Steady pace, focus on business! China Zhongji Investment continues to cultivate high-end manufacturing and medical health.

      Looking back at 2022, the global capital market experienced ups and downs, and significant changes also occurred in the global manufacturing industry. From the beginning of the year to the present, China has experienced repeated outbreaks of the epidemic in many cities, including Xi'an, Shanghai, and Beijing; internationally, the global energy crisis triggered by the Russia-Ukraine conflict, fluctuating trade environment, raw material shortages, and the aggravated impact on the global supply chain; the new round of interest rate hikes by the Federal Reserve led to the return of foreign capital from emerging markets, exchange rate fluctuations, and the US-China game led to the reconfiguration of industrial and supply chains, etc. Many factors have profoundly affected the global manufacturing industry. The stock market also indirectly verifies this, with the Nasdaq Composite Index falling more than 32% year-to-date in the secondary market, and the Shanghai Composite Index falling 15.13% year-to-date. Despite numerous disturbances, China's manufacturing industry has shown resilience, with growth in export manufacturing compensating for the shortfall in domestic demand, maintaining relatively stable development, but still facing many challenges.

      Despite the considerable uncertainty in the market, China Zhongji Investment continues to invest according to its own investment logic, firmly optimistic about the development of high-end manufacturing and medical health. In 2022, China Zhongji Investment completed investments in leading synthetic biology company Fengyuan Biology and leading semiconductor material company Xinyihu Materials, and participated in high-quality early-stage medical projects such as Haowei Medical and Zhongyin Technology. At the same time, we have also harvested multiple IPO projects. United Imaging Intelligence, invested by China Zhongji Investment at the end of 2019, successfully listed on the STAR Market in 2020, becoming one of the top companies with a market capitalization of over 100 billion yuan; Haiguang Information, invested in 2020, also successfully listed on the STAR Market, becoming one of the top companies with a market capitalization of over 100 billion yuan; and Xuanzhu Biology, a leading innovative drug company invested at the end of 2021, also successfully submitted its IPO application materials to the STAR Market in September 2022. It can be said that it is a year of great joy.

      While maintaining the investment pace, China Zhongji Investment has also sunk its overall business. In 2022, the trend of the domestic secondary market was like a roller coaster, with the three major indexes showing a downward trend, and the valuation pressure of the entire market was transmitted to the primary market. China Zhongji Investment slowed down its investment pace, paying more attention to the long-term development and investment value of enterprises, and increased the intensity of post-investment management, doing everything possible to help invested enterprises. We communicate with enterprises about their development dynamics every month, understand their difficulties in a timely manner, help them connect with businesses and funds, and provide timely feedback on development suggestions. At the same time, we have strengthened industry research work, forming research groups in several sub-sectors such as high-end manufacturing, semiconductors, and medical health, regularly researching popular sub-sectors, forming internal industry research in-depth reports, and the research results can be used as a reference for primary market investment in project selection and value judgment. Despite the impact of the cold winter in the primary market, Zhongji has steadily improved its internal skills.

      In 2022, through the efforts of the team, China Zhongji Investment still achieved good results. In terms of project exit, we successfully achieved the listing of two projects with a market capitalization of over 100 billion yuan. The successful listing of United Imaging Intelligence and Haiguang Information brought substantial returns to investors and shareholders; we have also reserved a number of promising projects for listing in the medical health and high-end manufacturing fields. Projects expected to apply for listing next year include: Suiyuan Technology, a high-end AI chip computing company; Fengyuan Biology, a leading synthetic biology company; Aipoche, a leading intelligent transportation company; and Blue Arrow Aerospace, a leading private rocket company. Through cooperative funds, we have laid out a number of angel seed projects with huge potential, including the Yunxin Medical Fund, which we cooperate with Huayi Capital, which has strategically laid out more than a dozen early-stage projects, including Fushou Kang, Boyun Biology, Zhongyin Technology, Kekai Life, and Haowei Medical, etc. These projects are expected to bring greater returns to China Zhongji Investment and its shareholders.