On the evening of November 9, SHLX Technology Group, China`s leading Wi-Fi MCU and Bluetooth chip technology company, issued an announcement stating that the company intends to issue stocks to specific targets through a simple procedure, and the total amount of funds raised will not exceed 250 million yuan. The number of issued shares shall not exceed 1.6 million shares (including the number of shares), and shall not exceed 2% of the company`s total share capital before the issuance.
Regarding the investment direction of the raised funds, after deducting the issuance costs, all investments will be made in the "Wi-Fi 6 FEM R&D and Industrialization Project". The announcement discloses that the project will further develop Wi-Fi 6 front-end module products (Wi-Fi 6 FEM) integrating radio frequency switches, low noise amplifiers, filters and power amplifiers on the basis of existing research and development, which will be mainly used in applications Wi-Fi6 technology smart home market, mobile phone RF front-end market and router market.
SHLX stated in the announcement that it hopes to grasp the golden age of Wi-Fi 6 technology research and development, and on the basis of the company's existing product line and technical reserves, increase investment in Wi-Fi 6 FEM research and development, and cooperate with the company's Wi-Fi 6 chip The research and development of the company has enriched the company’s Wi-Fi chip product categories, formed an effective technical product portfolio, and improved the company’s Wi-Fi chip performance and core technical indicators.
With the development of the Internet of Things and 5G technologies, the market for Wi-Fi and RF front-end chips is promising. According to TSR forecasts, in the Wi-Fi6 application market in 2023, there will be nearly 800 million smart phones and 240 million AP/routers/gateways equipped with Wi-Fi6 in the world. With the increase in the number of single RF front-end devices, the global mobile phone market RF front-end market scale has grown steadily. According to China's industrial development research data, by 2025, the global IoT device base is expected to reach 75.4 billion units.
From the perspective of the industry development pattern, foreign manufacturers have matured their technologies in the RF front-end field and have built technical barriers. The global RF front-end market is mainly used by Broadcom, Skyworks, Qorvo and Murata. ) And other US and Japanese manufacturers monopolize, occupying more than 80% of the global RF front-end market. At the same time, international leading companies have a complete product line through a series of industrial integration, and have strong research and development capabilities in high-end products. Most of the companies operate in IDM mode, with the entire industry chain capabilities of design, manufacturing, and packaging and testing, and comprehensive strength Strong.
However, due to a late start and a weak foundation, Chinese technology companies are mainly concentrated in the field of fabless design. Compared with international leading companies, they still lag significantly behind in terms of technology accumulation, industrial environment, talent training, and innovation capabilities. There is still a big gap between Japanese and European manufacturers. Combining the characteristics of the chip design industry, only by continuously investing in new technologies and new products, and building an industrial chain with independent development capabilities and core competitiveness, can the distance with international leading companies be gradually reduced.
Therefore, in terms of technological innovation, SHLX has continuously strengthened its technological innovation capabilities by continuously increasing R&D investment and introducing advanced talents in the industry, and has successively released three innovative chips.
As of September 30, 2020, SHLX has invested 119 million yuan in R&D in the first three quarters, an increase of 52.37% over the same period last year. There are 327 R&D personnel, accounting for 75% of the company's total number. SHLX has obtained a total of 84 authorized patents and software copyrights, including 37 invention patents, 25 utility model patents, 1 design patent, and 5 US patents. In addition, the company has registered 16 software copyrights and is pending There are 77 patents and software copyrights, and 34 PCT patents.
In addition, according to the third quarter report, SHLX achieved revenue of 553 million yuan in the first three quarters of 2020, a year-on-year increase of 5.03%, and realized a net profit of 81 million yuan attributable to the parent, a year-on-year decline of 15.43%. Among them, Espressif Systems achieved revenue in the single quarter of Q3. 260 million yuan, a year-on-year increase of 27.82%, realized a net profit of 46 million yuan attributable to the parent, a year-on-year increase of 44.37%.
As a leader in the Wi-Fi MCU industry, Espressif Systems has a global market share. In the second half of the year, as the peak season for consumer electronics, with the influence of shopping festivals such as "Double Eleven" and "Black Friday" at home and abroad, SHLX is expected to usher in high growth in the fourth quarter and maintain a good level of annual performance.