Dear Wingtech team:

  Thanks to the continuous contribution of all Wingtech members worldwide, we have achieved incredible breakthroughs and growth in the fields of semiconductor and product integration in 2021. On behalf of Wingtech's management team, I would like to thank you all for your hard work and continuous efforts!

  At the beginning of 2021, we made the decision to adhere to the path of high-quality development! The semiconductor and  product integration business sectors have undergone major adjustments in terms of structure, product areas, and strategic planning. And we decisively abandoned low-margin, low-growth products and markets that cannot bring sustainable value growth to Wingtech. Although this adjustment has caused us to experience numerous obstacles in such stages as market development, customer introduction, and product development, and the huge R&D investment and capital expenditure have also severely dragged down the short-term performance of the listed company, we still, as always, firmly hold the belief that we will achieve success in the end after going through these pains.

Wingtech's semiconductor business has achieved unprecedented profit and growth in the semiconductor business sector. After entering the semiconductor business, we increased its R&D investment to 9%, significantly expanded the R&D team in the Netherlands, the United Kingdom, Germany, China and Malaysia, and continued to expand our production capacity. We also increased investment in front-end wafer fabs and back-end assembling and testing plants in the United Kingdom, Germany, Malaysia, the Philippines, and China. In the first three quarters of 2021, wingtech's semiconductor business represented the best revenue and profit level in history.

Wingtech's product integration business sector has begun to transform. Our integration business has struggled through the most difficult stage, with gradual and continuous optimization. The business field has expanded from traditional mobile phone ODM to broader fields of tablet, laptop, IoT, server, automotive electronics, etc. We have successfully obtained more qualifications and introductions of more high-quality international customers in these new fields, thereby laying a solid foundation and creating unlimited possibilities for the future of our product integration business, leading to the successful transformation of our traditional integration business even in the difficult year 2021!

  The strategy of Wingtech Technology is divided into three stages:

  In the first stage, ODM system integration expands from consumer to industrial, IoT and automotive electronics fields, leading to more products, more customers and greater sales, making ODM business into a powerful hardware flow platform.

  In the second stage, Wingtech Technology will accelerate vertical integration and integrate and develop more components in the field of semiconductors and components through mergers and acquisitions, integration and self-development, thereby increasing our own supply capacity and form a safe and controllable supply system.

  In the third stage, taking semiconductor as the focus, Wingtech Technology will increase its investment and enhance innovation ability, thereby empowering components and system integration, comprehensively enhancing the core competitiveness of the whole machine products, and providing customers with those products that can only be provided by us or those we can provide with higher quality. And that is how we establish our company moat. Our ambition is to promote the strategic change of Wingtech Technology from a service company to a product company.

  At the Deep Dive executive meeting, we have identified our growth plan for the next 10 years, aiming to become a Global Leader in all segments of semiconductor and product integration.

  The five-year period of 2022-2026 is crucial for us to realize our great vision. On November 30, 2021, Wingtech announced at its Global Elite Partner Conference that in the next five years, it will provide cooperation orders of more than one trillion RMB, and will strive to promote the development of semiconductor, 5G intelligent terminal, IoT, automotive electronics industry together with global partners. In the next five years, Wingtech Technology will take semiconductor business and Delta optics as the innovation engines to empower Wingtech integration business, gradually establish its core capabilities, and to provide customers innovative products with continuous iteration.

  The year 2022, as the first year of Wingtech's new five-year plan, is full of both uncertainties and certainties. Study shows that with the popularity of electric cars, automotive semiconductor market will see a growth of more than 50%, industrial market will grow at a speed of more than 8% due to the permeation of AI and IoT, while the consumer electronics market may be relatively stable overall. The global economy is unpredictable with the changes of market environment, leading to huge economic uncertainties!

  But for 2022 Wingtech, we already have a lot of certainties in hand!

Wingtech's semiconductor business: semiconductor business has a huge advantage in the automotive semiconductor business. Our extensive product lines and customer base, increasing R&D investment, and rapidly growing wafer and packaging capacity will ensure an annual compound growth of more than 30%. Semiconductor business will increase its R&D investment from 9% last year to 15% this year and will add more than 2500 R&D engineers globally this year. Strong R&D investment has delivered some initial results, with many new products of IGBT, medium and high voltage MOSFET, analog, silicon carbide (SiC), gallium nitride (GaN) gradually entering mass production this year. The new 12-inch auto-qualified wafer fab in Lingang, Shanghai, will also be put into operation this year, which will provide a strong new capacity guarantee for semiconductor business in the future! New capacity in UK,Germany,Malaysia,the Philippines and China) will soon be released. Our continuous investment will meet the huge demand of our automotive customers and industrial and consumer market in the future, unswervingly supporting semiconductor business to pursue its ambition of becoming a ten-billion-dollar company.

Delta Technology: in 2021, we have successfully resumed shipment of rear-camera for the specific customer, from which we will strive for more projects this year. New Delta Technology will not only continue to serve the specific customer, but will expand into broader areas such as Android phones, Windows laptops, cars and IOT through the Wingtech’s system integration business, thus embarking on a fast track of growth. In order to support the development of Delta, we have invested Delta Zhuhai plant, which has increased capacity by 5 times that of Delta Guangzhou. The new capacity will provide a strong guarantee for Delta's future revenue of 10 billion USD. In 2022, Delta will usher in a new chapter of development.

Wingtech's product integration business: consumer electronics market this year is overall stable, but we have entered the specific customer, as well as the tablet, laptop, IoT, server, automotive electronics, among other areas of broader products. By doing so, we have embraced huge growth opportunities, with identified projects reaching our expectations! In 2022, the system integration business will usher in a transformative growth!

  Yes! This year, with uncertainties in the world and certainties earned by Wingtech, we, as a member of Wingtech, with the core values of "be upward, be kind, be warm" in mind, will complete projects one by one with our perseverance and determination, and turn uncertainties into certainties one after another with our hard work, thereby unswervingly moving towards our magnificent ten-year strategic ambition.

  Thank you! I myself, and all the management team of Wingtech will fight side by side with you, day and night, to overcome all the difficulties on the way forward, and to enjoy all the beautiful views during our great journey together.

  All that has passed will be the prologue of our future!

  Goodbye, 2021.

  In 2022, we will warm the world with dreams in heart!

Wing (Xuezheng Zhang)

Chairman and CEO of Wingtech Technology

January, 1, 2022