Company code: 688213 Company abbreviation: Smartway

SmartSens (Shanghai) Electronic Technology 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 described the possible relevant risks in detail in the annual report, please refer to "Section 3 Management Discussion and Analysis" of the annual report "4. 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. Ernst & Young Huaming 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

At the sixth meeting of the second board of directors (regular meeting) held on April 18, 2025, the company deliberated and approved the "About 2024

The company intends to distribute profits based on the total share capital registered on the record date of the implementation of equity distribution minus the shares in the company's special securities account for repurchase, and distribute a cash dividend of 0.15 yuan (tax included) to all shareholders for every 1 share.

During the period from the disclosure of the profit distribution plan to the registration date of the implementation of equity distribution, if there is a change in the total share capital of the company, the company will adjust the distribution ratio accordingly in accordance with the principle that the total amount of distribution remains unchanged, and separately announce the specific adjustment.

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

√ Applicable □ Not applicable

Special Arrangements for Corporate Governance:

√ there is a voting rights differential arrangement in the Company

On December 15, 2020, the company held the founding meeting and the first general meeting of shareholders, all shareholders attended the meeting, and the meeting unanimously deliberated and approved the "Proposal on the Establishment of Special Voting Shares by Smartway (Shanghai) Electronic Technology Co., Ltd.", and formulated the articles of association of the company to set up special voting shares arrangement. Unless the special voting rights arrangement is terminated by a resolution of the general meeting of shareholders of the Company, the special voting rights of the Company will continue to operate for a long time. According to the special voting rights setting arrangement, the company's share capital consists of Class A shares with special voting rights and Class B ordinary shares with special voting rights. Except for the consideration of specific matters, the number of voting rights corresponding to Class A shares and Class B shares is the same, and the number of voting rights per class A share held by Xu Chen, the controlling shareholder and actual controller, is five times the number of voting rights per share of Class B shares held by other shareholders.

As of the end of the reporting period, Xu Chen, the actual controller, directly held 13.72% of the company's shares, and through the setting of special voting rights, the voting rights of the company controlled by Xu Chen himself and through Mo Yaowu, a person acting in concert, were 48.16%.

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-share Shanghai Stock Exchange SmartSens 688213 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: Minjun Huang /

Address: Science and Technology Oasis, No. 889 Tianlin Road, Minhang District, Shanghai /

Phase IV Building 8

Phone: 021-64853572 /

Fax//

E-mail ir@smartsenstech.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, design and sales of high-performance CMOS image sensor chips. As committed to providing multiple sessions

The company's products have been widely used in many high-tech applications such as security, machine vision, smart phones, automotive electronics, industrial perception and so on, and help the industry to develop in the direction of more intelligence and informatization.

2.1.1 The world's leading field of smart security, industrial machine vision blossoms in many points

In 2024, the company's smart security industry revenue will be 215,005.84 million yuan, an increase of 28.64% over the same period of the previous year, accounting for the main revenue

The proportion is 36.03%. According to TSR statistics, from 2020 to 2022, the company continued to rank No. 1 in global security CIS shipments, 2023

The company continued to rank first in global shipments in the security CIS market with a market share of 48.2%.

From traditional analog monitoring to high-definition network monitoring, and then to today's intelligence, CIS technology continues to break through, in low light or full darkness

In the environment, security CIS will enhance low-light imaging capabilities, improve image quality, and meet the needs of 24-hour all-weather monitoring

It provides a more efficient and intelligent solution. According to Sigmaintell's "Global Security Image Sensor Industry Chasing

According to the data, the mainstream resolution of global security CIS products has gradually transitioned from 2M-3M to 4M-6M, which is a higher specification

8M and above resolution products are also growing rapidly. At the same time, the number of security cameras has expanded from monocular to binocular and trinocular, and binocular and multi-opular have become one of the standard configurations of product iteration.

