ÀÖöοƼ¼£ºEspressif Systems2024Q2&Half-Year Report

Q2Half-YearReport

2024

22	Consolidated Balance Sheet
24	Consolidated Income Statement

07	Key Financial Data (Unaudited)
07	Financial Indicators (Unaudited)
08	Financial Analysis

Contents

Build Smartwith Espressif

Core Technologies

BusinessHighlights

ManagementReport

ConsolidatedFinancialStatements

(Unaudited)

FurtherInformation

09	Business Strategy
10	Key Products - AIoT Chips
11	Key Products - Chip Matrix
12	Key Products - M5Stack Development Kits
13	Market
14	Business Model

15	Developer Community Content
17	Research and Development
19	Ownership of Securities
20	Stock-Based Compensation
21	Risks and Uncertainties

25	Consolidated Cash Flow Statement
27	Consolidated Statement of Changes in Equity

28	Terms and Conditions of the Report

CoreCompetitiveness

29	List of abbreviations

BUILD SMART WITH ESPRESSIFESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

As a public, multinational, fabless semiconductorcompany (Espressif Systems, SSE: 688018.SH), wedevelop cutting-edge, low-power wirelesscommunication chipsets. Our AIoT solutions are green,versatile, and cost-effective. We have a closed-loopdevelopment cycle for core technologies, including Wi-Fi & Bluetooth LE & IEEE 802.15.4 protocols, RF, RISC-VMCUs, AI algorithms, operating systems, toolchains,AIoT frameworks, and Cloud services.

Build Smart with Espressif

1 Billion+Global IoT Chip

Shipment195+ Patents

In AIoT Technology

195+ Patents

In AIoT Technology

Global Leader

In Wi-Fi MCU Market

Global Leader

In Wi-Fi MCU Market2 Million+Active EcosystemFollowers andDevelopers

2 Million+Active EcosystemFollowers andDevelopers10,000+

Satis?ed CustomersWorldwide

CORE COMPETITIVENESSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Core Competitiveness

Espressif's business model follows a B2D2B (Business-to-Developer-to-Business) approach, making branddevelopment a crucial component of our company's strategy. Product strength, differentiation, cost-effectivenessand community support all contribute to the power of our brand.

Exceptional IC Design CapabilityProductStrength

ProductStrength

Full-Stack

Full-StackCost-Effectiveness

	Cost-Effectiveness
Community Support

Full-Stack EngineeringCapability

Full-Stack EngineeringCapabilitySuperior Cost-Effectiveand Stable Support

Superior Cost-Effectiveand Stable SupportExtensive Developer CommunitySupport

Extensive Developer CommunitySupport

Brand

Awareness

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Full-Stack Engineering CapabilityEspressif possesses comprehensive engineering development capabilities that span from IP development tocomplete chip design, operating systems, ?rmware, software frameworks, application solutions, hardware design,edge AI, cloud, and apps. This full-stack engineering expertise allows Espressif to offer highly integrated solutionsthat meet a wide range of customer needs. The ability to control and optimize every layer of the technology stack isunique in the industry and enables Espressif to deliver superior products and services that are seamlessly integratedand highly ef?cient.

Brand AwarenessThe ESP32 and Espressif brands have a strong sense ofrecognition among users. This recognition has become a keyfactor in our competitive advantage and success. Users identifywith the ESP32 brand due to its reliability, performance, andversatility, which have been proven across various applicationsand industries. This strong brand power not only fosters customerretention but also attracts new users, thereby solidifyingEspressif's position in the market.

Exceptional IC Design CapabilityEspressif independently designs and develops its own chipproducts, with core IPs being self-developed. These chips areequipped with rich features, ensuring that Espressif¡¯s productsstand out in the market and avoid the pitfalls of homogenizedcompetition. By controlling the entire design process, Espressifcan innovate rapidly and introduce unique functionalities that setour products apart from competitors, providing a distinctive edgein the IoT semiconductor industry.

2019-07

2019-07

2024-07

ESP32 Google Trends

Espressif Google Trends

2019-07

2019-07

2024-07

Superior Cost-Effective and Stable SupportEspressif's products are known for their high performance and low cost, making them competitive in the market. Weprovide the cost ef?ciency necessary to promote large-scale commercialization in downstream industries.Additionally, we ensure the long-term availability of our products and offer stable and enduring software support,ensuring that customers can rely on their investments for extended periods. This commitment to value and reliabilitystrengthens customer trust.

Extensive Developer Community Support

Espressif has garnered support from a vast community of professional engineers who are familiar with Espressif'sdevelopment platform and actively promote its value proposition. This large and engaged community not only aids inthe rapid adoption and dissemination of Espressif¡¯s technologies but also contributes to continuous improvementthrough feedback and shared knowledge. The robust community support ampli?es Espressif's market presence andenhances our reputation as a trusted and innovative leader in the industry.

FACTS ABOUT ESPRESSIFESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Core TechnologiesTEXT

TEXT

CORE TECHNOLOGIESESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

ESP8266, ESP32, ESP32-S, ESP32-C, ESP32-H and ESP32-P Series

Espressif offers integrated, reliable, and energy-ef?cient SoCs with robust image and voice dataprocessing capabilities for Wi-Fi, Bluetooth LowEnergy, Thread and Zigbee, catering to varioussegments of the IoT market.

Cloud

ESP RainMaker

A comprehensive, development-free andmaintenance-free AIoT solution for privateCloud deployment.It is an all-inclusive solution that coverseverything from the underlying chip to device?rmware, third-party voice-assistantintegrations, mobile apps and the dashboard.Customers can build their own AIoT devicesand ecosystem, with ESP RainMaker.

SoCs

AI

Software

MatterOne-stop Matter SolutionThis is the culmination ofEspressif¡¯s ongoing contribution tothe Matter platform in variousareas, including protocolformulation, core stackimplementation and certi?cationtest events.

OSESP-IDF

Espressif¡¯s of?cial IoT Development Framework.It provides a self-suf?cient SDK for any genericapplication-development on these platforms,using programming languages such as C andC++.ESP-IDF currently powers millions of devices inthe ?eld, and enables building a variety ofnetwork-connected products, ranging fromsimple light bulbs and toys to major appliancesand industrial devices.

