I. Review of 2020 Work
(1) Proactively addressing pressure, production remained stable in the year of the pandemic.
At the very beginning of 2020, in the face of the sudden COVID‑19 outbreak, we responded proactively, simultaneously prioritizing both epidemic control and economic development. During the pandemic, the company made its employee dormitory and canteen available to officers and soldiers of the municipal armed police unit supporting Chongyang’s anti‑epidemic efforts, providing comprehensive support to ensure they had adequate food and comfortable accommodation. We also opened our Huayi Hotel to accommodate more than 100 medical personnel from Yunnan and individuals undergoing centralized quarantine and observation. In response to an urgent request from the county Party committee and government, we mobilized our Party members and staff to take the lead, establishing a 10‑person emergency production team that worked around the clock in three shifts. Together, we printed 140,000 copies of various epidemic‑prevention and control materials for the entire county. Our selfless contribution was widely commended and reported by media at the central, provincial, and municipal levels.

Under the impact of the pandemic, businesses have faced widespread operational pressures—labor shortages, order uncertainty, supply-chain disruptions, and tight cash flow—while most small and medium-sized enterprises have found themselves on the brink of survival. In this challenging environment, thanks to the unwavering resilience and relentless efforts of all our employees, we resumed work and production at the end of March, achieving an annual output that remained broadly in line with the previous year’s normal levels. In short, 2020 tested us, showcased our strength, and left behind a solid record of progress. It is precisely in times of great adversity that true heroism shines through; the achievements of those turbulent years were hard-won. Through unity, tenacity, and perseverance, all members of Wenchang ensured that production did not falter during the year of fighting the epidemic.

        (II) With increased investment in industrial upgrading, the company has bolstered its core competencies and risen to the ranks of industry leaders.
In recent years, in order to refine our processes, boost production capacity, and expand our market reach, we have seized the strategic opportunities presented by industrial upgrading. We have invested over RMB 20 million, continuously introducing state-of-the-art equipment and complete production lines. As a result, we have established a fully integrated, standardized, information‑driven, and ISO‑compliant operation that encompasses prepress design, plate-making, printing, and sophisticated post‑press finishing. At the same time, the company has successfully obtained ISO 9001 certification for quality management and ISO 14001 certification for environmental management, as well as the “Ten‑Ring” green‑printing label issued by China’s Ministry of Environmental Protection. Today, we stand as the largest, most comprehensively equipped, and most highly accredited printing enterprise in Xianning, serving as an industry benchmark. We are also the leading modern printing firm in the tri‑province region where Hunan, Hubei, and Jiangxi converge, ranking among the top ten in Hubei’s printing sector, and consistently occupying a front‑row position in the province’s printing industry in terms of scale, production capabilities, and environmental standards.

        (3) Management standards have reached a new level, and product quality has improved markedly.
The company has successively formulated and progressively refined a series of management systems, including quality management, attendance management, compensation management, piece-rate management for production staff, 6S management, safety management, as well as policies governing the canteen and employee housing. In 2020, we intensified the implementation of these systems, continuously elevated our management standards, and achieved notable results. In terms of production and quality management, more than 120 employees were disciplined throughout the year; no major product‑quality incidents occurred, product quality improved significantly, and customer satisfaction rose markedly.

In managing piece-rate compensation for production employees, we have adopted a pragmatic approach, letting facts and figures speak for themselves. By continuously identifying shortcomings and revising our guidelines, we have gradually implemented a system that rewards excellence and penalizes poor performance, incentivizes diligence while discouraging laziness, and ensures that those who work harder earn more and those who perform better receive greater rewards. As a result, employee motivation and production efficiency have improved markedly. In terms of 6S management, we have also made progress. Our workshop has seen notable improvements in production order, cleanliness, process control, and the organization of materials and tools. Across the industrial park, the city, and even the entire province’s printing industry, our 6S site management, working conditions, and factory environment are widely recognized as exemplary, consistently ranking among the best. Regarding workplace safety, we have maintained an unwavering commitment, with no major accidents occurring throughout the year.

      (4) Skill training has been enhanced in quality and efficiency, and corporate culture has taken deep root.
We uphold a corporate culture that aligns individual goals with corporate objectives, personal interests with corporate interests, and personal success with corporate success. We are committed to fostering the joint growth of our employees and the company, ensuring that both individual value and corporate value are realized in tandem.
In May, we invited the County Federation of Trade Unions to host the Chongyang County Printing Industry Vocational Skills Competition at our company. We organized workshop employees to compete in two key areas—offset printing and bookbinding/folding—and recognized and rewarded the top performers. At the same time, throughout our daily production processes, we place great emphasis on identifying and nurturing talent. Whenever we spot promising individuals, we assign them to critical roles, pairing them with seasoned technical experts and high‑performing professionals to mentor, support, and guide them, enabling them to grow both through learning and on the job.