As a leading enterprise in the world's smart security CIS, the company has focused on the development of visual imaging technology and CIS products in the field of security since its inception, exploring more potential needs of security customers, and using high-performance technology products to accurately reach customers' practical applications. Company holdings

Continuing to focus on the high-end field, it has successfully launched the Pro Series full-performance upgrade series, AI Series high-end imaging series, and SL Series

Cutting-edge security product portfolios such as the Super Starlight series to better meet the intelligent stage of the security industry.

In recent years, with the continuous evolution of Internet of Things technology, smart home applications have gradually integrated into people's daily life. Common smart home devices, such as smart video doorbells and home cameras (IPC), are mostly battery-powered cameras, which are widely sought after in the consumer market due to their small size, no wiring, flexible installation, and support for WiFi network viewing. In order to meet the needs of low-power cameras for 24-hour continuous recording, the company's low-power fast-start solution can support full-time recording (AOV) function, which can record at an ultra-low frame rate of 1 frame per second when no event is triggered, and wake up quickly for normal recording after the event is triggered, so as to achieve 7*24 hours of all-weather recording, which is not only suitable for battery-powered camera devices such as smart doorbells/locks, dash cams, hunting cameras, etc., but also can solve solar 4G Monitoring and other non-power and non-network equipment due to weather conditions are insufficient power storage and need to save electricity. The company will launch in 2024

The Super Starlight Series 4MP image sensor SC485SL uses an upgraded version of SmartAOV? 2.0 technology, with high sensitivity,

High dynamic range, low noise, high-temperature imaging stability, ultra-low power consumption and other advantages, as well as support for full-time video recording (AOV) function, with excellent imaging performance, to help the iterative upgrade of intelligent security applications such as AI black light full-color cameras.

In addition, the company has also launched several new upgraded AI series CMOS image sensors, which integrate better night vision full-color imaging,

The combination of high-temperature imaging and low-power performance can better empower smart wireless cameras and multi-camera solutions such as home IPCs and AIoT terminals, and continue to promote the iterative upgrade of AI series products.

At the same time that the security industry has opened the intelligent stage, machine vision technology is also becoming the core driving force of modern industry, with the deepening of automation, digitalization and intelligence in the field of industrial manufacturing worldwide, machine vision will get a wider space for development. With the acceleration of the commercialization of AI technology, emerging downstream application markets are also emerging, such as drones, sweeping robots, industrial robots, humanoid robots, face payment, electronic dictionary pens, AR/VR, etc., providing continuous momentum for the development of the machine vision industry.

As a pioneer and leader in the field of machine vision, the company's machine vision products have a significant technical influence and market position in the world, and the products have been widely used in the industrial manufacturing and logistics fields represented by intelligent manufacturing, intelligent screening and intelligent logistics code reading, as well as drones, sweeping robots, industrial and multi-form robots, face payment, electronic dictionary pens and

AR/VR and other emerging application fields, and maintain close cooperative relations with a number of leading customers.

In response to the actual needs of intelligent image processing in the field of industrial CIS, the company has launched area arrays, intelligent transportation systems (ITS),

The rich product matrix of three categories of line array covers all kinds of industrial detection scenarios and mainstream industrial intelligent scenarios such as industrial barcode readers, AGV navigation systems, 3D scanners, etc., providing diversified, accurate, stable and reliable solutions for customers in different fields.

In the future, the company will continue to focus on breakthroughs in high-end core technologies, and continue to launch more high-performance machine vision application products and adapt to more application scenarios.

2.1.2 Shipments of XS series high-end products have increased significantly, and the smartphone business has become an important engine for the company's rapid revenue growth

In 2024, the company's smartphone revenue will be 329,115.57 million yuan, an increase of 269.05% over the same period of the previous year, accounting for the proportion of main revenue

55.15% for example. According to the TSR data report, in 2024, the company will rank 5th in the global mobile phone CIS market shipment ranking.

The shipment share was 11.2%.

According to YOLE data, the market size of the CMOS industry will reach $21.8 billion in 2023, of which the mobile phone CMOS market will account for 163.97

100 million US dollars, accounting for more than 75%. Therefore, the field of smart phone CIS is also an important area for the business layout of major CIS manufacturers.