With our open-source software,such as Espressif's IoTDevelopment Framework ESP-IDF,Audio Development FrameworkESP-ADF, Mesh DevelopmentFramework ESP-Mesh-Lite, CloudConnectivity Platform ESPRainMaker, Facial RecognitionDevelopment Framework ESP-WHO, and Voice-ControlledAssistant ESP-Skainet, we havedeveloped a framework forbuilding AIoT applications, whichis both complete and innovative.

3A Audio Algorithmsincluding Acoustic Echo Cancelation (AEC),Audio Noise Suppression (ANS) and AutomaticGain Control (AGC), which signi?cantly reducenoise and echo in calls, keeping high-qualityvoice intercoms stable at all times.

AFE (Audio Front-End) Algorithms

quali?ed as a!¡°Software Audio Front-EndSolution¡± for Amazon Alexa Built-in devices.

BUSINESS HIGHLIGHTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Key Financial Data (Unaudited)

Business Highlights

Three Months Ended				Six Months Ended
Jun 30, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023

Gross margin

Gross margin	44.11%		40.97%		43.20%		40.85%
R&D-to-sales ratio	21.54%		26.57%		23.76%		26.71%
EBITDA margin	19.08%		9.74%		17.78%		10.26%
Net income margin	18.54%		9.60%		16.60%		9.68%
Weighted ROE					7.91%		3.43%

Financial Indicators (Unaudited)

		Three Months Ended				Six Months Ended
CNY		Jun 30, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
Consolidated Statement of Income Data
Revenue		533,020,855		348,880,535		920,212,266		666,997,977
Gross pro?t		235,129,242		142,936,609		397,496,784		272,454,655
Selling expenses		16,063,290		13,351,348		28,915,851		25,524,250
General and administrative expenses		17,125,846		15,031,928		31,997,654		28,946,961
Research and development expenses		114,836,190		92,701,560		218,682,370		178,184,574
Net income		98,797,587		33,482,914		152,713,070		64,570,344
Net income attributable to Espressif		97,726,982		33,482,914		151,642,464		64,570,344

Earnings per share:

Earnings per share:
Basic			1.8116		0.8059
Diluted			1.8116		0.8059

Jun 30, 2024

		Jun 30, 2024		Dec 31, 2023
Consolidated Balance Sheet Data
Working capital		1,101,575,410		999,068,356
Total assets		2,321,889,830		2,203,800,366
Long-term obligations		95,899,888		74,166,946
Total shareholders¡¯ equity		1,962,656,198		1,913,000,228

Three Months Ended

	Three Months Ended				Six Months Ended
	Jun 30, 2024		Jun 30, 2023		Jun 30, 2024		Jun 30, 2023
Consolidated Cash Flow Data
Net cash provided by operating activities	-13,668,172		66,406,199		-25,676,834		99,699,642

Non-GAAP Adjustment

Non-GAAP Adjustment
Stock-based compensation	8,929,762		9,643,201		15,331,190		12,267,568
Non-GAAP net income	107,727,349		43,126,115		168,044,259		76,837,912

Overall GM		Chip GM		Module & DevKits GM		EBITDA Margin		SG&A as % of sales		R&D as % of sales

23.8%

23.8%

6.6%

6.6%

17.8%

17.8%

38.9%

38.9%

49.0%

49.0%

43.2%

43.2%

26.7%

26.7%

8.2%

8.2%

10.3%

10.3%

37.5%

37.5%

47.5%

47.5%

40.8%

H1 2023H1 2024

BUSINESS HIGHLIGHTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Financial AnalysisEspressif¡¯s total revenue in the ?rst half of 2024 was CNY 920.2 million, marking an increase of 38.0% from CNY

667.0 million in the ?rst half of 2023, due to the expansion of product categories and new customer design-win. The

net income attributable to Espressif was CNY 151.6 million, which marked an increase of 134.8% year-on-year, mainlydue to the increase of revenue.The overall gross margin was 43.2%, in which the gross margin for AIoT chips was 49.0%. Bene?ting from the lowmaterial prices and the higher initial gross margin from new customers, the gross margin of both chips and modules& DevKits improves. Downstream module manufacturers are expanding their customer base, with more projectsstarting to use Espressif chips. As a key player in the supply chain, module manufacturers purchase chips directlyfrom Espressif. Their business growth has driven an increase in chip revenue. Additionally, the increased use ofchips in small devices leads to a higher proportion of chip sales, ultimately resulting in an overall increase in thegross margin. We established a mid-term target of 40% for our overall gross margin to facilitate funding for our futureR&D expenses.

Revenue by AreaRevenue bySales Mode

Top-5 CustomerConcentration Rate

Revenue by Product Category

Key Financial Indicators

40.8%

74.2%

74.2%

China'sMainland

Rest ofthe World

China'sMainland

Rest ofthe WorldH1 2024

H1 2024H1 2023

H1 2023		65.6%

57.8%

57.8%

33.2%

33.2%

41.4%

ChipModule & DevKitsOthers

1.2%

0.8%

41.4%

2020

2020

2021

2022

2023

H1 2024

25.0%

25.0%

28.1%

28.1%

26.4%

26.4%

29.0%

29.0%

42.2%

42.2%

72.4%

72.4%

DirectIndirect

Espressif Systems¡¯ business strategy emanates from our service/product areas and our engagement with thedeveloper ecosystem.Our product and service areas include hardwares, OS-level development environments, software tools, applicationsolutions, and value-added services, such as Cloud and Matter. The above-mentioned products ensure that we arein the heart of numerous commercial AIoT applications in different markets, including smart home, consumerelectronics, industrial automation, healthcare, etc.

ESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Business StrategyManagement Report

Products

Solutions

Value-added services

SoCs

SoCsModules

ModulesDevKits

DevKitsHMI Smart

Displays

HMI Smart Displays

Audio Solutions

FaceRecognition

Face Recognition			Low-Power Solutions
	¡­

Cloudservice

CloudserviceMatterSolution

MatterSolution

OS-level development environments & software tools

OS-level development environments & software toolsCustomers

Customers

Brands

Module manufacturer

OEM/ODMs

Brands

Solution providers

Makers

¡­

MANAGEMENT REPORT

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |Key Products - AIoT ChipsEspressif is recognized as a market leader in the ?eld of Wi-Fi MCUs. We released our ?rst Wi-Fi MCU in 2014, andour ?rst Wi-Fi/Bluetooth LE combo chip in 2016. In 2020, we successfully developed our own RISC-V MCU core,adding it to our product portfolio, while in 2021, we released our ?rst Thread/Zigbee/Bluetooth LE 5 combo chip anda 2.4GHz Wi-Fi 6 chip. In 2022, we released our ?rst 2.4 & 5GHz Wi-Fi 6 chip. In 2023, we revealed ESP32-P4, adual-core RISC-V MCU, expanding the current portfolio to address the high-performance computation needs of IO-Rich, HMI, and AIoT applications. In 2024, we announced ESP32-H4, a low-power SoC with 802.15.4 & Bluetooth 5.4(LE), which caters to increasing demands for low-power wireless devices, boasting signi?cant upgrades in powerconsumption, connectivity features, and memory expansion capabilities.ªÍIn fact, we have been constantly diversifying our product portfolio, introducing new solutions through our numerousinvestments. Thus, we now have various product lines in the main short- and medium-range connectivitytechnologies and our product range has expanded to AIoT SoCs. Our core technologies are self-developed,including connectivity IPs, RF components, RISC-V IPs, software frameworks, tools, AI functions etc.We also provide IoT modules based on our chips. The bene?t for customers is that they can get direct support fromus, shortening and optimizing their supply chain, even in case of chip shortages.

Key TechnologiesWi-Fi 6E

Wi-Fi 6E

5GHz Wi-Fi 6

2.4GHz Wi-Fi 6

Wi-Fi 4

RISC-V MCU

	RISC-V MCU
32-bit Single-Core 96MHz
32-bit Single-Core 120MHz
32-bit Single-Core 160MHz
32-bit Single-Core 240MHz

Technical Breadth

Technical BreadthIn progress

In progress32-bit Multiple-Core

32-bit Multiple-Core

Technical Depth

Technical DepthConnectivity

ConnectivityComputing

ComputingMedium Range

Medium RangeAI

32-bit Dual-Core 400MHz

AI

Thread

Thread

Zigbee

Short Range

Short RangeBluetooth 5.2 (LE)

Bluetooth 5.2 (LE)

Bluetooth 5 (LE)

Bluetooth 4.2

Bluetooth 5.3 (LE)

Bluetooth 5.3 (LE)Bluetooth 5.4 (LE)

Bluetooth 5.4 (LE)AI

AI
	Voice Wake-up
	Of?ine Voice Commands
	Face and Object Recognition

Multimedia

Multimedia

H.264 Encoder

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Key Products - Chip Matrix

High-Performance

Cost-Effective

Cost-EffectiveNew

NewRelativelyNew

RelativelyNewClassic

ClassicESP

ESP

8266

			8266
	ESP8266
32-bit Tensilica MCU Single-Core @160MHz

32-bit RISC-V MCUSingle-Core @120MHz

32-bit RISC-V MCUSingle-Core @120MHz

ESP32 -

ESP32 -

C2

C2

32-bit RISC-V MCUSingle-Core @160MHz

32-bit RISC-V MCUSingle-Core @160MHz

ESP32 -

ESP32 -

C3

C332-bit RISC-V MCUSingle-Core @96 MHz

32-bit RISC-V MCUSingle-Core @96 MHz

ESP32 -

ESP32 -

H2

		C6				H2
	ESP32 -
32-bit RISC-V MCU Single-Core @160MHz

32-bit Xtensa MCUSingle-Core @240 MHz

32-bit Xtensa MCUSingle-Core @240 MHz

ESP32 -

ESP32 -

S2

S2

ESP32-S2

ESP32-S232-bit RISC-V MCUDual-Core @400 MHz

32-bit RISC-V MCUDual-Core @400 MHz

ESP32 -

ESP32 -

P4

P4H.264 encoding

H.264 encodingAI

AI32-bit RISC-V MCUDual-Core @96 MHz

32-bit RISC-V MCUDual-Core @96 MHz

ESP32 -

ESP32 -

H4

H4

ESP32

ESP32ESP

ESP

	32						S3
				ESP32-S3
						ESP32 -
32-bit Xtensa MCU Dual-Core @240 MHz				32-bit Xtensa MCU Dual-Core @240 MHz

AI

AI32-bit RISC-V MCUSingle-Core @240MHz

32-bit RISC-V MCUSingle-Core @240MHz

ESP32 -

ESP32 -C5

C532-bit RISC-V MCUSingle-Core @160MHz

32-bit RISC-V MCUSingle-Core @160MHz

ESP32 -

ESP32 -

C61

C61

RISC-V

ESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Espressif acquired a majority stake in M5Stack in 2024 Q2. M5StackªÍis renowned for its innovative approach tohardware development and offers a modular, open-source platform that simpli?es the creation of IoT and embeddedsystem solutions, greatly enhancing deployment ef?ciency. The M5Stack ecosystem is built around its ?agship maincontrol module, powered by Espressif¡¯s all ESP32 series of chips, highlighting the deep technical synergy betweenthe two companies.M5Stack¡¯s product portfolio primarily comprises controllers and other hardware modules needed in IoT applicationsolutions and is mainly sold to the industrial, education, and developer markets.M5Stack maintains an impressive pace of launching one new hardware product every week. A diversi?ed productportfolio with approximately 300 SKUs helps developers rapidly prototype end products, accelerating the design-inprocess for Espressif's products with end customers. This ultimately brings more business opportunities forEspressif's chips and modules.

