Thinkon SemiconductorCorporate Value and Return Enhancement Action Plan 2025

Thinkon Semiconductor Jinzhou Corp. (hereinafter referred to as "ThinkonSemiconductor" or "the Company") believes that improving the quality of listedcompanies, enhancing returns to investors, and increasing investors' sense ofgain are the inherent responsibilities of a listed company's development andits due obligation to investors.

The Company actively implements the relevant requirements of the "SeveralOpinions on Strengthening Supervision, Preventing Risks, and Promoting theHigh-quality Development of the Capital Market" and the "Opinions on FurtherImproving the Quality of Listed Companies" issued by the State Council. Itresponds to the "Initiative on Carrying out the 'Quality Improvement, EfficiencyEnhancement, and Return Emphasis' Special Action for Companies Listed onthe Shanghai Stock Exchange" by the Shanghai Stock Exchange, practicesthe development concept of listed companies that "puts investors first", andsafeguards the interests of all shareholders.

Based on confidence in its future development prospects and recognition ofthe company's value, and earnestly fulfilling its social responsibilities, theCompany specially formulates the "Corporate Value and ReturnEnhancement Action Plan 2025".This plan summarizes the implementationof the 2024 plan, further improves the company's operational efficiency,strengthens its market competitiveness, protects investors' rights andinterests, stabilizes the stock price, and builds a good image in the capitalmarket. The main contents are as follows:

1. Focus on Strengthening the Main Business and Improving CoreCompetitiveness

Since its establishment, Thinkon Semiconductor has been dedicated to theproduction, research and development, and sales of large-diameter siliconmaterials and their application products. With years of accumulation andlayout, the Company has maintained a leading position in the field of large-diameter silicon materials, mastering all technical processes for crystals up to22 inches and below. It is one of the very few integrated manufacturers inChina with the complete manufacturing capability. The Company can providelarge-diameter silicon material products to downstream manufacturersglobally on a large scale, with high quality, high reliability, and wide coverage,ranking in the first tier in the global niche market. In 2024, the Company'slarge-diameter silicon material business achieved an operating income of

174,043,900 yuan, a year-on-year increase of 108.32%; the gross profitmargin was 63.85%, a year-on-year increase of 13.73 percentage points; andthe silicon parts products achieved an income of 118,494,100 yuan, a year-on-year increase of 214.82%.

In 2025, the Company will further focus on its main business and enhance itscore competitiveness:

a. Seizing the Development Opportunities of the Semiconductor

Industry’s Recovery , Strengthening Marketing Efforts

Data from the World Semiconductor Trade Statistics Association shows thatthe global semiconductor market size in 2024 was $628 billion, a year-on-yearincrease of 19.10%. Entering 2025, global leading IC manufacturers andsemiconductor manufacturing equipment manufacturers have madepredictions. TSMC and Lam Research expect that the global semiconductormarket will continue to recover this year. The downstream demand for theCompany's large-diameter silicon materials and their processed silicon partsproducts is closely related to the capacity utilization rate and new capacity ofterminal IC manufacturers. Currently, it is still a period of developmentopportunities for the global semiconductor industry.

The Company will actively respond to the diversified demands of the rapidlygrowing domestic market. It will set up local offices, get closer to the actualproduction of customers, improve the feedback speed, proactively deploymarket resources, integrate and improve technical, quality, and logisticsservices, and further enhance customer satisfaction. In the overseas market,it will make strategic arrangements, actively track the latest technologicaldevelopment demands, and collaborate with overseas partners based on itsown advantages to further enhance the company's international marketstatus.

b. Optimize Operational Management and Improve Business Qualityand Efficiency

In 2025, the company will further improve order collection and paymentmanagement, actively control the scale of accounts receivable, increasecollection efforts, continuously monitor the collection of overdue accountsreceivable, and reduce or stop sales to specific customers based on creditrisk assessment.

In terms of inventory turnover, in 2024, due to the long evaluation andcertification cycle of the Company's strategic business semiconductor 8-inchsilicon wafer products, the average capacity utilization rate was limited. The

Company actively sought orders, took into account the needs of evaluationand certification and economic benefits, optimized the production schedulingplan, and adjusted the production and operation plan in a timely manner,reducing the inventory level. In 2025, the Company will continue to optimizethe production scheduling plan, strictly manage inventory, and unremittinglypursue the optimal balance between R&D verification and economic benefits.

c. Strengthen the Management of Fundraising Projects and Achieve

the On-schedule Commissioning of New Production Capacity

In 2023, the Company issued shares to specific objects through a simplifiedprocedure, raising a net amount of about 296.06 million yuan, with 210 millionyuan planned to be invested in the "Silicon Material Capacity ExpansionProject for Integrated Circuit Etching Equipment", 90 million yuan forsupplementary working capital, and the insufficient part will be resolved by thecompany with self-raised funds.

