As one year ends and a new one starts, on behalf of ZTE, I would like to extend my warm greetings and sincere gratitude to all colleagues and your families for your consistent dedication. My heartfelt thanks also go to our global customers, partners, investors, and the people from all walks of life for your support and trust.

The year 2021 was crucial for the company's growth phase. Over the past year, we have deeply engaged in China's 5G development. In the operator markets, we have steadily improved our market position in China and secured robust operations overseas. Moreover, we have achieved rapid growth in the enterprise business, continuous improvement of the mobile device business, and accelerated expansion of new business. Maintaining technological leadership, the company has increased investment in chipsets, algorithm, infrastructure software, and network architecture to enhance core competitiveness. In addition, we have been promoting digital transformation to visualize processes and improve operational efficiency. With the concerted efforts of all ZTErs, we have sustained high-quality growth and fulfilled the goals set for 2021 by strengthening our foundation and exploring new horizons.

The year 2022 marks the start of the company's expansion phase. On the one hand, the global situation is experiencing constant changes and increasing uncertainties. On the other hand, the Chinese market is filled with great opportunities brought by the in-depth application of 5G in more verticals, China's carbon peaking and neutrality goals, booming "New Infrastructure" construction, and burgeoning digitalization. As a driver of digital economy, ZTE is determined and confident to seize the new opportunities. Regarding solid foundation, we continue to maintain robust growth of business in the 1st curve, namely, the operator business. As for new horizons, we resolve to promote the rapid development of business in the 2nd curve, that is, the enterprise business, consumer business, and new business. With these efforts, we strive to make a giant leap forward and become a world's top 500 company.

In terms of telecom products, we will maintain our leadership in key technologies, strengthen the competitiveness of major products to take first place, and enhance the R&D of core chipsets, to guarantee business sustainability. In the Chinese operator market, we will continue to make breakthroughs and scale new heights in market share, revenue, and profitability. As for international markets, the company will expand business in high-value markets, intensify partnerships with key operators, and focus on major networks to secure steady growth. Regarding the Chinese enterprise market, we will accelerate business growth in key sectors such as finance and Internet, strengthen the competitiveness of our channels, focus on competitive products, and promote successful experience in opportunity-driven products such as servers and IDCs, thereby achieving leapfrog growth. In terms of the mobile device business, ZTE will seize the opportunities in mobile phones and mobile Internet products and stay agile to increase market share, to take a leading position among the second-tier players. For new business, the company will explore more growth opportunities and occupy a favorable market position in digital energy, 5G industry applications, automotive electronics, and smart home.

Perseverance makes success. ZTE will maintain its strategic determination, take the management measures proven to be effective, and continuously improve the operational efficiency. We will further strengthen the synergy of systems, make the best use of resources, and step up efforts in compliance management and internal control to effectively prevent operational risks. Moreover, with a focus on frontline business scenarios, the company will enable end-to-end data flow and advance business transformation to reduce transaction costs and therefore evolve into an ultimate cloudified company. As the saying goes, building a high-rise begins with mounds of soil. Only with a solid foundation, can we make further progress towards the expansion phase more confidently. We will build a resilient organization to adapt to increasing uncertainties. In addition, we are committed to achieving green and sustainable development, contributing to the fulfillment of China's dual-carbon goals.

By setting sail together, we could ride the wind, break the waves, and brave the journey. Advancing into the expansion phase, all ZTErs are expected to stick to the company's strategy and strive for more breakthroughs. Let's embark on the journey and gather huge momentum to build a more prosperous future!

Wish you and your families all the best and a happy new year!

Li Zixue, Chairman of ZTE