Jiwei Network reported on April 26, Hengxuan Technology released a first-quarter report that in the first quarter of this year, the company achieved operating income of 287 million yuan, down 1.18% year-on-year; net profit attributable to shareholders of listed companies was 22.4993 million yuan, down 71.78% year-on-year.
Hengxuan Technology said that in the first quarter of 2022, the company's operating income decreased by 1.18% compared with the same period last year, excluding the exchange rate factor brought about by the US dollar denomination of overseas sales, and the company's operating income was flat compared with the same period last year. The main reason is that the reporting period is the traditional off-season of downstream terminals, the demand in the first quarter is weak, in addition, due to the impact of the epidemic, logistics in some areas are blocked, the company's sales volume in the first quarter fell slightly year-on-year, and the average unit price of the company's products further increased, making up for the impact of the decline in sales.
The company's net profit attributable to the shareholders of the listed company decreased by 71.78% compared with the same period of the previous year, and the net profit after deducting non-recurring gains and losses decreased by 119.23% compared with the same period last year; the main reason was that the research and development expenses increased by 46.185 million yuan, an increase of 82.25% year-on-year, of which the research and development personnel increased by 72.59% year-on-year, and the related expenses of employee compensation and other personnel increased significantly. At the same time, the company's investment in new product research and development increased significantly, and the corresponding R&D engineering expenses and R&D depreciation and amortization expenses increased significantly by 109.12% and 94.49% year-on-year. In addition, other mass production operation personnel also increased accordingly, and management expenses increased by 74.61% year-on-year.
It is understood that hengxuan technology's current business mainly focuses on the two general directions of smart wearable and smart home. In terms of smart wearables, mainly headphones and watches are two products; smart home, the current main WiFiSoC chip is used in smart speakers and other products, has been imported Tmall Genie, Millet, Huawei and other brands of smart speakers, there are also a small number of applications in some smart home appliances, such as air conditioning, for voice control.
In terms of the smart watch market, in the second half of 2021, a number of customers have released watch products equipped with the company's BES2500 series chips, including Xiaomi Watchcolor2/S1, Huawei WatchGT3/GTRunner, vivoWATCH2, etc., and more terminal products will be released in the future. Watch chip is the company's new product line in 2022, the current market development is still very smooth, the first generation of watch solutions have been imported into a number of domestic brand manufacturers. The second generation of watch chips is also already in planning, and it is expected to be launched in the second half of 2022.
Smart speaker market, the original chip solution is basically a discrete solution, generally composed of AP, wireless connection, audio module and other chips, the company is the first in the industry to launch WiFi / Bluetooth dual-mode SoC single-chip solution, and can support the terminal product to run a lightweight RTOS system, to achieve the same intelligent interaction with the general Linux system speaker, lower power consumption, circuit design for customers is also simpler, so our chip in some screenless speaker solutions are very competitive. (Proofreading/Lee)