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2021 Message from the Shiji Board of Directors

The Board of Directors of Shiji Group, would like to extend new year's greetings, sincere wishes and heartfelt thanks to our partners, customers, investors and staff!

On the eve of the Lunar New Year of 2021, we, the Board of Directors of Shiji Group, would like to extend new year's greetings, sincere wishes and heartfelt thanks to our partners, customers, investors and staff who have supported us and been involved with the development of the company over the years

The year of 2020 was a crucial year in the globalization of our company, but also a year filled with uncertainty and challenges.

With the sudden outbreak of COVID-19, the hospitality industry was struck with restrictions in travel and social distancing measures. As a company that provides core operation systems for the hotel, food and beverage, retail, entertainment and other major consumer industries, we discussed effective measures to deal with the resulting economic situation alongside our customers. We strategized to help our customers develop new business plans and adapt existing strategies through our technology and innovative solutions to improve their overall business.

Shortly after the outbreak, we decided not to renew our hotel industry-related partnership with Oracle when it expired at the end of May 2020. Since then, we have focused on the research and development of our own technology products where we don’t have restrictions. We have taken the opportunity to dedicate our efforts to the development and bringing-to-market one of our biggest projects, the new generation platform, Shiji Enterprise Platform.

At the end of September 2020, Shiji Group sold all shares of StayNTouch, in accordance with the Executive Order issued by the US Administration. Although the sale of StayNTouch affected the short-term net profit of the company, it did not involve the main technology solutions we developed independently. Upon completion of the Committee on Foreign Investment in the United States (CFIUS) audit, we increased our efforts and investments on the security of our solutions and we continue to ensure data security first in all our products, solutions and operations.

Despite the headwind of 2020 on so many levels, we have continued with our strategy of product innovation and growth of the Shiji Enterprise Platform with a series of achievements. These include: taking the leading global position in cloud-based hotel services using big data, implementing cloud services in more than 70,000 hotels around the world, and achieving global recognition for Infrasys Cloud POS from three of the world's top five influential hotel groups who have implemented Infrasys as their global standard. Infrasys Cloud POS has successfully passed legal and fiscal certifications in dozens of countries around the world. Shiji Group is now a major global POS provider and one of the leading suppliers in technology for the global hospitality industry.

The launch of our biggest milestone project, the cloud-based Shiji Enterprise Platform has been in pilot in a dozen hotels from a variety of European hotel groups and has since received positive feedback from our customers. In September 2020, Shiji Group and The Peninsula Hotels, an internationally renowned luxury hotel group, announced a landmark partnership deal where The Peninsula Hotels will fully adopt the entire Shiji Enterprise Platform. At present, the integration of all of the group's applications has been completed. The successful launch of Shiji Enterprise Platform with The Peninsula Hotels is expected to have a significant effect on the industry in the years to come. With this partnership and the acceleration of Shiji Group's R&D in 2020, the platform became a leader in terms of technical infrastructure and product functionality, features that are critical for the detail-oriented luxury hotel industry.

Looking forward to 2021, the global pandemic is both a challenge and an opportunity for our industry. Since the outbreak, the industry has been accelerating the pace of digital transformation. Due to the significant improvement in operational efficiency brought by cloud systems, the effects from the pandemic will intensify the demand for cloud-based technology. International hotel groups are gradually recovering and are paying close attention to cost-control and efficiency. Shiji Enterprise Platform will provide global hotel groups with a wide scale of solutions to support them in their recovery and digital transformation.

This year we will continue to develop our own technology solutions, take the opportunity to create more innovation with our R&D teams, grow our global team and customer service, accelerate the internal integration of the group, and continue to promote our new generation of cloud products to the global hotel industry. We believe 2021 will prove to be a significant year for Shiji Group as the company expands its global customer base and continues to make technological advances with Shiji Enterprise Platform.

In 2021, we will transition further towards developing our own technology and reducing reliance on third-party technology providers for our core solutions. These accomplishments will be achieved through the talent of our global teams and their dedication to innovation for our industry. Over the years, our extensive deployment of technology in hotel, food and beverage, retail, and entertainment industries, in addition to our leading position in payment, distribution, and data have laid a solid foundation for Shiji to become the leading IT provider for the global hotel industry. We have created a strong and distinctive advantage, which will further lay a solid path for the entire field of big consumer technology. The talents and resources that we have brought together over the past 20 years have been the driving force of our group. Shiji Group's Board of Directors strive to work together with all staff to continue building a brilliant future for the company and our customers.

The Board of Directors of Shiji Group wish you a splendid Lunar New Year!

Board of Directors, Shiji Group

February 7, 2021

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