As we bid farewell to the Year of the Jade Rabbit and welcome the Year of the Golden Dragon, on behalf of our company, I would like to take this momentous occasion to extend our heartfelt wishes to all our employees, customers, suppliers, and shareholders.

May the Year of the Dragon bring you all prosperity and invigorate your life with the dynamic energy and vibrant spirit of the dragon and horse!

In 2023, thanks to the optimization of COVID-19 epidemic prevention policies, we observed a gradual recovery in consumer spending. As a primary beneficiary, the food and beverage industry, which is ORG's main downstream sector, was among the first to witness a rebound. This led to a steadily growing demand and a continuous expansion of ORG's business.

In 2024 ORG celebrates its 30th anniversary. Over the past three decades, ORG has successfully navigated a volatile business landscape, and emerged victorious in the face of intense competition, thanks to our unwavering commitment to excellence. As we mark this significant milestone, we foresee three key strategies that will underpin ORG's growth and development for the next 30 years, setting the stage for our future success.

1.     Advancing Leadership through Mergers and Acquisitions

Thanks to the collective efforts of all staff members, ORG has consistently led the domestic metal packaging industry in revenue for many years. Our strategy combines an integrated approach for managing production capacity across the nation with a comprehensive integrated service model. This strategy has solidified ORG's position in the three-piece can sector, allowing us to maintain close collaborations with customers and achieve consistent growth in the production of cans for energy drinks, plant-based protein beverages, and various food products. During the pandemic, ORG successfully finalized the merger and integration of the former Ball Asia Pacific's operations, this enhances our ability to fulfill customer orders more effectively. This strategic move, coupled with the expanding markets of beer and carbonated beverage, has swiftly propelled us to a leadership role in the two-piece can industry.

"Energy Ring Can" designed by ORG to boost the coffee-flavored energy drinks produced by Dayao.

Two-piece can packaging for Lulu Almond Milk.

ORG's eco-friendly empty cans for COFCO Tunhe.

The metal packaging sector presents a reliable growth opportunity and generates positive cash flow, and it is an area where ORG is poised to make substantial contributions.

The adoption rate of canning in China's food and beverage industry significantly lags behind the global average, a gap which is anticipated to narrow over the time. This shift is expected to fuel consistent demand for metal packaging. Furthermore, the emphasis on recycling metal packaging and increasing environmental consciousness will bolster this upward trend.

Within this industry trajectory, ORG is looking to emulate the development strategies of a global leader, Ball Corporation. Our goal is to remain customer-centric, capitalize on opportunities for mergers and acquisitions to continuously increase our market share, enhancing industry concentration, and further solidifying our leadership position and industry standing.

Improving supply-demand dynamics and industry consolidation are crucial for the healthy and sustainable growth of the industry ecosystem. Moreover, the transformation of the industry landscape is set to offer advantages to those who lead the way.

2.     Expanding Global Reach for International Growth

The overseas market displays significant consumption growth, driven by factors such as younger populations, higher income levels, and optimistic development expectations. This is a market that undoubtedly warrants our attention.

ORG has laid extensive groundwork for its international expansion.

Our effort is marked by two significant milestones: becoming the exclusive Chinese partner of the NHL Boston Bruins and acquiring the European football club AJ Auxerre. These strategic moves have not only introduced us to these two counties respective business practices, but have also created a platform for business cooperation, signifying the start of ORG's journey on the global stage.

A Football Match of AJ Auxerre

Following the acquisition of Ball Asia Pacific's operations, ORG forged a long-term partnership with Ball, collaboratively seeking global business opportunities and ventures. The subsequent acquisition of Australasia’s JAMESTRONG PACKAGING, allowed us to integrate supply chains, customer relations, and production management, thereby gaining valuable insights into offshore operations.

Navigating the global market is an imperative in this era, and ORG is well-prepared to demonstrate its willingness to participate.

With an open-minded approach, we are partnering with COFCO Packaging to establish production bases in Central and Eastern Europe, aiming to cater to international clients. We are meticulously researching markets such as Southeast Asia, Eastern Europe, and the Middle East, to identify promising investment opportunities. Aspects such as products, branding, production capacity, technology, and management are all potential starting points for our global expansion. For ORG, going global is a must, yet our strategic moves are contingent upon finding the ideal timing and opportunity.

As per an ancient Chinese proverb: “Shouldering immense responsibilities, our efforts shall not be in vain” we look forward to a breakthrough.

3.     Innovating Products and Services for the Future

Innovation is embedded in ORG's DNA, and without innovation we would not be able to reach our present achievements.

Always striving for more, ORG is perpetually searching for fresh scenarios, adapting to new demands, and keeping pace with changing consumption patterns. Whether it's our line of ultra-processed can products or components for clean energy batteries, our offerings are at the forefront of innovation, designed to meet the latest trends in industrial development.

Perfect synergy between our own-brand products and innovative can designs.

ORG has revolutionized its business model by launching brands like "Xiwang" sports drinks, "LeK" craft beer, and "Yuanben Shanliang" ready-to-eat meals. We utilize unique packaging solutions such as integrated aluminum cans, cannon-barrel-shaped cans, and bowl cans to provide consumers with a novel experience that prioritizes taste, health, and safety.

ORG own-brand product: "Xiwang" sports drinks

ORG own-brand product: "LeK" craft beer

ORG own-brand product: "Yuanben Shanliang" ready-to-eat meals

This approach has provided our downstream customers with more options, while attracting more well-known brands to adopt ORG’s integrated aluminum cans, cannon-barrel-shaped cans, and bowl cans, leading to rapid growth in the production volume of these new products.

The ready-to-eat meal sector is experiencing rapid growth, yet the market still lacks high-quality products.

ORG has crafted a holistic approach to this market, encompassing metal bowl packaging, laminated steel, digital printing, in addition to product such as pre-steamed rice. Notably, laminated steel — an innovative technology pioneered by ORG — stands out as an exemplary packaging material. It addresses the safety concerns of leakage and corrosion, which are common issues due to the high oil and salt content in traditional Chinese cuisine.

Our aim is to provide consumers with access to convenient, tasty, and safe dining options, even in the midst of their hectic schedules.

The clean energy battery sector presents considerable opportunities, underscored by an urgent requirement for the standardization and automation of components.

ORG has established a cutting-edge production line for clean energy battery components in Zaozhuang, securing acceptance from strategic battery customers and enabling production of high-quality products for their suppliers. ORG is also seeking new customers by leveraging unique technologies such as tapered components, dual-sealing technology, and laminated steel. These innovations are designed to elevate quality, reduce costs, and boost efficiency, positioning ORG at the forefront of industry's needs.

ORG’s production bases in Zaozhuang

We believe in doing well by doing good, and long-term success is achieved through perseverance.

In conclusion, there is every reason for optimism in the consumer sector. As China's economic growth increasingly hinges on domestic consumption, Chinese people’s unwavering aspiration for a better life serves as a solid foundation. Fortified by our wisdom and diligence, we are poised to unveil new drivers of economic growth, enhanced confidence, and elevated expectations. This, in turn, will stimulate consumer spending and lead to an overall improvement in living standards.

Change is the only constant in this world, and ORG is well-prepared to navigate through these changes by excelling in our endeavors, positioning us at the forefront of industrial evolution. With a focus on leadership, embracing global markets, and pioneering innovation, our commitment to excellence ensures that we continue to deliver value to our downstream customers and end consumers, offer a robust career platform for our employees, and yield substantial returns for our shareholders.

We are excited to embark on this journey together with you!

Feb 10, 2024

Chairman : Zhou Yunjie