Last week, many countries announced a new round of interest rate hikes during the year. Among them, the vast number of emerging market countries and developing countries have not yet shaken off the high inflation impact caused by the excessive currency in the United States and Europe, and have been plagued by the capital outflow and debt problems caused by the radical interest rate hike in the United States. It can be said that "the house leaks overnight."

　　After the United States announced the interest rate hike again, from Western Europe to South America, from South Asia to Oceania, it became the unanimous decision of all countries to follow up the interest rate hike. On August 2nd, the Reserve Bank of Australia (the central bank) announced that it would raise interest rates for the fourth time this year, raising the benchmark interest rate by 50 basis points to 1.85%, and at the same time raising the interest rate on foreign exchange settlement balance by 50 basis points to 1.75%. On the 3rd, the Central Bank of Brazil announced the fourth interest rate hike this year, raising the benchmark interest rate by 50 basis points to 13.75%. On the 4th, the Bank of England announced that it would raise the benchmark interest rate from 1.25% to 1.75%, which is the sixth time that the Bank of England has raised interest rates since last December. On the 5th, the Bank of India announced the third rate hike this fiscal year (April 2022 to March 2023), raising the benchmark interest rate by 50 basis points to 5.4%.

　　The increasing inflationary pressure has become the number one "enemy" of many central banks. According to the data of the International Monetary Fund (IMF) in July, at least 75 central banks around the world have raised interest rates since July 2021. Some analysts pointed out that under the background of COVID-19 epidemic, high inflation and weak growth, tightening monetary policy to combat inflation will obviously slow down global economic activities. According to incomplete statistics, the average increase of interest rates in emerging market countries is about twice that in developed economies, which shows that inflation has hit them harder. If the impact of the Fed’s continuous aggressive interest rate hike is superimposed, it means that the capital outflow and debt problems it faces are more serious than those in developed economies.

　　Emerging market countries and developing countries are facing a severe capital outflow situation. The US authorities’ aggressive interest rate hike quickly pushed up the US dollar index, and venture capital in emerging market countries took the opportunity to sell assets to accelerate the outflow. On August 3rd, the data released by the International Finance Association (IIF) showed that as of July this year, emerging markets had suffered a net outflow of portfolio funds for five consecutive months, totaling more than $39 billion. This has become the longest record of continuous net outflow of funds from emerging markets since 2005, and it is also consistent with the time line when the Federal Reserve started to raise interest rates in March and continuously tightened it. According to the analysis of relevant persons in IIF, most of the motivation of recent capital flow can be attributed to the US dollar (exchange rate). Moreover, the yield of long-term government bonds in almost all developed economies has risen sharply, which has a significant impact on the preference of funds to avoid risks.

　　Capital outflow has aggravated the depreciation of local currencies in emerging market countries, causing a chain reaction. Although some central banks have tried to slow down the depreciation of their currencies, the exchange rates of many currencies against the US dollar, including the euro, Indian Rupee, Chilean peso and Sri Lankan rupee, have all hit record lows this year, as the Federal Reserve has continuously released hawks to raise interest rates and the US dollar has soared. Currency devaluation drives up the price of imported goods, which leads to the expansion of dollar-denominated debt, and causes "by-products" such as foreign exchange shortage, intensified inflation, increased fiscal deficit and political instability and social unrest in relevant countries and regions. In mid-July, the IMF warned that more than 30% of emerging market countries and 60% of low-income countries were already in or close to excessive debt. In response to the crisis, countries and regions concerned adopt austerity policies such as raising interest rates, which will further increase the cost of borrowing, and debt repayment will become a heavy burden, and corporate activities and household consumption may further decline.

　　At present, the U.S. economy has fallen into a technical recession, and the Federal Reserve’s tightening of monetary policy shows no signs of turning, which makes the rapid cooling of the U.S. economy and the downward pressure on the global economy more and more clear. Some analysts pointed out that the world economic growth, especially the emerging market countries, is subject to the monetary policy of the United States, showing the characteristics of "starting from the United States and declining because of the United States", which reflects that the United States is only willing to enjoy the "dividend" of the US dollar as the main international currency at present, but is unwilling to bear the corresponding responsibility. This is one of the chronic diseases that need to be corrected urgently in the global economic governance system. (This article Source: Economic Daily Author: Lian Jun)

Special feature of 1905 film network After five years, the sequel and the second part of the prequel series will finally meet the mainland audience this Friday. Can’t you wait to go to the cinema to see if the great director ridley scott is body of work? Don’t worry, please enjoy the following trailer first and feel the explosive tension and extreme panic in the film.

Although all kinds of alien eggs, face-hugging insects and chest-broken people are "beautiful" to the extreme,Although the "wrinkled version" of the biochemical man played by "Shark of Law" is so handsome that he has no friends, what makes me hold my breath most is the paragraph at the beginning of the trailer.

Karin, the crew member, brought her infected companions back to the Contract, and Farris, who stayed on the ship, put them in the medical warehouse to ensure the safety of the ship. For the life of more than 20 people on the whole ship, whether to sacrifice Karin or not, Farris outside the door is suffering. If you walk into the cinema, you will see that Farris failed to bear the pain of conscience and opened the door, but nearly half of the crew were killed by aliens.

Similar choices are common in science fiction films and disaster films, such as the one released not long ago.Do you want to rescue the microbiologist Hugh from the laboratory? Do you watch the engineer played by Ryan Reynolds implode by the alien Mars? In order to prevent the monster from returning to the space station, the commander chooses to sacrifice himself, and the medical officer played by Jake Gyllenhaal chooses to die with it in order to keep the monster away from the earth.

In order to protect most people, should we sacrifice the lives of a few people and control the losses to a minimum?

The iron man in the movie sent the nuclear bomb out of the earth alone for the benefit of all mankind. This great personal heroism is really admirable.But if you’re on the boat full of explosives tied by clowns, can you press that button and trade the life of another criminal for your own life? Similarly, in the first season of "Qi Pa Shuo", the debate on whether to "blow up Jia Ling". Cai Kangyong gave up his sponsor for the first time, because 63 of the 100 spectators chose to sacrifice Jia Ling to save the other 116 people.

Having said that, you may have understood the theme we are going to discuss today, that is, the famous thought experiment — —"tram puzzle" (also known as tram paradox).

A madman tied five innocent people to the tram track, and a runaway tram was coming towards them. You can pull the switch and let the tram go to another track, but the madman tied a man to the other track. Considering the above situation, will you pull the switch?

I believe that most people will choose to pull, because if we have to make a choice, it is definitely better to sacrifice one person than five.

If we change the situation, the runaway tram rushes towards five innocent people, but there is no switch and no second track. When you pass by the bridge and see this scene, the only way to stop the tram is to push the fat man next to you off the bridge (we don’t discriminate against fat people, blame the philosopher Judith Tom), let him get stuck in the track and stop the tram. If you can do it, use the fat man’s life to save five other people.

In this situation, I believe that most people can’t get off the bridge. It is the same as saving five lives with one life. Why can’t we accept the second situation? What is the difference between it and the first situation?

Is it because in the second situation, Mr. Fat was pushed down by ourselves, while in the first situation, we just pulled the switch and didn’t personally kill the poor man tied to the track?

So if Mr. Fat stands on a trap door and you control his fate through a mechanism similar to a switch, can you easily pull down the switch?

You think the situation we gave is too extreme. If in real life, there must be a solution to kill two birds with one stone. Just like in "The Dark Knight", passengers on both ships didn’t press the button, but there was no explosion.

Indeed, the "tram puzzle" was put forward by the British philosopher Filipa Foote in the 1960s, which was used to explore the dilemma in the field of ethics (also called moral philosophy). Later, it was extended by the American philosopher Judith Tom and appeared in several versions.

But coincidentally, in Los Angeles in 2013, the "tram problem" actually came true. It is incredible that even the numbers are exactly the same:In the face of the runaway tram, Ms. Jones pulled the switch in order to save five lives, but it caused the death of Mr. Farley on another track, so Ms. Jones was sued in court. So do you still think that the "tram problem" is just a thought experiment? Is Ms Jones guilty or innocent?

Let’s go back to the question of "the tram and the fat man". What makes us willing to sacrifice one person to save five people in the first situation, but unwilling to sacrifice Mr. Fat to save those five people in the second situation?

Because when pulling the switch, we didn’t mean to kill that person. He was the result that we had to accept in order to save most people, but Mr. Fat was deliberately pushed off the bridge by us, and he became a tool for us to save people.

This involvesSt. Thomas Aquinas’s "double effect principle" means that while hoping to get good results, it is often impossible to avoid bad results, that is, "collateral damage".For example, bombing the enemy’s military fortress can quickly end the war and avoid the loss of lives on a larger scale, but bombing often comes with the death of innocent civilians around, but this has to be accepted.

The person in the first situation is to save the collateral damage of five lives, but the "double effect principle" does not apply to the second situation, because Mr. Pang’s death is not necessary to accept, and he is regarded as a tool for us to achieve our goals. This kind of instrumentalization of human beings is unacceptable to morality in any case, even if five lives are lost. Because of moral requirements,Bad effects should not be used as a tool to achieve good results..

Why can’t humans be used as tools? This involves two schools of thought in the field of ethics — —"effect theory" and "obligation theory".

Bentham, a utilitarian philosopher.

Effect theory, also known as utilitarianism, is represented by British philosophers Bentham and Mill, who believe thatThe moral value of behavior is only measured by the result of behavior.To put it simply, if an action can maximize the well-being and minimize the harm of the people concerned, it should be done. As most of us hold, the idea that "one death is better than five deaths" comes from the benefit theory.

Although the benefit theory is widely accepted by most people, it cannot be a universal value, because it often means the tyranny of the majority over the minority. For example, in 1884, the "Queen of England v. Dudley and Stephens" shocked the world:

An English cruise ship, Margaret, was shipwrecked, and four crew members escaped to the life raft. After 19 days of suffering without water and food, 18-year-old Parker couldn’t help drinking seawater and became unconscious. The other three crew members took the opportunity to kill him and survived on his blood and meat until the 24th day before being rescued. After returning to England, they were tried for murder.

This kind of cannibalism for survival is definitely unacceptable to morality, so the "deontology" represented by Kant emphasizes that,The moral value of behavior lies not only in its result, but also in the behavior itself.. That is to say, no matter how much goodness can be produced, killing, torture, stealing and other acts are unconditionally wrong, and their value cannot be enhanced through the calculation of costs and benefits. This has safeguarded our human dignity,Prevent our interests or lives from being sacrificed because of the public interest..

Philosopher Kant

The "deontology" has also been implemented in law. For example, the laws of many countries expressly stipulate that evidence obtained by improper means cannot be used as evidence in court. For example, the testimony obtained by extorting a confession by torture, even if it is correct, cannot be used as evidence to convict the defendant.

Therefore, according to the principle of "deontology", the above-mentioned Ms. Jones in Los Angeles, although heroically saved five people, was found guilty by the court, although it was a virtual sentence of three reprieves. Because the judge thinks that Ms. Jones has no right to decide the life and death of others instead of God, and she has no right to deprive Mr. Farley of his right to live.

If this is the case, what should we do in a similar situation, and what is the right and moral way to do it? Should we just stand by and watch?

Let’s consider this situation. Suppose you plan to drown your brother who shares the inheritance with you in the swimming pool, but when you come to his house, you find that he has a sudden heart attack in the swimming pool, so you let him drown slowly.The result is the same as you planned, but obviously you are less condemned legally and morally. Why?Because killing is worse than letting people die, because killing must also include letting people die.