According to IDC data, global smartphone shipments in the fourth quarter of 2024 will be 332 million units (up 2.4% year-on-year), making it the world's smarthand

After eight consecutive quarters of year-on-year declines from 2021Q3 to 2023Q2, shipments have achieved year-on-year growth for the sixth consecutive quarter. In terms of the Chinese market, China's smartphone shipments in the fourth quarter of 2024 were 76 million units (up 3.22% year-on-year), showing a recovery trend, and smartphone shipments are expected to maintain a year-on-year growth trend.

Figure 1: Global smartphone shipments (100 million units) Figure 2: China's smartphone shipments (100 million units)

Source: IDC, Hua Chuang Securities Source: IDC, Hua Chuang Securities

IDC data shows that the majority of Chinese mid-range mobile phone consumers are willing to upgrade their consumption and choose flagships with a better user experience in all aspects

Products. In the third quarter of 2024, China's share of high-end mobile phone shipments above $600 reached 29.3% (up 3.7% year-on-year). And with it

With the release of new products and the gradual penetration of AI mobile phones, it is expected that AI mobile phones will further drive the trend of high-end smartphones.

Figure 3: China's smartphone shipments by price share (USD) Figure 4: China's AI phone shipments and forecast (100 million units)

Source: IDC, Hua Chuang Securities Source: IDC, Hua Chuang Securities

According to Sony's I&SS Division's 2024 investor conference, video will be the driving force for the mainstream smartphone CIS market

Factors for future growth. Looking at the traffic trends by app on mobile devices, benefiting from video shooting/sharing, online live streaming,

Driven by apps such as live chat, video is expected to grow significantly at a CAGR of about 24% from 2023 to 2029.

Figure 5: Traffic trends by app on mobile devices

Source: Sony, China Machine Vision Network, China Post Securities Research Institute

For the high-end flagship mobile phone track, the company's shipments of several high-end 50 million pixel products applied to the main camera, wide-angle, telephoto and front camera lens of high-end flagship mobile phones have increased significantly year-on-year, and the company's flagship main camera products have core performance advantages such as high dynamic range, low noise, fast focus, and ultra-low power consumption, which can bring an excellent image experience with true and vivid colors and delicate and clear imaging to the main camera of the flagship phone. At the same time, the company launched a 50 million pixel cost-effective product applied to the main camera of ordinary smartphones, empowering the main camera of mainstream smartphones with excellent low-light imaging performance, and helping mobile imaging technology and user experience to a new height. The company's cooperation with a number of customers has been comprehensively deepened, the products meet more application needs, and the market share has continued to increase, thereby further enhancing the company's market position and brand influence.

For the high-end flagship mobile phone application CIS, the company also launched a 50 million pixel high-end hand that is localized in the whole process from design to manufacturing

CMOS image sensors. The company will continue to increase investment in local production and research technology development, continue to launch domestic high-end mobile phone CIS series products with ultra-high design iteration efficiency and advanced technical strength, and build an innovative, stable and reliable national supply chain system to ensure high-quality and high-stability customer supply services.

At the same time, the company will continue to improve the dynamic range, noise reduction, power consumption and other performance of the product, further improve the differentiated product matrix, bring excellent imaging performance to the smartphone imaging system, and continue to enhance the company's market position and brand influence in the field of smartphones.

2.1.3 Driven by intelligent driving, the automotive electronics business has become the driving force for the company's long-term sustainable development

In 2024, the company's automotive electronics field will achieve sales revenue of 526.9339 million yuan, an increase of 79.09% over the same period of the previous year, accounting for the main business

The percentage of income is 8.83%.

According to YOLE data, the automotive CIS market is expected to increase from $2.3 billion in 2023 to $3.2 billion in 2029,

The CAGR was 5.4%, and the main reasons driving this growth were the increase in the number of cameras installed per vehicle and the improvement in sensor resolution.

