To jointly propel the implementation of the new energy material sintering furnace production initiative in Shezhu Town, Liyang City, on the afternoon of July 8th, a strategic investment agreement was formalized between the Shezhu Town People's Government of Liyang City and our company. This pivotal accord concerns the manufacturing of sintering furnaces for the cathode and anode materials of power batteries. The signing ceremony was graced by the presence of Mr. Xu Honglei, Chairman of our company, and Mr. Zhou Longlong, Deputy Town Chief of Shezhu, underscoring the significance of this collaboration.

Founded in 2013 and strategically headquartered in the Suzhou New District of Suzhou City, Suzhou Hongyulai Electromechanical Science And Technology Co.,Ltd. boasts a dedicated workforce surpassing 100 employees. The firm is a vanguard in the realm of new energy, particularly focusing on lithium batteries and the smart integration of high-end electronic ceramic production lines. Its six-column, double-layer integrated production lines for lithium batteries set a global benchmark, commanding the leading market share within China and are primarily utilized for the sintering of cathode materials.

Our company's innovative strides have been consistently recognized: achieving the status of a high-tech enterprise in 2018, being honored as a Gazelle Enterprise by the Suzhou New District in 2019, receiving accolades as a private technology enterprise in 2020, and being acknowledged as a specialized and innovative enterprise in 2021. Suzhou Hongyulai has forged robust partnerships with industry giants such as Contemporary Amperex Technology Co. Limited (CATL), Ronbay Technology, SVOLT Energy Technology Co., Ltd, Gotion High-Tech, Xiamen Tungsten Co.(XTC), and Shanshan Co., Ltd and so on.

Demonstrating a trajectory of robust financial performance, in 2022, our company's principal business revenue soared to an impressive 450 million yuan.

The endeavor, with an infusion of 400 million RMB in capital, is poised to extend its industrial capacity by an additional 50 mu. In its nascent stage, the project will adeptly navigate through a transitional period by operating within leased manufacturing plants, with a strategic emphasis on the production of an array of sintering furnaces. Upon reaching its full operational stride, the project is forecasted to realize an impressive annual sales milestone of 800 million RMB, alongside a robust annual tax remittance estimated at 18 million RMB.