But this does not mean that it is right to let anyone die. In the face of five lives in orbit, our inaction will also receive moral condemnation and legal sanctions. What if it’s yourself or your relatives and friends on the track? Can you really do nothing?

In fact, up to now, the "tram problem" is still unsolved, but this does not mean that this thought experiment is meaningless, because it always reminds us to be alert to "utilitarianism" and always remember that people are the end, not the means, just as Kant said: "No matter when you act, you should not only regard yourself as an end, but also the qualifications of others as human beings, and never use them just as a means."

References:

Thomas cathcart’s Tram Problem

Yves Bossart, If there is no today, will there be yesterday tomorrow? 》

Michael Sandel, Harvard Open Class — — Fairness and Justice "

　　CCTV News:On April 11th, the National Internet Information Office began to solicit opinions from the public on the Administrative Measures for Generative Artificial Intelligence Services (Draft for Comment). According to experts’ analysis, the Draft for Comment puts forward multi-level supervision opinions, emphasizes the protection of rights and interests, and prevents "abuse" behavior, which contributes to the healthy development of generative artificial intelligence technology in China.

　　There are 21 articles in the Exposure Draft, which defines "generative artificial intelligence" as a technology that generates text, pictures, sounds, videos, codes and other contents based on algorithms, models and rules, and clarifies that "the state supports independent innovation, popularization and application, and international cooperation of basic technologies such as artificial intelligence algorithms and frameworks, and encourages the priority use of safe and reliable software, tools, calculation and data resources".

　　According to the "Exposure Draft", the provision of generative artificial intelligence products or services should comply with the requirements of laws and regulations, respect social morality, public order and good customs, and prohibit illegal acquisition, disclosure and use of personal information, privacy and trade secrets. Before using generative artificial intelligence products to provide services to the public, it is necessary to report to the national network information department for safety assessment, and be responsible for the legality of the pre-training data of generative artificial intelligence products and the source of optimized training data. Pre-training and optimized training data for generative artificial intelligence products shall comply with the requirements of laws and regulations, and shall not contain any content infringing intellectual property rights. If the data contains personal information, it shall obtain the consent of the subject of personal information, and ensure the authenticity, accuracy, objectivity and diversity of the data.

　　On the user side, the user should be required to provide real identity information in accordance with the regulations, and the service should be suspended or terminated if violations of laws and regulations, business ethics and social ethics are found, including engaging in online speculation, malicious posting and comments, creating spam, writing malicious software, and implementing unfair business marketing.

　　With the hot market of ChatGPT, the public’s awareness of generative artificial intelligence technology is constantly improving. Up to now, China Internet companies such as Baidu, Huawei, Tencent, Ali, JD.COM and 360 have deployed generative artificial intelligence services. The rapid development of technology has put forward higher requirements for regulators and business ecology, and also brought greater challenges.

　　According to industry insiders, the publication of the "Draft for Comment" means that the pace of standardization in the AI industry is accelerating. While delineating the boundaries, it also leaves ample room for development and is committed to avoiding the dilemma of "pollution first and then governance". With more applications landing, some potential risks will be recognized and exposed, and the regulatory measures will be more "symptomatic". The Draft for Comment is only the first step.

"The Informer."

Nursery "Talk about love and dance" Zhang Jiahui "Smell the fragrance and know the woman"

　　　　　　　 The 2010 most affectionate police and bandit blockbuster "Informer", jointly produced by Huayi Brothers, Emperor Film, and Yindu Organization, and jointly created by the original cast of the Golden Horse and the Academy Awards in 2009, was first exposed on August 2, allowing audiences to incarnate as "informants" and explore their own ultimate version of "Informer" from the "clues" of the stills.

Zhang Jiahui Nursery’s "Informer" Continues Its Front

　　　　　　　 The first exposure of the scene is the opposite play between the six-star actor Zhang Jiahui and the temperament actress Nursery. The two have a good relationship through "Witness", and they have joined hands for the second time in "Informant", and they are already emotionally familiar. Zhang Jiahui laughed and said that playing husband and wife for the second time is a delicate fate, and I am very happy to renew the relationship with her. Zhang Jiahui also praised the nursery’s acting skills as more mature than "Witness". "This time in" Informant ", the actors have more inner scenes, and everyone is burdened with different burdens. It is not easy to master the role, and it takes a lot of thought to understand. I can see that she is very hard-working, and she is willing to ask others humbly, and she is a very malleable actor."

　　　　　　　 The nursery also praised Zhang Jiahui’s dedication, "I really appreciate his professionalism and attitude, and I also regard him as my learning object." The two of them had such a tacit understanding, and the director was naturally reluctant to "let down" this relationship. He simply slowed down in the fast pace of the movie, and let the two of them talk about love through dance, express their feelings and passion with their bodies, and interlock their eyes and ten fingers tightly. The affectionate index is directly comparable to that of Hollywood classics. In that moment, the hurried time and space faded from irritability, in exchange for the beauty of silence.

Nursery "Talk about love and dance" Zhang Jiahui "Smell the fragrance and know the woman"

　　　　　　　 The humble Mr. Cheung laughs that he is "as stiff as a robot, remembering the dance steps in his mind but forgetting the dialogue. It is always difficult to connect the two things." He also feels sorry for his wife in the play, saying that he is "often half a beat slower, stepping on the instep of the nursery, causing her to have a big shoe print on her foot, which is really embarrassing." But the nursery clearly disagrees with him. She readily says that "Jiahui shouts hard on the surface, but in fact it does not affect his performance. When others are resting, he practices hard, and every detail is perfect." For her, she was also very happy to be able to use her dance expertise in "The Informer", and she liked this scene even more. "I like this scene the most in the movie, because the husband and wife dance in love, which is really romantic."

　　　　　　　 Although Zhang Jiahui claimed that the dance drama was sad and the action drama was sad, he still used his delicate acting skills to prove that the name of the best actor was not a lie. His gentle embrace, affectionate gaze, and complex emotions made Jiahui dance this dance vividly, and his personal style was like that of Al Pacino. However, he was still unwilling to be arrogant and showed the elegance of a gentleman’s atmosphere in silence, in line with the affectionate and righteous but implicit and low-key style of "The Informer".

　　　　　　　 Watch the stills of "The Informer" and create your own version of the ultimate "The Informer". On August 26, Hong Kong, mainland China, made a strong debut at the same time. The most emotional police and bandit blockbuster in the summer of 2010, emotional detonation, ready to go.

The contents of the management comments of Steward’s 2023 annual board of directors are as follows:

　　I. Discussion and analysis of business conditions

　　During the reporting period, the company adhered to the development direction of "smart security+smart phone+automotive electronics", gave full play to the competitive advantage of efficient research and development, further optimized and improved the product matrix, and successfully built the second pole growth curve of high-end smart phone products, achieving a total operating income of 2,857,343,300 yuan, an increase of 15.08% over the previous year; The net profit attributable to the owners of the parent company was 14,215,500 yuan, an increase of 96,963,500 yuan over the same period of last year, turning losses into profits.

　　Among them, the income of the smart security industry was 1,671,330,800 yuan, an increase of 0.41% over the same period of last year, accounting for 58.49% of the main income; Smartphone revenue was 891,787,600 yuan, an increase of 50.40% over the same period of last year, accounting for 31.21% of the main revenue; Automotive electronics revenue was 294,224,900 yuan, an increase of 30.45% over the same period of last year, accounting for 10.30% of the main revenue.

　　In the field of smart security, the company continued to maintain its leading position in the global market with perfect product matrix, excellent R&D strength and quick response ability, and achieved steady business growth during the reporting period. In the field of smart phones, the cooperation between the company and existing customers in all levels of products has been deepening, and the market share has continued to increase. In particular, a number of XS series 50-megapixel products have been successfully mass-produced. These products are mainly used in cameras such as main camera, wide-angle camera and telephoto camera of high-end flagship mobile phones, and the unit price is relatively high, which has opened up a second growth curve for the company’s smart phone revenue. In the field of automotive electronics, the company has continued to deepen cooperation with a number of mainstream car manufacturers, and the ability and influence of industry solutions have been significantly improved, and the number of covered models has increased significantly, laying a solid foundation for future sustainable development.

　　During the reporting period, the cooperation between the company and strategic partners in the supply chain was further deepened, the scale of cooperation increased significantly, and the production technology became more mature, thus further improving the product yield, and the cost optimization effect was outstanding, which promoted the overall gross profit margin level of the company to improve quarter by quarter. The company will continue to work closely with various suppliers to continuously improve the resilience and delivery capacity of its supply chain. In addition, the company’s destocking plan was implemented smoothly and the operating cash flow was good; At the same time, the company uses derivatives to control the risk of exchange rate fluctuations, and exchange losses are effectively controlled. The overall financial cost has dropped significantly.

　　During the reporting period, the company won many awards covering IC design, image sensors, electronic components, Internet of Things enterprises and other fields, which fully demonstrated the company’s technological leading edge and R&D strength, representing the high recognition of the company’s R&D strength from all walks of life. The key awards are as follows: Shanghai Economic and Information Commission’s "Shanghai Specialized Small and Medium-sized Enterprises"; Zhangjiang National Independent Innovation Demonstration Zone 2022 "Zhangjiang Star" leading enterprise; Shanghai IC Industry Association "Top Ten Sales of IC Design Industry in Shanghai in 2022"; The company’s product SC1630LA won the "China IC Billboard-Outstanding Innovative Product Award of the Year" awarded by the Semiconductor Investment Alliance; The 5MP RGB-IR global shutter image sensor won ASPENCORE“2023 Global Electronic Achievement Award-Sensor of the Year "and" 2023 China IC Design Achievement Award-Top Ten China IC Design Companies "; Super-starlight 8MP image sensor /SC880SL with large target surface won the "2023CPSE Expo Jinding Award" at the 19th CPSE Expo. ADAS won the "18th China Core Excellent Technological Innovation Product in 2023" jointly awarded by China Electronic and Information Industry Development Research Institute and CCID by applying 8.3MP image sensor /SC850AT; The 4K super-starlight night vision full-color image sensor SC850SL won the award at the 2023 China International Public Safety Products Expo held by China Security Products Industry Association."Innovation Product Excellence Award".

　　Looking forward to 2024, the company will continue to maintain R&D investment, optimize product matrix, improve product performance and user experience, strengthen cooperation with core customers, expand cooperation areas, and actively explore new market opportunities, so as to further consolidate and enhance its leading position in smart security, smart phones and automotive electronics, and achieve more stable and sustainable development.

　　II. Description of the company’s main business, business model, industry and R&D during the reporting period.

　　(a) the main business, main products or services.

　　The company’s main business is the research and development, design and sales of high-performance CMOS image sensor chips. As a CMOS image sensor product enterprise dedicated to providing multi-scene applications and full-performance coverage, the company’s products have been widely used in many high-tech application fields such as security monitoring, machine vision, smart phones, automotive electronics, etc., and have helped the industry to develop in a more intelligent and information-based direction.

　　1. Technological advantages empower smart security high-end products and continue to lead the industry.

　　In 2023, the company’s smart security industry revenue was 1,671,330,800 yuan, an increase of 0.41% over the same period of last year, accounting for 58.49% of the main revenue. According to TSR statistics, in 2020 and 2021, the company ranked first in the global security CIS shipments. In 2022, the company continued to rank first in the global security CIS market with a market share of 33.3%.

