Dear colleagues, Happy New Year!

　　As the East Sea tide rises, Tongfu embraces a vibrant new era. On the occasion of the 2023 Year of the Dual Spring Rabbit, on behalf of the Group Company, I extend my warmest New Year wishes to every member of the Tongfu family! And to the dedicated frontline managers and employees who remain steadfast at their posts during this festive season, please accept my sincerest greetings!

　　There is no reward that comes from waiting—only the joy of hard work and achievement. Facing pressure head-on, tackling challenges step by step, 2022 was a year worth recording in Tongfu Microelectronics' journey of growth. Despite enduring prolonged impacts from COVID-19, escalating tensions in the Russia-Ukraine conflict, and the global semiconductor industry undergoing transformative shifts, we remained steadfast in our response to an increasingly complex and challenging market environment, as well as unexpected obstacles on multiple fronts. Together, we rallied our leadership team and employees to rise above adversity, take proactive action, and move forward with determination. As a result, we overcame one hurdle after another, steadily advancing toward our ambitious goal of achieving high-quality development and realizing the Tongfu Dream.

　　Racing against time and striving relentlessly toward our goals. Over the past year, we’ve united as one team, working passionately and diligently—combining hard work with practical action—to achieve significant growth for the group and successfully complete the targets set at the beginning of the year. This remarkable accomplishment is the result of every employee in the group stepping up, taking responsibility, and giving their all; it’s a testament to the dedication and efforts of all our dedicated contributors, embodying the wisdom and sweat of Tongfu people. Here, I’d like to pay tribute to every manager and employee—and extend my heartfelt gratitude to each and every one of you who has tirelessly pursued excellence!

　　It is precisely in times of hardship that courage and determination shine brightest. Looking back on this year, the entire group has remained fully committed to our year-round strategic plan, focusing intently on the nine key tasks as our central mission. We’ve aimed to propel our performance to a new milestone of 20 billion yuan, actively optimizing our business team structure, strengthening market research and expansion efforts, and deepening strategic partnerships with customers in emerging fields—while enhancing our localized service capabilities. At the same time, we’ve effectively tackled the structural shortages in the semiconductor market by swiftly adjusting our production capacity strategy, ramping up investments in our flagship products, and achieving rapid growth and expansion.

　　This year, we amplified the impact of our awards, achieving another breakthrough in advanced technologies. HPC technology is accelerating mass production of 2.5D products; Memory has established a leading edge in key technologies and products such as PoPt, embedded solutions, and 3DIC; Power and automotive technologies are expanding comprehensively into the automotive power module business and the MCU sector; Display Driver is developing COP technology, positioning us favorably to meet the demand for next-generation mobile phone display driver chips; and SiP Modules are advancing toward wafer-level integration technologies.

　　Tongfu Chaowei has achieved remarkable results by focusing on its core business. Centered around three key objectives—further breakthroughs in operational performance, continuous upgrades in advanced technologies, and the resumption of expansion projects—the company leverages its technological strengths in cutting-edge processes such as 7nm, 5nm, FCBGA, and Chiplet. By deepening collaboration with industry-leading firms like AMD, Tongfu Chaowei is steadily expanding its market share and maintaining steady growth in sales performance.

　　Over the past year, we have reformed our operational mechanisms, strengthened process control and foundational management, optimized our financial systems, and elevated our overall business performance. We also implemented group-based HR management reforms, refined our performance management system, and enhanced personnel and organizational practices by promoting streamlined, professional, and IT-driven processes. Meanwhile, we ensured robust supply chain support, actively pursued cost reductions in procurement, and advanced intelligent manufacturing through cutting-edge information technology. Additionally, we upgraded our IT management systems across the board. These transformative initiatives have collectively driven significant improvements in organizational capabilities. Furthermore, we successfully completed a new round of private placement financing. Looking ahead, our operations will remain focused on bolstering competitiveness, accelerating the introduction of innovative products, ensuring superior quality, enhancing automation, and expanding production facilities—continuously solidifying the foundation for our company’s sustainable growth and long-term success.

