Company code: 688019 Company abbreviation: Anji Technology

Anji Microelectronics Technology (Shanghai) Co., Ltd

Summary of the 2024 Annual Report

Section 1 Important Notice

1. The summary of this annual report is from the full text of the annual report, in order to fully understand the company's operating results, financial status and future development plan, investors should go to the www.sse.com.cn website to read the full text of the annual report carefully.

2. Major risk warning

The Company has elaborated in this report on the various risks that the Company may face in the course of its operations and the countermeasures, please refer to Section III "Management Discussion and Analysis" of this report under "IV. Risk Factors".

3. The Board of Directors, the Board of Supervisors, the directors, supervisors and senior management of the Company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and that there are no false records, misleading statements or material omissions, and bear individual and joint legal liabilities.

4. All directors of the company attend the meeting of the board of directors.

5. KPMG Huazhen Certified Public Accountants (Special General Partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability at the time of listing

□ Yes √ No

7. The profit distribution plan or the plan for the conversion of provident fund into share capital for the reporting period approved by the board of directors

The profit distribution plan and the provident fund conversion plan approved by the board of directors of the company are:

The company intends to distribute a cash dividend of 4.5 yuan (tax included) to all shareholders for every 10 shares based on the total share capital deducting the shares in the company's special securities account for repurchase on the record date of the implementation of the 2024 profit distribution. As of April 15, 2025, the total share capital of the company is 129,213,274 shares, and the remaining share capital after deducting the company's repurchase account is 129,090,465 shares, which calculates that the total cash dividend to be distributed is 58,090,709.25 yuan (tax included), accounting for about 11.47% of the distributable profit of the parent company in the current year, accounting for 10.89% of the net profit attributable to shareholders of the listed company in the company's consolidated statements, and the remaining undistributed profits are carried forward to the following years for distribution; The company intends to increase the share capital to all shareholders with capital reserve for every 10 shares to increase 3 shares, and no bonus shares will be given.

The profit distribution plan still needs to be submitted to the Company's 2024 Annual General Meeting of Shareholders for deliberation and approval.

8. Whether there are special arrangements for corporate governance and other important matters

□ Applicable √ Not applicable

Section 2 Basic information of the company

1. Company profile

1.1 Company Shares

√ Applicable □ Not applicable

Company stock profile

Stock Type Stock Listed Exchange Stock Abbreviation Stock Code Stock Abbreviation Before the change

and plates

A-shares Shanghai Stock Exchange Anji Technology 688019 Not applicable

Science and Technology Innovation Board

1.2 Brief description of the Company's Depositary Receipts

□ Applicable √ Not applicable

1.3 Contacts and Contact Details

Secretary of the Board of Directors and Representative of Securities Affairs

Name: Yang Xun, Feng Qian

Address: Jinqiao Comprehensive, No. 5001 Huadong Road, Pudong New Area, Shanghai Jinqiao Comprehensive Bonded Bond, No. 5001 Huadong Road, Pudong New Area, Shanghai

Free Trade Zone T6-5 Building T6-5

Tel: 021-20693201 021-20693201

Fax: 021-50801110 021-50801110

E-mail IR@anjimicro.com IR@anjimicro.com

2. Brief introduction of the company's main business during the reporting period

2.1 Main business, main products or services

The company's main business is the R&D and industrialization of key semiconductor materials, and its current products include different series of chemical mechanical polishing slurries, functional wet electronic chemicals, electroplating solutions and additives, which are mainly used in the fields of integrated circuit manufacturing and advanced packaging. The company has always focused on the core technology of liquid and solid surface treatment and high-end chemical formulation, and continued to focus on investment, successfully breaking the monopoly of foreign manufacturers on chemical mechanical polishing slurry and some functional wet electronic chemicals in the field of integrated circuits, realizing import substitution, enabling China to have independent supply capacity in this field, and continuing to expand and strengthen the technology platform in the field of electrochemical deposition, with products covering a variety of electroplating solutions and additives. At the same time, the company relies on independent innovation to achieve technological breakthroughs in specific fields, so that China has the ability to lead specific new technologies.

In the chemical mechanical polishing slurry segment, the company is committed to realizing the layout and coverage of all product lines, aiming to provide customers with one-stop complete solutions covering front-end wafer manufacturing and back-end advanced packaging applications. The company's chemical mechanical polishing slurry products have covered copper and copper barrier layer polishing slurry, dielectric material polishing slurry, tungsten polishing slurry, cerium oxide abrasive-based polishing slurry, substrate polishing slurry and other product platforms. At the same time, based on the chemical mechanical polishing slurry technology and product platform, the company also supports the needs of customers for different characteristic processes, and customizes the development of chemical mechanical polishing slurry for new materials and new processes.

