In the second half of the year, dozens of models, including the luxeed sedan released by Huawei and Chery, will be equipped with the 800V silicon carbide platform. How does the company plan to expand production capacity to meet their needs?

Tianyue Advanced: Dear investors, hello! As a new technology in the field of electric vehicles, 800V brings higher efficiency and performance compared to the traditional 400V voltage system. Benefiting from the characteristics of silicon carbide materials themselves, compared with traditional silicon-based power semiconductor devices, silicon carbide power devices have obvious advantages in voltage resistance, switching loss and high temperature resistance, which helps to achieve lightweight and efficient power electronic drive systems of new energy vehicles. They are widely used in key electric drive and electronic control components such as the main drive inverter, OBC, DC/DC converter and non-onboard charging piles of new energy vehicles. According to Yole's forecast, the scale of silicon carbide power devices in the automotive market is expected to reach US$4.986 billion in 2027. The company began to increase the construction of new production capacity in 2022. At present, the company's production expansion is going smoothly, and its production capacity and output are increasing rapidly. Since the first quarter of 2022, the company has achieved quarterly revenue growth for four consecutive quarters. The company has made good progress in delivering products to customers including Infineon, especially the company's Shanghai Lingang factory, which will start product delivery in May 2023 and is still in the stage of rapid production ramp-up, will effectively guarantee the smooth delivery of customers' long-term and short-term orders. According to the current market demand, it is estimated that the annual production capacity of 300,000 conductive substrates originally planned for the Lingang factory will be achieved ahead of schedule, which will provide a solid foundation for the smooth delivery of the company's long-term orders. At the same time, the company's newly built Lingang factory is an advanced digital factory, which can accelerate the increase of production capacity based on modular design. At present, the demand for silicon carbide in downstream application fields maintains a strong growth trend, and the company's downstream customers have clear expansion plans, which will drive the long-term and sustained growth of demand for the company's products. The company will steadily increase production capacity, increase market share, and promote the penetration and application of silicon carbide according to the development of the industry. At the same time, the company's 8-inch products are already capable of mass production. The company has long-term cooperation with downstream customers, among which Infineon announced that the company will provide 8-inch products to help its future 8-inch wafer development. Thank you for your attention!