On the evening of April 26, Duolun Technology released its 2020 Annual Report. In the first half of the year, as the epidemic spread, the business was under pressure for a short period of time. Faced with the challenge, the Company took active measures and worked hard, laying the groundwork for future development. With effective outbreak control put in place, the Company secured sustained rebound across all its business segments. The revenue in the second half of the year increased by 10.14% year on year. And for the year ended on December 31, 2020, the revenue reached RMB636 million and the net profit attributable to the parent company was RMB79.54 million.

In 2020, the Company kept on fueling its development with scientific and technological innovation. The efforts included strengthening technological and product advantages in various fields such as intelligent network connection, stepping up the development of new products and markets such as smart motorcycle driving test and digital vehicle administration, developing new business models to lead digital transformation of the consumer service industries such as driver training and vehicle inspection, and accelerating the transition from a tech firm to a “tech + service” company. All these endeavors provide strong support for the company’s fast, sustainable, and high-quality development in the future. Specifically speaking, in 2020, the Company focused on the following areas:

1

Rapidly Expanding Business-to-Customer Services

Smart Driver Training and Smart Vehicle Inspection Show Bright Prospect

Centered on transportation service, the Company continued to improve its business portfolio and optimize its strategic layout, providing consumers with services such as intelligent driver training and smart vehicle inspection. In 2020, though challenged by the epidemic, the Company still achieved favorable growth and fast business expansion, laying a solid foundation for the Company’s future development.

As a leader pioneering business model innovation for the smart driver training industry, the Company created a light-asset operation mode—by partnering up with driver training institutions. By doing so, the Company provides trainees with safer, standard and more effective driver training experience. The Company is leading the digital transformation of the industry supported by deepening market penetration. Its intelligent driver training cloud platform, the “DoDo Driver” APP, recorded 41,078,900 annual active visitors, an increase of 25.14% over the same period last year, and attracted RMB 84.2041 million in service revenue, an increase of 28.78% year on year.

In the field of smart vehicle inspection, the Company continued to increase investment through convertible bonds and other means. By the end of 2020, it has completed the acquisition of over 50 vehicle inspection stations and kept improving the brand of its chain operation in key areas. In order to seize development opportunities in the industry and secure fast business growth, the Company strengthened integrated digital operation management capabilities, actively engaged in the formulation of China’s new energy vehicle testing standards, and strove to generate new growth points based on comprehensive business planning.

2

Growing Trend of Digital Upgrade across the Industry Market

Smart Vehicle Administration and Smart Traffic Business Showing Steady Development and Bright Prospect

The Company mainly provides state-of-the-art products, solutions and services to target customers such as driver training institutions and the government. Supported by various factors including policy guidance, there is a growing trend of digital upgrade across the industry market, which generates vast business opportunities for the Company.

The Company continued to consolidate its leading position in the smart driving test industry and promote technology buildup and product innovation. Its new products such as smart motorcycle driving test system have passed customer’s acceptance check and earned wide recognition. With the transition period of the new national standard for electric bicycles coming to an end, along with the implementation of other policies, related businesses are expected to achieve fast and significant growth. The Company plans to extend its business to cover the full spectrum of the vehicle management industry chain and create room for business growth.

The Company actively seized opportunities arising from new infrastructure construction and industry development. It strengthened research and development and market promotion of products such as adaptive signal machines and cloud control platforms, and increased deployment of forward-looking innovative businesses such as intelligent network connection, thus achieving rapid business coverage expansion and effective business growth.

In 2020, the Company centered on the three elements of “people, vehicles and roads” of transportation and deepened its strategy and business transformation, which produced immediate results. In the first quarter of 2021, the revenue reached RMB232 million, representing an increase of 572.76% year on year; net profit attributable to the parent reached RMB22.2756 million, turning loss into profit.

Going forward, the Company will continue to implement the established strategy, drive technological innovation and optimize product R&D system, and build a win-win business collaboration ecosystem. It will step up the development of service segment, improve business operation and secure the high ground for strategic businesses to support rapid and high-quality growth of the Company. Based on its time-honored commitment, the Company promises to make every effort to create long-term value for customers, employees, shareholders and society.