China Merchants Securities Co., Ltd

About Nanjing Guobo Electronics Co., Ltd

2024 Annual Continuous Supervision and Follow-up Report

In accordance with the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing, the Rules for the Listing of Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange and other relevant laws and regulations, China Merchants Securities Co., Ltd. (hereinafter referred to as the "Sponsor") is responsible for the continuous supervision of Nanjing Guobo Electronics Co., Ltd. (hereinafter referred to as "Guobo Electronics" or "the Company"), and is responsible for the continuous supervision of Guobo Electronics after its listing, and issues this annual report on continuous supervision.

1. Continue to supervise the work

Preface Work content Continuous supervision

number

Establish and effectively implement the continuous supervision system, and for the sponsor institutions have been established, improved and effectively enforced

1 Specific continuous supervision work, formulate corresponding work plans The continuous supervision system has been implemented and formulated

Corresponding work plan

According to the relevant regulations of the China Securities Regulatory Commission, the sponsor has signed a contract with Guobo Electronics at the beginning of the continuous supervision work

2. Before, the "Sponsorship Agreement" was signed with the listed company or relevant parties, which clarified the two

to clarify the rights and obligations of both parties during the period of continuous supervision, and report the rights and obligations of the parties during the period of continuous supervision

Shanghai Stock Exchange for the record, and reported to the Shanghai Stock Exchange for the record

The sponsor institution communicates on a daily basis, on a regular basis

Through daily communication, regular return visits, on-site inspections, due diligence or irregular return visits, on-site inspections, etc

3. Carry out continuous supervision work to understand the business situation of Guobo Electronics.

Continued supervision of Guobo Electronics was carried out

make

During the period of continuous supervision, in accordance with the relevant regulations, the listed companies will continue to supervise the violations of the law in 2024

4. If a public statement is made on the matters of regulation, it shall be disclosed to Shanghai Securities before the period of which there is no need to sponsor in accordance with the relevant regulations

Violations of laws and regulations reported by the exchange and publicly declared by the designated institutions after being reviewed by the Shanghai Stock Exchange

Announcements in the media about the situation

During the period of continuous supervision, the listed company or relevant parties violated the law

In case of violations, breach of commitments and other matters, it should be discovered or should be found that Guobo Electronics in 2024 is continuing to supervise

Report to the Shanghai Stock Exchange within five working days from the date of 5, and there is no violation of laws and regulations or breach of commitment during the reporting period

The content of the report includes the listed company or the relevant parties in violation of laws and promises

regulations, breach of commitment and other matters, the sponsor to take

supervisory measures, etc

Supervise listed companies and their directors, supervisors, and senior management personnel to comply with the supervision of sponsor institutions during the period of continuous supervision

6 Abide by laws, regulations, departmental rules and issued by the Shanghai Stock Exchange Guide Guobo Electronics and its directors, supervisors,

business rules and other normative documents, and earnestly perform the duties of its senior management personnel to comply with the law, law

Commitments made by regulations, departmental rules and the Shanghai Stock Exchange

published business rules and other specifications

sexual documents, and earnestly fulfill what they have made

Commitments

Supervise listed companies to establish, improve and effectively implement the corporate governance system, and the sponsor agency urges Guobo Electronics to comply with the phase

including but not limited to the general meeting of shareholders, the board of directors, and the board of supervisors to improve the corporate governance system

7 rules of procedure and rules of conduct for directors, supervisors and senior management, and strict implementation of corporate governance

Supervise directors, supervisors, and senior managers

Managers comply with the Code of Conduct

Supervise listed companies to establish, improve and effectively implement the internal control system, including the internal control of Guobo Electronics by the sponsor institution

Including but not limited to the design, implementation and effectiveness of financial management systems, accounting systems and internal systems

8. The audit system, as well as the use of raised funds, related party transactions, external verification, and the internal control system of Guobo Electronics

Guarantees, foreign investments, derivatives transactions, and control of subsidiaries comply with the relevant regulatory requirements and are available

The procedures and rules of major business decisions are implemented effectively, which can ensure the company's standardization

run

Supervise listed companies to establish, improve and effectively implement the information disclosure system, and the sponsor urges Guobo Electronics to strictly enforce it

9 degrees, review information disclosure documents and other relevant documents, and have an adequate information disclosure system to review information disclosure

The listed company is convinced of the documents submitted to the Shanghai Stock Exchange and other relevant documents

There are no false records, misleading statements or material omissions

Information disclosure documents for listed companies and to the China Securities Regulatory Commission

Other documents submitted by the Shanghai Stock Exchange shall be reviewed in advance

Problematic information disclosure documents promptly urge the company to correct them

or supplement, if the company does not correct or supplement, it shall promptly disclose the information to the Shanghai sponsor agency to Guobo Electronics

10 Stock Exchange Reports; The information disclosure documents of listed companies have not been reviewed, and there is no response

If the prior review is conducted, the listed company shall fulfill its information disclosure obligations and report to the Shanghai Stock Exchange in a timely manner

Within five trading days after the completion of the review of the relevant documents

The information disclosure documents with problems should be supervised and listed in a timely manner

If the company corrects or supplements, and the listed company does not correct or supplement,

