“Science and Technology Innovation Board Daily”, Feb. 19 (Reporter Guo Hui) Consumer electronics chip company Juxin Technology released its 2023 annual performance report after the market today (February 19). Due to the recovery in market demand and the continued introduction of product lines, the company's annual performance rebounded year on year.

According to the announcement, according to preliminary accounting by Juxin Technology, the company achieved revenue of 520 million yuan in 2023, an increase of 25.41% year on year; net profit to mother was 65.586 million yuan, an increase of 21.04% year on year; net profit after deducting non-return to mother reached 51.1264 million yuan, an increase of 64.16% year on year. (This data has not been audited by an accounting firm)

Regarding the reasons for the increase in performance, Juxin Technology said that during the reporting period, the company actively promoted scenario-based product layout and development, and achieved continuous breakthroughs and rapid rise in market performance in various product lines. Coupled with the gradual recovery in market demand in the consumer electronics industry, the company's overall performance rose steadily.

Specifically, Juxin Technology said that the penetration rate of leading brands in the Bluetooth speaker market continues to increase, and revenue from the Bluetooth speaker series is growing rapidly. At the same time, the company said that by grasping market demand and the direction of technological evolution, it is actively developing diversified products to achieve continuous release of various new products, promote breakthroughs in the low-latency wireless audio market segment, and have performed well in the smartwatch market, and sales revenue of new products has increased dramatically.

Juxin Technology revealed that its product structure was continuously optimized. In 2023, the company's unit sales cost decreased, and the share of sales of high-margin products increased, thereby increasing the overall gross margin to 43.73%, an increase of 4.40 percentage points over the previous year.

Looking at a single quarter, Juxin Technology achieved a month-on-month increase in net profit to mother for three consecutive quarters from Q1 to Q3 of 2023. According to an agency survey in early January this year, the third and fourth quarters usually prepare goods for the second half of the year. (Sales) performed better than the first and second quarters. Currently, we can see a better year-on-year recovery in the fourth quarter of 2023.

Regarding market expectations for the first quarter of this year, Juxin Technology said that since entering 2024, there has been a certain recovery in the overall case development progress of downstream customers, and it will strive to achieve steady year-on-year growth in revenue scale throughout 2024. “The first quarter is a traditional low season for the electronics industry. Currently, the company's shipping situation is good. The company will maintain close communication with downstream customers, continue to monitor market conditions, and strive to achieve better sales revenue compared to the same period last year.”

The “Science and Technology Innovation Board Daily” reporter noticed that in addition to the rapid growth in Bluetooth speaker chip revenue, Juxin Technology's business highlights in the past year, the company's smartwatch chip sales have also increased dramatically, and the market prospects are promising.

Juxin Technology said in the latest research notes that the company's second-generation smartwatch chips use next-generation low-power technology and have new features such as dual GPU acceleration, JPEG hardware decoding, video dials, and dual-mic call noise reduction. Currently, terminal products are shipped in overseas markets. Customers are satisfied with the overall performance of the second-generation smartwatch chip, such as 2.5D GPU interface effects and low power consumption technology, and the market feedback is good. Next, domestic and foreign customer terminal products will be launched in batches.

According to a research report released by Pioneer Securities analyst He Lizhong's team in the fourth quarter of last year, in 2023, Juxin Technology and Xiaomi products have already been launched, and the market performance is impressive, and brand manufacturer projects are expected to continue to be implemented. In addition, according to Bank of China Securities analyst Su Lingyao's research report, Juxin's smartwatch chips are also expected to use Indian brands to achieve rapid growth. It is expected that as the local Indian brand Fire-Bolt continues to replace brands such as Apple and Samsung, Juxin Technology is expected to achieve rapid growth through shipments to the Indian brand Fire-Bolt.

Juxin Technology will also lay out AI chips. In a survey in January of this year, the company said it will launch the ATS286X, a high-end AI audio chip upgraded to a CPU+DSP+NPU three-core heterogeneous, and is expected to provide sample chips to downstream customers in the middle of this year. Market analysis predicts that the company's end-side AI chip will be used in voice interaction fields such as Bluetooth voice remote controls, voice mice, translation sticks, and smart voice recorders.

Juxin Technology said that in the future, the company will focus on two technology paths in AI computing: one is NPU based on integrated storage and computation; the other is power consumption and performance optimization based on the sparseness of AI model matrices to improve the energy consumption ratio of products and create richer AI computing power to meet the power consumption requirements of portable or wearable products.

In the two trading days around the Lunar New Year, the cumulative increase in Juxin Technology's stock price was 20.67%. Today (February 19), the closing price was 24.98 yuan/share. Currently, the total market value of the company is 3.05 billion yuan.