Core Viewpoint - The company has announced a new stock incentive plan involving the issuance of 888,000 restricted shares to attract and retain talent, aligning the interests of shareholders, the company, and its core team [1][2][3] Summary by Sections Stock Incentive Plan Overview - The stock incentive plan will grant 888,000 restricted shares, accounting for approximately 0.66% of the company's total share capital of 135,533,225 shares [1][5] - The initial grant will consist of 724,200 shares (0.53% of total share capital), while 163,800 shares (0.12%) will be reserved for future grants [1][5] Purpose of the Stock Incentive Plan - The plan aims to establish a long-term incentive mechanism to attract and retain outstanding talent, enhancing the motivation of the core team and ensuring a focus on the company's long-term development [1][2] Stock Incentive Mechanism - The incentive method involves the issuance of second-class restricted shares, which will be granted to eligible participants at a set price, with no shareholder rights until the shares vest [3][4] Granting Conditions and Participants - The plan will target 166 core technical personnel and other individuals deemed necessary for motivation, representing about 21.28% of the total workforce [6][7] - The total number of shares granted to each participant will be disclosed after the plan is approved by the shareholders' meeting [6][8] Vesting Schedule - The vesting of shares will occur in three phases over a maximum of 48 months, with specific performance targets based on the company's revenue growth [10][19] - The first vesting period will allow for 30% of shares to vest after 12 months, with subsequent periods allowing for 30% and 40% to vest [10][12] Grant Price and Valuation - The grant price for the restricted shares is set at 72.14 yuan per share, approximately 50% of the average trading price prior to the announcement [13][14][15] - The pricing strategy aims to ensure the effectiveness of the incentive plan and to attract top talent in the competitive semiconductor industry [15][16] Performance Assessment - The performance assessment will include both company-level and individual-level evaluations, with specific revenue growth targets set for the years 2025 to 2027 [22][23] - The company will utilize a comprehensive performance evaluation system to determine the actual number of shares that vest for each participant [20][21] Implementation Procedures - The plan requires approval from the shareholders' meeting, and the board of directors will oversee the implementation of the stock grants [23][24] - The company will ensure compliance with relevant laws and regulations throughout the process [23][24]

Group 1: Financial Performance - The company's revenue in Q1 2025 increased by 12.59% compared to the same period last year, attributed to successful market expansion and increased product sales [2][3][8] - Despite revenue growth, the company reported a net loss due to increased R&D and marketing expenses, as well as stock incentive plan costs impacting net profit significantly [3][8] Group 2: Market Strategy and Product Development - The company is focusing on domestic suppliers for raw materials, which has led to a decrease in procurement costs and a manageable impact on gross margin due to high gross profit levels [4] - The company is actively pursuing opportunities in the automotive-grade silicon carbide device market, with KGD testing solutions gaining recognition from major clients [3][4] Group 3: R&D and Innovation - The company is investing heavily in R&D, particularly in high-power devices and third-generation semiconductor testing, to enhance its technological capabilities [7][8] - Ongoing development of large-scale digital integrated circuit testing systems is progressing, with significant advancements in hardware and software [6][7] Group 4: Future Outlook and Investor Relations - The management expresses confidence in the company's long-term development and is committed to improving operational efficiency and core competitiveness [10] - The company is monitoring potential acquisition opportunities while focusing on its core business, with plans for strategic mergers and acquisitions when suitable targets arise [9][10] Group 5: Industry Position and Competition - The domestic market for semiconductor testing equipment has a current localization rate of approximately 20%, with ongoing efforts to increase this rate through R&D and validation [11] - The company aims to expand its product offerings beyond semiconductor testing systems to include integrated circuit testing, addressing the need for a diversified product matrix [10][11]