CITIC Securities Co., Ltd

About Shanghai Bochu Electronic Technology Co., Ltd

2024 Annual Continuous Supervision and Follow-up Report

CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or the "Sponsor"), as the sponsor of the initial public offering of shares of Shanghai Bochu Electronic Technology Co., Ltd. (hereinafter referred to as "Baichu Electronics" or the "Company" or "Listed Company") and the issuance of shares to specific targets in 2021, performed continuous supervision duties in accordance with the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, the Rules Governing the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange and other relevant regulations. And issue this annual follow-up report of continuous supervision.

1. Overview of continuous supervision

1. The sponsor has formulated a continuous supervision work system, formulated a corresponding work plan, and clarified the work requirements for on-site inspection.

2. The sponsor has signed a sponsorship agreement with the company, which has clarified the rights and obligations of both parties during the continuous supervision period, and has been reported to the Shanghai Stock Exchange for the record.

3. During the period of continuous supervision, the sponsor will carry out daily communication with the company, on-site return visits, etc

Continued to supervise the work and conducted on-site inspections of the company on March 6, 2025 and April 3, 2025.

4. During the period of continuous supervision, the sponsor shall perform the duties of continuous supervision in accordance with the requirements of relevant laws and regulations and normative documents, including:

(1) Consult the articles of association, the rules of procedure of the three sessions and other corporate governance systems, and the materials of the three sessions;

(2) Consult the company's internal control systems such as financial management, accounting and internal audit, and check the company's 2024 internal control self-evaluation report, 2024 internal control audit report and other documents;

(3) Check the details of the company's capital transactions with the controlling shareholder, actual controller and its related parties, and check the 2024 audit report issued by the accountant, and the special description on the occupation of non-operating funds and other related capital transactions in 2024;

(4) Check the relevant systems of the company's raised funds, information disclosure documents and decisions on the use of raised funds

Procedure documents, bank statements of the special account for raised funds, detailed accounts for the use of raised funds, and an assurance report on the deposit and actual use of raised funds in 2024 issued by an accountant;

(5) Conduct interviews with senior management of the company;

(6) Conduct public information inquiries about the company and its controlling shareholders, actual controllers, directors, supervisors, and senior managers;

(7) Inquire about the commitments announced by the company and verify the fulfillment of the commitments;

(8) Pay attention to media reports related to the issuer through public network search, public opinion monitoring, etc.

2. Problems found by the sponsor and the sponsor representative and their rectification

Based on the above-mentioned continuous supervision work carried out by the sponsors, in 2024, the sponsor and the sponsor representative did not find any major problems with the company.

3. Major risk matters

During the period of continuous supervision, the Company's main risk issues are as follows:

1. Core competitiveness risk

The industry in which the company is located is a technology-intensive industry, with high requirements for technological innovation capabilities, and if the company cannot accurately grasp the development trend of new technologies in the future, the company may lose its leading position in technology and market, thereby affecting the company's profitability.

2. Business risks

The main raw materials purchased by the company are basic electronic components, and if the supply is temporarily blocked by other factors in the future, the price will rise, which will have a certain adverse impact on the company's production and operation in the short term.

In addition, the company's profitability also depends on its own business strategy and management capabilities and other factors, if the company can not continue to enhance its strength in technological innovation, product research and development, market development, service quality and other aspects in the future, continue to maintain competitive advantages, there may be customer loss, the risk of the company's market share decline.

3. Industry risk

The company's sales revenue is closely related to the prosperity of the downstream industry, if the growth of the downstream industry slows down or there are major adverse changes in the future, the company may face the risk of declining performance growth.

4. Macro environmental risks

At present, the overall economic situation at home and abroad is declining, and the real economic growth is slowing down, and the operation and development of the company's business may be affected. If the company does not take active and effective measures to deal with the impact of economic cycle fluctuations and macro-control policies, it may have a negative impact on the company's future development and operating results.

4. Major violations

Based on the above-mentioned continuous supervision work carried out by the sponsors, in 2024, the sponsors did not find any material violations of the company.