In the process of accelerating the implementation of intelligent driving technology, in-vehicle cameras, as an indispensable part of intelligent driving solutions, are undergoing a double transformation of the increase in the number of vehicles carried on bicycles and the upgrading of technology. CIS is the core device of the vehicle camera module, and its value accounts for about 50% of the total cost of the vehicle camera module, which is the key to achieving high resolution, adapting to complex lighting and environmental conditions, and meeting urban NOA scenarios in the intelligent driving process. In the future, the number of cameras outside the cabin is expected to continue to increase as autonomous driving technology moves from Level 2 and Level 3 to higher levels. These cameras will work in tandem with other sensors such as millimeter-wave radar and lidar to build a more comprehensive and accurate model of the vehicle's surroundings, further ensuring driving safety and bringing a more comfortable and convenient travel experience to drivers and passengers.

Figure 6: Analysis of the value of automotive camera modules

Source: Deppon Institute

The company's on-board (AT) series image sensor products cover 1MP~8MP resolution, which is suitable for on-board imaging and perception

The requirements of three major application scenarios in the cabin. In 2024, the company's wholly-owned subsidiary, Fling Microelectronics, will launch the Fling M1 in-vehicle vision processing chip series, providing high-performance in-vehicle end-side vision combination solutions with AI SoC + Sensor system-level integration for various in-vehicle vision application scenarios such as front/rear view, in-cabin monitoring, and electronic rearview mirrors. M1 automotive vision processing chip series products have the advantages of excellent image processing performance, low power consumption, small package size, functional safety, information security, etc., which can provide richer, flexible, stable and reliable options for image performance improvement and visual preprocessing of vehicle cameras.

Promote the upgrading and development of the application of intelligent driving vision system.

As one of the few manufacturers in China that can provide automotive-grade CIS solutions, in 2024, the company will apply it to intelligent driving (including rings

Shipments of many products such as TV, Perimeter and Forward Vision) and cabin have increased significantly, and have been mass-produced by major car factories such as BYD, Geely, Chery, SAIC, GAC, Leap, Great Wall, Dongfeng Nissan, Jiangling, and Ssangyong in South Korea. According to the TSR data report, in 2023, companies are operating in the It ranks 4th in the global automotive CIS market and 2nd in China. With the trend of intelligent automobiles and the continuous penetration of intelligent driving affirmative action solutions of car companies

The automotive electronics business will also become a power source for the company's long-term sustainable development.

In the future, the company will continue to rely on its core technology and product performance advantages to further enrich the on-board product matrix, and inject strong momentum into the development of intelligent vehicles and the comprehensive popularization of intelligent driving technology.

2.2 Main business model

The company's business model belongs to the Fabless model, and the company focuses on the R&D, design and sales of CMOS image sensors.

However, considering the convenience and quality control of final product debugging, the company's self-built test plant has completed most of the final test (FT test) work, and the company does not have a huge investment in wafer production lines and packaging plants. The company has an independent and complete R&D, procurement, production and sales system, and independently carries out business activities according to its own situation, market rules and operating mechanisms.

2.3 The situation of the industry

2.3.1 The development stage, basic characteristics and main technical thresholds of the industry

(1) Global semiconductor and integrated circuit industry

The global semiconductor industry has a certain cyclical nature, and the business cycle is closely related to factors such as macroeconomy, downstream application demand, and its own capacity inventory. According to Nuvama data, chip design accounts for 50%, wafer manufacturing accounts for 36%, packaging and testing and materials account for 9% and 5% respectively in the distribution of revenue streams across the entire semiconductor value chain.

According to the SIA Semiconductor Association, global semiconductor sales will reach $627.6 billion in 2024, an increase of 19.1% year-on-year

The semiconductor market is expected to grow by double digits by 2025. Especially in the fields of artificial intelligence, Internet of Things, and automotive electronics, the industry may usher in greater development opportunities.

