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cai rongjun’s new year speech: innovation leads the development, intelligence creates the future.

dear colleagues, happy new year!

as the bell of new year is about to ring, we are going to say good-bye to year 2017, in which we made elegant achievements, and meet with a challenging year of 2018. in the past year, tens of thousands of ofilmers’ wills united like a fortress, stuck to regard technical innovation, diligence and pragmatism as the basic and focused on creating value for customers. therefore, we achieved a quality increase in our business. right now at the beginning of 2018, i would like to express sincere appreciation to our staff and your families on behalf of the ofilm management team.

in the year of 2017, we strove for innovation and advancement of our business units, built industrial barriers to entry and made outstanding progress in the above work. in the field of optics, we completed the acquisition of sony electronics huanan co., ltd. we were qualified to supply for apple in their supply system and improved our technical skills and management level continuously. apple ceo tim cook commended that ofilm has ‘remarkable, precision work that goes into manufacturing the selfie cameras’ while visiting. ofilm seized the opportunity in dual-camera market in the trend while the domestic cellphones’ point of growth transferred from the traditional method of driving by shipment volume to the innovative counterpart of differentiated functions. we took advantage of our strength of optical innovation and module design, thus stood out in the industrial shuffle war of industrial concentration increase. ofilm actively jockeyed for position in developing the cutting-edge technology of 3d sensing while intensifying the arrangement in ar/vr field. the magical workshop bu achieved mass-production and dispatch as well as actively pushed the certification of new products, so that took the preemptive opportunities in the new trend of flexible touch and display represented by oled. in the field of fingerprint recognition, ofilm possessed scale-economic advantage in the aspect of pressing capacitive recognition. in the meanwhile, we took the lead to arrange in under-screen ultrasound area and optical fingerprint recognition area thereby occupying a leading position in the industry for both technology and capacity. during the development in 2017, ofilm was highly recognized and commended by customers and among the industry. core customers such as huawei and xiaomi awarded ofilm with core partner and the best strategic partner respectively. in successive five years, ofilm was listed in ‘top 100 chinese electronic information enterprises’, and in 2017 it was ranked no. 28. in addition, we were ranked top 50 in forbes’ asia-pacific best listed companies and acquired no. 234 in fortune china 500 list.

in 2018, we will departure again with courage. we are full of confidence to face the magnificent global market and industrial structure.

in the new year, we will attach more importance to making use of our leading advantage of innovative technology as well as enhancing our gene of independent innovation. we are going to insist on walking on two legs, which is to combine independent innovation and outward investment. meanwhile, ofilm will execute a strategy of a combination of three points. firstly, insisting on the globalized layout of research and development by employing top professional personnel teams and technical backbones to continuously improve our capability of scientific research and independent innovation. in japan, we have set up an image and optics research and development center, it will focus on developing optical image technology, algorithm, evaluation, automatic equipment and new materials and skills. additionally, we will encourage the innovation center in america to develop original technologies and explore new technologies and products. secondly, we will develop technical innovation with pragmatism. for ofilm, a high investment that gains no output is not reasonable, we must innovate in a practical way. thirdly, we value the capability of faults tolerance and correction. towards the uncertainties in technical innovation, we need to tolerant them to some extent and correct them in time. in the future, there will be various paths of technologies. we could send scouts and small units to explore. then specifically invest some more resources into projects that we have confidence with. once we make the decision, we will concentrate all firepower to conquer the highland in one move. in the aspect of micro-camera, ofilm has made breakthrough in 2 key components, which are lens and vcm, and will seize an opportunity to enter cmos area. in the field of touch-control, we are going to expand to new materials in upstream value chain. as for 3d sensing business, we have had a good command of algorithm and production of modules in the present, and will stress on arranging in upstream key components such as vcsel, doe and so on in the future. last but not least, in the field of automotive electronics, ofilm will give priority to developing two businesses, which are adas and intelligent cabin.

the upcoming five years are the golden age for high-technology intelligent manufacture, thus we must seize the opportunity to forge our core competence of intelligent manufacturing. we will persevere in pushing informatization and digitization of the managing system to make a practical and suitable information system. additionally, we will build an informatization panorama as well as improve product quality and cost control in all aspects. ofilm needs to continuously improve the level of automation in production and manufacture, and set the baseline of automation in producing process, thus achieving the goal of improving product performance, increasing production efficiency and lowering the cost. besides, we will improve the professional building of personnel team and enhance the stability of employees of key positions. we need to foster a group of professional and able to fight. through the program of career planning and share incentive, we aim to enhance the stability of technical and productive-related ‘rock’ staff that strive at the frontier of manufacture in each business units, and core technicians at positions such as r&d, design and engineering.

currently, ofilm has reached the highest shipment volume in the field of optics and photoelectricity, while still has room to grow profitability. our corporate has just changed the name to ‘ofilm technology’, which means a further step to make it clear of the positioning as a technology company. we will gradually augment the profitability and improve the ratio of return on net asset premised on ensuring the continuous and stable growth of operation revenue through extending the industrial chain and increasing the portion of high-end products.

the wind blows and the tide rises, we will hoist the sails to break the waves. the tasks are heavy and the path is far-reaching, so we need to whip the horse more frequent. in 2018, we will have more opportunities and challenges. the past has became history, yet the future is available to be created together by us. innovation leads the development, intelligence creates the future. let’s strive for making ofilm a top-class technology company in the worldwide.

every winter has an end, every spring will arrive.

everything will pass, everything will come.

good-bye, 2017.

hello, 2018.

chairman of ofilm

2017.12.31