5. Reasons and reasonableness of changes in major financial indicators

In 2024, the company's main financial data and indicators are as follows:

Unit: 10,000 yuan

Key Accounting Data FY2024 FY2023 Year-on-Year Change (%)

Operating income 173,545.51 140,711.32 23.33

Net attributable to shareholders of listed companies 88,271.02 72,891.43 21.10

profit

Deduction attributable to shareholders of listed companies 82,092.83 67,392.32 21.81

Unless the net profit is recurring

Cash flow from operating activities 95,244.30 86,093.97 10.63

Net

Key Accounting Data End of 2024 End of 2023 Year-end increase or decrease from the end of the current period compared to the same period of the previous year (%)

Net attributable to shareholders of listed companies 546,751.81 497,163.74 9.97

asset

Total assets 587,794.91 533,479.12 10.18

Main Financial Indicators FY2024 FY2023 Year-on-Year Change (%)

Basic earnings per share (RMB/share) 4.30 3.56 20.79

Diluted earnings per share (RMB/share) 4.28 3.54 20.90

Basis after deducting non-recurring gains and losses 4.00 3.29 21.58

Earnings per share (RMB/share)

The weighted average return on equity was 17.03 15.81, an increase of 1.22 percentage points

（%）

After deducting non-recurring gains and losses, the increase was 15.83 14.62, an increase of 1.21 percentage points

Weighted average return on equity (%)

R&D investment accounted for 16.19 18.58 operating income, a decrease of 2.39 percentage points

Example(%)

In 2024, the company will achieve an operating income of 1735.4551 million yuan, an increase of 328.3419 million yuan over the same period of the previous year

yuan, a year-on-year increase of 23.33%; the net profit attributable to shareholders of the listed company was 882.7102 million yuan, an increase of 153.7959 million yuan over the same period of last year, a year-on-year increase of 21.10%; The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 820.9283 million yuan, an increase of 147.0051 million yuan over the same period of last year, an increase of 21.81% over the same period last year.

In 2024, the company will further enrich industry solutions according to the processing needs of different subdivided application scenarios, and continue to lead the development of the industry and consolidate the market share of the industry through the overall cross-category product portfolio strategy and long-term firm innovation layout. Although the global macroeconomic environment still has a certain impact on the downstream market during the period, the company's main business still shows a growth trend thanks to the continuous increase in domestic demand for high-power thick plate cutting and the continuous expansion of foreign application scenarios.

Sixth, the changes in core competitiveness

(1) The company's core competitiveness

1. First-mover advantage

The company is one of the first batch of technology-based private enterprises engaged in the development of fiber laser cutting control systems in China. Over the past ten years, we have continuously improved product functions, stabilized product performance, improved product quality and customer acceptance, maintained product competitiveness, and accumulated a good brand reputation in the industry. As the company is the first batch of developers in the industry to launch a complete set of laser processing systems, compared with other general system manufacturers at home and abroad, the company has a significant first-mover advantage in the domestic laser processing control system market.

2. Technical advantages

The co-founders of the company are all from Shanghai Jiao Tong University automation related disciplines, after the establishment of Bochu Electronics, in the field of motion control for more than ten years, accumulated profound technical strength and industry experience, and is now active in the company's research and development line as the company's director, senior executive, and technical team leader. The company's core technical team is a professional in the field of laser cutting control system, engaged in the development of industrial automation products for more than ten years, has accumulated rich experience in technology research and development and products, and has a deep insight into the development of industry technology. Under the leadership of the founder and core technical team,

At present, the company has established a stable, professional and high-quality R&D team as of December 31, 2024

The company has 1109 employees and 483 R&D personnel, accounting for 43.55% of the company's total number

There are 203 people with bachelor's degree or above, accounting for 42.03% of the R&D personnel. Under the leadership of the experienced core technical team, the company has 185 patented technologies and a number of proprietary core technologies concentrated in five major technical fields, forming a technology chain that can cover the whole process of laser cutting, and the integrity of the technical system is leading in the world, which has been widely recognized by customers.

3. Resource advantages

At present, there are more than 600 domestic laser equipment manufacturer customers and partners, including Han's Laser, Huagong Falilai, Yawei Machine Tool, Lingchuang Laser, Baichao Dyneng, Jiatai Laser, Leiming Laser, Qingyuan Laser, Hongshi Laser, Lens Technology, Jiepute Optoelectronics, etc., under the background of a large number of domestic laser equipment manufacturers assembling production equipment. The company's accumulated customer resources and the concept of providing high-quality products and services have laid a solid foundation for continuously improving the company's market share.

