Shanghai Hehui Optoelectronics Co., Ltd

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

In order to practice the development concept of "investor-oriented" listed companies, Shanghai Hehui Optoelectronics Co., Ltd. (hereinafter referred to as the "Company") actively responded to the Shanghai Stock Exchange's "On Carrying out Listed Companies on the Science and Technology Innovation Board".

On March 30, 2024, the initiative of the "2024 Annual Action" was first released

"Improving quality and efficiency and emphasizing returns" action plan", and continued to evaluate the implementation of the action plan and the implementation effect. In 2024, the company earnestly implemented the action plan of "improving quality, efficiency and return", completed all the action goals set, and achieved remarkable results in focusing on the operation of its main business, enhancing its core competitiveness, strengthening R&D and innovation, optimizing operation and management, and protecting the rights and interests of investors.

In order to continue to consolidate the foundation of high-quality development and enhance the ability to create value, the company has formulated the "2025 Annual Report"

Improving quality and efficiency and emphasizing returns". The company evaluated and explained the implementation and effectiveness of the 2024 action plan, and on this basis, proposed optimization goals and improvement measures for 2025. The details are as follows:

1. Focus on the main business operation and continue to consolidate the core competitiveness

2024 target: operating income is expected to increase by more than 30% compared with the previous year, and net profit is expected to be maintained compared with the previous year

Steady growth.

Actual completion in 2024: The company closely focuses on development goals, focuses on its main business, and fully develops

Leveraging the advantages of production capacity and new technologies, optimizing product structure, and diversifying customers, the operating performance has been significantly improved. During the reporting period, the company achieved operating income of 4958.3118 million yuan, a year-on-year increase of 63.19%, of which overseas operating income was 1353.1559 million yuan, accounting for 27.29% of the operating income in the reporting period; net profit improved year-on-year, with a decrease of 726.3402 million yuan from the loss in the same period last year; After excluding interest, depreciation and amortization, the EBITDA was 45.6115 million yuan, an increase of 1052.7213 million yuan over the same period of last year. The company's net cash flow from operating activities increased by 105.6706 million yuan over the same period last year; Gross sales margin improved significantly, by 40.58 percentage points year-on-year.

1. The product structure continued to be upgraded, and the operating performance reached a new high

In 2024, the company's AMOLED display business will achieve both volume and price increases, and its operating income will increase by 63% year-on-year.

It is much greater than the growth rate of shipments, demonstrating the strategic effect of continuous upgrading of product structure. Look at the field by field, medium size

The performance of the product line is particularly bright, with the annual shipment of tablet and laptop AMOLED displays exceeding 3 million pieces, a record high, among which the laptop AMOLED display products have achieved a million-level mass production breakthrough for the first time, driving the revenue in this field to surge by more than 180%.

In the field of smart wearables, the company continued to launch innovative products, and mass-produced two new Hybrid products in the first half of the year

With the advantage of light and thin, it quickly opened the market and was widely praised by end product users; At the same time, we will cooperate with brand customers to develop new LTPO flexible products, which will continue to maintain the company's advantages in the wearable field and expand the market share in the high-end wearable field.

In the field of smart phones, while maintaining the steady growth of hard screen shipments, the company cooperated with customers to develop nearly 10 new AMOLED products for flexible mobile phones throughout the year, driving a good trend of stable growth in operating income.

In the field of tablet computers, the company continued to make breakthroughs at the commanding heights of technology and successfully achieved the world's first 12.X inch

2.8K+144Hz Tandem AMOLED display, the industry's first 4320Hz PWM dimming 1X.3-inch display

The mass production and shipment of innovative products such as display screens have consolidated the company's leading position in the field of flat panel display.

In the field of notebook computers, the company reconstructs product value with technological innovation and mass-produces 14.X-inch VRRs

The technical indicators of products such as dynamic refresh rate display and 1X.6-inch 97% screen-to-body ratio display lead the industry, driving notebook AMOLED shipments to rank first in China.

In the field of in-vehicle aviation, both shipments and operating income increased by more than 200% year-on-year. The company has two types of vehicles

Tandem AMOLED's new products will be mass-produced and delivered in the second half of the year, and the product application will be extended from the central control to new scenarios such as passenger entertainment, rear-seat entertainment and streaming media rearview mirrors. The product line for aerospace applications covers multiple sizes and models from 15.6 to 27 inches, and all of them have begun mass production and delivery, and the demand continues to be stable.