In the functional wet electronic chemicals sector, the company focuses on high-end functional wet electronic chemicals products such as integrated circuit front-end wafer manufacturing and back-end wafer-level packaging, and is committed to overcoming the difficulties of leading technology nodes, and based on industrial development and the needs of downstream customers, it has continuously improved its technology and product level vertically while broadening product categories horizontally, so as to provide customers with more competitive product portfolios and solutions. At present, the company's functional wet electronic chemicals mainly include post-etch cleaning fluid, photoresist stripping solution for wafer-level packaging, post-polishing cleaning solution, etching solution and other products.

In the electroplating solution and additives product sector, the company has completed the construction of the electroplating solution and additives product series platform used in the field of integrated circuit manufacturing and advanced packaging, and on the basis of the continuous development of its own technology, through international technical cooperation and other forms, it has further expanded and strengthened the platform construction, including technology platform and large-scale production capacity platform, thereby enhancing the company's one-stop delivery capability in this field. At present, a number of electroplating solutions and additives for advanced packaging have been mass-produced and sold, including copper, nickel, nickel-iron, tin silver and other electroplating solutions and additives, which are used in bumping, rewiring layer (RDL) and other technologies; In the field of integrated circuit manufacturing, the copper Damascus process and through-silicon vias (TSV) electroplating solutions and additives have also entered the test and demonstration stage as expected, further enriching the application of electroplating solutions and additives product lines.

The company's products have been successfully applied to logic chips, memory chips, analog chips, power devices, sensors, third-generation semiconductors and other characteristic process chips, and have entered the mainstream suppliers of many leading customers in the semiconductor industry.

At the same time, in order to improve the stability and competitiveness of its own products and ensure strategic supply, the company has established and continuously strengthened the ability of independent and controllable supply of core raw materials to support product research and development and ensure the reliability of long-term supply.

2.2 Main business model

1. Procurement mode

The company has formulated the "Procurement Management Procedures" and the internal control process of procurement management, and formulated the "Procurement Process", "Supplier Management Process", "Supply Disaster Recovery Procedures" and other standard operating procedures.

(1) General procurement process

Taking raw materials, auxiliary materials and packaging materials as an example, the company's general procurement process is as follows:

(1) The R&D center puts forward material development requirements, the supply chain department is responsible for developing suppliers, and the supplier management team is responsible for material evaluation, supplier certification, audit, import and approval as the company's qualified suppliers, and the supply chain department is responsible for establishing and maintaining the "Qualified Supplier Catalog". The company's supplier management team is composed of personnel from supply chain department, R&D center, quality department, production and operation department and other departments.

(2) The demand department submits a purchase application and submits it to the supply chain department after obtaining appropriate approval in accordance with the company's approval policy, the supply chain department is responsible for managing the execution of orders, the quality department is responsible for the inspection management of procurement incoming materials, and the warehouse is responsible for procurement and warehousing management.

(3) The supply chain department obtains invoices according to the purchase contract/order, sorts out the payment vouchers such as warehousing and acceptance, and submits it to the finance department to apply for payment approval process.

(4) The finance department is responsible for the management of procurement payables in accordance with the purchase contract/order.

(2) Outsourcing procurement process

During the reporting period, some of the photoresist stripping solutions in the company's functional wet electronic chemicals were entrusted to the production of outsourcing suppliers, that is, the company signed an agreement with the outsourcing suppliers, and the outsourcing suppliers organized production and carried out quality management and control in strict accordance with the process documents and technical standards provided by the company. All product formulas, production processes, any inventions, designs, technical information, technologies, know-how or trademarks, trade secrets and other intellectual property rights authorized by the company to be used by the subcontractors under the agreement belong to the company alone. The main process of the company's outsourcing procurement is as follows:

(1) The production and operation department generates outsourcing purchase requisitions according to the monthly sales forecast;

(2) The supply chain department places an order according to the outsourcing purchase requisition;

(3) Outsourcing suppliers arrange production according to the requirements of the order;

(4) At the end of each month, the finance department conducts outsourcing procurement cost accounting.

2. R&D mode

The company has always focused on its own core technology, focusing on independent research and development, independent innovation, and formed an independent innovation mechanism integrating scientific research, production and market. At the same time, the company has established good cooperative relations with external units such as universities and customers, and actively carried out multi-level and multi-way cooperative research and development. On the one hand, the company's R&D goal is to follow the technological development roadmap of the industry and develop a product platform that meets the needs of the industry; On the other hand, based on the needs of downstream customers, targeted research and development of products to meet customer needs. Since it takes a long time to go from R&D to large-scale sales, the company works with technologically advanced customers to help understand their needs and develop innovative solutions for them.

