乐鑫科技:EspressifSystemsQ12023

Q1
2023
REPORTContents
03
About
Espressif
04
Business 05 Financial Analysis
Highlights (Unaudited)
06
Management 06 Business Strategy 11 Developer Community
Report Contents
07 Core Technologies 12 B2D2B Business Model
08 Key Products - AIoT 13 Ownership of Securities
Chips
09 AIoT Chip Matrix 14 Risks and Uncertainties
10 Market
15
Consolidated 15 Consolidated 18 Consolidated Cash
Financial Balance Sheet Flow Statement
Statements
(Unaudited) 17 Consolidated Income
Statement
19
Further 19 Terms and Conditions
Information of the Report
20 List of abbreviationsESPRESSIF SYSTEMS | Q1 2023 REPORT | AFABCOTUST A EBSOPURTE SESIPFRESSIF
About Espressif
Espressif Systems is a public multinational fabless semiconductor company focused on developing cutting-edge
wireless-communication low-power chipsets. By leveraging wireless computing we provide green versatile and cost-
effective AIoT solutions. We have accomplished a hardware-and-software 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 software application frameworks Cloud etc.We have a diverse team of engineers from around the world. All company branches employ about 600 members of
staff from almost 30 countries and regions +76% 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 attracting 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
different kinds of knowledge perspectives and ways of thinking.global Wi-Fi MCU products distributed millions of users
market share* all over the world
Our R&D Centers
China
Shanghai Hefei
Suzhou Wuxi
Brazil India
Campinas Pune
Czech Singapore
Republic
Brno
* Market share data from TSR
3ESPRESSIF SYSTEMS | Q1 2023 REPORT | BUSINESS HIGHLIGHTS (UNAUDITED)
Business Highlights (Unaudited)
Key Financial Data (Unaudited)
Three Months Ended Fiscal Year
CNY March 31 2023 March 31 2022 2022
Consolidated Statement of Income Data
Revenue 318117442 288948065 1271127201
Gross profit 129518046 118589940 508251068
Selling expenses 12172902 9194881 49323100
General and administrative expenses 13915033 13404541 59639944
Research and development expenses 85483014 74848290 337121814
Net income 31087430 27852092 97323103
Earnings per share:
Basic 0.3884 0.3475 1.2129
Diluted 0.3884 0.3475 1.2127
March 31 2023 December 31 2022
Consolidated Balance Sheet Data
Cash cash equivalents and financial investments 1223950262 1200219436
Working capital 1441639623 1518383808
Total assets 2089451135 2082796825
Long-term obligations 71961284 65591788
Total shareholders’ equity 1855848707 1826677535
Three Months Ended Fiscal Year
March 31 2023 March 31 2022 2022
Consolidated Cash Flow Data
Net cash flow from operating activities 33293443 -36870506 71321658
Non-GAAP Adjustment
Stock-based compensation 2624367 4825008 14726019
Non-GAAP net income 33711797 32677101 112049122
Key Financial Indicators (Unaudited)
Three Months Ended Fiscal Year
March 31 2023 March 31 2022 2022
Gross margin 40.71% 41.04% 39.98%
R&D-to-sales ratio 26.87% 25.90% 26.52%
EBITDA margin 10.82% 11.67% 9.29%
Weighted ROE 1.69% 1.51% 5.36%
4ESPRESSIF SYSTEMS | Q1 2023 REPORT | BUSINESS HIGHLIGHTS (UNAUDITED)
Financial Analysis
Espressif’s total revenue in the first quarter of the current fiscal year (2023) was CNY 318.12 million marking an
increase of 10.10% from CNY 288.95 million in the first quarter of 2022 due to the expansion of product categories.Therefore the net income was CNY 31.09 million which marked an increase of 11.62% quarter-on-quarter mainly due
to the increase of revenue.The overall gross margin was 40.71% 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 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 2023 Mode in Q1 2023 Concentration Rate 2020 - Q1 2023
42.2%
29.0%30.8%26.4%
69.5%67.0%
China's
Rest of
Direct Indirect 2020 2021 2022 Q1 2023
Mainland the World
Revenue by Product Category in Q1 2023
Chip Module Others
Q1 2023 34.2% 64.6% 1.2%
Q1 2022 34.4% 64.9% 0.7%
Key Financial Indicators in Q1 2023
50.0% Q1 2022 Q1 202348.4%
41.0%40.7%
36.3%36.7%
25.9%26.9%
11.7%10.8%
7.8%8.2%
Overall GM Chip GM Module GM EBITDA
SG&A as % of ? R&D as % of ?
