乐鑫科技:EspressifSystemsQ12024Report

Q12024REPORT



Contents

03

About

Espressif

04



Business 04 Key Financial Data (Unaudited)



Highlights



04 Financial Indicators (Unaudited)



05 Financial Analysis



06



Management 06 Business Strategy 11 Developer Community Content

Report



07 Core Technologies 12 Business Model



08 Key Products - IoT Chips 14 Ownership of Securities



09 Key Products - Product Map 15 Risks and Uncertainties



10 Market



16



Consolidated 16 Consolidated 19 Consolidated Cash Flow



Financial Balance Sheet Statement



Statements 18 Consolidated



(Unaudited)



Income Statement



20



Further 20 Terms and Conditions



Information of the Report



21 List of abbreviations





ESPRESSIF SYSTEMS | Q1 2024 REPORT | AFABCOTUSTAEBSOPURTESESSIPFRESSIF



About Espressif



Espressif Systems is a public, multinational, fabless, semiconductor company focused on developing cu ting-edge,

wireless-communication, low-power chipsets. By leveraging wireless computing, we provide green, versatile and



cost-e fective AIoT solutions. We have accomplished a hardware-and-so tware, closed-loop development cycle for a

series of core technologies, including RF, Wi-Fi & Bluetooth LE network protocol stacks, RISC-V MCUs, AI instruction

sets and algorithms, operating systems, toolchains, compilers, IoT so tware application frameworks, Cloud, etc.



We have a diverse team of engineers from around the world. All company branches employ about 630 members of



sta f from almost 30 countries and regions, +78% of whom are based in our Research & Development Department.

We have eight R&D centers in five countries, including China (4 out of 8), India, the Czech Republic, Brazil and



Singapore.The company’s increasing reputation in recent years has been instrumental in a tracting talented



engineers from across the world. Being united by our passion for technology, our diversity is our strength, as it



allows the creative blending of di ferent kinds of knowledge, perspectives and ways of thinking.



1



global Wi-Fi MCU over 1 billion global millions of



market leader IoT chip shipments developers



Our R&D Centers



China



Shanghai Hefei



Suzhou Wuxi



Brazil India



Campinas Pune



Czech Singapore



Republic



Brno



Business Highlights (Unaudited)

Key Financial Data (Unaudited)



Three Months Ended Fiscal Year



CNY March 31, 2024 March 31, 2023 2023



Consolidated Statement of Income Data



Revenue 387,191,412 318,117,442 1,433,064,911

Gross profit 162,367,542 129,518,046 581,248,531

Selling expe 12,852,562 12,172,902 52,583,650

General and 14,871,808 13,915,033 61,618,348

Research a 103,846,179 85,483,014 403,713,557

Net income 53,915,482 31,087,430 136,204,637

Earnings pe



Basic 0.6849 0.3884 1.7012

Diluted 0.6849 0.3884 1.6929

March 31, 2024 December 31, 2023



Consolidated Balance Sheet Data



Cash, cash 1,283,096,284 1,397,511,953



Working cap 981,931,095 999,068,356



Total assets 2,147,991,446 2,203,800,366



Long-term o 85,445,197 74,166,946



Total shareh 1,882,489,321 1,913,000,228



Three Months Ended Fiscal Year



March 31, 2024 March 31, 2023 2023



Consolidated Cash Flow Data



Net cash pr -12,008,662 33,293,443 302,597,343

Non-GAAP



Stock-base 6,401,427 2,624,367 18,737,416

Non-GAAP 60,316,910 33,711,797 154,942,053

Key Financial Indicators (Unaudited)



Three Months Ended Fiscal Year



March 31, 2024 March 31, 2023 2023



Gross margin 41.93% 40.71% 40.56%

R&D-to-sales ratio 26.82% 26.87% 28.17%

EBITDA margin 16.00% 10.82% 10.01%

Weighted ROE 2.85% 1.69% 7.14%

Financial Analysis



Espressif’s total revenue in the first quarter of the current fiscal year (2024) was CNY . million, marking an



increase of 21.71% from CNY . million in the first quarter of 2023, due to the expansion of product categories.



