ESPRESSIF SYSTEMS
| Key Financial Data | 07 |
| Key Financial Indicators | 07 |
| Financial Analysis | 08 |
Edge-Cloud AI
| Edge-Cloud AI | 06 |
About Espressif
Core Competitiveness
Business Highlights
Management Report
Business Strategy
| Business Strategy | 09 |
| Key Products - IoT Chips | 10 |
| Key Products - Chip Matrix | 11 |
| Key Products - M5Stack DevKits | 12 |
| Market | 13 |
Business Model
| Business Model | 14 |
| Developer Community Content | 15 |
| Ownership of Securities | 16 |
| Risks and Uncertainties | 17 |
Contents
CONTENTS
Consolidated Financial Statements(Unaudited)
Consolidated Balance Sheet
| Consolidated Balance Sheet | 18 |
| Consolidated Income Statement | 20 |
| Consolidated Cash Flow Statement | 21 |
Further Information
Terms and Conditions of the Report
| Terms and Conditions of the Report | 23 |
| List of abbreviations | 24 |
Core Technologies
Management Report （Continued）
1 Billion+Global IoT Chip
Shipment
200+ PatentsIn AIoTTechnology
GlobalLeader
In Wi-Fi MCUMarket
As a publicly traded, multinational fabless semiconductorcompany (Espressif Systems, SSE: 688018.SH), wedevelop low-power wireless communication chipsetsand AIoT solutions that are green, versatile, and cost-effective. With a closed-loop development cycle, weadvance core technologies, including Wi-Fi, BluetoothLE, IEEE 802.15.4, RF, RISC-V MCUs, AI, operatingsystems, and cloud services. As IoT evolves, ourexpanding software capabilities have transformedEspressif into a comprehensive AIoT technologyecosystem company.
Build Smart with Espressif
ABOUT ESPRESSIF
2 Million+Active Ecosystem
Developers
10,000+
Satis?edCustomersWorldwide
SHARE CONNECT INNOVATE
Open-sourceCommunities
Conferences & Education
Initiatives
DiverseApplications
ESPRESSIF SYSTEMS Q1 2025 REPORT
CORE COMPETITIVENESS
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.
The 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 awareness not only fosterscustomer retention 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 | 2025-03 |
ESP32 Google Trends
Espressif Google Trends
2019-07
| 2019-07 | 2025-03 |
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 SupportEspressif 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.
Brand Awareness
ESPRESSIF SYSTEMS Q1 2025 REPORT
SoCsAIESP8266, ESP32, ESP32-S, ESP32-C, ESP32-H and ESP32-P SeriesEspressif offers integrated, reliable, andenergy-ef?cient SoCs for Wi-Fi,!Bluetooth Low Energy, Thread and Zigbeeto various segments 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.Software
Matter
One-stop Matter Solution
This is the culmination ofEspressif’s ongoing contribution tothe Matter platform in variousareas, including protocolformulation, core stackimplementation and certi?cationtest events.
OS
ESP-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-MDF, CloudConnectivity Platform ESPRainMaker, Facial RecognitionDevelopment Framework ESP-WHO, and Voice-ControlledAssistant ESP-Skainet, we havedeveloped a framework for buildingAIoT applications, which is bothcomplete and innovative.
3A Audio Algorithms
including 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) Algorithmsquali?ed as a"“Software Audio Front-EndSolution” for Amazon Alexa Built-in devices.
Core Technologies
CORE TECHNOLOGIES
ESPRESSIF SYSTEMS Q1 2025 REPORTCORE TECHNOLOGIES
Edge-Cloud AI
Leveraging AI and NLP technologies, Espressif’s edge-cloud AI and Human-Machine Interface (HMI) solutionsdeliver a seamless and intuitive interaction experience. ESP32-S3 and ESP32-P4 support localized voiceassistants and graphical touch interaction while integrating with cloud-based LLMs for more accurate semanticunderstanding and contextual engagement.The LLM solution enables natural language processing and on-device voice recognition, which reduces clouddependency, lowers latency, and enhances privacy. Meanwhile, the HMI solution combines voice, touch, andgesture recognition to provide a more intuitive and ef?cient user experience. Backed by a comprehensivesupport system, our solutions unlock the full potential of intelligent interactions at lower costs and higheref?ciency, driving IoT devices to evolve from mere "tools" into "companions."
