Corporate Value and Return Enhancement Action Plan 1

Stock Symbol

688515

Evaluation Report on 2024

Corporate Value

and Return Enhancement Action Plan

and 2025 Action Plan

Motorcomm Electronic Technology Co. Ltd.2 Corporate Value and Return Enhancement Action Plan Corporate Value and Return Enhancement Action Plan 3

ABOUT

THIS REPORT

Motorcomm Electronic Technology

Co. Ltd. (hereinafter referred to as

"Motorcomm" or the "Company") CONTENTS

actively implements the "Initiative on

Carrying out the Special Corporate

Value and Return Enhancement

Action for Companies Listed in

Shanghai Stock Exchange". Upholding 04 Adhering to Independent Innovation 11 Optimizing Financial Management 15 Optimizing Corporate that investors are essential for Focusing on the Principal Business Improving Quality of Earnings Governance and Enhancing and Enhancing Core Competencies Increasing Operational Efficiency the Awareness of the "Key

markets and listed companies are and Enhancing Competitiveness Minority"

foundations for markets the Company

released 2024 Corporate Value and 05 Continuously integrating industry resources around the seven 12 Using a scient i f ic management system to 16 Promoting improvement of the internal

major product lines to keep advanced within the industry

Return Enhancement Action Plan comprehensively promote cost reduction and governance mechanism

efficiency improvement

was released on April 29 2024 and 07 Maintaining intensity of R&D investments and keeping on 16 Ensuring that independent directors

Semi-annual Evaluation Report on making innovations to continuously improve independent 12 Enhancing customer diversification and increasing perform their duties according to law

R&D capability

2024 Corporate Value and Return asset profitability 17 Increasing the normative consciousness

Enhancement Action Plan on August 09 Attaching importance to the talent development strategy 13 Optimizing financial management capability and of directors supervisors and senior

29 2024 in reliance upon its firm and optimizing the incentive mechanism to maintain improving internal operational efficiency executives

stability of the scientific research team

belief in its future development and its 14 Reasonably planning capital stock and increasing 17 Improving the internal control system

recognition of its long-term value in 10 Strengthening brand building and marketing network capital utilization rate

order to safeguard the interests of all construction and actively developing domestic and overseas

markets 14 Strengthening the efficacy of raised funds and

shareholders. consolidating the ability to manage projects invested

10 Promoting strategic M&A of resources around industries by raised funds

and performing industrial-financial integration to enhance

competitive advantages

18 Improving Information Disclosure 20 Sharing the Benefits between the and Building a Multi-Level Investor Management and Shareholders Other MattersCommunication Mechanism and Act ively Conveying the 21

Company's Value

19 Increasing the readability of information disclosure

21 Establishing a normalized equity incentive

19 Making the information more accessible mechanism and maintain consistency among the

interests of the management and the shareholders

19 Strengthening investor communications

21 Considering both development of the Company and

shareholder interests actively conveying value of the

Company4 Adhering to Independent Innovation Focusing on the Principal BusinessCorporate Value and Return Enhancement Action Plan and Enhancing Core Competencies Corporate Value and Return Enhancement Action Plan 5

Continuously integrating industry resources around

To continuously promote the optimization of operations standardize the seven major product lines to

corporate governance and enhance investor confidence the Company keep advanced within the industry

conducted an overall assessment on the implementation of the 2024

Corporate Value and Return Enhancement Action Plan. Meanwhile

based on its own development strategy and operating conditions

the Company has drafted the 2025 Corporate Value and Return

Enhancement Action Plan with details shown as follows: Data

communica-

tion Ethernet

physical layer Security

chips for network

communication

Ethernet switch Ethernet

chips for network network card

communication chips for network

communication

Motorcomm

Seven Major

Vehicle-borne

Ethernet physical Vehicle-borne

layer chips Product Lines Ethernet switch

Adhering to Independent Consumption chips

Vehicle-borne

Innovation Focusing on

the Principal Business

and Enhancing Core Vehicle-borne Vehicle-borne gateway chips high-speed video

transmission

Competencies chips

Industries

Telecom-

Having always been committed to becoming munication

a leader in the field of high-speed wired

communication chips the Company has insisted

on conducting persistent R&D and innovation of In 2024 relying on technological innovations reliable quality and high-quality services the