(2) Changes in core competitiveness

During the period of continuous supervision, the sponsor did not find any material adverse changes in the company's core competitiveness by reviewing the listed companies and market information in the same industry, reviewing the company's prospectus, periodic reports and other information disclosure documents, and interviewing the company's senior management.

7. Changes in R&D expenditure and R&D progress

(1) Changes in R&D expenditure

Unit: 10,000 yuan

Project FY2024 FY2023 Magnitude of change (%)

Expensed R&D investment 28,103.52 26,146.02 7.49

Capitalized R&D investment - - /

Total R&D investment 28,103.52 26,146.02 7.49

Ratio of total R&D investment to operating income (%) 16.19 18.58 decreased by 2.39 percentage points

Proportion of capitalization of R&D investment (%) - - /

In 2024, the company will continue to increase its R&D efforts in core technologies, with R&D investment increasing by 7.49% year-on-year.

(2) R&D progress

The company's research projects are as follows:

Unit: 10,000 yuan

Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or

Serial number Weighing scale amount amount Phased target to be achieved Technical level Specific application prospects

achievement

Through the welding seam tracking transmission domestic leading. Involving view

Sensor, accurate detection and recognition, follow-up control

The space position of intelligent welding seams and other cross-field high, are mainly used in steel

1 Control 5,960.00 2,384.55 5,686.72 Completed Placement, with intelligent welding Precise direction, domestic structure and other flexible

The system connection control system realizes the production scenario without mature and complete solutions.

Real-time tracking of welds and welds.

Pick up.

Through ultra-high-precision drive, it is leading in China. involve

Ultra-high precision control integrated technology, NC control technology, drive mainly used in new

2 degrees of motion 5,880.00 2,345.24 4,763.83 Completed projects Sub-micron and even nano-technology and other ultra-high precision across energy sources

Drive and control the one-meter-level processing precision field in the high-precision and cutting-edge direction, degree of processing scene.

body technique. There is no maturity in China

The whole solution.

For the complex

Heterosteel structure to build robot digital leading in China. involve

Parts welding twin model, development of CAD, operation control, machine mainly used in steel

3 Connected wisdom 6,800.00 2,757.33 6,693.33 Closed Items Automatic welding robot Vision and other cross-collar structures and other soft

It can be used as a machine system to achieve high-precision and cutting-edge directions in the steel junction area and national production scenarios.

The wisdom in the field of human-controlled mechanism welding is not yet mature and complete

System research and application. solutions.

development project

Based on the precision through the frequency domain loop, the whole domestic leading. involve

Dense drive strategies and algorithms, NC control technology, and drive are mainly used in new applications

In the field of high-performance discrete domain filter technology, many other cross-energy and semiconductors

4 Debugging 9,900.00 5,609.26 9,841.99 Completed Oscillator design, friction High-precision direction in the field, manufacturing and other ultra-high-precision

Methods and force compensation algorithms have not yet been matured and fully processed in China.

Control Cucker's solution for ultra-high-precision machining.

A little study of the scene.

The project is leading the country by automatically adjusting the light. Involves biography

Constant propulsion spot diameter size and focal sensor control, mechanical design with the main matching system

Intelligent stimulation, parameters such as the position of the entry point, and other cross-domain applications such as metal cutting

5 Light cutting 12,000.00 2,603.19 11,300.92 One step to achieve high quality, high precision and cutting-edge direction, domestic cutting and processing application field

There is no mature and complete vision of the first level of intelligent efficiency and low cost.

Chemical water for fast processing. Solution.

Flat.

Metal cut by combining sensors is leading in the country. Involved Mainly applied to gold

Cut-to-form technology realizes cutting into CAD, motion control, and forming automation

6 & Automatic 6,500.00 2,983.12 4,954.12 Closed Item-type Refined Control Vision and other cross-collar application solutions

The application system is high-efficiency for a long time, and the high-precision direction is in the national direction.

The rate is stable and processed, and it is far from mature and complete

Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or

Serial number Weighing scale amount amount Phased target to be achieved Technical level Specific application prospects

achievement

Unmanned control. solutions.

Profile cutting studies five-axis motion control

Cutting key system, improve processing efficiency leading in China. involve

Technology and rate and precision are based on CAD, motion control, mainly used in steel

7 Control system 8,500.00 4,238.27 8,216.63 Completed project basis, solve multiple structures such as scene communication and machine vision

R&D uses process problems as the core cross-field high-precision and cutting-edge material processing direction.

