The dream of building a strong silk industry is an integral part of the Chinese dream. Silk has always played an important role in the trade exchanges along the Silk Road since ancient times, making it a valuable link between Chinese civilization and other civilizations in the world. We have continued to develop our marketing pipelines, while creating new retail models. Through live streaming e-commerce and digital technology, we have enabled the development of our cultural brands. In addition, we have actively promoted the go-global initiative for our new Made-in-China brands, and teamed up with overseas artists for crossover cooperation. Thanks to these efforts, we have debuted our products at the Milan Design Week, and have shipped our products to dozens of countries and regions in Europe and the United States. Taihu Snow Silk has become the exclusive designated silk gift partner for CMG Mid-Autumn Festival Gala, China-Africa People's Forum, World Table Tennis Championships, Sudirman Cup, and other major events and international tournaments.

Since the beginning of the new era of rural modernization envisioned in the Report to the 19th CPC National Congress, we have responded to the call of the Party and followed the Party's instructions and policies to support the initiative of building the country's first silk towns. Thanks to the Belt & Road Initiative, the Silk Road has once again been revitalized. We are duty-bound and committed to promoting Chinese silk culture to the world and contributing to the implementation of the Belt & Road Initiative. In recent years, we have been awarded such honors as High and New Tech Enterprise, National Service-oriented Manufacturing Demonstration Enterprise, Top 30 Private Cultural Enterprises in Jiangsu, Key Cultural and Technological Enterprise in Jiangsu Province, Key International Famous Brand Cultivated and Developed in Jiangsu Province, and Key Cross-border E-commerce Famous Brand Cultivated and Developed in Jiangsu Province.

We recognize the importance of individual development and offer a positive working environment that promotes individual growth and career development. We conduct a number of vocational training sessions to help our employees acquire knowledge related to their functions and be recognized for qualifications at all levels. We also organize activities such as morning exercise, birthday parties, and female employees' day to promote the physical and mental health of our employees.

To fulfill our corporate social responsibility, Taihu Snow, with a sustainability mindset, has formed a sericulture- based business operation mode covering tech-enabled sericulture, wiredrawing and quilt-making, as well as cultural and creative exhibitions and sales. This mode can help promote ecological progress, increase people's income, and protect the environment. The development of the Company has directly or indirectly contributed to the prosperity of the surrounding rural laborers, but also promoted the high- quality development of the cause of rural revitalization.

In the new era of consumption, consumers do not just place orders for high-quality and cost-effective products, but also for products with cultural and emotional value. Therefore, we should endeavor to promote Chinese silk culture, so that a greater number of people can understand, recognize, and immerse themselves in silk culture. This will in turn propel the development and increase people's awareness of the new Made-in-China silk brand. I would also like to take this opportunity to express my gratitude to our employees, customers and shareholders for their support and trust in Taihu Snow. We will continue to move forward on the journey of building a sustainable future and promoting the Chinese silk culture.

The success of China's silk industry is the epitome of the success of that of the world. China is the origin of sericulture and is known as the "Oriental Silk Country." Its silk culture is an integral part of Chinese civilization and has a history dating back more than 5,000 years. Since ancient times, silk has been an item traded along the Silk Road and the Maritime Silk Road, making it a brilliant pearl of the Chinese civilization. With the "Taihu Snow Silk" brand as its core, the Company (the owner of the brand THXSILK in the overseas market) specializes in the R&D and design, production and manufacturing, brand promotion, pipeline development, and sales service of silk-related products.

Under the context of new consumption, new national brands, and new retail, the Company endeavors to carry forward the Chinese silk culture and raise people's awareness of a new Made-in-China silk brand. Thanks to more than ten years of development, the Company has formed four major product lines, namely, silk quilts, bedding sets, silk accessories, and silk apparel, and "Taihu Snow Silk" has gained considerable market popularity as an iconic brand in the silk industry. With a focus on the high value-added business chain (R&D, design, and brand operation) at the core of the two ends of the "smile curve," the Company has established a three-dimensional sales model that includes both online and offline channels, as well as both domestic and overseas pipelines. Our offline pipelines include direct-sale stores and corporate clients' collective purchasing, while our online pipelines feature Tmall, JD, Vipshop, Douyin, Amazon, and overseas official websites, among other e-commerce platforms.

The Company has received multiple honors like High and New Tech Enterprise, National Service-oriented Manufacturing Demonstration Enterprise, National Science and Technology-based Small and Medium-sized Enterprise, National Copyright Demonstration Organization, Top 30 Private Cultural Enterprises in Jiangsu Province, Leading Enterprise for High-quality Development of Modern Service Industry in Jiangsu Province, Leading Enterprise of Agricultural Industrialization in Jiangsu Province, Key Cultural and Technological Enterprise in Jiangsu Province, E-commerce Demonstration Enterprise in Jiangsu Province, SRDI SME in Jiangsu Province, Pilot Enterprise Cultivated for Integration of Production and Education in Jiangsu Province, and Major Taxpayer (Industrial Enterprise) in Wujiang District of Suzhou City. Our products have been awarded certificates such as the Jiangsu Premium Brand Certification, China Green Product, High Quality Silk Mark, and Suzhou Textile and Silk Science and Technology Progress Award. In particular, our brand Taihu Snow Silk (marketed as THXSILK in overseas markets) has earned such honorary titles as China's Top Ten Silk Brands, National Cocoon Silk Innovation Brand, Key International Famous Brand Cultivated and Developed in Jiangsu Province, Key Cross-border E-commerce Famous Brand Cultivated and Developed in Jiangsu Province, and Suzhou Famous Trademark. Ms. Hu Yufang, Chairperson of the Company, has won honors including National Model Worker, National March 8th Red Banner Pacesetter, Model Worker Award from the Ministry of Textile Industry, Second Prize for Scientific and Technological Progress Award from the Ministry of Education, "Outstanding Businesswoman Award" from China Association of Women Entrepreneurs, and Outstanding Private Entrepreneur of Suzhou City, among others.

The Company is committed to technological innovation and stays focused on the innovation of the silk quilt process and technology. As of December 31, 2023, the Company has been granted a cumulative total of 7 patents for inventions, 90 patents for utility models, and 2,277 copyrights for works. Besides, the Company has played an active role in drafting 5 national standards, 5 industry standards, and 7 group standards. The ten standards formulated by the Company have been enacted for practice, contributing to the healthy and benign development of the industry. Committed to inheriting and innovating Chinese silk culture, we aim to become the leading brand of new national silk products, with silk quilts at our core. We are dedicated to integrating silk into everyday living, using our high-quality silk products to enhance home decor, provide comfort, and elevate lifestyle quality.