Xx Test (300416) released the record form of investor relations activities on August 19. The company accepted a survey of 25 institutions on August 18, 2022. The types of institutions are QFII, xx Company, xx Company and xx Private Equity Institutions.

Introduction to the main contents of investor relations activities:

1. for the first half of 2022:

The company disclosed its half-year results for 2022 on August 15, 2022, with operating income of $0.799 billion, up 18.38 percent year-on-year, net profit attributable to the parent of $0.106 billion, up 30.32 percent year-on-year, and net profit attributable to non-parent of $0.096 billion, up 29.87 percent year-on-year.

2. Q & A session:

　　Q: Has the impact of the outbreak on the test equipment business in the first half of the year been eliminated so far?

A: In the first half of the equipment production end is basically not affected, delivery and installation and commissioning during the outbreak was blocked, is now basically back to normal. This part of the equipment order that has been recognized by the shipper in the second quarter should be fulfilled in the third quarter.

　　Q: What is the ordering demand for comprehensive equipment in the equipment? Is it applied to the R & D side or the production side? How is the future trend expected?

Answer: The demand for comprehensive equipment is large. Applications are dominated by research and development, and demand on the production side is also increasing. The future growth rate will exceed the growth rate of traditional equipment.

　　Q: At present, are the orders of customers in the field of new energy vehicles mainly for comprehensive equipment?

A: More and more orders for comprehensive equipment. New energy vehicles have a high degree of electrification and intelligence, increased sensitivity to the environment, and higher requirements for environmental testing. Comprehensive equipment can better simulate and realize complex environments to meet customer testing needs.

　　Q: What is the reason for the decline in gross margin of test equipment in the first half of the year?

A: The gross margin of environmental test equipment in the first half of the year was 32.16 percent, down 1.22 percent year-on-year, mainly due to the high price of raw materials in the second half of 2021, and orders were reflected in the revenue recognized in the first half of this year. The company achieves a dynamic balance of gross margin by increasing the proportion of sales of comprehensive equipment.

　　Q: Will the sale of test equipment affect the ring test service business?

A: The test equipment and the ring test service business are complementary. The integration of the two is reflected in both technical mutual leadership and business mutual promotion: test equipment customers will extend from test equipment requirements to test service requirements based on their understanding and trust in the company's technical strength, as well as their own laboratory size and test talent limitations; the company's test equipment research and development and manufacturing capabilities provide strong technical support and fully equipped test equipment for the company's test service business, which can provide test customers with more scientific and effective test plans and objective and accurate test data. Based on the understanding of the company's equipment performance and technical strength, customers will also extend their requirements to the purchase of test equipment.

　　Q: Is the current EMC revenue attributable to the ring test service business? How is the business going?

A: Yes, it is currently classified in the ring test service business. Last year, we launched EMC business in Shanghai, Suzhou and Xi'an. This year, we built EMC darkrooms in Chengdu, Changsha and Guangzhou. In addition, Suzhou will build two new EMC dark rooms in the second half of the year. Next, it will be deployed in Wuhan, Beijing and other places. At present, the business volume is relatively full, but the absolute amount is not high.

　　Q: What is the development of the environmental test business in the field of new energy vehicles in the first half of the year?

Answer: The demand for new energy vehicle testing is strong. The company seizes the rapid development opportunities of the new energy vehicle industry, strengthens market development efforts, and the business growth rate is relatively fast.

　　Q: In terms of new customer development, is there any progress in the promotion of wind power, photovoltaic, medical and other emerging industries?

A: The company has a wide range of downstream customers, and is currently involved in the fields of wind power, photovoltaics and medical devices.

　　Q: What is the reason for the high growth rate of the environmental test service business in the first half of the year?

Answer: The company actively broadens the scope of downstream applications. Take the company's flagship store Suzhou Guangbo as an example. During the reporting period, Suzhou Guangbo adjusted its operation mode and set up four centers: environmental and reliability testing, new energy vehicle product testing, component testing and aerospace product testing. Seize the opportunity of rapid development of new energy vehicles and other related industries, further expand test categories, strengthen market development, and build a new version of information management system to achieve refined management, speed up the response speed and continue to maintain the rapid growth of the ring test business.

In addition to Suzhou Guangbo, the early expansion of the subsidiary Nanjing Guangbo, Qingdao sea test laboratory also began to release production capacity, but in the first half of the important subsidiaries are located in Suzhou, Shanghai, Beijing due to epidemic control, resulting in poor logistics, personnel travel difficulties, part of the test tasks can not be carried out, the relevant subsidiaries face greater difficulties in short-term operation.

The Company minimized the impact of the epidemic on the Company as a whole by preparing in advance, arranging employees to stick to their posts throughout the epidemic period, actively communicating with customers, and delegating the test tasks to other laboratories within the Group as far as possible, and maintained a high growth rate in the environmental test service business during the reporting period.

　　Q: Why did the gross margin of the environmental test service decline in the first half of the year?

Answer: In the first half of the year, the gross profit margin of the environmental test service was 55.37, a year-on-year decrease of 4.31. The current gross profit margin level is relatively reasonable. The gross profit margin in the second quarter of last year was relatively high, which was related to the recognized revenue of some orders.

　　Q: The reason for the decline in IC gross margin in the first half of the year?

A: Integrated circuit gross margin was 51.78 percent in the first half of the year, down 0.76 percent year-on-year, mainly due to lower capacity utilization during the epidemic, while equipment and personnel inputs increased costs. Capacity utilization increased after the resumption of work in June, and gross margin will return to normal levels.

　　Q: What is the reason for the increase in net sales margin in the first half of the year?

A: The overall net sales margin in the first half of the year was 15.59 per cent, up 1.55 per cent year-on-year, mainly due to an increase in the proportion of the ring test service business with higher profit margins.

　　Q: Has the orders affected by Yite in April and May been restored in these two months, and has the current production capacity increased compared to before the outbreak?

A: Basic recovery. Yite began to resume work in June, and the number of orders received in June and July reached a record high. In terms of production capacity, equipment and personnel were expanded in the first half of the year, and the equipment invested in the early stage was also partially in place in the first half of the year.

　　Q: What is the current capacity utilization level of the company's equipment companies and laboratories?

A: The current capacity utilization rate of the equipment side is high, and further capacity expansion is planned;

The three elements of capacity on the service side are plant, equipment and personnel. Among them, the plant has been greatly expanded through self-construction and leasing, equipment and personnel are gradually invested, and there is room for improvement in capacity utilization.

　　Q: What is the construction progress of the company's fixed increase project?

A: In the process of construction, there are orders for aerospace product testing center and component testing center.

　　Q: What is the customer structure of Yite? How will it be laid out in the future?

A: At present, it is still mainly communication electronics and consumer electronics customers, with a relatively small proportion of downstream automotive electronics customers, and the rapid growth rate of automotive-grade chip testing business, which is the key layout direction in the future.

　　Q: What is the company's capital expenditure plan for this year?

A: We will continue to expand equipment and personnel to maintain last year's capital expenditure level;

Suzhou xx Test Group Co., Ltd. is committed to the development and production of environmental test equipment, and to provide customers with comprehensive environmental and reliability test services. Main product equipment manufacturing, testing services. In 2018, the company won the second prize of China Machinery Industry Science and Technology Progress Award.