Therefore, the net income was CNY . million, which marked an increase of 73.43% year-on-year, mainly due to

the increase of revenue.



The overall gross margin was 41.93% and remained stable. Customers in China’s mainland prefer purchasing chips,



while customers from the rest of the world and their OEM or ODM in China’s mainland prefer modules. We keep the



chip gross margin at a reasonable level, in order to support our future R&D expenditure.



Revenue by Revenue by Sales Top-5 Customer



Area in Q1 2024 Mode in Q1 2024 Concentration Rate,



2020 - Q1 2024



42.2%



29.0% 26.4% 28.1% 28.6%



72.3% 69.1%



China's Rest of Direct Indirect 2020 2021 2022 2023 Q



Mainland the World



Revenue by Product Category in Q1 2024



Chip Module Others



Q 42.7% 56.7% 0.6%



Q 34.2% 64.6% 1.2%



Key Financial Indicators in Q1 2024



48.4% Q Q



47.1%



40.7% 41.9%



36.7% 38.1%



26.9% 26.8%



16.0%



10.8% 8.2%



7.2%



Overall GM Chip GM Module GM EBITDA SG&A as % of R&D as % of



Margin sales sales





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Management Report

Business Strategy



Espressif Systems’ business strategy emanates from our service/product areas and our engagement with the



developer ecosystem.



Our product and service areas include AIoT chips, OS-level development environments, so tware tools, application



solutions, and value-added services, such as Cloud and Ma ter.The above-mentioned products ensure that we are

in the heart of numerous commercial AIoT applications in di ferent markets, including smart home, consumer



electronics, industrial automation, healthcare, etc.



Products Solutions Value-added services



SoCs HMI Smart Audio Cloud



Displays Solutions service



Modules



Ma ter



Face Low-Power Solution



Recognition Solutions



DevKits … …



OS-level development environments & software tools



Customers



Brands OEM/ODMs Module Houses Solution providers Makers





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Core Technologies



SoCs AI



ESP8266, ESP32, ESP32-S, ESP32- AFE (Audio Front-End) Algorithms



C, ESP32-H and ESP32-P Series qualified as a “So tware Audio Front-End



Solution” for Amazon Alexa Built-in devices.



Espressif o fers integrated, reliable, and 3A Audio Algorithms



energy-e ficient SoCs for Wi-Fi, including Acoustic Echo Cancelation (AEC),



Bluetooth Low Energy,Thread and Zigbee Audio Noise Suppression (ANS) and



to various segments of the IoT market. Automatic Gain Control (AGC), which



significantly reduce noise and echo in calls,



keeping high-quality voice intercoms stable at



all times.



OS



ESP-IDF Cloud



Espressif’s o ficial IoT Development



Framework. ESP RainMaker



It provides a self-su ficient SDK for any A comprehensive, development-free and



generic application-development on these maintenance-free AIoT solution for private



pla forms, using programming languages such Cloud deployment.



as C and C++.



ESP-IDF currently powers millions of devices It is an all-inclusive solution that covers



in the field, and enables building a variety of everything from the underlying chip to device



network-connected products, ranging from firmware, third-party voice-assistant



simple light bulbs and toys to major appliances integrations, mobile apps and the dashboard.



and industrial devices. Customers can build their own AIoT devices



and ecosystem, with ESP RainMaker.



Software



With our open-source so tware, Matter



such as Espressif's IoT



Development Framework ESP-IDF, One-stop Matter Solution



Audio Development Framework This is the culmination of



ESP-ADF, Mesh Development Espressif’s ongoing contribution to



Framework ESP-MDF, Cloud the Matter platform in various



Connectivity Pla form ESP areas, including protocol



RainMaker, Facial Recognition formulation, core stack



Development Framework ESP- implementation and certification



WHO, and Voice-Controlled test events.



