Strengthen confidence and jointly develop the future - 2024 New Year's Speech Group Chairman and President Zhong Changping

When the bell of 2024 is about to ring, on behalf of Sino-Italian Construction Machinery Group, I would like to express my heartfelt thanks and best wishes to our customers, friends, partners and people from all walks of life who care and support Sino-Italian Construction Machinery! I would like to extend my sincere greetings and New Year blessings to all the Zhongyi people and the Zhongyi family members who are silently waiting for support!

2023 coincides with the 30th anniversary of the founding of Sino-Italian Construction Machinery, which is a milestone year for the group. Looking back on the road of struggle over the past 30 years, we have gone through hardships and storms, but we adhere to our original aspirations and forge ahead. We have witnessed the glorious progress of the group: we have extended from cement product machinery to concrete pipe making equipment, mixing equipment, comprehensive pipe gallery equipment, and concrete prefabricated pipe culverts, forming a full range of supply chains for concrete pipes, pressure pipes, and drainage pipes, and becoming an overall solution provider for concrete pipe making equipment and high-end pipe and culvert equipment; our "Equipment Technology +" operation, human-machine cooperation, and quality control in the production process of pipe gallery equipment and components are at the forefront We have taken advantage of our long-term accumulation of manufacturing technology and experience, superb management team and market share to create an integrated model of concrete pipe culvert prefabricated R&D, production, installation and construction, forming a strong comprehensive supporting production capacity; we already have leading enterprises in the domestic cement products industry and more than 200 customer resources in diverse industries such as China Railway, China Construction and China Communications Construction, laying a solid foundation for the development of the enterprise.

2023 is the year when the economy resumes development after three years of COVID-19 prevention and control. The economy is struggling to recover, the market is complex, and uncertainty has become the norm, bringing many variables to the building materials industry. With the joint efforts of all employees, the Group still shows strong operational resilience and faces challenges beyond growth while developing steadily. This year, we maintained high-intensity R&D investment, continued to innovate in core underlying technologies such as prefabricated pipe culverts and drainage pipe production equipment, and maintained the competitiveness of our main products at the forefront of the industry. We supplied 4500 diameter (the largest diameter in China) power pipe gallery pipe jacking to the No. 1 Company of China Construction Eighth Engineering Group Co., Ltd. in Yanziji and successfully implemented it! This year, we closely followed the pace of customer business transformation and changes in demand structure, and actively played the role of pipe making equipment and equipment overall solution provider to greatly meet customer needs. Our core supplier status was further consolidated, and Liuzhou Lianheng, Yanbian Hengyuan, etc. that have been completed have an influential window effect in the industry. This year, we took advantage of our industry influence in mold, equipment manufacturing and component production to provide customers with drainage pipe production equipment and supporting process design, production layout, on-site construction and other projects. Our industry competitiveness and risk prevention capabilities were further enhanced. We participated in the 113500/7500 road connection project with the largest cross-section in China undertaken by China Construction Eighth Engineering Bureau No. 3 on Nanjing Jianning West Road. Currently, two sets of molds have been completed.

2024 is a year for the Group to gradually deepen its efforts. The Group is facing an unprecedentedly complex environment. It is faced with many difficulties in expanding into new areas and new markets. New opportunities are coming, and new challenges are imminent. We must not only face up to difficulties, but also build confidence, maintain concentration at all times, and do our best without distraction.

Strategically, we must adhere to the strategic steps of "consolidating the advantages of traditional industries and realizing product transformation and upgrading", adhere to innovation-driven and application-driven, firmly expand into high-efficiency drainage pipe production equipment, strengthen application innovation of concrete pipe culvert components and equipment, and firmly seize strategic opportunities such as digitalization, intelligence, and low-carbonization of building materials and construction machinery. Create maximum value for customers, achieve dreams for employees, and contribute to social development.

In terms of operations, we must adhere to "precision and pragmatism, steady growth". Growth remains the group’s top priority in 2024! Improve the existing structure, expand incremental markets, explore variable opportunities, and on the premise of ensuring the core competitiveness of traditional businesses, fully promote the rapid growth of new market development businesses, so that business must be accurately allocated, resources must be accurately allocated, customers must be accurately focused, and services must be accurately positioned, making precision the key guarantee for growth.

In terms of management, we must "adjust the status and tap the potential", stimulate the vitality of the team and employees, constantly challenge ourselves, jump out of the comfort zone, and have the courage to break through the upper limit. It is necessary to adjust the management form and move from "effective" to "efficient" to further improve the overall operation and business flow efficiency; it is necessary to enhance the sense of responsibility and let employees adhere to their sense of responsibility, maintain customer awareness, and maintain company awareness; it is necessary to build a compliance system, continue to enhance risk prevention capabilities, and create a highly resilient organization to "let communication and trust be everywhere."

Let us strengthen our confidence, explore the future together, and face the new year full of challenges with a higher morale and spirit!

I wish everyone a new year, happiness and good health!