Over the past two decades since its founding, our company’s corporate culture has taken deep root. While pursuing growth, we have continuously improved our employees’ working conditions and workplace environment. In 2020—a year of significant challenges—many enterprises in the industrial park were unable to pay wages; yet we not only ensured monthly salary payments but also maintained employee incomes at a mid-to-upper level among companies in Chongyang County. At Wenchang, employees can acquire both professional expertise and technical skills, with ample opportunities for career development and advancement. We are fortunate to have a dedicated team of veteran employees—loyal, hardworking, and committed to the company’s success—many of whom have been with us for over a decade or even two. Thanks to our strong reputation, new talent continues to join our ranks. When the company faces difficulties, we stand together to overcome them; and when times are prosperous, we share the fruits of our growth with all our colleagues.

    (5) Integrity is our foundation, service quality is excellent, and customers recognize our business growth.
We have always upheld the service principle that “customer satisfaction is our ultimate goal.” In handling all types of printing projects, we strive for excellence, consistently producing premium-quality prints and ensuring that we deliver the highest standards of quality, the fastest turnaround times, the most competitive pricing, and the finest customer service. As a result, we enjoy an outstanding reputation, renowned throughout the province and beyond for our superior products, and are highly favored by both new and longstanding clients. After years of dedicated effort, we have cultivated a loyal base of high‑quality customers. Despite the challenges posed by the COVID‑19 pandemic in 2020, we remained committed to further enhancing product quality and service levels. Thanks to our exceptional service and the strong trust we’ve built with our clients, our existing customer base has remained remarkably stable, with deepening partnerships. For instance, Hubei University has begun collaborating with us on an even more comprehensive scale, and their order volume is expected to grow significantly this year. At the same time, we continue to attract new clients, with an increasing number of partner organizations and prospective customers expressing interest in working with us.

      II. Existing Problems:
(1) Production capacity fails to keep pace with core competencies.
The company’s existing equipment and production lines are among the most advanced in the city and even the entire province, with an annual capacity that could easily reach 500,000 to 600,000 reams of paper. However, we have not yet attained this level; moreover, we are neither lacking in business nor in equipment—what we do lack is improved production efficiency and enhanced organizational, scheduling, and management capabilities.

        (II) Skills Lag Behind New Equipment
In recent years, we have invested heavily in acquiring state-of-the-art equipment; our hardware is now robust, but our supporting soft capabilities have lagged behind. Consequently, there is a significant shortage of employees who possess the expertise to operate, maintain, and repair this equipment. It is essential to further strengthen technical training for our existing workforce and to intensify efforts to recruit personnel with advanced skills.

        (3) Innovation Fails to Keep Pace with the Broader Trend
Today, electronic information and network technologies are advancing by leaps and bounds, exerting a profound impact on every traditional industry. Against this backdrop, the printing sector is likewise under pressure to transform and embark on a second wave of entrepreneurship. New technologies and processes are evolving at an unprecedented pace; circumstances often outstrip individual capabilities, and those who fail to keep up risk being left behind. In terms of process technology, we lack robust mechanisms for innovation and R&D, a shortage of specialized talent, and a clear core competitive edge.

        (4) Management fails to keep pace with stringent requirements
In recent years, we have formulated and progressively refined a series of management systems, resulting in a noticeable improvement in our management standards. However, certain issues remain. The primary challenge lies in the inconsistent enforcement of these systems—sometimes lax, sometimes overly strict—lacking both rigor and consistency. When I am present, matters tend to run more smoothly; but when I am away, some tasks fall into neglect, and operations become dysfunctional. This underscores that our management approach remains relatively rudimentary, still relying heavily on the personal authority of the owner, and highlights the fact that the company has yet to achieve true governance through formal systems and institutional frameworks.

      III. 2021 Work Objectives:

In 2021, our slogan is “Unite as One, Achieve Breakthroughs,” with the goals of scaling up, enhancing quality, and boosting profitability. Our overarching target is to secure 400,000 metric tons of paper output, striving for 500,000 metric tons—commonly referred to as “ensure four, strive for five.” To achieve these objectives, we must drive improvements and innovations across all facets of our operations, including business development, production management, human resource administration, and logistical support, thereby elevating our performance to a new level and realizing our strategic goals. All departments and every employee are expected to align their work with the company’s overall objectives: departmental targets should cascade from the corporate vision, and individual interests must take a back seat to the collective good, fostering strong synergy to accelerate Wenchang’s development. To this end, we will focus on the following key measures:

      (1) Recruiting a large number of talented professionals and fully tapping into production potential.
This year, the company is enjoying strong business momentum, with numerous prospective new clients and a significant increase in orders from existing customers. Key accounts such as Shaanxi Wanwei, Yitong, Youyi, Huayang, Jiangxi Jintaiyang, the Learning Publishing House, University of Science and Technology, Children’s Publishing, Ailifang, Haidun, Yongkang, and Hubei University are all set to deepen their collaboration with us this year, driving a substantial rise in business volume. The outlook is highly encouraging, but production schedules remain demanding. To establish itself as an industry leader in Xianning and achieve its targets for output value and profitability, the company must expand capacity this year, fully leverage the productive capabilities of its existing equipment, and deliver on its goal of “ensuring 400 million yuan in revenue while striving for 500 million yuan.”

