Date 2023-01-18
Chairman Lv Xiangyang of Rongjie Group Delivers New Year's Greetings for the Year 2023

Dear colleagues of Rongjie Group,

Greetings to all of you! As the Spring Festival of 2023 approaches, I would like to extend my warmest wishes to all employees and their families at Rongjie Group.

Looking back on the past year, it has been an extraordinary journey. The global pandemic has impacted everyone, leaving no one untouched. The international situation is complex and severe, with a weakening global economy and numerous industries in our country facing immense pressure. Despite the persistent and recurring COVID-19 pandemic that has profoundly changed people's lives, it cannot hinder the determined progress of Rongjie people. Over the past year, we have closely followed the "16-character policy" formulated at the beginning of the year, focusing on strengths, implementing mechanisms, creating improvements, and charting the future. With wisdom and hard work, we have been witnessing the development of Rongjie.

There has been significant growth in operating performance. Among our listed companies, BYD recorded a net profit of 9.311 billion yuan in the first three quarters alone, marking a year-on-year increase of 281.13%. Rongjie Corporation achieved a net profit of 1.255 billion yuan during the same period, experiencing an impressive year-on-year increase of 4533.03%. Additionally, Rongjie Health achieved a net profit of 138 million yuan in the first three quarters, reflecting a year-on-year increase of 356.7%. In terms of non-listed companies, the e-reader sector, lithium salt sector, battery materials sector, and lithium battery sector all witnessed doubled growth in performance. Notably, Chengdu Rongjie Lithium Industry began production in January 2022 and generated an output value of approximately 4 billion yuan with a net profit reaching around 2.2 billion yuan solely within the first three quarters—demonstrating strong momentum.

Continuous strengthening of advantageous industries. We have signed investment agreements with the governments of Hefei Chaohu, Guangzhou Nansha, and Chengdu Qionglai, totaling over 28 billion yuan in investments. This will further enhance our production capacity for lithium-ion batteries, battery cathode materials, and flexible displays for color electronic paper terminals. Construction on the Nansha project has already begun in the fourth quarter. The Phase I 20,000-ton/year lithium salt project by Chengdu Rongjie Lithium Industry, the single 10,000-ton/year lithium iron phosphate workshop by Hefei Rongjie Energy, and the single 6,000-ton/year lithium cobalt oxide workshop have all successfully commenced production. Additionally, Hefei Rongjie Metal's new production line with an annual output of 5,000 tons of cobalt trioxide has been fully connected, and our market share for lithium salt products continues to expand. Ganzi Rongda Lithium Industry, Hefei Rongjie Energy, Wuhu Tianyi,and Dongguan Derui have consistently achieved record-breaking levels of production.

Breakthroughs in innovative businesses: Rongjie Health's far-infrared sauna won the gold award in the 9th Anhui Provincial Industrial Design Competition in 2022. Tianyi's products obtained China's first large-capacity safety certification. The flexible display industry achieved eight research and development breakthroughs, including high-resolution electronic ink film development, and made multiple market breakthroughs, such as sample verification and innovative product application development. Rongjie Education's school version of the smart teaching system has become increasingly perfect in terms of functions, technology, content, and services. The individual version of the smart learning system has shown initial results in research and development. The initiation of an intelligent autonomous learning machine that integrates big data, artificial intelligence, and core K12 teaching content lays out the blueprint for educational scientification.

Future endeavors are progressing steadily. Nanjing Rongjian Health Biopharmaceutical Research and Development has obtained 6 national invention patents this year, and the company is accelerating the IND clinical application for its first independently developed drug. We maintain a dynamic approach with a global outlook and actively explore new mineral resources both domestically and internationally. Additionally, we have established the Photovoltaic Energy Storage Division to further expand our offerings in solar energy and energy storage products. The business scope of our group is continuously expanding.

Operational capabilities have significantly improved. We have strengthened the construction of headquarters functions, enhanced the level of group control, and improved management, service, and operational support capabilities for various operating entities. We are speeding up information technology construction and have started developing multiple digital platforms and systems to facilitate the company's digital transformation and upgrade.

We have fulfilled our social responsibilities by making donations to support post-disaster reconstruction in the Luding earthquake-stricken area. Additionally, we have visited and provided support to frontline epidemic prevention personnel and firefighters, contributing to the construction of harmonious society. Furthermore, we are actively promoting ecological restoration work in Ganzi Prefecture. Our efforts aim to develop resources, foster economic growth, and protect the local ecology, establishing an exemplary model for green mining development.

Every endeavor brings both joys and hardships, understood only by those who have experienced them. The path is filled with risks and obstacles, from which knowledge is gained by those who tread it. In the past year, we have encountered successes and achievements, as well as shortcomings and frustrations. All obstacles will eventually serve as a driving force for progress. Regardless of how time may change, the belief engraved in the hearts of all Rongjie people remains unwavering like a rock: "To change the world and create value for humanity with technology".

In the coming year, we will uphold our core values of innovation, entrepreneurial spirit, excellence, and self-confidence. We will actively promote investment projects in Guangdong, Anhui, and Sichuan provinces. Additionally, we will vigorously develop overseas mineral resource projects by accelerating construction efforts and unwaveringly promoting the expansion project of Kangding Lithium Mine. Our customers will be rewarded with high-quality products while shareholders can expect outstanding performance. Furthermore, we aim to create a wider career platform for our employees and contribute more Rongjie strength towards China's economic development.

Let's embrace the world with open arms and step out of the long tunnel of epidemic resistance. Sunshine and hope await us. As we follow the light, each new beginning may be an adventure, but have faith that every journey will bring forth miracles and lead to a brand-new you.

I would like to extend my greetings to colleagues who are steadfastly working during the Spring Festival!

I wish all Rongjie people a happy Chinese New Year and a prosperous and healthy family!