And its response, for the H-beam direction, there is no maturity in China

Employees provide complete products and complete solutions.

Solution.

The high-speed high-speed project is aiming to pass the high-speed domestic lead. Involving high

Precision vibration constant propulsion high-precision galvanometer laser precision motion control and meter

In mirror lasers, the processed system control computer graphics and optics are mainly used in light

8 Processing Department 5,500.00 2,379.09 4,080.38 Realization of multi-disciplinary research and development of departments and processes

Unified control and application development, to achieve semiconductors, sophisticated direction, domestic semiconductors and other precision

There is no mature and complete solution direction for photovoltaic and precision electronics in the field of strategy and field.

Precision solutions in the fields of process research and scenario implementation.

Experiments. Labor demand.

Around high precision, high

Based on ease of use/multi-scenario, it is leading in China. Involving high

Dense machine tool prediction, coaxial synchronization precision motion control, machine is mainly used in half

9 4,000.00 2,474.25 3,940.92 Completed projects and other aspects of comprehensive improvement of mechanical design and other cross-conductors, precision plus

Multi-axis drive precision machine tool control in the field of high-precision direction, industrial and laser processing

There is no mature direction in the direction of actuator research and processing efficiency and refinement in China.

Development project, multi-scenario flexible and integrated solution.

Speed of adaptation.

The project is flat through the bus foundation

The intelligent bending propulsion platform realizes the domestic leading position in each bending ring. involve

In bend control, it has been seamlessly interconnected, closed CAD, motion control, and is mainly used in sheet metal

The system and realize technical environment control, optimize the operation of machine vision and other metal processing scenarios

10 Its key 500.00 104.25 159.08 technical scheme dynamic algorithm, in the processing of cross-field high-precision and cutting-edge aspects involving bending applications

The verification and realization of real-time three-dimensional orientation in technology has not yet been matured in China.

R&D system frame simulation, complete angle complete solution.

Structure, compensation, etc.

Plan.

The project is leading the country by integrating production flows. Involved in shipping

The laser production process is constantly promoted, and the dynamic control of drawings and the main matching system of machine vision are realized

In line data mining, automatic circulation, task awareness, and big data interaction have been applied to metal cutting

11 ZKTeco 800.00 224.96 224.96 Realize technology distribution, real-time data, and multiple cross-field high-precision production line processing

The collection and feedback of the service machine program, the best direction, there is no application scenario in China.

Verify and transform the production process, and provide a mature and complete solution

In-house measurement of machining efficiency and resource solutions.

Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or

Serial number Weighing scale amount amount Phased target to be achieved Technical level Specific application prospects

achievement

Trial source utilization.

Make.

Total / 66,340.00 28,103.51 59,862.88 / / / /

8. Whether the progress of the new business is consistent with the previous information disclosure (if any)

During this ongoing supervision period, the sponsor discloses the information by reviewing the company's prospectus, periodic reports and other information

Disclosure of documents, interviews with senior management of the company, based on the above-mentioned verification procedures, the sponsor did not find the company

There is new business.

9. The use of the raised funds and whether they are compliant

During the period of continuous supervision, the sponsor inspected the company's management and use system for raised funds and the special account for raised funds

Bank statements and detailed accounts of the use of raised funds, and random checks and inspections of vouchers for the payment of large amounts of raised funds

The use of information disclosure documents and decision-making process documents for the raised funds, and the on-site inspection of the raised funds investment project site,

Understand the progress of project construction and the use of funds, and obtain the report on the use of raised funds issued by listed companies

and the annual audit accountant issued by the use of raised funds to conduct interviews with the company's senior management

Talk.

Based on the aforesaid verification procedures, the sponsor believes that the Company has established a fund management during the period of continuous supervision

management system and to be implemented, the use of raised funds has fulfilled the necessary decision-making procedures and information disclosure procedures, basis

In the aforesaid inspection, no material circumstances were found in the illegal use of the raised funds.