To “secure fourth place and strive for fifth,” the company must aggressively recruit top talent through a variety of channels. First, it should conduct large-scale hiring via on-site recruitment events and media advertising. Second, it should mobilize its workforce, leveraging the collective strength of all employees by encouraging each staff member to tap into their personal networks—relatives, friends, and acquaintances—to identify and recommend suitable candidates, particularly former employees who have previously worked at the company. Third, it must stabilize its core workforce and maintain the current employee base. In short, the goal is to both attract and retain talented individuals. Furthermore, every department—production, logistics, and others—should prioritize employee well-being, ensuring robust support for their daily lives and work, while fostering a strong corporate culture. This way, employees in Wenchang can enjoy good food, comfortable housing, meaningful contributions at work, opportunities for personal growth, and a promising future.

      (II) Implement performance-based compensation for all employees to increase their income.
Income distribution should uphold the principles of rewarding greater effort, rewarding superior performance, and rewarding competence, with the aim of recognizing value, incentivizing diligence while penalizing laziness, rewarding excellence and sanctioning mediocrity, encouraging high achievers, and motivating those who lag behind—thereby boosting employees’ work enthusiasm and enhancing their productivity.

Workshop employees are currently paid on a piece-rate basis. This system should be further standardized and refined in light of actual conditions, making it more rational and scientifically sound so that it best reflects the value of each workshop employee’s labor. In addition to piece-rate workers, all employees receiving fixed salaries will be subject to a performance‑based pay system; the company is already developing an implementation plan for this. The basic approach is to allocate 40% of each fixed‑salary employee’s total compensation as performance pay, which will be linked to their monthly work performance. A dedicated performance officer will score each employee according to the established performance‑evaluation criteria, with a maximum score of 100 points. Employees who achieve 85 points or above will receive their full performance pay; for every point above 85, they will be rewarded in accordance with the policy, while for every point below 85, deductions will be applied as stipulated.

        (3) Implement all management measures and ensure that the factory is run in accordance with established systems.
This year, we will place particular emphasis on ensuring the thorough implementation and enforcement of all management systems. To achieve this, we must adhere to the following principles: First, our management systems apply to actions, not individuals; all employees are equal before the law, and no one may seek special treatment or operate outside its framework. Esteemed long-serving employees and middle- and senior-level managers, in particular, must hold themselves to the highest standards, leading by example and setting a positive precedent for their teams. Second, managers must demonstrate strong execution and a broad, strategic perspective. They should avoid forming cliques, shielding favorites, or pandering to please everyone. When appropriate, they must impose discipline where warranted and extend care and support where needed—fairness and consistency are paramount, and there is no contradiction between these two imperatives. Third, at the weekly Friday afternoon staff meeting, each manager is required to review and analyze the implementation of management policies within their purview over the past week, identifying issues, dissecting their root causes, and devising solutions. The same problems must not recur in the following week’s work. Fourth, no system is perfect; we are entitled to question every company policy and to put forward practical, actionable suggestions for improvement. However, until a policy has been formally revised, it must be implemented rigorously and without deviation. Arbitrary changes, half‑hearted compliance, and any attempts to undermine the seriousness and authority of our systems are strictly prohibited.

      (4) Strive to innovate manufacturing processes and enhance product quality.
We must pursue a dual‑pronged approach: first, rigorously uphold quality standards, cultivate and champion the spirit of craftsmanship, and place great emphasis on meticulous detail management, ensuring that quality‑management responsibilities are firmly embedded in every production process, every stage, and every employee. In quality control, we must eliminate attitudes and practices such as “close enough,” “it seems,” or “basically,” and steadfastly strive for excellence and perfection. Second, we must adopt smart, strategic development and remain committed to innovation. Without exception, leading domestic and international companies invest heavily in R&D and innovation each year. We, too, must ramp up our investment, tap into our existing technical expertise, attract top talent, reward innovation, tolerate trial and error, and devote ourselves to refining processes and achieving technological breakthroughs—always staying ahead of the curve. By offering what others lack and excelling where others excel, we can build core competitiveness and secure an unassailable position in the industry.