　　According to the latest data of YOLE, in 2022, the global CIS market is about 21.3 billion US dollars, of which the security market accounts for 6% and the market size is about 1.241 billion US dollars. As the leading enterprise of global intelligent security CIS, the company has been focusing on the development of visual imaging technology and CIS products in the field of security monitoring since its establishment, exploring more potential needs of security customers, and using high-performance technology products to accurately reach customers’ practical applications. The company continues to exert its strength in the high-end field, and has successfully launched the security cutting-edge product portfolio such as ProSeries full-performance upgrade series, AISeries high-level imaging series and SLSeries super-starlight series to better meet the intelligent stage of security monitoring.

　　Prior to this, security monitoring has experienced three stages: simulation, networking and high definition. Driven by the iterative update of emerging technologies, the security industry is developing rapidly in the direction of digitalization, intelligence and ultra-high definition. Intelligentization has become the mainstream trend of the development of security industry. With the transformation of security monitoring to intelligence, the AI chip embedded in the device enables the camera to carry out structured processing, intelligent calculation and analysis and image recognition on video data, which promotes the transition of video monitoring equipment from passive monitoring to active recognition, and the realization of intelligent function needs to be based on high-definition image. According to TSR report, CIS in the field of security application needs resolution ranging from VGA (300,000 pixels) to 12 million pixels, and its center of gravity is gradually moving towards high resolution. The demand for 8 million pixels is increasing at an annual growth rate of 85% year by year. Therefore, high resolution has become the development trend of high-end security image sensor products.

　　In 2023, the company introduced a new product SC880SL, which is the first 1/1.2"8MP image sensor product of the company. By enhancing the photosensitive performance of the product through the large target surface, it can still achieve excellent night vision imaging effect even in ultra-low illumination environment. In addition, the company has also launched several new products to upgrade the AI series CMOS image sensors, which combine the advantages of better night vision full-color imaging, high-temperature imaging and low power consumption, and can better empower smart wireless cameras and multi-camera solutions such as home IPC and AIoT terminals, and successfully open the road of iterative upgrading of AI series products.

　　At the same time that security monitoring has started the intelligent stage, machine vision technology is also becoming the core driving force of modern industry. With the commercialization of AI and 5G technologies, machine vision is no longer limited to industrial applications. Emerging downstream application markets such as drones, sweeping robots and AR/VR have injected new vitality into the development of machine vision industry. With the deepening of automation, digitalization and intelligence in the field of industrial manufacturing around the world, machine vision will have a wider development space.

　　According to the data of MarketandMarkets and GGII, the global machine vision market will be 80.40 billion yuan in 2021. It is predicted that the global machine vision market will grow at a compound annual growth rate of 13.2% from 2022 to 2025, and the global machine vision market will reach 127.61 billion yuan in 2025. In the emerging field of machine vision, the trend of "machine vision replacing manual identification" has brought great growth space for the industry. As a standard component in the upgrade process of "machine vision replacing manual identification", CMOS image sensor has ushered in a new opportunity in the AI ​ ​ era.

　　As a pioneer and leader in the field of machine vision, the company’s machine vision products have significant technical influence and market position in the world. The products have been widely used in industrial manufacturing and logistics fields, such as intelligent manufacturing, intelligent screening and intelligent logistics code reading, as well as emerging application fields such as unmanned aerial vehicles, sweeping robots and AR/VR, and have maintained close cooperation with customers such as DJI and Hikon Robot. According to the latest data of TSR, in 2022, the company’s market share in UAV and QRC readers ranked first in the world, and its share in the global consumer UAV obstacle avoidance market was about 90%.

　　According to the actual demand for intelligent image processing in the field of industrial CIS, the company has launched three kinds of rich product matrices: area array, intelligent transportation system (ITS) and linear array, covering all kinds of industrial inspection scenes and mainstream industrial intelligent scenes such as industrial code readers, AGV navigation systems and 3D scanners, providing diversified, accurate, stable and reliable solutions for customers in different fields. According to the latest data of YOLE, in 2022, the global CIS market scale was about US$ 21.3 billion, of which industrial applications accounted for 4%, and the market scale was about US$ 865 million, an increase of 23.9% compared with 2021. In the industrial CIS market, the company has ranked second in China.

　　In the future, the company will continue to focus on the breakthrough of high-end core technologies and continuously introduce more high-performance machine vision application products. This will not only bring continuous innovation momentum to the company’s high-end product matrix, but also help accelerate the domestic substitution process of high-end CIS.

　　2. XS series high-end products were shipped on a large scale, and the business flourished, opening up a second growth curve.

　　According to the latest data of YOLE, in 2022, the global CIS market scale is about 21.3 billion US dollars, and the largest downstream field is smart phones, accounting for 64%, with a market scale of about 13.452 billion US dollars. Therefore, the field of smart phone CIS is also an important field of business layout of major CIS manufacturers.

　　In 2023, the overall market scale of mobile phone CIS tends to be stable, mobile phone terminals enter the stock market, and high-end smart phone consumers demand higher and higher shooting performance of cameras. Under this trend, CIS, as the core imaging device, has become a key selling point for major mobile phone manufacturers to enhance their experience, and the market structure of smart phone CIS is changing rapidly.

　　In 2023, the company’s smart phone business flourished, and the smart phone CIS products covered the mainstream demand of the current mobile phone market. The product resolution was from 800,000 pixels to 50 million pixels, and the annual revenue was 891,787,600 yuan, an increase of 50.40% over the same period of last year, accounting for 31.21% of the main revenue.

　　In view of the high-end flagship machine product track, several XS series high-end products launched by the company for the main camera and auxiliary camera (including telephoto and wide angle) of the flagship have been shipped on a large scale, which not only opened up a second growth curve for the company’s revenue, but also marked the company’s remarkable progress in catching up with the high-end product lines of overseas leading manufacturers, thus further enhancing the company’s market position and brand influence.

　　With the increasing number of smart phone cameras, it is very important to balance the performance and cost of smart phone CIS.

　　Therefore, in the mass computer and flagship machine market, CIS chips show completely different development trends. According to IDC statistics, among Android phones, the shipments of low-end models below $600 accounted for over 90% in 2022. Therefore, the rear camera of low-end models with large value is the main market focused by CIS manufacturers. TrendForce believes that the future upgrade direction of smart phone CIS will focus on the optimization of CIS structural design. By improving the structure and materials of photosensitive elements, the performance of photosensitive elements will be further improved, and the image processing algorithm will be optimized and upgraded. The AI algorithm will break through the hardware limitation, further improve the clarity and dynamic range of images, reduce noise and improve the imaging quality.

　　In view of the CIS market of mainstream smart phones, the company has also carried out in-depth technical cooperation with domestic fabs, and adopted technological innovations such as single-chip integration to launch high-resolution products that are more cost-effective and better meet the needs of mainstream smart phones. At the same time, the company continuously improves the dynamic range of products, reduces noise, optimizes power consumption and other performances, further improves the differentiated product matrix, brings excellent imaging performance to the smart phone imaging system, and continuously enhances the company’s market position and brand influence in the smart phone field.

　　3. Driven by intelligent driving, the automotive electronics business has a strong growth momentum.

　　In 2023, the company’s sales revenue in the automotive electronics field was 294,224,900 yuan, an increase of 30.45% over the same period of last year, accounting for 10.30% of the main revenue.

　　According to the latest data of YOLE, in 2022, the global CIS market scale was about US$ 21.3 billion, of which automotive electronic applications accounted for 10%, and the market scale was about US$ 2.186 billion, an increase of 27.7% compared with 2021. With the irreversible technical development trend of automobile intelligence and autonomous driving, the automobile electronics market has become a new growth point of CIS market. According to the data of Qunzhi Consulting, it is estimated that the global vehicle CIS shipments will reach 350 million in 2023, a year-on-year increase of 9%; Driven by demand such as ADAS and autonomous driving, CAGR of automobile CIS shipments is expected to reach 13.17% from 2022 to 2028. At present, the mainstream resolution of vehicle CIS is still 1.2 million pixels or less. With the continuous evolution of autonomous driving, the demand for more than 2 million pixels will increase rapidly year by year. The fastest growth rate between 2022 and 2028 is expected to be 5 million and 8 million high-definition pixels, with a compound growth rate of 80%.

　　The company has released more than 10 products for three major application scenarios: vehicle image, perception and cabin, covering the application requirements of automotive perception and image segmentation with 1MP~8MP resolution. Among them, in 2023, the company newly released a new product, SC533AT, which is a 5MP high-resolution RGB-IR global shutter image sensor. This back-illuminated global shutter image sensor integrates five performance advantages: high resolution, high shutter efficiency, low noise, excellent color performance and excellent near-infrared sensitivity, and brings more accurate and reliable in-cabin for high-end driver monitoring system (DMS) and passenger monitoring system (OMS).

　　As one of the few manufacturers in China that can provide CIS solutions for vehicle regulations, the company’s on-board CIS products have been mass-produced in the main car factories such as (), SAIC, Dongfeng Nissan, Great Wall, Ssangyong, Zero Run, Chery, GAC, Jiangling and Geely. According to YOLE’s latest report, in 2022, the company has ranked fourth in the world and second in China in the vehicle CIS market. With the continuous development of automobile intelligence and autonomous driving, and the increasing front-loading rate of panoramic view, automotive electronics business will also become a powerful engine to help the company’s long-term sustainable development.

　　In the future, the company will continue to focus on the development of three application scenarios, namely, in-vehicle image, perception and cabin, further enrich the ATSeries product matrix, and promote the intelligent development of automobiles and the penetration and popularization of intelligent driving technology by relying on its own core technology and product performance advantages under the strict automobile product development process system.

　　(II) Main business models

　　The company’s business model belongs to Fabess mode. The company focuses on the research, development, design and sales of CMOS image sensors, and entrusts the main production links such as wafer production and packaging to external enterprises. However, considering the convenience of final product debugging and quality control, the company has completed most of the final test (FT test) links by its own test plant, and the company has no wafer production line and packaging plant with huge investment. The company has an independent and complete R&D, procurement, production and sales system, and independently conducts business activities according to its own situation, market rules and operation mechanism.

　　(3) the industry situation

　　1. The development stage, basic characteristics and main technical threshold of the industry.

　　(1) Global semiconductor and integrated circuit industry

　　The global semiconductor industry has a certain periodicity, and the boom cycle is closely related to macro-economy, downstream application demand and its own production capacity inventory. According to the preliminary statistics of Gartner, a world-renowned market research institution, the global semiconductor revenue in 2023 was US$ 533 billion, 11.1% lower than that in 2022, showing a cyclical downward trend again. Some semiconductor terminal markets began to show weakness, especially those affected by consumer spending. Rising inflation, taxes and interest rates, and higher energy and fuel costs are putting pressure on consumers’ disposable income. This is affecting the expenditure of electronic products such as personal computers and smart phones. At the same time, Semiconductor Industry also predicted that the continued strong growth of the automobile market and the Internet of Things (IoT) will help the semiconductor market recover. The risk of global economic recession in 2023 is decreasing. It is preliminarily predicted that the semiconductor market will continue to recover in 2024, and the terminal market will grow moderately, with a growth rate of 5% to 10%.

　　(2) China’s semiconductor and integrated circuit industry

　　In recent years, China’s semiconductor and integrated circuit industry has experienced rapid development, the demand for the industry has expanded rapidly, and the policy support has continued to be favorable. With the continuous transfer of downstream industrial chains such as smart phones, new energy vehicles and Internet of Things to China, the upstream integrated circuit design industry has gained a lot of market opportunities. According to the statistics of China Semiconductor Industry Association, the sales scale of China’s integrated circuit design industry has increased from 55 billion yuan in 2010 to 577.4 billion yuan in 2023, with an average compound annual growth rate of about 21.6%, which is higher than that of the global integrated circuit design industry in the same period, but the growth rate is still 8.5% lower than that in 2022. It is estimated that by 2025, the scale of China’s IC design industry in the global market is expected to further increase to 16%.

