In the blink of an eye, the extraordinary year 2022 is about to bid us farewell. For Xuantai New Materials, this year has been marked by both opportunities and challenges. Under the wise guidance of the company’s leadership, we have closely adhered to our business philosophy—“surviving through quality, pursuing development with quality, and achieving efficiency from quality”—thoroughly understood the market, rigorously focused on quality, and united all employees in their concerted efforts and tenacious spirit. As a result, we’ve achieved certain successes in all aspects of our work.

1. Grasp the right direction and find the right positioning to smoothly complete production tasks.

New situations and new changes call for new thinking and new initiatives. At this critical juncture, 202 2 January of the year ， The company organized all cadres and employees at or above the middle-management level to... Analyze and discuss the project with an annual output of 3,000 tons. The analysis will cover several aspects, including the reasons for project improvement, improvement plans, technical upgrade proposals, estimated costs for the improved project, economic and social benefits, and the progress of the improvement efforts. Monthly production The 3,000-ton improvement project was explained in detail, and a comprehensive, actionable plan was developed. Subsequently, guided by this plan, all departments and positions within the company made unremitting efforts toward achieving the production targets. As a result, by the end of May 2022, the monthly production capacity increase and technological upgrade project—targeting 3,000 tons—was successfully completed. All. This year, the company’s output reached 21,000 tons, doubling the figure from 2021 and successfully fulfilling the production targets set at the beginning of the year. In response to the issue of a single product structure, the company—from top management to frontline staff—has continuously explored new avenues, boldly taken risks, and constantly optimized and improved its production processes. To date, the company has successfully developed three major product lines—ultrafine high-white aluminum hydroxide, boehmite, and alpha-alumina—comprising 12 different product types. Moreover, new products are still under continuous development, completely addressing the shortcomings of a single product structure.

II. Continuously strengthen internal control management and constantly improve management standards.

To further standardize the company’s management, strengthen the construction of its internal systems, enhance management levels, and promote the institutionalization, standardization, and scientific development of all operational tasks, under the leadership of General Manager Su Xu in 2022, heads of various departments rigorously implemented measures, taking system building as the foundation, improving product quality as the key driver, and enhancing customer satisfaction as the ultimate goal. They continuously reinforced personnel and production management. Management has always been placed at the center of our efforts—achieving efficiency through management and driving development via effective management practices. We have adhered to systematic management and continually improved the company’s integrated system encompassing quality, environment, and occupational health and safety. In 2022, the company further refined and revised the Management Manual (Version A/2), updated and perfected 27 procedural documents, revised and improved 70 management systems, updated and refined 20 job-specific safety and technical operating procedures, and 42 equipment safety operating procedures, and recompiled 22 operation manuals and 15 control specifications. These comprehensive efforts have further standardized and strengthened the company’s system framework, enhanced its internal management system and operational mechanisms, and provided strong support for the company’s high-quality development.

3. Strengthen quality control efforts and comprehensively enhance product quality.

Quality is the lifeblood of a company. Currently, the aluminum powder market is becoming increasingly competitive, making it even harder for companies to survive. Once quality issues arise, they can cause enormous losses to downstream customers. Therefore, focusing on quality is by no means an emergency measure—it’s a long-term strategic decision that directly affects the company’s survival and development, its ability to expand into new markets, and its capacity to serve customers effectively. In 2022, the company consistently placed quality at the forefront of its priorities. While ensuring production output, the company also attached great importance to product quality—from... Quality inspection management for raw materials entering the factory, Next, we meticulously control every step—from product manufacturing and packaging to storage, shipping, and factory release—focusing on each critical stage and key point. We also leverage pre-shift and post-shift meetings to promptly instill a strong quality mindset among employees, fostering in them the awareness that they themselves are the first line of quality inspectors. To standardize the company’s quality management, clarify quality management responsibilities, and achieve our annual quality objectives, the company has specifically strengthened the staffing of the Quality Management Department and assigned dedicated personnel to take full responsibility for quality control throughout the entire process. We hold regular monthly quality analysis meetings to study and discuss potential factors affecting product quality, implement preventive measures, and develop and execute specific actions to prevent the recurrence of any nonconforming products that may arise. We firmly believe that product quality is created through production itself. As long as every employee in the company maintains a high level of quality awareness and integrates this mindset into every aspect of production and operations, we will undoubtedly be able to produce high-quality products that meet market demands and satisfy our customers.

4. Actively expand sales channels to significantly boost product sales.

In 2022, our sales efforts were guided by the principle of “centering on the market, following the market’s lead, and adapting to market changes.” We placed particular emphasis on market orientation, leveraging the coordinated collaboration among production, sales, research, and application. By closely monitoring the market frontlines and taking into account material balances, market prices, and supply-demand dynamics, we made rational arrangements for product sales. Despite the significant impact of the pandemic in 2022, our company rose to the challenge, tackled difficulties head-on, and boldly explored new ideas and approaches, achieving steady progress amid stability and moving toward continuous improvement. Throughout this year, we have consistently upheld the philosophy of “diligently exploring the market and serving customers with dedication,” placing customers at the heart of everything we do and providing them with products and services that meet their highest expectations. We have been committed to creating an all-encompassing, end-to-end, and fully-covered “immersive” service experience. As a result, our sales performance in 2022 took a major leap forward, reaching nearly 20,000 tons in annual sales volume—a doubling compared to 2021.

Today’s innovation is the result of yesterday’s efforts; tomorrow’s innovation will depend on the sincerity and effectiveness of today’s actions. Whether our achievements or shortcomings have already become history, in the face of a market undergoing rapid and unpredictable changes, we still have a long road ahead of us. In 2023, we must continue to muster our full energy and forge ahead with courage. With the fighting spirit of "striving vigorously and forging ahead" and the commitment to "steadfastly pursuing our goals without slackening," Posture Let’s strive to achieve even greater success, write new chapters of brilliance, and continue our glorious legacy amid new strategic opportunities and emerging risks and challenges!