securities code: 688012 securities abbreviation: micro company announcement number: 2024-002

the company's board of directors and all directors to ensure that the contents of this announcement does not exist any false records, misleading statements or major omissions, and the authenticity, accuracy and completeness of the contents of the legal responsibility.

Important Note:

● China Micro Semiconductor Equipment (Shanghai) Co., Ltd. (hereinafter referred to as the "Company") expects operating income of approximately 6.26 billion yuan in 2023, an increase of approximately 1.52 billion yuan from 2022 and an increase of approximately 32.1 year-on-year. The amount of new orders in 2023 was about 8.36 billion yuan, an increase of about 2.04 billion yuan over 2022 and an increase of about 32.3 percent year-on-year.

● The company's flagship equipment products, CCP and ICP plasma etching equipment for integrated circuit production lines, are expected to generate about $4.7 billion in 2023, an increase of about $1.56 billion over 2022 and an increase of about 49.4 percent year-on-year. The amount of new etching equipment orders in 2023 is about 6.95 billion yuan, an increase of about 2.61 billion yuan from 2022, an increase of about 60.1 percent year-on-year.

● The company expects that the net profit attributable to the owners of the parent company in 2023 will be 1.7 billion yuan to 1.85 billion yuan, which will increase by 0.53 billion yuan to 0.68 billion yuan compared with the same period last year (statutory disclosure data), an increase of about 45.32% to 58.15%.

● The company expects that the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in 2023 will be 1.1 billion yuan to 1.24 billion yuan, which will increase by 0.181 billion yuan to 0.321 billion yuan compared with the same period last year (statutory disclosure data). Yuan, an increase of about 19.64 to 34.86 year-on-year.

1. performance forecast for the period

(I) earnings forecast period

1 January 2023 to 31 December 2023.

(II) performance forecast

1. According to preliminary calculations by the financial department, the company expects operating income to be about 6.26 billion yuan in 2023, an increase of about 1.52 billion yuan from 2022, an increase of about 32.1 percent year-on-year. Among them, the sales of etching equipment in 2023 was about 4.7 billion yuan, up about 49.4 percent year-on-year; the sales of MOCVD equipment was about 0.46 billion yuan, down about 34.0 percent year-on-year. The average annual operating income growth rate of the company from 2012 to 2023 is more than 35%.

the company's new orders in 2023 amounted to about 8.36 billion yuan, an increase of about 2.04 billion yuan from the 6.32 billion yuan of new orders in 2022, an increase of about 32.3 percent year-on-year. Among them, new orders for etching equipment were about 6.95 billion yuan, up about 60.1 percent year-on-year, and new orders for MOCVD equipment were about 0.26 billion yuan, down about 72.2 percent year-on-year due to fluctuations in the end market.

2. According to preliminary calculations by the financial department, the company expects that the net profit attributable to the owners of the parent company in 2023 will be 1.7 billion to 1.85 billion yuan, which will increase by 0.53 billion to 0.68 billion yuan compared with the same period last year (statutory disclosure data). Yuan, an increase of about 45.32 to 58.15 year-on-year.

3. According to preliminary calculations by the financial department, the company expects that the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses in 2023 will be 1.1 billion yuan to 1.24 billion yuan, compared with the same period last year (statutory disclosure data), It will increase by 0.181 billion yuan to 0.321 billion yuan, an increase of about 19.64 to 34.86 percent year-on-year.

(III) this performance forecast has not been audited by a certified public accountant.

2. year-on-year results

the company realized operating income of 4.74 billion yuan in 2022.

the company's net profit attributable to the owners of the parent company in 2022 was 1.17 billion yuan, and the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was 0.919 billion yuan.

