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Dear Shareholders, Partners, Colleagues, Friends, and Sanfu Family Members,

As the past year gives way to the new year, we start on a fresh journey. At this moment of bidding farewell to the past and welcoming the new, on behalf of the company, I would like to extend my sincerest gratitude and best wishes to all friends from all walks of life who have been long caring for and supporting us, as well as to all employees who have worked hard and selflessly!

2024: Building a Foundation for Scientific Research, Driven by Innovation

To face the fierce industry competition, innovation is our spear to break through the encirclement. Over the past year, we have further constructed our R&D platform, collaborated with outstanding research institutions, universities, and enterprises in the industry, and led a national R&D project, "High-Stability Green Electroplating Process Technology and its Related Equipment", which entitled Sanfu as "Guangdong Provincial Enterprise Technology Center". We have continued to make breakthrough progress in promoting industry technology development and transforming into R&D achievements.

In response to the ever-changing market challenges, we have honed our technology and carved out new chapters. Over the past year, we have focused ourselves in the three foundational sectors in general metal finishing chemicals, electronic chemicals, and intelligent equipment, aimed at the new energy ‘track’, and enhanced our core competitiveness. The MSA environmentally friendly high-speed tin plating project has embarked on a journey of technological globalization; advanced electronic manufacturing processes such as PCB horizontal PTH and pulse plating have injected strong momentum into domestic substitution; we have engaged in comprehensive cooperation with leading customers in high-end process fields such as glass substrate, which covers R&D, supply chain collaboration, and industrial commercialization; also our self-developed "one-step all-wet" composite copper foil process, which has achieved mass production and delivery, and marked our debut success in the new energy sector.

2025: Seizing the Moment, Marching Forward

In the context of developing so called “new high-quality production forces,” innovation and hard work remain the powerful engines for this high-quality development. Looking ahead, we will continue to strengthen our brand and platform construction, leveraging our advantages in R&D, channels, talents, and product systems to establish an industry benchmark; we will consolidate our advantages in the three foundational sectors in general metal finishing chemicals, electronic chemicals, and intelligent equipment, obtain certifications from more industry-leading customers, and continue to expand overseas markets; we will sprint towards the new energy track in lithium batteries and photovoltaics, seize opportunities, collaborate with more downstream manufacturing enterprises and leading battery manufacturers, obtain automotive certification and increase the penetration of composite current collector in battery applications.

In the face of emerging new industries such as AI, robotics, and low-altitude economy, and the opportunities presented by the Chinese new energy vehicle industry which has changed the global industrial landscape, we will adhere to green intelligent manufacturing, leverage the synergistic effects of the industrial supply chain, provide more new environmentally friendly surface finishing solutions, and help downstream enterprises achieve environmental-friendly and intelligent transformation; we will persist in technological innovation, strengthen our R&D capabilities, delve into high-end electronic processes, new energy and other fields, and contribute to more industrial innovation.

As the chill winter fades and spring returns, I once again wish everyone a happy new year, good health, and a happy family!

Guangzhou Sanfu New Materials Technology Co., Ltd.

Chairman

Shangguan Wenlong