high-speed communication chips extending to Company achieved total operating revenue of RMB 396.23 million with a year-on-year increase

higher-level communication architectures based of 44.86%. In the four quarters its operating revenue amounted to RMB 72.53 million

on Ethernet physical layer chips. RMB 82.15 million RMB 111.39 million and RMB 130.16 million respectively. During

the reporting period the Company achieved steady quarter-over-quarter growth in its operating

revenue.6 Adhering to Independent Innovation Focusing on the Principal Business Adhering to Independent Innovation Focusing on the Principal BusinessCorporate Value and Return Enhancement Action Plan and Enhancing Core Competencies and Enhancing Core Competencies Corporate Value and Return Enhancement Action Plan 7

Maintaining intensity of R&D investments

2024 was the year when 2.5G network communication products were put into mass

production the operating revenue from a single product project was up to RMB 141.70 and keeping on making innovations to

million with a year-on-year growth rate of 579.31% and it was a harvest period; continuously improve independent R&D capability

The Company has remained committed to technological innovation strengthening its own performance resilience and vitality

Gigabit Ethernet physical layer chips for network communication were constantly being across industry cycles. It independently developed Ethernet physical layer IP technology which endowed the chips with functions

Regarding improved in terms of their varieties. At present there have been products with different for polarity detection and correction as well as adaptive equalization and effectively improved the accuracy and stability of data

Ethernet numbers of Gigabit ports including single port 2 ports 4 ports and 8 ports; transmission. Besides the backbones of the Company participated in the discussion for IEEE 802.3 formulation and took the lead

network in drafting a number of automotive Ethernet-related standards demonstrating the Company's profound foundation and innovative

communication strength in the technical field.chips 5-port and 8-port Ethernet switch chips were mass-produced for shipment. The YT923X To speed up the improvement of the high-speed wired communication product system and gain priority in the layout of

switch chips were launched at the end of 2024. The Company not only provided 8/16/24- markets across different fields the Company has always adhered to "market-oriented and technology-driven" strategy upheld

port Gigabit switch solutions but also significantly improved and optimized software technological innovation as the core and firmly implemented the strategy for enhancing R&D.and hardware features. As of the end of 2024 it had developed products with different

numbers of ports at varying rates including 2 4 5 8 16 and 24-port products covering

application scenarios such as commercial and enterprise networks.In 2024 the Company continuously strengthened its R&D investment with a cumulative R&D

investment of RMB 293.61 million with a year-on-year increase of 32.40% accounting

for of the current operating revenue. It applied for new invention patents and

The switch chips were launched and letters of intent were entered into with leading 74.10% 18

customers in respect of these chips. Having become one of the supporting product lines a total of 143 invention patents.of the Company's vehicle-borne high-speed wired communication chips and combined

with the mass-produced vehicle-borne Ethernet physical layer chips they further

facilitated and unified the customer needs for overall vehicle-borne Ethernet solutions;

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

Descriptions of core

Regarding SN Main purposes ApplicationsThe vehicle-borne Ethernet physical chips have been put into mass production and shipped. technologies

vehicle-borne At present 100M and 1000M products are available to the customers. Among them the

Ethernet chips YT8011A series won the "Excellent Product Award for Automotive Chips" at Editors' Choice High-performance SerDes Board level high-speed communication 1

Award by China Electronics News Agency (CENA) at 2024 Beijing Auto Show; design technology

interface between the physical layer and Full range of products

the data link layer

2 High-performance ADC design Perform digital sampling of physical

Vehicle-borne/ Ethernet

technology layer analog signals physical layer chips for network communication

Smooth progress was made in R&D of vehicle-borne high-speed SerDes video transmission

3 High-performance DAC design

Vehicle-borne/ Ethernet

Generating physical layer analog signals physical layer chips for network

chips and all the data of the test samples reached the expected design targets. technology communication

High-speed digital equalizers Recovering received signals and echo Vehicle-borne/ Ethernet 4 and acoustic echo cancellers cancellation for transmitted signals in physical layer chips for network the digital domain communication