Margin sales sales
5ESPRESSIF SYSTEMS | Q1 2023 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 software tools application
solutions and value-added services such as Cloud and Matter. The above-mentioned products ensure that we are in
the heart of numerous commercial AIoT applications in different markets including smart home consumer electronics
industrial automation healthcare etc.Products Solutions Value-added services
SoCs Cloud
HMI Smart
Audio
service
Displays Solutions
Modules
Matter
Face
Low-Power
Solution
Recognition Solutions
DevKits … …
OS-level development environments & software tools
Customers
Brands OEM/ODMs Module Houses Solution providers Makers
6ESPRESSIIF SYSTEMS || Q1 2023 REPORT || MANAGEMENT REPORT
Core Technologies
SoCs AI
AFE (Audio Front-End) AlgorithmsESP8266 ESP32 ESP32-S ESP32- qualified as a “Software Audio Front-EndC ESP32-H and ESP32-P Series Solution” for Amazon Alexa Built-in devices.Espressif offers integrated reliable and
energy-efficient SoCs for Wi-Fi         3A Audio Algorithms
Bluetooth Low Energy Thread and Zigbee including Acoustic Echo Cancelation (AEC)
to various segments of the IoT market. Audio Noise Suppression (ANS) and 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 official IoT Development Framework.It provides a self-sufficient SDK for any generic ESP RainMaker
application-development on these platforms
using programming languages such as C and A comprehensive development-free and
C++. maintenance-free AIoT solution for private Cloud deployment.ESP-IDF currently powers millions of devices in
the field and enables building a variety of It is an all-inclusive solution that covers
network-connected products ranging from everything from the underlying chip to device
simple light bulbs and toys to major appliances firmware third-party voice-assistant
and industrial devices. integrations mobile apps and the dashboard.Customers can build their own AIoT devices
and ecosystem with ESP RainMaker.Software
With our open-source software Matter
such as Espressif's IoT
Development Framework ESP-IDF One-stop Matter Solution
Audio Development Framework
ESP-ADF Mesh Development This is the culmination of
Framework ESP-MDF Cloud Espressif’s ongoing contribution to
Connectivity Platform ESP the Matter platform in various
RainMaker Facial Recognition areas including protocol
Development Framework ESP- formulation core stack
WHO and Voice-Controlled implementation and certification
Assistant ESP-Skainet we have test events.developed a framework for
building AIoT applications which
is both complete and innovative.
7ESPRESSIF SYSTEMS | Q1 2023 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 portfolio while in 2021 we released our first Thread/Zigbee/Bluetooth LE 5 combo chip and a 2.4GHz
Wi-Fi 6 chip. In 2022 we released our first 2.4 & 5GHz Wi-Fi 6 chip and our product range has expanded to Wireless
SoCs. In 2023 we revealed ESP32-P4 a dual-core RISC-V MCU expanding the current portfolio to address the high-
performance computation needs of IO-Rich HMI and AIoT applications.In fact we have been constantly diversifying our product portfolio introducing new solutions through our numerous
investments. Thus we now have various product lines in the main short- and medium-range connectivity technologies.Our core technologies are self-developed including connectivity IPs RF components RISC-V IPs software
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.Wireless SoC
Medium Range Short Range
Wi-Fi 6E Bluetooth 5.3 (LE) Thread
5GHz Wi-Fi 6 Bluetooth 5.2 (LE) Zigbee
Connectivity
2.4GHz Wi-Fi 6 Bluetooth 5 (LE)
Wi-Fi 4 Bluetooth 4.2
RISC-V MCU AI
32-bit Single-Core 96MHz Voice Wake-up
32-bit Single-Core 120MHz Voice Control
32-bit Single-Core 160MHz Face Recognition AI
Computing 32-bit Single-Core 240MHz
32-bit Dual-Core 400MHz
32-bit Multiple-Core
Technical Breadth
In progress
8
Technical DepthESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Key Products - AIoT Chip Matrix
ESP32 - P4
Dual-Core
32-bit RISC-V MCU
400 MHz AI Functions
H.264 encoding
ESP 32 ESP32 - S3
32-bit Xtensa MCU 32-bit Xtensa MCU
Dual-Core
Wi-Fi 4 AI Functions
240 MHz Bluetooth 4.2 Wi-Fi 4
Bluetooth 5 (LE)
ESP32 -S2 ESP32 - C5
Single-Core
32-bit Xtensa MCU 32-bit RISC-V MCU
240 MHz Wi-Fi 4 2.4&5 GHz Wi-Fi 6
Bluetooth 5 (LE)
