To Our Shareholders

We sincerely appreciate your continued support. We are pleased to present the interim financial results for the 44th fiscal period.

The business environment for our group, particularly in the semiconductor industry, anticipates a society with increasing demand for semiconductors in various scenarios, leading to a favorable outlook in the medium to long term. However, in the current fiscal year, there is a phase of inventory adjustment, resulting in a significant decrease in demand for semiconductor manufacturing equipment compared to the previous period. On the other hand, we have maintained revenue by expanding sales into relatively robust markets such as power semiconductors and the solar panel market. Despite the challenging situation, we have continued proactive investment in increased production capacity to capture opportunities for the semiconductor market's resurgence beyond 2025. Additionally, to mitigate geopolitical risks, we have progressed steadily in establishing production bases in Japan and decided to set up a second base in the southern part of Malaysia for power semiconductor substrates manufacturing.

In the midst of the ongoing impact of changes in the social environment due to post-COVID developments and the Ukraine invasion, we are pleased to report that this interim financial statement reflects the achievement of the targeted sales and profits.

We express our gratitude for the understanding and support of our shareholders, which have been crucial in implementing these measures.

Our group will continue to pursue business growth, striving to be a company that provides shareholders with the joy of growth. We sincerely ask for your continued exceptional support.

He Xian Han, President and Group CEO
December on an auspicious day, 2023