Audio SolutionsHMI SolutionsHMI Solutions
Key Financial Indicators
BUSINESS HIGHLIGHTS
Key Financial Data
Business Highlights
| Three Months Ended | Fiscal Year | |||||
| CNY | March 31, 2025 | March 31, 2024 | 2024 | |||
| Consolidated Statement of Income Data | ||||||
| Revenue | 557,849,869 | 387,191,412 | 2,006,919,687 | |||
| Gross pro?t | 241,947,517 | 162,367,542 | 881,196,912 | |||
| Selling expenses | 17,019,921 | 12,852,562 | 62,919,353 | |||
| General and administrative expenses | 17,853,584 | 14,871,808 | 69,260,100 | |||
| Research and development expenses | 126,192,049 | 103,846,179 | 490,297,747 | |||
| Net income | 94,441,673 | 53,915,482 | 339,008,315 | |||
| Net income attributable to Espressif | 93,704,355 | 53,915,482 | 339,323,927 | |||
Earnings per share:
| Earnings per share: | ||||||
| Basic | 0.8523 | 0.4892 | 3.0889 | |||
| Diluted | 0.8523 | 0.4892 | 3.0708 | |||
Consolidated Cash Flow Data
| Consolidated Cash Flow Data | |||||
| Net cash provided by operating activities | 74,972,387 | -12,008,662 | 220,472,557 |
Non-GAAP Adjustment
| Non-GAAP Adjustment | |||||
| Stock-based compensation | 5,309,168 | 6,401,427 | 37,661,342 | ||
| Non-GAAP net income attributable to Espressif | 99,013,522 | 60,316,910 | 376,985,269 |
March 31, 2025
| March 31, 2025 | December 31, 2024 | ||
| Consolidated Balance Sheet Data | |||
| Working capital | 1,528,429,680 | 1,432,356,145 | |
| Total assets | 2,961,854,394 | 2,649,465,358 | |
| Long-term obligations | 119,884,808 | 116,956,630 | |
| Total shareholders’ equity | 2,278,072,267 | 2,179,369,221 |
Three Months Ended
| Three Months Ended | Fiscal Year | |||
| March 31, 2025 | March 31, 2024 | 2024 | ||
Gross margin
| Gross margin | 43.37% | 41.93% | 43.91% | ||
| R&D-to-sales ratio | 22.62% | 26.82% | 24.43% | ||
| EBITDA margin | 18.98% | 16.00% | 18.97% | ||
| Net income margin | 16.93% | 13.92% | 16.89% | ||
| Weighted ROE | 4.26% | 2.85% | 17.06% |
Number of Espressif employees
| Number of Espressif employees | 803 | 630 | 770 |
ESPRESSIF SYSTEMS Q1 2025 REPORT
N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2024, the earnings per share for each reporting period have been recalculatedbased on the adjusted share count.
N.B.: In Q2 2024, Espressif acquired M5Stack. The employee count in the Q1 2024 data does not include M5Stack personnel.
BUSINESS HIGHLIGHTS
Financial Analysis
| Overall GM | EBITDA Margin | SG&A as % of sales | R&D as % of sales | Net Income Margin | ROE (Q) | |||||
4.3%
4.3%
16.9%
16.9%
22.6%
22.6%
6.3%
6.3%
19.0%
19.0%
43.4%
43.4%
2.9%
2.9%
13.9%
13.9%
26.8%
26.8%
7.2%
7.2%
16.0%
16.0%
41.9%
Q1 2024Q1 2025
Revenue by Areain Q1 2025
Revenue by SalesMode in Q1 2025
Top-5 CustomerConcentration Rate
Revenue by Product Category
Key Financial Indicators
41.9%
Q1 2024
Q1 2024Q1 2025
| Q1 2025 | 62.1% | |
56.7%
56.7%
37.0%
37.0%
42.7%
ChipModule & DevKitsOthers
0.6%
0.9%
42.7%
2020
| 2020 | 21 | 22 | 23 | 24 | Q1 25 |
25.2%
25.2%
23.9%
23.9%
28.1%
28.1%
26.4%
26.4%
29.0%
29.0%
42.2%
42.2%
72.2%
72.2%China'sMainland
Rest ofthe World
China'sMainland
Rest ofthe World
72.4%
72.4%DirectIndirect
Espressif’s total revenue in the ?rst quarter of 2025 was CNY 557.85 million, marking an increase of 44.08% from CNY
387.19 million in the ?rst quarter of 2024. The overall gross margin was 43.37% and remained stable. Therefore, the
net income attributable to Espressif was CNY 93.70 million, which marked an increase of 73.80% year-on-year, mainlydue to the increase of revenue.The revenue growth was supported by a combination of internal execution and external factors. In China, a series ofpolicy measures aimed at stimulating domestic consumption—particularly in smart home, consumer electronics—created a favorable demand environment for our solutions. Beyond the smart home, other sectors—includingindustrial, energy, and healthcare—experienced even faster growth, re?ecting expanding adoption of our wirelessSoC solutions in a wider range of digitalization scenarios.
