In 2026, move forward towards the new and dance with AI

Dear partners of Dajinhai:

Did you have a good time in 2025? Was it in a hurry, rolling and crawling? Or is it better to be at ease and swim 刅? In fact, whether it was good or not, it's all in the past! Happy New Year, everyone!

When the morning light of 2026 pierces through the fog of industry transformation, with the firmness of "moving towards the new" and the enthusiasm of "dancing with AI", we stand at the brand-new starting point of Jinhai's 27-year journey!

This is no ordinary bid farewell to the old and welcome the new - it is a "breakthrough battle" for Jinhai to break free from the homogenized internal competition and embrace value growth. It is a "breakthrough journey" of the symbiotic coexistence of humans and technology and the rewriting of industry rules through innovation! At this moment, we extend our warmest New Year greetings and most sincere gratitude to every member of the Jinhai family who has spared no effort, every partner who has shared weal and woe with us, and every friend from all walks of life who has provided strong support!

In 2025, all of our staff will focus on the strategic orientation of "returning to zero and moving forward, accumulating strength for growth", with the business theme of "Renewal and Restart - Year of Intelligent Innovation". Undaunted by the trough, we will open up a new situation in intelligent manufacturing and lay a solid foundation for high-quality development through hard work!

This year, Hongyi's 18-roll cold continuous rolling production line was grandly launched and successfully reached full production capacity, setting a new industry efficiency benchmark.

This year, the titles of "Guangxi Chain Leader", "Guangxi Intelligent Manufacturing Benchmark", and "Three-star Certification for Digital Transformation by the Ministry of Industry and Information Technology" have become increasingly prominent.

This year, we were shortlisted for the "National Quality Benchmark Typical Experience List", and our brand strategy began to show its potential.

This year, we ranked 9th among the "Top 100 Private Manufacturing Enterprises in Guangxi" and 11th among the "Top 100 Private Enterprises in Guangxi", once again recognizing our solid strength.

This year, we have achieved in-depth coverage of the entire industrial chain, forming a dual cluster of "Wuzhou Jinhai (short-process smelting + basic processing) + Guangxi Hongyi New Materials (high-end deep processing)". We have achieved a balance between capacity clusterization and scale and flexibility, building a solid moat of cost and capacity.

This year, we achieved a key leap from "manufacturing to intelligent manufacturing" with "hardcore equipment + digital systems". Through "introducing high-end equipment + building customized digital systems", we have formed technical barriers in production efficiency, product precision and operating costs, and many technical indicators have reached the leading level in the industry.

This year, the full life cycle digital system of "end-to-end digital link" customized and built by us in collaboration with industry leaders has achieved initial success, marking a solid step forward in digital and intelligent transformation.

This year, we have made high-intensity environmental protection investments, launching ultra-low emission projects and waste heat power generation projects. From "environmental compliance" to "resource value-added", the green production feature has become increasingly prominent.

This year, our products have achieved "full coverage and high-end breakthroughs" in the market, precisely matching diverse demands. Based on the Jinhai BA board, the 2B grade high-end stainless steel board has been launched, providing customers with a flexible, worry-free and win-win cooperation experience.

This year, we have built a talent system that is "retained and capable of growth", with the stability of the core team reaching 90%. We have continuously invigorated the organization with the three major cultures of "campus culture, military culture, and home culture". By 2025, employees will voluntarily propose 230 technical improvement suggestions, with a implementation rate of 70%, generating over 10 million yuan in revenue.

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This weighty achievement is neither an accidental favor of The Times, but rather a development opportunity bestowed by the great era to serve the country through industry. It is not an isolated policy dividend, but a powerful testament to the government's protection of the real economy. It is not an accidental favor from technology, but rather the fruit of the hard work of every Jinhai employee who "regards the factory as their home and dares to tackle tough problems". It is not an unexpected gift from luck, but a united testimony of partners' "trust and entrustment, charging forward side by side"!

The accumulation of past hard work has made our direction for moving forward clearer. In line with the group's strategic orientation of "Moving towards Innovation and dancing with AI", through the collection and discussion of thematic opinions by various departments, we have set the business theme for Jinhai in 2026 as "Integration for Innovation • Intelligent Innovation Efficiency Year".

I. Theme Interpretation

Integration for Innovation: Integrating data and platforms, cross-border collaboration to address shortcomings and promote industrial integration; Break through the new track of differentiation, innovation and digitalization, amplify the advantages of Jinhai, drive the development of specialized, refined, distinctive and innovative enterprises with technological innovation, build an business structure of "data empowerment and quality and efficiency priority", break the internal competition and compete for quality and efficiency with new quality productivity, all employees are engaged, and efficiency is implanted into the enterprise's DNA.

Intelligent Innovation Efficiency: Transitioning from the AI cognition stage to the AI practical application stage, we are fully committed to building the "Jinhai Intelligent Body" to enhance product added value, industrial competitiveness, and ecological benefits. By controlling costs and increasing production capacity throughout the entire industrial chain, enhancing efficiency with technology and digitalization, breaking industry biases through green innovation, seizing dividends by leveraging models and locations, building an irreplaceable industrial ecosystem, achieving collaboration between humans and AI, and symbiosis between teams and technology, making technology warm and growth powerful, and promoting the transformation of enterprises from "stainless steel manufacturers" to "high-quality service providers for the stainless steel industry" Ultimately, achieve a symbiotic and mutually beneficial win-win situation for the enterprise, employees, customers and the market.

