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Management review of Suzhou Gushu Board of Directors in 2020.
The business review of Suzhou Gushu (002079) Board of Directors in the first half of 2020 is as follows:

I. Overview

In 2020, the group company will continue to implement the "Integrity-Quality Year". At the same time, it is also the eleventh year for the company to practice the Chinese-style management-"home" cultural management mode: to interpret and practice the excellent Chinese traditional culture, and to be more and more happy on the road of integration of knowledge and practice.

In 2020, we always adhere to the family motto of "seeking from the inside-altruism", continue to practice the Chinese-style "home" cultural management model, fully implement the five-person activity of "everyone is a safety officer, everyone is an engineer, everyone is a quality inspector, everyone is a public works worker and everyone is a cleaner" advocated by Chairman Wu Nianbo, and take the opportunity of "lean improvement" to combine the inheritance of Chinese traditional culture with "perfect governance". Through special management projects such as "anti-corruption", "company branches" and "honesty and quality month", the production, operation and management mode of "reducing waste and reducing costs" will be comprehensively promoted to improve the overall management level. Under the leadership of the board of directors and with the joint efforts of all family members, the company is committed to the R&D development and production of automotive electronic products, new energy LOWVF products, 5G communication components and high-voltage silicon carbide products, and the manufacturing process and engineering have accelerated to the direction of systematization, informationization, intelligence and automation, and the sales of automotive products have increased steadily.

* * * In the first half of 2020, the company realized an operating income of 721965,300 yuan, a year-on-year decrease of 20.76%, a total profit of 59.9829 million yuan, a year-on-year decrease of 19 15%, and a net profit of 53.2762 million yuan. The basic earnings per share was 0.0640 yuan, an increase of 3.39% over the same period last year.

In the first half of 2020, the company was rated as "Top Ten Power Device Enterprises in China Semiconductor Industry in 2020" and "First Prize for Comprehensive Contribution in 20 19".

Three. Analysis of Core Competitiveness (I) Brand Advantage and Innovation Advantage The company has the most perfect quality, environment, information security and occupational safety and health management system in the industry. т 9001ISO 14000, OHSAS 18000, IATF 16949, QC080000, ISO2700 1 quality certification system ensures the technical leadership and quality stability of products. In terms of diode manufacturing capacity, the company has a world-class level, and the core technology of more than 2,000 specifications of its chips is in the hands of the company. The company has a large number of patented technologies with independent intellectual property rights. In the first half of 2020, the company applied for 20 patents, including 20 national patents (3 invention patents, utility model 17) and 0 international patents, and the company accumulated 187 effective patents. In the first half of 2020, the company was rated as "Top Ten Power Device Enterprises in China Semiconductor Industry in 2020" and "First Prize for Comprehensive Contribution in 20 19". The company is the top ten semiconductor power device enterprises in China, the top ten well-known semiconductor enterprises in China electronics industry, the top 50 innovative enterprises in China electronic information industry, the high-tech enterprises in Jiangsu province and the vice-chairman unit of China Semiconductor Discrete Devices Association. Some of the diode products of the top ten companies in the world come from Suzhou solid technetium. The company has a world-class level in diode manufacturing and the most distinctive in integrated circuit manufacturing. The company has mastered more than 2000 kinds of chip core technologies. According to the statistics of China Semiconductor Industry Association (CSIA), the company's diode sales ranked first in China for ten consecutive years. As early as 2009, the company was rated as an innovative enterprise in science and technology. QFN and SiP of IC package are the most distinctive, and their brand influence is further enhanced, and their leading position in the industry is increasingly consolidated. It will gradually become the first in China in terms of cost and scale, and its business covers international and domestic high-end civil customers, international leading semiconductor peers (OEMs) and world-renowned automobile customers. The main customers include various domestic and foreign enterprises, such as Visteon, HW and Apple. In 2007, the company has the most perfect quality (including automobile quality management system), environment, information security, occupational safety and health and environmental material management system in the industry, which ensures the leading technology, stable quality, environmental protection, information security and employee health of products. 