ESPRESSIF SYSTEMS Q1 2025 REPORT
Products
Cloud
Matter
serviceSolution
OS-level development environments & software tools
CustomersBrands OEM/ODMsSolution Providers Makers Module Houses
SolutionSoCs
SoCsModules
ModulesDevKits
Solutions
…
HMI Smart
DevKitsDisplays
Audio
| Displays | Solutions |
Face
Low-Power
| Recognition | Solutions |
…
MANAGEMENT REPORT
Espressif Systems’ business strategy emanates from our service/product areas and our engagement with thedeveloper ecosystem.Our product and service areas include AIoT chips, 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.
Business StrategyManagement Report
Value-added services
ESPRESSIF SYSTEMS Q1 2025 REPORT
Key Products - IoT ChipsEspressif Systems is a global leader in wireless connectivity SoCs and AIoT solutions. Since launching our ?rst Wi-FiMCU in 2014, we have continuously expanded our product portfolio and deepened our technology stack. Today,Espressif offers a comprehensive range of self-developed wireless SoCs, covering Wi-Fi 4/6/6E, Bluetooth LE (up toBLE 5.4), Thread, Zigbee, and Matter protocols, enabling diverse smart connectivity applications across consumer,industrial, and commercial domains.In recent years, Espressif has made notable progress in the development of advanced edge computing platforms.Our RISC-V-based SoCs now integrate AI accelerators, and multimedia processing capabilities, enabling ef?cientdeployment of voice, vision, and large language model (LLM)-based applications on cloud.Espressif's competitive edge lies in its end-to-end in-house technology development, including RF components,connectivity IPs, RISC-V processor cores, secure boot and OTA frameworks, real-time operating systems, AItoolchains, and developer toolkits. This vertical integration enables us to deliver consistent software and hardwareexperiences across platforms, ensuring seamless development, high integration, and long-term support for ourcustomers.To simplify product adoption, we also offer a wide range of IoT modules and development kits, fully supported byEspressif’s software ecosystem and global community. This helps customers accelerate time-to-market whileoptimizing their supply chain through direct technical and logistical support from Espressif.
MANAGEMENT REPORT
Key Technologies
Technical Depth
Technical Depth
Connectivity
ConnectivityWi-Fi 6E
| Wi-Fi 6E | |
| 2.4GHz & 5GHz Wi-Fi 6 | |
Wi-Fi 4
Wi-Fi 4Wi-Fi 7
Wi-Fi 7Wi-Fi Technologies
Wi-Fi TechnologiesThread
| Thread |
| Zigbee |
Other Wireless Technologies
Other Wireless TechnologiesTechnical Breadth
| Technical Breadth | In progress | |
Computing
ComputingRISC-V Cores
RISC-V Cores
AI Related
AI RelatedVoice Wake-up
| Voice Wake-up | ||
| Of?ine Voice Commands | ||
| Face and Object Recognition | ||
32-bit Dual-Core 400MHz
32-bit Dual-Core 400MHzH.264 Encoder & Decoder
H.264 Encoder & DecoderMultimedia
MultimediaFully supports Bluetooth 5.4
(Quali?ed against Bluetooth Core 6.0)
Fully supports Bluetooth 5.4
(Quali?ed against Bluetooth Core 6.0)32-bit Single-Core 96MHz
32-bit Single-Core 96MHz32-bit Single-Core 120MHz
32-bit Single-Core 120MHz32-bit Single-Core 160MHz
32-bit Single-Core 160MHz32-bit Multiple-Core
32-bit Multiple-Core32-bit Single-Core 240MHz
ESPRESSIF SYSTEMS Q1 2025 REPORT
Key Products - Chip Matrix
High-Performance
Cost-Effective
EmergingGrowthLegacy
32-bit RISC-V MCUSingle-Core @120MHzESP32 -
ESP32 -
C2
| ESP32C2 | C2 |
MANAGEMENT REPORT
32-bit RISC-V MCUSingle-Core @160MHzESP32 -
ESP32 -
C3
| ESP32C3 | C3 |
32-bit Xtensa MCUSingle-Core @240 MHz
32-bit Xtensa MCUSingle-Core @240 MHzESP32 -
ESP32 -
S2
| ESP32S2 | S2 |
32-bit Xtensa MCUDual-Core @240 MHz
32-bit Xtensa MCUDual-Core @240 MHz
ESP
ESP
| ESP32 | 32 |
AI
AI
32-bit Xtensa MCUDual-Core @240 MHz
32-bit Xtensa MCUDual-Core @240 MHz
ESP32 -
ESP32 -S3
| ESP32S3 | S3 |
AI
AI32-bit RISC-V MCUDual-Core @400 MHz