The company has formulated the "R&D Management System" and established an internal control process for R&D management, covering R&D plan, R&D project approval, R&D process follow-up and cost accounting management, patent application and acquisition. The general path of the company's product R&D and industrialization mainly includes five stages: project demonstration, R&D alpha sample delivery, Beta sample delivery for trial production, commercialization (large-scale production), and continuous improvement.

3. Production mode

In the early stage of product design and research and development, the company invests a lot of resources to communicate technology, quality and performance with downstream customers. When the product passes the customer evaluation and test, the sales department will formulate a rolling shipment forecast according to the customer's product orders and the forecast of customer demand, and the production and operation department will formulate a specific production plan and arrange inventory according to the annual/monthly production plan, rolling shipment forecast and inventory situation. Specifically, the production and operation department organizes relevant departments every year to prepare annual production plans and monthly production plans according to the production scheduling plan. The production and operation department will conduct collective reviews on a regular basis, and formulate specific weekly production plans according to monthly inventory and rolling shipment forecasts to ensure that the production plan meets the requirements of the sales contract and production capacity; The production and operation department organizes all relevant departments and product line leaders to hold production scheduling meetings to review the implementation of the production plan to ensure that various factors that may affect the change of the production plan are fully communicated and the production is adjusted in a timely manner

Planning (e.g., timely closure of shutdown orders) to ensure the timeliness and effectiveness of plan adjustments.

The company has mastered the core technology in the production of chemical mechanical polishing slurry, functional wet electronic chemicals, electroplating solution and additives, and some categories of grinding raw materials, and organizes production through reasonable allocation of machinery and equipment and production resources.

4. Sales model

The company's products are mainly used in the field of integrated circuit manufacturing and advanced packaging, and the sales are mainly sold directly to end customers. When the company develops new customers or promotes new products to existing customers, it must first conduct certification tests according to customer needs, including product performance, reliability, stability and other tests, and the certification test cycle is generally long. After the company passes the downstream customer certification, the customer directly places a purchase order with the company, and the company ships directly to the customer as required.

2.3 The situation of the industry

(1). The development stage, basic characteristics and main technical thresholds of the industry

The company's main business is the R&D and industrialization of key semiconductor materials, and its current products include different series of chemical mechanical polishing slurries, functional wet electronic chemicals, electroplating solutions and additives, which are mainly used in the fields of integrated circuit manufacturing and advanced packaging. According to the National Bureau of Statistics' "Industrial Classification of the National Economy" (GB/T4754-2017), the company's industry is "C39 Computer, communication and other electronic equipment manufacturing - C3985 electronic special materials manufacturing". According to the general classification standards of the industry, the company is in the semiconductor materials industry.

Semiconductor materials are located in the upstream link of the entire semiconductor industry chain, which is the cornerstone of the semiconductor industry and the engine to promote the innovation of integrated circuit technology, plays an important supporting role in the development of the semiconductor industry, and is closely related to the development of the downstream semiconductor market. Benefiting from the long-term development trend of the semiconductor industry, the global semiconductor materials market size has maintained a growth trend, and more process steps are required to manufacture logic chips, 3D memory chip architectures and heterogeneous integration technologies at more advanced technology nodes, resulting in higher consumption of wafer fabrication materials and packaging materials. according to

TECHCET predicts that the global semiconductor materials market size will exceed $84 billion by 2028, growing at a CAGR of 5.6% during 2023-2028.

Cyclical growth trends in the global semiconductor industry from 2001 to 2025

Source: WSTS

(1) Overview of the semiconductor materials industry

Materials and equipment are the cornerstone of the semiconductor industry and the engine that drives innovation in integrated circuit technology. Semiconductor materials are in the upstream of the entire semiconductor industry chain, which plays an important supporting role in the development of the semiconductor industry, and has the characteristics of large industrial scale, many subdivided industries, high technical threshold, large R&D investment, and long R&D cycle.

Semiconductor materials are an important support for the semiconductor industry

Source: SEMI, WSTS, SIA

First, the scale of the industry is large. Semiconductor materials are mainly divided into wafer fabrication materials and packaging materials. According to SEMI, 2022 is half in the world

Conductor materials market sales increased 8.9% to $72.7 billion, surpassing the previous market high of $66.8 billion set in 2021.

