“Science and Technology Innovation Board Daily”, April 10 (Reporter Wu Xuguang) On the evening of April 9, TWS Bluetooth headphone chip manufacturer Zhongke Lanxun released its 2023 annual report.

In 2023, Zhongke Lanxun achieved operating income of 1,447 billion yuan, an increase of 33.98%; net profit attributable to shareholders of listed companies was 252 million yuan, an increase of 78.64% over the previous year.

Regarding changes in performance, the company said that during the reporting period, the macroeconomic situation stabilized in the midst of changes, the consumer electronics industry also gradually picked up, and downstream and terminal demand increased. It continues to promote technological upgrading. The variety of products is becoming richer, the share of high-end products has increased, and product sales volume and comprehensive gross margin have both increased, driving a significant increase in net profit.

Looking at specific revenue by quarter, Zhongke Lanxun achieved revenue of 307 million yuan, 346 million yuan, 397 million yuan, and 397 million yuan for each quarter of 2023; corresponding net profit to mother was 49 million yuan, 63 million yuan, 85 million yuan, and 54 million yuan, respectively.

It is easy to see that in the fourth quarter of 2023, Zhongke Lanxun's net profit declined month-on-month. So, what was the sales situation in the first quarter of 2024?

Staff of Zhongke Lanxun Securities Department told the “Science and Technology Innovation Board Daily” reporter today (April 10) that the first quarter was a traditional low season for the electronics industry, but the company's shipments have been good so far. The company will arrange sales work according to market demand and its own product plans.

Looking ahead to 2024, Zhongke Lanxun said that terminal products such as headsets, speakers, sports watches, etc. equipped with the company's “Xunlong 2+” chips, “Xunlong 3rd generation” chips, and cost-effective watch chips will be launched one after another, which will continue to expand downstream application scenarios and customer scope, and continue to enhance the company's profitability.

During the reporting period, the net cash flow from the operating activities of Zhongke Lanxun was -106 million yuan, a decrease of 329 million yuan compared with the same period last year. This was mainly due to the company's appropriate increase in stocking and a sharp increase in cash payments for products purchased in the current period.

Zhongke Lanxun's main business is the R&D, design and sale of wireless audio SoC chips. The main products include TWS Bluetooth headphone chips, non-TWS Bluetooth headphone chips, Bluetooth speaker chips, etc. The products can be used in TWS Bluetooth headsets, headsets, business single-sided Bluetooth headsets, Bluetooth speakers, and wireless audio terminals such as car Bluetooth speakers.

By product, the company's Bluetooth headphone chip revenue was 863 million yuan, accounting for 59.61%, up 24.10% year on year; Bluetooth speaker chip revenue was 340 million yuan, accounting for 23.51%, up 23.04% year on year; digital audio chip revenue was 93 million yuan, accounting for 6.44%, up 60.00% year on year; smart wearable chip revenue was 58 million yuan, accounting for 3.99%, up 153.29% year on year; other chip revenue was 78 million yuan, accounting for 5.41% year on year, up 207.80% year on year; other business Revenue was $0.15 billion, accounting for 1.02%.

The “Science and Technology Innovation Board Daily” reporter noticed that along with the increase in the sales scale of Zhongke Lanxun, its inventory of Bluetooth headphone chips and Bluetooth speaker chips has also increased one after another.

During the reporting period, the company's inventory of Bluetooth headphone chips was 268.402 million, the inventory of Bluetooth speaker chips was 57.2914 million, the inventory of digital audio chips was 398.503 million, the inventory of smart wearable chips was 227.486 million, and the inventory of other chips was 454.92 million. The corresponding product inventory increased by 84.25%, 32.55%, 96.09%, 384.78% and 146.66% over the previous year.

Zhongke Lanxun said that since 2023, the company's shipments have basically remained at a normal level, and shipments increased quarterly in the first three quarters. Considering that the third and fourth quarters are traditional peak sales seasons, active stocking prep prepares for sales, and optimizes procurement costs by appropriately increasing stocking according to fab capacity and predicting future wafer price trends.

“Currently, the company's shipments are stable and maintain a reasonable level of business circulation. Subsequent inventory conditions need to be judged based on industry policies, market conditions, etc.” Zhongke Lanxun added.