It should be reported to the Shanghai Stock Exchange in a timely manner

Pay attention to the listed company or its controlling shareholder, actual controller, and director in 2024, the listed company or its holding

Supervisors, supervisors, and senior managers are subject to the shareholders, actual controllers, directors, and supervisors of the Administrative Department of the China Securities Regulatory Commission

11. Penalties, disciplinary actions by the Shanghai Stock Exchange or by the Shanghai Securities Exchange, senior management personnel are not subject to China

The situation of the regulatory concern letter issued by the Yi Exchange and urged it to improve the internal administrative penalties of the China Securities Regulatory Commission and the Shanghai Securities Exchange

control system, take measures to correct the disciplinary action of the exchange or be Shanghai Securities

The situation in which the exchange issues a letter of regulatory concern

Continue to pay attention to the performance of listed companies and their controlling shareholders and actual controllers in 2024, Guobo Electronics and its holdings

12. In the case of commitments, the listed company and its controlling shareholders, actual controlling shareholders and actual controllers have not failed to fulfill their commitments

If the person fails to fulfill the commitment, the commitment shall be made to the Shanghai Stock Exchange in a timely manner

report

Pay attention to the reports of public media on listed companies, and target the market in a timely manner

Rumors are verified. After verification, it is found that the existence of the listed company should be in 2024, and after verification by the sponsor,

13. Disclosure of undisclosed material matters or non-existence of disclosed information and facts shall be submitted to Shanghai Securities in a timely manner

If so, promptly urge the listed company to truthfully disclose or clarify; Reported situation

If the listed company does not disclose or clarify, it shall report to Shanghai Securities in a timely manner

Exchange Reports

If one of the following circumstances is discovered, the listed company shall be urged to make an explanation and

Rectification within a time limit, and report to the Shanghai Stock Exchange at the same time: (1)

suspected breach of relevant business rules such as the Listing Rules; (b)

The professional opinion issued by the securities service institution and its signatory personnel may be in 2024, before Guobo Electronics

14. There are false records, misleading statements or material omissions, etc

regulation or other improper circumstances; (3) The company appears in the "Sponsorship

the circumstances specified in Articles 71 and 72 of the Measures;

(4) The company does not cooperate with continuous supervision; (5) Shanghai Certificate

Other circumstances that the securities exchange or the sponsor deems necessary to report

Formulate a work plan for on-site inspections of listed companies, and make it clear that on-site sponsors have formulated on-site inspections

15 Inspect the work requirements to ensure the quality of the on-site inspection work Relevant work plan, and clarify the site

Check the job requirements

If any of the following circumstances occurs in a listed company, the sponsor should be aware of it

or should know within 15 days from the date or the Shanghai Stock Exchange

Within the required time limit, special on-site inspections shall be carried out on listed companies:

(1) The controlling shareholder, actual controller or other related party is not a shareholder

Occupation of funds of listed companies for commercial purposes; (2) Providing others with 2024 in violation of regulations, before the existence of Guobo Electronics

16 Warranties; (3) Illegal use of raised funds; (4) Circumstances of violating regulations

securities investment, hedging business, etc.; (5) Related party transactions

manifest unfairness or failure to comply with approval procedures and information disclosure obligations;

(6) Losses in performance or a decrease in operating profit over the same period last year

more than 50%; (7) Other circumstances required by the Shanghai Stock Exchange

shape

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

During the period of continuous supervision, the sponsor and the sponsor representative did not find any major problems with Guobo Electronics.

3. Major risk matters

The main risk factors faced by the company are as follows:

(1) Core competitiveness risks

1. Risks of new product development

Guobo Electronics is mainly engaged in technology research and development and product manufacturing in the field of analog integrated circuits, which is a capital-intensive and technology-intensive industry, and the company needs to invest a lot of manpower and capital in the research and development process. If the company cannot continue to maintain a high investment in R&D expenditure, grasp the changes in technology development trends and downstream demand, and continue to attract outstanding talents in professional fields, the company may face technical lag, and the judgment of industry development trends and downstream customer needs will be deviated, resulting in new products deviating from market demand, which will affect the company's future

to develop sustainability and stability.

2. The risk of core technology confidentiality

After years of technological innovation and experience accumulation, the company has made breakthroughs in core technologies such as compound semiconductors, which constitute the company's core competitiveness. With the changes in the market, there is a risk of leakage of core technology due to the loss of core technical personnel or work errors, and if competitors in the same industry learn of the company's core technology, it will have an adverse impact on the company's production, operation and development.

3. The risk of loss of core technical personnel

The company's core technical personnel are the guarantee for the company to continue to maintain its technical advantages, market competitiveness and enhance its development potential. With the growing application field and market demand of radio frequency electronics, the demand for technical talents is high, and with the increasingly fierce competition in the industry, the competition for high-end talents between enterprises and regions is gradually intensifying, and the company's existing talents are also at risk of loss. If the company fails to provide excellent R&D conditions, a promising development platform and a competitive salary for core technical personnel, it may face the risk of losing core technical personnel, which will adversely affect the company's ability to continue operations.

