Dear leaders at all levels, colleagues in society, users, colleagues, and family members:

Hello everyone!

Time series rotation, bidding farewell to the old and welcoming the new! On the occasion of the Chinese New Year holiday, Shandong Huida Vermilion Equipment Co., Ltd. sincerely wishes to all levels of leaders, social colleagues, users, colleagues, and family members who care about and support the restructuring and growth of the enterprise. Sincere thanks! Wishing everyone a prosperous new year: eyebrows and eyes, and peaceful times!

Looking back at 2023, we must respond accordingly, accumulate knowledge and make progress! All employees of the company have bravely moved forward and fulfilled their responsibilities in the face of challenges and difficulties. Institutional integration, product ordering, technical processes, and QHSE management have steadily advanced, achieving gratifying results: Huida Vermilion has been identified as the operating entity, strengthened management, and made progress. The expected completion of production and operation tasks has been achieved, and the market development performance has reached a new high; Develop various rules and regulations, implement flat and standardized management, and drive business development with technological strength; Establish a technology research and development center, implement the management of technical leaders such as chief experts and responsible engineers, and improve the level of technology research and development and product processes; Organize a paper collection activity for technical personnel, initiate laboratory construction, and develop implementation and equipment configuration plans; Introducing concepts, implementing responsibilities, revising the HSE management system, reducing body weight, promoting internal and external education, and improving the quality of management personnel; Top level design, cohesion, resonance among departments, efficient collaboration, balanced management, and craftsmanship leadership. The company is listed as a national technology-based small and medium-sized enterprise; Apply for the second batch of digital economy morning star factories; Apply for the 9th Shandong Governor's Quality Award; Participated in the 4th Qilu Cup Industrial Design Competition and the 12th China Innovation and Entrepreneurship Competition; Approval of high-end wheel hub precision machining project for heavy-duty trucks; Approved 5 lightweight material engineering research center and utility model patents in Zibo City, with 10 patents under approval; Special government funding investment plan for central pollution control and energy conservation and carbon reduction for the recycling, dismantling, and utilization of scrapped motor vehicles; Participate in the demand collection for the application scenario of "Gongfu Shandong"; The product "LWMD wheel mounted brake disc for railway heavy-duty trucks" won the "Gold Award for High Quality Castings" and "Seven meter Coke Oven Protection Plate" at the 20th China International Casting Expo and the "Gold Award for High Quality Castings" at the 21st China International Casting Expo.

A rabbit leaps over a thousand mountains with abundant financial resources, while a dragon soars across the sea with prosperous business. Journey of thousands of miles, soaring clouds, and striving to compose a new chapter!

In 2024, we will continue to lead by party building, move forward steadily, and strive for progress steadily: improve the corporate governance structure, build the group organizational structure, carry out shareholding reform of Huida, establish the first board of directors, implement the general manager responsibility system under the leadership of the board of directors, and use assets as a link to streamline the equity structure of each company and determine the affiliation relationship; Handle the legacy issues of restructuring, land and property integrity issues, and restore financing functions; Streamline and optimize management personnel at all levels, improve management efficiency, and examine and optimize functional departments, product structure, and organizational structure in accordance with the principles of streamlining and efficiency, as well as the requirements for organizational flattening, professional management, and smooth coordination. Based on the company's product line planning and listing requirements, focus on Huida, Hengchang, and Hongsheng, equip professional management teams, and coordinate development; Establish profit centers and cost centers based on existing main businesses and products, and cultivate new profit centers for high-tech projects with promising development prospects; The non-standard parts profit center includes the original coking furnace's three major components, mechanical bed bodies, and other large non-standard products. The standard parts profit center includes brake disc series products, special vehicle brake hubs, power axles and engine cylinder blocks, cylinder heads, etc; Design three production lines, namely a non-standard production line for large components with coking furnace as the core product, an automated production line for engine cylinder and cylinder head as the core product, and a fully automated production line for brake disc series products; The Hengchang Forging Product Profit Center includes wind power flanges and circular forgings, while the Hongsheng Machinery Processing Profit Center includes riveting, steel structures, and mechanical processing; Strengthening internal management and reengineering management processes; Carry out two technical renovation projects and form three dedicated production lines for the casting plate.

Don't listen to the sound of rustling leaves through the forest, why not let the wind and rain pass by. Without asking about the many dangers and obstacles ahead, bravely venture through the mountains of Guanshan. Our listing goal is to determine the benchmark date for stock reform, streamline financial accounts and legal barriers for the company, complete the first round of financing before listing, and strive to achieve listing by 2025. Chasing the wind and chasing the moon, don't stop. The peaceful land is filled with spring mountains. The previous achievements were achieved precisely because of the persistent efforts of all employees, which is our confidence in overcoming difficulties. Looking ahead to the future, setbacks and pressure are just a hurdle on the way forward. We will work together to improve our team collaboration ability, constantly innovate and forge ahead, and write a new chapter for the company's development.

Wishing everyone a happy New Year and an auspicious Dragon Year! Work goes smoothly! Family happiness!

                                                                                                                                                          Shandong Huida Vermilion Ink Equipment Co., Ltd

                                                                                                                                                                             February 7, 2024