MOTORCOMM ELECTRONIC TECHNOLOGY CO.,LTD — Management Reports 2025

Apr 28, 2025

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Evaluation Report on 2024 Corporate Value and Return Enhancement Action Plan and 2025 Action Plan

Motorcomm Electronic Technology Co., Ltd.

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ABOUT
THIS REPORT
Motorcomm Electronic Technology
Co., Ltd. (hereinafter referred to as
"Motorcomm" or the "Company")
actively implements the "Initiative on
Carrying out the Special Corporate
Value and Return Enhancement
Action for Companies Listed in
Shanghai Stock Exchange". Upholding
that investors are essential for
markets and listed companies are
foundations for markets, the Company
released 2024 Corporate Value and
Return Enhancement Action Plan
was released on April 29, 2024 and
Semi-annual Evaluation Report on
2024 Corporate Value and Return
Enhancement Action Plan on August
29, 2024 in reliance upon its firm
belief in its future development and its
recognition of its long-term value, in
order to safeguard the interests of all
shareholders.
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Adhering to Independent Innovation, Focusing on the Principal Business, and Enhancing Core Competencies

• 05 Continuously integrating industry resources around the seven major product lines to keep advanced within the industry

• 07 Maintaining intensity of R&D investments and keeping on making innovations to continuously improve independent R&D capability

• 09 Attaching importance to the talent development strategy, and optimizing the incentive mechanism to maintain stability of the scientific research team

• 10 Strengthening brand building and marketing network construction, and actively developing domestic and overseas markets

• 10 Promoting strategic M&A of resources around industries and performing industrial-financial integration to enhance competitive advantages

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Improving Information Disclosure and Building a Multi-Level Investor Communication Mechanism

• 19 Increasing the readability of information disclosure

• 19 Making the information more accessible

• 19 Strengthening investor communications

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Optimizing Financial Management, Improving Quality of Earnings, Increasing Operational Efficiency and Enhancing Competitiveness

Optimizing Corporate Governance and Enhancing the Awareness of the "Key Minority"

• 12 Using a scientific management system to comprehensively promote cost reduction and efficiency improvement

16 Promoting improvement of the internal governance mechanism

  - Ensuring that independent directors perform their duties according to law

• 16

• 12 Enhancing customer diversification and increasing asset profitability

Increasing the normative consciousness of directors, supervisors and senior executives

• 17

• 13 Optimizing financial management capability and improving internal operational efficiency

• 14 Reasonably planning capital stock and increasing capital utilization rate

Improving the internal control system

• 17

• 14 Strengthening the efficacy of raised funds and consolidating the ability to manage projects invested by raised funds

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Sharing the Benefits between the Management and Shareholders and Actively Conveying the Company's Value

Other Matters

• 21 Establishing a normalized equity incentive mechanism, and maintain consistency among the interests of the management and the shareholders

• 21

• Considering both development of the Company and shareholder interests, actively conveying value of the Company

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To continuously promote the optimization of operations, standardize corporate governance, and enhance investor confidence, the Company conducted an overall assessment on the implementation of the 2024 Corporate Value and Return Enhancement Action Plan. Meanwhile, based on its own development strategy and operating conditions, the Company has drafted the 2025 Corporate Value and Return Enhancement Action Plan, with details shown as follows:

Adhering to Independent Innovation, Focusing on the Principal Business, and Enhancing Core Competencies

Having always been committed to becoming a leader in the field of high-speed wired communication chips, the Company has insisted on conducting persistent R&D and innovation of high-speed communication chips extending to higher-level communication architectures based on Ethernet physical layer chips.

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Ethernet
physical layer
chips for network
communication
Ethernet switch Ethernet
chips for network network card
communication chips for network
communication
Vehicle-borne
Ethernet physical Vehicle-borne
layer chips Ethernet switch
chips
Vehicle-borne
Vehicle-borne
high-speed video
gateway chips
transmission
chips
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In 2024, relying on technological innovations, reliable quality and high-quality services, the Company achieved total operating revenue of RMB million, with a year-on-year increase of . In the four quarters, its operating revenue amounted to RMB million, RMB million, RMB million and RMB million respectively. During the reporting period, the Company achieved steady quarter-over-quarter growth in its operating revenue.