Assistant ESP-Skainet, we have



developed a framework for building



AIoT applications, which is both 7

complete and innovative.





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Key Products - AIoT Chips



Espressif is recognized as a market leader in the field of Wi-Fi MCUs. We released our first Wi-Fi MCU in 2014, and



our first Wi-Fi/Bluetooth LE combo chip in 2016. In 2020, we successfully developed our own RISC-V MCU core,



adding it to our product por folio, while in 2021, we released our firstThread/Zigbee/Bluetooth LE combo chip and

a 2. GHz Wi-Fi 6 chip. In 2022, we released our first 2.4 & GHz Wi-Fi 6 chip. In 2023, we revealed ESP -P , a



dual-core RISC-V MCU, expanding the current por folio to address the high-performance computation needs of IO-

Rich, HMI, and AIoT applications. In 2024, we announced ESP -H , a low-power SoC with 802.15.4 & Bluetooth 5.4

(LE), which caters to increasing demands for low-power wireless devices, boasting significant upgrades in power



consumption, connectivity features, and memory expansion capabilities.



In fact, we have been constantly diversifying our product por folio, introducing new solutions through our numerous

investments.Thus, we now have various product lines in the main short- and medium-range connectivity



technologies and our product range has expanded to AIoT SoCs. Our core technologies are self-developed,



including connectivity IPs, RF components, RISC-V IPs, so tware frameworks, tools, AI functions etc.



We also provide IoT modules based on our chips.The benefit for customers is that they can get direct support from

us, shortening and optimizing their supply chain, even in case of chip shortages.



Key Technologies



Medium Range Short Range



Wi-Fi E Bluetooth 5.4 (LE) Thread



GHz Wi-Fi 6 Bluetooth 5.3 (LE) Zigbee



Connectivity 2. GHz Wi-Fi 6 Bluetooth 5.2 (LE)



Wi-Fi 4 Bluetooth 5 (LE)



Bluetooth 4.2



RISC-V MCU AI Multimedia



32-bit Single-Core MHz Voice Wake-up H. Encoder



32-bit Single-Core 1 MHz O fline Voice Commands



Computing 32-bit Single-Core 1 MHz Face and Object Recognition



32-bit Single-Core 2 MHz



32-bit Dual-Core 4 MHz AI



32-bit Multiple-Core



Technical Breadth In progress





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Key Products - Product Map



ESP32 ESP32 -S3 AI ESP32 -P4 AI



32-bit Xtensa MCU 32-bit Xtensa MCU 32-bit RISC-V MCU



H. encoding



High- ESP32 -S2 ESP32 -H4

Performance 32-bit Xtensa MCU 32-bit RISC-V MCU

ESP 8266 ESP32 -C2 ESP32 -H2 ESP32 -C5

32-bitTensilica MCU 32-bit RISC-V MCU 32-bit RISC-V MCU 32-bit RISC-V MCU

Cost-



Effective



ESP32 -C3 ESP32 -C6



32-bit RISC-V MCU 32-bit RISC-V MCU



Classic Relatively New



New





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Market



The market for wireless SoCs is truly diverse, including applications for smart homes (e.g., smart lights, air



conditioners, ovens, co fee machines, etc.), consumer electronics (e.g., smart speakers, drones, etc.), industrial



automation (e.g., mechanical arms), smart agriculture (e.g., soil PH detector, CO detector, etc.), healthcare (e.g.,



monitoring devices for diabetes, blood pressure, etc.), energy control (solar energy devices, EV chargers, etc.), the

internet of vehicles (OBD devices, dashboards, etc.), and education (talking pens, interactive whiteboards, etc.).



We seem to be witnessing an economic recovery, with both new and existing customers showing growth in



business. At the same time, we have also seen the emergence of applications in new areas, such as beauty



devices. A ter experiencing the low point of 2023, clients in the new energy sector have also begun to show signs of

recovery.