Key Products - M5Stack Development Kits

Controller

Voltage & Amperage

Meter

Voltage & Amperage Meter		ªÈAir Quality Kit		Cardputer

Camera

CameraPoE Camera

PoE Camera

Lora Unit

Lidar Bot

Rotary Knob

Rotary KnobModule

Sensor		Module		Kits

Weight I2C Unit

¡­

¡­

MANAGEMENT REPORT

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

MarketThe market for wireless SoCs is truly diverse, including applications for smart homes (e.g., smart lights, airconditioners, ovens, coffee machines, etc.), consumer electronics (e.g., smart speakers, drones, etc.), industrialautomation (e.g., mechanical arms), smart agriculture (e.g., soil PH detector, CO2 detector, etc.), healthcare (e.g.,monitoring devices for diabetes, blood pressure, etc.), energy control (solar energy devices, EV chargers, etc.), theinternet of vehicles (OBD devices, dashboards, etc.), and education (talking pens, interactive whiteboards, etc.).We seem to be witnessing an economic recovery, with both new and existing customers showing growth inbusiness. At the same time, we have also seen the emergence of applications in new areas, such as beautydevices. After experiencing the low point of 2023, clients in the new energy sector have also begun to show signs ofrecovery.

Smart HomeSmart Ovens

Smart Ovens

Smart Speakers

IndustrialAutomation

IndustrialAutomationMechanical Arms

Mechanical ArmsHealthcare

HealthcareMedical Detectors

Medical Detectors

Intelligentinstrument panel

Intelligentinstrument panelTalking Pens

Talking PensSmartAgriculture

SmartAgricultureSoil PH Detector

Soil PH DetectorInternet ofVehicles

Energy Management		Internet of Vehicles

ConsumerElectronics

ConsumerElectronicsEducation

EducationSmart Solar

Panels

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |Business Model

Espressif has deployed the Business-to-Developer type of marketing, not only because it has gained prominence inrecent years, but also because it has proven to be more effective since the in?uence of developers on organizationsof all sizes has gained traction. In other words, most developers are R&D employees in various companies and bringforth business opportunities from the companies they work for.ªÍThis way, the developer ecosystem we have created at Espressif demonstrates how the value of networks can growexponentially:

?The more developers we attract as customers, the more hardware and software solutions we generate.?The more successful hardware and software solutions we create, the more our reputation spreads with positivefeedback from happy customers/developers.?The above-mentioned interaction between people in our network prompts the creation of more content, which -inturn- attracts more users/developers searching for new content.?Likewise, other third-party development platforms join our ecosystem and bring in new developers, as ourin?uence continues to grow.Having successfully applied the B2D2B model, Espressif can now focus on R&D investments, while maintaining asmall business team that supports a large number of customers directly. In fact, most of our revenue is gainedthrough direct sales.

Business-to-Developer-to-Business (B2D2B)

Global Code Hosting Platform		Global Video Sharing Platform
115,500		21,400		4,317 K
ESP32 and ESP8266 Projects		Espressif Followers		Views of the Most Popular ESP32 Video
Chinese Code Hosting Platform		Chinese Video Sharing Platform
11,845		34,611		1,374 K
ESP32 and ESP8266 Projects		Espressif Followers		Views of the Most Popular ESP32 Video
Social Networking Site		Social Networking Platform
87,000		14,340		28,733
ESP32 Group Members		Espressif Followers		M5Stack Followers

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Developer Community Content

TEXT

New Discussions Around the Clock

"Micropython: Python para programarmicrocontroladores y sistemasembebidos"A lo largo de este curso aprenderemosa programar aplicaciones enplataformas como m5Stack y ESP32.Curso tutorizado y online en el CampusTecnol¨®gico #Formaci¨®n#MicroPython

How to do Object Detection usingESP32-CAM and Edge Impulse YOLOModelSo here is my latest tutorial on how touse the ESP32CAM for objectrecognition. I have earlier builtsomething similar with ¡­

Posted on 10 Jul 2024

https://ªÌ.reddit.com/r/esp32/comments/1dzruxz/comment/lchld04/

Posted on 10 Jul 2024L?p tr¨¬nh ESP32 - B¨¤i 7 - C¨¢ch s? d?ngBlynk IOT tr¨ºn ESP32 ?? truy?n nh?nd? li?uH??ng d?n c¨¢ch s? d?ng Blynk IOTtr¨ºn ESP32 ?? truy?n nh?n d? li?u khil¨¤m thi?t b? IOT.

https://twitter.com/arduino_zero/status/1810736626588410204

Posted on 10 Jul 2024Posted on 10 Jul 2024

Posted on 10 Jul 2024

Posted on 10 Jul 2024

ESP32S3+LVGL+GUI Guider½ø?UIͼÐÎÉè¼ÆÈ«¹ý³Ì½Ìѧ|ÖÇÄÜ?±í|×À?ʱÖÓ|DIY

https://b23.tv/hCKkI88

ESP32-ADF with MAX98357A usingplatformio

Cumulative Number ofGitHub ESP32 Projects2017-01

2017-01

2024-07

69.5K

69.5K

Number of RedditESP32 Group Members

Number of RedditESP32 Group Members2022-04

2022-04

2024-07

87.0K

https://ªÌ.youtube.com/watch?v=VK3N7_Hjsu4

Posted on 10 Jul 2024

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |Books about ESP Products

TEXT

More than 200 books on how to use ESP products can be found in the developer community and cover over adozen languages.

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Research and Development

R&D investment is at the heart of Espressif Systems¡¯ development. During the reporting period, R&D cost CNY

218.68 million, which marked a 22.73% increase compared with that of 2023. At the same time, the R&D-to-sales

ratio was 23.76% in the ?rst half of this ?scal year (2024).Espressif¡¯s escalating R&D investment cost can be attributed to the increase in the number of R&D staff and theirsubsequent compensation level, which increased signi?cantly year-over-year.

We seek to protect our technologies through a combination of patents, softwarecopyright and trade secrets. By June 30, 2024, the Company had been granted 195patents. We continue to submit new patent applications relating to our recent R&Dinnovations.

R&D Investment

List of Intellectual Property Rights Applied and Granted

	H1 2024				Cumulative number
	Applied for		Granted		Applied for		Granted
Invention patents	1		6		135		95
Utility model patents	2		4		33		31
Design patents	0		0		11		11
Software copyright	3		3		26		26
Others	5		4		68		32
Total	11		17		273		195

Six Months Ended

		Six Months Ended
CNY		June 30, 2024		June 30, 2023		change (%)

R&D Expenses

R&D Expenses	218,682,370		178,184,574		22.73
R&D-to-sales ratio	23.76%		26.71%

Applied for

Granted

N.B.: The number of patents that have been ¡°applied for" does not include the rejected applications in China, or the PCT patent applications not submitted to anyparticular country, or any patent applications beyond the reporting period. The number of ¡°granted" patents includes those with expired IP rights. The category of¡°others¡± includes overseas (non-Chinese) patent applications, i.e. the PCT patent applications, U.S. patent applications through the PCT route or the Paris Conventionroute, as well as patent applications in India.