　　(3) Market structure and development trend of 3)CMOS image sensor.

　　Thanks to the widespread popularity of multi-camera phones and the rapid development of security monitoring, smart car cameras and machine vision, the overall shipment and sales of CMOS image sensors have been expanding. According to YOLE statistics, the global CMOS image sensor market will increase to 28.8 billion US dollars in 2028, with a compound growth rate of 5.1% from 2022 to 2028. Smartphone is the largest downstream application in the current market, with sales accounting for 63.2% in 2022. In the second half of 2023, the demand for mobile phones recovered moderately, and the industry’s destocking came to an end. The breakthrough of new products by domestic manufacturers continued to exceed expectations. At the same time, with the continuous development of smart cars and the increasing penetration rate of ADAS, the automobile market is expected to maintain a high growth rate in the next five years. Security monitoring, industry, medical care and other fields will also bring incremental markets.

　　2. Analysis of the industry position of the company and its changes.

　　The company’s products have been widely used in smart security fields including network cameras, analog closed-circuit cameras, home care cameras, smart doorbells, drones, sweeping robots, industrial cameras, smart transportation, face recognition, etc. Intelligent vehicle-mounted driving recorder, vehicle-mounted panoramic and rear-view camera, driver monitoring system, passenger monitoring system and other automotive electronic application fields; Smart phones, tablets, smart homes, smart health and other consumer electronics applications are promoting the development and progress of smart life.

　　Through the comprehensive layout of FSI-RS series, BSI-RS series and GS series, the company is technology-driven, meeting the rigid requirements of industry application fields for excellent imaging in low-light environment, maintaining high performance of chips in high-temperature working environment, showing bright and dark details in strong light contrast environment, shooting fast-moving objects without distortion/tailing, and shooting high-frame-rate video. It has the core advantages of competing with leading CMOS image sensor manufacturers such as Sony, and covers all levels of high, medium and low-end.

　　The company has become a leading supplier of CMOS image sensors in the fields of smart security, smart phones and automotive electronics. According to TSR statistics, the company ranked first in the global security CIS shipment from 2020 to 2022, with a market share of 33.3% in 2022. At the same time, according to YOLE’s latest report data, in 2022, the company ranked fourth in the world and second in China in the vehicle CIS market; Ranked fifth in the world and third in China in the CIS market of the Internet of Things; In the industrial CIS market, it ranks sixth in the world and second in China.

　　3. The development of new technologies, (), new formats and new models during the reporting period and the future development trend.

　　In 2023, with the company’s efficient R&D efficiency and the rapid expansion and close integration of downstream application customers, the smart phone business flourished and the revenue achieved substantial growth. It is mainly used for the large-scale shipment of XS series high-end products, which are mainly taken by the flagship machine (including telephoto and wide angle). This not only opens up a second growth curve for the company’s revenue, but also marks that the company has made remarkable progress in catching up with the high-end product lines of overseas leading manufacturers, thus further enhancing the company’s market position and brand influence.

　　In 2023, the smart security market experienced demand fluctuations that were first suppressed and then promoted. In the face of the complex and changeable industry environment, the company has continuously upgraded its products and expanded its customers and new application fields through continuous R&D investment, further consolidating its leading position in the field of smart security and maintaining stable business growth.

　　In 2023, the company’s automotive electronics sales revenue achieved year-on-year growth. As one of the few manufacturers in China that can provide CIS solutions for vehicle regulations, the automotive electronics business has become a strong support for the company’s long-term sustainable development under the trend of continuous development of automotive intelligence and autonomous driving technology and the background of increasing front-loading rate of panoramic view of automobiles.

　　In the future, the company will continue to promote technological innovation and market insight, continuously optimize product matrix, strengthen cooperation with core customers, expand cooperation areas, actively explore new market opportunities, continuously improve product performance and user experience, increase market share, and achieve steady growth in turnover.

　　(IV) Core technologies and R&D progress

　　1. Core technologies and their advanced features and changes during the reporting period.

　　2. R&D achievements obtained during the reporting period

　　During the reporting period, the company applied for 169 new intellectual property projects (including 89 invention patents), and 116 intellectual property projects were authorized (including 16 invention patents). By December 31st, 2023, the company had obtained 424 patents (including 98 overseas patents).

　　3. R&D investment table

　　4. Projects under study

　　5. R&D personnel

　　6. Other explanations

　　Iii. Analysis of core competitiveness during the reporting period

　　(A) analysis of core competitiveness

　　1, close to customer demand for technological innovation ability.

　　Adhering to the vision of "let people see and know the world better", the company adheres to the concept of "taking customers as the core, and is committed to providing high-quality and intelligent video solutions", and has developed a series of distinctive core technologies closely following the needs of customers. During the reporting period, the company deeply explored the needs of customers in emerging image sensor applications such as smart security, smart phones and automotive electronics, and developed diversified and differentiated product series, covering a full range of high, medium and low-end products to meet the needs of customers with different positioning.

　　2, efficient chip research and development capabilities

　　The company has always adhered to the product development concept of "R&D generation, mass production generation and pre-research generation", and achieved high chip R&D efficiency under the blessing of "multi-pronged" supply chain and upstream and downstream resource system. Efficient R&D capability enables the company to quickly respond to changes in customer needs, so that its terminal products can better adapt to the complex and changeable market environment and achieve a win-win situation with customers.

　　3. Solid intellectual property system barriers

　　The R&D investment of the company is relatively high. In 2023, the total R&D investment was 286,154,565.86 yuan. In order to consolidate the technological leadership of existing products and develop new technologies and products, the number of R&D personnel accounted for 47.84% of the total number of the company.

　　By December 31st, 2023, the company had obtained 424 patents (including 98 overseas patents).

　　4. Outstanding R&D team

　　Under the leadership of core technicians Dr. Xu Chen, Dr. Mo Yaowu and Ma Weijian, the company has built an outstanding R&D team through long-term technical cultivation and personnel training. Dr. Xu Chen, the founder, has more than 20 years of research and working experience in the field of CMOS image sensors, and plays a leading role in solving the noise problem in the design of high-quality CMOS imaging systems, improving the sensitivity and night vision effect, and developing stacked global shutter image sensors. Dr. Mo Yaowu has worked in semiconductor related fields for nearly 30 years, pushing the industry to introduce a column parallel readout architecture with high performance, low power consumption and low noise, and presided over the design of many mainstream CMOS image sensors. Mr. Ma Weijian has nearly 20 years of experience in chip research and development and industrialization, and has played an important role in promoting the technology and industrialization of many image sensors with high sensitivity, high signal-to-noise ratio and near-infrared sensitivity enhancement.

　　The company attaches great importance to the introduction and cultivation of talents, regards the ability of the company’s R&D and technological innovation team as the company’s core resources, and has recruited technical talents at home and abroad, and has established an excellent R&D team. By December 31st, 2023, the company had 343 R&D personnel, of whom 192 R&D personnel had master’s degree or above.

　　5. Strong customer resource system

　　With long-term industry accumulation and outstanding product quality, the company has accumulated rich customer resources. The products are not only used in the terminal products of brands such as (), Yushi Technology, DJI Innovation, (), Netease Youdao, Xiaomi Technology, OPPO, VIVO, Samsung Electronics, BYD, SAIC, GAC, Dongfeng Nissan and Zero Run, but also accumulated many small and medium-sized customer groups as the support, forming a strong customer resource system.

　　The company has established a close cooperative relationship with the end customers, deeply participated in the customer’s product scheme design, and was able to collect the customer’s product demand information in time, always keeping pace with or even ahead of the customer’s increasing demand in product design, and quickly implementing it in product customization and development. According to the customer’s continuous updating demand, through the rapid iteration mode of "small steps and quick running" and convenient product upgrade channels, we can launch new products with better performance and better meeting the customer’s needs in a short period of time to serve customers. In the production process, the company independently completes the final product test, which can not only export the terminal that controls the product quality, but also make fine adjustments according to the characteristics of the company’s products to achieve the best customer experience. The company’s technical support and after-sales service team with strong professional ability and quick response can quickly solve the problems encountered by customers before and after sales, assist customers to quickly complete mass production of products, and solve the problems in the use of products in time to create a good customer experience.

　　Through long-term, stable and efficient cooperation, the company has formed a good reputation among terminal brand customers, cultivated strong customer stickiness, and ensured the stability of the company’s performance.

　　6. Stable supply chain cooperation.

　　Under the current industrial structure, supply chain is an important link to ensure the stable development of semiconductor and integrated circuit design companies. The company’s product design is deeply integrated and optimized with the production process of the wafer factory to meet the needs of scene adaptability in multiple application fields. Through technical cooperation, the company has established close strategic cooperation relations with wafer factories such as TSMC, Hefei Jinghe and Samsung Electronics. In addition, we have maintained good cooperative relations with (), (), Keyang Semiconductor and other packaging and testing factories.

　　The company effectively integrates its own technical advantages with the supplier’s production capacity and strategic needs. Through technical cooperation, it achieves product and process breakthroughs while enhancing supplier stickiness. The company has adopted a multi-regional supply chain layout strategy, and established strategic cooperation platforms for wafer foundry and packaging and testing in Chinese mainland, Taiwan, China, South Korea and other countries and regions, fully and efficiently integrating supply chain resources in a "multi-pronged" way to provide a strong guarantee for production capacity.

　　(II) Events that have seriously affected the core competitiveness of the company during the reporting period, impact analysis and countermeasures.

　　Fourth, risk factors

　　(A) Not yet profitable risk

　　(2) Risk of sharp decline in performance or loss

　　(C) core competitiveness risks

　　1. Risk of technical iteration

　　In the IC design industry, the product technology iteration speed is fast, and the upgrading of CMOS image sensors and new application scenarios emerge one after another. The company must maintain continuous R&D and innovation, and continue product iteration according to the latest technology development trend and market demand, otherwise it may lead to price reduction, gross profit margin decline and poor customer experience. On the other hand, the development direction of integrated circuit products is uncertain, so design enterprises must maintain a high sensitivity to the iterative trend of mainstream technology and the market space of scene application in order to grasp the general direction of technology development in time. If the company can’t adjust its strategy in time according to the latest trend of technological development, it will cause great waste of labor cost, capital cost and time cost, and at the same time, it will also lead to the company losing key opportunities for development.

　　2. Risk of R&D failure

　　The company’s main business is the research and development, design and sales of high-performance CMOS image sensor chips. The development of its products has the characteristics of high technical content, long research and development cycle and large initial investment. At present, in order to adapt to the development of the industry and keep up with the development trend of mainstream technologies in the industry, the company continues to invest a lot of money and personnel in the research and development of new technologies and new products. However, if the company fails to make a correct judgment in the direction of R&D, fails to break through key technologies in the process of R&D, fails to meet the expected product performance index, or fails to meet the market demand, the company will face the risk of R&D failure, which will make it difficult to recover the investment in the early stage of R&D and adversely affect the company’s subsequent development and market competitiveness.

　　3. Risk of core technology leakage

　　The IC design industry is characterized by high technology-intensive, and the company has accumulated a large number of core technologies through long-term development, forming its own core competitiveness. The company has formed a series of unique core technologies in pixel design, circuit design and other fields, and continues to carry out research and development of new technologies and intellectual property applications. In the future, if the company’s core technology is leaked due to improper storage of core technology information or brain drain of core technology, and the core technology is copied and utilized by competitors, it will have an adverse impact on the company’s core competitiveness.

