On June 24, China Mobile 2022 Technology Week & Mobile Information Industry Chain Innovation Conference - Number Card Sub-forum was successfully held. This activity themed at "innovative upgrading of number cards and building of the new cornerstone of digital and intelligent ecology" focuses on various innovative upgrading technologies and application cases concerning number cards and invited industry chain partners to jointly explore new approaches and new models for the assistance of number cards in industry development and to jointly build an account ecology, an security ecology and a credit ecology in the digital and intelligent society. On the sub-forum, the White Paper for the New Generation of Super SIM Chip Technology of China Mobile was formally released. The white paper specifies relevant business functions and technical features of the new generation of super SIM cards, aiming to expand the industry ecology and boost benign development of business. Tongxin Micro subordinate to Guoxin Micro participated in to a large extent the compilation of the white paper as the supplier of the core technical proposal and provided a technical proposal for promotion and implementation of the new generation of super SIM cards. Zou Zhongren, the Standing Vice President of Tongxin Micro, systematically elaborated in his speech on the sub-forum the innovative approach of the new generation of super SIM cards and conception of the future ecology. Along with the rapid development of the mobile internet, the SIM card chips based on ROM architecture and Flash architecture have been unable to meet the market demand for increasingly diversified scenarios due to the long masking cycle and the limitation in aspects of communication interfaces, storage capacity, encryption algorithm, etc. Tongxin Micro has launched the super SIM chip based on the finance-level security architecture and has made a breakthrough in terms of the capacity, interface, etc. Based on this architecture, China Mobile developed the super SIM card in 2020. Integrated with multiple scenarios like public travel, financial payment and digital identity verification, this product can bring users with the convenient use experience of "one card integrated with multiple application functions". Zou Zhongren said some problems were found as the super SIM card was continuously promoted and more users began to use the super SIM card: the operation system could not be upgraded in a remote way, the quantity of application loaded was restricted, and the offline transaction experience was not ideal. To solve such problems, Tongxin Micro upgraded the inner chip of the new generation of super SIM card. Enlarge storage capacity The user space of the new generation of super SIM card chip has been upgraded to 2MB, multiplying three times than that of the previous 512KB. With the new generation of super SIM card, can be upgrading online , users do not need to change their card in the offline business hall, more applications can be configured, and more than 30 standard bank card applications can be loaded. Faster computation speed The CPU frequency has increased by 50%. The encryption algorithm computation speed has increased by 3 times. The standard offline transaction speed of products based on the super SIM card can be controlled within 500ms, which is equivalent to the computation level of the special edition of mobile phone with a inner chip. Richer external interfaces The rate has increased by 5 times. It is compatible with multi-way SPI, can be configured with a Bluetooth communication module plug-in to realize Bluetooth SIM, connect the channel between the mobile phone and the card, guarantee secure interaction between SIM card and mobile APP; can also be configured with a storage module plug-in to store a large quantity of user data, such as photos, biometric features, etc. Stable supply Domestic process platforms with more stable supply of materials are selected. Production, testing, encapsulation and other links about chips can be completed in China , ensuring that reliable and fast supply experience can be provided for customers. We believe that through the improvement in the above-mentioned four aspects, the new generation of super SIM card will be able to provide more applications with a larger space for their growth and build for users the usage scenarios featured with full-scenario intelligence and full-life cycle security. Next, Tong Xin Micro will make every effort to assort with China Mobile super SIM card strategy to jointly forge a high-security digital asset safe box based on the super SIM new ecosystem and promote super SIM card to become a digital life necessity of consumers in a real sense.