(2) China's semiconductor and integrated circuit industry

In the industry, destocking is gradually in place, and the demand for consumer electronics, AI and data centers, automotive electronics and other industries is pulling

Under the joint effect of the integrated circuit industry, the recovery trend continued. According to the statistics of the China Semiconductor Industry Association, in 2024, domestic chips will be set

Industry sales are expected to be RMB646.04 billion, up 11.9% from 2023.

Driven by policy support and market demand, the performance and reliability of domestic semiconductor chips will gradually improve, which is expected to replace imported chips and further promote the development of the domestic semiconductor industry.

(3) CMOS image sensor market pattern and development trend

With the improvement of CMOS image sensor technology, the continuous emergence of emerging application scenarios, and the acceleration of AI applications,

As the demand for high-performance sensing continues to grow, the overall shipments and sales of CMOS image sensors will continue to expand. according to

According to YOLE, the global CIS market is expected to grow from $21.8 billion in 2023 at a CAGR of 4.7%.

$28.6 billion in 2029. Among them, smartphones are currently the largest downstream application in the market, accounting for more than 75% in 2023. According to IDC

According to the data, China's smartphone shipments in the fourth quarter of 2024 will be 76 million units (a year-on-year increase of 3.22%), showing a recovery trend, and smartphone shipments are expected to maintain a year-on-year growth trend. In the process of accelerating the implementation of intelligent driving technology, the automotive market is expected to continue to maintain a high growth rate in the future. At the same time, industrial, machine vision, medical and other fields will also bring incremental markets.

2.3.2 Analysis of the company's industry position and its changes

The company's products have been widely used in smart security fields including network cameras, analog closed-circuit cameras, home care cameras, smart doorbells, drones, sweeping robots, industrial and multi-form robots, industrial cameras, smart transportation, face recognition, etc.; Intelligent automotive electronics applications such as vehicle surround view and peripheral view cameras, driver monitoring systems, passenger monitoring systems, and vehicle driving recorders; Consumer electronics applications such as smartphones, tablets, smart homes, and smart health are driving the development and progress of smart life.

The company is technology-driven to meet the needs of industry applications through the comprehensive layout of the FSI-RS series, BSI-RS series and GS series

In the field, it has the core advantages of competing with leading CMOS image sensor manufacturers such as Sony, covering high-end, medium-to-low-end levels, meeting the diversified product needs of customers and becoming the backbone of domestic substitution.

The company has become a leading CMOS image sensor supplier for smart security, smart phones, and automotive electronics.

From 2020 to 2023, the company ranked No. 1 in global security CIS shipments; In 2023, the company ranked in the global automotive CIS market by shipment

ranked 4th in China and 2nd in China; In 2024, the company will rank 5th in the global mobile phone CIS market shipment ranking, with shipments

accounted for 11.2%.

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

(1) Smart security field

From traditional analog monitoring to high-definition network monitoring, and then to today's intelligence, CIS technology continues to break through, in low light or full darkness

In the environment, security CIS will strengthen low-light imaging capabilities, improve image quality, meet the needs of 24-hour all-weather monitoring, and provide a more efficient and intelligent solution for security protection. According to Sigmaintell's "Global Security Image Sensor Industry Chasing

According to the data, the mainstream resolution of global security CIS products has gradually transitioned from 2M-3M to 4M-6M, which is a higher specification

8M and above resolution products are also growing rapidly. At the same time, the number of security cameras has expanded from monocular to binocular and trinocular, and binocular and multi-opular have become one of the standard configurations of product iteration.

At the same time that the security industry has opened the intelligent stage, machine vision technology is also becoming the core driving force of modern industry, with the deepening of automation, digitalization and intelligence in the field of industrial manufacturing worldwide, machine vision will get a wider space for development. With the acceleration of the commercial implementation of AI, emerging downstream application markets are also emerging, such as drones, sweeping robots, industrial robots, humanoid robots, face payment, electronic dictionary pens, AR/VR, etc., providing continuous momentum for the development of the machine vision industry.

In the emerging field of machine vision, the application breadth and depth of global shutters are rapidly improving, and the trend of "machine vision instead of manual recognition" has brought great growth space to the industry.