20 19, the company strategically develops the high-end product market. After updating the IATF 16949 standard, the company successfully upgraded to the latest IATF 16949 standard in 20 18, which was recognized by international automotive electronic customers. In 20 19, the shipment volume increased greatly and the market share increased continuously. In the first half of 2020, although some foreign factories cut production due to the epidemic, which delayed the listing of some new models, the shipment of our automobile products remained basically unchanged. (II) Advantages of Innovation and Technology R&D With the rapid development of China's economy, the shortage of high-end semiconductor and integrated circuit talents in China has become prominent. The competition of enterprises is actually the competition of technological innovation, and the competition of technological innovation lies in the innovation of talents. While paying attention to the cultivation and use of talents, we pay more attention to cultivating a knowledgeable and innovative talent team. The company's leadership team unified their thinking, made decisive decisions and boldly implemented the talent project. Actively introduce all kinds of professional technicians, set up a special technical team for automotive electronics and integrate R&D teams of various business divisions, forming a complete R&D and technical service system from wafer design, R&D to packaging product development, and from pre-sales technical support to after-sales technical service, which provides a strong guarantee for the company's new product development, technical bottleneck breakthrough, market expansion and many other aspects. Take the lead in entering the "automotive electronic products" industry and become the first-class supplier of Visteon and Flextronics. In 2020, the company will build the Group's R&D center laboratory according to the international first-class automotive electronics laboratory standards, which will be divided into reliability laboratory, failure analysis laboratory, simulation laboratory and comprehensive R&D laboratory, and continuously upgrade the one-stop product experimental application platform to meet various needs including product function and environmental testing, physical and chemical failure analysis, product electrical, thermal and mechanical stress simulation, etc. The company's newly-built R&D center laboratory provides comprehensive and multi-platform technical service guarantee for R&D chip design, device packaging, MEMS, new energy, terminal sales and service requirements. (III) Product Market Advantages The company adheres to the concept of "only weak ideas, no weak market" of Chairman Wu Nianbo, actively explores the market, seizes opportunities, and pursues corporate values "The value of an enterprise lies in the happiness of employees and the touch of customers". After ten years of building a happy enterprise model and studying the traditional culture of China, the company has no rival in business philosophy, only as a learning object or partner. In 20 18, the company took the lead in becoming a first-class supplier in the automobile market. In 20 19 years, Flextronics, Visteon and other automobile customers quickly mass-produced and grew steadily. In 2020, we turned the epidemic into a turning point. With the strength of solid technetium, world-class automobile customers in many overseas regions, including Denso Japan, realized that solid technetium attached great importance to product quality and started product certification procedures. In the first half of 2020, despite the constant epidemic situation and large market fluctuations, ic production lines continued to produce at full capacity, and the output and demand continued to increase, benefiting from the localization of semiconductors. The potential of existing packaging products has been further tapped, QFN packaging has been further refined and strengthened, the development of new products of power-type self-owned products has been intensified, and the MEMS production line has accelerated the launch of new products and further expanded its scale. In 2020, the company will focus on the research and development and mass production of stacked microphone sensors based on MEMS, as well as the mass production of automobile tire pressure sensors. The new generation bypass integrated module suitable for the next generation of energy-saving solar panels has achieved the highest power density and the best cost in the industry, and many customers have started mass production. Nearly 10 products have obtained H customer certification and have started mass production. Through total lean production, the efficiency of production line is continuously improved, AICS resources are integrated, and overseas superior resources are brought into play. At present, more than 70% of the company's sales markets are in the United States, Japan, South Korea and Europe. The company is actively developing and exploring the domestic market. Based on the company's overseas market experience, "solid technetium" brand and good reputation, the domestic market should have broad prospects. (IV) Advantages of foreign cooperation At present, the competition pattern of the global integrated circuit industry is gradually changing from oligopoly to oligopoly alliance. The