　　4, the risk of brain drain of core technology

　　Integrated circuit design industry is a typical technology-intensive industry, and its dependence on R&D personnel, especially core technical personnel, is much higher than other industries. In the process of development, the company has formed a mature and innovative core R&D team. However, with the intensification of industry competition, the competition for outstanding talents has become more intense. At the same time, the company must continue to introduce new talents to adapt to the ever-changing industry technology development trend. If the company can’t strengthen the incentive for existing core technical talents and attract new talents, it will directly affect the company’s technological innovation ability and product research and development ability.

　　(4) Operational risks

　　1. Risk of business model

　　As an integrated circuit design enterprise, the company adopts Fabess’s business model, focusing on the R&D, design and sales of chips, and the production links are completed in foundries such as fabs and packaging plants, which require higher productivity stability and cooperation. The company has established long-term and good cooperative relations with major suppliers such as TSMC, Hefei Jinghe, Samsung Electronics, Jingfang Technology, Huatian Technology, Keyang Semiconductor, etc. However, due to the company’s inability to independently complete wafer production and packaging processes, if the prices of wafer and packaging procurement rise sharply, or fail to form sufficient capacity guarantee for the company, it will directly affect the company’s profitability, sales scale, delivery schedule and supply guarantee for customers.

　　2. The risk of high supplier concentration and periodic fluctuation of its capacity utilization rate.

　　As an integrated circuit design company, the main production processes such as wafer manufacturing and packaging need to be completed in the foundry. At the same time, due to the high threshold of wafer manufacturing and packaging in the integrated circuit industry, the number of wafer manufacturing and packaging suppliers that meet the company’s technical and production requirements worldwide is limited. If the global wafer and packaging and testing capacity enters a relatively tight cycle, the wafer and packaging prices will rise sharply, or the company’s product production will be affected due to the shortage of wafer supply and insufficient packaging capacity, which will adversely affect the company’s profitability and the stability of product supply.

　　3. Risk of high customer concentration

　　The company adopts the sales mode of combining direct selling and distribution. Due to the large market demand for the company’s products, the company has strict customer management. Direct customers generally choose well-known terminal brand customers in the industry, while other terminal customers supply and serve through well-known distributors in the industry. This strategy will make the proportion of corporate customer concentration relatively high.

　　Due to the high concentration of customers, if a customer with a high proportion fluctuates in cooperation with the company due to risks such as geopolitics, self-management, cooperation disputes, and tight production capacity, and it takes a certain period for the company to expand new customers, it may lead to a passive decline in the sales scale of the company, and the sales repayment cannot be guaranteed, which will adversely affect the company’s performance in the short term.

　　4. Risk that the expansion speed of product application field is less than expected.

　　According to the market demand and its own technical characteristics, the company continues to expand its product application fields and help the company’s performance to grow continuously. During the reporting period, the company has gradually expanded from smart security to smart phones, smart phones and other fields. However, if the company’s business expansion speed in new application areas is less than expected, or the progress of related technology research and development is less than expected, it will adversely affect the growth rate of the company’s operating performance.

　　5, the risk of not being able to maintain rapid growth in the future.

　　Affected by the rapid development of downstream industries such as 5G, smart city, artificial intelligence and automobile in recent years, the demand for CMOS image sensor chips in various fields is very strong. At the same time, the company was established for a short time, and the cooperation between products, sales system and industrial chain gradually matured. The previous business performance showed high growth; However, the company’s operating performance is greatly affected by the fluctuation of upstream capacity supply end and downstream terminal demand end. At the same time, there is still some uncertainty in the company’s ability to continuously explore product application areas, introduce new products and update iterations, which will bring fluctuations to its income and profitability, and there may be a risk that it will not be able to maintain rapid growth in the future.

　　(V) Financial risks

　　1. Risk of inventory depreciation

　　The inventory scale increases year by year with the expansion of business scale. If the market demand environment changes, the market competition intensifies, or the company cannot effectively expand sales channels, optimize inventory management, and reasonably control inventory scale, it may lead to unsalable products and inventory backlog, thus increasing the risk of inventory depreciation and adversely affecting the company’s operating performance.

　　2. Risk of accounts receivable recovery

　　Although most of the company’s accounts receivable are aged within 12 months at present, the risk of bad debt loss is small, but with the continuous expansion of the company’s business scale, or the relaxation of credit policy due to changes in market environment and customer operation, the company’s accounts receivable balance may gradually increase. If the company’s accounts receivable cannot be recovered in time in the future, it will adversely affect the company’s capital use efficiency and operating performance.

　　3. Risk of exchange rate fluctuation

　　During the reporting period, the company had overseas sales and purchases, quoted prices and settled accounts in US dollars. With the expansion of the company’s overall business scale, the amount of overseas sales and purchases is expected to increase further. Although the company has considered the possible fluctuation of exchange rate between the conclusion of contracts or orders and the receipt and payment of funds in its business development, there is still great uncertainty about the exchange rate change with the changes of domestic and international political and economic environment. If the exchange rate between RMB and USD fluctuates greatly in the future, it will have a certain impact on the company’s performance.

　　4. Risk of fluctuation of gross profit margin

　　The company’s main products are high-performance CMOS image sensors. The gross profit margin of the main products is mainly affected by downstream demand, product price, product structure, raw materials, packaging and testing costs and the company’s technical level. If these factors change, the company’s gross profit margin may fluctuate, thus affecting the company’s profitability and performance.

　　5. Risk of changes in preferential tax policies

　　On December 14th, 2022, the company obtained the High-tech Enterprise Certificate (certificate number: GR202231004395) jointly issued by Shanghai Science and Technology Commission, Shanghai Finance Bureau and State Taxation Administration of The People’s Republic of China Shanghai Taxation Bureau, and it was recognized as a high-tech enterprise with a validity period of three years, and the company can enjoy the preferential corporate income tax rate of 15%. If the above-mentioned preferential tax policies of the country change in the future, or the company no longer has the qualification to enjoy the corresponding preferential tax policies, the company may face the risk of reducing its future profit due to the change or reduction of preferential tax policies.

　　(VI) Industry risks

　　1. Industry cycle risk

　　The company’s industry is integrated circuit design, and its main products are high-performance CMOS image sensors, which are used in security monitoring, machine vision, smart phones, automotive electronics and other fields, so it is inevitably affected by macroeconomic fluctuations. If the development of downstream application field itself is impacted by industry cycle factors, it will not be able to effectively support the company’s product demand, and then affect the company’s performance.

　　Wafer production, packaging and other industries are easy to wander between insufficient capacity and overcapacity due to the long production capacity construction cycle, which further affects the development of integrated circuit design enterprises. In the case of periodic shortage of supply chain capacity, if the company can’t realize the priority supply of capacity through deep cooperation with suppliers, it may face problems such as unstable product delivery and reduced product gross profit, which will affect the company’s performance and market recognition.

　　At the same time, CIS manufacturers mostly adopt Fabess operation mode, focusing on the design and research of integrated circuit chips, and adopting professional third-party enterprise OEM mode in manufacturing, packaging and testing. With the further repair and expansion of CIS demand by downstream applications, the supply of industry capacity may be tight, and there is uncertainty whether the production capacity of wafer factories and packaging and testing plants can guarantee the procurement demand.

　　2. Risk of market competition

　　Although the company maintains a high market share in security monitoring, machine vision and other fields through unique technologies and products, there are still a large number of enterprises with technical competitiveness in the CMOS image sensor market. Under the background of China’s strong support and development of integrated circuit industry, and the future market will continue to develop at a high speed, there may be more CMOS image sensor design enterprises to strengthen their resources in this field and form direct competition with the company’s products. If the company can’t continuously improve the R&D capability of technology and products, and can’t continuously update and iterate according to the downstream demand, the market share that the company has obtained at present may be squeezed by other competitors, which will adversely affect the company’s performance.

　　3, the price is less than the expected risk

　　With the increasing degree of product overlap among manufacturers in the industry, it may further intensify the competition in the industry, or it may bring the pressure of business expansion and the risk of falling gross profit margin. In order to maintain market share and competitive advantage, companies may be forced to lower product prices, thus posing a threat to profitability.

　　(VII) Macro-environmental risks

　　The company’s overseas sales revenue accounts for a relatively high proportion. At the same time, some products of the company’s main terminal brand manufacturers are also sold to other countries and regions except Chinese mainland. In the future, if relevant countries or regions construct trade barriers through trade policies, tariffs, import and export restrictions, etc. for trade protection or other reasons, and restrict the business development of corporate customers and terminal brand manufacturers in the local market, it may lead to a decrease in the demand for corporate chips by corporate customers and related terminal brand manufacturers, which will adversely affect the company’s operating performance.

　　(8) Risks related to depositary receipts

　　(9) Other major risks.

　　1. Risk of special corporate governance structure with special voting rights.

　　On July 3, 2020, all shareholders of Sitway (Shanghai) Electronic Technology Co., Ltd. signed the Articles of Association of Sitway (Shanghai) Electronic Technology Co., Ltd., which set the excess voting rights and agreed that Xu Chen and his wholly-owned or controlled shareholders would exercise their voting rights five times the proportion of their subscribed capital contribution.

　　On December 15th, 2020, the company held the founding meeting and the first general meeting of shareholders. All shareholders attended the meeting, and the meeting unanimously reviewed and approved the Proposal on Setting up Special Voting Shares of Sitway (Shanghai) Electronic Technology Co., Ltd., and formulated the articles of association and set up special voting shares arrangements. Unless the arrangement of special voting rights is terminated by the resolution of the company’s shareholders’ meeting, the setting of special voting rights of the company will continue and run for a long time. According to the arrangement of special voting rights, the company’s share capital consists of Class A shares with special voting rights and Class B shares of ordinary shares. Except for considering specific matters, the number of voting rights corresponding to Class A shares and Class B shares is the same, and the number of voting rights per share of Class A shares held by Xu Chen, the controlling shareholder and actual controller, is five times that of Class B shares held by other shareholders.

　　Under the special voting mechanism, Xu Chen, the controlling shareholder and actual controller of the company, can decide the ordinary resolutions of the company’s shareholders’ meeting, and can also play a similar decisive role in the special resolutions of the shareholders’ meeting, which will restrict the influence of other shareholders of the company except Xu Chen on the company’s major decisions through the shareholders’ meeting to some extent.

　　If minority shareholders, including public investors, hold different opinions with controlling shareholders and actual controllers on major decisions of the company and raise objections when voting at the shareholders’ meeting, it is likely that they will not be able to have a substantial impact on the voting results of the shareholders’ meeting because of the relatively significant difference in the number of voting rights per share.

　　Under special circumstances, Xu Chen’s interests may be inconsistent with those of other shareholders of the company, especially the minority shareholders, which may damage the interests of other shareholders, especially the minority shareholders.

　　V. Main operations during the reporting period

　　During the reporting period, the company realized an operating income of 2,857,343,300 yuan, up by 15.08% over the same period of last year; The net profit attributable to shareholders of listed companies was 14,215,500 yuan, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 607,400 yuan, which turned losses into profits.

　　VI. The Company’s Discussion and Analysis on the Company’s Future Development

　　(A) the industry pattern and trends

　　1, the industry structure and status

　　The company’s products have been widely used in smart security fields including network cameras, analog closed-circuit cameras, home care cameras, smart doorbells, drones, sweeping robots, industrial cameras, smart transportation, face recognition, etc. Intelligent vehicle-mounted driving recorder, vehicle-mounted panoramic and rear-view camera, driver monitoring system, passenger monitoring system and other automotive electronic application fields; Smart phones, tablets, smart homes, smart health and other consumer electronics applications are promoting the development and progress of smart life.