In 2023, the global semiconductor materials market sales decreased by 8.2% to $66.7 billion due to the environmental impact of the entire semiconductor industry. It is large from the material

In 2023, the global sales of wafer fabrication materials and packaging materials will be $41.5 billion and $25.2 billion, respectively, accounting for global semiconductors

The proportion of sales of bulk materials was about 62% and 38%, respectively; From the perspective of regional distribution, Taiwan and Chinese mainland are the top two semiconductors in the world

In the materials consumption region, sales in 2023 will be $19.2 billion and $13.1 billion, respectively, accounting for the proportion of global semiconductor materials sales, respectively

About 29% and 20%, of which Chinese mainland is the only region in the world to achieve year-on-year growth in semiconductor materials sales in 2023.

China is the world's largest market for semiconductor materials (USD billion)

Source: SEMI

Second, there are many subdivisions. The semiconductor materials industry is the industrial chain with the most subdivisions in the semiconductor industry chain, in which wafer manufacturing materials include silicon wafers, photomasks, photoresists, photoresist auxiliary materials, process chemicals, electronic special gases, polishing slurry and polishing pads, targets and other materials, packaging materials include lead frames, packaging substrates, ceramic substrates, bonding wires, encapsulation materials, chip bonding materials and other packaging materials, each major category of materials includes dozens or even hundreds of specific products, and there are hundreds of sub-industries.

Third, the technical threshold is high, the R&D investment is large, and the R&D cycle is long. Because semiconductor materials, especially wafer manufacturing materials, play an important role in the manufacture of integrated circuit chips, and even some key materials directly determine the chip performance and process development direction, downstream customers have extremely demanding requirements for products, and require long-term test and demonstration work before online use, and will gradually increase the amount through a longer period after online use. In addition, the product needs to go through a long and difficult R&D stage before it can enter the test and demonstration stage, and a large amount of R&D investment is required in the R&D process.

(2) The subdivided industries to which the company's main products belong

In the manufacturing process of semiconductors, especially integrated circuits, the surface condition and cleanliness of wafers are one of the most important factors affecting the quality rate of wafers and the quality and reliability of devices, and surface technologies such as chemical mechanical polishing (CMP), wet cleaning, etching, and electrochemical deposition (electroplating) play a very key role. The company focuses on the core technology of micro-treatment technology and high-end chemical formulation on the surface of liquid and solid substrates

With the best solutions for processes and materials in the chip manufacturing process, we have successfully built three core competitiveness technology platforms: "Chemical Mechanical Polishing Slurry - Full Category Product Matrix", "Functional Wet Electronic Chemicals - Leading Technology Node Multi-product Line Layout", and "Electroplating Solution and Its Additives - Strengthening and Enhancing the Strategic Supply of High-end Electroplating Product Series". At present, the company's technology has covered the three key processes of "polishing, cleaning and deposition" in integrated circuit manufacturing, and the product portfolio can be widely used in the key cyclic repetitive processes such as polishing, cleaning, etching and deposition in the process of chip manufacturing and back-end advanced packaging, as well as the cleaning process connecting each process step.

The company's main products have been used in key cyclic repetition processes in the field of chip manufacturing and advanced packaging

？ Chemical mechanical polishing slurry market situation

Chemical mechanical polishing (CMP) is a key technology in the advanced semiconductor manufacturing process, and its main working principle is that under a certain pressure and the presence of polishing slurry, the polished wafer moves relative to the polishing pad, and with the help of the mechanical grinding effect of nano abrasives and the chemical action of various chemical reagents, the surface of the polished wafer can meet the requirements of high flatness, low surface roughness and low defects. Depending on the requirements of different processes and technology nodes, each wafer goes through several or even dozens of CMP polishing process steps during the production process. Unlike traditional purely mechanical or purely chemical polishing methods, the CMP process achieves the removal of micro/nanoscale different materials on the wafer surface through a combination of surface chemistry and mechanical grinding, so as to achieve a highly (nanoscale) flattening effect on the wafer surface. CMP has become an indispensable planarization process for processes below 0.35 μm.

CMP process schematic

With the advancement of process nodes, the number and density of multi-layer cabling increases, and the number of CMP process steps increases, CMP technology becomes more and more important.

Its influence on the subsequent process yield is increasing. For example, the CMP process step required for the logic chip manufacturing process at the 14nm node

The number of bursts will increase from 10 to more than 20 at the 180nm technology node, and the logic chip manufacturing process at the 7nm and below technology nodes

The number of CMP process steps required was even more than 30. In addition, more advanced logic chip processes may require polishing new materials,

This brings more growth opportunities for polishing slurries. Similarly, for memory chips, with the evolution from 2D NAND to 3D NAND

The technological change will also nearly double the number of CMP process steps, driving the continuous and rapid growth of the demand for tungsten polishing slurry and other polishing slurries. In addition, the application of advanced packaging technology has enabled CMP to move from the front-end manufacturing of integrated circuits to the back-end packaging process, and has been widely used in processes such as through-silicon vias (TSV) and hybrid bonding.