| 32-bit RISC-V MCU Dual-Core @400 MHz | |
| H.264 encoding | |
ESP32 -
ESP32 -
P4
| ESP32P4 | P4 |
32-bit RISC-V MCUDual-Core @96 MHz
32-bit RISC-V MCUDual-Core @96 MHzESP32 -
ESP32 -
H4
| ESP32H4 | H4 |
32-bit RISC-V MCUSingle-Core @160MHz
32-bit RISC-V MCUSingle-Core @160MHz
ESP32 -
ESP32 -C6
| ESP32C6 | C6 |
32-bit RISC-V MCUSingle-Core @96 MHz
32-bit RISC-V MCUSingle-Core @96 MHz
ESP32 -
ESP32 -
H2
| ESP32H2 | H2 |
ESP32 -
ESP32 -
C61
| C61ESP32 | C61 |
32-bit RISC-V MCUSingle-Core @160MHz
32-bit RISC-V MCUSingle-Core @160MHz32-bit Tensilica MCUSingle-Core @160MHz
32-bit Tensilica MCUSingle-Core @160MHz
ESP
ESP8266
8266
32-bit RISC-V MCUSingle-Core @240MHz
32-bit RISC-V MCUSingle-Core @240MHz
ESP32 -
ESP32 -
C5
| ESP32C5 | C5 |
RISC-V
ESPRESSIF SYSTEMS Q1 2025 REPORT
Key Products - M5Stack Development Kits
Controller
Voltage & Amperage
Meter
Air Quality KitCardputer
Camera
PoE CameraLora UnitStamp-Fly
Rotary Knob
ModuleSensorKits
Weight I2C Unit
…
…
MANAGEMENT REPORT
Espressif acquired a majority stake in M5Stack in 2024 Q2. M5Stackis 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 productevery week. A diversi?ed product portfolio with approximately 300 SKUs helpsdevelopers rapidly prototype end products, accelerating the design-in process forEspressif's products with end customers. This ultimately brings more businessopportunities for Espressif's chips and modules.
Market
MANAGEMENT REPORT
HealthcareMedical Detectors
| Medical Detectors | Talking Pens |
Education
Education
EnergyManagement
EnergyManagementSmart Solar
Panels
Smart Solar
PanelsSmart Home
Smart HomeSmart Ovens
Smart Ovens
IndustrialAutomation
IndustrialAutomationMechanical Arms
Mechanical ArmsSmartAgriculture
SmartAgricultureSoil PH Detector
Soil PH DetectorConsumerElectronics
ConsumerElectronicsSmart Speakers
Smart SpeakersIntelligentinstrument panel
Intelligentinstrument panelInternet ofVehicles
The 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, CO
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.).The smart home sector continues to be our main revenue contributor, delivering growth in line with expectations. Atthe same time, IoT adoption across non-smart-home applications is accelerating, with these segments growing at asigni?cantly faster pace and helping to support our gross margin.
ESPRESSIF SYSTEMS Q1 2025 REPORT
ESPRESSIF SYSTEMS Q1 2025 REPORTMANAGEMENT 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.This 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)
Cumulative Number of GitHub
ESP32 Projects2017-01
| 2017-01 | 2025-03 |
91.0 K
Developer Community Content
MANAGEMENT REPORT
BOOKS
| Global Code Hosting Platform | Social Networking Site | Developer-written books | 91.0 K | |||
| 140,100 | 122,000 | > 200 | ||||
| ESP32 and ESP8266 Projects | ESP32 Group Members | Covering more than 10 languages | ||||
| Chinese Video Sharing Platform | Global Video Sharing Platform | |||||
| 1.30 M | 10.17 M | 603 K | ||||
| Most Viewed ESP32 Video (2025) | Most Viewed ESP32 Short (2025) | Most Viewed ESP32 Video (2025) | ||||
Always a on Social Media
ESP32-CAM
Wi-Fi経由映像確認、画像認識遠隔操作応?
。?型省最適
Using LVGL and an ESP32-C3 tocontrol my 3D printer with Klipper
I have been the last weeks making aninterface with LVGL to be able tocontrol my 3d printer with Klipper.I've used a 1.28 inch screen, with aresolution of 240×240 px……
Posted on 2 Apr 2025
https://.reddit.com/r/esp32/comments/1jpm2dn/using_lvgl_and_an_esp32c3_to_control_my_3d/
Posted on 21 Apr 2025原创 M03 仪表盘 ESP32 CAN 敬请期待欢迎留?绝对惊喜
https://x.com/murasametech/status/1913546280242131355
Posted on 19 Apr 2025Posted on 19 Apr 2025
Posted on 13 Apr 2025
Searched on 24 Apr 2025
夏天要到了，你的桌??狗可以吹?吗？
https://b23.tv/JVeozm4
ESP32-C3-1.54 EPD?epub阅读、txt阅读、midi?乐、闹钟、时钟、表盘、天?、配?、设置、?件管理器
?由ESP32MP3墨?屏阅读器精简?来，只阉割了MP3?频?添加了蜂鸣器，可以播放midi?乐，当闹钟?
