Greetings for the Year of the Tiger from Richful Deyong!

With the ever-changing situation and uncertain economic development in 2022, the world has entered a new phase of “coexisting with the pandemic”. Last year, China's economy led the recovery from the recession caused by COVID-19 and has become a new model for social development to combat the pandemic. We expect to see more economies restarting, opening their borders and adopting the coexistence model in 2022. We are likely to see more promising changes and improvements in the service sector, in particular. I would like to share with you the key areas of focus for Richful Deyong's business services practice in 2022 below.

Focus 1: RCEP will deliver a strong boost to the post-pandemic global economic recovery

The relationship between China and the US has changed profoundly, and it would be difficult to return to the pre-trade war situation in a short term. Therefore, China's foreign trade is bound to shift towards free trade zones. Notably, the Regional Comprehensive Economic Partnership Agreement (RCEP) took effect on January 1, 2022. The world's largest free trade agreement (FTA), the RCEP was settled at a difficult time, against the challenges of the pandemic and the headwinds of economic globalization. This highlights its importance as a leading driver of a new round of economic globalization. With the newly signed international agreements coming into effect in 2022, RCEP will certainly accelerate the reshaping of the global economic landscape and the restructuring of the international economic and trade rules, driving imports, exports, and foreign investment. Chinese enterprises will be able to cast their nets overseas and enjoy the advantages of the geography of the Association of Southeast Asian Nations (ASEAN) market. Having maintained its position as ASEAN's top trading partner for 10 consecutive years, it is foreseeable that the Chinese cross-border enterprises will find more diversified opportunities in the ASEAN region in 2022. We will leverage our Group's presence in Asia to provide Chinese companies with one-stop business services overseas.

Establishing a Corporate Legal Entity

Accounting & Audit Services

Monthly accounting and financial reports, tax returns, and annual audits in accordance with local tax compliance requirements.

Industrial Park Services

Guiding enterprises in scientific site selection and layout to reduce investment risk and improve development efficiency.

Focus 2: Challenges and opportunities for cross-border e-commerce sellers under new regulations

2021 was not a particularly good year for the cross-border e-commerce industry. Having experienced unprecendented obstacles, such as account stealing, sea freight price swelling, and power rationing, cross-border e-commerce sellers have learned the hard way how volatile the business environment can be. The only way for enterprises to enter other markets is to proritize business and financial compliance. With increasingly stringent global tax regulatory policies and environment, cross-border e-commerce enterprises inevitably face many compliance challenges overseas. With experience serving over 30,000 international trade clients, Richful Deyong provides professional and strategic advice to cross-border e-commerce sellers to help them build local business structures, regulate capital flows, and fully utilize national export tax rebate policies.

Cross-border E-commerce Local Stores

For buyers, the shopping experience always comes first. Key features include: convenience, low commission and shipping cost, fast settlement, high rank, prioritization of activities and resources. These standards apply to every stage of the customer journey, from logistics efficiency and after-sales service to local store priority ranking.

The Richful Deyong team leverages the Group's service network across 49 cities globally to quickly respond and provide localized solutions, setting up local companies for cross-border e-commerce sellers and providing local director services. We also provide global deployment solutions for large cross-border e-commerce sellers, fully utilize bilateral tax treaties to set up corporate structures for our clients, including red chip structures and variable interest entity (VIE) structures.

Cross-border E-commerce Foreign Investment Filing (ODI)

The phenomenon of cross-border e-commerce enterprises not complying with foreign exchange collection and regulation of company capital flow has also attracted our attention. Richful Deyong's professional legal and financial management teams work closely to assist cross-border e-commerce sellers to submit due diligence, feasibility study reports, investment funds sources, environmental, social, and governance (ESG) analysis and evaluation, and other preliminary work for external investment. We also help sellers compile the explanatory material for implementation, and approval of the project through the materials.

Cross-border E-commerce Joint Empowerment

In 2021, we cooperated with Alibaba, Amazon, WISH, Walmart, OTTO, and other internationally renowned cross-border e-commerce platforms, and jointly held overr 100 online and offline seminars for nearly 30,000 entrepreneurs. By building a complete industry chain and quality ecosystem for cross-border e-commerce, we provide professional services to help Chinese cross-border e-commerce brands establish their footprints abroad.

Focus 3: Considerations for High Net Worth Private Wealth Under "Common Wealth" Target

Both high net worth individuals (HNWIs) and wealth management experts will regard 2021 as a year that introduced numerous wealth management-related policies. It was marked with the establishment of the Hainan Free Trade Zone, the Common Wealth Demonstration Zone, and the steady promotion of the real estate tax legislation. The amendments of these laws and regulations will exert a profound impact on the wealth of HNWIs. With the Civil Code and related judicial interpretations in force, more people are beginning to pay attention to the independence of their family trust property. Under the spirit of “the third distribution”, insurance, trusts, and charitable funds may become the standard of wealth management in the future. We are observant of these changes and will keep abreast of the times to continue enhancing our services to better meet the diversified needs of our clients.

Richful Deyong Escorts Chinese Companies' International Expansion All the Way

Chinese companies going global should fully grasp and implement the local requirements to protect local labor, environmental, data and privacy, and also intellectual property. Enterprises should also ensure compliance with relevant regulations in terms of anti-corruption, anti-bribery, anti-monopoly, trade control, and financial taxation. These challenges posed to businesses are also opportunities for us, Richful Deyong, to leverage our expertise and demonstrate our value.

With 12 offices in Mainland China, including Beijing, Shanghai, Shenzhen, Guangzhou, Hangzhou, Ningbo, Qingdao, Dalian, Tianjin, Nanjing, Fuzhou and Xiamen, together with the synergy of the Group's international professional services team, we will be able to better support Chinese companies to pursue their ambitions of international expansion!

Richful Deyong will continue to excel in 2022.

Best wishes,

Micael Gong

CEO

Richful Deyong, A Tricor Company