Tech Semiconductors to implement new governance and shareholder return policies

Tech Semiconductors has formally implemented a new Investment and Financing Management System, effective October 2025, to standardize investment and financing activities, manage risks, and ensure compliance. This system sets thresholds for investment projects requiring board or shareholder approval. Asset-related transactions exceeding 10% of audited net assets or 10 million yuan will trigger board review, and those over 50% or 50 million yuan will require shareholder consent. Debt financing exceeding 10% of net assets or 10 million yuan, or 50% or 50 million yuan, also requires board or shareholder approval, respectively.

Concurrently, the company issued its "Future Three-Year (2025-2027) Shareholder Return Plan," emphasizing continuous and stable dividend policies, prioritizing cash dividends. The plan stipulates that cash dividends will be at least 10% of annual distributable profits, with a three-year cumulative payout of no less than 30% of average annual distributable profits, subject to specific conditions including positive distributable profits and an unqualified audit report.

Additionally, a "Major Error Responsibility System for Annual Report Information Disclosure" has been established to enhance transparency and accuracy in financial reporting. This system, also effective October 2025, outlines the accountability and penalties for individuals responsible for significant errors or non-compliance in annual report disclosures. Furthermore, new regulations governing shareholding and changes for directors and senior management, effective upon board approval, impose restrictions on share transfers and reporting obligations for insider trading.