Chemical mechanical polishing fluids are critical in CMP technology, accounting for more than 50% of the value of polishing materials, and their consumption varies with wafers

Yield and the number of CMP planarization process steps increase. Depending on the application, the polishing slurry can be divided into silicon substrate polishing slurry, copper and copper barrier polishing slurry, tungsten polishing slurry, dielectric material polishing slurry, cerium oxide abrasive-based polishing slurry, and through-silicon via (TSV) polishing slurry for advanced packaging. The polishing slurry is characterized by a wide variety, even if it is the same technology node and the same process section, there are different formulas according to different polishing objects and different customers' process and technical requirements.

ACCORDING TO TECHCET, THE GLOBAL SEMICONDUCTOR CMP POLISHING MATERIALS (INCLUDING POLISHING SLURRIES AND POLISHING PADS) IN 2024 ACCOUNT FOR A CLOSE PROPORTION OF POLISHING SLURRIES

60%) is valued at USD 3.42 billion and is expected to grow by 6% to USD 3.62 billion by 2025. With the continuous growth of global wafer production capacity

and the application of advanced technology nodes, new materials, and new processes require more CMP process steps, and TECHCET expects the global half by 2028

The conductor CMP polishing materials market size is expected to reach USD 4.4 billion, growing at a CAGR of 5.6% during 2024-2028.

？ Wet electronic chemicals market situation

Wet electronic chemicals are a general term for various high-purity electronic chemical materials used in multiple microelectronic/optoelectronic wet process links such as cleaning and etching, and the core processes involved in their production include separation and purification, analysis and testing, mixing, packaging and transportation technology, etc., with high technology

Barriers. Wet electronic chemicals are mainly divided into general-purpose wet chemicals and functional wet chemicals, among which general-purpose wet chemicals mainly include acids, alkalis, organic solvents and other products with a main body purity greater than 99.99% and impurity content lower than ppm; Functional wet chemicals refer to formula or compound chemicals prepared by the compound process to meet the special process needs in the wet process, mainly including various etching solutions, cleaning solutions and photoresist supporting reagents (stripping solutions, diluents, edge removers, developers), etc. Unlike mixed general-purpose wet chemicals, which can be mixed and used by semiconductor manufacturers themselves, functional wet chemicals need to be developed and produced by electronic chemical manufacturers and supplied to semiconductor manufacturers in the form of specific products.

The company focuses on the field of high-end functional wet electronic chemicals for front-end wafer manufacturing and back-end wafer-level packaging of integrated circuits, and its products involve cleaning fluids, stripping fluids and etching fluids. Cleaning solution is used in the cleaning process of semiconductor manufacturing to remove particles, metal or ionic conductive pollutants and inorganic and organic pollutants with corrosive effects, etc., according to its application process, cleaning solution can be divided into cleaning solution after chemical mechanical polishing (CMP), cleaning solution after etching of aluminum process, cleaning solution after etching of copper process, cleaning solution after removal of HKMG false gate, cleaning liquid for packaging process, etc. In order to minimize the impact of impurities on chip yield, the current chip manufacturing process has set up cleaning processes after repetitive processes such as lithography, etching, ion implantation, deposition, polishing, etching, etching, and the number of cleaning steps accounts for more than 30% of all chip manufacturing process steps, which is the largest proportion of all chip manufacturing process steps, and with the advancement of technology nodes, the number and importance of cleaning processes will continue to increase, and the demand for cleaning liquid will also increase accordingly in the case of achieving the same chip manufacturing capacity. Photoresist stripping solution is a reagent used to remove photoresist on silicon wafers after exposure and development and subsequent processes, and the photoresist is not easy to be removed after different processes such as wet etching, dry etching, ion implantation, etching, etching, etching, etching, etching, The etching technology used in the semiconductor manufacturing process mainly includes wet etching and dry etching, and the wet chemicals used in the etching process are etching fluids.