In 2025 with BU as its important strategic pivot the Company has made special arrangements around upgrading of the product Design technology of high ehicle-borne/ Ethernet physical

matrix and expansion of the scenario-based applications with a view to creating more competitive solutions and driving sustained 5 reliability surge protection Improving the reliability of signal interfaces of the physical layer chips layer chips for network

revenue growth through technology iteration product optimization and strategic resource focus. Besides it will continuously circuits communication

develop related products to adapt to new application scenarios. Driven by 5G-A/6G wireless networks the Company will make 6 Design technology for low Generate wide-range low jitter reference Full range of products

more contributions to new quality productive forces as various new trends emerge in the Internet of Vehicles high-speed copper jitter phase-locked loops clocks

wire transmission and industrial Internet.

7 Broadband analog echo Cancel echo of transmitted signals in

Vehicle-borne/ Ethernet

cancellation technology the analog domain physical layer chips for network communication8 Adhering to Independent Innovation Focusing on the Principal Business Adhering to Independent Innovation Focusing on the Principal BusinessCorporate Value and Return Enhancement Action Plan and Enhancing Core Competencies and Enhancing Core Competencies Corporate Value and Return Enhancement Action Plan 9

Descriptions of core Attaching importance to the talent development strategy

SN Main purposes Applications

technologies and optimizing the incentive mechanism to

Vehicle-borne/Ethernet maintain stability of the scientific research team

8 Ultra-long distance Ethernet

Complete ultra-long distance (greater physical layer chips for network

transmission method than 400 m) Ethernet transmission via a communication vehicle/Ethernet private physical layer protocol switch chips for network In reliance upon its profound understanding of Ethernet related

communication communication protocols and chip design technologies the

Wire and cable defect Detect wire and cable conditions (open Vehicle-borne/ Ethernet Company has constructed mature and effective interdisciplinary 9 detection technology or short circuit) by detecting the echo of physical layer chips for network

Team with a total of 262 R&D employees

transmitted signals communication collaborative R&D and R&D talent training mechanisms thus

Vehicle/Ethernet switch chips demonstrating its own unique core talent characteristics and

with a year-on-year increase of 28

Low-to-medium power design and

verification methodology for SOCs signal for network communication advantages. It has built a highly educated and high-level R&D 10 SOC integration technology and power integrity design verification Ethernet network card chips for

accounting for 68.41% of the

team. With senior talents specializing in multiple fields including

methodology improve chip quality network communication vehicle- integrated circuits electronic engineering microelectronics Company's total employees. In that borne gateway chips

Vehicle-borne/Ethernet communications computers and information technology the team the employees holding a master's

IEEE 1588 Standard Realize precise time synchronization physical layer chips for network core technical team has rich academic knowledge and more than degree and above approximately

11 for a Precision Clock between different physical layer nodes communication vehicle/Ethernet ten years of practical experience in R&D and innovation with

Synchronization Protocol in Ethernet networks switch chips for network communication vehicle-borne a profound understanding and judgement about cutting-edge occupy 65%.gateway chips technologies and development trends in the industry constituting

Vehicle-borne/Ethernet the backbone force of the Company's R&D.Guarantee the security of Ethernet data physical layer chips for network

12 MACsec frames through identity authentication communication vehicle/Ethernet In 2024 the Company actively participated in industry-university-research cooperation in the chip design industry. Focusing data encryption integrity check replay switch chips for network

protection and other functions communication vehicle-borne on scientific innovation and talent cultivation it adhered to the concept of win-win cooperation and joined hands with many

gateway chips universities and scientific research institutions to carry out in-depth research on cutting-edge technology projects for the purpose

Design technology for Realize the applications in non-integer of promoting the joint development of the industry:

13 fractional-N phase-locked multiples of output clocks and reference Full range of products

loops clocks

LDPC/RS channel encoding Realize channel encoding and decoding lower the bit error rate of physical layer Vehicle-borne/ Ethernet 14 and decoding their low power Jointly held an unveiling ceremony at the

implementation technologies information transmission and reduce

physical layer chips for network

the power for implementation communication Shanghai Research & Development Center with Invited as one of the first member units of "Suzhou

Satisfy the core needs for real- SHANGHAI National Innovation Center par Excellence (NICE) University-Enterprise Cooperation Committee" of Suzhou

