Travelers have no boundaries and soar against the wind--2023 New Year's speech by the general manager of Fambition Heavy Machinery

Turbulent seas and turbulent storms. In 2022, it is not an exaggeration to use these eight words to describe the domestic and international environment.The Russia-Ukraine war, epidemic prevention and control, energy crisis, inflation, economic downturn, natural and man-made disasters, reverse globalization, supply chain instability... Standing at the end of the year, looking back at this year, mankind has faced too many sufferings and challenges. , the footsteps of the earth are stumbling.Fortunately, we still have some good news, such as the G20 Bali meeting, the APEC Bangkok meeting, the world-famous China's 20th National Congress has come to an end, manned spacecraft have been launched into space several times, and the Qatar Football Cup has been celebrated all over the world. … When we walk to the bottom of the water and sit and watch the clouds rise, these positive actions to build a community with a shared future for mankind also inject new hope and vitality into the earth, allowing us to always believe that mankind will survive the cold winter and embrace spring.
Turbulent waves and turbulent winds, in 2022, it is not an exaggeration to use these words to describe the general environment at home and abroad. Ukraine war, pandemic containment, energy crisis, inflation, economic downturn, natural and man-made disasters, anti -globalization, supply chain turmoil... Standing at the ferry end of the year, looking back this year, mankind has witnessed too many sufferings and challenges, the earth's footsteps faltered. Fortunately, we still have some good news, such as the G20 meeting in Bali, the APEC meeting in Bangkok, the world-renowned 20th meeting of National Congress of China, several manned spacecraft have been in space, and the Qatar Football World Cup is a world-wide carnival …While walking along lake and watching the clouds rise, these positive actions to build a community with a shared future for mankind have also injected new hope and vitality into the world, enabling us to always believe that mankind will surely go through the cold winter and embrace a new spring.

Looking at the global mining industry, as countries increase their demand for mineral products that promote economic recovery, the main theme of bulk mineral product prices in 2022 is to advance rapidly. At the same time, due to factors such as the outbreak of the Russia-Ukraine war, anti-globalization, geopolitics, and demand for new energy and new materials, Many countries have elevated mineral resources to the national strategic level and received unprecedented attention. Industry sentiment is generally optimistic and confidence is boosted. This is due to green environmental protection, energy conservation and emission reduction, mechanized replacement of people, automation and intelligentization of industries with fewer people. Due to changes and other requirements, technological innovation will promote a disruptive revolution in the mining industry in the near future. The application of new energy power and intelligent mining technology will be the main theme of the transformation of the mining industry in the next few decades.Zhonghong Heavy Machinery, which was founded only ten years ago, is a research and development manufacturer of underground drilling and blasting and ore handling equipment. As a global enterprise and the leader of high-end mining equipment in China, we are fortunate to be in, participate in and promote this industry. During the development period of industry disruptive revolution.
Looking at global mining industry, with increasing demand for mineral products that promote economic recovery in various countries, the main theme of the price of bulk mineral products in 2022 is triumphant, with the background of anti-globalization, complicated geopolitics and new energy development, many countries have raised mineral resources to the national strategic level, which has received unprecedented attention. The industry sentiment is generally optimistic and confidence is boosted. Out of industry requirement of environmental protection, energy saving and emission reduction, mechanization, automation and intelligentization, technology innovation will drive a subversive revolution in the mining industry in near future, and the application of new energy power and intelligent mining technology will be the main theme of the changes in mining industry in the next few decades. Founded only ten years ago, Fambition Heavy Machinery, as a research and development manufacturer of underground drilling, blasting and ore handling equipment, a global enterprise and a leader in China's high-end mining equipment, we are fortunate to be in, participate in and promote this reform of industry disruptive revolution.

2022 is coming to an end, and the new year 2023 is coming towards us.On the occasion of the New Year, on behalf of the company, I would like to say 'thank you' to Zhonghong's friends who have been together through thick and thin, to the global customers and partners who have grown together with us, and to the investors who have trusted and supported us. Say 'gratitude' and say 'touch' to the local government who helped set up the stage.
2022 is leaving, and the new year 2023 is slowly approaching. On the eve of 2023, on behalf of the company, I would like to say 'thanks' to all Fambition employees who are with me through thick and thin, to extend 'appreciation' to global customers and partners who have been growing with us, and to express 'gratitude' to investors who trust and support us, and 'I'm touched' to the local government that helped our development.