ESP 8266 ESP32 - C3 ESP32 - C6
Single-Core
32-bit Tensilica MCU 32-bit RISC-V MCU 32-bit RISC-V MCU
160 MHz Wi-Fi 4 Wi-Fi 4 2.4GHz Wi-Fi 6
Bluetooth 5 (LE) Bluetooth 5 (LE)
Thread
Zigbee
ESP32 -
C2Single-Core
120 MHz 32-bit RISC-V MCU
Wi-Fi 4
Bluetooth 5 (LE)
ESP32 -H2
Single-Core
32-bit RISC-V MCU
96 MHz Bluetooth 5 (LE)
Thread
Zigbee
2014201620192020202120222023
9ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Market
The market for wireless SoCs is truly diverse including applications for smart homes (e.g. smart lights air conditioners
ovens coffee machines etc.) consumer electronics (e.g. smart speakers drones etc.) industrial automation (e.g.mechanical arms) smart agriculture (e.g. soil PH detector CO2 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.).Consumer Industrial Smart
Smart Home
Electronics Automation Agriculture
Smart Ovens Smart Speakers Mechanical Arms Soil PH Detector
Energy Internet of
Healthcare Management Vehicles Education
Medical Detectors Smart Solar Panels OBD Devices Talking Pens
10ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Developer Community Contents
ITEM Mar 31 2023 Dec 31 2022 change%
GitHub (Worldwide open-source development platform)
ESP32 Projects 46981 41891 12%
ESP8266 Projects 40813 39294 4%
Gitee (Chinese open-source development platform)
ESP32 Projects 2731 2629 4%
ESP8266 Projects 1914 1868 2%
CSDN (Chinese Tech-blog platform)
Search results for ESP32 99995 93242 7%
Search results for ESP8266 38177 36286 5%
Hackaday (open-source hardware platform)
ESP32 projects 4973 4702 6%
ESP8266 projects 6141 6101 1%
Reddit
ESP32 group members 64805 59619 9%
ESP8266 group members 60689 59004 3%
bilibili (Chinese video-sharing platform)
Official account followers 25520 24064 6%
Official account views 712303 658235 8%
YouTube
Official account subscribers 16058 14800 9%
Official account views 914099 810523 13%
ESP32 community videos 736932 641926 15%
ESP8266 community videos 839813 778090 8%
Views of most watched ESP32 community video around 3.7m around 3.4m
Views of most watched ESP8266 community video around 1.7m around 1.6m
N.B.：
Statistical data derived from different platforms may be based on different collecting methods. It is possible for certain platforms 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 "ESP32" include the ESP32 series ESP32-C series ESP32-S series and ESP32-H series.
11ESPRESSIF SYSTEMS | Q1 2023 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 effective 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 attract as customers the more hardware and software solutions we generate.* The more successful hardware and software 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- attracts more users/developers searching for new content.* Likewise other third-party development platforms join our ecosystem and bring in new developers as our influence
continues to grow.Having successfully applied the B2D2B 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.
12ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Ownership of Securities
Basic information of securities
Share types Ordinary share
Share capital 80492619 (as of Mar 31 2023)
Listing Shanghai Stock Exchange (SSE)
Ticker 688018.SH
Listing Date 2019-07-22
Shareholder Structure as of Mar 31 2023
Shareholder Share Numbers Percentage (%)
Espressif (Hong Kong) Investment Ltd. 33960000 42.19
Dajia Life Insurance Co. Ltd. – Universal Products 2602353 3.23
Shinvest Holding Ltd. 2546100 3.16
ABC - Franklin Templeton Sealand Fund 1784545 2.22
Orient Securities -Zhonggeng Value Pioneer Fund 1406163 1.75
Ningbo Meishan Free Trade Port Le Tun Investment Management
Partnership (Limited Partnership) 1046030 1.30
CITIC Securities Co. Ltd. 781410 0.97
China Resources SZITIC Trust - Broadvision Selection II Fund 711000 0.88
ABC - Franklin Templeton Sealand Fund 705538 0.88
China Resources SZITIC Trust - Broadvision Selection Fund 687000 0.85
Top 10 shareholders 46230139 57.43
Other public shareholders 34262480 42.57
Total of outstanding shares 80492619 100.00
13ESPRESSIIF SYSTEMS || Q1 2023 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.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 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 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 30.8% in the first quarter of 2023.
14ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Financial
Statements (Unaudited)
Consolidated Balance Sheet (Unaudited)
CNY March 31 2023 January 1 2023 December 31 2022
Assets
Current assets:
Cash and cash equivalents 324630351 350677354 350677354
Held for trading financial assets 439230911 461223082 461223082
Notes receivable 2742270 789099 789099
Accounts receivable net 227751114 198406116 198406116
Accounts receivable financing 6460424 1441520 1441520
Prepayments 10240868 9724045 9724045
Other receivables 9735746 9578753 9578753
Including: Interest receivable 1693509 838168 838168
Inventories 385272779 448981896 448981896
Other current assets 197216305 228089444 228089444
Total current assets 1603280767 1708911310 1708911310
Non-current assets:
Debt investment 304474500 212484600 212484600
Investment in other equity assets 35340648 35340648 35340648
Other non-current financial assets 19879347 19879347 19879347
Fixed assets 63236168 60243507 60243507
Construction work in progress
Right-of-use assets 23860940 21692767 21692767
Intangible assets 2217562 2412317 2412317
Long-term deferred expenses 7826380 6565887 6565887
Deferred income tax assets 29334823 18987186 15266444
Total assets 2089451135 2086517567 2082796825
00
15ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheet (Unaudited)
CNY March 31 2022 January 1 2023 December 31 2022
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable 81544639 77918867 77918867
Contract liabilities 11623624 9044287 9044287
Payroll payable 33662927 85041335 85041335
Taxes payable 12700000 5211995 5211995
Other payable 9534556 2925552 2925552
Non-current liabilities due within one year 11645314 9607030 9607030
Other current liabilities 930084 778437 778437
Total current liabilities 161641144 190527502 190527502
Non-current liabilities:
Lease liabilities 13320777 12839126 12839126
Provisions 603625
Deferred income tax liabilities 58036882 56473404 52752662
Total liabilities 233602428 259840032 256119290
Owners’ equity (or shareholders' equity):
Share capital 80492619 80484430 80484430
Capital reserves 1313157066 1309813001 1309813001
Less: Treasury stock 40966012 40966012 40966012
Other comprehensive income 11677862 16946374 16946374
Surplus reserves 46570910 46570910 46570910
Retained earnings 444916262 413828832 413828832
Total shareholders’ equity 1855848707 1826677535 1826677535
Total liabilities and shareholders' equity 2089451135 2086517567 2082796825
N.B.：?
Starting from 2023 the company will implement the "Accounting Treatment for Deferred Income Tax Related to Asset and Liability Arising from a Single Transaction
That Does Not Qualify for Initial Recognition Exemption" as stipulated in Interpretation No. 16 of the Enterprise Accounting Standards issued by the Ministry of
Finance. The company will adjust the application of this standard to single transactions that occurred between the beginning of the earliest period reported in the
financial statements and the date of the first implementation of this standard. This includes adjusting the lease liabilities right-of-use assets estimated liabilities
related to disposal obligations and corresponding related assets that were recognized due to the application of this standard on the initial period reported in the
financial statements when the standard was first implemented. If there are temporary differences that result in taxable or deductible amounts related to the above-
mentioned adjustments the cumulative impact on retained earnings and other relevant financial statement items at the beginning of the reporting period will be
adjusted according to the provisions of this standard and Enterprise Accounting Standard No. 18 - Income Taxes. So the amount of deferred income tax assets of
January 1 2023 exceeds the amount of December 31 2022 disclosed in the 2022 annual report by CNY 3720742. The amount of deferred income tax liabilities is
also the same.
16ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Income Statement (Unaudited)
Three Months Ended
CNY March 31 2023 March 31 2022
Revenue 318117442 288948065
Cost of Revenue 188599396 170358125
Gross Profit 129518046 118589940
Taxes and surcharges 1786501 518433
Selling expenses 12172902 9194881
General and administrative expenses 13915033 13404541
Research and development expenses 85483014 74848290
Financial expenses -3649089 568027
Including: Interest expenses 264117 212682
Interest income 2014022 696647
Add: Other income 389875 252748
Investment income (mark"-" for loss) 6258547 3180588
Income from changes in fair value (mark"-" for loss) 7829 3076241
Credit impairment losses (mark"-" for loss)
Assets impairment losses (mark"-" for loss) -938171 -412271
Assets disposal income (mark"-" for loss) 4739
Operating Income 25532504 26153075
Add: Non-operating revenue
Less: Non-operating expenses 2465
Income before income taxes 25530039 26153075
Provision (benefit) for income taxes -5557391 -1699018
Net Income 31087430 27852092
Earnings per share
Basic 0.3884 0.3475
Diluted 0.3884 0.3475
Three Months Ended
CNY March 31 2023 March 31 2022
Net Income 31087430 27852092
Other comprehensive income (loss) after tax
Changes to the fair value of investment in other
-5500
equity instruments
Currency translation reserves -5268512 -1639720
Other comprehensive income (loss) -5268512 -1645220
Comprehensive income 25818918 26206872
17ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Cash Flow Statement (Unaudited)
Three Months Ended
CNY March 31 2023 March 31 2022
Operating Activities
Cash from sales of merchandise and provision of
316945873392796778
services
Tax refund 22390791 27316374
Other received cash related to operational activities 6144834 9288587
Subtotal of cash inflow from operational activities 345481498 429401738
Cash paid for merchandise and services 145033851 336017954
Cash paid to and for employees 134472294 107719618
Cash paid for taxes and surcharges 13455282 6938817
Other paid cash related to operational activities 19226628 15595855
Subtotal of cash outflow from operational activities 312188056 466272244
Net cash provided by operating activities 33293443 -36870506
Investing activities
Cash arising from the disposal of investments 817734181 833768443
Cash arising from investment income 1754367 1427583
Net cash arising from the disposal of fixed assets intangible assets and other long-term 17850
assets
Other received cash relating to investment activities 311000
Subtotal of cash inflow from investment activities 819817397 835196026
Cash paid for the purchase and construction of fixed assets intangible assets and other 14725260 12606551
long-term assets
Cash paid for investments 863000000 755100000
Other paid cash relating to investment activities 300000
Subtotal of cash outflow from investment activities 878025260 767706551
Net cash used by investment activities -58207863 67489475
Financing activities
Cash arising from the issuance of common stock 727886 20316335
Including: Cash arising from subsidiaries absorbing investments by minority
shareholders
Subtotal of cash inflow from financing activities 727886 20316335
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 3331678 1236611
Subtotal of cash outflow from financing activities 3331678 1236611
Net cash used for financing activities -2603791 19079723
Impact of fluctuation in exchange rates on cash and cash equivalents 1471208 -2226953
Net increase in cash and cash equivalents -26047003 47471739
Add: Cash and cash equivalent at the commencement
350677354367142726
of the period
Cash and cash equivalents at the end of the period 324630351 414614465
18ESPRESSIF SYSTEMS | Q1 2023 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 28 April 2023
Espressif Systems
Board of Directors Board of Supervisors
Teo Swee Ann Lv Zhihua
Founder and Chairman Employee-elected
Ng Pei Chi Fu Hanyu
Information Technology Officer Shareholder-elected
Wang Yiwen
Teo Teck Leong Shareholder-elected
Shareholder-elected
Xu Xin Executive Management
Shareholder-elected
Teo Swee Ann
Lan Yuzhe Founder and CEO
Independent Director
Wang Jue
Koh Chuan Koon Deputy General Manager
Independent Director
Shao Jingbo SPRESSIF
Lee Sze Chin EFinancial Director
Independent 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 differ from what is discussed in this report.
19ESPRESSIF SYSTEMS | Q1 2023 REPORT | FURTHER INFORMATION
List of abbreviations
AI Artificial Intelligence
AIoT Artificial Intelligence and Internet of Things
Bluetooth LE Bluetooth Low Energy
CEO Chief Executive Officer
EBITDA Earnings Before Interest Taxes Depreciation and Amortization
Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO. LTD.GM Gross Margin
IC Integrated Circuit
IoT Internet of Things
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
TSR Techno Systems Research
20Investor Relations
ir@espressif.com
Official Platforms Social Media
www.espressif.com twitter.com/EspressifSystem
blog.espressif.com facebook.com/espressif
github.com/espressif linkedin.com/company/espressif-systems
esp32.com youtube.com/EspressifSystems
esp8266.com instagram.com/espressif_systems_official
bbs.espressif.com bilibili.espressif.com
Copyright ? 2023 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 written in both Chinese and English. In case of any
discrepancies between Chinese and foreign interpretations the Chinese version shall prevail.Copyright (c) 2011-2012 Julieta Ulanovsky (julieta.ulanovsky@gmail.com) with Reserved Font Names ‘Montserrat’. This Font
Software is licensed under the SIL Open Font License Version 1.1. This license is available with a FAQ at: http://scripts.sil.org/OFL
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.