Smart Home Consumer Industrial Smart



Electronics Automation Agriculture



Smart Ovens Smart Speakers Mechanical Arms Soil PH Detector



Healthcare Energy Internet of Education



Management Vehicles



Medical Detectors Smart Solar Intelligent Talking Pens



Panels instrument panel





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Developer Community Contents



ITEM Mar 31, 2024 Dec 31, 2023 change



GitHub (Worldwide open-source development platform)



ESP Projects 64,000 59,100 4,900



ESP Projects 44,800 43,700 1,100



Gitee (Chinese open-source development platform)



ESP Projects 3,379 3,153 226



ESP Projects 2,123 2,068 55



CSDN (Chinese Tech-blog platform) [1]



Search results for ESP / 121,840



Search results for ESP / 48,213



Hackaday (open-source hardware platform)



ESP projects 5,859 5,691 168



ESP projects 6,277 6,252 25



Reddit



ESP group members 81,000 76,046 4,954



ESP group members 62,000 60,961 1,039



bilibili (Chinese video-sharing platform)



O ficial account followers 31,672 30,261 1,411



O ficial account views 1,001,858 942,075 59,783



YouTube



O ficial account subscribers 20,000 18,800 1,200



O ficial account views 1,033,166 968,573 64,593



ESP community videos [2] >1,000,000 819,109



ESP community videos [3] >1,000,000 872,026



Views of most watched ESP community video ～ 4.2m ～ 4.1m ～ 0.12m



Views of most watched ESP community video ～ 1.7m ～ 1.7m ～ 0.03m



N.B.：



Statistical data derived from di ferent pla forms may be based on di ferent collecting methods. It is possible for certain pla forms to modify their algorithms from time to

time and, therefore, impact the resulting statistical data.The above-mentioned data resulted from the Company’s research at the end of each quarter reported here,



unless otherwise stated.



The search results of the keyword "ESP " include the ESP series, ESP -C series, ESP -S series, and ESP -H series.



[1] Due to the unpredictable adjustments in CSDN search results, which have rendered them non-comparable over time, we have ceased tracking this data.



[2] [3] As the quantity of YouTube videos pertaining to ESP and ESP surpasses the maximum retrieval limit of 1,000,000 imposed by our API, we have



suspended the updating of this dataset





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Business Model

Business-to-Developer-to-Business (B2D2B)



Espressif has deployed the Business-to-Developer type of marketing, not only because it has gained prominence in

recent years, but also because it has proven to be more e fective since the influence of developers on organizations

of all sizes has gained traction. In other words, most developers are R&D employees in various companies and bring

forth business opportunities from the companies they work for.



This way, the developer ecosystem we have created at Espressif demonstrates how the value of networks can grow

exponentially:



The more developers we a tract as customers, the more hardware and so tware solutions we generate.



The more successful hardware and so tware solutions we create, the more our reputation spreads with positive



feedback from happy customers/developers.



The above-mentioned interaction between people in our network prompts the creation of more content, which -in

turn- a tracts more users/developers searching for new content.



Likewise, other third-party development pla forms join our ecosystem and bring in new developers, as our



influence continues to grow.



Having successfully applied the B D B model, Espressif can now focus on R&D investments, while maintaining a



small business team that supports a large number of customers directly. In fact, most of our revenue is gained



through direct sales.





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Books about ESP Products



More than 200 books on how to use ESP products can be found in the developer community and cover over a



dozen languages.