In 2022, with the joint efforts of all Zhonghong people, Zhonghong Heavy Machinery once again achieved a historic breakthrough, with operating data such as revenue, profits, and contract signings all reaching record highs. We have continued to improve our corporate governance, product research and development, market development, and production capacity. Significant progress has been made at all levels such as improvement and quality management. We stand at a new height and a new starting point to create a new future.
In 2022, with combined efforts of all Fambition people, Fambition Heavy Machinery once again made a historic breakthrough. Operation data such as revenue, profit, and order-intake all hit record highs. Significant progress have been made in various aspects such as governance, research, marketing, production capacity expansion and quality management. We stand at a new height and a new starting point to create a new future.
In 2022, we will complete corporate reorganization, equity reform, strategic financing at the corporate governance level, introduce professional coaching institutions, sort out the company's operational governance, and draw a clear blueprint for the company's next capital operation and overall listing.
In 2022, at the corporate governance level, we have completed corporate restructuring, equity reform, strategic financing, developed with professional counseling institution to sort out corporate governance, and drawn a clear blueprint for the company's next step capital operation and overall public listing.

In 2022, we will give full play to the advantages of a 'specialized, special and innovative' enterprise, practice 'unique skills' in segmented fields, and create 'competitive products'.This year we became the 'hidden champion' of the industry, further consolidating the company's technology leadership strategy. This year we promoted industry-university-research cooperation at the level of new technology research and development, and continued to promote 'intelligent' project upgrades. The intelligent mining system and production data integration platform have completed project implementation, battery-powered drive products have completed technical reserves, breakthroughs have been made in the research and development of ultra-large tonnage equipment, and the product line has been further expanded and improved.
In 2022, with the advantages of a 'specialized, special and new' enterprise, we continue to exercise 'unique skills' in subdivided fields, and create 'historical products'. This year we became the 'hidden champion' of the industry, which further consolidated the company's technology-leading strategy. This year, we promoted industry-university-research cooperation at the level of new technology, and continued to promote 'intelligent project' upgrades. The intelligent mining system and production data integration platform was landed successfully. Technology-Reserve of battery powered products was completed, R&D progress of ultra-large tonnage equipment has made breakthrough, and product lines have been further expanded and improved.

In 2022, we will thrive in the face of adversity and deepen our expertise in the professional field. At the same time, the company will also assume more social responsibilities, promote local economic development, contribute to local finance and taxation, and increase local social employment. In just one year, Zhonghong Heavy Machinery Co., Ltd. The headcount increase reached 46%.
In 2022, we continue to move on against tide. While deeply cultivating professional fields, Fambition also assumes more social responsibilities, promotes local economic development, contributes to local fiscal and taxation, and increases local social employment. In just one year, Fambition employee QTY has increased by 46%.

In 2022, we will adhere to a customer-centered, three-dimensional marketing service model that integrates products, overall solutions, after-market services, and remanufacturing services. We will span the world and bring comprehensive product and service upgrades and guarantees to global customers. Traditional The market has maintained an incremental increase in cooperation with new projects, more and more emerging target markets have achieved zero breakthroughs, and the number of strategic large customers has begun to take shape.
In 2022, we adhere to the customer-centered culture, and continue to give comprehensive support to global customers with a four-dimensional business model, ie, rich products, various solutions, aftermarket service and Rebuild service. The traditional market maintains a stable increase Along with new projects, more and more new markets have achieved breakthroughs, and the number of strategic large customers has begun to take shape.

In 2022, we will actively promote the integration of R&D and manufacturing at the production and manufacturing level, increase staff and efficiency in the production center, and optimize the production organization model.Laixi Industrial Park has realized the commissioning of two production lines. The two major production centers of Chengyang and Laixi are flying together, and the production capacity has been further improved, providing production guarantee for the achievement of excellent performance.
In 2022, we actively promote the integration of R&D and manufacturing, and optimize the production organization model. Laixi Industrial Park has commissioned successfully two new production lines, thus two production centers, ie, Chengyang and Laixi, are running together, and the production capacity was further improved, which provided a guarantee for the achievement of excellent revenue performance.

In 2022, we will always adhere to the concept of 'craftsmanship and precision workmanship' at the quality management level. Focusing on improving product quality and service quality, we will strengthen the quality of all employees, all-round and whole-process quality by integrating the management goals and standards of different departments of the company. control to achieve incremental improvements in quality management effectiveness.
In 2022, at the quality management level, we adhere to the conviction of 'precision quality', continue to improve product quality and service quality by integrating the management objectives and standards of different departments of the company, and strengthen the quality control throughout production process and organization levels, which increased effectiveness of quality management.