To continuously optimize the development environment of integrated circuit industry and encourage enterprises to improve their industry innovation capability, the National Development and Reform Commission, the Ministry of Finance, the General Administration of Customs and the State Taxation Administration jointly released the Notice on Requirements for Preparation of the List of Integrated Circuit Enterprises or Projects and Software Enterprises That Enjoy the Preferential Tax Policy in 2022. Tsing Teng Micro subordinate to Guoxin Micro was successfully included into the list and ranked among the list of national key integrated circuit design enterprises. This indicates that the R&D strength and development potential of Tsingteng Micro were highly recognized and would inject strong power into the future development of the company.   As a hi-tech enterprise, Tsingteng Micro has passed certification of the ISO environment management system, quality management system, occupational health management system and the intellectual property right system and has obtained the title of Beijing SME Featured with "Specialization, Refinement, Differentiation and Innovation". As of the end of April 2022, the Company had possessed 76 independent intellectual property rights, including 35 authorized patents for invention. Additionally, the Company possesses the professional quality management and control capability and abundant industry practice experience, has launched a series of products such as the barcode recognition module, security storage chip, etc., and has delivered more than 1.5 billion chips in total, making contributions to the acceleration of the digital transformation and upgrading in all walks of life with its technological strength.   The integrated circuit as the basic industry that supports national economic and social development and guaranteeing the national security has become a key pivot for realizing the technology-based national rejuvenation. So, China has formulated a "package" of policies to encourage development of the integrated circuit industry. The State Council printed and released the Notice on Several Policies for Promoting High-quality Development of the Integrated Circuit Industry and the Software Industry in the New Era where the primary position of the integrated circuit was established for the first time and a series of policies were specified. Carrying out preparation of the list of integrated circuit and software enterprises that enjoy the preferential tax policy is an important measure for implementing relevant tax policies as stated in this document.   The inclusion of Tsingteng Micro into this list will help further input into R&D, continuously focus on effective accumulation of independent intellectual property rights, rapidly improve the core technological strength of the enterprise and boost the company to achieve high-quality development in business. In the future, Tsingteng Micro will continue to adhere to the corporate development concept of "openness and win-win cooperation", continuously improve the innovation level of core technologies and solidly boost development and construction of the integrated circuit industry with higher-quality products and services.

Recently, Guoxin Micro released 2021 Social Responsibility Report where the values and achievements of its promotion in industry innovation progress, service in intelligent livelihood, drive in green development, strengthening in internal construction and engagement in the public welfare within the past one year were displayed in all fronts.   "While going ahead steadily, Guoxin Micro actively fulfills the corporate social responsibilities as usual, hopes to improve the brand awareness with responsibilities, advocates the harmony with the society and environment, strengthens technological innovation, participates in the public welfare, adopts lean management and makes contributions to the building of a harmonious society and realization of sustainable development with practical actions." said Ma Daojie, the President and CEO of Guoxin Micro.   Give Play to the Strength of Technological Innovation and Empower Digital Transformation of the Society   The Company adheres to "engaging in construction of a digital society and sharing the achievements of innovative development", relies on the core technology of intelligent chips, empowers construction of social infrastructure like ID card, social security card, traffic card and so on and boosts digital development of multiple industries, such as communication, auto, finance, etc. The report indicates that the Company supports Beijing Winter Olympics and other large sport events with its strength in chips, cooperates with Pango Micro to launch Logos and Logos-2 series of products to guarantee stable operation of the ice cascade screen and the ground screen on the opening ceremony of Beijing Winter Olympics and assists in building of intelligent venues.   The company actively responds the "Belt and Road" Initiative and the national strategy of "Stepping out" and actively explore overseas markets. Its subordinate company Tongxin Micro has realized rapid growth in the sales amount of telecommunication chips, and has sold security chips for financial terminals to overseas markets, leading Chinese chips to make breakthroughs and appear on the global stage and bringing a glory to China's technology-based rejuvenation.   