——Speech at the 2002 Rifa Textile Machinery Joint Sub-supplier Symposium Dear guests: Good afternoon! On behalf of the Rifa Textile Machinery Business Division, I would like to extend a warm welcome to all the sub-suppliers and supplier representatives who came to participate in the "Rifa Textile Machinery 2002 Joint Sub-supplier Symposium". Today we gather together and communicate with each other. Based on the principle of "openness, fairness, justice, and integrity", we will discuss the cooperative relationship between OEMs and parts and components manufacturers (suppliers) on the basis of a win-win situation, and seek the best way to make Rifa Textile Machinery more and more successful in the national market Big. In 2002, we achieved relatively satisfactory results. In the textile machinery segment, more than 260 million sales and capital pools were completed. The entire group has set a record (97) in history. For the remarkable achievements of Rifa Textile Machinery, everyone here has made their own contributions. Over the past year, I would like to express my heartfelt thanks to everyone here for their strong support. The 2003 business goals have been determined, but to achieve the goals, we will have to spend a lot of energy and hard work, and we also have a great relationship with everyone here. Let me discuss some related issues with you: 1. About Integrity Cooperation Rifa is a dumbbell-shaped enterprise. Although some core components are produced by ourselves, most of the components are supplied by hundreds of sub-suppliers. Many products are trial-produced by our technicians and sub-suppliers. Due to the fierce market competition, there are several or more than a dozen products in the country that are currently being produced (especially more intense locally). Therefore, technical confidentiality will become more important. So far, we have shared with most The supplier has signed a confidentiality agreement, but there are still some sub-suppliers who do not comply with the agreement for immediate benefits, supplying the same or similar parts to our competitors, disrupting the entire market and making us passive (Shandong Yaguang Towels) The factory is an example). This behavior directly harms our interests, but it will eventually affect the interests of the sub-suppliers themselves. I have already stated this principle very clearly in the previous two meetings, and I don’t want to say it again. Next year, we will intensify our efforts in this regard. We will take the most severe measures to punish the sub-suppliers who are not trustworthy. If a company violates the principle of good faith, it will eventually perish. If a person violates good faith Principle, then this person will be isolated and helpless, with no place in society. In the past few years, Rifa is obvious to all. Rifa emphasizes integrity. We are willing to cooperate with companies that emphasize integrity, and it is a long-term cooperation.  2. About quality Quality is the life of an enterprise. Any enterprise that does not pay attention to quality will have a short lifespan. Since the first day of Rifa’s birth, President Wu Jie has talked about “the two basic points of quality and market.” Rifa has always put quality in the first place. Our equipment will have tens of thousands of parts, and most of the parts come from the manufacturers present, so the quality of the whole machine depends on the quality of the parts you provide, we must start from the source, Although we have certain monitoring methods to control the quality of outsourcing parts, our power is limited after all; it is impossible to invest a lot of manpower to conduct inspections. The quality of parts and components must be controlled by yourself. You are deceiving yourself if you have any luck. Qualified parts are installed on the whole machine and will be found in the customer's use. At that time, it will cause losses to customers, affect Rifa’s reputation, and lead to a decrease in the market, which will also affect your output. To be punished, the three parties are unwilling to accept the facts. Why should it happen? Next year, we will issue (supplement) some management policies for the sub-suppliers, conduct a comprehensive evaluation, and implement the elimination system. There are also quality and price reduction issues, which have always appeared in the past few years. As soon as the price is reduced, the quality problem will occur immediately. To be honest, our price reduction is often based on the increase in batches or the stability of the equipment or the decrease in the price of the whole machine in the market. The price will be lowered. You must reduce costs in terms of craftsmanship and improving the quality of personnel, instead of cutting corners and materials to make up for the price loss, otherwise there will be many quality problems (the dragon belt is the best example, why the quality of the dragon belt in the past two years often appears Problem) and lost supply opportunities. 3. Regarding processing equipment and management Rifa is constantly developing high-tech, high-precision new products, and a large number of sub-suppliers are constantly joining our team. Of course, some unqualified sub-suppliers are gradually being eliminated. This year, I visited many sub-suppliers with the Property Management Department and the External Inspection Division and found that many of the sub-suppliers’ equipment is very old and rudimentary. If you want to keep up with Rifa’s development pace, I think these sub-suppliers do not Adding equipment without improving on-site management is definitely not enough. In the long run, its business will become less and less. It is impossible to have new products for you to do, but any product has a life cycle. When the life cycle of a certain product is over Time, then you lose the opportunity to cooperate with Rifa. Therefore, I hope that our sub-suppliers must first strengthen their own strength and be willing to spend money on equipment instead of spending some money on consumption, such as building villas and buying cars, instead of investing in equipment modification. And Rifa has a lot of successful management experience, I hope everyone can learn from each other's strengths. Our goal is very clear, that is, we hope to cooperate with you in good faith, to manufacture first-class domestic equipment, to supply our customers, to occupy the market with the largest share, and to continue to grow and develop ourselves. We also hope that everyone here will join us. Develop and grow. December 28, 2002