(2) Smartphone field

According to YOLE data, the market size of the CMOS industry will reach $21.8 billion in 2023, of which the mobile phone CMOS market will account for 163.97

100 million US dollars, accounting for more than 75%. Therefore, the field of smart phone CIS is also an important area for the business layout of major CIS manufacturers.

According to IDC data, global smartphone shipments in the fourth quarter of 2024 will be 332 million units (up 2.4% year-on-year), making it the world's smarthand

After eight consecutive quarters of year-on-year declines from 2021Q3 to 2023Q2, shipments have achieved year-on-year growth for the sixth consecutive quarter. In the fourth quarter of 2024, China's smartphone shipments will be 76 million units (up 3.22% year-on-year), showing a recovery trend, and smartphone shipments are expected to maintain a year-on-year growth trend. With the release and gradual penetration of AI mobile phones, it is expected that AI mobile phones will further drive the trend of high-end smartphones.

(3) Automotive electronics

In the process of accelerating the implementation of intelligent driving technology, in-vehicle cameras, as an indispensable part of intelligent driving solutions, are undergoing a double transformation of the increase in the number of vehicles carried on bicycles and the upgrading of technology. CIS is the core device of the vehicle camera module, and its value accounts for about 50% of the total cost of the vehicle camera module, which is the key to achieving high resolution, adapting to complex lighting and environmental conditions, and meeting urban NOA scenarios in the intelligent driving process. In the future, the number of cameras outside the cabin is expected to continue to increase as autonomous driving technology moves from Level 2 and Level 3 to higher levels. These cameras will work in tandem with other sensors such as millimeter-wave radar and lidar to build a more comprehensive and accurate model of the vehicle's surroundings, further ensuring driving safety and bringing a more comfortable and convenient travel experience to drivers and passengers.

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 7,830,383,371.76 6,145,747,448.32 27.41 6,054,010,518.20

Shares attributable to listed companies 4,188,852,138.40 3,740,951,896.03 11.97 3,731,455,336.54

East's net worth

Operating income 5,968,147,934.08 2,857,343,251.07 108.87 2,482,987,309.22

Shares attributable to listed companies 392,738,925.26 14,215,461.22 2,662.76 -82,748,036.47

East's net profit

Attributable to shares of listed companies

Non-recurring deduction of East 391,418,816.53 607,391.17 64,342.63 -115,976,526.67

Net profit from profit or loss

374,410,051.42 767,009,708.31 -51.19 -1,523,989,386.87 arising from operating activities

Net gold flow

The weighted average net assets closed at 9.89 0.38, an increase of 9.51 percentage points -2.52

Profit rate (%)

Basic earnings per share (RMB 0.98 0.04 2,350.00 -0.22

/share)

Diluted earnings per share (RMB 0.98 0.04 2,350.00 -0.22

/share)

R&D investment accounted for 7.50 10.01 percentage points of operating revenue, down 2.51 percentage points from 12.37

Proportion 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 837,395,711.35 1,619,493,812.81 1,750,661,093.98 1,760,597,315.94

Attributable to shareholders of listed companies 14,026,121.38 135,775,050.64 123,436,625.92 119,501,127.32

net profit

attributable to shareholders of listed companies

19,606,289.23 132,936,174.33 152,405,825.01 86,470,527.96

net profit after that

Cash from operating activities -380,940,847.77 72,477,200.14 -305,525,231.34 988,398,930.39

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 11,403

The total number of common shareholders at the end of the previous month prior to the date of disclosure of the annual report was 12,779

(Households)

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

Preferred shares whose voting rights were restored at the end of the previous month prior to the disclosure date of the annual report were 0

Total number of shareholders

Total number of shareholders holding special voting shares as of the end of the reporting period1

(Households)

Holding of special voting shares1 at the end of the previous month prior to the disclosure date of the annual report

Total number of shareholders (households)

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

Stake, token, or freeze

Name of Shareholder Increase in Shares at the End of the Reporting Period Holding Limited Sale Shareholder