4. The risk of intensified market competition

The company's main products include active phased array T/R components and serialized RF integrated circuit products, special

The market has higher requirements for product stability and safety, so the industry has higher barriers to entry and fewer competitors in the industry, but with the implementation of the national industrial policy, more social resources will enter the field in the future, and the market competition will be more sufficient. In the general market, the company focuses on product performance and cost, and foreign companies such as Skyworks, Qorvo, and Sumitomo are large in scale, and continue to maintain a high R&D investment, leading in technology, etc., and the company is facing greater competitive pressure, which may exacerbate the market competition risk faced by the company.

(2) Business risks

1. The risk of business model

The company's active phased array T/R components and RF module products mainly adopt the operation of design + manufacturing + testing

mode, RF chip products mainly adopt Fabless mode. The manufacturing, packaging and testing processes of chips are generally responsible for the outsourcing manufacturers, and the outsourcing processing manufacturers carry out some of the processes in accordance with the company's design drawings and specific requirements. The use of outsourcing processing mode is conducive to the company to invest resources in core processes, core technology research and production

There is a potential risk that the production process of the subcontractor will not meet the company's requirements. In addition, wafer manufacturing is a capital- and technology-intensive industry, and its high concentration is a common phenomenon in the industry. If the above-mentioned suppliers have force majeure emergencies or tight production capacity due to strong demand for integrated circuits, the wafer foundry capacity may not be able to meet the demand, which will have a certain adverse impact on the company's operating performance.

2. The risk that the product has not completed the price review and affects the business performance

The T/R components produced and sold by the company are mainly used for active phased array T/R components, and the main users are various sections

Research institutes and general units and other special product customers. According to China's relevant management systems and rules, the sales price of such products should be finalized after price review. Due to the long period of price review, for products that have not yet completed price review, the company will recognize revenue according to the provisional price when the conditions for revenue recognition are met, and confirm the price difference when signing the premium agreement or obtaining the premium notice after the price is approved. Due to the uncertainty of both the price review cycle and the final approved price, there is a risk that the price difference for products that have not yet been approved will be recognized in the future year and then affect the company's profitability.

3. The risk of fluctuation in raw material prices and delivery

The company's production relies on a variety of raw materials, including various chips, electronic components, etc., and the cost of raw materials is the main component of the company's operating costs. Although the company has established a relatively complete supplier management system after years of production and operation, if the price of raw materials fluctuates significantly in the future, it may cause corresponding fluctuations in the company's operating performance. At the same time, some of the company's important basic raw materials, such as chips, and other upstream industries present a highly concentrated market pattern, so that the company has a relatively high concentration of suppliers when purchasing such raw materials. At the same time, due to factors such as international politics and other force majeure, the supply of raw materials may be subject to supply restrictions, delays in delivery or price increases. If there is a situation where the supply of raw materials is not available in a timely manner or raw materials are obtained at a higher price than normal, the normal production and operation of the company may be adversely affected.

4. The risk of customer concentration

The company's customers are relatively concentrated, mainly for various scientific research institutes or complete machine units, and domestic mainstream mobile communication equipment manufacturers. If the company's main customers have major changes in procurement and business strategies in the future, or major adverse changes in the credit status of major customers, or disputes with customers due to product quality problems provided by the company, or unable to meet customer needs due to technical reasons and other factors, the company's operating performance will face a decline or growth rate

Slow risk.

5. The risk of changing the procurement mode of T/R components of the whole machine unit from external procurement to internal support

The unit T/R component procurement mode of the whole machine includes two modes: external procurement and internal supporting. Based on the perspective of professional division of labor, machine manufacturers usually focus on the realization of the whole machine and adopt the mode of outsourcing T/R component products from specialized companies. Some machine manufacturers have built their own T/R component production and development platforms to realize the internal matching of T/R components. In the future, if the whole machine unit purchased externally is changed to the internal supporting model, it will affect the operation of the company's T/R module business, and then affect the company's overall operating performance.

6. Product quality risk

The company attaches great importance to product quality control, and there have been no major quality disputes since its establishment. The company's RF chip business mainly adopts the Fabless model, which is affected by the long production cycle, such as product defects due to product design defects or improper third-party production process control, which may lead to a large number of product scrap or market recalls, which will bring risks to the company's operations. The main customers of the company's active phased array T/R module business are various scientific research institutes or complete machine units, which have high requirements for product quality and reliability, although the company attaches great importance to product quality control in the process of production and operation, the quality may still not meet the standard, which will adversely affect the company's brand reputation and operating performance.

(3) Financial risks

1. The risk of inventory decline

Guobo Electronics is mainly engaged in the R&D, production and sales of active phased array T/R components and RF integrated circuit related products, with high technical requirements, many production links and long production cycles. If the company's products are unsalable, slow to accept or significantly reduce prices in the future, it may lead to the company's inventory backlog and bring greater financial pressure to the company, and face the risk of inventory price decline, which will adversely affect the company's operating performance.

2. The risk of a large amount of operating receivables

The company's operating receivables balance at the end of the reporting period was relatively large, mainly due to active phased array T/R module customers

As a result of the calculation method, active phased array T/R module customers generally settle on a back-to-back basis, that is, the downstream customer settles with the upstream supplier after receiving the payment. If some customers have payment difficulties or long-term arrears

will adversely affect the Company.

