During the Review Year, the Group continued to deepen the implementation of the Minth Operation Excellence System (\u201cMOS\u201d) (\u654f\u5b9e\u5353\u8d8a\u8fd0\u8425\u7cfb\u7edf). At its manufacturing plants in China, Thailand, Mexico, and Serbia, the Group continued to improve the cost loss model using the cost attribution matrix pillar, aiming at analysing in more detail the waste and losses incurred in the operation process and developing effective solutions for improvement. During the Review Year, in respect of the application and standardisation of MOS tools, the Group continued to implement the transition from the reaction stage to the prevention stage. The BUs are completing the MOS talent layout and establishing an echelon of teams utilising the LUTI (Learn/Use/Teach/Inspect) system. The Group continued to utilise MOS as the production assessment standard and identified eight perspectives (including management, \u201cenvironment/quality/safety\u201d, cost, human resources, production excellence, equipment maintenance, logistics and supply chain) as the principal management elements of its plant operations, promoted exchanges and appraisals among its factories, and built Silver-To be Level factories as the benchmark, so that best practices could be quickly standardised and replicated in its plants at various locations globally. In the course of MOS implementation, the Group has also been seeking improvements continuously. During the Review Year, the Group officially added primary-stage product management as an evaluation criterion to reduce the risks and costs incurred prior to mass production. This has helped to facilitate the standardisation and integration of MOS across the Group\u2019s global plants, gaining certain experience in the Review Year and establishing the foundation for the full implementation of this pillar in 2022. During the Review Year, the Group utilised digital transformation to import the logic, methodology and tools of MOS in batches into SAP, manufacturing execution system (\u201cMES\u201d) and all operating factories as needed, to ensure MOS is capable of implementing a self-sustaining operation excellence system for the entire value chain.\n\nDuring the Review Year, with enhanced processing and manufacturing technologies and production models, the Group continued to boost the overall competitiveness of traditional products and strive for an all-round penetration of these products at customers\u2019 end. Meanwhile, through in-depth exchange between its cross-functional teams (including Group Innovation Centre, Group Account Development Centre etc.) and customers, the Group remained committed to the provision of systematic solution to both internal combustion engine vehicle models and NEV models of its customers in relation to product, technology and material innovation. During the Review Year, the Group endeavoured to push forward the market expansion for new product offerings, such as chassis structural parts and intelligent exterior decorative parts, with the aim of assuring continual growth of the Group\u2019s revenue. During the Review Year, a number of new products of the Group, such as battery housing, radome, illuminated emblem, intelligent front module, bumper beam and roller shutter, smoothly entered into the project development phase.\n\nDuring the Review Year, the Group proposed the strategic goals of carbon peaking by 2030 and carbon neutrality by 2050, formulated the industrial layout goal of \u201clow-carbon R&D and cyclic economy\u201d and the excellent operation direction of \u201cdigitalization, green energy and green supply chain\u201d. The Group also audited its greenhouse gas emission based on ISO14064 to examine and audit the carbon emission of the whole Group and all its factories in the previous year, which provided the Group with data support for its carbon neutrality strategy. During the Review Year, the Group initiated an energy management audit based on ISO50001 and set up energy management organisation, annual performance targets, energy-saving management and technology solutions and daily review system at factory, BU and group level, to ensure the fulfilment of the annual energy management targets of the Group. Among them, four trial factories had passed the audit of the certification of ISO50001. The Group continued to pay attention to the responsibility toward various stakeholders, such as workers, consumers, environment and community, and conducted online and on-site audit of CSR, NQC-SAQ4.0 daily operation and self-assessment and CDP online audit. Meanwhile, the Group received the \u201cImprovement Award on Climate Action\u201d from CDP Global Environmental Information Research Center. During the Review Year, MSCI upgraded the Company\u2019s ESG rating from B to BB.\n\nDuring the Review Year, guided by its EHS management concept, the Group continued to strengthen its safety management across all BUs on a uniform basis with a focus on on-site operations. A set of criteria called the \u201cten major red lines (\u5341\u5927\u7ea2\u7ebf)\u201d have been adopted as the management method for setting key points and overseeing the process. All of these have facilitated the Group to enhance the safety awareness of employees and to reinforce the management\u2019s awareness of risk identification in order to ensure operational safety at the factory level. The Group has continued to introduce advanced technologies for wastewater, emissions and hazardous waste treatment to reduce pollutant emission, while increasing investment in waste recycling facilities, reducing the procurement of raw materials and supplies, lowering operating costs with enhanced operation management of the emission treatment facilities, as well as installing an online emission monitoring system to provide real-time monitoring and ensure effective operations of such facilities. All of these will ensure that the pollutant discharge of the Group is up to standards. The Group has also taken greater heed of the development and management of occupational health by optimizing management mechanisms for jobs subject to occupational hazards, improving the working environment for staff and ensuring comprehensive implementation of the occupational health check systems to safeguard the general health and well-being of the employees. During the Review Year, the EHS team of the Group completed a mid-year \u201cten major red lines\u201d audit and year-end MOS-EHS pillar assessment against each factory in China, commenced the compliance audit from multiple dimensions, passed the supervisory audit of the ISO45001 and ISO14001 System and identified and eliminated on-site key risks to comprehensively boost the Group\u2019s management and control capability in key EHS risks, which facilitated the Group to reduce the risks of fire accident and work-related injury occurrence and enhance its EHS performance so as to ensure safe and healthy operations of the Group eventually. During the Review Year, no material safety, fire, environmental and occupational health incidents were reported.\n\nDuring the Review Year, as management model reforms and digital transformation intensified, the Group focused on its development strategy and kept updating and maintaining the authorisation framework in accordance with its organisational needs. Process control was reviewed for its efficiency and effectiveness and optimised on an ongoing basis, while internal control and risk management were incorporated into daily operation and core value chain to gradually form a procedure-based internal control and comprehensive risk management system. The Group insisted on ensuring the independence of its internal audit function in terms of both system and organisational structure, while continuing to allocate sufficient resources to support the performance of its duties, in continuous enhancement of the efficiency, effectiveness and standardisation of its internal audit function. It monitored and promoted the internal control development and risk management in each functional department and operating unit, and started to establish an audit risk control model to identify and control the risks in advance. At the same time, the Group began the certification on ISO37001 anti-bribery system and considered such certification an opportunity to keep refining its anticorruption system, strengthening promotion and education of anti-corruption knowledge and practices and enhancing the development of internal whistleblowing channels and stipulate the systematic protection and reward of reporting briberies and other acts of fraud, thereby creating an environment that values business ethics for the Group and each stakeholder. In addition, the Group formally issued the Code of Business Ethics of Minth Group during the Review Year. Based on the above relevant measures, the Group continued to improve its audit and supervision, internal control and risk management models, keep improving its capability in risk management and control and reasonably ensure that potential risk is under control within an acceptable level. These measures have effectively safeguarded and promoted the sustainable and steady development of the Group.