(Full name) Reduction Ratio (%) Number of Conditional Shares Nature

The amount of shares in the quantity

state

Xu Chen 0 54,828,443 13.72 54,828,443 None 0 From

Ran

Huaxin Investment Management

Limitation of Liability

Company - State State Ownership Law

IC production 0 29,543,603 7.39 0 None 0 people

investment funds

The second phase of the shares has

Limited to companies

Mo Yaowu 0 23,968,856 6.00 23,968,856 None 0 From

Ran

Brizan China Foreign Law

Holdings -2,271,347 23,402,230 5.85 0 None 0

Limited

Komsomolsk Thinking

Wei Technology Industry

Investment partnership -1,815,453 17,170,441 4.30 0 None 0 Other

Industry (Limited Partnership

Gang)

Ma Weijian 0 16,404,798 4.10 0 None 0 Domestic

Ran

Forebright

Smart Eyes -8,312,764 16,012,111 4.01 0 N/A 0 Foreign Law

Technology people

Limited

Hubble Foreign Law

Ventures Co., 0 7,912,561 1.98 0 None 0

Limited

CITIC Securities stocks

Copies of limited company

- Harvest Certificate

STAR Market Chips 4,403,117 6,029,157 1.51 0 None 0 Others

Transactional openness

index securities

investment fund

China Construction Silver

The shares of the bank are limited

Company-Invesco 4,867,346 4,867,346 1.22 0 N/A 0 Other

The Great Wall is well studied

Select stock type certificates

Bond investment funds

Explanation of the above-mentioned shareholder affiliation or concerted action Mr. Xu Chen is the controlling shareholder and actual controller of the Company, Mr. Mo Yaowu

for its concerted actors.

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

illustrate

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

Unit: shares

Preface Number of Shares Voting Rights Reporting Period Voting Rights Received

Name of Shareholder Common Shares Special Voting Rights Number of Voting Rights Proportional Voting Within the Limit to the Restricted

Increase or decrease of share rights

1 Xu Chen 114,407 54,714,036 273,684,587 44.28% 0.01% None

Huaxin Investment Management

Limitation of Liability

Company - State

2 Integrated circuit production 29,543,603 0 29,543,603 4.78% 0.00% none

investment funds

The second phase of the shares has

Limited to companies

3 Mo Yaowu 23,968,856 0 23,968,856 3.88% 0.00% None

Brizan China

4 Holdings 23,402,230 0 23,402,230 3.79% -0.36% None

Limited

Komsomolsk Thinking

Wei Technology Industry

5 Investment partnerships 17,170,441 0 17,170,441 2.78% -0.29% None

Industry (Limited Partnership

Gang)

6 Ma Weijian 16,404,798 0 16,404,798 2.65% 0.00% None

Forebright

7 Smart Eyes 16,012,111 0 16,012,111 2.59% -1.34% None

Technology

Limited

Hubble

8 Ventures Co., 7,912,561 0 7,912,561 1.28% 0.00% None

Limited

CITIC Securities stocks

Copies of limited company

- Harvest Certificate

9 STAR Market chips 6,029,157 0 6,029,157 0.98% 0.71% none

Transactional openness

index securities

investment fund

China Construction Silver

The shares of the bank are limited

10 Companies-Invesco 4,867,346 0 4,867,346 0.79% 0.79% None

The Great Wall is well studied

Select stock type certificates

Bond investment funds

Sum / 145,425,510 54,714,036 418,995,690 / / /

plan

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

√ Applicable □ Not applicable

Note: The above shareholding ratio is the proportion of the number of shares held in the total share capital of the company, the shares held by Mr. Xu Chen are shares with special voting rights, and Mr. Xu Chen and Mr. Mo Yaowu, who acts in concert, hold a total of 48.16% of the company's voting rights.

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 5968.1479 million yuan, an increase of 108.87% over the same period of last year; Attributable to listed companies

The net profit of shareholders was 392.7389 million yuan, and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 391.4188 million yuan, a significant increase from the same period last year.

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