3. The impact of cash flow from operating activities on the company's ability to continue operations

The company's active phased array T/R module business acceptance and payment cycle is long, and some customers generally take back

The backrest is used for settlement, resulting in a long settlement cycle for the company's sales payment. The collection cycle is long, while the payment cycle of raw materials and labor is short, resulting in poor cash flow from operating activities and facing certain capital turnover pressure. If the business scale grows rapidly or the payment settlement of downstream customers is not timely, the company's working capital turnover pressure will become greater, which may adversely affect the company's cash flow from operating activities.

(4) Industry risks

The company belongs to the integrated circuit design and integrated circuit manufacturing industry, belongs to the technology-intensive, capital-intensive enterprises, with the characteristics of fast product upgrading, product structure, revenue, gross profit margin by downstream market demand, product advancement and other factors.

The downstream customers of the company's active phased array T/R component products are various research institutes or complete machine units, radio frequency

The main users of integrated circuit products are mobile communication equipment manufacturers, all of which are affected by changes in the macro economy and final market demand. In recent years, the state's support for the integrated circuit industry policy has brought good development opportunities for the company, but if there are major adverse changes in the industrial policy of integrated circuits, macroeconomic fluctuations and other situations will affect the company's downstream demand, the company's sales, gross profit margin, and operating performance will be affected.

(5) Macro environmental risks

1. The risk of being included in the "Entity List".

Since August 2018, the U.S. Department of Commerce has successively added Chinese high-tech companies to the "Entity List".

Further strengthen the restrictions on China's integrated circuit enterprises, Guobo Electronics is also in the "entity list". This matter imposes certain restrictions on the company's procurement of raw materials for U.S. production, and the procurement or use of intellectual property and tools containing U.S. technology. In view of the ongoing changes and unpredictability of the international situation, the long-term sustainability of the impact of the Entity List or the Company's exposure to further technical restrictions may have a negative impact on the Company's day-to-day operations.

2. The risk of changes in tax incentives

The company was recognized as a high-tech enterprise in Jiangsu Province in December 2024, with a validity period of three years

In 2024, the corporate income tax will be calculated and paid at a rate of 15%; SMIT passed the Jiangsu Provincial High School in November 2023

The new technology enterprise is recognized as having a validity period of three years, and the corporate income tax will be calculated and paid at a reduced rate of 15% from 2023. The above-mentioned preferential tax policies have played a role in promoting the company's development and business performance. However, in the future, if the relevant national preferential tax policies change or the identification is not completed, the company will not be able to continue to enjoy the above-mentioned preferential policies, which will have an adverse impact on the company's operating performance.

(6) Other major risks

1. Manage risk

Since its establishment, the company has continued to expand its business scale, and its assets and number of employees have also expanded rapidly. With the implementation of the raised funds investment project, the company's asset scale and the number of employees will be further expanded, and the company will face greater challenges in resource integration, personnel management, and technology development. If the decision-making level of the company's management team, the management ability of the talent team and the perfection of the organizational structure cannot adapt to the expansion of the business scale, it will face the management risks that may be brought about by rapid expansion.

2. The risk of a large amount of related party transactions

The company has an independent and complete business system, can make business decisions independently, and has established a complete internal control system, including the "Related Party Transaction Management System", which strictly stipulates the approval procedures for major related party transactions to ensure the fair pricing of related party transactions and the interests of the company and shareholders, but if the company's internal control measures cannot be effectively implemented, the company's related parties may affect the interests of the company and minority shareholders through related party transactions.

3. Environmental protection and production safety risks

The company will produce wastewater, waste gas, solid waste, etc. in the production process, and if the company's pollutant discharge does not comply with the national environmental protection policy, it will face the possibility of being punished, ordered to close or stop production by the relevant state departments. In addition, although there were no major safety accidents during the reporting period, it did not rule out the possibility of accidental safety accidents caused by aging equipment, improper storage and operation of goods, natural disasters and other reasons in the future, which would affect the normal operation of the company's production and operation.

4. The risk of the impact of the implementation of the raised funds investment project and the new depreciation and amortization on the company's performance

The company's raised funds investment project is the RF chip and component industrialization project, and the feasibility analysis of the raised funds investment project is based on the company's technical foundation, the current market environment and the future development trend of the RF industry

Forecasts and other factors, the company has fully demonstrated and analyzed the investment projects of the raised funds. However, the raised funds investment project requires a certain construction period and cultivation period, during which it may be affected by changes in national and industrial policies, changes in the market environment, rising R&D and manufacturing costs and other unforeseen factors, which makes the actual income of the project lower than expected, which directly affects the company's business scale and potential business income, thereby affecting the return on investment of the project and the company's expected income. After the investment project of the raised funds is put into production, the company's depreciation and amortization expenses will also increase significantly. If there is a significant adverse change in the market environment and the company's operating income does not maintain a corresponding growth, the company has the risk of a decline in profits due to a significant increase in depreciation of fixed assets.

4. Major violations

In 2024, the company did not have any material violations.