　　Great challenges refine true strength. We have steadfastly upheld our four core principles—epidemic prevention and control, safe production, environmental protection, and reliable power supply—ensuring steady progress and long-term success. In particular, with the unwavering spirit of standing together through thick and thin, we’ve responded flexibly to recurring outbreaks. All our managers and employees have bravely stepped forward, putting the greater good above personal concerns, and faithfully staying at their posts. Despite immense obstacles such as disruptions in accommodation, food supplies, and the supply chain, we’ve managed to maintain smooth operations by seamlessly integrating work-from-home arrangements with on-site activities, while also receiving invaluable understanding and support from employees’ families. Thanks to your dedication and resilience, we’ve effectively safeguarded both epidemic control and uninterrupted production. To each of you, I extend my highest respect!

　　Time records our journey of perseverance. Over the past year, the group’s project construction has steadily advanced, significantly strengthening the company’s long-term growth momentum. During the Spring Festival, construction at the seventh production base continued without pause, while the new factory in Penang commenced operations on schedule. Meanwhile, Tongfu Supermicro (Suzhou) Microelectronics Co., Ltd. officially broke ground with great ceremony, and Phase III of the Sutong Plant was successfully topped out. In the fleeting passage of time, we’ve witnessed Tongfu Microelectronics as a resilient, thriving, and united family—home to dedicated and respected employees, driven by rapid progress, and rooted in a legacy of continuous innovation. As we strive toward the high-quality development of the Tongfu Dream, we stand firm with strength, unwavering confidence, and an unshakable belief in our bright future!

　　In 2022, Tongfu Microelectronics celebrated its 25th anniversary. We strengthened our corporate culture, enriched its depth and meaning, and successfully organized a series of celebratory events, including the launch of a commemorative slogan, diverse cultural and sports activities, as well as awards ceremonies. These initiatives fostered a vibrant atmosphere of shared celebration throughout the group. Looking back on the past 25 years, we highlighted our commitment to international collaboration, relentless innovation, unwavering focus on core business, and the guiding role of our corporate culture—achievements that have collectively inspired全体员工 to unite their hearts and minds, working together with determination toward our established goals, and empowering them with an indomitable spirit.

　　As 2023 approaches, we must firmly anchor ourselves to our goals, bravely move forward with high spirits, and confidently pursue our dreams for the future. The report of the 20th National Congress of the Communist Party of China emphasized the need to focus on developing the real economy, promote new forms of industrialization, and accelerate the building of a manufacturing powerhouse. It also called for advancing the high-end, intelligent, and green development of manufacturing, while speeding up the growth of the digital economy and fostering deep integration between the digital and real economies. Tongfu Microelectronics will thoroughly study, implement, and carry out the spirit of the 20th CPC National Congress, striving to unlock the intrinsic momentum of the real economy through digital transformation. Meanwhile, the Central Economic Work Conference outlined five fundamental principles and five key policy directions, all of which inspire us to strengthen our confidence in development, seize opportunities, adapt to trends, and propel our enterprise to new heights.

　　In the new year, on a fresh path ahead, we must be guided by the spirit of the 20th National Congress of the Communist Party of China. We will firmly seize the strategic opportunities presented by the nation’s drive to expand domestic demand. Facing the daunting challenges of a complex and ever-changing macroeconomic environment and rapid technological advancements, we will proactively adapt to change, continuously enhance our capabilities, and maintain a spirited, forward-moving mindset. With unwavering determination, we’ll accelerate our progress toward realizing the Tongfu Dream of high-quality development, ensuring that Tongfu Microelectronics remains vibrant and dynamic—continuously emerging as a vital force in revitalizing China’s integrated circuit industry.

　　At this very moment, let us join together in wishing Tongfu Microelectronics prosperity and thriving growth, as we strive to write a brilliant "chip" chapter of high-quality development for the Tongfu Dream! Wishing our employees a happy New Year—may you enjoy good health and family happiness!