10. Shareholding, pledge and freezing of controlling shareholders, actual controllers, directors, supervisors and senior management personnel

and the reduction of holdings

As of December 31, 2024, the controlling shareholders, actual controllers, directors, supervisors and senior officers of the Company

The shareholding, pledge, freezing and reduction of holdings of management personnel are as follows:

Unit: shares

Name Position Beginning of term of office Termination of term of office Number of shares held at the beginning of the year Number of shares held at the end of the year Increase or decrease of shares during the year Pledge freezing

Date Date Change Reason for Change Conclusion

Chairman of the Board 2018-7-4 2027-6-24 Capital reserve transfer

Tang Ye General Manager 28,053,277 38,099,288 10,046,011 Increase in share capital, inquiry None

(Departed) 2021-7-2 2024-6-24 Reduced by method of transfer

Name Position Beginning of term of office Termination of term of office Number of shares held at the beginning of the year Number of shares held at the end of the year Increase or decrease of shares during the year Pledge freezing

Date Date Change Reason for Change Conclusion

hold

Transfer of capital reserves

Dai Tian Tian Director 2018-7-4 2027-6-24 21,941,699 29,799,179 7,857,480 Increase in share capital, inquiry None

Deputy General Manager Transfer: Reduced

hold

Transfer of capital reserves

Lu Lin Director 2018-7-4 2027-6-24 19,036,113 25,853,058 6,816,945 Increase in share capital, inquiry None

Less by the method of transfer

hold

Transfer of capital reserves

Chapter 10,000 Board of Supervisors 2018-7-4 2027-6-24 17,032,243 23,131,540 6,099,297 Increase in share capital, inquiry None

Chairperson Less the method of transfer

hold

General Manager 2024-7-1 2027-6-24 Capital reserve transfer

Xie Miao 12,022,768 16,328,175 4,305,407 Increase in share capital, inquiry None

Supervisor (from 2018-7-4 2024-6-24 Transfer method

Ren) holds

Chen Yuanyuan Employee Supervisor 2023-8-15 2027-6-24 0 0 0 / /

Ru Shanshan Supervisor 2024-6-25 2027-6-24 0 0 0 / /

Deputy General Manager Capital Reserve Transfer

Zhou Xun Secretary of the Board of Directors 2018-7-4 2027-6-24 832,160 1,165,024 332,864 Increase in share capital None

book

Transfer of capital reserves

Han Donglei Chief Financial Officer 2018-7-4 2027-6-24 238,193 250,470 12,277 Increase in share capital, inquiry None

Less by the method of transfer

hold

Transfer of capital reserves

Hu Jia Director 2018-7-4 2027-6-24 238,350 300,690 62,340 Increase in share capital, inquiry None

Deputy General Manager Transfer: Reduced

hold

Xu Jun Project Execution 2018-7-4 2027-6-24 250,593 350,830 100,237 Capital reserve transferred None

Director increases share capital

Yang Xiao Core Technology 2018-7-4 2027-6-24 78,750 110,250 31,500 Capital reserve transferred None

Personnel increase share capital

Yun Xiaoyuan Core Technology 2018-7-4 2027-6-24 78,750 110,250 31,500 Capital reserve transferred None

Personnel increase share capital

Jiang Xiao Independent Director 2024-6-25 2027-6-24 0 0 0 / /

Zeng Saixing Independent Director 2024-6-25 2027-6-24 0 0 0 / /

Zhu Hongqi Independent Director 2024-6-25 2027-6-24 0 0 0 / /

Jin Jianzhong Independent Director 2018-7-4 2024-6-24 0 0 0 / /

Name Position Beginning of term of office Termination of term of office Number of shares held at the beginning of the year Number of shares held at the end of the year Increase or decrease of shares during the year Pledge freezing

Date Date Change Reason for Change Conclusion

(Departed)

Zhang Feng Independent Director 2018-7-4 2024-6-24 0 0 0 / /

(Departed)

Xi Juntong Independent Director 2018-7-4 2024-6-24 0 0 0 / /

(Departed)

Total / / / 99,802,896 135,498,754 35,695,858 / /

Note: The above table includes directors, supervisors and senior management who will leave in 2024.

In addition to the above, the controlling shareholders, actual controllers, directors, supervisors and senior management of the Company are not

There are other pledges, freezes and reductions.

11. Other matters on which the sponsor deems it necessary to express its opinion

Based on the above-mentioned continuous supervision work carried out by the sponsor, during this continuous supervision period, the sponsor did not find that it should

Other matters on which comments are expressed.

(No text below)

(There is no text on this page, it is the signature page of the "CITIC Securities Co., Ltd. 2024 Continuous Supervision and Tracking Report on Shanghai Bochu Electronic Technology Co., Ltd.")

Sponsor Representative:

Guo Dan Yu Haiyue

CITIC Securities Co., Ltd

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