乐鑫科技(688018):ESPRESSIFSYSTEMSQ12026REPORT
Espressif independently designs and develops its own chip products, with core IPs being self-developed. These chips are 75 equipped with rich features, ensuring that Espressif’s products stand out in the market and avoid the pitfalls of homogenized 50 competition. By controlling the entire design process, Espressif can innovate rapidly and introduce unique functionalities that set 25 our products apart from competitors, providing a distinctive edge in the IoT semiconductor industry. 0 2019-07 2026-03 Full-Stack Engineering Capability Espressif possesses comprehensive engineering development capabilities that span from IP development to complete chip design, operating systems, ?rmware, software frameworks, application solutions, hardware design, edge AI, cloud, and apps. This full-stack engineering expertise allows Espressif to offer highly integrated solutions that meet a wide range of customer needs. The ability to control and optimize every layer of the technology stack is unique in the industry and enables Espressif to deliver superior products and services that are seamlessly integrated and highly ef?cient. Superior Cost-Effective and Stable Support Espressif's products are known for their high performance and low cost, making them competitive in the market. We provide the cost ef?ciency necessary to promote large-scale commercialization in downstream industries. Additionally, we ensure the long-term availability of our products and offer stable and enduring software support, ensuring that customers can rely on their investments for extended periods. This commitment to value and reliability strengthens customer trust. Extensive Developer Community Support Espressif has garnered support from a vast community of professional engineers who are familiar with Espressif's development platform and actively promote its value proposition. This large and engaged community not only aids in the rapid adoption and dissemination of Espressif’s technologies but also contributes to continuous improvement through feedback and shared knowledge. The robust community support ampli?es Espressif's market presence and Business Highlights Key Financial Data Three Months Ended Fiscal Year CNY March 31, 2026 March 31, 2025 2025 Consolidated Statement of Income Data 647,971,432 557,849,869 2,565,275,432 Revenue Gross pro?t 314,322,323 241,947,517 1,196,087,930 23,147,827 17,019,921 81,799,952 Selling expenses 21,736,889 General and administrative expenses 17,853,584 88,725,443 154,485,482 Research and development expenses 126,192,049 603,427,213 Net income 136,045,431 94,441,673 499,809,218 Net income attributable to Espressif 135,642,156 93,704,355 497,840,142Earnings per share: Basic 0.8160 0.6088 3.1520 Diluted 0.8160 0.6088 3.1358 Consolidated Cash Flow Data Net cash provided by operating activities 3,417,302 74,972,387 522,622,032Non-GAAP Adjustment Stock-based compensation 6,526,170 5,309,168 43,878,803 Non-GAAP net income attributable to Espressif 142,168,326 99,013,522 541,718,945March 31, 2026 December 31, 2025 Consolidated Balance Sheet Data 3,542,304,356 3,518,352,994 Working capital Total assets 5,041,543,851 5,047,755,518 Long-term obligations 151,064,525 141,345,125 Total shareholders’ equity 4,527,483,104 4,489,877,928 N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2025, the earnings per share for each reporting period have been recalculated based on the adjusted share count. Key Financial Indicators Three Months Ended Fiscal Year March 31, 2026 March 31, 2025 2025 48.51% 43.37% 46.63% Gross margin R&D-to-sales ratio 23.84% 22.62% 23.52% 24.19% 18.98% 22.41% EBITDA margin Net income margin 21.00% 16.93% 19.48% Weighted ROE 3.01% 4.26% 17.33% Financial Analysis Revenue & Margin: Q1 revenue reached CNY 647.97 million (+16.16% YoY). Overall gross margin stood at 48.5%, underpinned by 49.6% for IoT chips and 47.7% for modules/kits. This robust margin re?ects the industry’s shift toward "functionality-driven" growth, where our products serve as high-value development platforms. Pro?tability & Resilience: Structurally, revenue growth experienced a temporary slowdown due to the macroeconomic environment, while the expense side re?ected front-loaded investments for mid-to-long-term growth, resulting in a timing mismatch between the two. However, bene?ting from a steady expansion in gross margin, the company still achieved robust pro?t growth, demonstrating signi?cant operational resilience. Cash Flow & Inventory: Operating cash ?ow was lower than net pro?t due to a proactive inventory strategy. In anticipation of potential price increases for key raw materials, we increased strategic stockpiling to lock in costs and ensure supply stability, thereby enhancing delivery certainty for downstream customers. This deliberate mismatch is expected to normalize as supply chain price volatility moderates. ROE & Capital: The decline in ROE was a result of capital dilution following the new share issuance completed in Q3 2025, rather than a shift in underlying pro?tability. Revenue by Area Revenue by Sales Top-5 Customer in Q1 2026 Mode in Q1 2026 Concentration Rate 2021 2022 2023 2024 2025 2026Q1 Revenue by Product Category
Wi-Fi 4 Bluetooth Wi-Fi 6 Thread Wi-Fi 6E Zigbee Matter Ultra-Low PowerProduct Market Tenure In the IoT industry, a product’s market tenure serves as a critical indicator of credibility. It re?ects long-term validation and stable performance across complex application environments—reliability that cannot be replicated by speed or short-term iteration alone. Long-Tail Value Products within the IoT ecosystem are capable of sustaining revenue contributions over extended periods. Unlike consumer mobile devices, IoT chips typically follow a "Slow Burn, High Retention" model where reliability is the primary purchasing driver. Suppliers A signi?cant portion of the Company’s products is fabricated by the Taiwan Semiconductor Manufacturing Company Limited (TSMC). The inability of TSMC 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 effect on the Company’s business, ?nancial condition, results of operations and cash ?ow. 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-?ve customers was 20.3% in Q1 2026. Consolidated Financial Statements Consolidated Balance Sheet (unaudited)Consolidated Balance Sheet (unaudited)Consolidated Income Statement (unaudited)Consolidated Cash Flow Statement (unaudited)Consolidated Cash Flow Statement - Indirect Method (unaudited) F I S S Y S S E T Declaration Further Information Terms and Conditions of the Report Responsibility Statement The Board of Directors, and the 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, 20 April 2026 Espressif Systems Executive Management Board of Directors Teo Swee Ann Teo Swee Ann Founder and Chairman Founder and CEO Ng Pei Chi Wang Jue Information Technology Director Board Secretary Wang Jue Shao Jingbo Board Secretary Financial Director Teo Teck Leong Shareholder-elected Chen Myn Independent Director Lee Kian Soon Independent Director Leong Foo Leng Independent Director Forward-looking Statements This report contains forward-looking statements and/or assessments about the business, ?nancial 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 R E P M S S E 中财网
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