Intellectual Property

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

R&D Employees

We are proud of our talented, diverse and multicultural workforce. By June 30, 2024, across our nine branches in ?vecountries, including China, India, the Czech Republic, Brazil and Singapore, we had employed 728 people, morethan 71% of whom are in engineering roles. Meanwhile, we have expanded our business beyond Wi-Fi MCUs, thusoffering innovative solutions to wireless connectivity and processing, including RF, RISC-V MCU, Wi-Fi 6, BluetoothLE, Thread, Zigbee, Matter, AI and other IoT-related technologies.Since the research and development of software and hardware are inextricably intertwined, we constantly invest insoftware technology, too. Hence, we are currently focused on AIoT technologies, including toolchains, compilers,operating systems, application frameworks, AI algorithms, Cloud, APPs, etc. Our aim is to make Espressif a one-stopsolution-provider offering anything relating to AIoT.

Six Months Ended
June 30, 2024		June 30, 2023

R&D employees

R&D employees	519		455
R&D employees as a percentage of total employees	71.29%		76.99%
Total compensation of R&D employees (CNY in thousands)	169,820		135,244
Average compensation of R&D employees (CNY in thousands)	339		302

R&D ExpensesR&D Employees

2020

2021

2022

2023

H1 2024

R&D expenses (in million)R&D-to-sales ratio

23.8%

28.2%

		28.2%
26.5%

19.6%

19.6%

23.2%

23.2%

		272
193

23.8%

23.8%

28.2%

		28.2%
26.5%

19.6%

19.6%

23.2%

23.2%

2020

2020

2021

2022

2023

H1 2024

R&D employeesR&D employees %

71.3%

77.4%

76.1%

77.4%

75.0%

75.7%

75.0%

				519
		484
440

		388
340

71.3%

71.3%

77.4%

76.1%

77.4%

75.0%

75.7%

75.0%

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Ownership of Securities

Shareholder Structure as of June 30, 2024

Share types		Ordinary share
Share capital		112,188,505 (as of June 30, 2024)
Listing		Shanghai Stock Exchange (SSE)
Ticker		688018.SH
Listing Date		2019-07-22

Shareholder

Shareholder

Share Numbers

Percentage (%)

Espressif (Hong Kong) Investment Ltd.

Espressif (Hong Kong) Investment Ltd.		46,266,142		41.24
Shinvest Holding Ltd.		3,116,651		2.78
Hong Kong Securities Clearing Company Limited		2,544,925		2.27
Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.1		1,641,024		1.46
Ningbo Meishan Free Trade Port Le Tun Investment Management Partnership (Limited Partnership)		1,464,442		1.31
Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.3		1,333,688		1.19
ROBINA WOOD		1,097,040		0.98
SPD - Debang Semiconductor Industry Hybrid Initiated Securities Investment Fund		923,251		0.82
ICBC-AXA LIFE - Long-term Dividend Product		880,531		0.78
GTJA Futures - Guolian An CSI Semiconductor Products and Equipment Tradable Open-ended Index Securities Investment Fund		808,544		0.72
Top 10 shareholders		60,076,238		53.55

Espressif Systems (Shanghai) Co., Ltd. Repurchase SpecialSecurities Account

Espressif Systems (Shanghai) Co., Ltd. Repurchase Special Securities Account		2,299,148		2.05
Other public shareholders		52,112,267		46.45
Total of outstanding shares		112,188,505		100.00

Basic information of securities

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |Stock-Based Compensation

Espressif has eight ongoing restricted stock incentive plans. The fair value of the restricted stock incentive plans iscalculated by using the Black-Scholes model. The following table presents details of stock-based compensationcosts acknowledged in the Consolidated Statements of Income.

Plan		Award Type		Number of Underlying Shares		Ratio of Underlying Shares (%)		Grant Price (CNY)
2019 restricted stock incentive plan		Class II restricted stock		199,620		0.1779		43.59
2020 restricted stock incentive plan		Class II restricted stock		140,598		0.1253		65.02
2021 restricted stock incentive plan		Class II restricted stock		749,228		0.6678		65.64
2022 restricted stock incentive plan		Class II restricted stock		819,109		0.7301		83.86
2023 I restricted stock incentive plan		Class II restricted stock		87,466		0.0780		42.14
2023 II restricted stock incentive plan		Class II restricted stock		764,536		0.6815		27.86
2023 III restricted stock incentive plan		Class II restricted stock		94,410		0.0842		45.36
2024 restricted stock incentive plan		Class II restricted stock		1,177,960		1.0500		35.00

Six Months Ended

		Six Months Ended
CNY		Jun 30, 2024		Jun 30, 2023

Selling expenses

Selling expenses	663,608		591,697
G&A expenses	591,327		535,743
R&D expenses	14,076,255		11,140,129

Total stock-based compensation

Total stock-based compensation

15,331,190

12,267,568

N.B.:

The above-mentioned numbers were calculated on June 30, 2024.The grant price has been adjusted due to cash dividend distribution and capitalization of reserves.

Restricted Stock Incentive Plans

Stock-Based Compensation

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Risks and Uncertainties

Financial Risk

The Company performs periodic credit evaluations of its customers¡¯ ?nancialcondition and generally requires of its customers no collateral. The Companyprovides an allowance for expected credit losses, based on the net amountexpected to be collected on such receivables. Losses have not beensigni?cant for any of the periods presented in this report.

R&D Risk

Espressif¡¯s research and development strategy is focused on leveraging newtechnologies for the creation of innovative AIoT products. Any delays orchanges in the development of these technologies by our industry partners, ora failure of our products to achieve market acceptance, could compromise ourcompetitive position.CompetitorsAs the market for AIoT products grows, we face an increasing antagonism fromrelatively large competitors, such as Realtek, MediaTek, In?neon, NXP,Qualcomm and others. Intense competition from current players, as well as newentrants, such as Silicon Labs and Nordic, may reduce our product sales andmarket share.

Suppliers

A signi?cant portion of the Company¡¯s products is fabricated by the TaiwanSemiconductor Manufacturing Company Limited (TSMC). The inability of TSMCto deliver wafers to the Company in a timely manner could impact the productionof the Company¡¯s products for a certain period of time, which could have anadverse effect on the Company¡¯s business, ?nancial condition, results ofoperations and cash ?ow.

Customers

The Company sells directly to end customers, distributors, solution providers andcontract manufacturers. Our customers are a mix of several big customers andnumerous small customers. The concentration ratio for our top-?ve customerswas 24.96% in H1 2024.

MANAGEMENT REPORTESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

CONSOLIDATED FINANCIAL STATEMENTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Consolidated Balance Sheet (Unaudited)

Consolidated FinancialStatements (Unaudited)

CNY

June 30, 2024

December 31, 2023

Assets

AssetsCurrent assets:

Current assets:
Cash and cash equivalents	488,346,387		464,011,234
Held for trading ?nancial assets			90,315,219
Notes receivable	24,802,567		42,082,006
Accounts receivable, net	313,074,690		251,641,263
Accounts receivable ?nancing
Prepayments	59,807,428		9,802,407
Other receivables	11,784,979		9,157,910
Including: Interest receivable
Inventories	376,292,586		242,352,587
Other current assets	90,800,518		106,338,922

Total current assets

Total current assets

1,364,909,155

1,215,701,548

Non-current assets:

Non-current assets:

Debt investment

Debt investment	576,383,600		753,024,500
Investment in other equity assets	30,967,840		36,079,840
Other non-current ?nancial assets	34,879,347		34,879,347
Fixed assets	86,385,163		76,401,004
Right-of-use assets	18,988,095		15,937,207
Intangible assets	28,241,890		1,633,298
Goodwill	75,619,024
Long-term deferred expenses	15,050,416		9,337,814
Deferred income tax assets	90,465,300		60,805,808

Total assets

Total assets

2,321,889,830

2,203,800,366

Goodwill is primarily attributable to the assembled workforce and anticipated synergies and other strategic bene?ts expected from integratingM5Stack.

CONSOLIDATED FINANCIAL STATEMENTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Consolidated Balance Sheet (Unaudited)

CNY

June 30, 2024

December 31, 2023

Liabilities & Shareholders¡¯ Equity

Liabilities & Shareholders¡¯ EquityCurrent liabilities:

Current liabilities:
Accounts payable	116,385,599		79,841,809
Contract liabilities	28,101,110		13,318,710
Payroll payable	71,516,379		102,238,914
Taxes payable	679,050		615,415
Other payable	32,807,194		11,525,208
Non-current liabilities due within one year	12,336,316		8,591,447
Other current liabilities	1,508,097		501,689

Total current liabilities

Total current liabilities

263,333,745

216,633,192

Non-current liabilities:

Non-current liabilities:
Lease liabilities	7,308,057		8,454,747
Provisions	615,637		627,089
Deferred income tax liabilities	87,976,194		65,085,110

Total liabilities

Total liabilities

359,233,632

290,800,138

Owners¡¯ equity (or shareholders' equity):

Owners¡¯ equity (or shareholders' equity):
Share capital	112,188,505		80,789,724
Capital reserves	1,330,894,926		1,358,508,382
Less: Treasury stock	213,248,731		146,969,563
Other comprehensive income	20,989,090		24,067,306
Surplus reserves	55,460,195		55,460,195
Retained earnings	626,316,607		541,144,184
Total Espressif shareholders¡¯ equity	1,932,600,591		1,913,000,228
Non-controlling interests	30,055,607

Total equity

Total equity

1,962,656,198

1,913,000,228

Total liabilities and equity

Total liabilities and equity

2,321,889,830

2,203,800,366

CONSOLIDATED FINANCIAL STATEMENTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Consolidated Income Statement (Unaudited)

		Three Months Ended				Six Months Ended
CNY		June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Revenue

Revenue	533,020,855		348,880,535		920,212,266		666,997,977
Cost of Revenue	297,891,612		205,943,925		522,715,482		394,543,321
Gross Pro?t	235,129,242		142,936,609		397,496,784		272,454,655

Taxes and surcharges

Taxes and surcharges	409,396		1,528,087		866,924		3,314,588
Selling expenses	16,063,290		13,351,348		28,915,851		25,524,250
General and administrative expenses	17,125,846		15,031,928		31,997,654		28,946,961
Research and development expenses	114,836,190		92,701,560		218,682,370		178,184,574
Financial expenses	1,492,903		-310,276		-408,615		-3,959,365
Including: Interest expenses	205,800		242,706		443,113		506,822
Interest income	3,309,886		2,636,628		7,173,410		4,650,650

Add: Other income

Add: Other income	4,948,006		187,759		18,164,613		577,635
Investment income (mark"-" for loss)	5,327,726		5,228,869		11,636,081		11,487,416
Income from changes in fair value (mark"-" for loss)	-71,822		164,550				172,379
Credit impairment losses (mark"-" for loss)	-50,844				-50,844
Assets impairment losses (mark"-" for loss)	43,693		-1,722,667		-209,761		-2,660,838
Assets disposal income (mark"-" for loss)	-506		-349		-558		4,390
Operating Income	95,397,871		24,492,125		146,982,131		50,024,629
Add: Non-operating revenue	1,589		164,572		1,589		164,572
Less: Non-operating expenses	4,673,633		3,071		4,699,729		5,536
Income before income taxes	90,725,827		24,653,626		142,283,991		50,183,665
Provision (bene?t) for income taxes	-8,071,760		-8,829,288		-10,429,078		-14,386,678

Net Income

Net Income		98,797,587		33,482,914		152,713,070		64,570,344
Net Income attributable to non-controlling interests		1,070,606				1,070,606
Net Income attributable to Espressif		97,726,982		33,482,914		151,642,464		64,570,344
Earnings per share
Basic						1.8116		0.8059
Diluted						1.8116		0.8059
		Three Months Ended				Six Months Ended
CNY		June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Net Income