This project is a capacity expansion measure carried out against the backdropof the increasing demand for etching silicon materials driven by the large-sizetrend of silicon wafers and the shrinking of processing technology. The overallcapacity utilization rate of the company's large-diameter silicon materialproducts will be basically saturated under high industry prosperity conditions,and there is a project construction window period before the next upswingcycle of the semiconductor industry. The project will continuously optimize theproduct structure based on downstream market demand, further increase theproportion of high-margin 16-inch and above large-diameter products, andactively expand the business of etching polycrystalline silicon materialproducts to further improve profitability. After the project is implemented, it willform an additional annual production capacity of 393,136 kg of siliconmaterials.

In 2024, this project was in the stages of engineering construction andequipment installation. The production of the Company's large-diametersilicon material products was stable, the production capacity was graduallyincreasing, the product structure continued to be optimized and upgraded,and the revenue proportion of products above 16 inches with higher profitmargins further increased from 39.01% in 2023 to 51.61% in 2024.

In 2025, the Company will accelerate the implementation of the raised-fundinvestment projects, strive for early commissioning, and achieve the expectedbenefits.

2. Share Development Results and Improve the Investor Return

Mechanism

The Company believes that a good investor return is the cornerstone of acompany's long-term development in the capital market. Since its listing on theShanghai Stock Exchange's STAR Market in 2020, the Company has paid cashdividends to reward all shareholders for three consequent years: in 2020, acash dividend of 0.10 yuan per share (including tax) was paid, totaling16,000,000 yuan, accounting for 15.74% of the net profit attributable to theshareholders of the listed company in 2020; in 2021, a cash dividend of 0.41yuan per share (including tax) was paid, totaling 65,600,000 yuan, accountingfor 29.68% of the net profit attributable to the shareholders of the listedcompany in 2021; in 2022, a cash dividend of 0.10 yuan per share (includingtax) was paid, totaling 16,000,000 yuan, accounting for 10.12% of the net profitattributable to the shareholders of the listed company in 2022.

On April 24, 2023, the Company formulated and disclosed the "ThinkonSemiconductor Jinzhou Corp. Shareholder Dividend Return Plan for the NextThree Years (2023-2025)". The Company will distribute according to theprinciple of "same shares, same rights, and same shares, same benefits"based on the proportion of the company's shares held by each shareholder.The company implements a continuous, stable, and active profit distributionpolicy, values reasonable investment returns for shareholders, and under thepremise of meeting the cash dividend distribution conditions stipulated byrelevant laws, regulations, normative documents, and the "Company Charter",the Company will prioritize the cash dividend distribution method. In theabsence of major investment plans or major cash expenditure plans, withoutaffecting the normal business development needs of the company, thecompany's net profit for the year is positive, the accumulated undistributedprofit at the end of the year is positive, the capital reserve is positive, andother cash dividend distribution conditions stipulated by relevant laws,regulations, normative documents, and the "Company Charter" are met, theCompany should distribute no less than 10% of the distributable profit for theyear in cash.

In 2024, the Company plans to distribute a cash dividend of 0.75 yuan(including tax) for every 10 shares to all shareholders. As of theannouncement date, the total share capital of the Company is 170,305,736shares. After deducting 950,416 shares in the repurchase-dedicated account,the total planned cash dividend is 12,701,649 yuan (including tax). Theproportion of cash dividends of the Company in the net profit attributable toshareholders of the listed company in the consolidated financial statementsfor this year is 30.87%. This profit-distribution plan has been reviewed andapproved by the 4th meeting of the 3rd Board of Directors of the Companyand still needs to be submitted to the general meeting of shareholders forreview.

In terms of share repurchase, based on confidence in the Company's futuresustainable development and recognition of the company's value, in order toenhance investors' confidence in the Company and promote the stable andhealthy development of the Company, and effectively integrate the interests ofshareholders, the Company, and employees, with the review and approval ofthe Company's Board of Directors and general meeting of shareholders, theCompany started to implement the A-share repurchase in November 2023. Bythe end of the repurchase period, the Company had cumulatively repurchased950,416 A-shares, accounting for 0.5579% of the Company's total sharecapital, and the total transaction amount was approximately 28,595,409.90yuan (excluding transaction taxes and fees).