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2024 was the year when 2.5G network communication products were put into mass production, the operating revenue from a single product project was up to RMB 141.70 million, with a year-on-year growth rate of 579.31%, and it was a harvest period;

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Regarding
Ethernet
network
communication
chips
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Gigabit Ethernet physical layer chips for network communication were constantly being improved in terms of their varieties. At present, there have been products with different numbers of Gigabit ports, including single port, 2 ports, 4 ports and 8 ports;

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5-port and 8-port Ethernet switch chips were mass-produced for shipment. The YT923X switch chips were launched at the end of 2024. The Company not only provided 8/16/24port Gigabit switch solutions, but also significantly improved and optimized software and hardware features. As of the end of 2024, it had developed products with different numbers of ports at varying rates, including 2, 4, 5, 8, 16 and 24-port products, covering application scenarios such as commercial and enterprise networks.

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The switch chips were launched and letters of intent were entered into with leading customers in respect of these chips. Having become one of the supporting product lines of the Company's vehicle-borne high-speed wired communication chips and combined with the mass-produced vehicle-borne Ethernet physical layer chips, they further facilitated and unified the customer needs for overall vehicle-borne Ethernet solutions;

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Regarding
vehicle-borne
Ethernet chips
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The vehicle-borne Ethernet physical chips have been put into mass production and shipped. At present, 100M and 1,000M products are available to the customers. Among them, the YT8011A series won the "Excellent Product Award for Automotive Chips" at Editors' Choice Award by China Electronics News Agency (CENA) at 2024 Beijing Auto Show;

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Smooth progress was made in R&D of vehicle-borne high-speed SerDes video transmission chips, and all the data of the test samples reached the expected design targets.

In 2025, with BU as its important strategic pivot, the Company has made special arrangements around upgrading of the product matrix and expansion of the scenario-based applications, with a view to creating more competitive solutions and driving sustained revenue growth through technology iteration, product optimization and strategic resource focus. Besides, it will continuously develop related products to adapt to new application scenarios. Driven by 5G-A/6G wireless networks, the Company will make more contributions to new quality productive forces as various new trends emerge in the Internet of Vehicles, high-speed copper wire transmission, and industrial Internet.

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The Company has remained committed to technological innovation, strengthening its own performance resilience and vitality across industry cycles. It independently developed Ethernet physical layer IP technology, which endowed the chips with functions for polarity detection and correction as well as adaptive equalization, and effectively improved the accuracy and stability of data transmission. Besides, the backbones of the Company participated in the discussion for IEEE 802.3 formulation and took the lead in drafting a number of automotive Ethernet-related standards, demonstrating the Company's profound foundation and innovative strength in the technical field.

To speed up the improvement of the high-speed wired communication product system and gain priority in the layout of markets across different fields, the Company has always adhered to "market-oriented and technology-driven" strategy, upheld technological innovation as the core, and firmly implemented the strategy for enhancing R&D.

In 2024, the Company continuously strengthened its R&D investment, with a cumulative R&D investment of RMB million, with a year-on-year increase of , accounting for of the current operating revenue. It applied for new invention patents, and a total of invention patents.

The key core technologies mastered by the Company are as follows:

