Dear colleagues,

At the end of 2022, the whole people welcomed the Chinese New Year in a very special way. With the weakening of the toxicity of the new crown virus, the state issued the "New Ten Epidemic Prevention Rules" on December 7, adjusted prevention and control measures in many places, and basically achieved full opening. Despite the short-term shutdown and inconvenience, people's confidence in the future restart of China's economic engine is gradually recovering, and the arrival of the New Year in 2023 is shining with a glimmer of light.

2022 is a year that can go down in history and a year of accelerated changes in the world's century-old pattern. The world economy is on a downward trend, and the risk of recession is rising. The Sino-US game, the Russian-Ukrainian war, the decline of Europe, and the global governance order are being reconstructed. Domestically, it is a year to embark on a new journey towards socialist modernization with Chinese characteristics, a key year for the promotion of the 14th Five-Year Plan, a year for the convening of the 20th National Congress, and a year for the normalization of epidemic prevention and control and then the liberalization.

For XIC 2022 is a year of hard work and sustainable development. The external situation was not optimistic, real estate development investment has declined significantly year-on-year, and several major private real estate companies are facing bankruptcy restructuring crisis. The elevator market capacity was declining, the cake is shrinking, and the competition was becoming more and more intense. The epidemic lockdown on and off, especially at the beginning of the year, from sales to delivery and supply chain to production organization all of the normal business activities has hindered when Shanghai was in lockdown. Fortunately, the price of raw materials has fallen significantly compared with the previous year, it giving us a breather.

From 2019 to 2022, the pandemic has been three years, and many industries was in struggled! Inventorying our core industry, New XI'AO Elevator Group's orders rose from 76,000 to 150,000 units, and shipments almost doubled from 63,000 to 120,000 units! Forvorda mainframes rose from 160,000 to 215,000, and Optimax door operators rose from 140,000 to 200,000 and control cabinets rose from70,000 to 120,000 with an increase of 30%-70%! Those numbers show that we are not afraid of adversity and difficulties, dare to challenge and dedicate with continuous innovation! Exactly, this is preparation and manifestation of long-term accumulation!

XIO Lift continues cultivating the intelligent manufacturing, enabling the industrial chain upstream and downstream, and has  been selected as the Zhejiang Province "Future Factory" and the only "Chain Master Factory" in elevator industry. The third phase of the office building has been completed, and will move into it next year. At that time, the new park will be grandly opened.

XIO Lift Modernization's Dream Works has been fully operational at the end of the year, with excellent quality and efficient installation technology, it continues to be the first brand of retrofit elevator.

Xizi Lift has an excellent iron marketers, which still maintains contrarian growth in downturn. It also has achieved many classic projects, and has been recognized by Zhejiang Provincial Industrial Design Center!

Surapid Elevator has been integrated and operated in Jiaxing for one year which new plant has won praise from all circles. The team works together for company development, with that the brand reputation is increasing day by day!

Hengfan factory of Optimax has been initially built which art and function are complement each other. And then, Qingshan, Hengfan, Jiaxing those factory has created the most optimized and ultimate industrial chain by division and cooperation with their own respective advantages. Optimax platform gate have been recognized by customers through helpping Hangzhou Asian Games and other large-scale projects!

Forvorda also formed three factories in Qingshan,  Hengfan, Yuqian according to reintegrated project and layout. They ranking NO.1 and winning the national manufacturing single champion in the traction machine. They are actively explore more from the traction machine to the upstream industry chain and out-of-industry application.

As a leader of intelligent parking enterprises, Xizi iParking continues to create intelligent parking products and services, and then it has become the first batch of "specialized and new" enterprises in Zhejiang Province.

This year, under the new real estate situation, Xinhuayuan Real Estate has strived to adjust its positioning, focus on key projects, perform its own duties in the five major sectors. Through that, the depth and precision of company management has a greater extent enhance. Baida Group Co.,Ltd have developed steadily and actively explored the future strategic development direction. Ninghai XIC Team has tried every way possible to finding opportunities to seek breakthroughs under lockdown, and its performance has still improved. The professional management ability of the headquarters has been continuously improved and the depth and width of management of various functional departments have been strengthened to varying degrees, all of this providing higher level and more professional guidance for each company!