5. Reasons and reasonableness of changes in major financial indicators

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

Unit: 10,000 yuan

Key Accounting Data FY2024 FY2023 Change Range

（%）

Operating income 259,108.67 356,696.33 -27.36

Shares attributable to listed companies 48,464.90 60,622.82 -20.06

East's net profit

Attributable to shares of listed companies

East deduction non-recurring 47,660.58 57,095.70 -16.53

Net profit from profit or loss

27,186.65 83,893.11 -67.59 from operating activities

Net gold flow

Shares attributable to listed companies 618,576.99 599,806.80 3.13

East's net worth

Total assets 799,533.52 847,106.96 -5.62

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

Unit: RMB/share

Main Financial Indicators FY2024 FY2023 Change (%)

Basic earnings per share 0.81 1.02 -20.59

Diluted earnings per share 0.81 1.02 -20.59

After deducting non-recurring gains and losses 0.80 0.96 -16.67

Basic earnings per share

The weighted average net assets closed at 7.86 10.31, a decrease of 2.45 percentage points

Profit rate (%)

Deduction of non-recurring gains and losses

The weighted average net assets of 7.73 9.71 decreased by 1.98 percentage points

Yield (%)

R&D investment accounted for 12.62 9.86 percentage points of operating revenue, an increase of 2.76 percentage points

Proportion of income (%)

The reasons for the changes in the above key financial indicators are as follows:

1. In 2024, the company's operating income will be 2.591 billion yuan, a year-on-year decrease of 27.36%, mainly due to the reporting period

This was due to lower revenues from the T/R Components and RF Modules business.

2. The net profit attributable to shareholders of listed companies in 2024 will be 485 million yuan, a year-on-year decrease of 20.06%,

In 2024, the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses will be 477 million yuan, a year-on-year decrease of 16.53%, mainly due to the decrease in revenue from the company's T/R components and RF module business during the reporting period.

3. The net cash flow from operating activities in 2024 will be 272 million yuan, a year-on-year decrease of 67.59%.

It was mainly due to the decrease in cash received by the company from the sale of goods and the provision of labor services during the reporting period.

4. The basic earnings per share in 2024 will be 0.81 yuan/share, a year-on-year decrease of 20.59%; Diluted earnings per share were

0.81 yuan/share, down 20.59% year-on-year; The basic earnings per share after deducting non-recurring gains and losses was 0.80 yuan/share, a year-on-year decrease of 16.67%; the weighted average return on equity was 7.86%, a decrease of 2.45 percentage points year-on-year; The weighted average return on equity after deducting non-recurring gains and losses was 7.73%, a decrease of 1.98 percentage points year-on-year, and the decline in the above indicators was mainly due to the decrease in the company's net profit during the reporting period.

In summary, the changes in the company's main financial indicators in 2024 are reasonable.

Sixth, the changes in core competitiveness

The company's core competitiveness is mainly reflected in the following aspects:

1. Technological innovation advantages

Guobo Electronics adheres to technology-led, innovation-driven, based on independent innovation, and develops active phased array T/R components

It has a deep technical accumulation in the field of radio frequency integrated circuits, and has established a technical system with compound semiconductors as the core, and the core technology has reached the domestic leading and international advanced level, and the products cover chips, modules, and components, which are widely used in mobile communication base stations and terminals, satellite communications, radar detection and other fields.

Combined with the development trend of technology and the pain points of market demand, the company further promotes the development of new materials and new devices

Application, further improve and expand product categories and pedigrees, actively promote the establishment of an integrated development, design and R&D system, promote the productization and application of advanced packaging technology, rationally lay out the technical research and product development of first-generation (Si), second-generation (GaAs) and third-generation (GaN) semiconductor RF ICs and modules, strengthen the advantages of customized product directional design and development, focus on key applications, carry out technical research and product development in a planned manner, and continue to expand the system-level application market.

In the field of T/R components, the company has established a design platform, a microwave high-density interconnection process platform, and fully automated

The general test platform has accumulated key core technologies in the technical fields of high-frequency and low-loss transmission interconnection design, three-dimensional three-dimensional laminated component design, etc. In the field of RF integrated circuits, based on compound semiconductors, the company has mastered core technologies such as nonlinear simulation design, analog circuit design and simulation, chip reliability analysis and testing, and has formed RF chips and modules, microwave millimeter wave chips and other products.

During the reporting period, the company's R&D investment was 326.9184 million yuan, a decrease of 7.01% over the same period of last year, accounting for the total business

The proportion of revenue was 12.62%, an increase of 2.76 percentage points over the same period last year. During the reporting period, the company's "GaN high-power module key technology and industrialization" won the second prize of the 2023 Jiangsu Science and Technology Award, and the company's "RF switch chip series products for mobile phone terminals" won the "2023-2024 RF Chip Market Best Product Award" at the 2024 World Semiconductor Conference and Nanjing International Semiconductor Expo.

2. Product advantages

Based on the core technology of compound semiconductors, the company has formed a series of product structures and industrialized production capacity, covering chips, modules and components, and has the ability to provide complete solutions for active phased array radar, mobile communication base stations and terminals, and other related vertical applications.