Cleaning and etching are important processes in the semiconductor manufacturing process

With the continuous development of integrated circuit technology, process complexity and technical challenges are increasing, the control requirements for impurity content, particle number, cleaning and removal ability, etching selectivity, process uniformity, batch stability and consistency of wet electronic chemicals are getting higher and higher. In addition, due to the continuous introduction of new structures, new devices and new materials, the differences between mainstream chip manufacturers are also increasing, and meeting the customized needs of customers has become an important trend for the future development of functional wet electronic chemicals. ACCORDING TO TECHCET, THE GLOBAL SEMICONDUCTOR WET ELECTRONIC CHEMICALS MARKET SIZE WILL GROW BY 8% TO $5.5 BILLION IN 2024. Benefiting from the progress of chip technology nodes and the maintenance of global chip production capacity

TECHCET expects the global semiconductor wet electronic chemicals market to exceed $6.6 billion in 2028, with a boom in 2024-2028

The combined growth rate was 6.1%.

？ Electroplating solution and additives market

As one of the key process technologies in integrated circuit manufacturing, electrochemical deposition (electroplating) technology is the cornerstone of metal interconnection, which is mainly used in the Damascus copper interconnection electroplating process of integrated circuit manufacturing and the electroplating processes such as Bumping, RDL, and TSV. With the continuous reduction of transistor size and the 130nm process, the aluminum interconnect process can no longer meet the needs of integrated circuit integration, speed and reliability, and copper has gradually replaced aluminum as the main material for metal interconnect. Because copper is difficult to dry etching, the traditional metal interconnection process is no longer suitable, and the copper plating technology with the inlay process has become the main preparation process for copper interconnect, which is also known as the Damascus copper interconnection process in the industry. The Damascus copper interconnect process is widely used in chip manufacturing for wafers above 8 inches and below 130nm.

In the copper interconnect plating process, chips with diffusion barrier and seed layers are submerged in a high-purity electroplating solution containing additives, and the electroplating process fills the etched interconnect vias and trenches. Copper interconnect plating additives, including accelerators, inhibitors and leveling agents, play a key role in the plating process, allowing different components to interact with each other to achieve bottom-to-top filling as well as coating grains, appearance and flatness.

In addition to the copper interconnect process for chip manufacturing, electroplating solutions and additives are also used in advanced packaging processes such as Bumping, RDL, and TSV. TSV

At the heart of the technology is the drilling of holes in the wafer and the copper plating of the through-silicon vias, which enables the interconnection and stacking of wafers, improving the integration and performance of the chips without continuing to reduce the linewidth of the chips. Compared to the chip manufacturing copper interconnect process, TSV plating is larger in size, typically requires longer deposition times, higher plating rates, and multiple process steps, and the cost of copper interconnect plating solution and additives also accounts for a higher proportion of the total cost of the TSV process.

At present, semiconductor electroplating is not limited to the deposition of copper wire, but also tin, tin-silver alloy, nickel, gold and other metals, but the deposition of metal copper still dominates. Copper wires can reduce the interconnection impedance, reduce the power consumption and cost of the device, and improve the speed, integration, and device density of the chip. The increase in interconnect layers brought about by advanced logic device technology nodes, the increasing use of rewiring layers and copper pillar structures in advanced packaging, and the overall growth of semiconductor devices that make extensive use of copper interconnect technology are driving the growth of the electroplating solution and its additives market.

ACCORDING TO TECHCET, THE GLOBAL SEMICONDUCTOR PLATING CHEMICALS MARKET SIZE WAS APPROXIMATELY $972 MILLION IN 2024, AND GLOBAL SEMICONDUCTOR PLATING BY 2025

The school market size will grow to $1.06 billion, up 9% from 2024. With the use of advanced packaging and the next generation of logic devices, metals

As the number of interconnect layers increases, TECHCET expects semiconductor plating chemistries in the advanced packaging and copper interconnect segments to grow at a CAGR of 8% and 4.5%, respectively, from 2024 to 2028.

(2). Analysis of the company's position in the industry and its changes

Since its establishment, the company has positioned itself as a high-end semiconductor material supply partner based on scientific and technological innovation and intellectual property rights, and its products include different series of chemical mechanical polishing slurries, functional wet electronic chemicals, electroplating solutions and additives series products. The company has successfully built a "3+1" technology platform and application fields with core competitiveness of "Chemical Mechanical Polishing Slurry - Full Category Product Matrix", "Functional Wet Electronic Chemicals - Leading Technology Node Multi-product Line Layout", "Electroplating Solution and Additives - Strengthening and Enhancing the Strategic Supply of High-end Electroplating Product Series" and "Core Raw Material Construction - Improving Independent and Controllable Strategic Supply Capacity". The company has successfully broken the monopoly of foreign manufacturers on chemical mechanical polishing slurry and some functional wet electronic chemicals in the field of integrated circuits, realized import substitution, and expanded and strengthened the technology platform in the field of electrochemical deposition, and its products cover a variety of electroplating solutions and additives. Through the continuous and in-depth research and development of upstream core raw materials, we will further enhance the competitiveness of products in terms of performance optimization, technical feasibility of finding and developing new products, and obtain more cooperation opportunities.

