[2025 Semi-Annual Performance Forecast](index=1&type=section&id=2025%E5%B9%B4%E5%8D%8A%E5%B9%B4%E5%BA%A6%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A) [Summary of Performance Forecast](index=1&type=section&id=Item%20I.%20Current%20Period%20Performance%20Estimate) The company projects a significant increase in H1 2025 net profit attributable to shareholders, with earnings between RMB 360-420 million and non-recurring net profit of RMB 290-350 million 2025 Semi-Annual Performance Forecast | Item | Current Reporting Period (Jan 1 - Jun 30, 2025) (RMB Million) | Prior Period (RMB Million) | | :--- | :--- | :--- | | **Net Profit Attributable to Shareholders of Listed Company** | **Profit: 360-420** | Profit: 214.8804 | | | **Year-on-Year Growth: 67.54% to 95.46%** | | | **Net Profit After Deducting Non-Recurring Gains and Losses** | **Profit: 290-350** | Profit: 208.4822 | | | **Year-on-Year Growth: 39.10% to 67.88%** | | [Analysis of Performance Changes](index=1&type=section&id=Item%20III.%20Explanation%20of%20Performance%20Changes) Performance growth is driven by the booming integrated circuit industry, strong customer demand, and market recognition of high-end testing equipment, boosting sales and revenue, with initial scale effects emerging - Key drivers include **rapid growth** in the integrated circuit industry, **robust customer demand**, industry recognition for the company's high-end testing equipment, and successful customer acquisition, leading to **significant year-on-year increases** in sales orders and revenue across all product lines, with **initial scale effects emerging**[6](index=6&type=chunk) - Non-recurring gains and losses for the current reporting period are estimated at approximately **RMB 70 million**, primarily from M&A activities and government subsidies[7](index=7&type=chunk) [Other Explanations and Risk Warnings](index=1&type=section&id=Item%20II.%20Communication%20with%20Accounting%20Firm%20%26%20Item%20IV.%20Other%20Relevant%20Explanations) Preliminary discussions on the performance forecast with the accounting firm revealed no major disagreements, but the forecast remains unaudited, with final data subject to the official semi-annual report - This performance forecast is a **preliminary estimate** by the company's finance department and has **not been audited** by an accounting firm; specific financial data will be subject to the company's officially disclosed semi-annual report[8](index=8&type=chunk) - The company has conducted preliminary discussions with its accounting firm regarding the performance forecast, and there are **no significant disagreements** between the parties[5](index=5&type=chunk)

Group 1 - The company expects a net profit attributable to shareholders between 360 million to 420 million yuan for the period from January 1, 2025, to June 30, 2025, representing a growth of 67.54% to 95.46% compared to 215 million yuan in the same period last year [1] - The net profit after deducting non-recurring gains and losses is projected to be between 290 million to 350 million yuan, an increase of 39.10% to 67.88% from 208 million yuan in the previous year [1] - The significant growth in performance is primarily driven by strong demand in the integrated circuit industry, recognition of the company's high-end testing equipment products, and a notable increase in sales orders, along with the impact of approximately 70 million yuan in non-recurring gains [1]

Group 1 - The Ministry of Foreign Affairs of China emphasizes the importance of international law in response to Israel and the US's actions against Iran's nuclear facilities, indicating a willingness to support peace initiatives [1] - The National Committee of the Chinese People's Political Consultative Conference discusses deepening economic reforms to promote modernization [2] - The People's Bank of China and six other departments issue guidelines to enhance financial support for consumption, including a 500 billion yuan loan for service consumption and pension [3] - The Ministry of Commerce announces a campaign to promote electric vehicle consumption in rural areas from July to December 2025 [4] - Guangdong province releases a plan to stimulate domestic circulation by promoting trade-in programs for various consumer goods [5] Group 2 - Youyan New Materials announces plans to introduce strategic investors with a total investment of 300 million yuan [6] - Youngor announces the sale of financial assets, totaling 4.175 billion yuan [7] - Changchuan Technology plans to raise up to 3.132 billion yuan for semiconductor equipment research and development [8] - Tailin Microelectronics expects a 267% year-on-year increase in net profit for the first half of the year [9] - Huatai Securities is approved to issue up to 10 billion yuan in technology innovation bonds [11] Group 3 - The Federal Reserve Chairman Powell indicates potential for early interest rate cuts if the labor market weakens and inflation decreases [16] - US stock markets show significant gains, with the Nasdaq rising 1.43% and the Dow Jones reaching its highest closing since March [17] - International crude oil futures experience substantial declines, with WTI and Brent crude oil futures dropping over 6% [18] - Goldman Sachs maintains an overweight recommendation for A-shares and Hong Kong stocks, projecting a target of 4600 points for the CSI 300 index [19]

