All colleagues:

2023 is a watershed year for the collision and changes in global political and economic forms. Due to the shrinking global market, companies are focusing on the domestic market, especially the operator market. We have entered the most fiercely competitive market hinterland. The drastic changes in the domestic and international environment have brought us challenges and pressures, while also representing enormous opportunities. 2023 is also a year of significant internal management adjustments for the company, with the aim of implementing cost reduction and efficiency improvement, enhancing competitiveness, adapting to external pressures and challenges, and building a sustainable development foundation for the future. The core business department needs to focus on the future, adhere to profit as the center, and be based on survival; To continuously improve the cost-effectiveness and competitiveness, significant adjustments need to be made in organizational structure and development philosophy.

In 2024, the domestic market demand will continue to rise, as can be seen from the demand for home wide terminal procurement by the three major operators (China Mobile 80 million units, China Unicom 30 million units, China Telecom 50 million units), as well as the space for terminal products such as routers and set-top boxes in the government and enterprise markets. In terms of product planning, we have introduced wireless terminal products, satellite terminal products (CPE, Tiantongmao), etc., and officially established the Youhua Communication Aerospace Product Line, committed to showcasing to customers the side of Youhua's enthusiasm for glory, continuous breaking of product barriers, and pursuit of innovation and creativity. Actively responding to the call of the Party, adhering to the forefront of world science and technology, the main battlefield of the economy, major national needs, and people's health, accelerating the realization of high-level technological self-reliance and self-improvement, and insisting that innovation is the primary driving force for leading enterprise development.

In 2024, the company will conduct a comprehensive supply chain organizational adjustment around its main product line, focusing on improving its supply chain competitiveness from this year to the next three years. In the future competition of the supply chain, only by establishing a strong sense of cost, excellent product quality, and responsive services can we survive. Hardship and hardship lead to success "," Be prepared for danger in times of peace, and refrain from extravagance and frugality ". A nation without the support of the spirit of hard work and struggle is difficult to be independent and self reliant; An enterprise without the support of the spirit of hard work and struggle is difficult to develop and progress. Youhua has no external resources to rely on, only through the hard work and continuous struggle of all employees, constantly eliminating things that affect our internal vitality and innovation, can we survive in fierce competition.

In 2024, we will continue to increase our efforts to explore overseas markets. Youhua actively responds to the national call for excellent enterprises to "bring in and go out". This year, we have been active in overseas markets and actively participated in internationally influential communication exhibitions such as WBBA Barcelona Broadband Development Conference and ATSG Singapore International Communication Exhibition; Be brave to showcase the Youhua brand to overseas customers and gradually build Youhua's domestic and international marketing system.

In 2024, we must adhere to customer-oriented and demand-oriented approaches, and steadily advance towards the target market; In 2024, we will continuously enhance our creativity and competitiveness, and humbly learn from our competitors. "Get rid of the bad and take the essence", "There is a limit to my life and there is no limit to my knowledge", we should have the attitude of lifelong learning, be open and enterprising, and never give up; In 2024, we need to have a high-level operational mechanism and command capability, form the concept of profit to output ratio, and firmly follow the company's footsteps, with consistent steps, communication, and coordination; In 2024, we must resolutely abandon the practice of "fighting alone", and the three major business departments should work together to link up, steadily follow the product route, and be brave enough to leverage their advantageous markets.

Finally, I would like to express my gratitude to the operator customers, research institutes, and their subsidiaries who have always trusted and supported Youhua. They have always believed in and chosen Youhua in the constantly changing market, and have firmly stood with Youhua; Thank you to the supply chain strategic partners who have been accompanying Youhua's growth, and have spared no effort in supporting Youhua's development in the supply of various key components!

Thank you to the frontline partners who have long obeyed the company's deployment, actively expanded the market, and maintained customers; Thank you to the R&D partners who have been working hard in the backend of the company for a long time, insisting on the reliability and stability of the company's products; Thank you to the supply chain team partners who have been communicating with our long-term partners and working hard to reduce costs for the company; Thank you to the backend support team partners who have been working silently for a long time to ensure the operation of the company; Thank you to the partners who have made significant contributions to the development of the company along the way. Thank you to all the employees' families who have been silently supporting and contributing behind their backs!

Ten years of hard work, building dreams and sailing far away. Youhua Communication will carry everyone's expectations and blessings, fully leverage the advantages of the company's industrial portfolio, and achieve high-quality growth; Continue to improve and optimize cadre management policies, strengthen the assessment and training of cadres, and promote the innovative development of the company.

Fire tests true gold, adversity breeds strength. It is precisely because the future is full of hope that our driving force for progress is even more surging and enduring; It is precisely because the road is difficult and rugged that the struggles of each and every one of us are more valuable and meaningful. Although the road is far, the journey is approaching; Although things are difficult, they must be done. The wind breaks through the waves at the right time, hanging the cloud sail straight towards the future. In the new year, all colleagues should join hands, with high morale and unwavering determination, work hard and unite to move forward bravely for a better tomorrow.

Wishing everyone a happy New Year!

Shenzhen Youhua Technology Co., Ltd.

January 1, 2024