Wind power is the time to set sail, with diligence and hard work to compose a new chapter - Chairmans 2025 New Years Speech

The seasons flow like a stream, with each passing year. On this beautiful occasion of bidding farewell to the old and welcoming the new, and the change of the year, on behalf of the company's shareholders' meeting, board of directors, and management committee, I would like to express my sincerest gratitude and warmest holiday greetings to every employee and their families who have worked hard and silently contributed to the development of the company! At the same time, we extend our highest respect to friends from all walks of life who have long supported and cared for the development of the company, and to all our partners who have worked hand in hand with us and provided strong support. May everyone have good health, happy families, and thriving careers in the new year!

The river of time rushes forward, and the steps of the strugglers never stop. The year 2024 that just passed has extraordinary commemorative significance for Dongyu Hongxiang. We solemnly celebrate the 20th anniversary of the company's establishment. This is not only a milestone moment, but also a deep tribute to the company's past 20 years of ups and downs and unremitting struggle. Dongyu Hongxiang people hold the pen of time tightly, forge ahead in the wind and rain, conceive new opportunities in challenges, and paint a magnificent chapter of the company's development.

This year, we have overcome difficulties and forged ahead.

Faced with the complex situation of weak global economic recovery, continuous international trade frictions, and the market environment of insufficient domestic effective demand and intensified internal competition, we have fought back against uncertainty with resilience, created new possibilities with initiative, and withstood the test. The company adheres to the policy and strategy of "marketing driven, increasing revenue and reducing costs", fully leverages the leading role of sales, explores domestic and foreign markets through more diversified channels, actively integrates into the dual circulation pattern, focuses on customer needs, and achieves stable growth in sales performance and market share. Continuously enriching and improving the product matrix of four major categories: decorative paper, decorative panels, decorative parts, and whole house customization, with greater efforts to reduce costs, increase efficiency, and implement lean production, enhancing endogenous power, innovating and creating excellence at a faster pace, promoting product quality and upgrading, the company's profits have reached a new high, and its profitability has reached a new level. According to the business plan at the beginning of the year, each business unit has made every effort to create excellent business results, especially the Shuyang Theater Command, Hongshuo Theater Command, and Taiping Project Department, which have successfully achieved their expected goals and played a positive role in driving growth, delivering a relatively beautiful answer to the company's development.

This year, we have been driven by innovation and have produced numerous highlights.

With strong innovation capabilities and scientific enterprise management, the company has successfully passed the re evaluation and recognition of high-tech enterprises and provincial-level enterprise technology centers, and has been selected as the "Morning Star Factory" of Shandong Province's digital economy and a provincial-level innovative small and medium-sized enterprise. The company's two projects, "Research and development of key technologies for environmentally friendly impregnated paper with antibacterial and formaldehyde free properties" and "Research and development of water-based ink and its synthesis process for PVC edge banding gravure printing", have been selected as the first batch of enterprise technology innovation projects in the province. The national standard "Accounting and Reporting Requirements for Greenhouse Gas Emissions of Furniture Production Enterprises" and the CECS group standard "Anti mold and Antibacterial Wood Cabinet Board for Home Use", which were jointly formulated, have been reviewed and approved. Six new invention patents and three utility model patents have been granted.

This year, we have overcome difficulties and worked hard.

2024 is a crucial year for the comprehensive promotion of the company's digital transformation. With the joint efforts of implementation consultants, project teams, and various departments, the second phase of digital transformation has achieved significant breakthroughs, with the implementation of SAP systems in Shuyang and Malaysia, PDM、 Langsu MES, HR, CBS, and accounting computerization systems have been successfully launched and put into operation. From customer relationship management, supply chain management, quality management, to internal collaborative office, digital transformation has made the company's operations more transparent and efficient, while also enhancing customer experience and satisfaction.

In terms of intelligent transformation, more than 20 million yuan has been invested in the new Kami whole house customized Industry 4.0 automatic production line, which has completed equipment upgrades and transformations for veneers, cabinets, and countertops. At the same time, advanced systems such as MES have been integrated into production and management processes, greatly improving production efficiency and achieving a magnificent transformation from "manufacturing" to "intelligent manufacturing", significantly enhancing product quality and competitiveness.

The first phase of supply chain management improvement has been successfully completed. With the help of external brain diagnosis, good results have been achieved in order delivery, inventory stagnation, supplier management, and other aspects, solving current pain points, improving supply chain management level, and laying a solid foundation for the long-term development of the enterprise.

This year, we have gathered strength and strived to take on responsibilities.

The company is guided by corporate culture and actively explores and promotes the power of role models. Wang Maoliang, Liu Languang, Wan Dongli, Wang Kuichao, Wang Chunhua, Meng Deqiang, Zong Xianyuan, Wang Lijuan, and Han Lei have been successively awarded the title of "Most Beautiful Dongyu Hongxiang People". In the year-end summary evaluation, six departments were listed with outstanding performance, namely the Best Sales Team: Shuyang Business Department, Hongshuo Import and Export Department 1, Hongshuo Import and Export Department 3; Best production team: Shuyang impregnated paper factory, countertop project department (production), printing paper factory. In addition, 59 employees stood out with outstanding performance and were awarded the title of "Outstanding Star". Here, I sincerely congratulate the outstanding teams and individuals who have been commended, and hope that you will carry forward your achievements, guard against arrogance and impatience, and contribute greater strength to the development of the enterprise.

All the past is a prologue. Looking back at 2024, achieving great results is not easy, which cannot be separated from the bold and hardworking attitude of the vast number of cadres and employees, as well as their hard work and successful running. It is through your sweat and wisdom that the company has achieved its glory today. You are the most valuable asset of the company and the solid foundation for its development. Thank you for being with us all the way. Here, I would like to express my heartfelt gratitude to everyone!

Despite its difficulties, it shows even more courage and perseverance; Only when the waves wash away the sand can one obtain true gold. In 2025, from the perspective of the external environment, the macroeconomic situation at home and abroad is still not optimistic. We must always maintain a clear mind and sharp insight, accurately grasp the pulse of the market, constantly adjust and optimize development strategies, and meet new challenges with more high morale and firm confidence.

In 2025, we must adhere to customer centricity and let those who hear the gunfire command the battle. Establish an "iron triangle" team of business managers, product managers, and delivery managers to quickly respond to customer needs. The sales department should strive to increase revenue, actively explore international and domestic markets, strengthen the stability of the industrial chain and supply chain, and promote the integrated development of various business units.

In 2025, we will promote the strategy of "increasing income and reducing costs" in a long-term manner, strictly manage budgets, control expenses, improve personnel efficiency, and enhance the overall profitability of the company. While fully focusing on the development mainline, firmly establish bottom line thinking, comprehensively strengthen risk awareness, and cherish hard won business achievements.

2025 is the final year of digital transformation. As the last year of large-scale promotion, we need to complete the comprehensive launch of various digital systems and deeply experience the convenience and efficiency brought by digitization.

In 2025, the company officially launched its equity incentive plan to create a "community of shared destiny" between the company and its employees, ensuring that every key employee can enjoy the dividends brought by the company's vigorous development and achieve a win-win situation between the company's development and personal interests. Happy work, happy life

Although dreams are far away, chasing them can be achieved; although wishes are difficult, holding them can be fulfilled. In 2025, let us join hands and move forward together, with more enthusiasm and more firm beliefs, to meet new challenges and opportunities, and jointly write a more brilliant tomorrow for Dongyu Hongxiang!

The Spring Festival is coming soon. Wishing all family members a happy work and life in the new year, and wishing Dongyu Hongxiang a better future!

Thank you everyone!