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Descriptions of core
SN Main purposes Applications
technologies
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Board level high-speed communication
High-performance SerDes
interface between the physical layer and Full range of products
design technology
the data link layer
Vehicle-borne/ Ethernet
High-performance ADC design Perform digital sampling of physical
physical layer chips for network
technology layer analog signals
communication
Vehicle-borne/ Ethernet
High-performance DAC design
Generating physical layer analog signals physical layer chips for network
technology
communication
Recovering received signals and echo Vehicle-borne/ Ethernet
High-speed digital equalizers
cancellation for transmitted signals in physical layer chips for network
and acoustic echo cancellers
the digital domain communication
Design technology of high ehicle-borne/ Ethernet physical
Improving the reliability of signal
reliability surge protection layer chips for network
interfaces of the physical layer chips
circuits communication
Design technology for low Generate wide-range low jitter reference
Full range of products
jitter phase-locked loops clocks
Vehicle-borne/ Ethernet
Broadband analog echo Cancel echo of transmitted signals in
physical layer chips for network
cancellation technology the analog domain
communication
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Descriptions of core
SN Main purposes Applications
technologies
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Vehicle-borne/Ethernet
Complete ultra-long distance (greater physical layer chips for network
Ultra-long distance Ethernet
than 400 m) Ethernet transmission via a communication, vehicle/Ethernet
transmission method
private physical layer protocol switch chips for network
communication
Detect wire and cable conditions (open Vehicle-borne/ Ethernet
Wire and cable defect
or short circuit) by detecting the echo of physical layer chips for network
detection technology
transmitted signals communication
Vehicle/Ethernet switch chips
Low-to-medium power design and
for network communication,
verification methodology for SOCs, signal
SOC integration technology Ethernet network card chips for
and power integrity design verification
network communication, vehicle-
methodology improve chip quality
borne gateway chips
Vehicle-borne/Ethernet
physical layer chips for network
IEEE 1588 Standard Realize precise time synchronization
communication, vehicle/Ethernet
for a Precision Clock between different physical layer nodes
switch chips for network
Synchronization Protocol in Ethernet networks
communication, vehicle-borne
gateway chips
Vehicle-borne/Ethernet
Guarantee the security of Ethernet data physical layer chips for network
frames through identity authentication, communication, vehicle/Ethernet
MACsec
data encryption, integrity check, replay switch chips for network
protection and other functions communication, vehicle-borne
gateway chips
Design technology for Realize the applications in non-integer
fractional-N phase-locked multiples of output clocks and reference Full range of products
loops clocks
Realize channel encoding and decoding,
LDPC/RS channel encoding Vehicle-borne/ Ethernet
lower the bit error rate of physical layer
and decoding, their low power physical layer chips for network
information transmission, and reduce
implementation technologies communication
the power for implementation
Satisfy the core needs for real-
Vehicle-borne TSN switch time, high reliability, and low latency Various vehicle-borne domain
implementation technology communications of modern intelligent controllers
connected vehicles
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The Company will continuously increase the investment in R&D of new products, optimize existing products, and provide customers with product mixes with different performance levels and transmission rates to accommodate the changing needs of end customers.

In 2025, the Company will focus on investing in R&D of the following fields, including network communication and vehicle-borne products. In terms of network communication products, it will continue investing in 2.5G chip upgrading and iteration, continuous iteration and performance optimization of Gigabit series products, Ethernet switch series products and network cards. Regarding the vehicle-borne products, the Company will focus on building a complete ecosystem of vehicle-borne Ethernet solutions and creating a competitive product matrix, including vehicle-borne TSN Switch and a complete product chain of vehicle-borne wired communications. In addition, it will accelerate the R&D of next-generation vehicle-borne chips to support higher bandwidth and multi-domain integration, expand overseas certifications and applications, and extend to charging piles, V2X and other automotive peripheral fields to create a complete vehicle-borne communication ecosystem. As a leading domestic leading enterprise of vehicle-borne Ethernet chips, the Company will continue to seize industry upgrading opportunities in reliance upon technological innovations and localized services.

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In reliance upon its profound understanding of Ethernet, related communication protocols and chip design technologies, the Company has constructed mature and effective interdisciplinary collaborative R&D and R&D talent training mechanisms, thus demonstrating its own unique core talent characteristics and advantages. It has built a highly educated and high-level R&D team. With senior talents specializing in multiple fields, including integrated circuits, electronic engineering, microelectronics, communications, computers and information technology, the core technical team has rich academic knowledge and more than ten years of practical experience in R&D and innovation, with a profound understanding and judgement about cutting-edge technologies and development trends in the industry, constituting the backbone force of the Company's R&D.

Team with a total of R&D employees, with a year-on-year increase of , accounting for of the Company's total employees. In that team, the employees holding a master's degree and above approximately occupy .

In 2024, the Company actively participated in industry-university-research cooperation in the chip design industry. Focusing on scientific innovation and talent cultivation, it adhered to the concept of win-win cooperation, and joined hands with many universities and scientific research institutions to carry out in-depth research on cutting-edge technology projects, for the purpose of promoting the joint development of the industry:

Jointly held an unveiling ceremony at the Shanghai Research & Development Center with National Innovation Center par Excellence (NICE), conducting in-depth discussions and exchanges;

Invited as one of the first member units of "Suzhou University-Enterprise Cooperation Committee" of Suzhou High-tech Zone to attend Suzhou High-tech Zone IndustryTeaching-Research Integration Development Conference and the "100 Parks, 100 Universities and 10,000 Enterprises" Innovation Cooperation Promotion Conference;

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Conducted cooperation with Nanjing University of Posts and Telecommunications focusing on R&D and innovation of Ethernet transmission chip technologies. Dependent upon profound academic accumulation and scientific research strengths in the field of communication technologies, the Company accelerated its iterative upgrade of technologies, optimized its product cost structure, and enhanced its product differentiation advantages;

SUZHOU Formally entered into cooperation with Hong Kong Applied Science and Technology Research Institute on the "high-speed IO system" project.

