm congratulations to outstanding staff, ten-year staff and innovation teams, who will be in the spotlight today! I look forward to your success in the New Year and your inspiration for more people to who will grow to be the stars of the stage!

We just bid farewell to 2021, a year of extraordinary significance for both China and us. On the occasion of the centennial birthday of the Communist Party of China and the realization of the first centennial goal of the Chinese nation, HGTECH, a giant vessel that has sailed beneath the waves of the market economy for 22 years, also moves into uncharted territory. We have successfully separated from the university and is powered by a stronger initiative of development. We carry forward our cause and forge ahead into the future with new vision and mission. Embracing ideas of “game changer, long-termism and value co-creation”, we established a strategic axis of “built on value, innovation first, efficient operation and capital coordination”. We redefined three core businesses, which reflected our determination and commitment to upgrade and growth. We kept pushing back the boundaries of all core businesses under the backdrop of industrial upgrading, and blazed new trails with wisdom and courage – we expanded connection business from optical connection to wireless connection, successfully completed the trial production of 800G silicon photonic chip and launched new products realizing indoor coverage of 5G network. With regard to sensing business, we utilized high-precision temperature sensor and pressure sensor to enable application scenarios for new energy and industrial digitization. In addition, we’ve been working relentlessly for a decade for the final debut of PTC heater in the new energy sector. From holographic anti-counterfeiting to in mold decoration, our "channel" is switched and our thinking is transformed. For intelligent manufacturing business, we constantly enriched application scenarios including laser cutting, welding, marking and cleaning. We utilized laser intelligent equipment, automatic production line and intelligent factory to facilitate industrial transformation and upgrading, and obtained a differentiated competitive advantage. HG Investment served the main business and strengthened and supplemented the industrial chain through top-level design which played a leading role; and HG Medical began to independently develop products and carry out business transformation. Three enterprises including Huagong Gaoli Electron Co., Ltd. won the titles of "Manufacturing Champion" and "Technologically Advanced Enterprises". Under this situation, we are developing new capabilities—innovation capability based on IPD R&D management system, marketing capability based on key customer strategy and delivery guarantee capability based on lean management have enabled the re-establishment of new processes and mechanisms and allow our company to step into a new level.

Thousands of competitors develop vigorously. Writing history is more meaningful than witnessing history. In order to provide customers with high-performance PTC heaters, our engineers repeatedly conducted performance tests in the north at minus 40 degrees; as long as customers need, even in a foreign country where the epidemic is rampant, our delivery and after-sales teams will move forward forever; during two outbreaks and more than 270 days of presence at customer site, the team in charge of Gansu Borui Intelligent Factory Project overcame many difficulties, still worked and made advances during isolation, and filled the gaps of the technical field; 5G construction has entered the fast lane, and our digital station team has completed the process from the small-batch trial production to large-scale mass production in a very short time. They cut off all means of retreat and kept promises to support the rapid development of our company. There is no iron warrior, but human body supported by faith, dream and responsibility!

Time will not only leave the glory to history, but also bring infinite hope to the future. In the new year, HGTECH will adhere to the general principle of high-quality development, regard the value as the key link, gather resources and pool the strength of the company to develop new energy and intelligent manufacturing; it will put innovation first, deeply develop market segments, plan and produce a number of "industry-leading" and "technologically advanced" products; it will adhere to efficient operation, continuously promote the development of three capabilities, and find new space for the value growth of talents under the guidance of strategy; it will adhere to capital synergy, continue to expand ecological chain through enabling investment and serve the high-quality development of main business.

"The gold rush to thousands of times of filtering, although hard, but only the lovely sediment, will reveal the shiny gold". In the new year, let's move forward step by step with "the enterprising spirit of making every effort to achieve our goals, the climbing spirit of defying innumerable trials and hardships and the craftsman spirit of severe training and hammering". Year by year we can do everything well, lay a good foundation and meet better yourself, better HGTECH and better future!

I wish all staff, including those who stay overseas, and their family a happy new year and every success!