2. Build a foundation for lean production quality, and integrate digital intelligence to reduce costs and increase efficiency

The company continues to strengthen lean production management capabilities, adheres to the refined management of the whole process, and has achieved remarkable results in quality management, cost reduction and efficiency increase, and information construction.

In terms of quality management, the company strictly implements the whole process of product quality management, continuously improves product quality, and steadily improves production yield. At present, the company has passed the certification of ISO9001 quality management system, QC080000 hazardous substance management system, and IATF16949 automotive quality management system, and continues to promote the establishment and improvement of advanced quality management system, integrate system requirements into various business processes, and ensure continuous improvement of product quality.

In terms of cost reduction and efficiency increase, the company continued to strengthen cost control and comprehensively control production costs such as energy consumption and material consumption.

And through equipment improvement, the introduction of new automation equipment, product design and inspection process design optimization, etc., while ensuring the stable operation of production, reduce operating costs and improve production efficiency. The company strengthens the procurement management of raw materials, strengthens the in-depth coordination with the upstream and downstream supply chains, and makes every effort to promote the localization of raw materials, introduces an online bidding mechanism, and adopts the material appraisal committee for collective decision-making of important materials, so as to reduce costs and increase efficiency and improve the quality of operations.

In terms of informatization construction, the company strives to promote the intelligent and green development of enterprises, integrates "digitalization" and "intelligence" into all aspects of production, management and operation, realizes the full digital management of core production and testing links, and greatly improves production efficiency and product yield. At the same time, it also monitors energy consumption at all levels in real time through digital means, realizes dynamic optimal energy scheduling, and empowers energy conservation and cost reduction. In 2024, the company's scenario of "combining software and hardware to help energy conservation and emission reduction in the manufacturing process of optoelectronic products" was successfully selected into the list of the first batch of application scenarios for the collaborative transformation of digital and green manufacturing industry in Shanghai. The supply chain management system independently developed by the company won the "2024 Electronic Semiconductor Industry Supply Chain Excellent Solution Award" at the 2024 China Electronic Semiconductor Digital Intelligence Summit.

3. Continue to promote project construction and increase the proportion of advanced production capacity

In order to cope with the huge capacity demand brought about by the rapid growth of the market in the medium and large size field, the company accelerated the release of production capacity, and actively promoted the construction progress of fund-raising projects, further increased mass production capacity, and enhanced the supply capacity of the company's products. At present, the company has built 2 production lines of different generations to meet different downstream application fields and differences

Diverse needs of specification type products. Among them, the mass production capacity of the 4.5th generation AMOLED production line is 15K/month;

The original planned production capacity of the 6th generation AMOLED production line was 30K/month, and all of them have been mass-produced; The company raised funds in the initial offering

The investment project "6th Generation AMOLED Production Line Capacity Expansion Project" aims to increase the production capacity of the existing 6th generation AMOLED production line from 30K/month to 45K/month, and the project is currently progressing in a safe and orderly manner, of which the production capacity of 7.5K/month will be mass-produced in March 2025.

In order to adapt to the technological development trend of the industry, enhance the market competitiveness of products, and meet the needs of high-end AMOLED panel products for the latest technologies such as LTPO, Hybrid, Tandem, etc., the company actively promotes the construction of fundraising projects, and at the same time, upgrades the technology of the production line by adding some equipment, etc., to further increase the proportion of advanced production capacity.

In 2025, the company's business target is that operating income is expected to increase by more than 10% over the previous year, and net profit is expected

Maintaining stable growth compared to the previous year.

The company will continue to focus on the operation of its main business, continue to enhance and consolidate its core competitiveness, and promote the continuous upgrading of its product structure, with the following specific measures:

1. Increase market development efforts and continue to lead the medium-sized track

At present, the AMOLED market is moving from small and medium-sized displays such as smart wearables and mobile phones to tablets and laptops

While continuing to deepen the field of small and medium-sized AMOLED semiconductor display panels such as wearables and mobile phones, the company will also dig deep into the market space in the fields of flat panels, laptops, and intelligent cockpit displays, and continue to explore new application scenarios such as picture books, portable displays, medical treatment, and aviation entertainment, and strengthen cooperation with customers, accelerate overseas business layout, and continue to lead the new track in the field of medium-sized high-end AMOLED displays.