By cooperating with these companies, the Company improved its supporting hardware, office environment and R&D scenarios. It could better attract scientific and technological talents, further improved the layout of "Big Laboratories", and accelerated its global supply chain layout.

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In addition, the Company always upheld "openness, inclusiveness, communication and sharing" for its R&D activities. Its internal R&D team hosted several corresponding special technical sessions (i.e. Technical Day series activities) for technical research and internal exchanges, to empower its products the perspective of product iteration, performance optimization, development process and other key aspects.

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Special Session of "Technical day-IR Drop"

Special Session of "Technical Day - Verfication&Validation"

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market layout, in order to realize the transformation from a domestic technology-based startup to a global business group. Guided by market demand, the Company will continue to reinforce its construction of new product lines, continuously improve its design schemes for its existing products, and satisfy the diverse needs of global customers with better products and service systems.

In the chip design industry, overseas application scenarios are abundant, and customer coverage is wide. In the process of continuously consolidating and deepening its cooperation with local customers, the Company always regards overseas market development as one of the priorities for its work.

In active response to the national "Going Aboard" strategy, the Company set up a development center in Singapore, completed the early team building, and achieved phased results in global business promotion. The Company also appeared at Electronica and 2024 IC CHINA, showing its strong competitiveness and growth potential in overseas markets.

In 2024, the Company realized overseas operating revenue of RMB million, with a year-on-year growth of .

In the future, the Company will continue to consolidate and expand its domestic businesses while enhancing its overseas

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With the focus on high-speed wired communication as its principal business, the Company will always persist in and intensify its ecological construction. Drawing lessons from enterprises at different stages of development in multiple dimensions such as scientific and technological process, growth space, ecological co-construction, the Company will constantly pool its surrounding resources, consider investment and M&A tools when appropriate, and speed up its supplementation of product lines and fill the technical gaps around the upstream and downstream industries related to its principal business, so as to make breakthroughs in higher speed fields, steadily promote the industrial clusters related to its principal business, and enhance its core competitiveness.

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Optimizing Financial Management,Improving Quality of Earnings, Increasing Operational Efficiency and Enhancing Competitiveness

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Relying on the DSTE management system, the company drafts scientific and forward-looking strategic plans for R&D and innovation, decomposes its strategic objectives, optimizes its R&D and production processes, promotes its implementation of strategies, transforms them into business results, and takes multiple measures to reduce costs and increase efficiency.

In 2025, while making efforts for industrial diversification and product mix optimization, the Company will integrate the concept of cost reduction and efficiency improvement into all links, including R&D, procurement, production, sales and market development, in an attempt to maximize returns by streamlining investments, and make every effort to create more substantial returns for its investors.

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The Company's products have been applied in thousands of customers or end customers of different fields, and entered the supply chain system of more customers. The Company can provide customized solutions according to the actual needs of its customers to improve customer satisfaction and product adaptability. At present, the Company's products have been applied in thousands of customers or end customers of different fields, including H3C, Xiaomi and Nova. Those products have been included in the lists of more customers' suppliers for product testing and shipment.

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In 2024, the Company's sales to the top five customers were approximately RMB million, accounting for of the total annual sales.

In 2025, the Company will accelerate the R&D of new products and enhance its efforts for customer development at home and abroad, in an attempt to increase the return on assets, including three aspects:

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Strengthening in-depth cooperation with existing customers, satisfying new customer needs in a timely manner while increasing the existing market share, and create an excellent supply chain ecosphere together with customers;

Actively exploring new customers, increasing the data communication market share, and focusing on the market of automotive chips; actively strengthening cooperation with various car companies and related suppliers that vigorously promote development in smart driving; actively deploying the relevant markets of data centers, and accelerating customer diversification through implementation of strategic cooperation projects;

Based on seven product lines, continuing to diversify and optimize the product mix by expanding new downstream application scenarios so that the related products of the Company in the field of data communication may be applied in households, enterprise networks and more fields.

