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New Year's Speech by Qiu Jianmin, Chairman of DEREN Electronics

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All colleagues of DEREN Electronics,

Hello, everyone!

Say goodbye to the old year with laughter and joy, and welcome the New Year with joy and peace. Time is running out, and we are about to usher in the Spring Festival in 2021. On behalf of DEREN Electronics, I would like to extend my heartfelt thanks and wishes for the Spring Festival to all the employees who have defended hardships and worked hard for a year, and to DEREN colleagues who still stick to their jobs and production lines during the festival.

Looking back on 2020, "anti-epidemic" has become the main theme of the world. Facing the sudden epidemic in novel coronavirus pneumonia, DEREN Electronics responded quickly, actively responded to the central decision-making and provincial & municipal deployment arrangements, gave full play to its own advantages, and actively participated in the defense of battle of epidemic prevention and control and resumption of work and production. Subsidiaries around the country strictly implemented various epidemic prevention and control work, successfully achieved "zero infection and zero suspicion", and witnessed greatness in the ordinary. In 2020, we are all brave anti-epidemic people.

The past 2020 is a surging year in the development of the company, and is also a year in which we actively overcome difficulties and continuously achieve new achievements. Under the severe impact of epidemic situation at home and abroad and the pressure of economic situation, we did not flinch, and all employees actively coordinate internal and external resources closely around the company's strategy and the overall annual production and operation objectives, actively adapt to market changes, timely adjust production plans reasonably according to order volume and production capacity, adhere to the service tenet of "use our efforts to ensure the success of customers", and always adhere to coexistence and win-win with customers, partners, employees and society. While ensuring market share and order delivery, we paid close attention to management, effectively integrated the company's assets, concentrated resources to promote the steady upward movement of major industries, and ensure the sustainable and healthy development of the company.

To take stock of all business units, first of all, I would like to thank all DEREN people for their hard work spirit of daring to break through, surpass, try and venture. It is you who have overcome the thorns in 2020 with hard work and achieved remarkable results.

1. Liuzhou Shuangfei concentrates on management, demands benefits from management, and focuses on improving production lines and production efficiency. It set up a special inventory team to tap the potential, reduce inventory and effectively improve inventory turnover rate.

2. With its consistent and rigorous working attitude, KSD has exceeded customer expectations in terms of delivery, quality and cost, and has won the title of "Excellent Supplier" of FAW-Volkswagen and Volvo Asia Pacific for 2 consecutive years.

3. META Chongqing Factory overfulfilled its daily production plan during the epidemic, and its production capacity reached a new high before recovery. In March, it produced 30,000 OBC units in a single month. The Italian factory successfully realized the mass production of J1 project and MINI project, and obtained OBC designation from many high-end customers in Europe.

4. The sales and net profit of Qingdao, Hefei, Chongqing and Wuhan continued to grow. Among them, Qingdao DEREN withstood the pressure of epidemic situation and met the urgent needs of customers. When other major suppliers had serious supply problems, they actively shared the quota, increased the supply ratio, and simultaneously promoted the localization of materials. Haier refrigerator connectors were domestically replaced by imports, greatly reducing costs. With its outstanding performance, Qingdao DEREN won the honorary titles of "Haier's Best Hugely-Popular GEA Contribution Supplier", "Haier's Best Cooperation Award for Water Networking" and "Excellent Supplier" of Hisense Household Appliance Group.

5. Under the epidemic situation and the difficulty of transferring factories to Heshan for recruitment, the annual sales of BLD exceeded the standard. It is worth congratulating that BLD entered the Weichai Power Product Research and Development Community and obtained the qualification of synchronous design and development.

6. Guangxue still maintained its original turnover under the impact of the epidemic. Relying on continuous innovation and R&D capabilities, it has maintained high-frequency upgrading of products and expanded market fields such as vehicle brackets, infrared sensing and optocouplers.

7. After years of in-depth research and development, FFC power battery special acquisition line products have core independent intellectual property rights, independently completed the development of full-automatic process production lines, thoroughly solved the traditional FPC etching process and environmental protection problems, greatly reduced the application cost, and led the innovation of power battery signal acquisition technology.

Benefiting from the forward-looking prediction and accurate grasp of the industry by the company's leadership, as well as the hard work of all colleagues in the Company, DEREN Electronics has laid an incomparably solid foundation stone. With its product advantages, leading technology and deep experience accumulated through years of deep market cultivation, the Company has won the recognition and strong support of many first-line brands at home and abroad and has become its core supplier. Affected by the epidemic, in 2020, the overall performance of the Company did not reach the growth target set at the beginning of the year. However, I firmly believe that relying on the company's good industry prospects, high-quality products, high-quality customers and market share, as long as we work with one heart and mind, unite as one, and continue to carry forward the spirit of "working hard with one heart, the more dangers we encounter, the harder should we push forward". Yesterday's setbacks will surely become the more brilliant foundation for tomorrow.

The epidemic situation at home and abroad in 2021 is still grim, and the downward pressure on the economy is increasing. We should clearly recognize the difficulties that may be encountered in the future, prepare for a rainy day, make full preparations, pay attention to and continuously improve the operation system, actively promote management innovation, strengthen the management of investor relations by strengthening the internal management and risk control of the company, and enhance the influence and competitiveness of the enterprise.

Winter is inevitable in life. "No weal without woe". We should face it calmly and dare to challenge, discover the opportunities contained in the heavy fog in time, seize it and make use of it. Challenges and opportunities coexist while opportunities outweigh challenges. "Stepping down the rough road, fighting the hardships and starting again", on the way forward, it is necessary for all people to work together, work hard and work together!

To welcome 2021, we are full of expectation and forge ahead!

Finally, on the occasion of the Spring Festival, I sincerely wish all friends, DEREN colleagues and their families good health, career progress and family happiness in the New Year!