?精简电路，元件少，焊接简单，外壳好打印，?较适合新??……
https://b23.tv/RF7RxLV
36'000 km range with a simpleESP32? For sure a world record!Eight years ago, I decided to create aworld record with a tiny LoRatransmitter. The distance? 202kilometers. Today, I’m trying somethingeven more ambitious — with this smallESP32 module.
Posted on 20 Apr 2025
Searched on 23 Apr 2025
Shareholder Structure as of March 31, 2025
| Share types | Ordinary share | |
| Share capital | 112,200,431 (as of March 31, 2025) | |
| Listing | Shanghai Stock Exchange (SSE) | |
| Ticker | 688018.SH | |
| Listing Date | 2019-07-22 |
Basic information of securities
MANAGEMENT REPORT
Ownership of Securities
| Shareholder | Share Numbers | Percentage (%) |
Espressif (Hong Kong) Investment Ltd.
| Espressif (Hong Kong) Investment Ltd. | 45,016,142 | 40.12 | ||
| Hong Kong Securities Clearing Company Limited | 2,659,631 | 2.37 | ||
| Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.1 | 1,757,749 | 1.57 | ||
| Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.3 | 1,564,873 | 1.39 | ||
| CITIC Securities Co., Ltd. – Harvest SSE STAR Market Chip Tradable Open-ended Index Securities Investment Fund | 1,454,179 | 1.30 | ||
| Shinvest Holding Ltd. | 1,350,000 | 1.20 | ||
| Ningbo Meishan Free Trade Port Le Tun Investment Management Partnership (Limited Partnership) | 1,078,893 | 0.96 | ||
| Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.2 | 811,706 | 0.72 | ||
| CMS – Oriental Alpha Advantage Industry Hybrid Initiated Securities | 789,324 | 0.70 | ||
| Shenwan Hongyuan Securities Co. Ltd. | 728,715 | 0.65 | ||
| Top 10 shareholders | 57,211,212 | 50.99 |
Espressif Systems (Shanghai) Co., Ltd. Repurchase SpecialSecurities Account
| Espressif Systems (Shanghai) Co., Ltd. Repurchase Special Securities Account | 2,251,613 | 2.01 | ||
| Other public shareholders | 52,737,606 | 47.00 | ||
| Total of outstanding shares | 112,200,431 | 100.00 |
Risks and Uncertainties
MANAGEMENT REPORT
| Financial Risk | ||
| The Company performs periodic credit evaluations of its customers’ ?nancial condition and generally requires of its customers no collateral. The Company provides an allowance for expected credit losses, based on the net amount expected to be collected on such receivables. Losses have not been signi?cant for any of the periods presented in this report. | ||
R&D Risk
| R&D Risk | ||
| Espressif’s research and development strategy is focused on leveraging new technologies for the creation of innovative AIoT products. Any delays or changes in the development of these technologies by our industry partners, or a failure of our products to achieve market acceptance, could compromise our competitive position. | ||
Competitors
| Competitors | ||
| As the market for AIoT products grows, we face an increasing antagonism from relatively large competitors, such as Realtek, MediaTek, In?neon, NXP, Qualcomm and others. Intense competition from current players, as well as new entrants, such as Silicon Labs and Nordic, may reduce our product sales and market share. | ||
Suppliers
| Suppliers | ||
| A signi?cant portion of the Company’s products is fabricated by the Taiwan Semiconductor Manufacturing Company Limited (TSMC). The inability of TSMC to deliver wafers to the Company in a timely manner could impact the production of the Company’s products for a certain period of time, which could have an adverse effect on the Company’s business, ?nancial condition, results of operations and cash ?ow. | ||
Customers
| Customers | ||
| The Company sells directly to end customers, distributors, solution providers and contract manufacturers. Our customers are a mix of several big customers and numerous small customers. The concentration ratio for our top-?ve customers was | ||
| 25.2% in Q1 2025. | ||
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheet (unaudited)
Consolidated FinancialStatements
| CNY | March 31, 2025 | December 31, 2024 |
Assets
AssetsCurrent assets:
| Current assets: | |||
| Cash and cash equivalents | 952,942,581 | 673,884,162 | |
| Held for trading ?nancial assets | |||
| Notes receivable | 25,687,112 | 38,605,565 | |
| Accounts receivable, net | 355,801,396 | 318,420,157 | |
| Accounts receivable ?nancing | |||
