More than ten years of technology accumulation to promote the domestic replacement of communication core chips, Chuangyao Technology is about to land on the science and technology board

After years of development, China has now formed a power system communication network pattern dominated by optical fiber communication, microwave communication, power line carrier communication and other ways. Among them, power line carrier communication is a communication method that uses power line as an information transmission medium to load a modulated high-frequency carrier signal for voice or data transmission, and is also a communication method unique to the power system.

A major feature of power line carrier communication is that there is no need to rewire, and data transmission can be achieved by using existing power lines, so it is widely used in power systems. With the development of Internet of Things technology, power line carrier communication can also be applied to smart street lights, smart homes, smart buildings and industrial control and other fields, but the most important application area is the smart grid power consumption information collection field.

In this field, at present, domestic listed companies are strong and micro enterprises, it is worth noting that the domestic focus on communication core chip research and development enterprises Chuangyao Technology will officially land on the science and technology innovation board in the near future. On January 7, the issue price was determined by Chuangyao Technology to be 66.60 yuan per share, and the number of shares issued was 20 million shares.

Focus on communication core chips for more than ten years, to achieve the localization of key technologies

It is understood that Chuangyao Technology was established in 2006, since its inception has focused on the research and development of communication core chips, and has formed a deep accumulation in physical layer communication algorithms and software, analog circuit design, digital-analog hybrid large-scale SoC chip design and layout design and other platform technologies. Due to the commonality of communication technologies, combined with market demand, Chuangyao Technology can flexibly apply the existing platform technology in multiple application fields.

At present, Chuangyao Technology has successfully entered the field of power line carrier communication and access network communication (including wired access and wireless WiFi). According to the application field, Chuangyao Technology's communication chip and solution business is specifically divided into power line carrier communication chip and solution business, access network chip and solution business.

In recent years, telecom operators have extremely high requirements for the types of services that access network equipment, especially access network chips, as well as the speed, real-time and stability of communication. Since its inception, Chuangyao Technology has focused on the research and development of access network network chips and related technologies, is committed to continuously improving the communication rate and stability of broadband access, providing home gateway solutions that can support multi-service and multimedia to meet the increasing broadband access needs of users and realize the localization of key technologies and products.

It is worth mentioning that Chuangyao Technology has been driven by R&D and innovation, and continues to promote the evolution of technology. With the excellent layout design technology accumulated in the research and development and design of communication chips, Chuangyao Technology has expanded the chip layout design business.

So far, Chuangyao Technology has become a domestic company with physical layer core communication algorithm capabilities and large SoC chip design capabilities, and has both 65nm/40nm/28nmCMOS process nodes and 14nm/7nm/5nmFinFET advanced process node physical design capabilities. Chuangyao Technology has formed many core technologies in the algorithms and software related to power line carrier communication chips, algorithms and software related to access network chips, analog circuit design, digital-analog hybrid and layout design, etc., and the main products and technologies are at the domestic advanced level.

In the past three years, the performance has continued to grow at a high level, and the amount of orders in hand by large customers is large

Continuous innovation in key technologies and products has also promoted the sustained and rapid growth of Chuangyao Technology's performance. From 2018 to 2020, the operating income of Chuangyao Technology was 108.9381 million yuan, 165.3258 million yuan and 209.5217 million yuan respectively, with a compound growth rate of 38.68% of the operating income.

In November 2020, Chuangyao Technology also ushered in a breakthrough in business. Communication equipment ODM vendors Zhongguang Interconnection and Chuangyao Technology began large-scale cooperation in the field of access networks.

According to the data, CG Interconnection and Chuangyao Technology signed two gateway technology licensing contracts to purchase wired gateway and wireless gateway general platform technology licenses from Chuangyao Technology; at the same time, it also signed two chip technology licensing contracts with Chuangyao Technology and its subsidiary Chongqing Chuangrui, to provide Chuangyao Technology with the company's chip-based equipment software and hardware solutions and technical support, and agreed that Chuangyao Technology would sell chips or wafers to CG Interconnection or its designated customers.

With the gradual mass production of Chuangyao Technology's access network chip products and the increase in shipments to CG Interconnection and its designated customers, as well as the successive acceptance of ZZCO technology licensing projects, Chuangyao Technology's access network business operating income will increase significantly.

At the same time, the growth of access network chips or wafers, as well as the scale of access network technology licensing business, will also promote the substantial growth of Chuangyao Technology's operating income and profit. According to the disclosure, the operating income and net profit of Chuangyao Technology in the first half of 2021 increased by 102.16% and 147.31% year-on-year, respectively.

In addition, as of June 30, 2021, the order amount in hand from Chuangyao Technology to China Guangdong Internet, Shenzhen Daxin and Xi'an Leiye was 117.2374 million yuan, 460.7418 million yuan and 228.6319 million yuan respectively, with a large order amount in hand. Future orders in hand will also increase its performance.

The future market prospects are broad, and we will continue to promote product upgrades

After 2018, as the "strong smart grid" plan entered the stage of leading the upgrade, the State Grid launched a new round of transformation and began to bid for broadband power line carrier communication products, and the replacement demand for existing smart meters has driven another round of demand for smart meters. The application of power line carrier communication technology in the field of smart grid power consumption information collection has greatly driven the development of China's power line carrier communication industry, and the future market is broad.

In the next few years, the market of power line carrier communication industry is expected to maintain a good development trend, and the market scale is expected to be further expanded. The first is the promotion of domestic smart meter replacement or upgrade demand. The second is the increase in demand for smart meters in overseas markets. The third is the continuous deepening of the application of power line carrier communication in the field of Internet of Things. In addition to being applied to the field of smart grid electricity information collection, power line carrier communication can also be applied to smart cities, smart homes and industrial control fields.

For the future development plan, Chuangyao Technology pointed out that the company will expand investment in the direction of the industry that has formed a strong competitive advantage and industry barriers, and further enhance the company's competitive advantage and broaden the moat through continuous innovation and research and development.

At the same time, in the new application areas such as vehicle Ethernet gateways, high-speed industrial buses and WiFi wireless communications, with the support of the communication SoC platform technology and continuous technological evolution accumulated in the early stage, guided by market demand, and with one or two chip products in the early days as the breakthrough point, we will continue to introduce new competitive communication SoC chip products, enrich the product category, and thus occupy the new market. (Proofreader/New)