Message from Chairman

When spring comes, new year is here. Under the background of a “dual circulation” development pattern in which domestic economic cycle plays a leading role and international economic cycle remains its extension and supplement，the inspection and testing industry is facing unprecedented development opportunities and challenges.

As a leading enterprise in China's TIC industry, we continue to improve our risk resilience, reduce the adverse impact of drastic changes in the external environment on the company's stable operation, provide more high-quality, professional, and green sustainable development services for global customers, making contributions to the sustainable development of the country and industry.

Strengthening Self-sustainable Development and Build Trust for Better Life

The business connotation of the TIC industry is naturally linked to sustainable development goals. We are committed to better integrating the concept of sustainable development into the company's development strategy: In emerging fields, we will invest in new energy resources, semiconductor, biopharmaceutical and other emerging fields to provide more comprehensive and professional service for customers; In the field of environment and society, we strictly comply with government regulatory requirements and social requirements to make more contributions to society; In terms of ESG development, we continue to improve our ESG capabilities and shoulder the burden of leading the industry's ESG development. We guide our customers' ESG concepts by developing ESG businesses, participating in ESG seminars, thereby promoting the development of ESG in China and allowing ESG to gain more recognition from all sectors of society in China.

Adhering to the Path of Internationalization and Promote High-quality Development

Internationalization is an indispensable core competitiveness of China's TIC industry. CTI bravely assumes the responsibility of a large enterprise, complies with the requirements of the “14th Five Year Plan” for the development of the national TIC industry, adheres to the international development strategy of "Based in China and Operating Globally", and strives to forge ahead on the road to internationalization.

In the past year, supply chain spillovers have been caused by various factors such as natural disasters, diseases, plagues, disputes and conflicts, and the importance of supply chain security has gradually increased. CTI will actively adapt to changes, adapt to local conditions overseas, and diversify its layout to reduce the impact of supply chain restructuring on the Company's business development. In the new year, we will gradually promote the process of transferring the overseas headquarters of CTI from Hong Kong to Singapore, and increase investment and diversified layout in the international development. We will expand the international footprint of CTI through overseas M&A and the establishment of diversified service networks, in order to better serve the global industrial chain and seek the well-being of human development and industry development.

Carrying Out Lean Management and Promote the Digitization Process of the TIC Industry

CTI fully understands the importance of digital transformation for the sustainable development of enterprises, and gradually completes the transformation of traditional inspection and testing enterprises to digitization. On the one hand, we carry out lean management to comprehensively improve the operational efficiency and synergy of enterprise digital work. We will increase investment in digital transformation and strive to digitize mainstream businesses on the basis of ensuring the steady progress of existing digital work. At the same time, with the aim of "making customers feel convenient", we actively upgrade the official proprietary e-commerce platform CTI MALL. On the other hand, we will have more senior managers involved in digital development, thereby strengthening the Company's digital capabilities.

TIC digitization has become an application scenario for the IOT (Internet of Things) and BT (Blockchain technology). TIC digitization is increasingly widely used in global supply chains, and plays an important role in promoting the parallel development of supply chain globalization and regionalization. Currently, global supply chains are facing severe challenges. In the future, we will continue to carry out digital research, promote the digitization process of the TIC industry, and strive to contribute to the sustainable development of the global supply chain.

The journey has no end, and the struggle never stops. We will adhere to the strategic direction of sustainable development, carry out lean management, promote digital transformation and upgrading, accelerate the internationalization development, improve the Company's ESG management level, and strive to build the company into a competitive international testing and certification institution rooted in China.

—— Chairman of CTI: