Following the double increase in revenue and net profit deducted from non-attributable to the parent company in the semi-annual report, Telink Microelectronics (Shanghai) Co., Ltd. (hereinafter referred to as "Telink Micro"), a leading domestic supplier of Internet of Things chips, reported another good third quarter.
On October 9, Telink Microelectronics released a performance forecast, announcing that according to the preliminary calculation of the financial department, the company is expected to achieve operating income of about 586.286 million yuan in the first three quarters of 2024, an increase of 110.1628 million yuan compared with the same period last year, an increase of about 23.14% year-on-year; The net profit attributable to the owners of the parent company was about 59.6122 million yuan, an increase of 22.0278 million yuan compared with the same period of last year, an increase of about 58.61% year-on-year, while the net profit attributable to the owners of the parent company after deducting non-recurring gains and losses was about 54.6046 million yuan, an increase of 23.2883 million yuan compared with the same period of last year, an increase of about 74.36% year-on-year.
Benefiting from the reversal of semiconductor fundamentals, the company's business continued to climb
Telink's main business is the R&D, design and sales of low-power wireless IoT chips, mainly focusing on low-power Bluetooth chips, multi-protocol (including Zigbee, Matter, etc.) IoT chips, private protocol 2.4G chips and wireless audio chips. At present, the company's main business is mainly composed of IoT chips and audio chips, and its products are widely used in computer peripherals, smart homes, smart hardware, smart industrial systems, smart business systems and other fields. The company's products are widely used in a wide range of customer industries. Below: Revenue composition of the company's main products in the first half of 2024:
Telink Micro product application fields
Benefiting from the reversal of semiconductor fundamentals at home and abroad, Telink's performance continued to rise in the first three quarters of this year. From 2022 to 2023, the global consumer electronics recession and the semiconductor chip industry have entered a downward cycle, but since the end of 2023, the dawn of industry recovery has gradually emerged, and the volume and price indicators of the global semiconductor industry have begun to see an inflection point, driven by emerging forces such as AI, Internet of Things, 5G, and new energy automotive electronics, driving the continuous growth of global semiconductor sales. Total global semiconductor sales hit a record high in August, with year-on-year sales increasing by the largest percentage since April 2022, and monthly sales in all regions rising for the first time since October 2023.
Seizing the opportunity of the recovery of semiconductor chip market demand, Telink Micro closely follows the favorable situation of the domestic and international markets, actively explores domestic and foreign markets, increases customer investment and technical support, and maintains a diversified downstream application market layout. While deeply cultivating traditional businesses, the forward-looking layout includes incremental businesses such as smart medical care and car keys, as well as emerging markets, with sufficient forward momentum. The revenue of the company's IOT products and audio production lines at home and abroad has continued to grow, making the overall revenue maintain a growth trend.
At the same time, Telink Micro strengthened the management of the semiconductor supply chain, optimized costs, increased gross profit margin year-on-year, and increased gross profit, resulting in a significant increase in net profit attributable to the parent company and net profit after deducting non-recurring gains and losses in the first nine months of this year. At present, the company's IoT business continues to grow steadily, and from Q2 2021 to 2024, the company's IoT chip products maintain a high gross profit margin of more than 40%, with gross profit margins of 46.48%/40.97%/42.16%/45.14% respectively.
The excellent performance comes from the self-development of the core technology of the product and maintains the leading position in the industry
After years of independent R&D and technology accumulation, Telink Micro has established a set of core technology systems around low-power wireless IoT protocol standards, and has formed self-developed core technologies in chip design, IoT protocol stack development, large-scale networking, and diversified IoT applications.
At present, Telink Micro has formed a number of core technology systems, mainly including "low-power Bluetooth communication and chip technology", "ZigBee communication and chip technology", "low-power multi-mode Internet of Things RF transceiver technology", "multi-mode Internet of Things protocol stack and Mesh networking protocol stack technology", "low-power system-on-chip power management technology", "ultra-low latency and dual-mode wireless audio communication technology", "low-power wireless high-precision positioning technology", "automotive digital key technology", " heterogeneous multi-core SoC technology" and other core technologies, maintaining a leading position at home and abroad.
Since the beginning of this year, Telink Micro has further consolidated and enhanced a number of existing core technologies through active R&D investment and product development, continuously increased and broadened the coverage of core technologies, and developed related products to help downstream customers achieve rapid mass production, further maintaining the company's core competitiveness, among which the company has completed the certification of Zigbee R23 protocol stack and Matter protocol version 1.3 certification. Telink Micro has released a new generation of system-level Bluetooth LE chips using a combination of advanced technology and high-performance circuit design, which has reached a peak single-chip RF receiving current level of less than 2mA for the first time among similar chips in China. In July 2024, Telink Micro announced that the latest low-power chip product, TLSR925x, was launched into the market, which is the first multi-protocol IoT wireless SoC in China to achieve working current as low as 1mA, and the company expects that the TLSR925x chip will achieve mass production in 2024, and has recently begun to develop and provide samples for leading customers, which will bring reliable and stable revenue to the company in the future.
Since the beginning of this year, Telink Micro has further increased R&D investment and deep cultivation, accelerated the pace of product promotion, and rapidly updated the matrix layout of products in IOT and audio. Telink Micro has completed the modem design of Bluetooth high speed and Starlight standards; Accelerate the layout of RISC-V architecture chips, covering chips with multiple market positioning from high-end to low-end; At the same time, it has also provided leading customers with Bluetooth high-precision positioning chips and software and hardware development kits, as well as high-performance wireless audio chips and software and hardware development kits. At present, Telink Micro has ultra-low latency and dual-mode wireless audio communication technology, which can achieve extremely low wireless audio transmission delay effect and achieve high audio synchronization between multiple devices. Nowadays, the company's audio chips are used by first-tier manufacturers including JBL, Sony, Xiaomi, etc., and the company's audio chip shipments have increased significantly. The data shows that from 2023 to the first three quarters of this year, the company's Bluetooth audio business revenue has achieved good growth.
At present, Telink Micro has a solid position in the Bluetooth field and is deeply involved in the formulation of industry standards. In July 2019, Telink Micro was elected and re-elected as a member of the Board of Directors of the International Bluetooth Special Interest Group (SIG), and is responsible for the management and operational decisions of the Bluetooth SIG together with Apple, Ericsson, Intel, Microsoft, Motorola Mobility, Nokia and Toshiba.
Today, Telink's products are used by a large number of domestic and foreign first-tier brands, including Google, Amazon, Xiaomi and other IoT ecosystems. Logitech, Lenovo and other first-line computer peripherals brands; Skyworth, Changhong, Haier and other first-line TV brands; JBL, Sony and other audio product brands; Oribo, Lumi and other smart home brands. The long-term cooperation with first-line brands reflects the company's leading position in product performance, as well as the high quality of products and services, which constitutes the company's competitive advantage and commercial barriers.
Recently, Telink's global chip shipments have exceeded the 2 billion mark, and the quality and reliability of its products, as well as the stability and reliability of its supply chain system, have withstood the test of the market. With the continuous growth of the downstream application market demand, as well as the company's iterative upgrading of products and the development of more new products suitable for various application scenarios, the company's business in various segments is expected to continue to grow in the future and bring better returns to investors.