About HG SEMI Company

The Group is mainly engaged in the design, development, manufacture, subcontract service and sales of semiconductor products in the People's Republic of China (“China”), including light-emitting diode (“LED”) lamp beads and fast charging products. The Group's business includes LEDs, gallium nitride (GaN) components, fast charging products, and other types of semiconductor-related products. Gallium nitride is considered one of the most important representatives of third-generation semiconductor materials. Compared with previous generation semiconductor materials, gallium nitride has a wider energy gap, greater breakdown voltage, enhanced power conversion efficiency, and stronger thermal stability at high temperatures. On July 16, 2021, the Company entered into a framework cooperation agreement with a Hong Kong statutory body dedicated to helping Hong Kong enterprises enhance their competitiveness through advanced technology applications and innovative services. Under the agreement, the company will establish an advanced intelligent production line for fast charging products in Hong Kong, China, with the support of partners. Furthermore, the company will introduce leading talents in the semiconductor industry (such as Mr. Zhang Rujing, the company's senior consultant and founder of SMIC Integrated Circuit Manufacturing Co., Ltd.), and other experts from different countries, and will cooperate fully with partners to support the development of the Microelectronics Center, which will involve developing next-generation semiconductor cooperative technology and promoting the collaborative development of Hong Kong, China and the Greater Bay Area in mainland China in terms of industry, education and research. On July 27, 2021, Xuzhou Jinshajiang Semiconductor Co., Ltd. (“Xuzhou Jinshajiang”), a wholly-owned subsidiary of the Group, signed a strategic cooperation agreement with Shenzhen Romase Technology Co., Ltd. and Beijing Hongzhi Telecom Technology Co., Ltd. to jointly cooperate in the development of gallium nitride power devices, and to provide the development of chipset system solutions for the further application and promotion of fast battery charging products in China. Xuzhou Jinsha River will be responsible for providing semiconductor, gallium nitride-related products and chipset system solutions for fast battery charging. Additionally, FastSemi Holding Limited, a wholly-owned subsidiary of the Company, has invested in Visic Technologies Limited (“ViSiC”) (third-generation semiconductors, one of the largest players in the field of gallium nitride power devices). The main benefits of ViSiC's investment and cooperation are listed below: First, the Group currently masters the key technologies for the transformation of next-generation electric vehicles (“electric vehicles”) to open up new markets in China. The Group will use the ViSIC product portfolio to enter the design field of electric vehicle companies in China because they all have blueprints for entering high voltages (from 300V to 400V and 800V systems). Since ViSiC is in a leading position in high-voltage equipment for fast charging applications, and its leading position in the German electric vehicle supply chain, and the Group has a GaN solution factory in China, the Group will benefit from early entry into the Chinese electric vehicle market and become the main viable supply chain provider for third-generation semiconductor GaN solutions to major electric vehicle companies. Second, ViSiC's expertise in manufacturing processes will accelerate the Group's factories' expertise in integrated circuit design for high-voltage GaN equipment, and develop customized products for specific customers for next-generation solutions. Additionally, FastSemi Holding Limited invested in GaN Systems Inc. (“GaN Systems”), a leader in GaN technology, in November 2021, and agreed to make a strategic investment by subscribing to GaN Systems' F-2 series convertible preferred shares. After the investment is completed, the Group and GaN Systems may have the opportunity to combine their respective advantages to create synergies benefiting both. In particular, GaN Systems can provide the Group with specialized technical support on process definition and qualifications for GaN device manufacturing (from Ottawa, California and Taiwan) to achieve best-in-class production yield goals and target qualifications. In addition, GaN Systems proposes that a subsidiary of the Group become GaN Systems' foundry partner and enter into a licensing agreement that allows the Group to manufacture semiconductor components using several GaN Systems' GaN technologies. Production facilities Zhuhai Hongguang's production base is located in Nanping Science and Technology Park, Zhuhai, China. We use high-quality raw materials, equipped with advanced production equipment, modern quality management and a professional engineering team to innovate and create high-quality products in Guangdong. Zhuhai Hongguang has 28 patents related to lighting in China. Our philosophy We are determined to commit to product quality and the environment. We have obtained ISO 9001:2015 and IATF 16949:2016 quality management system certifications to ensure that the company has strict mechanisms to control our waste quality, production, and performance. In addition to the passionate pursuit of quality, we also never forget to provide customers with sales prices, more timely delivery, more attentive customer service, and a richer product catalog. The goal intention of the Zhuhai Hongguang management team, which has many years of LED manufacturing and experience, is to push the company to a higher level, strive for a leading position in the industry, and provide customers with a better, beautiful and bright life.