Half-Year Evaluation Report on the 2025 “Quality Improvement, Efficiency Enhancement, and Return to Shareholders” Action Plan

Date of Announcement: August 29, 2025

Hangzhou Hemai Power Electronics Co., Ltd. (hereinafter referred to as “the Company”) has developed the 2025 “Quality Improvement, Efficiency Enhancement, and Return to Shareholders” action plan in response to the Shanghai Stock Exchange’s initiative aimed at promoting listed companies to optimize operations, standardize governance, and actively return to investors. This plan was approved by the Company’s second board of directors in its twenty-second meeting on April 29, 2025. The following report outlines the key achievements from the first half of 2025 based on the action plan:

I. Focus on Core Business to Steadily Enhance Competitiveness

Since its establishment in 2012, the Company has been engaged in the research, development, manufacturing, and sales of photovoltaic inverters and related products, as well as energy storage products. Utilizing self-developed circuit topologies and control algorithms, the Company has built several R&D platforms for micro-inverters and storage inverters, continuously enhancing the performance, reliability, and cost-effectiveness of its photovoltaic and energy storage products. These products are widely used in the global photovoltaic and energy storage sectors, with installations in over 140 countries and regions.

In the first half of 2025, the Company achieved a revenue of 1,005,323,307.84 yuan and a net profit attributable to shareholders of 16,271,586.62 yuan. The Company remains committed to innovation, increasing R&D investment to 165,659,242.89 yuan for the first half of 2025, reflecting a year-on-year growth of 36.61%, with total R&D expenditures accounting for 16.48% of revenue.

(1) Strengthening Core Business and Leading the Industry

According to recent data from S&P Global Commodity Insights, the Company holds a 22% market share in global micro-inverter shipments for 2024, marking a 25% increase year-on-year. The Company ranks first in market share outside the United States and leads in regions such as Europe, Latin America, and Asia-Pacific. This achievement highlights the Company’s strong growth momentum and competitive strength in the micro-inverter sector.

(2) Commitment to Technological Innovation and Product Development

In the first half of 2025, the Company received 19 new patents, bringing the total to 349, including 41 invention patents, 36 utility model patents, and 18 design patents. The R&D team grew to 622 members, an increase of 112 from the previous year, reflecting a commitment to enhancing technical leadership.

During this period, the Company launched the new HIT series three-phase low-voltage energy storage inverter, which integrates an intelligent energy management system (EMS) and supports various operational modes. Additionally, the Company introduced the HoyUltra2 commercial energy storage system and the HPCS2500 liquid-cooled energy storage converter, both designed to address key market challenges.

(3) Global Operations and Brand Development

The Company has established subsidiaries in the Netherlands, Australia, Singapore, and the United States, reinforcing its global strategy. Over 1,000 product certifications have been achieved for micro-inverters, with energy storage inverters also receiving grid connection certifications from several key countries. The Company aims to solidify its presence in overseas markets while expanding domestically, ensuring synchronized development on both fronts.

(4) Strengthening Strategic Partnerships

In the first half of 2025, the Company signed a cooperation agreement with Huarong Financial Leasing Co., Ltd. for residential photovoltaic projects, which is expected to positively impact the Company’s future financial performance and enhance operational sustainability.

II. Enhancing Operational Management and Governance

The Company has closely monitored changes in laws, regulations, and regulatory policies to improve the efficiency of its governance structure. In the first half of 2025, the Company held 3 shareholder meetings, 2 board meetings, and 2 supervisory meetings, effectively utilizing the functions of various governance bodies.

III. Improving Information Disclosure and Investor Communication

The Company places high importance on information disclosure and has received an A rating for its disclosure practices in the 2023-2024 evaluation by the Shanghai Stock Exchange. The Company has enhanced its communication with investors through various channels, achieving a 100% response rate to investor inquiries via the “Shanghai Stock Exchange Interactive” platform.

IV. Sustained High Returns to Shareholders

On April 29, 2025, the Company approved a plan to distribute a cash dividend of 32 yuan (before tax) per 10 shares. By June 19, 2025, the Company had completed the distribution of cash dividends totaling 393,922,569.60 yuan (before tax).

V. Market Confidence Maintenance

The Company has implemented a dual market stabilization mechanism through share buybacks and increases in holdings by major shareholders, with a cumulative buyback amount reaching 365 million yuan by June 30, 2025. Additionally, the controlling shareholder, Hangkai Holding Group, increased their shares by 2.2 million, demonstrating strong confidence in the Company’s long-term value.

VI. Other Matters

All aspects of the 2025 “Quality Improvement, Efficiency Enhancement, and Return to Shareholders” action plan are being implemented smoothly. The Company continues to assess specific measures of the plan and welcomes feedback from investors to optimize its execution.

This report contains forward-looking statements regarding the Company’s plans and strategies, which do not constitute substantive commitments to investors. Investors should be aware of the associated risks.

Hangzhou Hemai Power Electronics Co., Ltd. Board of Directors, August 28, 2025