In 2025, the Company will continue to balance the dynamic relationshipbetween company development, performance growth, and shareholderreturns, actively explore ways and methods, and under the premise ofcomplying with relevant laws, regulations, and the "Company Charter" profitdistribution policy, take into account the immediate and long-term interests ofshareholders, achieve a "continuous, stable, and scientific" shareholder returnmechanism, and enhance the sense of gain for the majority of investors.

3. Accelerate the Development of New Quality Productive Forces andInnovate the Allocation of Production Factors

The Company will cultivate and use new quality productive forces to promotehigh-quality development of the company and lead industrial transformationand upgrading. It will strengthen industry-academia-research cooperation andactively improve the company's operational efficiency through technologicalbreakthroughs and innovative allocation of production factors.

A strong talent supply is the source of momentum for technology-intensiveenterprises. The Company, guided by job value and capability, driven byperformance results, establishes a "fair internally and competitive externally"compensation system, improves the efficiency of compensation resource use,motivates outstanding employees, encourages employees to activelycontribute ideas for the company's performance development, technologicalinnovation, and management optimization, thereby attracting outstandingtalents.

In 2025, the Company will continue to strengthen its talent developmentstrategy, optimize talent incentive mechanisms, maintain the stability of theresearch team, use restricted stock incentive plans as a normalized incentivemechanism, continue to recruit compound experts and technicians with richproduction and management experience, expand into the existing team of

middle and senior management personnel, strengthen the construction of ahigh-level talent echelon, and continuously enhance the competitiveadvantage of talent; continuously optimize and iterate the existingperformance assessment mechanism, improve the Company, department,and individual three-level performance assessment goals and content, andconstantly strengthen the performance assessment and benefit distributionsystem centered on "responsibility, rights, and interests", stimulating theenthusiasm of talents at work, achieving a win-win for the company andemployees.

The Company continues to strengthen R&D investment, with the company'sR&D investment aimed fundamentally at profitability, and R&D activities arecarried out based on the specific and clear assessment and certificationrequirements of downstream clients. The Company's R&D investment as aproportion of its annual operating income from 2022 to 2024 was 7.30%,

16.64%, 8.26%, respectively. The Company has cumulatively obtained 12invention patents, 86 utility model patents.

In 2025, the Company will stimulate the synergistic effects of R&D with themarket, supply chain, and customer service. It will keep pace with therequirements of world-advanced semiconductor manufacturing processes,continuously strengthen its technical reserves, and build its corecompetitiveness. Complete no less than 3 key core technology R&D projectswithin the year.

In the industrial situation where "global division of labor, free trade, efficiencyfirst" coexists with "localization of IC manufacturing", the Company considersinnovating the allocation of production factors through investment orcooperative development while growing internally, and growing together withdomestic and foreign high-end semiconductor material and componentmanufacturers, enabling the Company to cover more product categories andcapture more niche markets, laying the foundation for the company's long-term sustainable growth.

4. Improve the Quality of Information Disclosure and StrengthenInvestor Communication

The Company's securities office is the dedicated department forcommunication between the company and investors. Since its listing, theCompany has actively answered investor hotlines, promptly replied to investoremails and the "SSE E-Interaction" platform, and held investor communicationmeetings on platforms such as "SSE Roadshow Center" and "JinmenFinance" after the disclosure of quarterly, semi-annual, and annual reports,explaining the company's operating performance and interpreting regular

reports.

In 2024, the Company held 2 earnings presentation meetings, carried out 2investor relations management activities through new media, and had 2 offlineinvestor exchanges. The relevant investor relations activity records have beenpromptly disclosed.

In 2025, the Company will strictly follow laws, regulations, and regulatoryrequirements, implement the company's information disclosure managementsystem, and fulfill its information disclosure obligations truly, accurately,completely, timely, and fairly. Specific aspects include:

a. Investor Online Communication Activities

In the future, the Company will continue to maintain active onlinecommunication with investors, enrich investor communication methods,expand communication channels, and enhance transparency. The Companywill hold no less than 4 investor online communication meetings each yearthrough platforms such as "SSE Roadshow Center" and "Jinmen Finance",ensuring that the communication meetings are held within one week after therelease of regular reports, with the company's chairman, general manager,and other key personnel actively participating in relevant activities.

b. Improve the Investor Opinion Solicitation and Feedback Mechanism

The Company will continue to improve the investor opinion solicitation andfeedback mechanism, enhance the transparency of information disclosure,actively, timely, and in-depth understand investor demands and make targetedresponses. This will allow investors to fully and timely understand thecompany's operating conditions and development strategies, strengthencommunication with investors, and enhance investor trust in the company.