15 Vehicle-borne TSN switch time high reliability and low latency Various vehicle-borne domain conducting in-depth discussions and exchanges;implementation technology communications of modern intelligent controllers High-tech Zone to attend Suzhou High-tech Zone Industry-

connected vehicles Teaching-Research Integration Development Conference

and the "100 Parks 100 Universities and 10000 Enterprises" NANJING

Innovation Cooperation Promotion Conference;

The Company will continuously increase the investment in R&D of new products optimize existing products and provide

customers with product mixes with different performance levels and transmission rates to accommodate the changing needs of Conducted cooperation with Nanjing University

end customers. SUZHOU of Posts and Telecommunications focusing on

R&D and innovation of Ethernet transmission chip

In 2025 the Company will focus on investing in R&D of the following fields including network communication and vehicle-borne technologies. Dependent upon profound academic

products. In terms of network communication products it will continue investing in 2.5G chip upgrading and iteration continuous accumulation and scientific research strengths in the

iteration and performance optimization of Gigabit series products Ethernet switch series products and network cards. Regarding field of communication technologies the Company

the vehicle-borne products the Company will focus on building a complete ecosystem of vehicle-borne Ethernet solutions and Formally entered into cooperation with Hong HONG accelerated its iterative upgrade of technologies

creating a competitive product matrix including vehicle-borne TSN Switch and a complete product chain of vehicle-borne wired Kong Applied Science and Technology Research KONG optimized its product cost structure and enhanced

communications. In addition it will accelerate the R&D of next-generation vehicle-borne chips to support higher bandwidth and Institute on the "high-speed IO system" project. its product differentiation advantages;

multi-domain integration expand overseas certifications and applications and extend to charging piles V2X and other automotive

peripheral fields to create a complete vehicle-borne communication ecosystem. As a leading domestic leading enterprise of

vehicle-borne Ethernet chips the Company will continue to seize industry upgrading opportunities in reliance upon technological

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

global supply chain layout.10 Adhering to Independent Innovation Focusing on the Principal BusinessCorporate Value and Return Enhancement Action Plan and Enhancing Core Competencies Corporate Value and Return Enhancement Action Plan 11

In addition the Company always upheld "openness inclusiveness communication and sharing" for its R&D activities. Its internal

R&D team hosted several corresponding special technical sessions (i.e. Technical Day series activities) for technical research and

internal exchanges to empower its products the perspective of product iteration performance optimization development process

and other key aspects.Special Session of "Technical day-IR Drop" Special Session of "Technical Day - Verfication&Validation"

Strengthening brand building

and marketing network construction

and actively developing domestic and overseas markets

In the chip design industry overseas application scenarios are market layout in order to realize the transformation from

abundant and customer coverage is wide. In the process of a domestic technology-based startup to a global business

continuously consolidating and deepening its cooperation with group. Guided by market demand the Company will continue

local customers the Company always regards overseas market to reinforce its construction of new product lines continuously

development as one of the priorities for its work. improve its design schemes for its existing products and satisfy

the diverse needs of global customers with better products and

In active response to the national "Going Aboard" strategy the service systems.Company set up a development center in Singapore completed

the early team building and achieved phased results in global

business promotion. The Company also appeared at Electronica In 2024 the Company realized overseas

and 2024 IC CHINA showing its strong competitiveness and

growth potential in overseas markets. operating revenue of RMB 73.75 million

In the future the Company will continue to consolidate and with a year-on-year growth of 157.84% .expand its domestic businesses while enhancing its overseas Optimizing Financial

ManagementImproving

Promoting strategic M&A of resources around industries Quality of Earnings

and performing industrial-financial integration to Increasing

enhance competitive advantages Operational Efficiency

With the focus on high-speed wired communication as its principal business the Company will always persist in and intensify and Enhancing

its ecological construction. Drawing lessons from enterprises at different stages of development in multiple dimensions such as

scientific and technological process growth space ecological co-construction the Company will constantly pool its surrounding Competitiveness

resources consider investment and M&A tools when appropriate and speed up its supplementation of product lines and fill the

technical gaps around the upstream and downstream industries related to its principal business so as to make breakthroughs in

higher speed fields steadily promote the industrial clusters related to its principal business and enhance its core competitiveness.12 Optimizing Financial Management Improving Quality of Earnings Optimizing Financial Management Improving Quality of EarningsCorporate Value and Return Enhancement Action Plan Increasing Operational Efficiency and Enhancing Competitiveness Increasing Operational Efficiency and Enhancing Competitiveness Corporate Value and Return Enhancement Action Plan 13

