On January 10th, the 2024 annual work conference of Shanggong Shenbei Group was held at the group headquarters Shensi Building. Chairman and President Zhang Min presided over the meeting and delivered an annual work report titled "Adhering to Quality First, Innovating to 'Connect' Customers". Supervisory Board Chairman Ni Ming, Executive Vice President and General Manager of Sewing Machine Branch Li Xiaofeng, Party Secretary and Vice President Fang Haixiang, Vice President and General Manager of Automotive Parts Branch Xia Guoqiang, Chief Economist and General Manager of New Industry Investment Platform Li Jiaming, Financial Director Zhao Lixin, Deputy Chief Economist and General Manager of Commercial Logistics Business Unit Zhang Ping, Deputy Chief Engineer and General Manager of Baifu Intelligent Equipment Branch Huang Hai, Board Secretary Zheng Yuan, and President Assistant Chen Yongwu, Executive Director of German Baifu, attended the meeting, and all subsidiaries (business units) The general manager made a summary report on the business sector, and Mr., the general manager of DA GmbH in Germany Michael Kilian, General Manager of PFAFF Industrial GmbH and Sonotonic GmbH Frank Meyer、 Mr., Head of the German Innovation Center Guido Jaeger and Li Dong, General Manager of Shanggong Zhejiang, made exchange speeches. More than 80 people, including members of the leadership teams of the group and its subsidiaries (business units), members of the leadership teams of its subsidiaries, middle-level and above management personnel of the group, management level employees of the group, outstanding employees and advanced collective representatives, innovative individuals and collective representatives, attended the on-site meeting. Some managers of overseas and domestic enterprises also participated through online connections.

Zhang Min made a work report from four aspects: economic situation analysis, review of business operations in 2023, existing problems and shortcomings, and 2024 work plan. In 2023, global economic growth is slow and differentiation is intensifying, with a significant decline in China's export growth rate and overall weak consumer demand. The sewing industry is facing a severe situation, but the decline in production and sales has significantly narrowed compared to the previous year, showing a positive trend of bottoming out and rebounding. In 2023, production and sales will steadily increase, with varying degrees of growth in sales revenue for each business unit; By focusing on marketing efforts and participating in large-scale exhibitions such as CISMA and Texprocess, as well as organizing direct sales events for key customers, sales of advantageous products such as medium and thick material machines have significantly increased; Adhere to precise research and development, Duerkopp、PFAFF&KSL、Mauser、 Shanggong Fuyi, Butterfly brand, and others have developed dozens of new products to be launched on the market; Continuing to expand its business scope, the company has acquired the effective assets of Sonotonic GmbH, the hidden champion of non-standard automation equipment for ultrasonic welding in Germany, to broaden the material connection technology industry track. It has also acquired a controlling stake in Shanghai Shanggong Feier Automotive Parts Co., Ltd., entering the fields of automotive interior parts and structural components, cultivating and strengthening new business growth points; Strengthen internal management and enhance risk management; Implement 6S on-site management and continuously improve quality; Continuously carry out ESG management and adhere to green development; Adjust and optimize the company's management structure to improve management efficiency; By taking multiple measures such as creating a corporate culture, the overall operational quality of the company in 2023 will be improved, and revenue and earnings will steadily increase.

While reviewing and affirming the performance of the group's operations in 2023, Zhang Min also candidly pointed out the main problems and shortcomings that still exist, emphasizing that in the future work, we will continuously strengthen the multi brand strategy, vigorously promote Sino German cooperation in research and development, continuously improve product and service quality, continuously strengthen the talent team, and adapt to the needs of the company's global development.

Looking ahead to 2024, Zhang Min pointed out that Shanggong Shenbei will adhere to the business philosophy of "global market layout, innovative green development". As the "Total Quality Management Year" of Shanggong Shenbei Group, 2024 will strive to ultimately achieve the goal of "Made in China" equal to "Made in Germany"; To actively promote the development of globalization, the company will firmly follow the path of "new globalization" in the current of "anti globalization". German technology and Chinese manufacturing should develop in coordination, and both China and Germany should share the global marketing network, layout global product manufacturing, and improve global business management; Next year will also be the "year of integration" for the company, aiming to achieve cost reduction and efficiency improvement through restructuring and integration. It is necessary to integrate the two major businesses of Shanggong and Feier, Shanggong and SNT products, and continue to promote the integration of domestic subsidiaries and functional departments, as well as the comprehensive internal integration of DA Group in Germany; We will continue to seek opportunities for industrial investment and mergers and acquisitions, focusing on the development strategy of "horizontal expansion of the industrial chain and vertical extension of upstream and downstream", actively seeking new investment and merger opportunities, promoting the company's global market layout, and achieving high-quality development of the company.

The conference also held a signing ceremony for the 2024 key task book. Zhang Min, on behalf of the group, signed the annual key task book and budget targets with the heads of each branch (business unit).

Under the leadership of Chen Liyi, the chairman of the group trade union, outstanding employees and advanced collectives, as well as innovative individuals and collectives, were commended for the year 2023.