| Prepayments | 19,532,369 | 15,857,596 | |
| Other receivables | 12,048,896 | 19,978,007 | |
| Including: Interest receivable | |||
| Inventories | 472,443,678 | 485,620,281 | |
| Other current assets | 253,870,967 | 233,129,885 |
Total current assets
| Total current assets | 2,092,326,999 | 1,785,495,653 |
Non-current assets:
Non-current assets:
Debt investment
| Debt investment | 405,969,900 | 413,542,900 | |
| Investment in other equity assets | 30,967,840 | 30,967,840 | |
| Other non-current ?nancial assets | 34,221,626 | 34,221,626 | |
| Fixed assets | 98,054,426 | 93,949,828 | |
| Right-of-use assets | 22,413,175 | 25,169,744 | |
| Intangible assets | 29,805,703 | 30,853,579 | |
| Goodwill | 74,654,024 | 74,654,024 | |
| Long-term deferred expenses | 17,313,145 | 19,452,629 | |
| Deferred income tax assets | 116,127,556 | 101,157,536 | |
| Other non-current assets | 40,000,000 | 40,000,000 |
Total assets
| Total assets | 2,961,854,394 | 2,649,465,358 |
ESPRESSIF SYSTEMS Q1 2025 REPORT
Consolidated Balance Sheet (unaudited)
CONSOLIDATED FINANCIAL STATEMENTS
| CNY | March 31, 2025 | December 31, 2024 |
Liabilities & Shareholders’ Equity
Liabilities & Shareholders’ EquityCurrent liabilities:
| Current liabilities: | |||
| Short-term loan | 222,745,496 | 500,333 | |
| Accounts payable | 142,957,636 | 160,741,033 | |
| Contract liabilities | 20,064,027 | 20,877,548 | |
| Payroll payable | 57,635,926 | 129,439,567 | |
| Taxes payable | 21,342,595 | 16,321,501 | |
| Other payable | 88,087,720 | 12,397,576 | |
| Including: Interest payable | |||
| Non-current liabilities due within one year | 9,739,760 | 11,705,721 | |
| Other current liabilities | 1,324,159 | 1,156,230 |
Total current liabilities
| Total current liabilities | 563,897,319 | 353,139,508 |
Non-current liabilities:
| Non-current liabilities: | |||
| Lease liabilities | 13,802,735 | 14,802,190 | |
| Provisions | 625,445 | 620,582 | |
| Deferred income tax liabilities | 105,456,628 | 101,533,858 |
Total liabilities
| Total liabilities | 683,782,127 | 470,096,138 |
Owners’ equity (or shareholders' equity):
| Owners’ equity (or shareholders' equity): | |||
| Share capital | 112,200,431 | 112,200,431 | |
| Capital reserves | 1,356,688,756 | 1,351,379,589 | |
| Less: Treasury stock | 208,684,568 | 208,684,568 | |
| Other comprehensive income | 24,573,172 | 25,620,966 | |
| Surplus reserves | 76,858,747 | 76,858,747 | |
| Retained earnings | 886,303,872 | 792,599,518 |
Total Espressif shareholders’ equity
| Total Espressif shareholders’ equity | 2,247,940,411 | 2,149,974,683 | |
| Non-controlling interests | 30,131,856 | 29,394,537 |
Total shareholders’ equity
| Total shareholders’ equity | 2,278,072,267 | 2,179,369,221 |
Total liabilities and shareholders' equity
| Total liabilities and shareholders' equity | 2,961,854,394 | 2,649,465,358 |
ESPRESSIF SYSTEMS Q1 2025 REPORT
Consolidated Income Statement (unaudited)
CONSOLIDATED FINANCIAL STATEMENTS
| Three Months Ended | ||||
| CNY | March 31, 2025 | March 31, 2024 | ||
Revenue
| Revenue | 557,849,869 | 387,191,412 | |
| Cost of Revenue | 315,902,352 | 224,823,870 | |
| Gross Pro?t | 241,947,517 | 162,367,542 |
Taxes and surcharges
| Taxes and surcharges | 1,709,774 | 457,527 | |
| Selling expenses | 17,019,921 | 12,852,562 | |
| General and administrative expenses | 17,853,584 | 14,871,808 | |
| Research and development expenses | 126,192,049 | 103,846,179 | |
| Financial expenses | -654,376 | -1,901,518 | |
| Including: Interest expenses | 1,028,913 | 237,314 | |
| Interest income | 5,004,324 | 3,863,524 | |
| Add: Other income | 7,947,506 | 13,216,607 | |
| Investment income (mark"-" for loss) | 4,599,900 | 6,308,354 | |
| Income from changes in fair value (mark"-" for loss) | 71,822 | ||
| Credit impairment losses (mark"-" for loss) | |||
| Assets impairment losses (mark"-" for loss) | -103,424 | -253,454 | |
| Assets disposal income (mark"-" for loss) | -15,558 | -53 | |
| Operating Income | 92,254,989 | 51,584,260 | |
| Add: Non-operating revenue | 330,000 | ||
| Less: Non-operating expenses | 47,024 | 26,096 | |
| Income before income taxes | 92,537,965 | 51,558,164 | |
| Provision (bene?t) for income taxes | -1,903,708 | -2,357,318 |
Net Income
| Net Income | 94,441,673 | 53,915,482 | |