Financial management capability affects the Company's daily operational efficiency and overall business performance. As of the end of 2024, the Company's overall asset-liability ratio was about ; the balance of accounts receivable was RMB million and the turnover rate of accounts receivable was approximately ; the inventory balance was about RMB million, and the inventory turnover was approximately .

In 2025, the Company will continue to strengthen optimization of the financial management and improve its operational efficiency, including:

Promoting industry-finance In terms of accounts receivable For inventory turnover ratio, integration, strengthening turnover ratio, enhancing the strengthening delicacy informatization construction credit evaluation mechanism, management of the supply of financial management, optimizing credit policies, chain, continuously improving optimizing the forwardd e v e l o p i n g f a v o r a b l e inventory management, l o o k i n g a n d p r o c e s s collection procedures, doing a and achieving quick market management of planned good job in the management penetration in compliance expenditures, and providing of payment collection and w i t h t h e s a le s m o d e l more accurate financial accounts receivable for "focusing on distribution, support for the management orders, and continuing to supported by direct selling". to make predictions; optimize its cash flow;

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As of the end of 2024, the balance of the Company's monetary fund was approximately RMB million, and the balance of financial assets held for trading amounted to RMB million.

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The Company attaches great importance to the reasonable planning and use of its capital stock. In 2025, the Company will continue to strengthen cash management, improve the capital utilization efficiency, and better realize fund preservation and appreciation. On the premise of its fund liquidity and security, the Company will invest part of its idle self-owned funds in banks' wealth management products with certain returns.

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In 2025, the Company will strengthen the efficacy of its raised funds, and promote its principal business through the implementation of these projects in strict compliance with relevant laws and regulations, normative documents and the Company's Management Measures for Corporate Fundraising, to realize expected returns of the projects, and enhance its overall profitability. Some idle raised funds will be properly used for cash management to increase capital efficiency on the premise of not affecting the construction of fundraising projects and the safety of raised funds.

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Optimizing Corporate Governance and Enhancing the Awareness of the "Key Minority"

The Company has always regarded reliable governance as an important cornerstone for achieving high-quality development, continuously improved its management as a modern enterprise, constantly standardized its corporate governance structure, strengthened its construction and efficient operation of the Board of Directors, established and improved its internal governance system. It has actively promoted the diversification of its Board of Directors.

During the reporting period, the Company convened shareholders' meetings, meetings of the Board of Directors, meetings of the Audit Committee, meetings of the Nomination Committee, meetings of the Remuneration and Appraisal Committee.

In the future, the Company will continue to focus on the diversification of its Board of Directors, build a leadership core with more insight and decision-making power, facilitate effective implementation of its strategies, and steadily promote its sustainable development in the industry.

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In 2024, the Company performed its management based on the ESG, promoted the ESG governance mechanism with the Board of Directors assuming the main responsibility, set up the Strategic Investment and Sustainable Development Committee through the rules of procedure for three meetings and amendment to the Articles of Association, and gradually built/improved the three-tier management architecture with supervision and decision-making by the Board of Directors, coordinated management by the Strategic Investment and Sustainable Development Committee, and collaborative implementation by the ESG Working Group under the Board of Directors.With a systematic structure and supporting processes, the Company strived to ensure that ESG matters are accurately implemented at all levels, and to build a solid institutional guarantee for long-term sustainable development.

In 2024, with its Wind ESG rating upgraded from BB to BBB, the Company won 2024 5th Cailian Press ESG Zhiyuan Award: Corporate Governance (G) Pioneer Award and the Second Guoxin Cup • ESG Golden Bull Award. Relying on its past accumulation through practices, the Company will continue to fully integrate the ESG concept into its corporate management system and business operation process, and actively respond to the concerns and expectations of its stakeholders about its sustainable development capabilities.

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The Company has implemented the reform requirements for the independent director system, and built an independent director working group to ensure that independent directors can keep abreast of its development and operations in a timely manner through monthly regular meetings, special meetings and irregular communications of the independent directors. Besides, the Company provided comprehensive and convenient conditions for its independent directors to perform their duties, and designated the Office of the Board of Directors as bridge for communications to effectively protect the right of its independent directors to know and facilitate its independent directors to carry out on-site work for no less than 15 days every year.