In the field of active phased array T/R components, the company continues to focus on the business of high-frequency and high-density fields, and its products are mainly used

Focus on multi-channel, high-frequency, high-integration direction. The company has developed hundreds of active phased array T/R components, which have the characteristics of small size, light weight, high integration and excellent performance. In addition to active phased array radar, the company has carried out technology research and development and product development in the fields of low-orbit satellites and commercial spaceflight, and a number of T/R component products have begun to be delivered to customers.

In the field of RF integrated circuits, the company's main products include RF amplification chips, RF control chips, high-power control modules and high-power amplifier modules, which cover multiple frequency bands and are mainly used in mobile communication base stations and terminals. The company's RF integrated circuits and component products have been in the domestic 4G, 5G mobile communication leader

The domain realizes high-volume supply and emerges in 5G-A mobile communications. RF switches and antenna tuners for terminal applications have gradually formed a complete product lineage and achieved mass shipments. In response to the needs of the field of satellite communication and sensing, we have developed a variety of RF chip products to provide chip solutions for satellite communication and sensing systems, and some products have been delivered in small batches.

3. Brand customer advantages

Since its establishment, Guobo Electronics has won a number of honors and accumulated a good brand reputation. Company in 2020

It was awarded the "Top 100 Industry Informatization Competitiveness in 2020" and "2020 Industry Informatization Leading Enterprise" by CCID and Internet Economy magazine; In 2020, it won the "Best Delivery Award of Supplier" and "Excellent Quality Collaboration Award" of a mainstream mobile communication equipment supplier, and in 2022, it won the "Best Collaboration Award" of a mainstream mobile communication equipment supplier; In 2021 and 2022, it was selected as a "unicorn" enterprise in Nanjing, in 2023 it was awarded the "Excellent Enterprise of Jiangsu Province", and in 2024, it was awarded the "2023-2024 RF Chip Market Best Product Award".

The company is committed to the research and development of active phased array T/R components and RF integrated circuit products

production and sales, and formed the relevant core technology. Relying on excellent scientific research capabilities and excellent product quality, Guobo Electronics' products have been recognized by the market, and have established a good corporate image and cooperative relations with downstream units, and the main customers are scientific research institutes, complete machine units and mobile communication equipment manufacturers.

4. Talent advantage

The company's R&D management team, production management team, quality management team and marketing and sales team have rich experience in the integrated circuit industry, with solid professional ability and rich management experience. The company's core management team has a reasonable composition, covering business management, technology research and development, marketing, production and operation, quality control, financial management and other aspects, with strong complementarity, ensuring the scientificity and effectiveness of the company's decision-making.

The company attaches great importance to the construction of R&D talent team, and has established an interdisciplinary compound team covering electronics, communications, computers, chemistry, materials and other disciplines by continuously introducing industry experts and continuously cultivating internal talents. As of the end of the reporting period, Guobo Electronics had a total of 413 R&D personnel, an increase of 56 over the same period last year

the number of bachelor's and master's students increased by 51; R&D personnel accounted for 23.43%, an increase of 4.85 over the same period last year

Percentage point. As of the end of the reporting period, the core technical personnel have won 1 National Science and Technology Progress Award

1 Defense Technology Invention Award, 9 National Defense Science and Technology Progress Awards, and 3 Science and Technology Progress Awards of the Chinese Institute of Electronics

18 Science and Technology Awards of China Electronics Technology Group.

Combined with the needs of development, the company carries out multi-level talent training, and continues to promote all employees to improve their professional quality and improve their ability to perform their duties. The company takes the work of the service center as the starting point, takes the promotion of the healthy growth of talents as the goal, takes the improvement of talent ability and quality as the core, combines the actual work needs, formulates the employee training and education management system, vigorously strengthens and improves the company's education and training, comprehensively improves the quality of education and training, continuously improves and strengthens the company's human resources education and training, promotes the scientific, institutionalized and standardized work of employee education and training, and cultivates a high-quality workforce.

5. Advantages of industrial chain

Guobo Electronics is deeply engaged in the professional and technical field of RF electronics, forming an industrial chain layout from chips to modules and components, and has independent intellectual property rights in the core technology field of RF, microwave and millimeter waves. Guided by market demand, taking core products as a breakthrough, optimizing performance and reducing costs as the driving force, the company promotes the development of T/R components and RF integrated circuit product design, manufacturing, testing and verification capabilities into a system in accordance with the ideas of key breakthroughs, platform support and system promotion.

The company accelerates the industrialization project of RF chips and components, and further improves the R&D and manufacturing capabilities in the field of RF chips, modules and T/R components. Realize the improvement of T/R component design technology, process manufacturing technology, testing, reliability evaluation and other capabilities, realize the design and development of mobile communication RF chips and microwave millimeter wave chips, and improve the on-chip testing capabilities, increase the proportion of automation equipment, improve the flexibility and intelligence of the production line, increase the scale of the production line, improve the product structure layout, and meet the increasing market demand.

In summary, there were no adverse changes in the company's core competitiveness during the continuous supervision period.