Core Viewpoint - The report provides an independent verification of the non-recurring gains and losses of Hangzhou Changchuan Technology Co., Ltd. for the past three years and the current period, confirming compliance with the relevant regulations set by the China Securities Regulatory Commission [1][2]. Summary by Sections Section 1: Verification Report - The verification report is intended solely for the issuance of stocks to specific parties and cannot be used for any other purpose [1]. - The report confirms that the non-recurring gains and losses table prepared by the management accurately reflects the company's financial situation over the specified periods [2]. Section 2: Management's Responsibility - The management of Hangzhou Changchuan Technology Co., Ltd. is responsible for providing accurate and complete information, ensuring that the non-recurring gains and losses table is prepared in accordance with the regulations [2]. Section 3: Auditor's Responsibility - The auditor's responsibility is to provide an independent verification conclusion based on the verification work performed, ensuring that the information does not contain significant misstatements [2]. Section 4: Work Overview - The verification was conducted in accordance with Chinese CPA standards, which require planning and implementation of verification work to obtain reasonable assurance regarding the information's accuracy [2]. Section 5: Verification Conclusion - The auditor concludes that the non-recurring gains and losses table prepared by the management complies with the relevant regulations and accurately reflects the company's financial situation [2]. Section 6: Non-Recurring Gains and Losses Details - The report includes detailed figures for non-recurring gains and losses for the periods 2022 to 2025, highlighting significant items such as asset disposal gains and government subsidies [4][5][6][7]. - For example, the net non-recurring gains attributable to the parent company's shareholders for 2024 amounted to approximately 44.29 million RMB, compared to 66.09 million RMB in 2022 [4][5]. Section 7: Government Subsidies - The report outlines various government subsidies received by the company, including specific amounts and purposes, such as support for technology development and employment incentives [5][6][7]. Section 8: Other Non-Recurring Items - Other non-recurring items include gains from the acquisition of subsidiaries and various one-time financial supports, with detailed amounts provided for each category [6][7][8].

Core Viewpoint - The Supervisory Board of Hangzhou Changchuan Technology Co., Ltd. confirms that the company is qualified to issue A-shares to specific targets in 2025, aligning with relevant laws and regulations [2][3][4]. Group 1: Legal Compliance and Feasibility - The issuance plan complies with the Company Law, Securities Law, and Registration Management Regulations, and is deemed reasonable and feasible based on the company's industry status, operational conditions, and funding needs [2][3]. - The feasibility and necessity of the issuance plan are supported by a comprehensive analysis report, which aligns with the company's development strategy and benefits all shareholders [3]. Group 2: Fund Utilization and Shareholder Returns - The planned use of funds raised from the issuance adheres to national industrial policies and is beneficial for enhancing the company's competitive capabilities, aligning with long-term development plans [3][4]. - The company has conducted a thorough analysis of the impact on immediate returns and proposed specific measures to mitigate dilution, ensuring compliance with regulatory requirements and protecting investor rights [3][4]. Group 3: Shareholder Return Planning - The company's three-year shareholder return plan (2025-2027) is consistent with regulatory guidelines and emphasizes sustainable development and stable dividend policies, which are designed to protect investor interests [4].

Meeting Information - The company will hold its first extraordinary general meeting of shareholders in 2025 on July 10, 2025, at 14:00 [1][2] - Shareholders can participate through on-site voting or online voting via the Shenzhen Stock Exchange systems [2][6] Voting Procedures - On-site voting requires shareholders to present identification and proof of shareholding [6] - Online voting will be available from 9:15 to 15:00 on July 10, 2025, through designated platforms [2][7] Agenda Items - The meeting will discuss several proposals, including the issuance of stocks to specific targets and the arrangement of undistributed profits [4][5] - All proposals require a two-thirds majority vote from attending shareholders to pass [5] Registration Details - Shareholders must register to attend the meeting, with specific requirements for both corporate and individual shareholders [6] - Registration can also be done via mail or fax for those unable to attend in person [6] Contact Information - For inquiries, shareholders can contact the company's board office via phone or email [7]

Core Viewpoint - The company aims to establish a scientific, sustainable, and stable profit distribution policy to actively reward shareholders and promote long-term and rational investment concepts, in accordance with relevant regulations and its actual situation [1][6]. Group 1: Profit Distribution Policy - The company will propose profit distribution plans based on annual operating performance and future business plans, which will be approved by the shareholders' meeting [2]. - Profit distribution can be in the form of cash, stock, or a combination of both, with a preference for cash dividends when conditions are met [2][3]. - The company aims to distribute at least 20% of the annual distributable profit in cash, or at least 60% of the average annual distributable profit over any three consecutive years [2][4]. Group 2: Conditions and Procedures - Major capital expenditures are defined as investments or asset acquisitions exceeding 10% of the latest audited net assets or 50 million yuan [3]. - The board of directors will consider industry characteristics, development stages, and major capital expenditure plans when proposing differentiated cash dividend policies [4]. - The decision-making process for profit distribution involves the board's proposal, majority approval from directors, and subsequent approval from the shareholders' meeting [4][5]. Group 3: Shareholder Return Planning - The company will develop a shareholder return plan at least every three years, considering long-term sustainable development and various external factors [6]. - Adjustments to the shareholder return plan require detailed discussion and must be approved by a two-thirds majority of the shareholders present at the meeting [6][7]. - The company will ensure that the planning process includes input from independent directors and minority shareholders [6].