All the struggles let us on the greatness road. Greatness is neither happy nor delighted, it's win over by facing difficulties directly, even by repeated suffering. "Lang Taosha" shows our hard work and struggle that we have never wavered and never returned which wrote by Tang Dynasty poet Liu Yuxi. "Countless gravels travelled thousands of miles in the nine-bend Yellow River, washed by the waves and tossed by the wind came here from the end of the world. Although it's a hard work for thousands of years, the difficulties are blown out then the achievement will begins to come." Our team has truly achieved that a fine horse dashes without a horsewhip by consciously autonomous, innovative management. Everyone overcomes and tides over difficulties together to creates the dawn of victory and phenomenon once again, so that we can believe in ourselves, believe in miracles, believe in the future!

Sincerely express our sincere gratitude to you!

In the new year, the COVID-19 epidemic which has profoundly changed our economy and life will come to an end. Under leadership of China's new leader team, we strive to achieve the expected goals of economic development, maintain stable growth, stable employment and stable prices which will make a new atmosphere and achievements. Economic growth will be top priority and GDP growth is likely to remain at 5% or more. However, internal and external situation is still relatively grim. Above all, the central government will vigorously promote market confidence, work actively to renovate traditional industries and upgrade the cultivation of strategic emerging industries, after that will continue to expand the pace of opening up and introduce policies to expand domestic demand. At this time, all leaders from the central to the local level are paying attention to the economy, which will be a great help to next year's economic development.

Facts have proved that products can conform to the historical trend of the time are good products, and the same as enterprises no matter how the situation changes in the changing age.

At strategy level, we should grasp domestic on one hand and overseas on the other in the elevator industry. We should pay attention to the new infrastructure market, home lift and retrofit elevator market, which is the inevitable result of expanding domestic demand to boost consumption. In the case of unsaturated domestic markets, let's looking overseas markets. This year, we established an overseas company in Singapore, hoping to use this platform to gradually expand outward, actively expand overseas emerging markets, and begin to allocate global resources to ensure that oriental not bright western bright. I would also like to reiterate repeatedly that our industry must adhere to long-term principles, do not seek luck, not be tempted, concentrate, work hard, innovate and change, enhance strength, and firmly develop in the direction of high quality and even extreme quality!

To further develop, XIC will continue to seek new industries with complementary industrial cycles. The new industry must suit the industrial development policies at home and abroad, have capacity of the market or be innovation-driven to achieve high-scale and high-quality development. As long as we have plenty of cash and sufficient level of vision, we will be able to select excellent strategic development projects.

At tactical level, we must sustainably attach importance to technology, quality, industrial chain and service. We also must be fully aware that the future market will gradually shift from price to technology, to technology uniqueness, and finally to irreplaceability. Therefore, we have to be capable of sizing up the situation, being wise and forward-looking, deepening learning of peers, increasing investment in new product research and development, expanding the application of intelligent unmanned wires, finding valuable industrial chain extensions, accelerating the layout of dense maintenance services, and striving to be a leader in the field of innovation and digitalization. In the final analysis, the most importance of tactical level is pay attention to talent and retain elites. We should continue to unswervingly promote the elite stock ownership plan, provide development space and entrepreneurial platform for excellent managers, and provide a steady stream of reservoirs for the sustainable development of enterprises!

At spiritual level, we must permanently maintain the pioneering spirit which are abide by the correct and be hardworking.  Abide by the correct should be diligence, concentration, and endurance of loneliness. Hard work is bravery, innovation, and stand up failure. Excellent managers can ignite inspire others, and also generate and empower themselves, talk to themselves, bless themselves, rearm themselves, and then lead the team to embark on the journey again! Considering form history and time, pressure, difficulties and failure are never bad things, it cannot defeat us but will only make us stronger and more forge ahead, because the will lives on and spirit will not die!

The road of life is always full of ups and downs, The road of career is full of thorns. What can leads us out of difficulties is the starlight in the distance and the faith in our hearts. These small lights have converged to create a sun. We firmly believe that once the sky is in dark, the stars will burn and shine! Let us work together going to happiness by suffering, hope by struggle, and success by wisdom.

"Minshan's thousand-li of snow joyously crossed, the three Armies march on, each face glowing"!

Here, I would like to express my deep gratitude to everyone for their hard work and dedication for a year!

Sincerely wish you and your family have good health, prosperous career and happy family!