Using a scientific management system to comprehensively

promote cost reduction and efficiency improvement

Relying on the DSTE management system the company drafts scientific and forward-looking strategic plans for R&D and innovation

decomposes its strategic objectives optimizes its R&D and production processes promotes its implementation of strategies

transforms them into business results and takes multiple measures to reduce costs and increase efficiency.In 2025 while making efforts for industrial diversification and product mix optimization the Company will integrate the concept of

cost reduction and efficiency improvement into all links including R&D procurement production sales and market development

in an attempt to maximize returns by streamlining investments and make every effort to create more substantial returns for its

investors.Enhancing customer diversification

and increasing asset profitability

The Company's products have been applied in thousands of customers or end customers of different fields and entered the supply

chain system of more customers. The Company can provide customized solutions according to the actual needs of its customers

to improve customer satisfaction and product adaptability. At present the Company's products have been applied in thousands of

customers or end customers of different fields including H3C Xiaomi and Nova. Those products have been included in the lists of

more customers' suppliers for product testing and shipment. Optimizing financial management capability and improving

internal operational efficiency

In 2024 the Company's sales to the top five customers were approximately RMB 222.78 million

accounting for 56.23% of the total annual sales. Financial management capability affects the Company's daily operational efficiency and overall

business performance. As of the end of 2024 the Company's overall asset-liability ratio was about

In 2025 the Company will accelerate the R&D of new products and enhance its efforts for customer development at home and 7.77% ; the balance of accounts receivable was RMB 80 million and the turnover rate of accounts

abroad in an attempt to increase the return on assets including three aspects: receivable was approximately 5.67 ; the inventory balance was about RMB 150 million and the

inventory turnover was approximately 1.49 .In 2025 the Company will continue to strengthen optimization of the financial management and improve its operational efficiency

including:

S t re n g t h e n i n g i n - d e p t h Actively exploring new customers Based on seven product lines

cooperation with existing increasing the data communication market continuing to diversify and

Promoting industry-finance In terms of accounts receivable For inventory turnover ratio

customers satisfying new share and focusing on the market of optimize the product mix by

integration strengthening turnover ratio enhancing the strengthening del icacy

customer needs in a timely automotive chips; actively strengthening expanding new downstream

informatization construction credit evaluation mechanism management of the supply

manner while increasing the cooperation with various car companies appl icat ion scenar ios so

of financial management optimizing credit policies chain continuously improving

existing market share and and related suppliers that vigorously that the related products of

opt imizing the forward- d e v e l o p i n g f a v o r a b l e inventory management

create an excellent supply promote development in smart driving; the Company in the field of

l o o k i n g a n d p r o c e s s collection procedures doing a and achieving quick market

chain ecosphere together actively deploying the relevant markets of data communication may

management of planned good job in the management penetration in compliance

with customers; data centers and accelerating customer be applied in households

expenditures and providing of payment collection and w i t h t h e s a l e s m o d e l

diversification through implementation of enterprise networks and

more accurate f inancial accounts receivable for "focusing on distribution

strategic cooperation projects; more fields.support for the management orders and continuing to supported by direct selling".to make predictions; optimize its cash flow;14 Optimizing Financial Management Improving Quality of EarningsCorporate Value and Return Enhancement Action Plan Increasing Operational Efficiency and Enhancing Competitiveness Corporate Value and Return Enhancement Action Plan 15

Reasonably planning capital stock

and increasing capital utilization rate As of the end of 2024 the balance of

the Company's monetary fund was

The Company attaches great importance to the reasonable planning approximately RMB 740.15 million Optimizing Corporate and use of its capital stock. In 2025 the Company will continue to

strengthen cash management improve the capital utilization efficiency and the balance of financial assets Governance and

and better realize fund preservation and appreciation. On the premise held for trading amounted to RMB

of its fund liquidity and security the Company will invest part of its idle Enhancing the Awareness

self-owned funds in banks' wealth management products with certain 581.89 million.returns. of the "Key Minority"