Ii. Business Strategy

1. Consolidate cultural foundations and strengthen talent development

Adhere to the three core cultures of "campus culture, military culture and home culture", and promote the professionalization goal of "high-paying, high-skilled and high-quality talents". We will carry out regular skills training, deepen the selection activities of "Jinhai Craftsmen", and continue to hold heartwarming events such as birthday parties, sports meets, media convergence creation competitions, respecting the elderly and caring for the young, educational assistance, poverty alleviation and assistance, and blood donation. We aim to enable those with aspirations to soar and achieve win-win results with those who share the same path.

2. Optimize product layout and balance scale and profit

The product end implements "full series coverage + high-end breakthrough" : With Jinhai 2E/BA boards and Hongyi 2B high-end boards as the core, it covers all scenarios from civilian to industrial, matches diverse demands, and implements the production capacity strategy of "maintaining scale with general products and increasing profits with high-end products".

3. Build a smart brain and deepen the practical application of AI

Build the "computing power + data + model" Jinhai Smart Industrial Brain, improve the "Jinhai Intelligent Body", and empower business decision-making with a dual-track model of "human-led and AI-empowered"

• Production end: AI intelligent early warning equipment for potential hazards and dynamic scheduling of production capacity resources help increase workshop production efficiency by another 10%.

• Procurement end: AI accurately predicts market demand and intelligently matches high-quality suppliers, significantly enhancing inventory turnover efficiency.

• Quality end: AI tracks the root cause of problems throughout the process and conducts in-depth analysis of production data, ensuring that every piece of Jinhai board can stand up to the most rigorous inspection.

• Management end: AI global precise budgeting, replacing "blind compression" with "precise control", and responding to market uncertainty with the certainty of capabilities;

• Daily work: AI becomes a considerate "efficiency assistant", helping us avoid detours, focus on the core, and create greater value.

4. Focus on scientific and technological innovation to drive all-round upgrades

Taking technological progress as the core growth driver and practicing the principle that "innovation is the primary productive force" :

• Product Innovation: Focusing on the 2B board of Hongyi, we create customized high-end new products and set a benchmark for high-end quality of "Jinhai Made".

• Supply chain innovation: Build a highly resilient system of "dual-source supply + green grading", adhere to direct factory procurement and centralized procurement of bulk commodities, resolutely eliminate non-compliant enterprises, and ensure that every link in the chain can stand the test of the market and risks.

• Service Innovation: Tailor an integrated solution of "production coordination + intelligent logistics + full-cycle after-sales service" for high-end customers, enabling cooperation to go beyond a simple buyer-seller relationship and move towards a deeply bound win-win ecosystem.

• Business innovation: On the technology side, we will open up the "industry-university-research-application" channel to promote the transformation of achievements. On the institutional side, we will optimize rules and reshape processes to create an innovative atmosphere. On the industrial side, we will deeply advance intelligent transformation to improve quality and efficiency, and cultivate strategic upgrades in the entire chain and operation.

5. Relying on geographical advantages and taking advantage of industrial dividends

With the "Guangdong headquarters + Guangxi base" as the core, we will promote the "Guangdong-Guangdong linkage + port layout", strengthen regional radiation power with low logistics costs, and precisely receive the dividends of industrial transfer.

6. Adhere to green development and fulfill corporate responsibility

Improve the safety, environmental protection and green management system, implement the responsibility of "green factory", and strengthen the attribute of "specialized, refined, distinctive and innovative". Adhere to ultra-low emissions, strictly control environmental protection indicators, transform green from a "cost item" into a "competitiveness item", and form a positive closed loop of "environmental protection → resource recycling → benefit improvement". Let the development of Jinhai not only demonstrate benefits but also demonstrate responsibility.

The blueprint has been drawn and the path is clear. The implementation of every strategy cannot be achieved without the hard work and responsibility of every Jinhai employee. Let's move forward side by side and embark on a new journey together.

Hey, friends! The journey towards a new path and dancing with AI may be full of thorns and challenges. But if we can build the "Hongyi New Project" by 2025 and make it a growth engine by 2026, we are fully confident! Because we, the people of Jinhai, have long learned: to create certainty in uncertainty, to seek opportunities in crises, to create miracles in challenges, and to accumulate strength through perseverance! When we broaden our ecosystem, deepen digitalization and intelligence, and refine quality, and when we still carry the down-to-earth drive to get involved, the determination to break through with a life-and-death struggle, and the warmth of mutual support, Jinhai in 2026 will surely move from the stage of "accumulating strength for growth" to a new journey of "leading the industry".

In 2026, don't be lost in the vicious competition, and don't sink into despair by lying flat! The end of the "involution" lies in creating differences and moving towards novelty. This is the direction for us to break through the deadlock and also the posture of growth!

In 2026, we must focus on ourselves, choose the right track within one meter, lay a solid foundation at ten thousand meters deep, persist in change, and keep transforming!

In 2026, we should regard AI as a partner walking side by side, use AI to correct mismatches, retrieve matches, take data as a key production factor, deeply integrate it with technology, capital and people, and reshape the production function!

In 2026, we will optimize the existing stock and innovate the new increment. We will reduce costs and increase efficiency through data and activate the new increment through innovation!

In 2026, the channel end should be determined by efficiency to win or lose, the product end by innovation-driven growth, and the operation end by management and control to decide profits and losses!

In 2026, we will not be the "followers" who follow the trend blindly, but the "pioneers" who pioneer and innovate!

In 2026, there's no need for grand words. Action is the best way to break through. Grow new skills and achieve new growth!

In 2026, the first year of the 15th Five-Year Plan, take a rash start, forge ahead, and just go for it! Let's head towards the next spring of blooming flowers together and jointly write a new glorious chapter of high-quality development in the stainless steel industry!

Let's encourage each other, Sister Juan

On New Year's Eve 2026