About the 2024 annual evaluation report of the "Improving Quality and Efficiency and Emphasizing Returns" Action Plan

and the 2025 special action plan of "improving quality, efficiency and return".

In order to practice the "investor-oriented" development concept and safeguard the interests of all shareholders of the Company, Shanghai Fudan Microelectronics Group Co., Ltd. (hereinafter referred to as the "Company" or "Fudan Microelectronics") disclosed the "2024 Action Plan for Improving Quality and Efficiency and Valuing Returns" on the Shanghai Stock Exchange on March 23, 2024. self

Since the release of the action plan, the company has actively carried out and implemented relevant work. Company on March 25, 2025

The 21st meeting of the 9th session of the board of directors was convened to deliberate and approve the "Annual Evaluation Report on the 2024 Action Plan of "Improving Quality and Efficiency and Emphasizing Returns" and the Proposal on the 2025 Special Action Plan of "Improving Quality and Efficiency and Emphasizing Returns", and the "Progress and Evaluation of the Implementation of the Action Plan in 2024" and "Main Measures in 2025" are reported as follows:

1. Based on the main business, continue to innovate and enhance the core competitiveness

In 2024, the company fully supported the innovative R&D of various product lines, significantly improved the efficiency of new product R&D, improved the diversified supply system, and invested about 1.142 billion yuan in R&D for the whole year, accounting for 31.80% of the operating revenue. The company has always attached great importance to scientific and technological innovation, and has continued to invest a lot of resources since its listing on the Science and Technology Innovation Board, with an average annual R&D investment of nearly 1 billion yuan. In 2025, the company is expected to maintain a steady investment in R&D to ensure the company's technological innovation and product innovation.

Statement of changes in R&D investment and operating income

Unit: 10,000 yuan

400,000.00 40.00%

300,000.00 30.00%

200,000.00 20.00%

100,000.00 10.00%

0.00 2021 2022 2023 2024 0.00%

R&D investment 74,892.45 88,610.18 118,958.61 114,166.37

Operating income 257,726.23 353,890.89 353,625.94 359,022.38

R&D investment/operating income 29.06% 25.04% 33.64% 31.80%

R&D investment Operating income R&D investment/operating income

(1) The progress of R&D and implementation of each major product line in 2024

Security & Identification Product Line: The company's ultra-high frequency (UHF) RFID tag chip FM13UF0051E passed

Tested by China Article Coding Center, it has obtained GS1 EPC global Gen2V2 certification, marking the product in

Consistent identification and transparent traceability around the world, providing reliable technology to customers around the world. At the same time, the NFC reader chip completed the release of automotive-grade products, successfully introduced into the automotive industry chain and achieved batch application.

Storage product line: EEPROM products break through the technical bottleneck of automotive-grade wide temperature, ultra-wide voltage, and low power consumption.

Key features are industry-leading. The company launched the SPD5 Hub for DDR5 module interface and

TS5 products, further enriching the portfolio; The development of a new process platform for NOR products is progressing as planned; SLCNAND 28nm new process products have been successfully used in security monitoring, PON optical modems, base stations and smart wearables and other fields.

Smart meter product line: MCU products complete 12-inch 40nm, 55nm and 90nm embedded flash memory work

In the future, the company will realize the complete layout of 12-inch and 8-inch process platforms, further expand the market share of key industries such as public utilities, smart home appliances, automotive electronics, and industrial control, and gradually launch a variety of high-performance industrial-grade and automotive-grade MCU products based on the 12-inch process platform.

FPGA & Other Product Lines: PSoC products have completed the 28nm product lineage and successfully developed a new generation

RFSoC series products using 1xnm FinFET advanced process. RFSoC single-chip integrated RF direct

procurement, signal processing, AI acceleration and other functions to provide low-power,

High-performance, high-integration, high-security, high-reliability product solutions, and currently have small batches of products for customer verification.

With technological innovation and product breakthroughs, a number of the company's achievements have been recognized by the industry: the "JFM7 100-million-gate high-performance FPGA" project won the top 10 Shanghai high-tech achievements transformation in 2024; "Fuwei Qinglong JFMQL100TAI900 Programmable System-on-Chip" won the 19th "China Chip" Award in 2024

Item; The "Digital Key NFC Reader Chip FM17661A" won the 2024 ICCE Outstanding Innovation Award. firm

It has also been successfully selected as the 2024 Shanghai Design Innovation Center (2024-2026) and the Shanghai "Quality Benchmark" (2023-2024) list.