2. Accelerate the construction of projects and increase the proportion of advanced production capacity

The company will focus on promoting the technological upgrading and capacity release speed of the initial raised funds investment projects to meet the demand for the latest technologies such as LTPO, Hybrid, and Tandem for high-end AMOLED panel products, improve the supply capacity of the company's new technology products, and increase the company's market share; At the same time, it actively promotes the listing of the company on the Stock Exchange of Hong Kong Limited, in order to accelerate the internationalization strategy and overseas business layout, enhance the company's overseas financing capabilities, continue to increase the production capacity ratio of high-end AMOLED panel products, continuously strengthen the company's core competitive advantages in the field of AMOLED, consolidate and enhance the company's industry position, and achieve the company's sustainable development.

3. Continue to refine management and efficiently promote cost reduction and efficiency increase

The company strengthens refined management, integrates "digitalization" and "intelligence" into all aspects of production, management and operation, realizes the full digital management of core production and testing links, and helps greatly improve production efficiency and product yield; The company also strengthens the procurement management of raw materials, strengthens the in-depth coordination with the upstream and downstream supply chains, and at the same time rigorously and scientifically promotes the localization and substitution of raw materials, so as to reduce costs, increase efficiency and improve the quality of operations.

4. Strengthen the control of safe production and respond to the national dual carbon strategy

The company strictly implements safety production, focusing on "four zeros: 0 accidents with serious injuries or above, 0 occupational diseases, and 0 fires."

disaster, 0 environmental pollution incidents", continue to strengthen the company's safety production standardization construction and safety culture construction, strengthen enterprise safety control, resolutely eliminate potential safety hazards, continue to strengthen employee safety education, and improve the safety awareness of all employees; Strictly abide by various environmental protection laws and regulations, actively respond to the national dual carbon strategy, formulate energy conservation and carbon reduction goals, optimize the energy management system, continuously improve the company's energy conservation and carbon reduction management level, reduce the company's energy expenditure and operating costs, and enhance the social image of the company.

5. Improve operational efficiency and strengthen financial management

The company will continue to implement cost management and comprehensive budget management, strengthen internal control and supervision, implement refined management of production and operation, and improve operational efficiency. On the premise of protecting customer needs, the company will continue to optimize the stocking policy, improve the inventory turnover rate, reduce the amount of funds occupied by the inventory, improve the efficiency of capital use, and keep up with the needs of market customers, strengthen market sales, and promote the digestion and turnover of inventory in accordance with the stocking plan. The company will strengthen the daily management of accounts receivable, increase the recovery of accounts receivable, pay attention to the actual collection of accounts receivable, overdue collection, timely follow up on overdue accounts, take appropriate collection measures, and improve the turnover rate of accounts receivable. The company will effectively reduce operating costs, improve operating efficiency, promote the development of its main business, and effectively improve the company's ability to deal with debt risks.

6. Broaden financing channels and reduce capital costs

The company has reserved and integrated a number of bank resources, and has cooperated well in project loans and working capital loans, and the company's current loan interest rate is lower than the benchmark interest rate, and the credit line in the bank meets the capital needs of the company's production and operation. In the future, the company will pay close attention to the relevant national industrialization policies, preferential capital policies, market interest rate changes, foreign exchange fluctuations, etc., make full use of the opportunity of the state to support technology-based entities, carry out deeper cooperation with banks and other financial institutions in many fields, promote the establishment of diversified business relationships, optimize enterprise operation and management, improve credit rating, broaden financing channels, continue to meet the company's production and operation needs and reduce the company's capital costs.

2. Strengthen R&D investment and enhance scientific and technological innovation capabilities

2024 target: R&D investment increased by 5% year-on-year, and the number of patent proposals exceeded 260.

2024 Actual Completion: As an innovation-driven enterprise in the field of AMOLED displays, the company holds:

In 2024, R&D expenditure will reach 495 million yuan, a year-on-year increase of 5.01%, accounting for 9.99% of operating income. In terms of R&D achievements, the company has applied for a total of 372 patent proposals, which have been newly authorized

There are 34 invention patents and 59 utility model patents, and a number of municipal government projects have been undertaken and completed, with 15.1-inch vehicles

AMOLED display was selected in the "2024 (first batch)" <上海市创新产品推荐目录>and EC303BC73. The B (12.3-inch) display was selected as the best practice in the "2024 Product Quality and Reliability Innovation".

