Bestechnic (Shanghai) (SH:688608)2024-05-13 10:36Group 1: Company Overview and Strategy - Hengxuan Technology is positioned as a key supplier of main control chips for wearable devices, benefiting from the trend towards smart wearables [1] - The company has launched the BES2800 chip, a next-generation smart wearable chip based on 6nm technology, aimed at providing powerful computing power and seamless connectivity for devices like TWS headphones and smart glasses [1] - Hengxuan is committed to continuously upgrading its competitive wearable chip solutions in collaboration with industry partners to enhance user experience [2] Group 2: Product Development and Market Trends - The BES2700 chip, used in smartwatches, can provide up to 100 hours of battery life, significantly reducing power consumption [2] - The company is exploring the integration of advanced features such as camera capabilities in wearable devices, aligning with market trends towards enhanced user interaction [2] - Hengxuan plans to introduce chips that support perception functions like imaging, in response to the rapid development of large language models [2] Group 3: ESG Performance and Employee Welfare - Hengxuan has been proactive in ESG initiatives, disclosing ESG reports for three consecutive years from 2021 to 2023 [3] - The company received a BBB rating in the ESG assessment, placing it in the top 10% among 5345 A-share listed companies [3] - Hengxuan ensures compliance with labor laws and provides comprehensive employee benefits, including social insurance and flexible working arrangements [3] Group 4: Financial Performance and Market Outlook - In Q1, the company achieved a revenue growth of 70.27% year-on-year, indicating a positive trend in financial performance [3] - The gross margin has stabilized and is expected to improve further with the introduction of new products and cost optimization efforts [3] - As of the end of Q1, the company's inventory stood at 644 million CNY, maintaining a reasonable turnover rate [3]