Looking forward to 2023, the world may move towards a global economic recession, and emerging markets and developing economies may experience a series of financial crises that can cause lasting damage; the World Trade Organization predicts that due to multiple shocks to the world economy, the growth rate of global trade in 2023 will be dramatically drop.In the eyes of many industry insiders, the arrival of the economic recession is not unexpected.First of all, the economic prosperity that some countries have experienced after the COVID-19 epidemic is largely a false prosperity brought about by the central bank's radical 'release of water'.Secondly, the impact of the epidemic has not dissipated, and the Russia-Ukraine war has shown no signs of easing. Although the Federal Reserve’s aggressive interest rate hikes have brought inflation to a certain level, the inhibitory effect on economic growth has become increasingly obvious. The external environment we face is still very severe. complex.The just-concluded Central Economic Work Conference of the Chinese government comprehensively summarized the economic work in 2022, conducted an in-depth analysis of the current domestic and international economic situation, and systematically deployed the economic work in 2023.The meeting pointed out that next year's economic work will be complicated, and we must proceed from the strategic overall situation, starting from improving social psychological expectations and boosting development confidence.The meeting also pointed out the need to strengthen the development of important energy and mineral resources and increase reserves and production, accelerate the planning and construction of new energy systems, extend the service life of mines, and continue to promote the intelligent and green construction of mines.Promote the high-end, intelligent, and green manufacturing industry, develop intelligent manufacturing, and green manufacturing, promote the transformation of production methods to be flexible, intelligent, and refined, and enhance the security of the industrial chain and supply chain.
Looking forward, the world may move towards a global economic recession in 2023, and a series of financial crises that may cause lasting damage to emerging markets and developing economies may occur; the World Trade Organization predicts that due to multiple shocks to the world economy, the growth rate of global trade in 2023 will dramatically fall. In the eyes of many industry insiders, the arrival of the economic recession is not unexpected. First of all, the economic prosperity that has emerged in some countries after the COVID-19 epidemic is Largely a false prosperity brought about by the central bank's aggressive 'water release'. Secondly, the impact of the epidemic has not dissipated, and the Russia-Ukraine war has not seen any signs of easing. Although the Fed's aggressive interest rate hikes have curbed inflation, the inhibitory effect on economic growth has become more and more obvious. The external environment we are facing is still very severe and complex. The just-finished Central Economic Work Conference of the Chinese government comprehensively summarized the 2022 economic work, deeply analyzed the current domestic and foreign economic situation, and systematically deployed the 2023 economic work plan. The meeting pointed out that next year's economic work will be complicated. It is necessary to proceed from the overall strategy, improve social psychological expectations and boost development confidence. The meeting also pointed out that it is necessary to strengthen the development of important energy and mineral resources, increase storage and production, accelerate the planning and construction of a new energy system, extend the service life of mines, and continue to promote the intelligent and green production of mining. It will promote high-end, intelligent, and green manufacturing industry, develop intelligent and green manufacturing, also will promote the transformation of production methods to flexible, intelligent, and refined style, and enhance the security of the industrial chain and supply chain.

The times are changing rapidly, and the world has changed because of us. In every era, challenges and opportunities coexist, and those who strive are never afraid. Challenges are the stepping stones for us to climb to the top, and opportunities are the batons for us to run hard. 'Persistence to meet changes, 'We must change to know what is constant.' The experience of past storms will surely fill us with the courage to ride the wind and waves.
Times change faster than ever, and the world difference come from us. In every era, challenges and opportunities coexist. Fighters are never afraid. Challenges are step stones for us to reach pinnacle, and opportunities are the baton for us to run relay race. 'Practice the constant to meet the change, change to know the constant', the experience of going through storms will surely fill us with the courage to ride the wind and waves.

We will continue to uphold the corporate social responsibility, fulfill the corporate mission, adhere to the 'customer-centric' corporate development philosophy, inject vitality into economic development, adhere to long-termism, conduct in-depth research on industry focus and customer pain points, and continue to Technological innovation, continuous improvement of product lines, committed to becoming a loyal partner of every customer, always taking customer needs as our work orientation, and customer satisfaction as our eternal pursuit.
We will continue to uphold the corporate social responsibility, fulfill the corporate mission, adhere to the 'customer-center' culture, instill our vitality into economic development, adhere to long-termism, conduct in-depth research on industry focus and customer pains, continue technological innovation, constantly improve the product performance, and strive to become a loyal partner of every customer, always take customer need as our work orientation, and customer satisfaction as our eternal pursuit.