Strengthening the efficacy of raised funds and consolidating the

ability to manage projects invested by raised funds

In 2025 the Company will strengthen the efficacy of its raised funds and promote its principal business through the

implementation of these projects in strict compliance with relevant laws and regulations normative documents and the Company's

Management Measures for Corporate Fundraising to realize expected returns of the projects and enhance its overall profitability.Some idle raised funds will be properly used for cash management to increase capital efficiency on the premise of not affecting

the construction of fundraising projects and the safety of raised funds.The Company has always regarded reliable governance

as an important cornerstone for achieving high-quality

development continuously improved its management as a

modern enterprise constantly standardized its corporate

governance structure strengthened its construction and

efficient operation of the Board of Directors established

and improved its internal governance system. It has actively

promoted the diversification of its Board of Directors.During the reporting period the Company convened

3 shareholders' meetings 8 meetings of the Board

of Directors 5 meetings of the Audit Committee 2

meetings of the Nomination Committee 3 meetings of the

Remuneration and Appraisal Committee.In the future the Company will continue to focus on the diversification of its Board

of Directors build a leadership core with more insight and decision-making

power facilitate effective implementation of its strategies and steadily promote

its sustainable development in the industry.16 Optimizing Corporate Governance Optimizing Corporate Governance Corporate Value and Return Enhancement Action Plan and Enhancing the Awareness of the "Key Minority" and Enhancing the Awareness of the "Key Minority" Corporate Value and Return Enhancement Action Plan 17

Promoting improvement of the internal governance Increasing the normative consciousness of directors

mechanism supervisors and senior executives

In 2024 the Company performed its management based on the ESG promoted the ESG governance The Company pays close attention to the standardization of duty performance by the "Key Minority" including

mechanism with the Board of Directors assuming the main responsibility set up the Strategic Investment its controlling shareholders actual controllers directors supervisors and senior executives and steadily

and Sustainable Development Committee through the rules of procedure for three meetings and amendment carries out policy research and study to help the "Key Minority" adapt to the changes in the regulatory

to the Articles of Association and gradually built/improved the three-tier management architecture with environment in a timely manner. In 2024 the Company continuously strengthened the awareness of the "Key

supervision and decision-making by the Board of Directors coordinated management by the Strategic Minority" depth and frequency of daily learning and training:

Investment and Sustainable Development Committee and collaborative implementation by the ESG Working

Group under the Board of Directors.With a systematic structure and supporting processes the Company The Office of the Board of Directors published 12 editions of the Corporate Governance Monthly and promptly

strived to ensure that ESG matters are accurately implemented at all levels and to build a solid institutional sent them to the directors supervisors senior executives and relevant personnel to ensure that the "Key

guarantee for long-term sustainable development. Minority" understand the latest laws and regulations continuously increase the awareness of "improving

quality increasing efficiency and rewarding" and continuously better the operations management. The

In 2024 with its Wind ESG rating upgraded from BB to BBB the Company won 2024 5th Cailian Press ESG Corporate Governance Monthly includes multiple modules including industry information policies systems

Zhiyuan Award: Corporate Governance (G) Pioneer Award and the Second Guoxin Cup * ESG Golden Bull typical cases corporate governance and market value analysis.Award. Relying on its past accumulation through practices the Company will continue to fully integrate the

ESG concept into its corporate management system and business operation process and actively respond to In the future the Company will continue to deeply improve its internal training system actively organize

the concerns and expectations of its stakeholders about its sustainable development capabilities. online and offline training for the "Key Minority" including directors supervisors and senior executives

and further optimize the reporting mechanism to accurately push information such as changes in

macroeconomic policies latest development trends of the industry updates of various regulatory laws and

regulations and issues particularly on investors in order to help the management improve their abilities to

Ensuring that independent directors perform their perform their duties and effectively enhance their scientific accurate forward-looking decision-making.duties according to law

