Smart speaker, smart headset market drive, drive to profitable growth

Foreign investors issued reports, and they are optimistic that Zhisheng will benefit from smart speakers and more headsets. The electro-acoustic business is still driving a big momentum for revenue and gross profit growth this year. It is estimated that this year's revenue from electro-acoustic revenue will increase by 20% to 3%. According to the performance of NT$21,478 million in revenue in the first five months of this year, the year-on-year decrease of 2.4% shows that Electro-acoustics plays an important role in supporting revenue.

This year, Zhisheng’s growth momentum for electro-acoustic business includes more headset products, OEM orders growth, and Amazon’s two major customers, Amazon’s and Google’s smart speaker demand; among which, the world’s top five customers have already accounted for the proportion of Shengsheng’s revenue. From 60% to 70%, the gross margin of the electro-acoustic business is much higher than the average level of the company, driving profit growth.

On the other hand, Zhisheng also actively develops diversified businesses such as vehicle use and monitoring to make up for the gap in the decline of the mobile phone market in mainland China.

The mobile phone lens module (CCM) is also a major source of revenue, accounting for 20% to 30% of revenue. It focuses on the US and mainland mobile phone brands OPPO, Vivo, etc., facing the smartphone market tends to be saturated, and is actively optimizing Product portfolio, and shift resources to vehicle layout, with multi-lens becoming a trend of smart phones, this year's dual lens is expected to account for 20% to 25% of CCM revenue, better than last year's 20%, and strive for CCM's gross margin this year. Keep at 9% to 10% level.

In the automotive field, the current extension is still in its infancy. At the end of last year, it extended a total of US$48.1 million and acquired a 37% stake in Jieshen Electronics. It became the company's largest single shareholder and accelerated its deployment in automotive electronics. Vehicle market.

In terms of vehicle layout, the automotive lens module for advanced assisted driving system (ADAS) applications is seeking global OEM certification. Once it passes, it is expected to contribute revenue this year, and this season has been progressing to become a subsidiary. Investing in subsidiaries, with the expansion of vehicle use, it is estimated that vehicle revenue is expected to account for 5% in 2019 or 2010.

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