company firmly grasps the rare opportunity of international industrial adjustment, gives full play to the advantages of technical level and industrial scale, and fully promotes the development of foreign cooperation to a deeper level. Many years ago, the company established long-term cooperative relations with world-class enterprises in Europe, America and Japan, and established OEM/ODM cooperative relations with the top three manufacturers in the global industry, which has the necessary resource advantages to integrate the semiconductor industry. The company was rated as an excellent supplier or partner by Panasonic, Sony, BYD, Philips, Canon, Visteon, Flextronics, ONSEMI and Samsung. (V) Through more than ten years of education and edification of Chinese excellent traditional culture and exploration of family culture management mode, the company deeply realized that "an enterprise without continuous improvement is lifeless". Therefore, we take "carrying forward the craftsman spirit and cultivating solid craftsmen" as our responsibility, rely on the happy entrepreneur culture, do a good job in top-level design, build a lean improvement culture, and implant the concepts of "the answer is on the spot" and "Lean starts from the heart, and improvement starts from me" into every employee's mind, so that lean can take root in solid technology and bear fruitful results, which is worthy of the glory of "China Lean Enterprise". (VI) Advantages of building a happy enterprise "home" culture In 2020, this should be the longest Spring Festival holiday in our memory and the most extraordinary one. This epidemic prevention and control war with the participation of the whole people has also completely changed the life and work of each of us. With the extension of the epidemic, the global economy is constantly affected, and many enterprises choose to lay off employees and reduce wages. However, when the global economic situation is uncertain and the country, enterprises, society and families are facing a huge economic crisis, Suzhou Gushu, who has been operating enterprises for 30 years with the concept of "home", resolutely undertakes corporate social responsibility, sizes up the situation and goes against the trend. At the beginning of the epidemic, Director Wu Dong and General Manager Wu led the first-level supervisors of all departments to set up an epidemic prevention and control team at the first time to carry out various pre-prevention and control work. During the prevention and control period, they personally conducted the first-line command, trained and implemented the prevention and control priorities, ensured that all measures were put in place, and ensured the safety and health of their families. On New Year's Day 15pm, the business received a phone call from the customer, and the customer will urgently start making a batch of frame thermal imaging monitoring equipment for real-time monitoring of personnel's body temperature, which is mainly used in related hospitals and places in Wuhan. Due to the lack of an ingredient, customers hope that solid technetium can overcome the difficulties and arrange shipment as soon as possible. In order to help Wuhan in the first time, we overcame all difficulties and finally delivered it to Hangzhou customers at 19: 20 in the evening. In order to reduce the anxiety of family members, parents Wu Dong let everyone feel at ease and calm down. A solid family can enjoy the teachings of sages without going out through the webcast platform. All kinds of information of Gutechan's family also reached your family through the company's WeChat platform in time, and friends in the human resources department also gave up the Spring Festival holiday, not afraid of the epidemic, in order to ensure that all employees' salaries were paid on time on February 10, they carefully accounted for it! Health is the source of happiness in life. Resumption of work is just around the corner. In order to ensure the safety of employees, Suzhou Gushu has already made careful preparations and made every effort to complete the disinfection and protection work, waiting for the return of family members and strugglers, and escorting everyone on the way forward in advance. With the joint efforts of all of us, our preparatory work was recognized by the competent government departments, and we agreed to officially resume work on February 10, and our company became the first batch of enterprises in Suzhou to officially resume work. Parents Wu Dong and General Manager Wu always care about the physical and mental health of their families, and advocate that everyone should strengthen their bodies and improve their immunity through healthy exercise during work. After work, everyone actively participated in the knowledge question and answer of epidemic prevention and control, scientific epidemic prevention, and knowledge first. Only when everyone has correct epidemic prevention knowledge and establishes correct epidemic prevention habits can we really cut off the path of COVID-19's ravages and put the initiative of "introducing foreign defense and rebounding internal defense" in place. During the epidemic prevention and control period, the most important thing is to take good protection when eating. The company implements the system of