The Company has implemented the reform requirements for the independent director system and built Internally the Company organized 27 employees to sign up for special training

an independent director working group to ensure that independent directors can keep abreast of its of the CSRC SSE and China Associations for Public Companies mainly covering

development and operations in a timely manner through monthly regular meetings special meetings and "Nine Articles of NPC" corporate governance performance of duties by directors

irregular communications of the independent directors. Besides the Company provided comprehensive and

convenient conditions for its independent directors to perform their duties and designated the Office of the supervisors and senior executives investor relations management and industrial

Board of Directors as bridge for communications to effectively protect the right of its independent directors M&A with an attendance rate of 100% .to know and facilitate its independent directors to carry out on-site work for no less than 15 days every year.In the future the Company will continue implementing the reform requirements of the independent

director system further leverage the professional expertise of its independent directors regularly

evaluate its independent directors' independence ensure that they can perform their duties independently Improving the internal control system

and fairly to provide a solid guarantee for its steady development.In 2024 the Company revised 24 rules including the Articles of Association Rules of Procedure for the Board of

Directors Rules of Procedure for Shareholders' Meetings Rules of Procedure for the Board of Supervisors Related

Transaction Management System Foreign Investment Management System External Guarantee Management

In 2024 it held a total of 20 regular meetings of independent directors to System and Management Measures for Raised Funds according to the Company Law of the People's Republic of

China Securities Law of the People's Republic of China Rules Governing the Listing of Stock on the Shanghai Stock

fully report its operating conditions and major matters to the independent Exchange Guidelines for the Articles of Association of Listed Companies Measures for Independent Directors of Listed

directors in time. Companies Code of Corporate Governance for Listed Companies Guidelines for Self-regulation of Listed Companies

on the Shanghai Stock Exchange No.1 - Standardized Operations and the Guidelines for Self-regulation of Listed

Companies on the Shanghai Stock Exchange No. 5 - Transactions and Related Transactions.In 2025 the Company will continue to optimize its construction of the internal control system revise and

improve the internal control system in a timely manner ensure its standardized operation protect the rights

and interests of its investors strengthen its internal control supervision and inspection improve its internal

control management effectively prevent various risks and promote its healthy sustainable development

according to a series of latest regulatory rules including the new Company Law and the Guidelines for the

Articles of Association of Listed Companies.18 Improving Information Disclosure Corporate Value and Return Enhancement Action Plan and Building a Multi-Level Investor Communication Mechanism Corporate Value and Return Enhancement Action Plan 19

The Company also attaches great importance to the investor relationship management and develops multi-platform and multi-

level investor communication channels through statutory information disclosure collective performance briefings its official

website its official account roadshows/reverse roadshows etc. to facilitate the investors' understanding of the Company. The

Company persistently enhances its investor research efforts with a view to narrowing information gaps in response to its investors'

expectations.Increasing the readability of information disclosure

The Company actively explores and diversifies its presentation and dissemination forms of the Company's

information disclosure flexibly demonstrate the Company's operating conditions R&D progress and product

status to the investors in diverse manners and highlight key information points to reduce the investors' reading

burden.

(1) The Company interpreted the 2024 annual report and semi-annual report more intuitively in visual forms

like Infographic helping its investors better understand its operating result financial status and development

strategy;

(2) The Company presented its information in the form of PPT + videos through data charts and scenarios in its

collective performance briefings quarterly performance briefings and irregular investor research activities to

make the information more intuitive and comprehensible;

(3) Disclosed 2024 ESG Report of Motorcomm Electronic Technology Co. Ltd. to demonstrate its performance

and fulfillment of social responsibilities to its investors in an all-round manner.Making the information more accessible

Improving Information In addition to legal information disclosure channels the Company also provides more platforms for

Disclosure and Building communicating and exchanging with the investors through the official website official accounts and so on. The Company will set up places for displaying its development histories diversifying the channels for the investors to

a Multi-Level Investor obtain information effectively conveying its value and building market confidence:

Communication Mechanism The Company uses its WeChat official account "Motorcomm Electronic" to promptly push its latest developments and transmit cutting-edge industry trends to the investors. Besides the Company optimizes the "Investor Relations"

column of its official website under which five sub-columns namely Corporate Announcement Stock Information

