On April 15, Amlogic (Shanghai) Co.Ltd(688099) ( Amlogic (Shanghai) Co.Ltd(688099) , SH) disclosed the annual report of 2021. In 2021, the company achieved a revenue of 4.778 billion yuan, a year-on-year increase of 74.46%; The net profit attributable to shareholders of listed companies was 812 million yuan, a year-on-year increase of 606.76%.
Amlogic (Shanghai) Co.Ltd(688099) main business is the research and development, design and sales of SOC chips and wireless connection chips of multimedia intelligent terminals. Chip products have been widely used in fields including intelligent set-top box, intelligent TV, intelligent projector and so on.
For the substantial growth of performance scale and profitability, Amlogic (Shanghai) Co.Ltd(688099) said that it was mainly due to the technical and product advantages formed by the company’s continuous R & D investment, the continuous strong demand of the consumer electronics industry and the results of the company’s strategic layout for many years.
However, Amlogic (Shanghai) Co.Ltd(688099) also suggests that the market where the company’s main business is located has experienced a period of rapid growth, which has promoted the demand of downstream customers for corresponding chips. However, if the strength and duration of global policy promotion in the future are less than expected, downstream customers reduce the procurement scale or choose other chip suppliers, or market competitors sharply reduce the sales price, resulting in increased competition, it may have a certain impact on the operation and profitability of these businesses of the company.
multimedia intelligent terminal chip shipment growth
According to the annual report, Amlogic (Shanghai) Co.Ltd(688099) s series chips, AI series chips and T series chips are the main sources of income. Among them, s series chips mainly include full HD series chips and Ultra HD series chips, which have been widely used in IPTV Set-top box, Ott set-top box, mixed mode set-top box and some aiot fields. In short, s series chips are mainly set-top box chips.
Amlogic (Shanghai) Co.Ltd(688099) said that this kind of products have rich types and cover high, medium and low markets according to the needs of different customers, different markets and different application terminals. S series SOC chip scheme is widely used by many well-known manufacturers at home and abroad, such as Zte Corporation(000063) , Skyworth, Xiaomi, Alibaba, Google, Amazon and so on.
AI series chips mainly include intelligent video series chips and intelligent audio series chips. Related products have been widely used in smart home, smart office, smart fitness, smart home appliances, UAV, smart business, smart terminal analysis box and other fields. At present, AI series chips have been applied to terminal products by Xiaomi, TCL, Alibaba, Jifei, iqiyi, Google, Amazon, SONOS, JBL and other enterprises.
T series chip is the core and key component of intelligent display terminal, which is widely used in smart TV, smart projector, smart business display and other fields.
In a word, set-top box chips, intelligent video chips, intelligent audio chips and intelligent display terminal chips support Amlogic (Shanghai) Co.Ltd(688099) ‘s revenue. These chips belong to the field of consumer electronics.
Amlogic (Shanghai) Co.Ltd(688099) said that in 2021, the demand of the consumer electronics industry continued to grow. The company actively grasped the market opportunities, strengthened market development and further expanded global market opportunities. The shipment of multimedia intelligent terminal chips increased rapidly, which further consolidated and improved the company’s market position. According to the annual report, the operating revenue of the company’s multimedia intelligent terminal chip was 4.739 billion yuan, an increase of 73.44% over the same period of the previous year, and the gross profit margin was 40.07%, an increase of 7.12 percentage points over the previous year.
R & D expenses increased by more than 50% year-on-year
Amlogic (Shanghai) Co.Ltd(688099) is a chip design company, which belongs to a technology intensive industry. The R & D level and the core technology mastered by the company directly affect the competitiveness.
With the continuous growth of market demand, chip design enterprises are increasingly competing for high-end talents Amlogic (Shanghai) Co.Ltd(688099) believes that if the company cannot continuously strengthen the introduction, incentive and protection of core technical personnel, there will be a risk of loss of core technical personnel and technical confidentiality, and the company’s continuous R & D ability will also be adversely affected.
The technical and product advantages formed by continuous R & D investment are one of the reasons for the sharp rise of Amlogic (Shanghai) Co.Ltd(688099) performance. While both revenue and profit have increased significantly, listed companies are also significantly increasing R & D investment.
Amlogic (Shanghai) Co.Ltd(688099) said that the company has implemented a new equity incentive plan to attract and retain outstanding talents, further expand the R & D team, set up a new R & D center, continue to increase R & D investment and enhance R & D strength. In 2021, the company incurred 904 million yuan of R & D expenses, an increase of 56.45% over the same period of last year.
In terms of technology, the Amlogic (Shanghai) Co.Ltd(688099) three series of chips have been upgraded to 12NM. Its S-Series and T-series chip manufacturing processes have achieved breakthroughs from 28 nm to 12 nm, effectively improving product performance and reducing power consumption. The product process is at the forefront of the industry.
AI series chips adopt the industry-leading 12NM process technology. According to different chip characteristics, they support far-field voice upgrade and RTOS system (real-time operating system), built-in neural network processor, up to 5tops neural network processor, 8 million pixel high dynamic range image input and ultra-high definition coding, ultra-low power millisecond shooting High resolution screen display and rich peripheral interfaces.
