Congratulations to Li Qiaorong on Your Promotion to Section Chief of the Quality Control Department - Speech by the Chairman of the Board

Before we formally commence the promotion ceremony, I would like to take a moment to express our sincere gratitude to our Acting Section Chief, Sister Yang.

Sister Yang was rehired by us after her retirement. She had worked for nearly thirty years at her previous company and retired with honor. Although she could have been enjoying a life of leisure, she remains in excellent health. Furthermore, due to a special connection with a particular client, I invited her to join KANOU. Her role has been to help us gain a deeper understanding of our client's needs, while also contributing the extensive experience she has accumulated over the past thirty-plus years to both the quality control team and the entire management.

Under these circumstances, Sister Yang joined us. Initially, we only hoped she would handle client liaison matters. However, as personnel changes occurred within the Quality Control department, she proactively took on more quality control-related responsibilities.

From the departure of the previous QC Section Chief until now, Sister Yang has consistently served as the Acting QC Section Chief. While this role is nominally an "acting" position and perhaps brings little tangible reward, she courageously accepted this significant responsibility out of her connection with KANOU, her trust in the company, and her sense of duty towards all colleagues here today.

Here, I would like to express my heartfelt thanks for the efforts Sister Yang has dedicated to the Quality Control department during this period.

Everyone may have their own measure of her performance. But what I want to say is, in this world, those willing to proactively take responsibility are already rare. For a company, results are undoubtedly important, but if everyone only chases results while neglecting the process and their responsibilities, good results become unattainable. Therefore, before we begin the promotion ceremony, I sincerely ask all colleagues to join me in giving a warm round of applause to express our genuine gratitude to Sister Yang!

Now, let us formally proceed to the promotion segment.

Over the past twenty years, we have gone through various phases. Unlike some companies that eventually transition into a "maintaining the status quo" mode, we have consistently been in the "building the empire" stage, constantly fighting for survival.

Every product at KANOU, whether procured externally or manufactured internally, must ultimately pass through the Quality Control department before being packaged and shipped to our customers. Every detail seen by our clients represents KANOU's reputation – from product appearance and dimensional accuracy, to packaging, labels, even the conscientiousness of an inspector's or processor's signature, and any accompanying documentation or reports. Each element reflects KANOU's commitment to quality. Therefore, the work of the Quality Control department is absolutely vital.

This role often tests not advanced technical skills, but rather one's sense of responsibility, persistence, and resilience. Before founding this company, I worked in quality control for over a decade. I understand deeply both the importance of QC to the overall operation and the inherent challenges of the role. The QC department doesn't receive applause for landing a major order like Sales. It doesn't visibly demonstrate success by negotiating lower costs or better lead times like Purchasing. Nor does it have the tangible output of transforming raw materials into finished products like Manufacturing. QC's work is manifested in the daily accumulation of meticulous details. Precisely because of this, many find it difficult to sustain. Maintaining one's original intention in a competitive environment is even more challenging.

Many struggle to understand why QC must repeatedly emphasize requirements, or why I persistently focus on QC improvements. Years ago, we often said, "Quality is the life of the enterprise." Without quality, we cannot build relationships with any client. Even if we gave all our products away for free, if the quality is subpar, it would merely become a burden for the customer. What clients truly need are products that meet their requirements. Thus, the QC department, as the final gatekeeper, must deliver products that embody the KANOU spirit and integrity – safely and on time – to our customers.

Some believe that QC personnel must be experts in inspection, machining, and assembly to be considered qualified. Having served as a QC Manager for over ten years before my entrepreneurial journey, I confess that upon leaving that role, I still hadn't mastered the measurement methods for all products, didn't know the specific processes for mold making, and had never operated any machinery. What I want to emphasize is that what QC personnel truly need is an unwavering adherence to the philosophy of quality, proactive management of the "4M" factors in production, and the ability to continuously learn and deeply understand customer needs. Everyone has their own strengths. The reason each of you joined KANOU is that your professional strengths find a place to shine here. Therefore, when evaluating a colleague's growth and promotion, we look not only at their skills or seniority, but more importantly at their comprehensive qualities and development potential. It is management's duty to place each colleague in a position where their strengths can be maximized. If we fail in this, we are derelict in our duty and cannot expect your best in return.

Today, I am solemnly promoting a colleague from the QC department. The impression she has left on me is this: in the field of quality management, her Japanese language ability surpasses mine; regarding the philosophy of quality, I believe no one else in the company can match her depth. Of course, whether she can continue to leverage these strengths depends on everyone's cooperation. Even before she officially joined, I clearly outlined the difficulties currently faced by this position. The role of QC Section Chief has seen several colleagues leave partway, not because they were lacking, but because the quality requirements here are sufficiently complex – complex enough to exceed their prior experience, complex enough to make it difficult to find clear direction.

The reason I've provided this context is to make it clear: we need a more competent, more capable person to shoulder this responsibility. This is not about applying pressure, but about acknowledging the inherent duties and responsibilities of the QC role. Today, filled with sincerity and anticipation, I join all colleagues in witnessing this promotion. Now, on behalf of the company, I will read the appointment letter:

To meet the company's development needs, optimize the organizational structure, and strengthen the quality management system, following deliberation by the company's management, it is hereby decided to promote Ms. Li Qiaorong to the position of Section Chief of the KANOU Quality Control Department. She will be fully responsible for the operational management of the Quality Control Department. This appointment is effective from October 1, 2025.

Please welcome Section Chief Li

KANOU's survival and development absolutely do not rely on low-price competition, but rather on the technology, quality, delivery, and service of our products. This is beyond doubt.

After Section Chief Li assumes her role, she may drive improvements within the QC department, and she might also point out areas where management needs adjustment. I solemnly call upon everyone here: Section Chief Li has joined us to address existing shortcomings, not to maintain the status quo. When she introduces new ideas, I hope everyone will actively consider – will these changes bring opportunities for growth and learning? We must not become complacent and resist change simply by saying, "This is how it has always been done." We encourage open discussion. If you don't understand, ask questions. If you don't know how to proceed, seek guidance. But we must never obstruct progress. Everyone is responsible for their own growth, just as I am responsible for the company's development. The company faces numerous challenges, and each of you has personal and family responsibilities to manage. Problems won't disappear on their own; someone needs to take initiative. When someone steps up to act, even if you cannot offer help, please refrain from cynical or discouraging remarks. This is a matter of basic conscience.

Taking advantage of this promotion ceremony, I want to emphasize once again: KANOU is facing serious challenges. There is room for improvement in every area – sales, procurement, supply chain, manufacturing, and quality control. The company is actively introducing resources and talent, including all of you present here, precisely because we hope you will continuously grow and become more outstanding, rather than settling into mediocrity. I hope everyone can understand the company's personnel adjustments, embrace changes with a positive attitude, and work together to drive growth.

Thank you all once again!