TEXT





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Ownership of Securities

Basic information of securities



Share types Ordinary share



Share capital 80,789,724 (as of Mar 31, 2024)



Listing Shanghai Stock Exchange (SSE)



Ticker 688018.SH



Listing Date 2019-07-22



Shareholder Structure as of Mar 31, 2024



Shareholder Share Numbers Percentage (%)



Espressif (Hong Kong) Investment Ltd. 33,047,244 40.91



Shinvest Holding Ltd. 2,226,179 2.76



Hong Kong Securities Clearing Company Limited 1,418,937 1.76



Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu 1,203,899 1.49



Private Equity Securities Investment Fund No.1



Ningbo Meishan FreeTrade Port LeTun Investment Management 1,046,030 1.29



Partnership (Limited Partnership)



Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu 978,025 1.21



Private Equity Securities Investment Fund No.3



ICBC-AXA LIFE - Long-term Dividend Product 628,951 0.78



ROBINA WOOD 612,643 0.76



SPD - Debang Semiconductor Industry Hybrid Initiated Securities 602,322 0.75



Investment Fund



Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu 585,756 0.73



Private Equity Securities Investment Fund No.2



Top 10 shareholders 42,349,986 52.44



Espressif Systems (Shanghai) Co., Ltd. Repurchase Special 2,528,483 3.13



Securities Account



Other public shareholders 35,911,255 44.43



Total of outstanding shares 80,789,724 100.00





ESPRESSIF SYSTEMS | Q1 2024 REPORT | MANAGEMENT REPORT



Risks and Uncertainties



Financial Risk



The Company performs periodic credit evaluations of its customers’ financial



condition and generally requires of its customers no collateral.The Company



provides an allowance for expected credit losses, based on the net amount



expected to be collected on such receivables. Losses have not been



significant for any of the periods presented in this report.



R&D Risk



Espressif’s research and development strategy is focused on leveraging new



technologies for the creation of innovative AIoT products. Any delays or



changes in the development of these technologies by our industry partners, or



a failure of our products to achieve market acceptance, could compromise our



competitive position.



Competitors



As the market for AIoT products grows, we face an increasing antagonism from



relatively large competitors, such as Realtek, MediaTek, Infineon, NXP,



Qualcomm and others. Intense competition from current players, as well as new



entrants, such as Silicon Labs and Nordic, may reduce our product sales and



market share.



Suppliers



A significant portion of the Company’s products is fabricated by theTaiwan



Semiconductor Manufacturing Company Limited (TSMC).The inability ofTSMC



to deliver wafers to the Company in a timely manner could impact the production



of the Company’s products for a certain period of time, which could have an



adverse e fect on the Company’s business, financial condition, results of



operations and cash flow.



Customers



The Company sells directly to end customers, distributors, solution providers and



contract manufacturers. Our customers are a mix of several big customers and



numerous small customers.The concentration ratio for our top-five customers



was 28.59% in the first quarter of 2024.





ESPRESSIF SYSTEMS | Q1 2024 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



Consolidated Financial

Statements (Unaudited)

Consolidated Balance Sheet (Unaudited)



CNY March 31, 2024 December 31, 2023



Assets

Current assets:



Cash and cash equivalents 494,579,962 464,011,234



Held for trading financial assets 60,071,822 90,315,219



Notes receivable 21,309,635 42,082,006



Accounts receivable, net 262,456,721 251,641,263



Accounts receivable, financing



Prepayments 2,050,962 9,802,407



Other receivables 9,035,881 9,157,910



Including: Interest receivable



Inventories 283,476,084 242,352,587



Other current assets 29,006,955 106,338,922



Total current assets 1,161,988,022 1,215,701,548



Non-current assets:



Debt investment 728,444,500 753,024,500



Investment in other equity assets 36,079,840 36,079,840



Other non-current financial assets 34,879,347 34,879,347



Fixed assets 72,714,871 76,401,004



Right-of-use assets 22,218,639 15,937,207



Intangible assets 1,438,544 1,633,298



Long-term deferred expenses 14,093,512 9,337,814



Deferred income tax assets 76,134,171 60,805,808



Total assets 2,147,991,446 2,203,800,366





ESPRESSIF SYSTEMS | Q1 2024 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



Consolidated Balance Sheet (Unaudited)



