Intellectual Property Management Plan

Zhen Ding has formulated four major intellectual property management strategies, including "Accumulation", "Focus", "Innovation", and "Enhancement"

Accumulation - Deploying Core Technology Intellectual Property: In the spirit of "patent comes first in technology development", Zhen Ding has been leading the Group's self-owned R&D and innovation, and we are actively deploying high-value intellectual property rights to strengthen the effective protection of core technologies.

Focus - Extracting Patent Analysis Value: We have built an industrial patent information platform to control the PCB patent technology positioning, align the Group's technology development direction, and deploy effective intellectual property rights in line with market trends.

Innovation - Linking Innovative Services of Science and Technology: Link global patent databases to provide efficient and accurate industrial patent technology analysis, clarify patent strategy maps, and build patent portfolios to avoid potential technology risks.

Enhancement - Enhancing Quality and Efficient Operations: In order to strengthen the Group's industrial leadership, we have established a patent incentive system to encourage innovation and self-owned R&D, refine the quality of patent technologies, and implement the patent technology achievements.

Actively Deploy Intellectual Property to Build Core Technologies

In accordance with Zhen Ding's operations policy and technology development plan, and in conjunction with the intellectual property strategy, we not only abide by laws and regulations, but also plan our patent deployment plan according to the intellectual property management policy requirements of each important production base, and strive to develop advanced technologies and build our self-owned core technologies. Besides catching the future trends of the industry through long-term cooperation with world-class customers, and actively investing in R&D resources to deploy core technologies, the company's position on intellectual property rights protection policies is to actively deploy core technology intellectual property rights and strengthen its own R&D technical protection to ensure the competitive advantage of the company in this industry field. In addition, we have applied for company's logo as by trademarks overseas to meet the requirements of market and product expansion, and we will also apply for trademarks for important proprietary technologies to facilitate promotion and to build a brand image for our technology services.

Stable and solid industry development is the basis of competitiveness for the company to rely on its own expertise to lead the industry in precision technology, intelligent manufacturing, and customer-trusted corporate. The company has established "R&D Project Development Control Management", "Product Lifecycle Management System", "Engineering Change Control Board", and "Product and Technology Platform" to completely record the technical secrets within competitive advantages in covering the development activities of new product, new technology, new process, new material and new equipment existed of innovative research and excellent manufacturing.

Digitalized Smart Platform of Property Management

The company takes measures to ensure that technical secrets are properly protected such as by information security system, employment agreement within intellectual property rights protection, education and publicity, standardization documents, and systematic management, and to prevent others from obtaining, disclosing or use the company's technical secrets without legal license or improperly in accordance with laws and regulations related to business secret protection.

To establish efficient intellectual property management, Zhen Ding has introduced an electronic operation system based on the existing intellectual property management system in accordance with the spirit of ISO standardization. In the meanwhile, we have created a digital intellectual property management platform, and collected information on the development of PCB-related technologies and established a technical database.

Implementation Status

Zhen Ding implements technical investigations before the development of new products and new processes to avoid infringing on the third-party intellectual property rights. In the new technology development stage, it investigates market applications and advanced technology conditions, introduces risk assessments, and implements confidentiality management. The documents, equipments, and areas within confidential information of the company are controlled to avoid the risk of leakage. For the research and development results of self-owned core technologies, various intellectual property rights are actively deployed.

Management system results:
To comprehensively and effectively manage intellectual property such as patents and business secrets, as of December 31, 2020, the company has actively established an intellectual property management system and has completed the establishment of relevant regulations, including the "Intellectual Property Rights Management Manual", the "Procedures for Intellectual Property Rights Application", the "Third-Party Intellectual Property Rights Policies and Investigation Procedures", and the " Confidentiality Management System".

Intellectual property achievements:
Zhen Ding actively applies for patents in Taiwan, Mainland China, and the United States to strengthen its competitive advantages. In 2022, 365 patent applications were filed and 247 patents were granted. As of December 31, 2022, the company owned 1,440 valid patents. The company expects to file 350 patent applications in 2023 to protect the results of our own research and development of advanced technologies. The 2022 annual implementation plan and results will be reported to the Board of Directors on March 14, 2023. VIEW OUR ACCUMULATED PATENT GRANTS WORLDWIDE

Certification

The main legal entities of Zhen Ding in Mainland China have completed the implementation of the intellectual property management system standard and obtained certification in accordance with the requirements of the local intellectual property management policy.

Qing Ding Precision Electronics (Huaian) Co., Ltd.:
The certification of "Enterprise Intellectual Property Management GBT-29490" was received on June 18, 2020
The certification will be valid until June 17, 2023

Avary Holding (Shenzhen) Co., Ltd.:
The certification of "Enterprise Intellectual Property Management GBT-29490" was received on June 16, 2021
The certification will be valid until June 15, 2024

Hong Qi Sheng Precision Electronics (Qinhuangdao) Co., Ltd.:
The certification of "Enterprise Intellectual Property Management GBT-29490" was received on July 4, 2022
The certification will be valid until July 3, 2025

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