Core Viewpoint - The company plans to raise funds through a private placement of shares to enhance its core competitiveness and support the development of semiconductor equipment, with a total fundraising target of up to 313,203.05 million RMB [1][2]. Fundraising Plan - The company intends to issue no more than 188,648,115 shares, raising funds primarily for a "semiconductor equipment R&D project" and to supplement working capital [1][2]. - The total investment for the semiconductor equipment R&D project is estimated at 383,958.72 million RMB, with 219,243.05 million RMB expected to come from the raised funds [12]. Background and Purpose of Fundraising - The integrated circuit industry is a strategic and foundational sector for national security and economic development, with significant growth potential driven by domestic and international market demands [2][3]. - National policies strongly support the development of the integrated circuit industry, recognizing it as a key area for enhancing national strategic technological capabilities [3][4]. Market Trends and Opportunities - The semiconductor equipment market is expected to grow significantly, with global semiconductor sales projected to reach 626 billion USD in 2024, a year-on-year increase of 18% [4][11]. - The demand for semiconductor equipment is driven by advancements in AI, automotive electronics, and 5G technologies, which are expanding the market for chips and related equipment [4][11]. Company’s Competitive Position - The company has established a strong technical foundation in integrated circuit testing equipment, with over 50% of its workforce dedicated to R&D [9]. - The company has developed core technologies in testing machines and AOI equipment, positioning itself to meet the growing demand for domestic semiconductor equipment [9][10]. Investment Project Details - The semiconductor equipment R&D project aims to develop testing machines and AOI equipment, enhancing the company's product line and meeting diverse market needs [8][10]. - The project is supported by favorable national policies and the company's existing technical capabilities, ensuring its feasibility and alignment with industry trends [9][10]. Financial Impact - The fundraising will improve the company's financial structure, reduce debt risk, and support ongoing business expansion and R&D efforts [12][13]. - While there may be short-term dilution of earnings per share due to increased share capital, the long-term benefits from the investment projects are expected to enhance overall profitability [14].

Fundraising Overview - The company raised a total of RMB 364.71 million through a private placement in 2021, with a net amount of RMB 362.46 million after deducting various fees [1][6][18] - In 2023, the company issued 8,415,450 shares at RMB 32.88 per share, raising RMB 276.70 million, with a net amount of RMB 266.45 million after fees [4][6][18] Fund Allocation and Usage - As of March 31, 2025, the company had RMB 362.06 million in its fundraising account, with RMB 19.34 million allocated for temporary working capital [2][3][5] - The company has used RMB 102.44 million for working capital and has a remaining balance of RMB 17.32 million from the 2021 fundraising [14][18] Project Updates - The probe station R&D and industrialization project has been delayed, with the expected completion date extended to December 31, 2025, and the budget reduced to RMB 210.27 million [8][9][10] - The company has decided to redirect RMB 50 million from the probe station project to the high-end smart manufacturing base project, which aims to enhance production capacity [8][9][10] Financial Performance - The probe station project has reported a cumulative loss of RMB 7.10 million as of March 31, 2025, falling short of the expected profit of RMB 44.68 million [14][19] - The company has not made any performance commitments for the acquisition of Changyi Technology, which is now fully owned [16][19] Idle Funds Management - The company has utilized idle funds for temporary working capital, with a total of RMB 69.92 million used as of March 31, 2025, and all funds returned to the special account within the stipulated time [18][19]

Core Viewpoint - The company has not faced any penalties from regulatory authorities in the last five years and has taken corrective measures in response to previous regulatory communications [1][5]. Group 1: Regulatory Actions - In the last five years, the company received one inquiry letter from the Shenzhen Stock Exchange and one warning letter from the Zhejiang Securities Regulatory Bureau [2][3]. - The inquiry letter required the company to clarify the basis and rationale for its 2020 profit distribution plan, assess potential risks related to stock price manipulation, and ensure compliance with information disclosure obligations [2]. - The warning letter highlighted issues such as premature revenue recognition in 2022, improper management of raised funds, and inadequate internal controls over sales [3][4]. Group 2: Corrective Measures - The company took the issues raised in the warning letter seriously and implemented corrective actions, submitting a written report to the Zhejiang Securities Regulatory Bureau [5]. - The company has ensured that there were no penalties imposed by the regulatory authorities for the matters addressed in the warning letter [5].