　　Through the comprehensive layout of FSI-RS series, BSI-RS series and GS series, the company is technology-driven, meeting the rigid requirements of industry application fields for excellent imaging in low-light environment, maintaining high performance of chips in high-temperature working environment, showing bright and dark details in strong light contrast environment, shooting fast-moving objects without distortion/tailing, and shooting high-frame-rate video. It has the core advantages of competing with leading CMOS image sensor manufacturers such as Sony, and covers all levels of high, medium and low-end.

　　The company has become a leading supplier of CMOS image sensors for smart security, smart phones and automotive electronics. According to TSR statistics, the company ranked first in global security CIS shipments from 2020 to 2022, and its market share reached 33.3% in 2022. At the same time, according to the latest report data of Yoe, in 2022, the company ranked fourth in the world and second in China in the vehicle CIS market; Ranked fifth in the world and third in China in the CIS market of the Internet of Things; It ranks sixth in the world and second in China in the industrial CIS market.

　　2. Industry development trend

　　(1) the field of smart security

　　According to the latest data of YOLE, in 2022, the global CIS market will be about US$ 21.3 billion, of which security applications will account for 6% and the market size will be about US$ 1.241 billion.

　　Driven by the iterative updating of emerging technologies, the security industry is developing rapidly in the direction of digitalization, intelligence and ultra-high definition. Intelligentization has become the mainstream trend of the development of security industry. With the transformation of security monitoring to intelligence, the AI chip embedded in the device enables the camera to carry out structured processing, intelligent calculation and analysis and image recognition on video data, which promotes the transition of video monitoring equipment from passive monitoring to active recognition, and the realization of intelligent function needs to be based on high-definition image. According to TSR report, CIS in the field of security application needs resolution ranging from VGA (300,000 pixels) to 12 million pixels, and its center of gravity is gradually moving towards high resolution. The demand for 8 million pixels is increasing at an annual growth rate of 85% year by year. Therefore, high resolution has become the development trend of high-end security image sensor products.

　　At the same time that security monitoring has started the intelligent stage, machine vision technology is also becoming the core driving force of modern industry. With the commercialization of AI and 5G technologies, machine vision is no longer limited to industrial applications. Emerging downstream application markets such as drones, sweeping robots and AR/VR have injected new vitality into the development of machine vision industry. With the deepening of automation, digitalization and intelligence in the field of industrial manufacturing around the world, machine vision will have a wider development space.

　　According to the data of MarketandMarkets and GGII, the global machine vision market will be 80.40 billion yuan in 2021. It is predicted that the global machine vision market will grow at a compound annual growth rate of 13.2% from 2022 to 2025, and the global machine vision market will reach 127.61 billion yuan in 2025. In the emerging field of machine vision, the trend of "machine vision replacing manual identification" has brought great growth space for the industry. As a standard component in the upgrade process of "machine vision replacing manual identification", CMOS image sensor has ushered in a new opportunity in the AI ​ ​ era.

　　(2) the field of automotive electronics

　　With the popularization of new energy smart cars, the continuous improvement of ADAS technology and the improvement of on-board chip computing power, the number of cameras on modern cars is increasing rapidly. In order to achieve better image recognition function, the application scope of vehicle-mounted CMOS image sensor has been expanded from only realizing the functions of visual reversing and driving recorder in the past to realizing 360-degree panoramic imaging, roadblock detection, blind spot monitoring, driver monitoring system, automatic driving and other functions through up to 13 cameras on a bicycle.

　　In addition, with the improvement of intelligent driving technology, vehicle-mounted cameras have further developed in the direction of binocular and binocular. In order to improve the ranging accuracy, the improvement of intelligent driving in obstacle avoidance technology has promoted the use of 3D cameras. ADAS system includes many functions, such as driving record, intelligent navigation, panoramic image, lane departure warning and so on, and the demand for accessories such as driving recorder is also increasing. In order to maintain the competitiveness of their own vehicle products, major automobile manufacturers are expected to introduce more cameras to obtain video image information to build a diversified in-vehicle intelligent vision system including driver monitoring system, blind spot detection, pedestrian collision prevention, signal light recognition, etc., so as to cover various applications of in-vehicle cameras. CIS includes rear view/automatic parking (AVM/RVC/APA), in-vehicle monitoring (DMS/OMS), driving recorder (DVR), and automatic driving (autopilot).

　　Compared with the intelligent security field, the automotive electronics field has many similarities, such as: good night vision imaging performance; As low noise as possible; To cope with the rapid change of light and dark environment, high-width dynamic range (HDR) is needed; Wide temperature range requirements; High standard redundancy design, etc. The company’s deep technical accumulation in the field of smart security has helped the company quickly cut into the field of automotive electronics. At the same time, compared with CIS of security and consumer terminals, vehicle CIS needs to pass strict vehicle regulation certification to ensure the reliability of products. Therefore, since entering the vehicle field, the company has always adhered to safety as the cornerstone, established a high-quality R&D control system at the beginning of product design, and kept in line with international standards, and regarded vehicle safety as a key factor in the field of production R&D. It has passed the three industry certification standards of IATF16949, AEC-Q100 and ISO26262:2018, and established a perfect R&D and quality management system for vehicle-level chips. With the rapid rise of domestic vehicles, especially domestic new energy vehicles, the company will achieve rapid growth in the field of automotive electronics.

　　(3) the field of smart phones

　　According to the latest data of YOLE, in 2022, the global CIS market is about 21.3 billion US dollars, and the largest downstream field is mobile phone applications, accounting for 64%, with a market size of about 13.452 billion US dollars. Therefore, the field of smart phone CIS is also an important field of business layout of major CIS manufacturers.

　　In 2023, the overall market scale of mobile phone CIS tends to be stable, mobile phone terminals enter the stock market, and high-end smart phone consumers demand higher and higher shooting performance of cameras. Under this trend, CIS, as the core imaging device, has become a key selling point for major mobile phone manufacturers to enhance their experience, and the market structure of smart phone CIS is changing rapidly.

　　For the high-end flagship machine circuit, several XS series of high-end products for the main camera and auxiliary camera (including telephoto and wide angle) of the flagship have been shipped on a large scale, which not only opened up a second growth curve for the company’s revenue, but also marked the company’s remarkable progress in catching up with the high-end product lines of overseas leading manufacturers, thus further enhancing the company’s market position and brand influence.

　　With the increasing number of cameras, it is very important to balance the performance and cost of smart phone CIS. Therefore, in the mass computer and flagship machine market, CIS chips show completely different development trends. According to IDC statistics, among Android phones, the sales of low-end models below $600 accounted for nearly 70% in 2023, and the shipments accounted for over 90%. Therefore, the rear camera of low-end models with large value is the main market focused by CIS manufacturers. TrendForce believes that the future upgrade direction of smart phone CIS will focus on the optimization of CIS structural design. By improving the structure and materials of photosensitive elements, the performance of photosensitive elements will be further improved, and the image processing algorithm will be optimized and upgraded. The AI algorithm will break through the hardware limitation, further improve the clarity and dynamic range of images, reduce noise and improve the imaging quality.

　　In view of the CIS market of mainstream smart phones, the company has also carried out in-depth technical cooperation with domestic fabs, and adopted technological innovations such as single-chip integration to launch products that are more cost-effective and better meet the needs of mainstream smart phones. At the same time, the company continuously improves the dynamic range of products, reduces noise, optimizes power consumption and other performances, further improves the differentiated product matrix, brings excellent imaging performance to the smart phone imaging system, and continuously enhances the company’s market position and brand influence in the smart phone field.

　　(II) Company development strategy

　　Since its establishment, the company has been focusing on the research and development and design of high-performance CMOS image sensors. Through outstanding technological innovation and efficient research and development capabilities, we have accumulated and built a mature core technology system, providing serialized and differentiated products to meet the market demand of multi-scenarios and full performance. The company has a relatively complete product matrix in the field of smart security, and always maintains a leading position in the industry. At the same time, the company launched a series of products in the field of automotive electronics and smart phones, which quickly gained market recognition and customer trust with excellent performance and quick response, and achieved rapid growth and improvement in turnover and market position. The company will continue to invest in R&D, constantly explore and innovate, widely apply core technologies to various fields, strengthen cooperation with customers, and improve product quality and service level to meet the escalating market demand and improve market share and industry competitiveness. The specific development strategy plan is as follows:

　　1. Further enrich product series and application fields.

　　At present, the application field of the company’s products has successfully expanded from smart security to smart phones and automotive electronics. The company plans to further enrich the product range, expand the application fields, and fully tap the application methods of the company’s existing core technologies, such as SFCPixe patented technology, night vision full-color technology, global shutter technology based on back-illuminated technology, etc. in other emerging fields.

　　2. Continuously improve the industry-leading R&D efficiency.

　　The company will continuously improve the industry-leading R&D efficiency, keep close contact with downstream applications and customers, continuously improve the company’s products, optimize and improve product performance and user experience, and enhance customer satisfaction, so as to increase market share and brand influence, and promote the steady growth of business.

　　3. Strengthen the construction of talent team.

　　The industry in which the company is located has high requirements for the background, research and development ability and work experience of technical talents. With the continuous expansion of the company’s business scale and the continuous enrichment of the product line, the company is facing more and more challenges. In this case, having outstanding talents will become the key factor for the company’s steady development in the future. Therefore, according to the future development strategic plan, the company will continue to optimize the allocation of human resources, further improve the internal talent training mechanism, and increase the introduction of high-end talents to build a world-class R&D and management team. This not only lays a solid foundation for the company’s sustainable development, but also helps the company to maintain its competitive advantage in the industry and achieve long-term stable growth.

　　(3) Business plan

　　In the future, the company will continue to optimize the product matrix, improve product performance and user experience, strengthen cooperation with core customers, expand cooperation areas, and actively explore new market opportunities, so as to enhance market share in smart security, smart phones, automotive electronics and other fields and achieve steady growth in turnover. At the same time, the company will continue to pay attention to brand building and marketing promotion, constantly enhance brand awareness and maintain a leading position in the highly competitive market. The specific business plan is as follows:

　　1, close to customer demand to enhance the ability of technological innovation.

　　Adhering to the vision of "let people see and know the world better", the company adheres to the concept of "taking customers as the core, and is committed to providing high-quality and intelligent video solutions", and has always developed a series of distinctive core technologies closely following the needs of customers. The company will further explore the customer needs of emerging image sensor applications such as smart security, smart phones and automotive electronics, and develop diversified and differentiated product series, covering a full range of high, medium and low-end products to meet the customer needs of different positioning.

　　2, increase the chip research and development capabilities.

　　The company has always adhered to the product development concept of "R&D generation, mass production generation and pre-research generation", and achieved high chip R&D efficiency under the blessing of "multi-pronged" supply chain and upstream and downstream resource system. The company will continue to increase its R&D capabilities so that it can quickly respond to changes in customer needs, so that its terminal products can better adapt to the complex and ever-changing market environment and achieve a win-win situation with customers.

　　3. Build a solid intellectual property system barrier.

　　During the reporting period, the company obtained 424 patents, including 194 invention patents and 230 utility model patents. In addition, the company obtained 27 software copyright registrations. Through continuous investment in R&D, the company has continuously iteratively upgraded its products and expanded its application fields, laying the foundation for products to maintain their leading edge. The company has built a core technology and intellectual property system to improve the signal-to-noise ratio, sensitivity, frame rate and dynamic range of CMOS image sensors, and will further improve intellectual property barriers through continuous technological innovation and technology accumulation in the future.