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

1. R&D expenditure and changes

R&D investment decreased by 7.01% year-on-year compared with the same period last year, and the specific R&D investment and changes are as follows:

Unit: 10,000 yuan

Project FY2024 FY2023 Magnitude of change (%)

Expensed R&D investment 32,691.84 35,157.97 -7.01

Capitalized R&D investment / / /

Total R&D investment 32,691.84 35,157.97 -7.01

The ratio of total R&D investment to operating income was 12.62 9.86, an increase of 2.76 percentage points

（%）

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

2. R&D progress

In 2024, the company applied for 12 invention patents, 3 utility model patents, and integrated circuits

20 exclusive rights for design layouts; Obtained 14 invention patents and 4 utility model patents

5 exclusive rights for circuit design layout. As of the end of the reporting period, the company has obtained a total of 180 intellectual property rights.

Among them, there are 57 invention patents, 37 utility model patents, 9 software copyrights, and integrated circuit design layout

77 exclusive rights.

The list of new intellectual property rights of the company in 2024 and accumulated by the end of 2024 is as follows:

Unit: pcs

The cumulative number of new additions this year

project

Number of applications Number of applications Number of applications Number of applications obtained

Patents for invention 12 14 41 57

Utility model patents 3 4 10 37

Design patent 0 0 0 0

Software copyright 0 0 0 9

Other 20 5 49 77

Total 35 23 100 180

As of the end of December 2024, the company's main projects under development are as follows:

Unit: 10,000 yuan

Preface Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Specific Response

Nominal capital scale, amount, amount, stage, to achieve the target, technical level, and prospects

achievement

Based on the development of domestic products, the company is mastered

The production of semi-conductive order chips has the main performance in China

The process section, the supply chain, and the push indicators have all been communicated to the collar

1 mm 40,000.00 11,607.79 11,607.79 into a variety of dynamic semiconductor industry in the domestic domain

Wave core product development performance and quality leading level

Technological R&D and volume improvement

The project began mass production

Preface Project Name Estimated Total Investment Current Investment Cumulative Investment Progress or Specific Response

Nominal capital scale, amount, amount, stage, to achieve the target, technical level, and prospects

achievement

for mobile communications

Base stations and base stations and terminals

RF front-end for terminals

RF set module design, main performance

2 into the circuit 15,000.00 6,186.49 6,186.49 completed multi-chip sealing indicators have been communicated

Chip equipment and radio frequency measurement are in the domestic domain

Parts research and development, testing and other key technology leading level

tackling key problems in project technology,

Form a serialization

products

Based on self-propulsion, based on production

Dynamic and product chain digital main performance radar and

3 Informatization 9,700.00 4,734.00 9,059.99 Completed Comprehensive management indicators have been communicated

The intelligence and full management are in the domestic domain

The establishment of the manufacturing flat system is at the leading level

Taiwan construction

Establishment of domestic domains

New Product First RF Micro

Multi-functional development-level system design,

Integrated Segment, Finished Process Manufacturing, Main Performance Radar and

4-frequency technology 36,300.00 10,163.55 18,859.64 A variety of high-efficiency test indicators have been communicated

The research project product development and electromagnetism are both in the domestic field

Visualization and measurement, efficient dispersion leading the level

Test platform thermal, system should

construction and other aspects

ability

Multi-band main performance

Serialized multi-band watt indicators have been radar and

5 Tile 14,800.00 0.00 12,811.23 Completed Chip Component System In the domestic communication field

T/R group leads the level in the field

piece of research and development

Sum / 115,800.00 32,691.83 58,525.14 / / / /

plan

8. Whether the progress of the new business is consistent with the information disclosed in the previous period

Not applicable.

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

1. The overall use of raised funds

The source of the company's raised funds is the initial public offering of shares, and the cumulative use of raised funds in 2024 is RMB 453.3402 million, and the overall use of the company's raised funds is as follows:

Unit: 10,000 yuan

Project amount

The total amount of funds raised was 283,590.88

Net proceeds after deducting issuance expenses were 274,295.81

The total committed investment of the raised funds is 274,295.81

Adjusted total committed investment of raised funds (1) 274,295.81

As of the end of the reporting period, the total amount of funds invested and raised was (2) 222,617.74

Cumulative investment progress as of the end of the reporting period (%)(3)=(2)/(1) 81.16

Amount invested in the current year(4) 45,334.02

Proportion of investment in the current year (%)(5)=(4)/(1) 16.53

2. Details of fundraising and investment projects

As of the end of December 2024, the breakdown of the proceeds used by the Company's fundraising projects is as follows:

Unit: 10,000 yuan

Whether it is feasible for the project

Prospectus As of the reporting period As of the reporting period, it is invested in the project and whether there is a surplus

Whether the project or fundraising involves raising funds to raise funds The investment at the end of the year The cumulative investment at the end of the year The cumulative investment at the end of the year Whether the project has reached the pre-expected degree has not reached the amount of significant changes that have been realized

Project Name Description of Qualifications and Changes Source Plan Investment Amount Total Progress of Funds Raised (%) Determined Usable Status Has Complied with the Plan Benefits, such as the original

Total investment in the book (1) Amount (2) (3) = state date The specific reason for the conclusion or research is, please say the cause

Commitment (2)/(1) Degree Result Specify the specific situation

Status

RF chips and production builds

Component IndustrializationYes No Issued shares 147,498.52 44,700.14 112,622.69 76.36 March 2025 No Yes Not applicable No No Not applicable

project

Replenishment of Liquidity Replenishment of Replenishment of Circulating Capital No Shares Issued 120,000.00 0.00 108,143.88 90.12 Not Applicable No Yes Not Applicable Not Applicable No Applicable