5. Deepen Corporate Governance and Ensure Standardized Operations

The Company attaches great importance to the soundness of its corporategovernance structure and the effectiveness of its internal control system, andwill continue to improve the legal person governance and internal controlsystems, improve the standardization of company operations and thescientific nature of decision-making, and fully protect shareholder rights. Thespecific plan is as follows:

a. Accelerate the Implementation of Independent Director System

Reform

The Company will accelerate the implementation of independent directorsystem reform, optimize the selection of audit institutions and internal auditmanagement, further strengthen the supervision of branches and subsidiaries,and ensure the company's compliant operations.

b. Improve Internal Control Construction

Combining the actual situation of the company, comprehensively sort out theoriginal management systems, and establish a suitable internal controlmanagement system for the company under the premise of meeting internalcontrol requirements, clarify the responsibilities and authority of relevantdepartment personnel, and implement comprehensive management. TheCompany will complete the update of its management system within the year.

c. Management Self-discipline and Compliance

The Company's directors and senior management personnel will faithfully anddiligently perform their duties, restrain occupational consumption behavior, nottransfer benefits to other units or individuals, and effectively protect the legalrights and interests of the listed company and all shareholders. In majormatters such as production and operation, investment and mergers andacquisitions, protect the legal rights and interests of investors, especially smalland medium-sized investors, enhance investor participation and sense ofidentification.

d. Board and Supervisory Board and Senior Management Training

The Company's board and supervisory board members and seniormanagement actively participate in various training organized by regulatoryagencies such as the China Securities Regulatory Commission (CSRC) andthe Shanghai Stock Exchange, strengthen the study of securities market-related laws and regulations, continuously improve self-discipline andcompliance awareness, and promote the company's continuous standardizedoperation. The Company will fully encourage and assist the board andsupervisory board members and senior management to actively participate inrelevant training in the future.

6. Strengthen the Binding of Management and Shareholders' Shared

Interests and the Responsibility of the "Key Minority"

Since its listing, the Company has maintained close communication with theactual controller, controlling shareholders, shareholders holding more than 5%of the shares, and other "key minorities" of the company, organized relevantparties to participate in training on the standardized operation of listed

companies, case analysis of risk prevention, and training related to "honestyobligations of major shareholders and board and supervisory boardmembers", promptly informed the latest regulatory information and regulatorycases, standardized the rights and obligations of the company andshareholders, prevented the abuse of shareholder rights and theadvantageous position of management to damage the rights and interests ofsmall and medium-sized investors; tracked the fulfillment of promises byrelevant parties on a quarterly basis and conducted pre-communication toensure that relevant parties fulfill their promises.

In 2025, the Company will continue to strengthen communication with the"key minorities", guide shareholders to invest long-term, track the fulfillment ofpromises by the aforementioned relevant parties, continuously strengthen thesense of responsibility and fulfillment of promises of the relevant parties. Atthe same time, the Company will continue to organize the aforementionedrelevant parties to participate in various training organized by regulatoryagencies such as the Shanghai Stock Exchange and the CSRC, promptlyconvey regulatory updates and regulatory dynamics, strengthen the "keyminorities" learning of capital market-related laws and regulations,professional knowledge, and continuously improve their self-disciplineawareness, jointly promote the company's standardized operation. Efforts willbe made to guide the "key minorities" to convey confidence in the company'sdevelopment prospects through commitments not to reduce holdings,increase holdings in the company's shares, and other methods.

7. Other Matters

The Company will continue to assess the implementation of the action planand timely fulfill its information disclosure obligations. The Company willcontinue to focus on its main business, enhance the company's corecompetitiveness, profitability, and risk management capabilities. Throughgood business management, standardized corporate governance, and activeinvestor returns, the Company will effectively protect investor interests, fulfillthe responsibilities and obligations of listed companies, reward investor trust,maintain the company's good market image, and promote the stable andhealthy development of the capital market.

The Company's plans, development strategies, etc., mentioned in this reportare forward-looking statements that have not yet become facts and do notconstitute a substantive commitment from the company to investors. Investorsare advised to pay attention to the relevant risks.

Thinkon Semiconductor Jinzhou Corp.Board of Directors

March 25, 2025