Practice "Typical Cases". As of December 31, 2024, the company has a presence in China, the United States, Japan, South Korea, and

A total of 1,243 patents have been granted by patent offices in Europe and other countries and regions, including 883 invention patents, further improving the patent layout in the field of AMOLED technology and promoting the company's high-quality development.

1. The company adheres to R&D and innovation, and is committed to continuous breakthroughs in the cutting-edge technology of AMOLED

In 2024, more than 10 new technologies will be successfully completed, continuously empowering product competitiveness. The company has

Build a full-scenario technology matrix covering smart wearables, smartphones, tablets/laptops, in-vehicle displays, and aviation displays, including new forms of hybrid displays, Tandem laminated display technology, Eagle drive circuit sets, dynamic frequency conversion technology, flexible technology, TOE technology, LTPO technology, etc. Through the application of various cutting-edge technologies, the company's products have more advantages in terms of weight, thickness and strength, which can meet the needs of customers for high-end AMOLED semiconductor display panels.

2. The company accelerates the transformation of the achievements of the latest technical solutions and continues to consolidate its leading position in technology

In 2024, the company will mass-produce more than 30 new products in various application fields, realizing Hybrid, Tandem,

The application of a number of cutting-edge new technologies such as high-frequency PWM dimming. Among the iconic products is the Hybrid

Thin 1.8X inch AMOLED wearable display; 12.X-inch Tandem OLED Tablet Soft Light Eye Display

display screen; A 1X.3-inch AMOLED 3K high-brush 144Hz tablet display with 4320Hz risk-free dimming

Shield; 14-inch AMOLED 2.8K high-brush 144Hz laptop display; The 14.X-inch AMOLED is ultra-thin and stiff

Plasma film ultra-thin laptop display, PC industry 4320Hz UHF PWM risk-free dimming; High lifespan

Tandem 13-inch/15.1-inch OLED car display; 21.X inch/27 inch 4K aviation screen and other products.

3. The company's excellent R&D and innovation achievements have been recognized by industry authorities

In 2024, the company won the "Innovation Award" of the 2024 China Listed Companies Forum; 1.5-inch LTPO new

The wearable integration technology development solution won the "Silver Award of the 2024 International (Shanghai) Display Technology and Application Innovation Exhibition";

A 14-inch 2.8K AMOLED display with the industry's most advanced Hybrid technology and Tandem

The double-layer evaporation technology, equipped with the company's unique new drive circuit system, won the "12th China Electronic Information Expo (CITE 2024) Innovation Gold Award" and "2024 International (Shanghai) Display Technology and Application Innovation Exhibition Gold Award".

In 2025, the company will continue to increase R&D investment and innovation in products, and R&D investment will increase year-on-year

5% longer, with more than 260 patent proposals, maintaining the company's leading position in new technologies, new processes and new products;

Actively deploy AMOLED display forward-looking technology, and accelerate the promotion of Tandem tandem tandem evaporation technology, LTPO technology,

The mass production of industry-leading AMOLED display technology, such as hybrid ultra-thin glass with thin-film packaging technology, medium and large-size TOE high-sensitivity flexible touch technology, etc., which are being actively deployed by domestic and foreign customers, empowers the development of enterprises with technological innovation.

3. Improve corporate governance and ensure continuous and standardized operation

Since its listing, the company has been strictly in accordance with the requirements of relevant laws and regulations, by ensuring the operation of the three committees, establishing and improving the company's internal control system, etc., to continue to standardize the company's operation, improve the level of corporate governance, and promote the company's high-quality development. The company has established a corporate governance structure composed of the general meeting of shareholders, the board of directors, the board of supervisors and the management, and has formed a mutual coordination and mutual check and balance mechanism with clear rights and responsibilities and standardized operation between the power organs, decision-making bodies, supervisory bodies and management, which provides an institutional guarantee for the company's standardized and stable operation.