| Net Income attributable to non-controlling interests | 737,319 | ||
| Net Income attributable to Espressif | 93,704,355 | 53,915,482 |
Earnings per share
| Earnings per share | ||||
| Basic | 0.8523 | 0.4892 | ||
| Diluted | 0.8523 | 0.4892 | ||
Three Months Ended
| Three Months Ended | ||||
| CNY | March 31, 2025 | March 31, 2024 | ||
Net Income
| Net Income | 94,441,673 | 53,915,482 | |
| Other comprehensive income (loss), after tax | |||
| Changes to the fair value of investment in other equity instruments | |||
| Currency translation reserves | -1,047,794 | -2,052,828 | |
| Other comprehensive income (loss) | -1,047,794 | -2,052,828 | |
| Other comprehensive income (loss) attributable to non-controlling interests | |||
| Comprehensive income | 93,393,879 | 51,862,654 | |
| Comprehensive income attributable to non-controlling interests | 737,319 | ||
| Comprehensive income attributable to Espressif | 92,656,560 | 51,862,654 |
ESPRESSIF SYSTEMS Q1 2025 REPORT
N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2024, the earnings per share for each reporting period have been recalculatedbased on the adjusted share count.
Consolidated Cash Flow Statement (unaudited)
CONSOLIDATED FINANCIAL STATEMENTS
| Three Months Ended | ||||
| CNY | March 31, 2025 | March 31, 2024 | ||
Operating Activities
| Operating Activities | |||
| Cash from sales of merchandise and provision of services | 584,584,589 | 440,315,774 | |
| Tax refund | 14,830,187 | 7,690,353 | |
| Other received cash related to operational activities | 78,966,606 | 7,607,522 | |
| Subtotal of cash in?ow from operational activities | 678,381,381 | 455,613,649 |
Cash paid for merchandise and services
| Cash paid for merchandise and services | 359,446,334 | 287,267,252 | |
| Cash paid to and for employees | 197,026,278 | 155,448,094 | |
| Cash paid for taxes and surcharges | 18,939,933 | 1,301,152 | |
| Other paid cash related to operational activities | 27,996,449 | 23,605,814 | |
| Subtotal of cash out?ow from operational activities | 603,408,994 | 467,622,312 | |
| Net cash provided by operating activities | 74,972,387 | -12,008,662 |
Investing activities
| Investing activities | |||
| Cash arising from the disposal of investments | 270,580,123 | ||
| Cash arising from investment income | 784,450 | ||
| Net cash arising from the disposal of ?xed assets, intangible assets and other long-term assets | 7,767 | 7,454 | |
| Other received cash relating to investment activities | 578,050 | 526,000 | |
| Subtotal of cash in?ow from investment activities | 585,817 | 271,898,027 | |
| Cash paid for the purchase and construction of ?xed assets, intangible assets and other long-term assets | 14,486,027 | 8,275,595 | |
| Cash paid for investments | 120,000,000 | ||
| Net cash paid for acquisition of subsidiaries and other business units | |||
| Other paid cash relating to investment activities | 300,000 | 1,000,000 | |
| Subtotal of cash out?ow from investment activities | 14,786,027 | 129,275,595 | |
| Net cash provided by investment activities | -14,200,210 | 142,622,432 |
Financing activities
| Financing activities | |
| Cash arising from the issuance of common stock | |
| Including: Cash arising from subsidiaries absorbing investments by minority shareholders | |
| Cash received from borrowings | 222,600,000 |
| Subtotal of cash in?ow from ?nancing activities | 222,600,000 |
Cash paid to repay debt
| Cash paid to repay debt | 500,000 | ||
| Cash paid for the distribution of dividends and pro?ts, or payment of interests | 653,056 | ||
| Including: dividends and pro?ts paid to minority shareholders by subsidiaries | |||
| Other paid cash relating to ?nancing activities | 3,787,400 | 93,121,892 | |
| Subtotal of cash out?ow from ?nancing activities | 4,940,456 | 93,121,892 | |
| Net cash provided by ?nancing activities | 217,659,544 | -93,121,892 |
Impact of ?uctuation in exchange rates on cash and cash equivalents
| Impact of ?uctuation in exchange rates on cash and cash equivalents | -407,168 | -5,716,205 | |
| Net increase in cash and cash equivalents | 278,024,554 | 31,775,672 | |
| Add: Cash and cash equivalent at the commencement of the period | 667,632,307 | 459,565,727 |