CNY March 31, 2024 December 31, 2023



Liabilities & Shareholders’ Equity

Current



Accou 87,841,986 79,841,809



Contr 19,979,929 13,318,710



Payroll payable 45,139,590 102,238,914



Taxes 4,773,054 615,415



Other 7,773,865 11,525,208



Non-c 13,144,244 8,591,447



Other 1,404,259 501,689



Total cu 180,056,928 216,633,192



Non-cu



Lease liabilities 9,667,506 8,454,747



Provis 615,310 627,089



Defer 75,162,381 65,085,110



Total lia 265,502,125 290,800,138



Owners



Share 80,789,724 80,789,724



Capital reserves 1,364,909,809 1,358,508,382



Less: 235,744,552 146,969,563



Other 22,014,478 24,067,306



Surplu 55,460,195 55,460,195



Retain 595,059,666 541,144,184



Total sh 1,882,489,321 1,913,000,228



Total liabilities and shareholders' equity 2,147,991,446 2,203,800,366





ESPRESSIF SYSTEMS | Q1 2024 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



Consolidated Income Statement (Unaudited)



Three Months Ended



CNY March 31, 2024 March 31, 2023



Revenue 387,191,412 318,117,442



Cost of Revenue 224,823,870 188,599,396



Gross Profit 162,367,542 129,518,046



Taxes an 457,527 1,786,501



Selling e 12,852,562 12,172,902



General 14,871,808 13,915,033



Researc 103,846,179 85,483,014



Financia -1,901,518 -3,649,089



Includ 237,314 264,117



Interest income 3,863,524 2,014,022



Add: Other income 13,216,607 389,875



Investment income (mark"-" for loss) 6,308,354 6,258,547



Income 71,822 7,829



Credit im



Assets -253,454 -938,171



Assets d -53 4,739



Operati 51,584,260 25,532,504



Add: No



Less: N 26,096 2,465



Income 51,558,164 25,530,039



Provisio -2,357,318 -5,557,391



Net Inc 53,915,482 31,087,430



Earning



Basic 0.6849 0.3884



Dilute 0.6849 0.3884



Three Months Ended



CNY March 31, 2024 March 31, 2023



Net Inc 53,915,482 31,087,430



Other c



Changes to the fair value of investment in other



equity instruments



Curren -2,052,828 -5,268,512



Other c -2,052,828 -5,268,512



Compre 51,862,654 25,818,918





ESPRESSIF SYSTEMS | Q1 2024 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



Consolidated Cash Flow Statement (Unaudited)



Three Months Ended



CNY March 31, 2024 March 31, 2023



Operating Activities



Cash from sales of merchandise and provision of services 440,315,774 316,945,873



Tax refund 7,690,353 22,390,791



Other received cash related to operational activities 7,607,522 6,144,834



Subtotal of cash inflow from operational activities 455,613,649 345,481,498



Cash paid for merchandise and services 287,267,252 145,033,851



Cash paid to and for employees 155,448,094 134,472,294



Cash paid for taxes and surcharges 1,301,152 13,455,282



Other paid cash related to operational activities 23,605,814 19,226,628



Subtotal of cash ou flow from operational activities 467,622,312 312,188,056



Net cash provided by operating activities -12,008,662 33,293,443



Investing activities



Cash arising from the disposal of investments 270,580,123 817,734,181



Cash arising from investment income 784,450 1,754,367



Net cash arising from the disposal of fixed assets, intangible assets and other 7,454 17,850



long-term assets



Other received cash relating to investment activities 526,000 311,000



Subtotal of cash inflow from investment activities 271,898,027 819,817,397



Cash paid for the purchase and construction of fixed assets, intangible assets and 8,275,595 14,725,260



other long-term assets



Cash paid for investments 120,000,000 863,000,000



Other paid cash relating to investment activities 1,000,000 300,000



Subtotal of cash ou flow from investment activities 129,275,595 878,025,260



Net cash provided by investment activities 142,622,432 -58,207,863



Financing activities



Cash arising from the issuance of common stock 727,886



Including: Cash arising from subsidiaries absorbing investments by minority



shareholders



Subtotal of cash inflow from financing activities 727,886



Cash paid for the distribution of dividends and profits, or payment of interests



Including: dividends and profits paid to minority shareholders by subsidiaries



Other paid cash relating to financing activities 93,121,892 3,331,678



Subtotal of cash ou flow from financing activities 93,121,892 3,331,678



Net cash provided by financing activities -93,121,892 -2,603,791



Impact of fluctuation in exchange rates on cash and cash equivalents -5,716,205 1,471,208