Net Income	98,797,587		33,482,914		152,713,070		64,570,344
Other comprehensive income (loss), after tax
Changes to the fair value of investment in other equity instruments	9,486,000				9,486,000
Currency translation reserves	1,279,812		19,755,010		-773,016		14,486,498
Other comprehensive income (loss)	10,765,812		19,755,010		8,712,984		14,486,498
Other comprehensive income (loss) attributable to non-controlling interests

Comprehensive income

Comprehensive income	109,563,399		53,237,924		161,426,053		79,056,842
Comprehensive income attributable to non-controlling interests	1,070,606				1,070,606
Comprehensive income attributable to Espressif	108,492,793		53,237,924		160,355,448		79,056,842

CONSOLIDATED FINANCIAL STATEMENTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |Consolidated Cash Flow Statement (Unaudited)

		Three Months Ended				Six Months Ended
CNY		June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Operating Activities

Operating Activities
Cash from sales of merchandise and provision of services	539,670,869		351,729,950		979,986,644		668,675,823
Tax refund	14,348,735		11,113,912		22,039,088		33,504,703
Other received cash related to operational activities	5,459,397		4,349,276		13,066,919		10,494,111
Subtotal of cash in?ow from operational activities	559,479,001		367,193,138		1,015,092,651		712,674,636

Cash paid for merchandise and services

Cash paid for merchandise and services	457,075,056		177,404,495		744,342,308		322,438,347
Cash paid to and for employees	80,517,004		74,283,588		235,965,098		208,755,881
Cash paid for taxes and surcharges	6,081,313		22,795,807		7,382,465		36,251,089
Other paid cash related to operational activities	29,473,800		26,303,049		53,079,614		45,529,677
Subtotal of cash out?ow from operational activities	573,147,173		300,786,939		1,040,769,485		612,974,994
Net cash provided by operating activities	-13,668,172		66,406,199		-25,676,834		99,699,642

Investing activities

Investing activities
Cash arising from the disposal of investments	185,297,048		465,055,370		455,877,171		1,282,789,551
Cash arising from investment income	3,450,779		2,075,281		4,235,229		3,829,647
Net cash arising from the disposal of ?xed assets, intangible assets and other long-term assets	2,210		1,400		9,664		19,250
Other received cash relating to investment activities	1,213,000		1,342,000		1,739,000		1,653,000
Subtotal of cash in?ow from investment activities	189,963,036		468,474,051		461,861,063		1,288,291,448
Cash paid for the purchase and construction of ?xed assets, intangible assets and other long-term assets	16,924,485		10,053,768		25,200,081		24,779,027
Cash paid for investments	102,175,231		488,000,000		222,175,231		1,351,000,000
Other paid cash relating to investment activities	600,000		300,000		1,600,000		600,000
Subtotal of cash out?ow from investment activities	119,699,716		498,353,768		248,975,311		1,376,379,027
Net cash provided by investment activities	70,263,321		-29,879,716		212,885,752		-88,087,579

Financing activities

Financing activities
Cash arising from the issuance of common stock	10,949,956		23,229,130		10,949,956		23,957,017
Including: Cash arising from subsidiaries absorbing investments by minority shareholders
Subtotal of cash in?ow from ?nancing activities	10,949,956		23,229,130		10,949,956		23,957,017

Cash paid for the distribution of dividends and pro?ts, orpayment of interests

Cash paid for the distribution of dividends and pro?ts, or payment of interests	78,261,241				78,261,241
Including: dividends and pro?ts paid to minority shareholders by subsidiaries
Other paid cash relating to ?nancing activities	3,716,887		3,732,556		96,838,779		7,064,234
Subtotal of cash out?ow from ?nancing activities	81,978,128		3,732,556		175,100,020		7,064,234
Net cash provided by ?nancing activities	-71,028,172		19,496,574		-164,150,064		16,892,783

Impact of ?uctuation in exchange rates on cash and cashequivalents

Impact of ?uctuation in exchange rates on cash and cash equivalents	-8,037,252		10,632,571		-13,753,458		12,103,780
Net increase in cash and cash equivalents	-22,470,275		66,655,628		9,305,396		40,608,625
Add: Cash and cash equivalent at the commencement of the period	506,706,793		324,630,351		474,931,121		350,677,354
Cash and cash equivalents at the end of the period	484,236,518		391,285,979		484,236,518		391,285,979

CONSOLIDATED FINANCIAL STATEMENTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Consolidated Cash Flow Statement- Indirect Method (Unaudited)

		Three Months Ended				Six Months Ended
CNY		June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Additional information

Additional informationNet income

Net income	98,797,587		33,482,914		152,713,070		64,570,344
Adjustments to cash provided by operating activities, for the purpose of reconciling net income:
Add: provision for the impairment of assets	-43,693		1,722,667		209,761		2,660,838
Credit impairment provision	50,844				50,844
Depreciation of ?xed assets	5,543,158		4,656,412		10,922,933		9,015,054
Depreciation of right-of-use assets	3,226,029		3,132,043		6,455,716		6,191,678
Amortization of intangible assets	397,071		194,755		591,825		389,509
Amortization of long-term prepaid expenses	1,589,624		1,115,525		2,942,916		2,131,486
Losses on disposal of ?xed assets, intangible assets and other long-term assets (mark"-" for income)	506		349		558		-4,390
Losses on scrapping of ?xed assets (mark"-" for income)	4,656,083				4,656,083
Losses on fair value changes£¨mark"-" for income£©	71,822		-164,550				-172,379
Financial expenses£¨mark"-" for income£©	4,623,920		2,207,636		6,450,037		438,044
Losses on investment£¨mark"-" for income£©	-5,327,726		-5,228,869		-11,636,081		-11,487,416
Decrease on deferred income tax assets£¨mark¡±-" for increase£©	-14,329,853		-5,210,646		-29,671,227		-19,268,821
Increase on deferred income tax liabilities£¨mark"-" for decrease£©	13,220,613		-1,192,035		23,297,884		4,092,185
Changes in operating assets and liabilities:
Decrease in inventories£¨mark"-" for increase£©	-68,083,650		43,849,565		-109,637,148		104,188,797
Decrease in operational receivables£¨mark"-" for increase£©	-151,075,340		-49,397,224		-141,299,427		-72,586,295
Increase in operational payables£¨mark"-" for decrease£©	84,085,072		27,594,458		42,944,232		-2,726,559
Others	8,929,762		9,643,201		15,331,190		12,267,568

