NEWS

Work diligently in the morning and be vigilant in the evening, striving for excellence and innovation, uniting efforts to advance and achieve goodness.

On the winter solstice, the sun is born, and the year returns to its rhythm. At this beautiful moment of bidding farewell to the old and welcoming the new, we solemnly hold the "Juxian Graphite 2024 Annual Work Summary and Advanced Commendation Conference" to summarize experiences, pursue excellence, and recognize the advanced, striving for progress. Here, on behalf of the leadership team of Juxian Graphite Group and its subsidiaries, I would like to express my heartfelt gratitude to the employees and their families who work hard in various positions, and to the leaders, cooperative units, and people from all walks of life who care for, support, and help the development of the group’s cause! I extend my sincere greetings!

In 2024, we will continue to strive and forge ahead, having experienced the baptism of wind and rain, overcoming numerous difficulties, and achieving certain results. We must remember the various challenges of 2024 and be filled with firm confidence for 2025.

This year, our steps have been very steady. The key raw materials in the upstream carbon sector remain high, and the operating rate of downstream steel mills is only two-thirds. Although the carbon market basically maintains a balance between production and sales, the low-price bidding for products remains extremely harsh. Additionally, the anti-dumping sanctions from Europe, America, and Japan against China have undoubtedly added to the difficulties, creating significant resistance to the group's operational development and bringing challenging market challenges. In the face of the increasingly severe market situation, I would first like to thank the shareholders of the group for their trust and strong support for Juxian Graphite, and secondly, I would like to thank the leadership teams of the group’s subsidiaries for adhering to the corporate philosophy of "Working together to advance into a new era, leading the dream of a strong carbon nation" in this extremely harsh environment."Working together to advance into a new era, leading the dream of a strong carbon nation" is the corporate philosophy that promotes the spirit of "unity, trust, innovation, and win-win" and leads all employees.Work diligently in the morning and be vigilant in the evening, striving to achieve the stable operation of the group's business development.

This year, our steps have been very determined. We lead with technology, have accurate positioning, innovate, and take practical measures. Without crossing industries, we actively stabilize, strengthen, supplement, and extend the supply chain. We successively established the group company through Juxian, Nuo Jin, San Xian, and He Xin. Through strategic integration and restructuring, the project construction of each subsidiary has been changing rapidly, and the operational development is thriving. The main equipment installation of the calcination workshop of the Juxian forming branch has been completed; the high-rise part of the forming workshop has successfully topped out, and the assembly of the 52MN extrusion machine has been successful; the carbon block workshop of the machining branch has officially started operation, and the photovoltaic system on the roof of the machining workshop has been connected to the grid for power generation; the No. 1 graphitization workshop of Nuo Jin has officially started production, and the main masonry of the No. 2 graphitization workshop has been completed; the production and operation of San Xian and He Xin have made steady progress. The new development pattern of the group company is accelerating its construction, and high-quality development is being deeply implemented. Our "Phase I production capacity of 50,000 tons of carbon products production industrial chain" is progressing day by day.

This year, our steps have been very solid. We focus on maximizing corporate interests and aim for maximizing employee happiness. Through group management, we work together and strive for excellence. We completed the loan matters with banks such as Pudong Development Bank and Jinshan Bank, and promoted the flow of production processes with measures, goals, and plans. We advanced engineering project construction with plans, progress, and milestones; established a centralized procurement e-commerce center to achieve centralized procurement, correct price deviations, reduce material costs, and avoid waste of funds; promoted a process-oriented, standardized, and refined management mechanism to enhance product quality and expand production in various production processes. Notably, the monthly production of the No. 1 graphitization workshop of Nuo Jin has increased from 1,200 tons to 2,500 tons.We optimized the marketing strategy for high-end products in the domestic and international markets to achieve production based on sales and precise services, promoting quality enhancement, distinctive improvement, and business expansion. These achievements embody the hard work and sweat of the Juxian people and demonstrate their extraordinary demeanor and strength.