We will continue to increase investment in scientific research, improve technological innovation capabilities, promote high-end, intelligent, and low-carbon products, conduct in-depth research on different operating scenarios of domestic and foreign mines, promote the large-scale application of battery-powered equipment and intelligent mining, and better Provide customers with systematic and comprehensive solutions.
We will continue to increase investment in scientific research, improve technology innovation capabilities, promote high-end, intelligent, and low-carbon products, conduct in-depth research on different operating scenarios of mining at home and abroad, and promote the large-scale Application of battery powered equipment and intelligent mining, most of all, provide customers with better systematic and comprehensive solutions.

We will pay more attention to working closely with global suppliers, integrate the spirit of win-win cooperation into the global supply chain growth plan, and create a community of interests with all partners.Collaborate with more Chinese suppliers to deeply participate in the research and application of core industrial technologies, strengthen the chain, create a healthy supply chain ecosystem, enhance the basic strength of China's manufacturing industry, and make an era contribution to the development of the country's high-end equipment manufacturing industry.
We will pay more attention to close cooperation with global suppliers, integrate the spirit of win-win cooperation into the global supply chain growth plan, and build a community of mutual interests with all partners. Collaborate with more Chinese suppliers to deeply participate in the research and application of core technologies in the industry, strengthen the chain, create a healthy supply chain ecology, enhance the basic strength of Chinese manufacturing, and make a historical contribution to the development of the country's high-end equipment manufacturing industry.

We will further accelerate the construction of Laixi Industrial Park, realize the two major production bases to go hand in hand, further improve the integrated construction of production, sales, and research, and strengthen product management, project management, design and R&D, process transformation, and material management through continuous iteration of the information system , standardization and integration of production operation management, quality management, and warehousing management, opening up channels for capital flow, logistics, and information flow, and realizing the 'three flows into one' within the company.
We will further accelerate the construction of Laixi Industrial Park, facilitate simultaneous development of the two production bases, further improve the integration of production, sales and research, and strengthen product management, project management, design and development, engineering transformation, and material management through continuous iteration of the information system, production operation management, quality management, warehouse management standardization and integrated construction, connect channels of capital flow, logistics flow and information flow, a real 'three streams in one' within the company.

Struggle is the eternal theme of strivers. If we were to find one word to describe China's 5,000-year culture, it might be 'endless struggle.' The core of the national spirit has always run through the entire history.As heaven moves forward, a gentleman strives for self-improvement. We firmly believe that struggle changes everything. This is also the vitality of Chinese society.With strivers as the foundation, winning through execution, pragmatism and innovation, we will continue to build a learning organization, cultivate a proactive learning culture, stimulate organizational vitality and help enterprises develop with high quality.
Fighting is the eternal theme of fighters. If you use a word to describe China's 5,000-year-old culture, perhaps the core of the national spirit of 'endless fighting' runs through the entire history. Like heaven runs resiliently with power all the time, a man should do the same. We firmly believe that hard work changes everything, and this is where the vitality of Chinese society lies. Based on hard work, winning in execution, pragmatic innovation, continue to build a learning organization, cultivate a positive learning culture, stimulate organizational vitality, and help enterprises develop high-quality.

'From spring to new', every spring is brand new. The end of 2022 will usher in the end of the 'COVID-19' pandemic. Our city is gradually recovering, and our work and life are changing after the baptism. , will regain vitality and a new year with new atmosphere is coming.Wherever there is light, there is hope. Let us welcome the morning glow and sunshine of the New Year and pursue our Zhonghong dream with confident and light steps.
'One new spring, one new year.' At the end of 2022 we see the end of three-year long pandemic, our city is gradually recovering, and our work and life will be revived after the suffering, the New Year with a new atmosphere is coming. Wherever there is light, there is hope. Let us welcome the dawn and sunshine of the new year, and take confident and light steps to pursue our Fambition dream.

Finally, I wish our customers, suppliers, partners, friends, colleagues and all partners who support Zhonghong’s development that their dreams will come true and everything goes smoothly in the new year!
Finally, wishing all the best to our customers, suppliers, partners, friends, colleagues, including those who're giving us unseen support.

Happy New Year!Happy New Year!

Susan Ma
2023, New Year’s Day