The Group is principally engaged in the design, development, manufacturing, subcontracting service and sales of semiconductor products, including light-emitting diode (“LED”) beads, and fast charging products in the People’s Republic of China (the “PRC”).

The business of the Group includes LED, GaN-based components, fast charging products and other kinds of semiconductors related products. GaN is known as one of the most important representatives of the third-generation semiconductor materials. GaN offers wide band gap, high breakdown voltage, high efficiency of power conversion, and great stability at high temperatures, as compared to the previous generation semiconductor materials.

The Company signed a framework cooperation agreement with a statutory body in Hong Kong that is committed in assisting Hong Kong enterprises to improve their competitiveness through advanced technology applications and innovative services on 16 July 2021. Under this agreement, the Company will establish an advanced intelligent production line for fast charging products in Hong Kong. The Company will also recruit leading talents in the semiconductor industry, such as Mr. Chang Ru Gin, a senior consultant of the Company and the Founder of Semiconductor Manufacturing International Corporation （中芯國際集成電路製造有限公司*）, and other experts from different countries, to work with the cooperating party in supporting the development of a Microelectronics Centre, which will facilitate the research and development of the new generation semiconductor technology, and promote the collaborative development of industry, education and research in Hong Kong and the Greater Bay Area of the PRC.

Since 27 July 2021, the Group’s wholly-owned subsidiary, Xuzhou GSR Semiconductor Company Limited* (“Xuzhou GSR”) (徐州金沙江半導體有限公司) has reached a strategic cooperation agreement with Shenzhen Romoss Technology Company Limited* (深圳羅馬仕科技有限公司) and Beijing Hongzhi Electric Technology Company Limited* (北京鴻智電通科技有限公司) since 27 July 2021, to collaborate in the research and development of GaN power devices, to provide Shenzhen Romoss Technology Company Limited with chip and module-level solutions for the fast charging battery products in their future applications in the PRC. Xuzhou GSR will be responsible for providing GaN related semiconductor products and chip and module-level solutions for the fast charging battery products.

FastSemi Holding Limited, the company's wholly-owned subsidiary, has invested in VisIC Technologies Limited (“VisIC”), one of the largest players in GaN power devices, the third generation semiconductors.

The benefits of the VisIC investment and collaboration are listed as follows: First, the Group plays a key role to open up the new market in China for the next generation Electric Vehicle (“EV”) transformation. The Group will leverage VisIC's product portfolio and design into China EV players as they all have the roadmap to move into the high voltage products (from 300V to 400V and 800V systems).

Given VisIC's leading role in high voltage devices that enable fast charge applications, and its leadership in the German EV supply chain qualification system, along with the Group's local factory for GaN solutions, the Group will benefit from the early entry of the China EV market, becoming a major supply chain provider of the third generation semiconductor - GaN products for key EV players. Second, VisIC's expertise in the manufacturing process will accelerate the Group's design and manufacturing maturation and enable the development and customization of next-gen high-voltage GaN products.

Moroever, FastSemi Holding Limited has invested in GaN Systems Inc. (“GaN Systems”), a leader in gallium nitride (“GaN”) technology in November 2021, and agreed to invest by subscribing for the series F-2 convertible preference shares in GaN Systems as a strategic investor. Upon completion of the investment, it is expected that both the Group and GaN Systems may have the opportunity to pool our respective advantages to each other, creating synergistic effects. In particular, GaN Systems can provide dedicated technical support (from Ottawa, California and Taiwan) to the Group for process definition and qualification of GaN device manufacturing to achieve best-in-class yield targets and targeted qualifications. Furthermore, GaN Systems also proposes to qualify the subsidiary of the Group as a foundry partner to GaN Systems and enter into a licence agreement whereby the Group may use certain GaN technology of GaN Systems for manufacturing its semiconductors components.