Net cash ?ow provided by operating activities

Net cash ?ow provided by operating activities

-13,668,172

66,406,199

-25,676,834

99,699,642

CONSOLIDATED FINANCIAL STATEMENTSESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Consolidated Statement of Changes in Equity(Unaudited)

Equity attributable to Espresssif

CNY

Share capital

Capital reserves

Less: Treasury stock

Other comprehensive income

Surplus reserves

Retained earnings

Total Espressif Equity

Non-controllingInterests

Total equity

Balance as ofDecember 31, 2022

Balance as of December 31, 2022		80,484,430		1,309,813,001		40,966,012		16,946,374		46,570,910		413,828,832		1,826,677,535		1,826,677,535
Comprehensive income								14,486,498				64,570,344		79,056,842		79,056,842
Capital increase		246,777		31,856,474										32,103,251		32,103,251
Stock-based compensation				4,121,334										4,121,334		4,121,334
Surplus reserves
Dividends
Balance as of June 30, 2023		80,731,207		1,345,790,809		40,966,012		31,432,873		46,570,910		478,399,175		1,941,958,962		1,941,958,962

Equity attributable to Espresssif

Equity attributable to Espresssif

CNY

Share capital

Capital reserves

Less: Treasury stock

Other comprehensive income

Surplus reserves

Retained earnings

Total Espressif Equity

Non-controllingInterests

Total equity

Balance as ofDecember 31, 2023

Balance as of December 31, 2023		80,789,724		1,358,508,382		146,969,563		24,067,306		55,460,195		541,144,184		1,913,000,228				1,913,000,228
Comprehensive income								8,712,984				151,642,464		160,355,448		1,070,606		161,426,053
Capital increase		31,398,781		-14,689,138		-22,495,821								39,205,464				39,205,464
Repurchase						88,774,989								-88,774,989				-88,774,989
Stock-based compensation				-12,924,318										-12,924,318				-12,924,318
Surplus reserves
Subsidiary Acquisition								-11,791,200				11,791,200				28,985,002		28,985,002
Dividends												-78,261,241		-78,261,241				-78,261,241
Balance as of June 30, 2024		112,188,505		1,330,894,926		213,248,731		20,989,090		55,460,195		626,316,607		1,932,600,591		30,055,607		1,962,656,198

FURTHER INFORMATIONESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

Terms and Conditions of the Report

The Board of Directors, the Board of Supervisors and the executive management of the Company warrant that thecontents of this report are true, accurate and complete, and do not contain any false information, misleadingstatements or material omissions, severally and jointly accepting any legal responsibility thereof.Shanghai, 29 July 2024Espressif Systems

Further Information

Forward-looking StatementsThis report contains forward-looking statements and/or assessments about the business,?nancial condition, performance and strategy of the Espressif Group. These statements and/orassessments are based on assumptions and management expectations resting upon currentlyavailable information and current estimates. These are subject to a multitude of uncertaintiesand risks, many of which are partially or entirely beyond Espressif¡¯s control. Espressif¡¯s actualbusiness development, ?nancial condition, performance and strategy may, therefore, differ fromwhat is discussed in this report.

Responsibility Statement

ESP

RESS

IF

Declaration

S

Y

STEMSBoard of Directors

Board of Directors

Teo Swee Ann

Teo Swee Ann

Founder and Chairman

Ng Pei Chi

Ng Pei Chi

Information Technology Of?cer

Wang Jue

Wang Jue

Deputy General Manager

Teo Teck Leong

Teo Teck Leong

Shareholder-elected

Lan Yuzhe

Lan Yuzhe

Independent Director

Koh Chuan Koon

Koh Chuan Koon

Independent Director

Lee Sze Chin

Lee Sze Chin

Independent Director

Board of Supervisors

Board of SupervisorsLv Zhihua

Lv Zhihua

Employee-elected

Fu Hanyu

Fu Hanyu

Shareholder-elected

Wang Yiwen

Wang Yiwen

Shareholder-elected

Executive Management

Executive Management

Teo Swee Ann

Teo Swee Ann

Founder and CEO

Wang Jue

Wang Jue

Deputy General Manager

Shao Jingbo

Shao Jingbo

Financial Director

FURTHER INFORMATIONESPRESSIF SYSTEMS | 2024 Q2 & HALF-YEAR REPORT |

List of abbreviations

AI	Arti?cial Intelligence
AIoT	Arti?cial Intelligence and Internet of Things
Bluetooth LE	Bluetooth Low Energy
CEO	Chief Executive Of?cer
CES	Consumer Electronics Show
EBITDA	Earnings Before Interest, Taxes, Depreciation and Amortization
Espressif	ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD.
G&A	General and Administrative
GM	Gross Margin
HMI	Human-Machine Interaction
IC	Integrated Circuit
IoT	Internet of Things
MCU	Microcontroller Unit
OBD	On-Board Diagnostics
R&D	Research and Development
RF	Radio Frequency
RISC-V	Reduced Instruction Set Computer-V
ROE	Return on Earnings
RTOS	Real-Time Operating System
SG&A	Selling, General and Administrative
SH	Shanghai
SoCs	System on Chips
YoY	Year-on-Year

Copyright ? 2024 Espressif Systems (Shanghai) Co., Ltd. All rights reserved. All trade names,trademarks and registered trademarks mentioned in this document are the property of theirrespective owners, and are hereby acknowledged. The term ¡°Espressif¡± refers to EspressifSystems (Shanghai) Co., Ltd. and/or its subsidiaries. This report is written in both Chinese andEnglish. In case of any discrepancies between Chinese and foreign interpretations, theChinese version shall prevail.All amounts presented in these condensed Consolidated Financial Statements are shown inCNY unless stated otherwise. Slight discrepancies between the amounts presented mayoccur due to rounding.

Investor RelationsSocial Media

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