Investor Relations Social Responsibility (ESG) And Investor Contact have been set up.The Company always places information disclosure and In the future the Company will continue to focus on improving the readability of information disclosed and

the convenience of information acquisition and further provide true accurate complete timely and effective

investor relations management in an important position information for the investors' value judgment and investment decision-making.and strictly abides by the Rules Governing the Listing of

Stocks on Shanghai Stock Exchange STAR Market and its Strengthening investor communications

Information Disclosure Management System and other

In 2024 the Company arranged a series of investor relations activities to promote the establishment of long-

relevant regulations. On the basis of earnestly fulfills its term stable and mutually trustworthy relationships with the investors including holding 3 online performance

information disclosure obligations it will continuously briefings receiving 280 investor surveys publishing 68 survey records answering 147 questions at E-interactive

strengthen its investor research efforts and disclose with a response rate of 100% answering 158 phone calls from the investors and maintaining full communications

with the investors through public email and other means. In [December] 2024 the Company won the "Snowball

material information such as regular reports and Annual Gold Medal List * 2024 Investor Relations Management Award".temporary announcements. In the future it will continue to strengthen the transparency of its information disclosure adhere to the basic

principles of conciseness clarity and easy-to-understand and protect the rights and interests of its minority

shareholders.20 Sharing the Benefits between the Management and Shareholders Sharing the Benefits between the Management Corporate Value and Return Enhancement Action Plan and Actively Conveying the Company's Value and Shareholders and Actively Conveying the Company's Value Corporate Value and Return Enhancement Action Plan 21

Establishing a normalized equity incentive mechanism

and maintain consistency among the interests of the

management and the shareholders

Sharing the Benefits between

In 2024 the Company drafted and implemented 2024 Restricted Stock Incentive Plan. Taking the growth rate of

the Management operating revenue and shipment quantity of vehicle-borne chips as the company-level performance appraisal

targets it synchronously defined individual-level appraisal requirements and strengthened its strategic layout in

and Shareholders and Actively the field of vehicle-borne chips on the basis of its total revenue target.Conveying the Company's In the future the Company will actively explore and establish a sound long-term incentive and restraint

mechanism firmly retain key talents while attracting outstanding talents to gather effectively unify the

Value interests of itself its shareholders and employees so that all parties can jointly focus on its long-term

development and ensure that its established development strategies and business objectives can be realized.Considering both development of the Company and

The Company will continue improving the business

shareholder interests actively conveying value of the

management model optimize the remuneration and

incentive system strengthen the benefit sharing mechanism Company

between the management and shareholders and actively The Company attaches great importance to paying appropriate returns on investment to shareholders and has

guide the "Key Minority" to assume corresponding drawn up the Shareholder Dividend and Return Plan for Three Years after Listing of the Company in combination

with its Articles of Association. On the premise of satisfying the conditions for cash dividends the Company will

responsibilities for promoting the Company's long-term give priority to profit distribution with cash dividends maintain the continuity and stability of the profit distribution

stable development. policies and take into account its long-term interests the overall interests of all shareholders and its sustainable

development.The Company will establish a stock price stabilization mechanism according to the capital market conditions

clarify over significant decline in short-term stock prices fall below the issue price or the net asset per share

as an initiation condition establish corresponding trigger mechanism and take corresponding stock price

stabilization measures including stock repurchase to stabilize stock prices and enhance investor confidence.Other Matters

The Company will continue to focus on the principal business improve the

operations and earnestly fulfill the responsibilities and obligations as a listed

company through favorable operations management standardized corporate

governance and positive investor returns repay the investors for their trust

maintain the Company's good market image and facilitate steady and healthy

development of the capital market.The Company's planning development strategy and other forward-looking

statements involved in this Report are not fait accompli and do not constitute a

substantial commitment of the Company to investors.22 Corporate Value and Return Enhancement Action Plan

Tel：021-50561032 Fax：021-50561703

Email: ytwdz@motor-comm.com

Address: Room 202 No. 78 East Jinshan Road Suzhou High tech Zone Jiangsu Province

Building 18 Lane 388 Shengrong Road Pudong New Area Shanghai

F/9-10 Building B Lane 2000 Xinjinqiao Road Pudong New Area Shanghai