        (5) Strengthen team building to ensure that each person is fully utilized.
First, we must “hire based on merit and emphasize practicality.” For the talent our company needs, we evaluate character, capability, and performance—without regard to academic credentials, background, or age. As long as an individual can contribute effectively, we will recruit widely and welcome all who can add value. Second, we will strengthen training to accelerate growth. For newly hired employees, we will provide intensive programs to foster alignment with our corporate culture, enhance organizational discipline, and develop professional skills, enabling them to quickly become fully qualified team members. This year, we will also deepen collaboration between the company and educational institutions, sending high-potential, well‑qualified staff to specialized schools for advanced training, thereby cultivating a pool of skilled professionals. Third, we will leverage strengths and mitigate weaknesses by strategically allocating personnel, placing each individual in the role best suited to their abilities, ensuring that everyone’s talents are fully utilized and maximizing their contributions. Fourth, we will adopt a people‑centric approach, extending thoughtful care and support to our employees in their personal lives, at work, and on a spiritual level, striving to meet their legitimate needs. Our goal is to inspire every employee to take pride in their role and to feel that the company is their home. On the occasion of the Party’s centenary, the company plans to nurture a group of employees who demonstrate progressive thinking and strong political awareness, preparing them for Party membership.

        (6) Prioritize safety and environmental protection, and build a safe and secure Wenchang.
First, all workshops must strictly enforce safety production regulations and rigorously follow operating procedures. Safety must be emphasized daily and at every moment; complacency and carelessness are absolutely unacceptable. Second, fire safety demands the highest level of attention. As most of the company’s raw materials, auxiliary materials, and finished products are flammable, vigilance must never wane. We must strengthen training on fire‑prevention knowledge, enhance electrical‑safety education, foster a culture of fire awareness and proper habits, and advance the development of a smokeless factory to ensure robust fire safety. Third, we must fulfill our social responsibilities by adhering fully to environmental protection requirements—specifically, the ISO 14001 international standard for environmental management systems and the Ministry of Environmental Protection’s Green Printing certification. This entails improving the harmless treatment of industrial waste, wastewater, and hazardous waste, ensuring compliant emissions, and building a green, eco‑friendly Wenchang. Fourth, we must prioritize traffic safety. Employees commuting to and from work pass along Jincheng Avenue, a heavily trafficked thoroughfare with high pedestrian and vehicle volumes, particularly heavy trucks serving the industrial park. Everyone should err on the side of caution: stop for three seconds rather than risk a second, and motorcycle and electric‑bike riders must wear helmets. Fifth, we must place great emphasis on food hygiene and safety. All employees are encouraged to take action and actively monitor food safety in the canteen. Employees who neglect hygiene or fail to observe proper etiquette at their workstations, in their daily lives, or in the dormitories will be photographed and publicly exposed, thereby fostering a safe and sanitary working and living environment for everyone.

      (7) Uphold a people-centered approach and share the fruits of development.
First, we will further expand the scope and reach of our insurance coverage, ensuring that all employees have adequate retirement security and support. Second, we will provide a free annual health checkup for every employee, enabling them to stay informed about their health status. Third, we will actively seek favorable policies and coordinate with company support measures to assist employees facing financial hardship, making sure that no employee in Wenchang remains trapped below the poverty line due to economic challenges. Fourth, we will cultivate 20 motivated individuals to join the Party, establish model Party-member posts, and reward outstanding Party members. Fifth, we will create multiple platforms and open up diverse avenues for entrepreneurship, allowing employees who wish to start businesses to invest as shareholders and participate in the company’s operations. For those willing to invest in the company’s projects, we guarantee they will not incur losses, offer a fixed interest return, and allow for higher returns on larger investments. Furthermore, for any business ventures initiated by employees, we will adopt a 50/50 profit-sharing arrangement, enabling them to generate additional value outside their regular work and enjoy a more prosperous life. Sixth, we will proactively help employees resolve issues related to their children’s access to nearby schools, with all associated costs borne by the company. For children of company employees who choose to attend Wenchang School, we will provide an additional 10–20% discount on top of existing preferential policies, ensuring that employees’ children can attend quality schools, afford their education, and receive a high‑standard of schooling. Seventh, we will organize study tours and field trips for outstanding employees and exemplary Party members, broadening their horizons and fostering a forward‑looking mindset. Eighth, we will vigorously conduct training programs to enhance employees’ skills and professional competencies, improving their employability and career prospects. Ninth, we will strengthen corporate culture, enrich employees’ cultural and spiritual lives, and regularly organize various cultural activities; at year‑end, we will host an annual gala. Tenth, we will expand our business channels, cultivate high‑quality clients, increase production capacity, and improve all aspects of employee benefits and working conditions, striving to ensure that every employee enjoys a fulfilling and happy life.

March 8, 2021