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Shimai Chairman Bai Hong

CHAIRMAN'S MESSAGE

Chairman's Message

—— Shi Mai'er Chairman, Bai Hong

Dear leaders, guests, industry partners, and team members of the Simier brand: Good day!

Today, we gather here with great solemnity to celebrate a pivotal moment in the Shimeier brand's journey. On behalf of the Shimeier Board of Directors and our entire operations team, I extend our deepest respect and sincere gratitude to all government agencies, industry associations, partners, and consumers who have consistently supported and guided Shimeier's growth over the years.

Since our founding, we have been charting a long-term path for homegrown consumer brands. Along the way, we've weathered market cycles and celebrated industry growth. The core force that has carried us here has never been short-term traffic—it's the mission and purpose embedded in our DNA from day one. Today, on behalf of management, I'm sharing Shimai'er's brand positioning, core value system, and long-term strategy with all stakeholders. We invite like-minded partners to join us in advancing high-quality development across China's food service and beverage sectors.

1. Brand Core Positioning: Building a Heritage National Enterprise Through Long-Termism

Since its inception, Shimai has established a core mission: to forgo short-term profit-seeking and build a legacy business. We have strategically focused on the catering and liquor industries—not driven by fleeting market opportunities, but by a deep understanding that these sectors are vital carriers of China's millennia-old cultural heritage. Catering preserves the rituals, culture, and aesthetic values of Chinese life, while the liquor industry embodies thousands of years of spiritual civilization. Both are essential people-centric industries central to consumer livelihoods and cultural continuity.

Shimei's industrial vision is rooted in deep, long-term commitment—rejecting short-sighted speculation—to build a century-old national brand that upholds quality responsibility, withstands market cycles, and endures across generations.

II. The 16-Character Core Value System: The Fundamental Guideline for Brand Management

Shimai's unshakable core values—"Serve the nation, build moral integrity for society, be a role model for children, and bring honor to parents"—guide all our strategic decisions, quality control, and team management. They are the spiritual anchor of every business action we take.

"Contributing to the nation's glory" is our mission as a homegrown brand. Today, the country is vigorously promoting high-quality development of the real economy and supporting the rise of domestic consumer brands—this is a historic opportunity bestowed by the times. Rooted in the local market, Shimai has built a full-link quality control system to create a benchmark brand that combines cultural depth with global competitiveness. Through industrial strength, we empower the upgrade of China's catering and liquor industries, helping traditional Chinese consumer culture reach broader global markets. This is our solemn commitment to the nation and the era.

"Upholding integrity for our customers" is the non-negotiable foundation of our business. At Shimai'er, we strictly adhere to the principle that "business ethics are human ethics." We have established a comprehensive traceability and control system spanning raw material sourcing, production processing, and end-user service to firmly eliminate industry practices such as inferior goods passed off as premium or adulteration. We will never sacrifice product quality for short-term market profits. By delivering genuine, high-quality products, we earn our customers' long-term trust. This is the cornerstone of Shimai'er's market presence and an unbreakable rule of operation under any circumstances.

Setting a positive example for children is our core responsibility to society. At Shimier, we believe a company's true value goes beyond generating profit—it lies in promoting constructive values for the community. Through concrete actions, we uphold the principles of practicality, integrity, and accountability, guiding all employees to model honesty, resilience, and responsibility for the next generation. In doing so, we reinforce the positive spirit that defines consumer brands.

"Bringing honor to our families" is our humanistic commitment to every team member. Brand growth relies on the support of each employee's and partner's family behind them. We consistently uphold "ensuring those who strive share in the brand's success" as our core business goal, guaranteeing dignified and fair income for all contributors to the brand. This ensures that every professional's family can take pride in their work—a true reflection of the brand's human warmth and the foundation of our team cohesion.

3. Core Business Philosophy: "Keep Secrets, Share Profits"

After years of industry practice, Shimai has established its core business philosophy: "Keep secrets within; share benefits with all."

"Confidentiality": The brand strictly protects all core intellectual property assets—including proprietary manufacturing processes, exclusive formula systems, and proven operational strategies—across all dimensions. This safeguards our competitive advantage and demonstrates our commitment to the long-term success of the brand, as well as to the rights of all partners and consumers. It is a fundamental respect for our business mission.

"Shared Prosperity" means the brand builds an open, win-win industry ecosystem where development gains are not monopolized by a few. Upstream suppliers, channel partners, and frontline retail staff are all essential components of this ecosystem. All participants work together to grow the industry pie and share in its success. We believe that only when every participant receives fair value returns can the entire ecosystem achieve long-term, healthy, and sustainable growth.

4. Long-Term Strategic Vision: A Century-Long Journey to Build a Legacy Brand

At a new development milestone, Shimai's long-term strategy is clear and focused. In the future, we will continue to increase investment in product R&D, iterate and upgrade our end-to-end quality control system, steadily expand our national market presence, and explore international growth paths. We remain committed to deepening our expertise in two core sectors: food service and the liquor industry. We also look forward to forming strategic partnerships with like-minded industry players to drive quality upgrades and cultural promotion within China's food service and liquor sectors.

Finally, I want to emphasize that Shimai is not a company driven solely by profit. It is a team of dedicated individuals united by a shared mission: building a national enterprise that makes all Chinese people proud. Thank you for listening.

Shimei · Long-termism, Grow Together

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