After years of technology and experience accumulation, brand building, the company relies on solid R&D strength and cost, management and service

has achieved a certain market share and brand awareness in the semiconductor materials industry. The company continues to focus on investment, has successfully broken the monopoly of foreign manufacturers, and has become a mainstream supplier to many leading customers in the semiconductor industry in Chinese mainland. With the advancement of the strategy of "based in China and serving the world", the company has emerged in the global market and has been recognized by many overseas customers. According to the estimation of the global semiconductor polishing slurry market size disclosed by TECHCET, the company's global market share of chemical mechanical polishing slurry in the past three years is about 7%, 8% and 11% respectively, which has been steadily increasing year by year. The company's cleaning fluids in wet electronic chemicals have made a name for themselves in the global market, with a global market share of approximately 4% in 2024, according to TECHCET's global semiconductor cleaning fluid market size.

(3) The development and future development trend of new technologies, new industries, new forms of business and new models during the reporting period

The impact of international trade frictions on the semiconductor industry is still ongoing, and the fluctuations in the external environment have also brought many uncertainties to the development of the entire industry. But what is certain is that numerous applications such as artificial intelligence, AR/VR, IoT, autonomous vehicles, cloud computing, 5G/6G, smart cities, healthcare, etc., rely on semiconductor technology advancements to achieve their innovation. The development of the semiconductor industry is far-reaching and huge, the driving force for development is still strong, and the relevant policies and funds from all walks of life to boost the development of the local semiconductor industry introduced by many countries and regions reflect the recognition and positive expectations of the relevant governments and markets for the industry.

According to WSTS forecasts, the global semiconductor market size will grow to USD 626.869 billion and USD 697.184 in 2024 and 2025, respectively

US$100 million, representing a year-on-year increase of 19.0% and 11.2%, respectively. According to SEMI and other predictions, the global semiconductor industry sales are expected to exceed $1 trillion in 2030 driven by the application of emerging technologies such as artificial intelligence, new energy vehicles, data centers, and the Internet of Things. The long-term development trend of the global semiconductor industry will drive the growth of upstream demand for key materials, providing strong support for the company's future business growth.

3. The company's main accounting data and financial indicators

3.1 Key accounting data and financial indicators for the past 3 years

Unit: Yuan Currency: RMB

2024 2023 This year is compared to 2022

Increase/decrease (%)

Total assets 3,451,756,060.58 2,603,401,095.73 32.59 2,047,601,294.07

Attributable to listed companies 2,700,956,681.01 2,124,045,086.38 27.16 1,521,549,944.38

Net worth of shareholders

Operating income 1,835,015,178.35 1,237,871,129.22 48.24 1,076,787,316.10

Attributable to listed companies 533,643,641.69 402,733,766.50 32.51 301,436,958.70

Net profit to shareholders

Attributable to listed companies

Shareholders' deductions are not 526,270,031.60 322,000,921.08 63.44 300,453,800.14

Net profit from recurring gains and losses

moistening

493,210,493.99 336,234,683.53 46.69 239,122,116.48

Net cash flow

Weighted average net assets 22.18 21.47 increased by 0.71 percentage points 22.20

Yield (%)

Basic earnings per share (RMB 4.14 3.15 31.43 3.53

/share)

Diluted earnings per share (RMB 4.14 3.14 31.85 3.52

/share)

R&D investment accounted for 18.13 19.11 of revenue, a decrease of 0.98 percentage points and 14.99

Percentage of income (%)

3.2 Key accounting data by quarter in the reporting period

Unit: Yuan Currency: RMB

Q1 Q2 Q3 Q4

(January-March) (April-June) (July-September) (October-December)

Operating income 378,450,569.05 418,822,881.82 514,957,812.48 522,783,915.00

Attributable to shareholders of listed companies 105,080,291.47 128,915,549.24 158,572,358.58 141,075,442.40

net profit

attributable to shareholders of listed companies

105,678,947.40 129,162,971.98 148,654,767.18 142,773,345.04

net profit after that

Cash from operating activities 107,658,319.26 87,635,703.54 132,910,849.32 165,005,621.87

Net traffic

Explanation of the discrepancies between the quarterly data and the data disclosed in the periodic report

□ Applicable √ Not applicable

4. Shareholders

4.1 The total number of common shareholders, the total number of preferred shareholders whose voting rights have been restored, and the total number of shareholders holding special voting shares and the top 10

shareholders

Unit: Shares

As of the end of the reporting period, the total number of ordinary shareholders (households) was 12,604