Loans

Over-raised funds Replenishment No No Issued shares 4,078.36 633.88 1,851.17 45.39 Not applicable No Yes Not applicable Not applicable No Not applicable

(Replenishment) loan

Over-raised funds Other No No Issued shares 2,718.93 0.00 0.00 0.00 Not applicable No Yes Not applicable Not applicable No Not applicable

(Other)

Total / / / / 274,295.81 45,334.02 222,617.74 /

Note: The company's RF chip and module industrialization project will reach the scheduled usable state and complete the project in March 2025, as detailed in the company's disclosure on the website of the Shanghai Stock Exchange (www.sse.com.cn) on April 11, 2025

Announcement of Nanjing Guobo Electronics Co., Ltd. on the Completion of Fund-raising Projects and Permanent Replenishment of Liquidity with Surplus Raised Funds (Announcement No.: 2025-012).

3. Other circumstances of the use of raised funds

(1) The use of idle raised funds for cash management

The company held the 19th meeting of the first board of directors and the first session of supervisors on August 29, 2023

At the thirteenth meeting, the "Proposal on the Company's Use of Part of the Idle Raised Funds for Cash Management" was deliberated and approved, and it was agreed that on the premise of ensuring that the construction of the investment project of the raised funds and the use plan of the raised funds are not affected, the company intends to use the idle raised funds of no more than RMB 125,000.00 (inclusive) for cash management for the purchase of investment products with high security and good liquidity, with a term of no more than 12 months. Within the above-mentioned period and quota, the funds can be used on a rolling basis, and the chairman of the company or the person authorized by the chairman of the board of directors is authorized to exercise the right to make investment decisions and sign relevant contract documents within the scope of the above-mentioned quota, and the specific matters are organized and implemented by the company's finance department.

The Company held the third meeting of the second session of the Board of Directors and the second session of the Board of Supervisors on August 23, 2024

At the second meeting, the "Proposal on the Company's Use of Part of the Idle Raised Funds for Cash Management" was deliberated and approved, and it was agreed that on the premise of ensuring that the construction of the investment project of the raised funds and the plan for the use of the raised funds are not affected, the company intends to use the idle raised funds of no more than RMB 72,000.00 (inclusive) for cash management, which will be used to purchase investment products with high security and good liquidity, with a term of no more than 12 months. Within the above-mentioned period and quota, the funds can be used on a rolling basis, and the chairman of the company or the person authorized by the chairman of the board of directors is authorized to exercise the right to make investment decisions and sign relevant contract documents within the scope of the above-mentioned quota, and the specific matters are organized and implemented by the company's finance department.

As of December 31, 2024, the balance of the company's cash management account was 40,000.00 yuan. report

During the period, the company used part of the idle raised funds for cash management and achieved an investment income of 5.7277 million yuan.

(2) Permanently replenish liquidity with over-raised funds

The Company held the third meeting of the second session of the Board of Directors and the second session of the Board of Supervisors on August 23, 2024

The second meeting will be held on September 20, 2024 to deliberate on the company's second extraordinary general meeting of shareholders in 2024

Passed the "Proposal on the Company's Use of Part of the Over-raised Funds to Permanently Replenish Liquidity", and agreed that the company will use part of the over-raised funds of 20.3918 million yuan for permanent replenishment of liquidity, accounting for 30% of the total over-raised funds. During the reporting period, the company actually used 6.3388 million yuan of over-raised funds. There is no situation where bank loans are repaid with over-raised funds.

4. Compliance with the use of raised funds

The deposit and use of the company's raised funds in 2024 are in line with the "Stocks on the Science and Technology Innovation Board of the Shanghai Stock Exchange

Listing Rules, Self-Regulatory Guidelines for Listed Companies on the Science and Technology Innovation Board of the Shanghai Stock Exchange No. 1 - Standardized Operation, the Company's Management System for Raised Funds, and other laws, regulations and institutional documents, the raised funds have been stored in special accounts and used in special accounts, and the relevant information disclosure obligations have been fulfilled in a timely manner, and the specific use of the raised funds is consistent with the company's disclosure, and there is no disguised change in the use of raised funds and damage to the interests of shareholders, and there is no illegal use of raised funds.

10. Shareholding, pledge, freezing and reduction of shareholdings, pledges, freezes and holdings of controlling shareholders, actual controllers, directors, supervisors and senior managers

As of the end of 2024, the company's controlling shareholder, CLP Guoji South Group Co., Ltd., directly held 213,560,200 shares of the company's shares, and the company's capital reserve increased by 70,231,200 shares during the year.

In addition to the above-mentioned circumstances, the actual controllers, directors, supervisors and senior management of the company do not directly hold shares of the company. The shares held by the company's controlling shareholders, actual controllers, directors, supervisors and senior management personnel are not pledged, frozen or reduced.

11. Other matters on which the Shanghai Stock Exchange or the sponsor institution deems it necessary to express its opinions

As of the date of issuance of this continuous supervision and follow-up report, there are no other matters that the sponsor believes should be expressed.