In the future, the Company will continue implementing the reform requirements of the independent director system, further leverage the professional expertise of its independent directors, regularly evaluate its independent directors' independence, ensure that they can perform their duties independently and fairly, to provide a solid guarantee for its steady development.

In 2024, it held a total of regular meetings of independent directors to fully report its operating conditions and major matters to the independent directors in time.

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The Company pays close attention to the standardization of duty performance by the "Key Minority", including its controlling shareholders, actual controllers, directors, supervisors and senior executives, and steadily carries out policy research and study to help the "Key Minority" adapt to the changes in the regulatory environment in a timely manner. In 2024, the Company continuously strengthened the awareness of the "Key Minority", depth and frequency of daily learning and training:

The Office of the Board of Directors published 12 editions of the Corporate Governance Monthly and promptly sent them to the directors, supervisors, senior executives and relevant personnel to ensure that the "Key Minority" understand the latest laws and regulations, continuously increase the awareness of "improving quality, increasing efficiency and rewarding", and continuously better the operations management. The Corporate Governance Monthly includes multiple modules, including industry information, policies, systems, typical cases, corporate governance and market value analysis.

In the future, the Company will continue to deeply improve its internal training system, actively organize online and offline training for the "Key Minority", including directors, supervisors and senior executives, and further optimize the reporting mechanism to accurately push information such as changes in macroeconomic policies, latest development trends of the industry, updates of various regulatory laws and regulations, and issues particularly on investors, in order to help the management improve their abilities to perform their duties and effectively enhance their scientific, accurate, forward-looking decision-making.

Internally, the Company organized employees to sign up for special training of the CSRC, SSE, and China Associations for Public Companies, mainly covering "Nine Articles of NPC", corporate governance, performance of duties by directors, supervisors and senior executives, investor relations management, and industrial M&A, with an attendance rate of .

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In 2024, the Company revised 24 rules, including the Articles of Association, Rules of Procedure for the Board of Directors, Rules of Procedure for Shareholders' Meetings, Rules of Procedure for the Board of Supervisors, Related Transaction Management System, Foreign Investment Management System, External Guarantee Management System and Management Measures for Raised Funds according to the Company Law of the People's Republic of China, Securities Law of the People's Republic of China, Rules Governing the Listing of Stock on the Shanghai Stock Exchange, Guidelines for the Articles of Association of Listed Companies, Measures for Independent Directors of Listed Companies, Code of Corporate Governance for Listed Companies, Guidelines for Self-regulation of Listed Companies on the Shanghai Stock Exchange No.1 - Standardized Operations, and the Guidelines for Self-regulation of Listed Companies on the Shanghai Stock Exchange No. 5 - Transactions and Related Transactions.

In 2025, the Company will continue to optimize its construction of the internal control system, revise and improve the internal control system in a timely manner, ensure its standardized operation, protect the rights and interests of its investors, strengthen its internal control supervision and inspection, improve its internal control management, effectively prevent various risks, and promote its healthy, sustainable development according to a series of latest regulatory rules, including the new Company Law and the Guidelines for the Articles of Association of Listed Companies.

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Improving Information Disclosure and Building a Multi-Level Investor Communication Mechanism

The Company always places information disclosure and investor relations management in an important position, and strictly abides by the Rules Governing the Listing of Stocks on Shanghai Stock Exchange STAR Market and its Information Disclosure Management System and other relevant regulations. On the basis of earnestly fulfills its information disclosure obligations, it will continuously strengthen its investor research efforts and disclose material information such as regular reports and temporary announcements.

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The Company also attaches great importance to the investor relationship management, and develops multi-platform and multilevel investor communication channels through statutory information disclosure, collective performance briefings, its official website, its official account, roadshows/reverse roadshows, etc., to facilitate the investors' understanding of the Company. The Company persistently enhances its investor research efforts, with a view to narrowing information gaps in response to its investors' expectations.

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The Company actively explores and diversifies its presentation and dissemination forms of the Company's information disclosure, flexibly demonstrate the Company's operating conditions, R&D progress and product status to the investors in diverse manners, and highlight key information points to reduce the investors' reading burden.