(2) Main measures in 2025

In 2025, the company will continue to strengthen its innovation capabilities and system construction, and further enhance its core competitiveness: strengthen the introduction and training of high-level top-notch talents and scientific and technological backbones, optimize the structure of the R&D team, and enhance the overall strength of the team.

The security and identification product line will strive to promote the certification of the new generation of financial card products, achieve mass production as soon as possible, and cover more applications and markets through the research and development of series chips with different specifications for security certification; Continue to improve the existing identification products in the product line, and develop low-power wireless connection products and sensing products; Develop a tag chip with RF amplification to provide a good user experience for NFC contactless requirements in harsh RF environments.

The memory product line will continue to expand based on the next-generation EEPROM design platform, and be widely promoted and applied in low-voltage, low-power, high-reliability industrial and automotive scenarios, comprehensively upgrade and replace the company's existing product series, promote the development of DDR interface series chips, and further expand the application field and market share. Continuously optimize the full range of costs and algorithms of the 2Xnm SLC NAND platform, improve reliability, and improve product competitiveness.

On the basis of the completion of tape-out and assessment of the new generation of automotive MCUs, the smart meter chip product line will further promote mass production and on-board work, and promote more products to pass ASIL-B certification.

The FPGA and other product lines will continue to expand with next-generation process FPGAs and intelligent reconfigurable SoC products

R&D efforts to accelerate the process of product pedigree. Pay close attention to the construction of a diversified supply system, improve the supply guarantee ability of high-end products and new-generation process products, and consolidate and improve the company's comprehensive gross profit margin.

2. Pay attention to the improvement of management capabilities and enhance the operational efficiency of enterprises

In 2024, the company achieved significant results in achieving its quality and financial goals. In terms of quality objectives, the company has basically completed the quality indicators set in the 2024 Action Plan for Improving Quality and Efficiency, Ensuring Product Quality and Maintaining the Market Reputation of Fudan Micro Products through systematic management. In terms of financial quality, during the reporting period, the company completed strategic stocking, and the cash paid for the purchase of goods decreased significantly; The company's operating cash flow has improved significantly by strengthening market expansion and accounts receivable management, improving internal R&D efficiency and strengthening inventory management. Net cash flow from operating activities increased from -$708 million in the previous year to $732 million in the reporting period.

Changes in cash flow from operating activities

Unit: 100 million yuan

50.00

40.00

30.00

20.00

10.00

0.00

-10.00 2021, 2022, 2023, 2024

Net cash flow from operating activities 6.02 3.21 -7.08 7.32

Cash inflow from operating activities 29.84 39.54 35.82 34.77

Cash outflow from operating activities 23.82 36.32 42.90 27.45

Net cash flow from operating activities Cash inflows from operating activities Cash outflows from operating activities

Key measures for 2025. In terms of quality system, we will continue to strengthen the construction of quality system to high-quality products

Meet and exceed customer expectations with services, and continue to maintain market reputation. In terms of financial management, strengthen the company

Accounts receivable management, optimize the systematic collection mechanism and multi-dimensional collection measures for customers; optimize

Internal management mechanisms to incorporate collection rates into the sales team's KPIs. On the premise of ensuring the security of the supply chain,

Optimize inventory turnover, and establish a hierarchical inventory management mechanism and coordination mechanism according to inventory turnover. To the Lord

To sell products normally, make good use of information tools, improve forecasting ability, and ensure the balance of production and marketing; Yes less

For some unsalable inventory, it is necessary to determine the responsible departments and responsible persons, clarify the target, and speed up the turnover.

3. Continue to do a good job in shareholder returns

(1) Progress in implementation in 2024

In 2024, the company will adhere to reasonable returns to shareholders, and maintain continuity and stability in the profit distribution policy

Take into account the actual operation and long-term strategic goals. The company completed A on June 13 and July 10 of the same year

The cash dividends of shares and H shares totaled RMB81,906,040, accounting for 2023

11.38% of the net profit attributable to shareholders of the listed company. From 4 August 2021 to 2024

At the end of the year, the company's cumulative cash distribution was about 245 million yuan, accounting for 31.82% of the average annual net profit in the same period.

(2) Main measures in 2025

In 2025, the company will continue to implement cash dividends, and intends to distribute cash to all shareholders for every 10 shares

The dividend is RMB 0.8 (tax included), and the total cash dividend is expected to be 65,714,184 yuan (inclusive).

tax). The company will implement the relevant plan as soon as possible after the shareholders' meeting deliberates and approves the relevant plan.