eating in batches. One person eats at a table, far apart, and does not talk to each other. It really has a "feeling of college entrance examination". In addition to eating is sitting, the distance is far, the heart is very close! Since the outbreak of the epidemic, road traffic in some areas has been interrupted, and even people have been unable to leave the village. However, with the return to work, the employees at home are very eager to return to their teams and families. The company uses private cars and chartered cars to pick up family members everywhere. Through everyone's efforts, the company dormitory-workers' home has become a model of epidemic prevention management in high-tech zones. The government inspection team also produced a small video of epidemic prevention management in our residential areas, which was used to learn and promote the flag-raising ceremony held in the residential areas of various units on May 1 day and July 1 day to welcome the "July 1" speech competition-Suzhou Gushan celebrated the establishment of China * * Production Party. Under the strict epidemic prevention control, the company's current work is being carried out in an orderly manner. Family culture construction-the affected parts of the eight modules system have gradually returned to normal. On the eve of Tomb-Sweeping Day, parents Wu Dong and general manager Wu led the family members of the company to hold a grand ancestor worship ceremony in Mingdetang of the General Factory to remember the martyrs and pay homage to the deceased in order to fight the epidemic. The communities, streets, forests and nursing homes around the company once again welcomed the figure of solid technetium volunteers; It is necessary to carry out green environmental protection to the end, carry out tree planting and green protection activities, hold a healthy low-carbon meal cooking competition, publicize the use of environmental protection bags, and actively preach garbage classification. Connect the heart with the home-walk into the family that has lost its independence. The charity sale and charity fund-raising activities will be continued by upgrading the "bamboo tube years back to my mother's house" activity to "do a good deed every day and sweep it once a day" Hold Thanksgiving Mother's Day and Father's Day activities, because the unique and extraordinary things that flow in our blood and show in our words and deeds all come from parents' affectionate feeding and example. Regularly carry out seminars, hometown meetings, high temperature cooling and other activities. We hold a chess competition, which takes chess as a puzzle and takes "chess" as fun. Holding a basketball game can not only keep fit, but also bring you a beautiful visual feast. Love life, love sports and love basketball! Courage all the way is the grace of a solid person! This year, we regard solar terms culture as an important part of family culture, and the series of activities of the 24 solar terms are carried out normally, and the integration of solar terms culture into our daily life has become a natural behavior. June 20th, 2020 is a day that all of us should remember. At 8: 00 in the morning, Wu Dong, the head of the family, led all the family members to gather at the historic place (the company's opening ceremony was held on September 8,1992)-Qin Xiao Building; Hold a stone carving ceremony of "Never lay off employees". "Never lay off employees" is not just carved in stone, but the commitment of all cadres and employees, and even the commitment to the world! But in fact, we also considered the risk before doing this, but employees are family members, and no one will shut their families out when they encounter difficulties. We should give our employees this "reassurance". Director Wu Dong said that the global epidemic has a great impact on the industry, especially the electronic information industry, and its dependence on the global supply chain is self-evident. 1998 the Asian financial turmoil, the semiconductor industry crisis in 2002, and the global financial tsunami in 2008 all faced great difficulties and survived. At this time, we made a promise of "never laying off employees" under pressure, but this is the responsibility of enterprises and cannot be pushed to the society. This epidemic is telling us how to solve the problems of human beings and enterprises. Finally, we should return to true love, and all problems should be solved with true love. Where is true love? At home! "University" said: Cultivate one's morality and govern the country. In the past, families assumed more than 70% social responsibilities; So there are few such homes in today's society, and it's hard to find them. If the enterprise can really manage our employees and implement them in their families, like our big family in the past, the social cost will be greatly reduced, the relationship between people will be harmonious and friendly, care for the ecology and care for each other, and life will become better. We firmly believe in the wisdom of our ancestors and build a happy home with true love. With the joint efforts of Wu Dong, the head of the family, and all family members, the Gushu family showed their responsibilities with their initial intentions and their feelings for home and country with practical actions.