“Science and Technology Innovation Board Daily”, May 16 (Reporter Guo Hui) “Due to macroeconomic fluctuations, the overall demand pace of downstream customers has slowed down, and the scale of the company's access network business has declined.” Tan Yaolong, chairman and general manager of Chuangyao Technology, said this in response to investors' questions at the company's performance meeting today.

According to information, in 2023, Chuangyao Technology achieved revenue of 661 million yuan, a year-on-year decrease of 29.05%; net profit to mother was 584.392 million yuan, a year-on-year decrease of 35.80%. In the first quarter of this year, the company's performance has not completely escaped the influence of the industry. Revenue reached 123 million yuan, a year-on-year decrease of 13.55%, while net profit to mother was basically the same as the same period last year.

However, according to Tam Yiu-lung's disclosure at the results conference, the promotion of Starlight terminal products driven by leading companies has accelerated since the first quarter of 2024. The company-related products such as wireless mice, keyboards, and microphones equipped with the company's StarFlash chips and solutions are also expected to be launched on the market in the second half of 2024.

In response to a question from the “Science and Technology Innovation Board Daily” reporter, Tan Yaolong said that currently there are many customer manufacturers that intend to get in touch with the company regarding Starlight Technology, and many terminal manufacturers have high interest and expectations for the new short-range wireless protocol.

Chuangyao Technology has previously actively invested in the research and development of chips and solutions based on Starlight wireless short range communication technology. In mid-2023, the company's first short-range wireless Starflash chip was verified. End customers include automakers, Tier 1 manufacturers, and consumer electronics manufacturers.

Tan Yaolong said that in the second half of 2024, after the first batch of terminal products equipped with the company's Starflash chips and solutions is launched on the market, market acceptance and terminal customers' commercial promotion plans will affect the final revenue of the company's related products. “StarFlash chips and products are multi-mode compatible with Bluetooth and WiFi, enabling a smooth transition, which will dispel customer concerns about not being compatible with other short-range technologies. At the same time, Starlight Ecosystem will also be compatible with more software ecosystems, such as the Hongmeng Ecosystem. Through this kind of software and hardware collaboration, the competitiveness of products can be enhanced, and users can truly have a better actual implementation experience.”

Tan Yaolong said that in the future, the company will fully cooperate with Starlight's overall market strategy, continue to expand new customer types and customer channels, and continue to improve product solutions in the process of continuous iteration of Starflash technology, hoping to turn Starflash chips and supporting solutions into the company's new revenue growth engine.

According to information, by the end of March 2024, the number of StarFlash Alliance member units reached 935, including 28 foreign companies, covering the entire upstream and downstream industries. According to Wu Hequan, director of the expert committee of the International Starlight Alliance and an academician of the Chinese Academy of Engineering, at this year's International Starlight Alliance Industry Summit, Starlight technology has huge market potential in the field of industry and consumers. The Starlight standard will redefine a new generation of short-range wireless communication systems, and has broad application scenarios in the “man-car-home-garden” scenario.

It is worth noting that the State Grid's market tenders for smart meters have increased markedly this year. With the full rollout of dual-mode standards, advance layout was carried out based on the development trend of smart grid transformation technology. In this market last year, Chuangyao Technology indicated that its market share of HPLC+HRF high-speed dual-mode products had increased.

In response to a question from the “Science and Technology Innovation Board Daily”, Tan Yaolong said that the State Grid will increase the number and amount of electricity meter tenders by 2024, and it is expected that the number and amount of electricity meter tenders will increase significantly throughout 2024. “Each smart meter contains a communication module corresponding to a communication chip, which definitely has a positive impact on the sales of the company's power line carrier communication chip products. Chuangyao Technology mainly supports State Grid chip manufacturers to participate in the State Grid bidding through IP licensing and mass production services.”

Furthermore, China's smart meter exports are also an emerging market direction that has emerged in recent years, and regions including Southeast Asia, Latin America, and Africa will contribute significantly to an increase in demand in recent years. According to data from the General Administration of Customs, the scale of domestic electricity meter exports has continued to increase in recent years. The export value increased from 3.8 billion in 2015 to 10.3 billion yuan in 2023, with a CAGR of 13%. Exports to Europe, Asia, and Africa in 2023 were 3.6 billion, 3.3 billion, and 2.4 billion, respectively.

Tan Yaolong said that the company mainly provides product technical support to customers and does not directly export chips and modules overseas. “The company's power communication carrier has an existing smart meter export business, but at present, it has penetrated Chuangyao's revenue level, and its share is still not very large; our main source of revenue and profit is still domestic.”

In 2023, due to the decline in overall demand in the terminal market, Chuangyao Technology's access network chip sales declined. The company's performance conference stated that the overall recovery cycle will be affected by the recovery of the terminal market and the inventory cycle of the company's major customers. It is expected that it is currently impossible to make an accurate estimate. Please refer to the company's regular and temporary announcements.

However, Tan Yaolong also said that the company's access network business is also achieving export sales to overseas through domestic customers, and hopes to achieve enhanced growth through overseas sales.