GOPRO has always adhered to the strategy of "technology-driven, globallayout," committed to building a highly resilient and sustainable global supply chain system. In response to the recent announcement by the US government to implement tariff increases on global trade, the company has developed a systematic risk response capability based on its years of international operation experience and forward-looking industrylayout. The company implements a dual-circulation business layout, with domestic business primarily focusing on the independent control of semiconductor optical integrated sensors, continuously tackling national "choke-point" technological bottlenecks, with the main goal of achieving domestic substitution. The company has already made phased achievements, while the sensor application scenarios and intelligent carbon management business have completed initial business accumulation and will enter a period of rapid development. Overseas business is also developing in an orderly manner.

01

The adjustment of US tariff policy has no negative impact on the company’s overseas business.
Settlement model advantages are significant: Over 90% of the products exported to the United States are settled on an FOB basis. The company’s Malaysia production base started operation in 2019, and products exported to North America are mainly produced at this Malaysian base. The Malaysian production base has a strong competitive advantage in Southeast Asia.
Overseas capacitylayout effectively mitigates risk: The company’s Malaysian intelligent manufacturing base, which began production in 2019, has fully taken over North American market orders. With the advantages of Southeast Asia’s regional trade policies and an efficient supply chain system, this base has formed significant competitive advantages in cost control, tariff avoidance, and rapid delivery, providing strong support for the company's overseas business.

02

Deepening global strategy: Capacity expansion and technological collaboration
Fundraising project upgrades, strengthening industry chain expansion: In July 2024, after careful research, the company revised its original fundraising projects and added the "Overseas Intelligent Manufacturing Industrial Base Expansion Project." The company plans to expand its intelligent manufacturing production base in Malaysia, increasing production lines for sensor modules, intelligent control hardware, smart integrated equipment, and intelligent lighting products, further enhancing the export scale of intermediate goods and deepening collaboration with global customers.
Customer cooperation continues to expand: The stable operation of the overseas base has promoted optimization of the customer structure, with existing customers actively exploring additional volumes; potential customers are choosing to deepen cooperation; new customers are accelerating business connection and cooperation progress. With the release of production capacity at the second factory in Malaysia, GOPRO will be able to undertake more business and orders, which is beneficial for securing more overseas customer orders.

03

Future strategic planning: Resilient supply chains and ecological co-building

Dynamic optimization of the global supply chain network: The company will continuously monitor changes in the international trade environment, actively discuss with customers, and make multiplelayout of satellite factories around customer needs to reconstruct the value chain, ensuring stable expansion of the company’s overseas business. Technology empowerment for global partners: In the future, the company will fully leverage the advantages of its Malaysia production base and multi-pointlayout satellite factories, using leading semiconductor sensor technology to empower smart manufacturing, working with more online sales and overseas partners to jointly expand the overseas market.

The company’s current overseas business development is steady, and the Malaysian base expansion project is expected to have sufficient medium- and long-term growth momentum. Facing the complex and ever-changing international trade environment, the company will continue to anchor technology, leverage capacity as a fulcrum, and share development opportunities with global partners, creating long-term value for shareholders and society.