The total number of ordinary shareholders at the end of the previous month prior to the disclosure date of the annual report was 10,170

The total number of preferred shareholders whose voting rights were restored as of the end of the reporting period (households) was 0

The total number of preferred shareholders whose voting rights were restored at the end of the previous month prior to the disclosure date of the annual report is 0

(Households)

The total number of shareholders holding special voting shares as of the end of the reporting period (households) 0

The total number of shareholders holding special voting shares at the end of the previous month prior to the disclosure date of the annual report is 0

Number (Households)

Shareholdings of the top 10 shareholders (excluding shares lent through refinancing)

Hold staking, tokenizing, or freezing

Limited Situation

Name of shareholder Increase in number of shares held at the end of the period Proportion of shareholders sold during the reporting period

(Full name) Reduction (%) Shares Nature of shares

Number of copies, status, quantity

measure

Anji Microelectronics 9,187,139 39,810,936 30.81 0 None 0 Other

Co. Ltd.

Hong Kong Securities Clearing Company Limited 1,898,370 4,924,778 3.81 0 N/A 0 Others

Invesco Great Wall Fund - Chinese Life

Insurance Company Limited - Dividends

Insurance-Invesco Great Wall Fund China Life 849,280 2,590,866 2.01 0 N/A 0 Others

A single portfolio of growth stocks

Property Management Plan (available for sale)

Shanghai Dachen Science and Technology Investment Co., Ltd. is not in the public territory

Division 482,385 2,257,002 1.75 0 N/A 0 National law

person

Shanghai Pudong Development Bank shares

Limited company-Invesco Great Wall e-mail -35,604 2,104,946 1.63 0 None 0 Others

Interest-based equity securities investment base

gold

CITIC Securities Co., Ltd.-

Harvest SSE STAR Market Chip Trading 1,378,451 1,950,272 1.51 0 None 0 Others

Open-ended index securities investment base

gold

National Social Security Fund 110 Portfolio - 1,621,094 1.25 0 N/A 0 Other

China Construction Bank Co., Ltd

Division-Southern Information Innovation Hybrid -38,314,408 1,496,528 1.16 0 None 0 Other

Securities investment funds

Bank of Ningbo Co., Ltd.-

Invesco Great Wall Growth Leader 1-year 266,479 1,189,107 0.92 0 None 0 Others

Fixed-term hybrid securities investment funds

China Construction Bank Co., Ltd

Division-Invesco Great Wall Research Select 994,096 1,108,254 0.86 0 N/A 0 Others

Ticket-type securities investment funds

Description of the above-mentioned shareholder affiliation or concerted action The company does not know whether other shareholders are related or acting in concert

Relationship.

Explanation of preferred shareholders whose voting rights have been restored and the number of shares held None

Holders of depositary receipts

□ Applicable √ Not applicable

The top 10 shareholders in terms of the number of voting rights as of the end of the reporting period

□ Applicable √ Not applicable

4.2 Block diagram of the property rights and control relationship between the company and the controlling shareholder

√ Applicable □ Not applicable

4.3 Block diagram of the property rights and control relationship between the company and the actual controller

□ Applicable √ Not applicable

4.4 The total number of preferred shareholders and the top 10 shareholders of the company at the end of the reporting period

□ Applicable √ Not applicable

5. Corporate bonds

□ Applicable √ Not applicable

Section 3: Important Matters

1. The company shall, in accordance with the principle of materiality, disclose the major changes in the company's operation during the reporting period, as well as the events that have a significant impact on the company's operation during the reporting period and are expected to have a significant impact in the future.

During the reporting period, the company achieved operating income of 1835.0152 million yuan, a year-on-year increase of 48.24%; The realization is attributable to the owner of the parent company

net profit was 533.6436 million yuan, a year-on-year increase of 32.51%; Realized net profit attributable to owners of the parent company after deducting non-recurring gains and losses

526.27 million yuan, a year-on-year increase of 63.44%. At the end of the reporting period, the company's total assets were 3451.7561 million yuan, an increase of 32.59% over the beginning of the reporting period;

The owner's equity attributable to the parent company was 270,095.67 million yuan, an increase of 27.16% from the beginning of the reporting period.

2. If there is a delisting risk warning or termination of listing after the disclosure of the company's annual report, the reasons for the delisting risk warning or termination of listing shall be disclosed.

□ Applicable √ Not applicable

Anji Microelectronics Technology (Shanghai) Co., Ltd

April 14, 2025