Cash and cash equivalents at the end of the period
| Cash and cash equivalents at the end of the period | 945,656,860 | 491,341,398 |
ESPRESSIF SYSTEMS Q1 2025 REPORT
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Cash Flow Statement- Indirect Method (unaudited)
| Three Months Ended | ||||
| CNY | March 31, 2025 | March 31, 2024 | ||
Additional information
Additional informationNet income
| Net income | 94,441,673 | 53,915,482 | |
| Adjustments to cash provided by operating activities, for the purpose of reconciling net income: | |||
| Add: provision for the impairment of assets | 103,424 | 253,454 | |
| Credit impairment provision | |||
| Depreciation of ?xed assets | 6,028,171 | 5,379,775 | |
| Depreciation of right-of-use assets | 3,081,834 | 3,229,687 | |
| Amortization of intangible assets | 1,047,876 | 194,754 | |
| Amortization of long-term prepaid expenses | 2,162,637 | 1,353,292 | |
| Losses on disposal of ?xed assets, intangible assets and other long-term assets (mark"-" for income) | 15,558 | 53 | |
| Losses on scrapping of ?xed assets (mark"-" for income) | 1,631 | ||
| Losses on fair value changes（mark"-" for income） | -71,822 | ||
| Financial expenses（mark"-" for income） | 4,016,817 | 1,826,117 | |
| Losses on investment（mark"-" for income） | -4,599,900 | -6,308,354 | |
| Decrease on deferred income tax assets（mark”-" for increase） | -14,944,646 | -15,341,374 | |
| Increase on deferred income tax liabilities（mark"-" for decrease） | 3,922,770 | 10,077,271 | |
| Changes in operating assets and liabilities: | |||
| Decrease in inventories（mark"-" for increase） | 12,803,322 | -41,553,498 | |
| Decrease in operational receivables（mark"-" for increase） | -28,901,421 | 9,775,914 | |
| Increase in operational payables（mark"-" for decrease） | -9,516,527 | -41,140,840 | |
| Others | 5,309,168 | 6,401,427 |
Net cash ?ow provided by operating activities
| Net cash ?ow provided by operating activities | 74,972,387 | -12,008,662 |
ESPRESSIF SYSTEMS Q1 2025 REPORT
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.
E
SPRESS
I
F
Declaration
SYSTEMSBoard 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 |
Chen Myn
| Chen Myn |
| Independent Director |
Lee Kian Soon
| Lee Kian Soon |
| Independent Director |
Leong Foo Leng
| Leong Foo Leng |
| Independent Director |
Board of Supervisors
Board of Supervisors
Zhang Hanrui
| Zhang Hanrui |
| Employee-elected |
Wang Lili
| Wang Lili |
| Shareholder-elected |
Zhang Mengyu
| Zhang Mengyu |
| Shareholder-elected |
Executive Management
Executive ManagementTeo Swee Ann
| Teo Swee Ann |
| Founder and CEO |
Wang Jue
| Wang Jue |
| Deputy General Manager |
Shao Jingbo
| Shao Jingbo |
| Financial Director |
FURTHER INFORMATION
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 April 2025Espressif Systems
Further Information
Responsibility Statement
ESPRESSIF SYSTEMS Q1 2025 REPORT
| AI | Arti?cial Intelligence |
| AIoT | Arti?cial Intelligence and Internet of Things |
| Bluetooth LE | Bluetooth Low Energy |
| CEO | Chief Executive Of?cer |
| EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization |
| Espressif | ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD. |
| GM | Gross Margin |
| HMI | Human-Machine Interaction |
| IC | Integrated Circuit |
| IoT | Internet of Things |
| LLM | Large Language Model |
| 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 |
| SG&A | Selling, General and Administrative |
| SH | Shanghai |
| SoCs | System on Chips |
| YoY | Year-on-Year |
FURTHER INFORMATION
List of abbreviations
Copyright ? 2025 Espressif Systems (Shanghai) Co., Ltd. All rightsreserved. All trade names, trademarks and registered trademarksmentioned in this document are the property of their respectiveowners, and are hereby acknowledged. The term “Espressif” refers toEspressif Systems (Shanghai) Co., Ltd. and/or its subsidiaries. Thisreport is written in both Chinese and English. In case of anydiscrepancies between Chinese and foreign interpretations, theChinese version shall prevail.All amounts presented in these condensed Consolidated FinancialStatements are shown in CNY unless stated otherwise. Slightdiscrepancies between the amounts presented may occur due torounding.
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