3. the main reasons for the change in performance for the period

The main reasons for the expected increase in the company's 2023 results over the same period last year are as follows:

1. In recent years, with the further accelerated development of emerging industries such as artificial intelligence, cloud computing, big data, and autonomous driving, semiconductor micro-processing equipment has become a key cornerstone of the digital industry, and its market has developed rapidly. The company's main product plasma etching equipment as one of the core equipment of the semiconductor front road, the market space is broad, technical barriers are high. The company developed a variety of types of etching equipment in terms of performance, hardware stability and other aspects to meet the customer's advanced process of all kinds of stringent needs, in the process of industrialization to achieve remarkable results. Benefiting from the company's complete layout of single and double etching equipment, continuous breakthrough of core technology, rapid iteration of product upgrade, rich etching application coverage and other advantages, the company's CCP and ICP etching equipment will both be listed on the chip production lines of major domestic customers in 2023. The company's TSV through-silicon hole etching equipment is also increasingly used in advanced packaging and MEMS device production.

the company has achieved remarkable results in the development of new products. four new LPCVD equipment and ALD equipment developed in the past two years have entered the market, three of which have been certified by customers and have begun to receive repetitive orders. The company's newly developed silicon and germanium silicon epitaxial EPI equipment, wafer edge Bevel etching equipment and other new products will also be put into the market for verification in the near future.

The many types of MOCVD equipment required by the company, including silicon carbide power devices, gallium nitride power devices, Micro-LED and other devices, have also made good progress and will enter the market in 2024.

the company's production and R & D base of about 140000 square meters in Nanchang has been officially put into use, and some of the production plants of the production and R & D base of about 180000 square meters in Shanghai Lingang have been put into use, supporting the rapid growth of the company's sales. The company continues to develop key parts suppliers, promote the stability and safety of the supply chain, maintain a high level of equipment delivery, and timely delivery of equipment also provides strong support for the company's sales growth. The company pays special attention to the innovation of core technologies, always emphasizes innovation and differentiation and maintains high-intensity R & D investment. At the same time, the company's production and operation management level continues to improve, and the ability to control product costs and operating expenses is effectively enhanced.

In 2023, the company's MOCVD equipment sales declined due to fluctuations in the LED terminal market, while the company's spare parts and services maintained a healthy level.

2. The main reason for the year-on-year increase of about 45.32 to 58.15: due to the growth of income and the healthy level of gross profit in 2023, the net profit after deduction of non-profit increased by about 0.181 billion yuan to 0.321 billion yuan compared with the same period last year. Non-recurring gains and losses in 2023 were about $0.612 billion, an increase of about $0.362 billion from $0.25 billion in the same period last year. The change in non-recurring gains and losses was mainly due to the Company's sale of a portion of its shares in Tuojing Technology Co. in 2023, resulting in a net after-tax gain of approximately $0.406 billion.

3. the main reasons for the increase of net profit after deducting non-profit and returning to the parent company by about 19.64 to 34.86 year-on-year are: operating income in 2023 is about 6.26 billion yuan, an increase of about 1.52 billion yuan over 2022, an increase of about 32.1 percent over the same period of last year; Gross profit in 2023 is about 2.85 billion yuan, an increase of about 0.68 billion yuan over 2022, an increase of about 31.6 percent over the same period of last year.

In 2023, the company will continue to sublimate the company system and culture with medium and micro characteristics, and continue to practice and advocate the "four top ten" corporate culture. In 2023, the per capita annualized operating income has reached about 3.5 million yuan, which is the leading level in the same industry in China. While providing high-tech products and services to customers and the market, the company has continuously improved its environmental protection, social responsibility and corporate governance standards against the international leading ESG standards.

The company will continue to aim at the forefront of world science and technology, adhering to the three-dimensional development strategy, continue to forge and improve its management capabilities, achieve high-speed, stable, healthy and safe development, and develop into a world-class semiconductor equipment and high-tech leader in scale and competitiveness as soon as possible!

4. risk warning

this performance forecast is the company's financial department based on their own professional judgment of the preliminary accounting data, has not been audited by a certified public accountant. There are no significant uncertainties affecting the accuracy of the company's performance forecast.

5. other notes

The above forecast data is only preliminary accounting data. The specific and accurate financial data is subject to the audited 2023 annual report officially disclosed by the company. Investors are kindly requested to pay attention to investment risks.

It is hereby announced.

Board of Directors of China Micro Semiconductor Equipment (Shanghai) Co., Ltd.

15 January 2024