As 2020 comes to an end, it's time to reflect and look to the future. First of all, on behalf of YOFC, I wish all of friends who have been with us every step of the way through our growth a happy new year! I would also like to take this opportunity to thank each YOFC staff as well as the families who have gone above and beyond in the past year to make our journey easier.

2020 was a tough year with new and unprecedented challenges posed by the global pandemic and changing landscape. However, it was not all gloom and doom. Amidst the clouds hanging over the world, China took the lead to bound back to positive growth thanks to its excellent response to COVID-19. YOFC was proud to be part of the recovery process by bringing production and business back on track as one of the first reopening enterprises in Wuhan. To echo China's national strategy of dual circulation development pattern, in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement, YOFC committed to relevant diversification and internationalization strategies to break new ground in both domestic and international markets. As a result, YOFC rebounded to growth in 2020 Q2 with a positive growth in the first half of the year compared to the same period of last year. In particular, overseas telecom EPC stood out as it was doing well with revenue climbing over 500% year-on-year.

YOFC wrapped up the past five years with many important milestones and got off to a good start for the next five years. The end of the year 2020 is a great time for us to look back and reflect on what we have gone through. In 2016, YOFC's sales volume of optical fibre preforms, fibres and cables reached world No.1, four years ahead of our schedule. In 2017, YOFC won China Quality Award and the second prize of National Science and Technology Progress Award. In 2018, YOFC was listed on the main board of Shanghai Stock Exchange as the only A&H dual-listed company in China's optical fibre and cable industry and Hubei province. In the same year, YOFC was recognized by EFQM Global Excellence Award 2018, one of the three world major quality awards, making it the first Chinese winner. The second prize of National Science and Technology Progress Award went to YOFC again in 2018, indicating that YOFC became the only laureate for three times among its industry peers. In 2019, we established the 1st Second-Level Node of Identification and Resolution of Industrial Internet in China's optical communication industry, extending its presence in 5G+industrial Internet in advance, and enabling manufacturing industry to transform with more efficient data interconnection. In 2020, we issued 2020 corporate bonds (Phase I) for institutional investors, rated as "AAA" for the subject credit rating and bond credit rating by two authoritative rating agencies, namely, China Chengxin International Credit Rating and United Ratings, with the outlook of "stable".

A new round of technological revolution and industrial transformation is in the making now, further driving the rapid growth of digital technologies. When we look at domestic market, new infrastructure represented by 5G was a buzzword in 2020 emphasized by Chinese government. As the new trend was gaining significant traction, 2020 witnessed over 700,000 newly built 5G base stations, more than 180 million 5G terminal connections and the largest-scale commercialization of 5G SA network. 5G era is already upon us. Digital economy has become a core growth source for China's economy, thus generating enormous data demand. By the end of 2020, over 3 million data center cabinets were in place in China and the industrial internet kept booming. All of these manifest that China has come a long way and will forge into new frontiers in the communications industry.

As we are heading into the next year, we become more resilient and will build on what YOFC has achieved to stay focused on the mission of Smart Link Better Life. We will capitalize on the new opportunities presented by information revolution, new infrastructure, 5G+ Industrial Internet etc., to take YOFC to a higher level by fostering new growth drivers and pursuing high-quality development. By doing so, we're building momentum for a more thriving and higher-quality YOFC with can-do spirit.

Thank you again for your support and wish you and your family a prosperous and healthy New Year.

Regards,

Zhuang Dan

Executive Director and President, YOFC