Shanghai YCT Electronics Group Co., Ltd.

Shanghai YCT Electronics Group Co., Ltd. is a prominent authorized distributor of electronic components and a self-developed integrated circuit (IC) design manufacturer based in China. The company specializes in the distribution of a wide range of electronic components and the independent research and development (R&D) and design of automotive analog chips. It is listed on the ChiNext board of the Shenzhen Stock Exchange since 2021. The company's main business lines include electronic component distribution and self-developed IC design. In the distribution segment, it partners with well-known international manufacturers and leading domestic semiconductor firms, offering a diverse product portfolio that encompasses optoelectronic devices, memory chips, and various semiconductor components. The self-developed IC products, primarily targeting the automotive electronics sector, include motor driver ICs and LED driver ICs, which have been adopted by major automakers. With a strong technical team and established relationships with suppliers and customers, the company focuses on providing comprehensive supply chain and technical services, enhancing its market position and competitiveness in the industry.

（一） Electronic Components Distribution Business 1. Business Model: "Supply Chain Services + Technical Services" Due to the vast number of electronic component product categories, complex performance parameters, and high degree of specialization, in addition to providing basic supply chain services, the company also offers corresponding technical services when conducting distribution business. Technical support has become one of the core competitive advantages of authorized distributors. By providing competitive "Supply Chain Services and Technical Services" to customers, authorized distributors drive the distribution business and serve as a crucial link connecting the upstream and downstream of the industrial chain. 2. Rich Supplier and Customer Resource Advantages With over 20 years of deep cultivation in the industry, the company has maintained partnerships with most of its upstream suppliers for more than 10 years. These stable relationships ensure the company's sustainable development. The company holds authorized distributor qualifications for nearly a hundred renowned domestic and international original equipment manufacturers (OEMs). The downstream application scenarios for its distributed products are diverse, covering automotive electronics, industrial control, consumer electronics, home appliances, and other fields. Leveraging the OEMs' advantages in technology, brand, and scale, the company continuously expands into mid-to-high-end downstream product markets, maintaining its core competitiveness in the distribution business. Simultaneously, by staying abreast of new products and technologies developed by OEMs and industry trends, the company consistently provides high-level, leading-edge technical services to downstream customers globally, playing a vital role in its sustained development. 3. Technology Integration Capability Advantage As the electronic components distribution industry evolves, technology integration capabilities significantly impact market expansion capabilities and customer stability, ultimately determining the company's ability to secure more product resources from upstream suppliers. Given the company's strong technical advantages and accumulated experience in electronic component solution design, it also accepts client commissions to provide system-level hardware and software solution design and development—from initial verification to mass production stages—delivering competitive design solutions. As a promotional distributor, the company strategically introduces new product lines based on industry trends. Utilizing its accumulated high-quality customer resources and technical application solution experience, it rapidly assists new product lines in completing customer certification and achieving mass production, helping OEMs quickly penetrate niche markets. Furthermore, while meeting customer technical requirements, the company provides cost-effective products and technical solution services. By establishing the "OEM-Distributor-End Customer" value chain, it achieves a win-win-win scenario for all three parties, continuously enhancing its core competitiveness. (二) Self-Developed IC Design Business 1. Core Technical Team Reserve Advantage Analog chip design presents high technical barriers. The R&D process requires continuous adjustments based on actual parameters and accumulated experience, significantly increasing the design complexity. Cultivating a senior analog chip engineer typically takes 10-15 years. The company places high importance on nurturing R&D talent and has established a high-caliber, specialized core technical team. Core members possess prior experience at internationally renowned manufacturers, demonstrating solid R&D capabilities and extensive industry experience. Other team members each have at least 5 years of industry experience, collectively forming the backbone of the company's R&D strength. 2. Customer Resource Advantage and Demand Integration Capability The company's distribution and self-developed IC businesses exhibit strong synergy. As a distributor deeply rooted in the automotive electronics field for many years, it possesses a rich and stable customer base. Promoting self-developed IC products alongside its distribution business accelerates product adoption. The company's self-developed IC products cover leading domestic automotive manufacturers such as XPeng, NIO, AITO, Li Auto, BYD, Geely, Great Wall Motor, and Changan Automobile, and international manufacturers including Hyundai, Kia, and Toyota. Leveraging its customer resource advantage and the first-mover advantage of its IC products, the company is progressively expanding deep cooperation with major brands, achieving sustained market scale expansion. Utilizing the channel advantages of its distribution business enables rapid understanding of end-market trends. Based on customer requirements and market research, the company defines products, accelerates update and upgrade cycles, and achieves precise alignment with customer needs. Concurrently, the company possesses strong sales and differentiated service capabilities. Through information resource integration, it promptly and accurately identifies business opportunities, strengthens customer relationships, and achieves sustained order growth and business continuity. 3. Technology R&D Advantage The company focuses on technological R&D and product innovation in the power management IC (PMIC) domain. Grounded in technological innovation and long-term accumulation, it has built an internationally competitive portfolio comprising four major product lines. Multiple self-developed high-performance, low-power PMICs have passed the AEC-Q100 automotive-grade certification and achieved mass adoption in mainstream domestic and international automakers, gaining market recognition. To maintain its technological leadership, the company continuously increases R&D investment. During the reporting period, R&D expenses reached RMB 79.2857 million, a year-on-year increase of 57.12%. Leveraging rich R&D experience and deep strategic cooperation with wafer foundries, the company effectively enhances process development efficiency and accelerates product iteration. Through full-process cost optimization, it provides customers with high cost-performance products, continually consolidating its leading position in the domestic automotive PMIC market. Additionally, the company has launched the "Automotive-Grade Analog Chips+" comprehensive layout plan, formulating a long-term development strategy dedicated to developing a full range of products from analog chips to functional module-integrated small-scale SoCs. 4. Supply Chain and Quality Control Advantage, Ensuring Superior Product Performance The company has established a comprehensive product control system where quality management runs through the entire product R&D and production process. When collaborating with suppliers, the company selects well-known wafer foundries and packaging & testing (OSAT) partners renowned for high reliability and yield rates, maintaining long-term stable relationships. It has also purchased dedicated testing equipment allocated to specific testing partners to secure dedicated capacity. Furthermore, each new product undergoes a full suite of high-standard tests to ensure compliance with reliability standards such as the automotive-grade AEC-Q100, further guaranteeing product quality and reliability, thereby enhancing the competitiveness of the company's products.