　　4. Strengthen the construction of R&D team.

　　The company attaches great importance to the introduction and cultivation of talents, regards the ability of the company’s R&D and technological innovation team as the company’s core resources, and has recruited technical talents at home and abroad, and has established an excellent R&D team. The company actively establishes an international talent cultivation system with R&D personnel as the core, strengthens the cultivation of R&D talents and the common culture of the company, while improving the professional skill level and project management level of R&D talents, and injects continuous energy support for the company to maintain long-term R&D innovation momentum.

　　5. Actively explore customer resources.

　　The company will further strengthen the close cooperation with end customers, deeply participate in the design of customers’ product schemes, and collect customers’ product demand information in time. In product design, we always keep pace with the increasing demands of customers, even ahead of them, and quickly implement them in product customization and development. According to the continuous updating requirements of customers, through the rapid iteration mode of "small steps and quick running" and convenient product upgrade channels, new products with better performance and better meeting customer needs will be launched in a short period to serve customers. With the good reputation among terminal brand customers, as well as the company’s rich product matrix and excellent product performance in smart security, smart phones, automotive electronics and other application fields, we actively expand new customer resources and continuously increase market share.

Group photo at the premiere of "Second Exposure"


Fan Bingbing "Second Exposure" poster


Huo Siyan’s "Second Exposure" poster

　　　 Movie Network News(Text/Jingyu) On September 24, the film held a media test screening in Beijing. After a year and a half of success, director Li Yu once again joined hands with Fan Bingbing to present an excellent psychological suspense drama for fans. In 105 minutes, the director used a rather complex narrative structure, psychedelic pictures and plots to present an ordinary murder story in a very interesting and beautiful way. Feng Shaofeng and Huo Siyan joined the two stars to add a lot of color to the film, but "Fan Ye" Fan Bingbing is the absolute protagonist of the film. In the film, she can not only show off her half-naked body without scruples, but also show the fragility and psychological collapse of women with tearful eyes, which can be said to challenge her acting skills.

The suspense of the film is comparable to that of "Mulholland Drive". The complex story is intriguing

　　　 The film "Double Exposure" tells the story of Song Qi (Fan Bingbing), a consultant for a cosmetic surgery company, who discovers the secret love affair between her boyfriend Liu Dong and her friend Zhou Xiaoxi. In a fit of rage, Song killed Zhou Xiaoxi on impulse. Song Qi, who is burdened with guilt for murder, begins to have constant hallucinations, and unknowingly, she gradually discovers the truth of the murder.

　　　 If the film were just about a bloody case between two women fighting for a man, it would be too simple and vulgar. In fact, when the director tells the opening story, he has already placed a few foreshadows, hinting at the more complicated story that follows. In particular, the heroine Song Qi spies on the cheating of her boyfriend and friend. With the eerie background electronic music, raindrops begin to fall from the sky, and the picture begins to become very psychedelic, suggesting that the protagonist seems to be in a similar illusory sleepwalking. And as Song Qi’s neuroticism intensifies, even the less sensitive audience can guess that what the protagonist is doing should be a fantasy.

　　　 When the mystery is solved in the middle of the film, the audience will feel a sincere sense of comfort in solving the mystery. It turns out that everything Song Qi does, although it is a fantasy thing, is a projection of another blood crime hidden in his psychology. Fantasy characters and recurring things are the prototype of another story, but they have undergone the most ingenious disguise and distortion of human psychology. And this technique is more common in suspense and thriller films, although not as good as David Lynch’sMulholland Drive.It is so complex and difficult to understand, but it still has an extraordinary structural charm, which alone shows that the film’s script skills are not shallow.

Next page: "Fan Ye" challenges the limit of acting, shows half-naked and plays forbidden love

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The design of the front face of ARCFOX Alpha T5 is simple and full of scientific sense, and the air intake grille is closed, which shows its status as a pure electric vehicle. The overall style tends to be younger and the lines are smooth, creating a dynamic visual effect.

The body size of the polar fox Alpha T5 is 4690mm*1936mm*1650mm, the wheelbase is 2845mm, and the front and rear wheel tracks are 1640 mm.. The side lines of the car body are smooth and dynamic, with 19-inch aluminum alloy wheels and 235/50 R19 tyre size, showing a strong sense of sports style and fashion.

The interior design of Arc Fox Alpha T5 is simple and fashionable, and the center console is equipped with a 15.6-inch large display screen, which is intuitive and convenient to operate. The steering wheel is made of leather, which supports manual adjustment up and down and forward and backward, providing a comfortable driving experience. The advanced speech recognition control system is built in the central control panel, which can realize the speech control of multimedia system, navigation, telephone, air conditioning, window and seat heating. In addition, the car is also equipped with USB and Type-C interfaces to meet the daily charging needs. The number of USB/Type-C interfaces in the front row and the back row is 2 and 1 respectively. In terms of seats, Alfa T5 is made of imitation leather. The main driver’s seat is equipped with front and rear adjustment, backrest adjustment, height adjustment (2-way) and lumbar support (2-way), while the co-pilot seat supports front and rear adjustment and backrest adjustment, and the front seats also have heating function. In addition, both the driver’s seat and the co-pilot seat are equipped with electric seat memory function, which makes the adjustment of different drivers more convenient and fast. The rear seats can be tilted in proportion, which increases the flexibility and loading capacity of the vehicle.

The Extreme Fox Alpha T5 is equipped with a high-efficiency motor with a maximum power of 185kW and a maximum torque of 360N·m, which provides a strong power output and a smooth driving experience for the vehicle.

He said that the design of the polar fox Alpha T5 is very attractive, the front of the car is round and full of science and technology, the headlights are slender, and the overall look is very sporty. He likes this design very much.

　　Beijing, May 8 (Reporter Xie Qing) Future Network (www.k618.cn Central News Website) Among all parts, the engine is the heart of the plane. Among nearly a thousand engine blades, it is crucial to master the precision grinding technology of blades.

　　As a first-line industrial worker, Hong Jiaguang, the chief technician of China Hangfa Shenyang Liming Aeroengine Co., Ltd., led the team to overcome difficulties and finally mastered the core technology, and won the second prize of National Science and Technology Progress Award.

　　Hong Jiaguang won the National May 1 Labor Medal on the International Labor Day just past. He said to himself, "This is a different Labor Day", which is the highest honor awarded to industrial workers and feels both glorious and great. "

　　This year’s "May 1 International Labor Day", Hong Jiaguang came to Beijing to participate in the 2018 celebration of the "May 1 International Labor Day" and the "Being a Good Master-Building a New Era" Labor and Skills Competition Promotion Conference, and won the National May 1 Labor Medal and made a speech. At the same time, as an award guest, he participated in the award ceremony of "The Most Beautiful Workers in China".

　　After attending two important activities, Hong Jiaguang told reporters that he would immediately return to work overtime. Since joining the work in 1998, Hong Jiaguang has become the chief skill expert of China Hangfa Group, enjoying special allowance from the State Council, and has 6 national inventions and new utility patents.

　　Under the responsibility of "Made in China 2025", Hong Jiaguang took the lead in challenging the "crown jewel" on aero-engines.

　　The so-called "jewel in the crown" refers to aero-engines. For a long time, the precision grinding technology of engine blade roller has always been in a bottleneck state, so how to break through the manufacturing technology of high-precision ultra-thick diamond roller for blade grinding is particularly critical.

　　In this regard, Hong Jiaguang took the initiative to lead the team to overcome difficulties. After more than five years and more than 1,500 attempts, Hong Jiaguang’s team developed a mature precision grinding technology for aero-engine blade rollers, laying a solid foundation for numerical control manufacturing and mass production.

　　The breakthrough of this technology made Hong Jiaguang win the second prize of national scientific and technological progress. As a front-line worker, it is not easy to win this award. Hong Jiaguang said that due to the limitation of knowledge accumulation, he should make special efforts to study technological innovation.

　　On the first-line production line, what defects will be encountered in the actual production of products, Hong Jiaguang should record them at the first time. Then, we need to concentrate on our work, overcome the theoretical weakness and research difficulties, and continue to experiment, so as to gradually make up for our shortcomings.

　　Using a lot of spare time in study, Hong Jiaguang often didn’t go to bed until midnight, just to constantly learn and supplement his professional knowledge. He taught himself the aerodynamics of the engine, stepped into the hall of professional knowledge from the layman, and consulted experts and scholars to constantly overcome difficulties.

　　Just when receiving the second prize of National Science and Technology Progress Award, some experts were surprised that Hong Jiaguang was a first-line industrial worker. In this regard, Hong Jiaguang said that in the work, we must learn more and learn from each other’s strengths. Without continuous learning, we can discover our own shortcomings and the strengths of others, find out the shortcomings in technology and skills, and learn excellent skills. "I think only by doing this can I grow from an ordinary worker to a real great country craftsman."

　　When his technology and skills were improved to a certain extent, Hong Jiaguang found that he would notice many areas that needed improvement in his work. "Explore more and pay more attention to some areas that need improvement, try small inventions, innovations and transformations, and better improve your production efficiency and quality."

　　In this way, Hong Jiaguang mentioned that he can also gradually cultivate and build his own ability and interest in innovation and creation.

　　The new era needs the strength of the team, which makes the workers who are used to working hard try to change. In this regard, Hong Jiaguang is leading the technical team to cooperate with each other and overcome difficulties in unity.

　　After nearly 30 years’ experience in the first-line industry, Hong Jiaguang went from an entry-level lathe worker to a technical expert, and then to a great country craftsman. Seeing the growing number of young industrial workers, Hong Jiaguang also said, "I hope that young people will study more, learn technology seriously, do their work in a down-to-earth manner, and at the same time constantly cultivate their sense of innovation, and combine technology and methods to get exercise and promotion in their posts."

　　Integrating personal ideals into the Chinese dream, Hong Jiaguang deeply stated that young people should be innovative and energetic, and contribute and work hard for the Chinese dream. "Accumulate from the contribution and development of Didi, make yourself grow and contribute to the strength of young people. Guard the heart of the plane and let our Hawk fly higher. "

　　() The Record Form of Investor Relations Activities was released on November 28th. On November 24th, 2022, the company was investigated by eight institutions, including other institutions, fund companies and securities companies.

　　The main contents of investor relations activities are introduced:

　　The main contents of this investor relations activity are as follows (in the form of questions from research institutions and answers from company executives):

　　Q: What are the opportunities and growth points of the company’s financial technology business under the background of localization?

　　A: The company is determined to be a full-stack solution provider of "terminal+application+service development", further promoting the strategic layout and key research and development work of innovative projects such as digital currency, supply chain finance, and localization project of OpenHarmony system. Relying on the technology and precipitation capacity accumulated in the field of financial technology since its establishment, the company has strengthened independent innovation of financial digital technology and promoted the transformation of results and business development. Continuously enhance the company’s market position and influence in the industry, and help the company achieve the medium and long-term goal of "developing into a head enterprise in the self-help and payment market segment in the field of financial technology" faster.

　　(1) In 2021, the company has established in-depth cooperation with Tongxin, completed the compatibility test of CPU manufacturers, terminal adaptation and product pilot work of big banks such as China Bank, and made breakthrough progress in the market expansion of Xinchuang products of many small and medium-sized commercial banks.

