On April 27, Chipsea Technology (688595, SH) handed over the transcript for the first quarter of 2022. It is not difficult to see from the financial report that the company’s performance in Q1 this year is a good start, and the upward momentum is clear.
The financial report shows that in the first quarter, the company achieved an operating income of 149 million yuan, a substantial increase of 43.76% over the same period of the previous year, setting a new high for Q1 in the company’s history; after excluding factors unrelated to daily business, the net profit in the first quarter of 2022 was 33.42 million yuan, The year-on-year growth rate under this caliber reached 54.14%.
The growth of revenue is mainly supported by the company’s analog signal chain, high-performance 32-bit MCU, and breakthroughs in Hongmeng smart device access. Chipsea’s Q1 financial report also shows that the company’s R&D investment in the first quarter has increased by 139% year-on-year.
Emerging growth points drive Q1 revenue to continue high growth
Chipsea is mainly engaged in the R&D and design of high-precision ADCs, high-reliability MCUs, measurement algorithms and one-stop solutions for the Internet of Things. It will be listed on the Science and Technology Innovation Board in August 2021. It is the only analog signal chain and An integrated circuit design enterprise driven by MCU dual platform.
In the first year after listing, Chipsea’s performance in 2021 is gratifying. Last year, the company achieved an operating income of 659 million yuan, an increase of 81.67% over the same period of the previous year; realized a net profit of 96.4546 million yuan attributable to owners of the parent company, an increase of 7.99% over the same period of the previous year; realized non-recurring deductions attributable to owners of the parent company The net profit of sexual gains and losses was 105 million yuan, an increase of 75.36% over the same period of the previous year.
The high growth in performance in 2021 is due to the “troika” of analog signal chain chips, MCU chips, and health measurement AIOT chips. In 2021, the company’s MCU chips achieved sales of 295 million yuan, an increase of 184.46% over the same period last year; health measurement AIOT chips achieved sales of 229 million yuan, an increase of 75.35% over the same period last year; analog signal chain chip business achieved sales of 122 million yuan, excluding After the impact of infrared temperature measurement products on performance last year, the same caliber increased by 88.76% year-on-year.
Entering 2022, the revenue scale of Chipsea Technology will still maintain a high growth trend. In its 2022 first quarter financial report, the company revealed that analog signal chain products continue to make breakthroughs in consumer, industrial and other fields. Among them, battery management chips (BMS) continue to increase rapidly, with revenue increasing by nearly 60% quarter-on-quarter; general-purpose high-performance 32-bit MCUs In terms of computers and peripherals, industrial control, etc., the sales ratio of 32-bit MCUs has continued to increase, and it has approached 50%. Health measurement AIOT products, which have attracted much market attention, have also maintained rapid growth in areas such as smart meters and Hongmeng smart device access.
It can be seen that emerging growth points contributed a lot to Chipsea’s first-quarter performance. It is also worth noting that in 2021, Chipsea will deepen its cooperation with Hongmeng and become its main supplier of embedded chips. In the future, with the increase in the number of merchants connected to Hongmeng, the company’s AIOT business is expected to grow further.
Previously, Lu Guojian, chairman of Chipsea Technology, publicly stated that Chipsea Technology is positioned as a big market for small chips. With the vigorous development of the intelligent Internet of Things industry, Chipsea Technology has entered a stage of rapid growth. Chipsea Technology does not only rely on the explosion of a certain product, but introduces many new products and enters many new fields every year.
Overweight layout of car regulations market
At present, Chipsea continues to invest in research and development for multiple tracks, driving continuous breakthroughs and expansion in related fields. It is understood that from 2018 to 2021, the R&D investment of Chipsea Technology was 41.1569 million yuan, 51.0861 million yuan, 74.3915 million yuan and 169.1217 million yuan respectively. As of the end of 2021, the number of R&D technicians in Chipsea has reached 285, accounting for 67.70% of the company’s total employees.
In the first quarter of this year, Chipsea’s R&D investment totaled 44.87 million yuan. After excluding the share-based payment fee, the same caliber increased by 71.83% year-on-year. R&D investment accounted for 30.13% of the quarter’s revenue, hitting a new high.
At this stage, the localization of chips has continued to advance, and the integrated circuit industry has been included in the national “14th Five-Year Plan” and the 2035 Vision Outline goals. At the same time, the Ministry of Industry and Information Technology has stated that it will step up the long-term strategic layout of automotive chips. Under the background that the total national automobile production and sales data has ranked first in the world for 13 consecutive years, automotive-grade chips and operating systems are the country’s weak points.
In this context, Chipsea will extend its products to the automotive electronics market in 2021 and regard it as an important part of the company’s strategic development. At present, the company’s first automotive-grade signal chain MCU has passed the AEC-Q100 certification and has begun to be introduced into the new product design of automotive pre-installation companies. Some of the R&D investment in the first quarter of this year was also used for the R&D of automotive-grade products.
From the perspective of market demand, the number of chips in traditional cars is 500-600 per vehicle, but under the trend of electronic and intelligent automobiles, the average number of chips in vehicles in 2021 will be close to 1,000 per vehicle. Taking Xiaopeng Motors as an example, its founder He Xiaopeng has previously disclosed publicly that each car currently needs about 1,700 chips, and domestic demand still maintains rapid growth.
At the beginning of March this year, Chipsea Technology announced that it intends to raise no more than 410 million yuan by issuing convertible bonds to unspecified objects, mainly for automotive MCU chip research and development and industrialization projects and to supplement working capital. In the first quarter, the company’s R&D expenditure increased significantly, which also gave the market more room to imagine the company’s vehicle-grade products.Text/Wang Jing
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