New Year Speech by Chairman Zhang

Dear colleagues, friends and partners

The nature gradually returns to spring, and the time is full and new. Facing the first ray of dawn in 2023, WuHu shipyard embarked on a new journey. On the occasion of saying goodbye to the old and welcoming the new, on behalf of the Party Committee of the Company, I would like to express my most heartfelt thanks to the employees who have been working together in various posts through thick and thin over the past year, pay deep respect to all the families who have silently supported us, send sincere wishes to global partners and friends from all walks of life, and wish everyone a happy New Year!

The times are surging, and we are rushing through the pass towards the future. In 2022, under the pressure of repeated epidemics, economic downturn and constant changes in the international and domestic markets, we adhere to the business policy of "seeking progress while maintaining stability", unite from top to bottom to tackle tough problems, firmly anchor our goals, and comprehensively promote the deepening of reform and management improvement. In 2022, the company successfully achieve its annual goals in terms of operating income, total profits, operating cash flow, effective orders, etc., With more than 16 billion handbook orders which received by military and civilian products reached a record high, laying a solid foundation for the ship sector in 2023!

The year 2022 is the year of management reform of WuHu Shipyard. We firmly promoted the "Amiba" operation, innovated and established a type of ship management system, stimulated the overall vitality, and gradually formed an independent business atmosphere. We firmly practiced the concept of "lean production", used TPM management tools, and encouraged all employees to participate in the improvement with the purpose of improving the company's profitability. This year, seven workshops carried out 22 high-level diagnoses, completed a total of 240 project improvements.

2022 is a breakthrough year for WuChuan. We steadily built product line race track in the international market, gave priority to the development of green power technology, achieved the goal of technology and green intelligent shipbuilding, devoted ourselves to promoting the "dual carbon" cause, and solved the diversified needs of our customers. In domestic sector, we have been actively exploring the inland shipping market and taking "small boats" as the pioneer to enter the inland shipping field. Responding to the call of the Ministry of Industry and Information Technology of the People's Republic of China to vigorously develop "green and intelligent inland ships", speed up the development of inland ship products suitable for the Yangtze River, Yellow River and other inland rivers, and speed up the attack on the inland river market.

2022 is also the year of strategic transformation for yard. We firmly believe that "technology is the first productive force and innovation is the first driving force", focus on the advantages of production, education and research, take the lead in establishing the first Haizhi Equipment Research Institute in the province, focus on the research and development of main ship types and core products, create sustainable development conditions, build core competitiveness, and "build nests to attract talents" to attract high-end talents in the field of shipbuilding, Promote the transformation of shipyards from single manufacturing enterprises to R&D+manufacturing enterprises. At the same time, as the initiator, WuHu Shipyard gathered superior resources in the upstream and downstream of the industrial chain such as R&D, design, construction, supporting and operation in Anhui Province, formed the Anhui Green Intelligent Ship and Marine Engineering Equipment Industry Alliance, and worked with peers in the industry to promote the high-quality development of the entire industrial chain of Anhui shipbuilding industry.

Comrades and friends, looking back on 2022, we have taken firm steps, laid a more solid foundation for stability, responded more calmly to changes, become more confident and work harder. Facing the new year 2023, we are well aware that this is the first year of the "Three Hundred" strategy of the shipbuilding sector, and also a turning point year for WuHu to overcome difficulties!

In 2023, we will continue to adhere to the business policy and objectives of "balanced production, improved quality and efficiency, transformation and upgrading, and optimized mechanism", focusing on production, improving efficiency, promoting efficiency, and optimizing management; In 2023, we will divide small profit business units, conduct multi line operations with three types of profit management bodies, and dig deep into profit sources; In 2023, the company will stimulate the potential of all employees in accordance with the supporting incentive mechanism of high goals and high returns. According to the requirements of the three stages of the group - stepping on the "bottom line", exceeding the "guarantee" and meeting the "challenges", the company will seize the opportunities of the times and challenge higher goals!

The eagle is flying against the high sky with the new journey is honing the original aspiration. Since the new year has begun. Let's strengthen our confidence, set out immediately, unite around the Party committee and leadership, seek change in stability, work hard, be able to work skillfully, consolidate the foundation, strengthen management, promote improvement, create a new situation of high-quality development, and forge ahead bravely to achieve the goal of "three hundred"!

Chairman

ZhangZhao