Net increase in cash and cash equivalents 31,775,672 -26,047,003



Add: Cash and cash equivalent at the commencement 459,565,727 350,677,354



of the period



Cash and cash equivalents at the end of the period 491,341,398 324,630,351





ESPRESSIF SYSTEMS | Q1 2024 REPORT | FURTHER INFORMATION



Further Information



Terms and Conditions of the Report



Responsibility Statement



The Board of Directors, the Board of Supervisors and executive management of the Company warrant that the



contents of this report are true, accurate and complete, and do not contain any false information, misleading



statements or material omissions, severally and jointly accepting any legal responsibility thereof.



Shanghai, 18 April 2024

Espressif Systems



Board of Directors Board of Supervisors



Teo Swee Ann Lv Zhihua



Founder and Chairman Employee-elected



Ng Pei Chi Fu Hanyu



InformationTechnology O ficer Shareholder-elected



Wang Jue Wang Yiwen



Deputy General Manager Shareholder-elected



TeoTeck Leong Executive Management



Shareholder-elected



Lan Yuzhe Teo Swee Ann



Independent Director Founder and CEO



Koh Chuan Koon Wang Jue



Independent Director Deputy General Manager



Lee Sze Chin Shao Jingbo ESPRESSIF



Independent Director Financial Director



Declaration

Forward-looking Statements SYSTEMS



This report contains forward-looking statements and/or assessments about the business,



financial condition, performance and strategy of the Espressif Group.These statements and/or



assessments are based on assumptions and management expectations resting upon currently



available information and current estimates.These are subject to a multitude of uncertainties



and risks, many of which are partially or entirely beyond Espressif’s control. Espressif’s actual



business development, financial condition, performance and strategy may, therefore, di fer from



what is discussed in this report.





ESPRESSIF SYSTEMS | Q1 2024 REPORT | FURTHER INFORMATION



List of abbreviations



AI Artificial Intelligence



AIoT Artificial Intelligence and Internet ofThings



Bluetooth LE Bluetooth Low Energy



CEO Chief Executive O ficer



EBITDA Earnings Before Interest,Taxes, Depreciation and Amortization



Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD.



GM Gross Margin



IC Integrated Circuit



IoT Internet ofThings



OBD On-Board Diagnostics



ODM Original Design Manufacturer



OEM Original Equipment Manufacturer



R&D Research & Development



RF Radio Frequency



RISC-V MCU Reduced Instruction Set Computer-V Microcontroller Unit



ROE Return on Earnings



SG&A Selling, General and Administrative



SH Shanghai



SoCs System on Chips



Investor Relations

ir@espressif.com



Official Platforms Social Media



.espressif.com twi ter.com/EspressifSystem



blog.espressif.com facebook.com/espressif



github.com/espressif linkedin.com/company/espressif-systems

esp32.com youtube.com/EspressifSystems



instagram.com/espressif_systems_o ficial

bilibili.espressif.com



Copyright © 2024 Espressif Systems (Shanghai) Co., Ltd. All rights reserved. All trade names, trademarks and registered



trademarks mentioned in this document are the property of their respective owners, and are hereby acknowledged.The term



“Espressif” refers to Espressif Systems (Shanghai) Co., Ltd. and/or its subsidiaries.This report is wri ten in both Chinese and



English. In case of any discrepancies between Chinese and foreign interpretations, the Chinese version shall prevail.



All amounts presented in these condensed Consolidated Financial Statements are shown in CNY unless stated otherwise. Slight



discrepancies between the amounts presented may occur due to rounding.