Actively explore ways to use over-raised funds for new projects or repurchase the company's shares and cancel them in accordance with the law

Company market capitalization management provides an effective tool. Continue to do a good job of communicating with major shareholders, publicize and implement policies,

Encourage the exploration of various ways such as increasing holdings and extending the lock-up period to continuously improve the level of shareholder returns. Start at the right time

The revision of the Articles of Association has laid the institutional foundation for the company to do a good job in stable dividends and multiple dividends.

4. Maintain the stability of corporate governance

(1) Progress in implementation in 2024

In 2024, the Company continued to improve its internal governance system and organized directors, supervisors and senior executives to participate in a number of trainings organized by the Shanghai Stock Exchange and the Association of Listed Companies to enhance their ability to perform their duties and compliance awareness.

(2) Main measures in 2025

System optimization: Pay close attention to the revision of the "Guidelines for the Articles of Association of Listed Companies" of the China Securities Regulatory Commission, adjust the structure of the company's three committees in a timely manner, update the internal management system, and ensure that the company's standardized operation complies with laws and regulations.

Training for key personnel: Continue to organize directors, supervisors, and senior managers to participate in compliance training. Through training, we ensure that the "key minority" is kept abreast of the latest laws and regulations, improve their performance skills, and promote the overall improvement of corporate governance. At the same time, the company will continue to pay attention to the new regulations and regulatory trends in the capital market, and deliver relevant information to the board of directors and management in a timely manner.

5. Practice social responsibility and become a responsible corporate citizen

In 2024, the company attaches great importance to ESG work, actively practices the concept of sustainable development, and pays attention to environmental protection

protection and social welfare. The company continues to carry out public welfare projects such as "Snail Baby Choir", "Qiming Core Program", and "Skills Training for Older Youth" to help disadvantaged groups; Create the "Fuwei Cup" National College Student Electronic Design Competition to help cultivate talents in colleges and universities. With its outstanding contribution in the field of social responsibility, the company won the title of the 11th Shanghai "Charity Star". During the reporting period, the company won the National May Day Labor Award, which is a high affirmation of Fudan Micro's production and operation, scientific and technological innovation, management level, social responsibility and other aspects, and further demonstrates the determination of Fudan people to implement the development strategy of "standing up to the sky".

In 2025, the company will continue to deepen its ESG work and further enhance ESG in line with the requirements of Shanghai and Hong Kong

Build standards, actively fulfill social responsibilities, and contribute to sustainable development. Strive to stay in Wind

ESG, CSI ESG and other major rating agencies have received good ratings.

6. Improve the quality of information disclosure and enhance the effectiveness of investor relations management

In 2024, the Company will strictly abide by the Securities Law, the Listing Rules and other laws and regulations, and continue to improve the information disclosure management system to ensure that the information is true, accurate, complete, timely and fair. Online business is held three times a year

The performance briefing carried out a number of offline investor communication activities, and released the "Investor Relations Research Registration Form" through the SSE interactive platform, effectively safeguarding the rights and interests of investors.

Key measures in 2025: Hold no less than three online performance briefings throughout the year to provide investors with a detailed introduction to the company's performance and financial performance, and answer relevant questions. Conduct no less than 40 offline investor research activities throughout the year to actively convey the company's value, and at the same time timely feedback investors' concerns to the management, protect investors' right to know, and provide a strong basis for investment decisions. Optimize information disclosure, guided by the needs of investors, continuously improve the readability and effectiveness of information disclosure, ensure the equality of information access, and effectively safeguard the legitimate rights and interests of investors.

7. Continue to evaluate and improve the action plan

The company will continue to track the implementation of the action plan of "improving quality, efficiency and return", and fulfill the obligation of information disclosure in a timely manner. In the future, the company will continue to focus on its main business, enhance its core competitiveness, profitability and risk management capabilities, and effectively protect the interests of investors, fulfill its responsibilities as a listed company, repay investors' trust, and maintain the company's good market shape through excellent operation and management, standardized corporate governance and positive investor returns

to help the steady and healthy development of the capital market.

The forward-looking statements of the company's planning and development strategy involved in this report are not fait accompli, and do not constitute the company's substantive commitment to investors, and investors are advised to pay attention to the relevant risks.

Board of Directors of Shanghai Fudan Microelectronics Group Co., Ltd

March 26, 2025