The four main control reports: China Blue News net profit of over 100 million, sink top down 70%

The wearable market picked up in the second quarter, and chip factories accelerated inventory clearance with a bloody price war.

Up to now, the four major master control chip factories of China Klanxun (688332.SH), Actions Core technology (688049.SH), Hengxuan Technology (688608.SH), Huiting technology (603160.SH) have released the first half of 2023 performance report.

Among them, the revenue and net profit of Zhongke Blue News have achieved an increase of more than 20%; The other three chip factories are in a state of increasing revenue and not increasing profits, and Hui Ding Technology even had a loss of 136 million yuan.

Wang Feng (pseudonym), an industry chain expert engaged in the chip industry for 20 years, told the Chaodian think tank that "many chip factories are still concentrated in the first half of the inventory, and the price competition is fierce." There were a lot of new orders in the second quarter, which gave some growth."

Relevant data show that in the second quarter of 2023, TWS shipments reached 68.16 million pairs, compared with the double-digit decline in the previous quarter, this quarter has returned to 8% year-on-year growth.

In addition, according to the tide power think tank, TWS core players Hengxuan, Zhongke Blue news, Torch core and other listed companies have the layout of smart watch product lines, and strategically regard it as an important revenue growth point. But cross-border is not easy, Hui Ding technology announced the closure of the TWS project in July this year.

Zhongke Blue 01 revenue of 653 million yuan, net profit of 112 million yuan

China Blue News released the 2023 semi-annual report on August 25. The announcement shows that China Blue News achieved revenue of 653 million yuan, an increase of 20.51%; Net profit was 112 million yuan, up 20.38% year-on-year.

From its establishment in 2016 to landing on the science and Technology Innovation board on July 15 last year, it took less than six years for China Blue News. As one of the leading integrated circuit design enterprises in China, China Blue is one of the earliest chip design enterprises in the industry to adopt RISC-V instruction set architecture as the technology development route, and later to research and development, design and sales of wireless audio Soc chips as the main business.

At present, the company has laid out eight product lines of Bluetooth headset chip, Bluetooth speaker chip, smart wearable chip, digital audio chip, wireless microphone chip, toy voice chip, IoT chip and voice recognition chip, self-developed wireless Bluetooth audio single PIN crystal oscillator technology, wireless microphone low latency technology, dual-core RISC-V architecture.

During the reporting period, the company's Bluetooth headset chip revenue accounted for 61.56%, Bluetooth speaker chip revenue accounted for 23.14%, digital audio chip and smart wear chip revenue accounted for 5.96% and 4.37%, respectively.

Actions Technology 02 had revenue of 219 million yuan and net profit of 24.7 million yuan

Actions Core Technology released the 2023 interim report on August 23, showing that Actions Core Technology achieved revenue of 219 million yuan, an increase of 3.23%; Net profit was 24.7 million yuan, down 31.47% year-on-year.

Action Core Technology Co., Ltd. is a technology company listed on the Science and Technology Innovation Board in 2021 to provide professional integrated chips, mainly for wireless audio, smart wear and intelligent interaction and other smart Internet of things fields.

Actions Technology said that in the first half of the year, downstream customer orders increased, and strong demand in the Bluetooth audio segment, resulting in a small increase in revenue. The decline in net profit was due to increased investment in research and development.

According to the semi-annual report, the company's research and development expenses were 74,035,500 yuan, an increase of 26.79%; Research and development investment accounted for 33.76% of revenue, an increase of 6.27 percentage points.

Hengxuan Technology 03 revenue 910 million yuan, net profit 49.25 million yuan

On August 22, Hengxuan Technology released the annual report. During the reporting period, Hengxuan Technology's revenue was 910 million yuan, an increase of 32.4%. Net profit was 49.25 million yuan, down 39.26% year-on-year.

Hengxuan Technology's main business is the research and development, design and sales of intelligent audio and video SoC chips, providing customers with edge intelligent master control platform chips with voice interaction capability in AIoT scenarios, and its products are widely used in smart Bluetooth headphones, WiFi smart speakers, smart watches and other low-power intelligent audio and video terminal products.

According to the information disclosed by Hengxuan Technology, the company's inventory provision of 43.69 million yuan of asset impairment losses during the reporting period, an increase of 38.23 million yuan over the same period last year, in addition, the company is also facing upstream cost increases and chip inventory pressure.

Huiting Technology 04 revenue 2.022 billion yuan, net profit - 136 million yuan

Huiting Technology released its 2023 semi-annual report on August 24, showing that Huiting Technology's revenue was 2.022 billion yuan, an increase of 10.56%; Net profit was -136 million yuan, a decrease of 744.85% year-on-year.

Huidin Technology said that the global demand for consumer electronics products is still relatively weak, the market competition is fierce, the price of products fell, and the comprehensive gross margin fell 4.57 percentage points to 41.4%. The company's asset impairment loss of inventory and development expenses was about 396 million yuan.

In addition, in July this year, Huiding Technology shut down a TWS SoC research and development project initiated in June 2020. This T project is recognized by the market as OPPO's Zheku team project.

In fact, the consumer electronics industry has been in a destocking phase since the end of last year.

At the end of 2022, Huiting Technology's inventory was about 1.795 billion yuan, and the inventory level reached a historic high. After digestion and provision for inventory impairment in the first half of the year, the book value of the inventory dropped from 1.795 billion yuan to 946 million yuan, a decrease of 47.30%.