The global economy is at an increased downside risk in 2022 due to continued global economic gloom and rising uncertainties caused by factors such as trade frictions and geopolitical tensions. This is a time full of long cycles, great transformations, huge turbulence and big games, but it is also a time to achieve something great. In 2022, FOTON has been steadily advancing its globalization strategy with focus on customer value and core business. Up to now, it has achieved fruitful results in both traditional fuel vehicles and new energy commercial vehicles. Particularly in Southeast Asia and Latin America, it has achieved full leadership in the truck segment. Statistics show that FOTON exported a total of 87,000 commercial vehicles in 2022, up 0.8% year-on-year, accounting for 14.8% of China's commercial vehicle exports. FOTON has ranked No.1 in China for the 12 consecutive years.

The sharp edge of a sword comes from the whetstone. The complex overseas market is likewise a "testing ground" for FOTON's overseas personnel. Knowing what the market needs and dare to upgrade accordingly will eventually get a positive feedback from the market. In response to the complex working conditions in Africa, FOTON successfully introduced an economic heavy-duty truck, which was highly accepted in the market. As of now more than 500 of such trucks have been delivered to international alcoholic beverage companies such as NB and NBC. At the same time, in order to solve the pain points that drivers often get fatigued while driving in medium and long-distance transportation, Foton launched AUMAN GTL AMT version.

Likewise, in Latin America, FOTON has successfully launched the AUMAN EST AMT mid-to high-end heavy-duty truck by targeting at the local demand for AMT heavy-duty trucks. AMT heavy trucks are still dominated by European and American brands. However, FOTON is able to provide a very competitive vehicle experience for its customers with its perfect after-sales service system. FOTON was the first Chinese brand to launch an AMT product in Colombia. With AMT accounting for more than 40% of the market in 2022 in Colombia, FOTON AMT becomes the most "trusted challenger" against European and American products.

As we all know, the European Commission has resolved to ban the sales of new gasoline and diesel vehicles in the EU from 2035. This means that the global market for the new energy vehicles is on a fast track, not just in Europe. With years of layout and leading technology, FOTON's new energy business has been growing rapidly in 2022.

A number of new energy products including FOTON's electric trucks, VANs and buses have passed the EU WVTA certification (EU Whole Vehicle Type Approval), making access to the high-end markets such as Europe and Singapore, which also demonstrates that FOTON's new energy technology, product quality and supply chain have fully met European standards. Meanwhile, on November 29, Foton and Piaggio Group signed a cooperation agreement on new energy commercial vehicles in Italy to jointly develop new energy products and enabling them to enter the EU market, providing electrification solutions for the European light commercial vehicle market. Since then, FOTON has taken new energy as the leading business and opened a new era of "independent + cooperation" dual-way operation in Europe.

As one of the most representative products of FOTON New Energy, FOTON electric buses secured an order for 1,022 units of electric urban buses from Chile in 2022. The deal marks the largest ever order for Chinese-made electric city buses for the foreign market. After the arrival of 1,022 units of FOTON electric buses in Chile, the FOTON electric bus fleet will become the largest in Chile, reaching 1400 units. FOTON new energy city buses and hydrogen fuel cell buses have established their presence in global markets such as Mexico, India, Australia, New Zealand, India, Egypt, working for public transport networks, and airports and other core scenarios.

As a complement to electrification, FOTON also launched a new generation of traditional fuel light trucks such as MILER and TUNLAND G7 in Latin America, Southeast Asia and other markets to meet individual needs for urban logistics and urban life, providing efficient transportation solutions for users.

In terms of soft power, resources across the entire value chain from sales, after-sales to accessories have been fully empowered both online and offline; The terminal sales staff has been fully qualified and improved in professional skills and knowledge reserve and sales skills; The terminal offline network is fully empowered and improved in image by promoting the regular touring of caravans and establishing sales, service and product training systems; FOTON is moving to take a core market as pilot to optimize the end-user experience in the process of purchasing and after-sales by creating a user app to connect pre-sales and after-sales services, and by developing a new mode of data-based services; Foton828 online sales carnival has been successfully held for 3 sessions, which connects global dealers on the occasion of Foton's anniversary to communicate with the world. Focusing on spreading brand culture, fan interaction and providing purchase services, Foton Carnival has secured more than 4,000 orders and become a unique online IP image of Foton in overseas market.

At the start of the global economic and social cycle, the golden age of high growth, low inflation and great moderation has gone, and the risks of low growth and high inflation have gone up suddenly. With new energy commercial vehicles as the driving force, FOTON will deepen its operations in strategic markets such as Europe, strengthen regional empowerment together with dealers and partners to drive regional value growth, boost brand confidence with product strength, further improve after-sales service by offering a data-driven vehicle purchase and after-sales experience. In doing so, FOTON aims to develop the "New FOTON" in the new global economic cycle and realize the "New Value" in the post-globalization era by building a new generation of commercial vehicle solutions for customers.