In 2024, the Company amended the Articles of Association, the Independent Director System, and the Rules of Procedure of Special Committees

"Internal Control Evaluation Management System" and other institutional documents, and newly formulated the "Working Rules for the Special Meeting of Independent Directors", in order to actively implement the reform of the independent director system and ensure the standardized operation of the company. In order to improve the ESG governance structure, give full play to the leadership and decision-making role of the board of directors in ESG management, and promote the sustainable development of the company, the company renamed the "Strategy Committee of the Board of Directors" as the "Strategy and ESG Committee of the Board of Directors", added ESG-related management responsibilities on the basis of the original responsibilities, and simultaneously revised the relevant systems to ensure the effective implementation of the company's ESG work from the institutional level. The Company continued to strengthen the training of directors, supervisors and senior management, organized and participated in the 2024 special training on the reform of the independent director system, the special training on the "Sustainability Report" (ESG) of listed companies, and the special course on "Key Points and Suggestions for Independent Directors of Listed Companies to Perform Their Duties against Fraud", etc., to improve the self-discipline awareness of directors, supervisors and senior management, improve the standardization of work and the scientific and efficient decision-making, improve the risk prevention mechanism, and promote the high-quality and sustainable development of the company.

In 2025, the Company will continue to improve its corporate governance and ensure its standardized operation, with the following specific measures:

1. Promote the construction of corporate governance and improve the level of corporate governance

In accordance with the relevant laws and regulations such as the Company Law and the Securities Law and the relevant provisions of the Articles of Association, the Company will take the maximization of the interests of the Company and shareholders as the code of conduct, improve the strategic decision-making ability, risk and internal control ability of the Board of Directors, give full play to the role of various special committees, and improve the level of corporate governance of the Company.

2. Promote the optimization of the internal control system to ensure the company's legal and compliant operation

The company will continue to promote the optimization of the internal control system, strengthen the company's internal control management, improve its ability to resist risks, and promote the company's strategic development goals on the basis of ensuring the legal compliance of operation and management, asset security, authenticity and integrity of financial reports and related information, and improving operational efficiency and effectiveness.

3. Strengthen the training of laws and regulations to ensure the stable and sustainable development of the company

The company will continue to strengthen the training of directors, supervisors and senior managers, actively organize and participate in the training of relevant laws and regulations and the study of rules and regulations, improve the self-discipline awareness of directors, supervisors and senior managers, improve the standardization of work and the scientific and efficient decision-making, and constantly improve the risk prevention mechanism to ensure the healthy, stable and sustainable development of the company.

4. Strengthen investor communication and improve the transparency of information disclosure

2024 annual goal: hold at least 3 performance briefings, organize and receive various investor research activities

Conduct no less than 12 times and disclose the record of research activities in a timely manner to ensure that SSE E is replied to within 2 trading days

Investor questions on the interactive platform.

Actual completion in 2024: The company held the 2023 annual results briefing and the first half of 2024

The performance briefing and the third quarter performance briefing vividly demonstrated the company's operating results and financial status. As of the disclosure date of the report, the company has organized and received a total of 12 investor research activities and responded to 43 investor questions on the SSE interactive platform.

The company has formed a corporate philosophy of serving investors and respecting investors, and strives to create value for the majority of investors while the company's sustainable and healthy development. The company attaches great importance to investor relations management, and has been adhering to an open and honest attitude towards every investor, and maintaining effective communication and benign interaction with investors. By facilitating the exercise of shareholders' rights, information disclosure, interactive exchanges and research reception, the company strengthens communication with investors and potential investors, enhances investors' understanding and recognition of the company, so as to improve the level of corporate governance and the overall value of the enterprise, and achieve the purpose of respecting, rewarding and protecting investors.

In 2025, the company will continue to strengthen communication with investors to protect their rights and interests, and the specific measures are as follows:

1. Build multi-level communication channels

In 2025, the Company will continue to build multi-level communication channels with investors, hold at least three performance briefings through platforms such as the "SSE Roadshow Center", actively organize and receive various investor research activities, and disclose the research activity records in a timely manner, so as to ensure that it will reply to investors' questions on the SSE interactive platform within 2 trading days. The Company will actively interact with investors through various channels and methods such as statutory information disclosure, performance briefings, investor research, investor hotlines, public mailboxes, SSE E interactive platforms, and investor relations columns on the Company's official website, and arrange special personnel to be responsible for maintaining the above channels and platforms to strengthen communication with institutional investors and individuals

Investor communication, maintain effective communication and benign interaction with investors to help investors better understand the company.

2. Improve the investor consultation and feedback mechanism

The company will continue to improve the investor consultation and feedback mechanism, improve the transparency of information disclosure, gain an in-depth understanding of the actual demands of investors, and respond to them through various channels. On the basis of compliance, investors can fully and timely understand the company's operating conditions and development strategies, strengthen exchanges and communication with investors, and enhance investors' trust and support for the company.