The intelligent public rental housing management scheme of its subordinate company ICIN Technology has been successfully implemented in multiple public rental housing communities in Handan City, Hebei Province. By intelligent management means, such as real-name registration of renters, online management of lease contracts and so on, the management efficiency has been improved, and the management cost has been saved. During the epidemic prevention and control, a series of schemes were applied to many scenarios, such as community rental housing, office parks, quarantine hotels, etc., boost whole-process intelligent management of the COVID-19 disease and guarantee the safety in epidemic prevention.   Adhere to the Energy-saving and Environment protect  Concept and Boost Green Development of the Society   The "14th Five-year" Plan specifies for the first time the schedule and road map of China's realization of peak carbon dioxide emissions and carbon neutrality and that the traffic industry is an important drive for China's realization of peak carbon dioxide emissions and carbon neutrality objectives. The Company launched super auto chip series products and safety solutions for the auto industry and forged a safety driving environment for intelligent connected vehicles and new energy autos. Such products have been successfully applied in domestic first-tier auto enterprises. In addition, the Company also raised capital through the release of convertible bonds for on-board controller chip R&D project and other projects, which provided strong power for the expansion of the auto chip business.   In links of routine management, product development as well as production and manufacture, the Company always takes the green concept of energy conservation and environmental protection as the cornerstone, abides by environmental safety laws and regulations, realizes effective operation of the environment management system and sustainable improvement of the environmental performance. Its subordinate company Guoxin Jingyuan attaches importance to environmental protection during production and operation, and has put forward management and control methods for the whole process from raw material procurement to processing and production to guarantee that products will not do harm to the environment within the whole life cycle and promote harmony between the enterprise and the nature.   Stay True to the Original Aspiration of Contributing to the Society and Actively Fulfill Social Responsibilities   The Company's efforts in public welfare have extended to the education field. Over years, its subordinate company Guoxin Jingyuan has actively contacted institutions of higher learning and vocational institutes, and has promoted university-enterprise i

Recently, Guoxin Micro has ranked among the TOP 10 of Listing of 70 Domestic Listed IC Design Companies with the Greatest Comprehensive Strength released by AspenCore, a world-famous media group in the electronic technology field, relying on its leading chip design capability, high-quality products and service as well as outstanding market achievements.   AspenCore possesses a great number of media platforms, has wide influences and is respected and recognized in the industry around the world. Based on the proprietary quantitative analysis model, its analyst team ranked 70 listed IC design companies with two key indicators, i.e. "comprehensive strength" and "growth potential" to comprehensively and accurately display the operation and market performance of these IC design companies.   As one of the biggest domestic listed integrated circuit design companies, the Company is also Shenzhen Stock Exchange 100 Index Enterprise. Taking intelligent chips as its core competitiveness, Guoxin Micro focuses on digital security, high-reliability integrated circuit, power and power supply management, forges innovative super intelligent chip products, devotes itself to continuously launching system solutions and innovative terminals based on its core competence in chips to empower all walks of life and create an intelligent world.   In 2021, the Company realized a revenue of RMB 5.342 billion, up 63.35% YoY; the net profit of shareholders of the listed company was RMB 1.954 billion, up 142.28% YoY, main business indicators grew rapidly, and its competitiveness, innovation competence, influence, sustainable development capability and anti-risk capability were enhanced significantly, showing a good start of the "14th Five-year" Plan. Among core business sectors, the special integrated circuit business continued to contribute stable profits; the profitability of the intelligent security chip business was enhanced all the way, the product structure was optimized; the crystal business made a breakthrough in terms of small-size and high-frequency crystal oscillator products, and the Company was rated as State Key "Little Giant" Enterprise Featured with "Specialization, Refinement, Differentiation and Innovation".   On the capital market level, the Company's market value broke through RMB 100 billion in 2021, marking the further improvement of the brand influence. In addition, the Company successfully issued RMB 1.5 billion of convertible bonds, and steadily explored the "second growth curve". Up to now, all the projects are proceeding as scheduled. The on-board controller chip project has completed tape-out and has started the application test. The successful release of the convertible bonds has promoted the upgrading of the Company's traditional business and has enhanced the new driving force for the Company's development.   In the new year, Guoxin Micro will try to explore opportunities in crises and open a new pattern in changes of the context, firmly seize the strategic opportunity of global economic transformation, continuously promote innovative development of intelligent chips in more fields, and grow together with investors by means scientific, normalized, systematic and efficient corporate governance.