Speech at the 44th General Meeting of Shareholders and the 2022 Work Summary Meeting

In times of crisis, one must possess wisdom.

In 2011 and 2012, Chuan Dong seized excellent opportunities and achieved the best results in its history, laying the foundation for the company's development. In general terms, the development of any industry follows a wave-like pattern. For our enterprise to grow, it must seize opportunities when they are favorable and gain benefits; when the situation is unfavorable, it should hold its ground and stabilize the situation, waiting for better opportunities.

After a period of rapid development, there will inevitably be a period of adjustment. In the new year, everyone should keep their minds clear and understand the current situation.

From the outside, the pandemic sweeping across the globe and the Russia-Ukraine war have had a significant impact on the international economy. Although the pandemic has now entered the recovery phase, the international economy is still contracting. Internally, the demand in numerous industries such as catering and hotels has declined. Our phosphate industry, as a part of the overall economy, is facing the same problems - declining demand, falling prices, and reduced profits. Businesses find it difficult to operate and those lacking sufficient strength will "die out". We must have the confidence to achieve "rise again tomorrow and still see the sun", and we cannot collapse during difficult times!

This year marks the beginning of a shift in our approach. The more pronounced the market changes, the more we need to adapt to the market. Beyond achieving the basic goals, we must surpass last year's performance. Some say it's impossible. During such a difficult period, setting such high goals is said to be challenging. But I say this is the only way forward. Based on our evaluations of various departments of the group company and the enthusiasm and sense of responsibility of the employees, I believe there is hope. I have faith in all of you.

Two key points: quality and cost

This year's business development has two key points.

The first aspect is quality. During a downturn in the market, quality must not be compromised. This is the most fundamental prerequisite. It relies on our five major production bases, our technicians and managers. Every step of the management process is meticulously controlled, one step following another. It requires the collaboration of relevant departments within the company to ensure product quality. Although Chuan Dong has a good reputation in the industry, the path of customized and stable quality still needs to be continued.

The second aspect is cost. Cost control is essential for survival. In the corporate culture, there is a saying: "Survive by quality, achieve efficiency through management." This is directly related to whether everyone has food to eat and whether they can have enough to eat. If you want to see the sun in the morning, you must have enough food, and you cannot go hungry.

1、Base management is highly refined. Especially in the production process, efforts should be made to minimize processing costs and maximize production capacity.

2、Detailed management of raw material procurement. The qualifications of the personnel handling the process need to be improved. Even a single piece of paper should be carefully considered. Thorough planning and meticulous calculation should be employed to reduce the cost of raw materials.

3、Establish a transportation and logistics center as soon as possible. Strengthen management and reduce costs at each stage. This is also a very important measure to maintain the basic benefits this year.

In management, one must learn to extend: The group company should go to the base, the base manager should go to the workshop, the workshop director should go to the team leader, the team leader should go to the individual positions. Extending forward is not a lack of trust in subordinates; rather, it is a demonstration of responsibility. By minimizing mistakes and maximizing efficiency, we can ensure that the quality and cost achieved at the previous stage are effectively implemented.

In the past, the focus in Chuan Dong has been on pragmatism and innovation. This is our working philosophy. Currently, opportunities come and go quickly. It all depends on who can react faster. I believe we can be the first to spot them and act. Because we have the Chuan Dong spirit. Currently, the operational force configuration in Chuan Dong is in place. We should not be content with the achievements we made last year. These are all in the past. Everything must start anew. I hope everyone can really focus on their work in the new year, improve work efficiency and enhance work enthusiasm. By the end of this year, we will surely achieve a great success.