3. Enhance the transparency of information disclosure

The Company will further strengthen the transparency of information disclosure, and strive to improve the readability of information disclosure announcements while ensuring that information disclosure is true, accurate, complete and timely. In the periodic report, the company discloses and compares and analyzes the development trend, business model, core competitiveness, business plan and other industry and operational information of the AMOLED industry by citing reports from third-party authoritative institutions. At the same time, the company uses videos, graphics and other forms that are easy for investors to understand to strengthen the publicity and interpretation of temporary announcements and regular reports, vividly display the company's performance and operation, so that the majority of investors can fully understand the company, enhance investors' trust in the company, and recognize the company's value.

5. Pay attention to investor returns and enhance the company's long-term investment value

1. Shareholder dividend return planning

In order to further improve and improve the profit distribution policy, establish a scientific, sustainable and stable dividend mechanism, increase the transparency of profit distribution decisions, and safeguard the interests of the company's shareholders, according to the relevant provisions of the China Securities Regulatory Commission's Notice on Further Implementing Matters Concerning Cash Dividends of Listed Companies, Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies, and the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange, the Company has formulated the Shareholder Dividend Return Plan within three years after the company's listing, and has published a dividend return plan for shareholders within three years after the company's listing. It has made corresponding provisions on profit distribution, clarifying the decision-making mechanism of the company's profit distribution and the adjustment principle of the profit distribution policy.

The company will strictly implement the profit distribution policy, actively promote the profit distribution to shareholders under the condition of meeting the profit distribution conditions, and increase the implementation of sustainable, stable and scientific returns to investors, so as to effectively protect the legitimate rights and interests of public investors.

2. Stabilize the stock price plan

In order to maintain the stability of the company's stock price, in accordance with the requirements of relevant laws and regulations such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, and the Opinions of the China Securities Regulatory Commission on Further Promoting the Reform of the New Share Issuance System, the company, its controlling shareholders, directors (except independent directors, the same below) and senior management personnel promise that within three years from the date of the company's initial public offering and listing and trading, once the closing price of the issuer's shares is lower than the company's latest audited net assets per share ( "Start-up conditions", after the company's latest audit reference date, when the company's net assets or the number of shares change due to profit distribution, capital reserve conversion to share capital, additional issuance, allotment, etc., the amount of net assets per share shall be adjusted accordingly), and the company's situation also meets the relevant laws, regulations and normative documents on repurchase, increase in holdings and other relevant provisions, and initiates measures to stabilize the stock price.

6. Strengthen the interests of management and shareholders to share constraints and the responsibility of the "key minority", and convey the confidence of the company's future development

1. The company's directors and senior management increase their holdings of the company's shares

Based on confidence in the company's future development and recognition of the company's long-term investment value, since October 2023

From April 30 to April 30, 2024, some directors and all senior management of the company passed Shanghai Securities

The exchange system increased its holdings of 2,283,289 shares of the company through centralized bidding, accounting for 0.0165% of the company's total share capital, with a total increase of RMB 5.02 million.

2. The company's controlling shareholder extends the lock-up period

Shanghai Lianhe Investment Co., Ltd., the controlling shareholder of the Company, holds 8,057,201,900 shares of the Company before the IPO (accounting for 58.25% of the Company's current total share capital), and the lock-up period of this part of the shares is 36

month, which was supposed to be lifted on May 28, 2024.

Based on its confidence in the Company's future development prospects and recognition of its long-term investment value, Shanghai Lianhe Investment Co., Ltd. has committed to extend the lock-up period of 8,057,201,900 pre-IPO shares of the Company held by Shanghai Lianhe Investment Co., Ltd

Long 12 months to May 28, 2025.

The company will continue to evaluate the implementation of the action plan of "improving quality and efficiency and emphasizing returns", and fulfill the obligation of information disclosure in a timely manner. The company will be through good performance, standardized corporate governance, positive investor returns,

Earnestly fulfill the responsibilities and obligations of listed companies, repay the trust of investors, and maintain the long-term stability of the company's stock price.

The forward-looking statements such as the company's future plans and development strategies involved in this report do not constitute the company's substantive commitment to investors, and investors are advised to pay attention to investment risks.

Board of Directors of Shanghai Hehui Optoelectronics Co., Ltd

March 27, 2025