Lu stops here, the sea begins here ▎Zhonghong Heavy Machinery 2020 New Year Message

Lu stops here, the sea begins in Sri Lanka▎Zhonghong Heavy Machinery 2020 New Year Message

At the westernmost point of Eurasia, from Lisbon40 kilometers, there is a place with beautiful scenery that attracts endless stream of tourists from all over the world. Cape Roca, located at 38 degrees 47 minutes north latitude and 9 degrees 30 minutes west longitude, looks away from the \"Tianya Haijiao\" of this Eurasian continent, and it is very clear to feel the wind blowing from the Atlantic Ocean. The most famous one here is the famous sentence of the Portuguese poet Camus: Lu stopped here, and the sea began on (Onde a terra acaba e o mar comea).

At the beginning of the 15th century, it was here that the Portuguese prince Enrique led a group of navigators to start the magnificent voyage era, saved the precarious European economy at that time, and opened a new era of global economic development.

China in the 21st century, as the world's second largest economy, is in such a critical period of deep adjustment of global economic integration, transformation, development and upgrading. We believe that the future belongs to China. Similarly, Zhonghong Heavy Machinery is now in a critical period of strategic development in which the global mining industry is becoming unmanned and the mining equipment manufacturing industry is upgrading intelligently. Brushstroke. With 26 years of development, we have formed a strong team, created the \"FAMBITION®\" brand of excellent quality, developed a multi-category, multi-level product chain, laid out global marketing channels, and established a rapid response The service network provides surprisingly sustainable overall productivity, low-cost operation, leading technology, and intelligent mining shovel shipping and overall solutions for underground mines worldwide.

Zhonghong in 2019 attracted the capital injection of Luxin Venture Capital, which not only provided financial support for the development of the company, but also promoted a more standardized corporate governance structure. The two legal entities, Zhonghong Heavy Machinery and Tianhong Power, The relationship is clearer and more in line with the requirements of modern companies, which lays a solid foundation for the company's IPO three years later;

In 2019, Zhonghong introduced a well-known management consulting company and started a consulting project in terms of internal operation management improvement. Reorganize the company's organizational structure, responsibilities, business processes, research and development management, production management, quality management and other aspects, and improve the organization's operating efficiency;

In Zhonghong in 2019, the quality management system can be implemented unswervingly, the quality awareness of all staff can be strengthened, the speed of complaint response can be improved, technological innovation can lead the development of the enterprise, and the quality concept of \"ingenuity manufacturing, precision quality \" Product quality can be improved;

In 2019, Zhonghong also made a major breakthrough in the introduction of excellent talents. It successively introduced various types of excellent talents, expanded the R & D team, sales team, and management team, making the overall strength of the company team unprecedentedly stronger;

In 2019, Zhonghong achieved a global layout in the market, made a major breakthrough in sales, and successfully entered the supplier system of several large mining groups at home and abroad, allowing the efficient equipment of \"FAMBITION®\" These markets have established a number of benchmark customers, laying a solid foundation for future major customer orders and rapid market share expansion.

The global economic growth rate is expected to slow down in 2020, and the development trend of various industries including the global mining industry will be uncertain and challenging. For Zhonghong, 2020 is bound to be a crucial year full of opportunities and challenges, and a year ready to take off after years of accumulation. We are a young team with great spirits and big dreams. We are willing to take advantage of China's national policy of \"manufacturing power and technology power\" to work together in the tide of the times and pursue excellence. Development makes contributions from China. We are a struggling team, full of enthusiasm for work and life, and hope for the ideal and the future. Nietzsche said that every day without dancing is a disappointment to life. We are willing to work with our industry counterparts to forge ahead, be determined, and stay connected to the sea.

In the new year, we will continue to launch super-large tonnage scrapers and ore trucks, multi-functional auxiliary vehicles, continuously improve the product chain, and have the ability to provide solutions for global large-scale underground mines; in the new year, we will continue as always Adhering to the technology leadership strategy, further optimizing the level of intelligent remote control of equipment, preparing for the unmanned operation of mining, leading the development of domestic smart mining; in the new year, we will continue to upgrade in internal operation management and comprehensively improve the management of The level of data and informatization improves the efficiency of R & D, production and quality management; in the new year, we will continue to build and improve the global after-sales service network, improve the response speed of after-sales service, and meet customer needs; in the new year, we will work hard Work, complete the annual business goals, create maximum value for customers and employees for shareholders; in the new year, we will respond to the national call, focus on high-end manufacturing, and use the best performance to give back to the support of our customers, governments at all levels, and all walks of life.

In the future, Zhonghong Heavy Machinery will definitely face the market and users with a newer and better attitude. Where there is a mine, there will be Zhonghong efficient equipment! With Zhonghong's high-efficiency equipment, Zhonghong's high-quality service is bound to come!

Finally, we extend our best wishes to our customers, employees, shareholders and every partner who cares about Zhonghong's cause and is willing to develop together with Zhonghong. I wish you all a good time in the new year and a handful of income, and wish every family happy and happy.

Zhonghong Heavy Machinery

December 31, 2019