(1) The Company interpreted the 2024 annual report and semi-annual report more intuitively in visual forms like Infographic, helping its investors better understand its operating result, financial status and development strategy;

(2) The Company presented its information in the form of PPT + videos through data charts and scenarios in its collective performance briefings, quarterly performance briefings and irregular investor research activities, to make the information more intuitive and comprehensible;

(3) Disclosed 2024 ESG Report of Motorcomm Electronic Technology Co., Ltd., to demonstrate its performance and fulfillment of social responsibilities to its investors in an all-round manner.

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In addition to legal information disclosure channels, the Company also provides more platforms for communicating and exchanging with the investors through the official website, official accounts and so on. The Company will set up places for displaying its development histories, diversifying the channels for the investors to obtain information, effectively conveying its value, and building market confidence:

The Company uses its WeChat official account "Motorcomm Electronic" to promptly push its latest developments and transmit cutting-edge industry trends to the investors. Besides, the Company optimizes the "Investor Relations" column of its official website, under which five sub-columns, namely Corporate Announcement, Stock Information, Investor Relations, Social Responsibility (ESG) And Investor Contact, have been set up.

In the future, the Company will continue to focus on improving the readability of information disclosed and the convenience of information acquisition, and further provide true, accurate, complete, timely and effective information for the investors' value judgment and investment decision-making.

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In 2024, the Company arranged a series of investor relations activities to promote the establishment of longterm, stable and mutually trustworthy relationships with the investors, including holding 3 online performance briefings, receiving 280 investor surveys, publishing 68 survey records, answering 147 questions at E-interactive, with a response rate of 100%, answering 158 phone calls from the investors, and maintaining full communications with the investors through public email and other means. In [December] 2024, the Company won the "Snowball Annual Gold Medal List • 2024 Investor Relations Management Award".

In the future, it will continue to strengthen the transparency of its information disclosure, adhere to the basic principles of conciseness, clarity and easy-to-understand, and protect the rights and interests of its minority shareholders.

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The Company will continue improving the business management model, optimize the remuneration and incentive system, strengthen the benefit sharing mechanism between the management and shareholders, and actively guide the "Key Minority" to assume corresponding responsibilities for promoting the Company's long-term stable development.

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In 2024, the Company drafted and implemented 2024 Restricted Stock Incentive Plan. Taking the growth rate of operating revenue and shipment quantity of vehicle-borne chips as the company-level performance appraisal targets, it synchronously defined individual-level appraisal requirements, and strengthened its strategic layout in the field of vehicle-borne chips on the basis of its total revenue target.

In the future, the Company will actively explore and establish a sound long-term incentive and restraint mechanism, firmly retain key talents while attracting outstanding talents to gather, effectively unify the interests of itself, its shareholders and employees, so that all parties can jointly focus on its long-term development and ensure that its established development strategies and business objectives can be realized.

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The Company attaches great importance to paying appropriate returns on investment to shareholders and has drawn up the Shareholder Dividend and Return Plan for Three Years after Listing of the Company in combination with its Articles of Association. On the premise of satisfying the conditions for cash dividends, the Company will give priority to profit distribution with cash dividends, maintain the continuity and stability of the profit distribution policies, and take into account its long-term interests, the overall interests of all shareholders and its sustainable development.

The Company will establish a stock price stabilization mechanism according to the capital market conditions, clarify over significant decline in short-term stock prices, fall below the issue price, or the net asset per share as an initiation condition, establish corresponding trigger mechanism, and take corresponding stock price stabilization measures, including stock repurchase, to stabilize stock prices and enhance investor confidence.

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Other Matters
The Company will continue to focus on the principal business, improve the
operations, and earnestly fulfill the responsibilities and obligations as a listed
company through favorable operations management, standardized corporate
governance, and positive investor returns, repay the investors for their trust,
maintain the Company's good market image, and facilitate steady and healthy
development of the capital market.
The Company's planning, development strategy and other forward-looking
statements involved in this Report are not fait accompli, and do not constitute a
substantial commitment of the Company to investors.
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Tel：021-50561032 Fax：021-50561703

Email: ytwdz@motor-comm.com

Address: Room 202, No. 78 East Jinshan Road, Suzhou High tech Zone, Jiangsu Province Building 18, Lane 388, Shengrong Road, Pudong New Area, Shanghai F/9-10, Building B, Lane 2000, Xinjinqiao Road, Pudong New Area, Shanghai