Leading the Culture and Sports Industry Spreading Good Happiness

Dafeng Industry, Listed on Shanghai Main Board

CHAIRMAN'S SPEECH

— Chairman: Hua Feng

Dear friends and colleagues,

Good afternoon, everyone!

Time flies, soon we ushered in the New Year. Today, we are happily gathered together to hold the 2020 Dafeng New Year Reunion, talk about the past and plan for the future. On behalf of the company, I would like to express my heartfelt thanks to all the friends who care about and support the development of Dafeng. I would like to express my heartfelt thanks to all the Dafeng people who have worked hard intelligently, and extend my warmest congratulations to all the Dafeng people who have won the awards!

2019 is a year for Dafeng to "do yourself well and be successful one day". It is also a year for Dafeng to optimize its structure, upgrade its files and deepen its management. In 2019, global economic risks are mounting and domestic economic growth is sluggish. In the face of the severe market environment, Dafeng people keep the mission in mind, work hard and have made a series of gratifying achievements.

In 2019, Dafeng became the first batch of "National Demonstration Base for the Integration of Culture and Science and Technology" and the first "National Industrial Design Center" in the performing arts equipment industry. We take the lead in undertaking key projects of the national key RESEARCH and development plan during the 13th Five-Year Plan period. Our ingenious Zhejiang "Chao Yong Zhi Jiang" float is dedicated to National Day's 70th anniversary. We won the bid for the Hangzhou Olympic Sports Center Stadium project, and contributed to the world Military Games and other major national cultural and sports events. In 2019, Dafeng set up the Committee of the CPC Zhejiang Dafeng Industrial Co., LTD, inspiring party members to play a pioneering and exemplary role in the development of the company. In 2019, the company appeared on CCTV for many times and successfully displayed the fengcai of Dafeng Enterprise. As a leading enterprise in the domestic industry, the company participated in China Import Expo and Yangtze River Delta Cultural Expo and delivered keynote speeches, which enhanced the popularity and reputation of dafeng brand. Rail transit company successfully carried out the pilot project of management team shareholding plan, which opened the prelude of comprehensive optimization incentive model. In 2019, Dafeng successfully issued convertible bonds and raised 630 million yuan, which provided sufficient funds for the company's business development and innovation. In 2019, with the joint efforts of the people of Dafeng, the company's overall business performance is steadily rising, the advantageous business continues to maintain the industry-leading, and the new business highlights frequently appear and grow healthily, laying a solid foundation for the company's performance growth and innovation and reform in 2020.

Thanks for the recognition and support of friends from all walks of life and every Dafeng people to make concerted efforts to achieve such a result, I would like to thank you again!

In 2020, focusing on the market and customer needs, we will provide better, more reliable and more valuable products and services to customers through technological, marketing and management innovation.

The year 2020 is a year for China to complete the tough fight against poverty and complete the building of a moderately prosperous society in all respects. It has become an important goal of China's development in the new era for the people to enjoy a rich spiritual and cultural life. Compared with developed countries, China's cultural industry accounts for less than 50% of That of Japan, and sports industry accounts for less than 1/4 of that of the United States, there are still a lot of room to grow. By 2020, China's per capita GDP has exceeded $10,000. The post-90s and post-00s generation have entered the social stage, and they are more yearning for a high-quality life. In 2019, the state issued a series of policies to encourage the development of the new consumption economy of the culture, sports and tourism industry. The accelerated development of national development strategies such as the integration of the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area and the Hainan Free Trade Port indicate more and greater development opportunities for the industry. China is entering a new era of culture, sports and travel consumption economy, which is a historic opportunity for Dafeng and a great opportunity for every Dafeng person to make achievements. In the face of development opportunities, we are full of confidence, but we also need to have a clear understanding and judgment of the industry. Customer demand is changing with each passing day, and new technologies, new formats and new models emerge in the industry one after another. To meet and guide customer demand is the eternal proposition of Dafeng.

These years, Dafeng has made a lot of achievements, the overall development is good. As a result, some of our colleagues have become slack, proud and not as driven as they used to be. They are accustomed to problems, lack the courage and boldness to innovate, and lower their demands on themselves. In 2019, we made progress, but it wasn't significant enough to meet my expectations.

The year of 2000 has been a New Year, and we must carry on Dafeng's successful code of "Revolution and innovation around the market". In 2020, Dafeng will continue to focus on the happiness industry, adhere to the market orientation as well as reform and innovation; optimize the management system, the organizational structure and the allocation of resources to improve efficiency; reform the marketing model and accelerate the construction of younger and knowledge-based team.

Friends and colleagues, the time has come for cultural and sports tourism to flourish! Seize the opportunity, meet the challenge, we will always be together to work hard!

In regard to stage production, Dafeng is the best in the world. Dafeng also wants to provide the best stage for each person with a dream. Where there is a dream, there is a stage!

I sincerely hope that every Dafeng person in the Dafeng stage, adhering to the "Be a sincere person and work steadfastly" core values. Write a new chapter in our career with innovative thinking, practical attitude and oriented goal.

We need to keep going forward because there is still a long way to go. The year 2020 is the first year of our "Dafeng New Starting point". Let's strive for a better and happier life, be more coordinated, more enterprising, more competitive and more innovative!

Finally, I wish you all good health, happiness and good luck in the New Year! Thank you!  



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