　　In addition, the company joined the Innovation Working Committee led by the Ministry of Industry and Information Technology and the Financial Innovation Ecological Laboratory led by the People’s Bank of China, and became a member unit, actively participating in the work of various working groups and the discussion of standards. The company actively laid out the Xinchuang industry and launched a full-stack solution from product design, hardware research and development, software platform and application deployment.

　　(2) The company has built its own operating system for Xinchuang Cloud, and participated in the formulation of standards for Xinchuang Cloud in Hunan Province. The operating system has built an IAAS layer operating service platform for cloud computing that can support multiple services, upgraded and expanded cloud products and services based on state secrets such as Zhengtong Cloud Stack, Cloud Pool, Cloud Fixation, Cloud Monitoring, Cloud Number and Yuntai, and is committed to providing customers with safe, independent, controllable and credible cloud hosts and platforms.

　　(3) With the increasing number of pilot projects in digital currency and the popularization of scenario-based applications, the related transformation needs of existing systems and business processes will appear intensively, which will bring a lot of opportunities to companies related to the industrial chain and be conducive to the development of the company’s financial technology business.

　　The company has carried out a complete set of research work on digital currency’s secure payment scheme around key areas such as encryption algorithm in digital currency, digital wallet equipment and its application, payment module and payment equipment in digital currency, and bill acquiring equipment in digital currency, and can provide application development solutions for connecting digital RMB payment to banking system according to customers’ needs. At present, it has been successfully applied by a number of merchants in large commercial centers, and is actively promoting the pilot construction of more scenarios such as gas stations, medical health, and supermarket services, and exploring more value-added services of financial technology.

　　(4) The company joined the Open Atomic Open Source Foundation as a silver donor in 2021, and officially became a member of the OpenHarmony ("Open Source HarmonyOS") project group. At present, the company is a member of the OpenHarmony Ecological Committee and a vice president of the Financial Payment Committee. Up to now, the company’s existing financial intelligent terminal ZT8669 equipment, telemedicine intelligent terminal KS8123, commercial application intelligent terminal ZT8623 and special secure payment suite ZT925 have passed the compatibility XTS test of the Open Atomic Foundation and obtained the compatibility certificate of the OpenHarmony ecological products. At the same time, the company also released the release of "Zhengtong SecOS" financial IoT operating system. After the release passed the compatibility evaluation, the company quickly developed the cloud horn product KS8303 based on this release and passed the compatibility evaluation. At present, the cloud horn product based on "Zhengtong SecOS" has been put into practice in the market.

　　Based on the precise application requirements of scene-based financial services, ZT8669 intelligent terminal and telemedicine service terminal KS8123 built by the company innovatively integrated the full-scene payment capabilities (bank card, passbook, code scanning, face brushing, digital RMB, etc.), realizing the business expansion and innovation of payment+industry, adopting modular integration technology, and supporting the configuration of different interactive components (card readers such as social security card, gas card and electricity card) for different industries. ZT8669 is based on image system, equipped with AI, big data and other innovative technologies, combined with business process reengineering, improves the closed-loop ecology of financial services, forms the integration of "production, supply, marketing and loans" in economies of scale industries, implements the development strategy of digital villages in the State Council, and undertakes the mission of revitalizing inclusive finance and rural areas.

　　Q: Does the company’s financial technology business expand in other industries besides banks?

　　A:The company uses "scenario"+Strategy promotes the design, research and development, sales and operation and maintenance of self-service terminal products.serviceThe ability to innovate, and constantly optimize the "product"+Scheme "mode, enrich products andserviceBased on the application scenario, the paper constructs the hardware customization, software.platformThe whole process integration of terminal manufacturing, supply chain management and information system maintenance.Service platform.

　　The company gives full play to the advantages of technology and safe payment in flexible customized production of self-service terminals, and constantly explores new markets in the business field of self-service terminals. The business field gradually expands from banking to finance, banking, real estate, transportation, lottery, government affairs and other industries. Provide customers with self-service terminal products such as intelligent teller machines, intelligent government affairs terminals, intelligent banking and medical terminals, intelligent counters, financial space capsules, and smart real estate.

　　This year, the company provided smart real estate and other self-service terminal products for well-known real estate customers to help customers realize intelligent transformation in real estate sales, property management and other processes, reduce related labor costs, and achieve cost reduction and efficiency improvement. By radiating customer service management centers and after-sales service outlets across the country, the company provides customers with accurate, timely and professional after-sales service, payment terminal outsourcing service and outsourcing operation service, which enhances the added value of financial technology products and services, enhances the stickiness with customers, and further increases the market competitiveness of the company’s main business.

　　Q: Is there any further plan for the company’s financial technology business to go to sea?

　　A: With the rapid increase of overseas mobile payment penetration, the number of overseas electronic payment users is increasing, and the electronic payment scenarios are constantly enriched. The demand for smart POS terminals, mobile POS terminals and tax-controlled POS terminals in the international market is growing steadily.

　　This year, the company established the International Business Development Department of the Financial Technology Security Payment Division, opened a new business layout on the basis of the original overseas business, increased the construction of overseas localization teams, actively explored overseas markets and new sales channels of financial technology business in Europe, South America and Africa under the current international environment, built brand awareness, exported advanced technologies and services such as () payment to overseas markets, and provided customers with a "cloud+network+terminal" comprehensive financial technology solution to create financial technology.

　　Q: What is the company’s business in rural revitalization?

　　A: The company actively responded to the deployment requirements of the national rural revitalization strategy and the Opinions on Financial Support to Consolidate and Expand the Achievements of Poverty Alleviation and Promote Rural Revitalization in an All-round Way. Relying on the company’s technology and accumulation in the field of financial technology, based on the physical environment and actual needs of rural financial services, combined with the development trend of Bank inclusive finance and Bank4.0, the company cooperated with banks to develop products such as "Yunongtong", which was equipped with various businesses such as finance, government affairs, social security, medical care and public services, and was obtained in rural areas. In the future, the company will continue to strengthen cooperation with various banking institutions, research and develop corresponding smart financial payment terminals and supporting services and applications, and help customers of financial institutions such as banks to promote inclusive finance services and rural financial services to the vast rural areas and serve rural revitalization.

　　Q: What is the planning and layout of the company’s IDC business?

　　A: The company adheres to the "IDC+" strategy and focuses on the first-line data center market. It has invested in seven energy-efficient data centers in Guangdong-Hong Kong-Macao Greater Bay Area and the central region, and has about 17,500 4.4kW standard cabinets with operating conditions, of which about 12,000 are located in the core cities of Guangdong-Hong Kong-Macao Greater Bay Area (Shenzhen, Guangzhou and Dongguan), with obvious scale advantages and location advantages. Tencent, Ping An Communication, Baidu, Ali and Dongguan.

　　The company insists on being a service provider of cloud operators, and will fully expand and reserve more high-quality data center resources by revitalizing endogenous resources and taking the opportunity to carry out outreach acquisitions, so as to consolidate the company’s large-scale competitive advantage in Guangdong-Hong Kong-Macao Greater Bay Area and the central region. At the same time, according to the needs of cloud operators and the company’s business development, the company will continuously optimize the regional layout of data centers, expand the data center resources of core node cities such as Beijing-Tianjin-Hebei, Yangtze River Delta and western China in a timely manner, and better provide basic IDC services for cloud operators.

　　At the same time, the company actively responded to the requirements of national policies such as "peak carbon dioxide emissions" and "carbon neutrality", promoted the construction of green data centers, and took a green development path of high efficiency, low carbon, intensive and recycling. In 2021, the company continued to strengthen the refined management of data center operation and maintenance, and the overall PUE value of the company’s data center decreased by about 0.07 compared with 2020. Shayungu Data Center, the head of the company, was awarded as "National Green Data Center", and the project of Smart Bright Cloud Data Center adopted the solution that indirect evaporative cooling units were used in series with precision air conditioning. After it was put into production, it could effectively realize energy saving and emission reduction, and the designed PUE value was not higher than 1.25.

　　In addition, the Operation and Maintenance Management of Evaporative Cooling Air Conditioning System in Data Center, which was drafted by the company, was officially released and implemented, which stipulated the objectives, scope and methods of operation and maintenance management of evaporative cooling air conditioning system in data center, and played a normative and guiding role in realizing the standardization, safety and timeliness of operation and maintenance of evaporative cooling air conditioning system in data center. The company continues to strengthen the refined management of data center operation and maintenance, optimize the operation parameters of HVAC equipment through self-developed energy management system, purchase energy-saving products such as magnetic suspension refrigerator and widely use cooling technologies such as indirect evaporative refrigeration, plate replacement and liquid cooling to continuously optimize energy-saving effectiveness and achieve cost reduction and efficiency increase;

　　The main businesses of Shenzhen Zhengtong Electronics Co., Ltd. are financial technology business, IDC and cloud computing business, and lighting technology business. The company’s main products include IDC business, cloud computing business, self-service terminal, payment products (including cloud horn, face recognition payment terminal, financial POS, smart POS, secure payment suite, scanning terminal, desktop intelligent terminal, etc.), encrypted keyboard, tax control terminal, intelligent network integrated service platform, electronic fiscal and taxation equipment management platform, contract energy management, urban road lighting project, landscape lighting project and related derivative engineering business. The company is one of the earliest high-tech enterprises to research and develop financial electronic equipment in China. It owns the Shenzhen Municipal Research and Development Center, is the designated unit for research and development, production and sales of national commercial password products and the national industrialization base for financial payment information security products, and has accumulated strong technical research and development strength in the field of financial technology.

　　Details of participating institutions are as follows:

Zhongxin. com, Chengdu, September 6 (Reporter He Yuqing) The reporter learned from the Sichuan Provincial Committee of the Communist Youth League on the 6 th that the Sichuan Youth Development Foundation, the Sichuan Youth Federation and the Sichuan Young Entrepreneurs Association jointly issued the "Proposal for Emergency Relief Action of the" 9.5 "Luding Earthquake Hope Project in Sichuan Province" on the same day, urging caring enterprises and individuals from all walks of life to donate generously and actively support the earthquake-stricken areas. The proposal also announced the donation method and contact information of material donation.

　　The original text of the proposal is as follows:

　　Proposal for Emergency Relief Action of Hope Project of "9.5" Luding Earthquake in Sichuan Province

　　At 12: 52 on September 5, 2022, an earthquake of magnitude 6.8 occurred in Luding County, Sichuan Province, with a focal depth of 16 kilometers. The disasters in Luding County of Ganzi Prefecture and Shimian County of Ya ‘an City in our province were serious. Sichuan people once again face the pain of the earthquake. At this moment, the disaster area needs our help!

　　In order to help teenagers and families with special difficulties in disaster areas get out of the shadow of the earthquake as soon as possible, return to school, resume production and rebuild their hopes, Sichuan Youth Development Foundation, Sichuan Youth Federation and Sichuan Young Entrepreneurs Association jointly launched "Sichuan Province ‘ 9·5’ Luding Earthquake Hope Project Emergency Relief Action ",mobilizing caring enterprises and individuals from all walks of life to support the earthquake-stricken areas. According to the current situation, the three contents of this emergency relief operation are drawn up: first, to raise much-needed living security materials for the disaster-stricken areas; The second is to raise funds to carry out humanistic and mental health care for the people in the disaster areas; The third is to raise grants and relief funds for young students in disaster areas (donate 1000 yuan to fund a primary school or junior high school student in disaster areas; Donate 3000 yuan to support a high school or vocational school student in the disaster area; Donate 5000 yuan to help a college freshman in the disaster area; Donate 10000 yuan to help a student and family with special difficulties in the disaster area.