This year, our steps have been very firm. We adhere to the development concept of "becoming the world's leading manufacturer of carbon products," focusing on management, standards, processes.and innovation. We applied for and passed four invention patents, including "An Automatic Marking Device and Method for Graphite Electrodes"; participated in the revision of four national standards, including "Method for Determining the Elastic Modulus of Carbon Materials," three industry standards, and two group standards; formulated 71 corporate standards, including production processes, product quality, inspection and testing, and equipment regulations; improved the "Employee Management System Manual," "Employee Job Guidelines," and "2025 Production and Operation Outline"; and successfully verified with Sinopec that Jinling needle coke can "produce Φ600mm ultra-high power graphite electrodes." Over the years, the series of new concepts, new ideas, new strategies, and new goals we have proposed, the series of corporate standards, regulations, management methods, and codes of conduct we have issued, and the series of major measures and significant work we have promoted are all about "managing people with systems, managing hearts with culture, managing affairs with processes, and doing things with standards," and "solving every problem, doing every task well, seeking benefits for employees, and seeking development for the enterprise."This year, our steps have been very vibrant. The group company interprets great love for the enterprise with the highest priority on employee belonging and happiness. All employees have written an epic of operation with unity and perseverance. Over the past year, from the market to the enterprise, from the enterprise to the employees, and from the employees to their families, we have all faced difficulties together, showing tenacity and shared responsibility. The hardworking figures in the furnace, the diligent lifting operations, the dedicated service to steel mills, and the continuous construction scenes... we are hand in hand, united in purpose, and have walked through seven springs and autumns together. Along the way, we have weathered storms and overcome obstacles, creating one miracle after another.

This year, our steps have been very spirited. The group company prioritizes employee belonging and happiness, interpreting great love for the enterprise.All employees have written an epic of operation with unity and perseverance. Over the past year, from the market to the enterprise, from the enterprise to the employees, and from the employees to their families, we have all faced difficulties together, showing tenacity and shared responsibility.The hardworking figures in the furnace, the diligent lifting operations, the dedicated service to steel mills, and the continuous construction scenes... we are hand in hand, united in purpose, and have walked through seven springs and autumns together. Along the way, we have weathered storms and overcome obstacles, creating one miracle after another.It is precisely our courage to innovate, our determination to be the first, and our vigorous spirit that have pushed our great cause forward step by step. Every ordinary Juxian person has made extraordinary contributions, and our ordinary Juxian heroes are always the greatest reliance to overcome all difficulties and challenges.

Comrades, "The material resources possessed by humanity are limited. One day, coal mines, natural gas, oil, iron ore, and other non-renewable resources will be exhausted, but only culture can be everlasting, and only knowledge can be passed on." All high-value products, first-class technologies, and well-known brands are created by human wisdom. We have no natural environment to rely on, nor natural resources to depend on. Only by digging out new renewable resources in the minds of Juxian people... can we pass on the fire and achieve everlasting life. Today, we commend the advanced collectives and individuals that emerged in 2024, aiming to promote the loyalty and nobility they embody.The distinct character of persistence and simplicity. The achievements of the group today benefit from your innovative spirit and hard work. It is precisely because you apply your professional knowledge and solid skills in your respective ordinary positions, continuously promoting management innovation, standard innovation, process innovation, technological innovation, and service innovation, that extraordinary achievements have been created. Here, I would like to express my highest gratitude to every manager, every technician, every builder, and every participant: "Thank you, you have worked hard!"

The long river of history flows ceaselessly, with both calm and stormy waves. On the road ahead, there is still room for improvement in our product quality; the existing process capacity has not been fully released; marketing operations should be further optimized and expanded; engineering projects need to accelerate investment and construction; procurement costs still need to be deeply explored while ensuring quality; the performance of standard processes still requires innovative implementation. Solving these challenges is our inexhaustible motivation for achieving high-quality development in the new era. There is still much to do, and we cannot stop our efforts; we must not change our relentless pursuit of dreams.

Currently, a new round of technological revolution and industrial transformation is developing rapidly, with new technologies such as artificial intelligence emerging. We should grasp the trend of digitalization, networking, and intelligence, take innovation as the primary driving force, safety as the bottom line requirement, and quality as the pursuit of the enterprise. We should actively explore a cooperative development path that suits our actual situation, timely grasp market dynamics, adjust production and operation structures as needed, and achieve the established goals of 20,000 tons of finished product sales, 310 million yuan in sales revenue, 160 million yuan in processing income, and zero safety accidents by 2025 through sincere cooperation with upstream and downstream customers.

Although the road is long, we will reach it by walking; although the task is difficult, we will succeed by doing it. Our grand goal of fully establishing a digital, networked, and intelligent "annual production capacity of 100,000 tons of carbon products production industry chain" will not change. Our confidence in "seeking benefits for employees, quality for customers, and development for the enterprise" will not change.Our determination to "become the most competitive large carbon material enterprise in the world" will not change. We will work diligently, be practical and innovative, unite our efforts, and strive for excellence, hand in hand, to build a more prosperous and beautiful graphite community.

Finally, I wish this conference great success. Let us embrace the future with beautiful aspirations.Together, let us welcome the first ray of sunshine in 2025.

I wish all colleagues warmth in all seasons and good health! Thank you, everyone!