Q3
2022
REPORT
Contents
03
About
Espressif
04
Business 05 Financial Analysis
Highlights (Unaudited)
06
Management 06 Business Strategy 10 Developer Community
Report Contents
07 Core Technologies 11 Business Model
08 Key Products - IoT 12 Ownership of Securities
Chips
09 Applications 13 Risks and Uncertainties
14
Consolidated 14 Consolidated 17 Consolidated Cash
Financial Balance Sheet Flow Statement
Statements
(Unaudited) 16 Consolidated Income
Statement
18
Further 18 Terms and Conditions
Information of the Report
19 List of abbreviations
ESPRESSIF SYSTEMS | Q3 2022 REPORT | ABOUTABOUT ESPRESSIF
About Espressif
Espressif Systems is a public, multinational, fabless, semiconductor company focused on developing cutting-edge,
wireless-communication, low-power chipsets. By leveraging wireless computing, we provide green, versatile and cost-
effective AIoT solutions. We have accomplished a hardware-and-software, closed-loop development cycle for a series
of core technologies, including RF, Wi-Fi & Bluetooth LE network protocol stacks, RISC-V MCUs, AI instruction sets
and algorithms, operating systems, toolchains, compilers, IoT software application frameworks, Cloud, etc.
We have a diverse team of engineers from around the world. All company branches employ about 590 members of
staff from almost 30 countries and regions, +76% of whom are based in our Research & Development Department. We
have eight R&D centers in ve countries, including China (4 out of 8), India, the Czech Republic, Brazil and Singapore.
The company’s increasing reputation in recent years has been instrumental in attracting talented engineers from across
the world. Being united by our passion for technology, our diversity is our strength, as it allows the creative blending of
different kinds of knowledge, perspectives and ways of thinking.
1
global Wi-Fi MCU products distributed millions of users
market share* all over the world
Our R&D Centers
China
Shanghai Hefei
Suzhou Wuxi
Brazil India
Campinas Pune
Czech Singapore
Republic
Brno
* Market share data from TSR
3
ESPRESSIF SYSTEMS | Q3 2022 REPORT | BUSINESS HIGHLIGHTS (UNAUDITED)
Business Highlights (Unaudited)
Key Financial Data (Unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Consolidated Statement of Income Data
Revenue 335,492,468 347,432,238 949,311,349 978,035,081
Gross prot 133,299,795 139,743,608 380,143,573 395,986,598
Selling expenses 13,104,619 11,936,454 32,684,306 33,251,491
General and administrative expenses 17,068,928 16,344,353 44,022,027 40,961,149
Research and development expenses 86,731,045 67,959,102 239,185,604 187,048,192
Net income 20,572,966 46,647,343 83,848,190 148,168,183
Earnings per share:
Basic 1.0435 1.8504
Diluted 1.0435 1.8504
Sep 30, 2022 Dec 31, 2021
Consolidated Balance Sheet Data
Cash, cash equivalents and nancial investments 1,136,128,306 1,284,558,363
Working capital 1,724,007,188 1,749,605,271
Total assets 2,074,168,049 2,129,056,143
Long-term obligations 61,829,275 68,244,392
Total shareholders’ equity 1,816,066,745 1,823,017,913
Three Months Ended Nine Months Ended
Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Consolidated Cash Flow Data
Net cash ow from operating activities 20,360,925 56,603,174 -9,163,918 44,054,908
Non-GAAP Adjustment
Stock-based compensation 6,384,147 4,917,268 11,847,884 13,772,292
Non-GAAP net income 26,957,113 51,564,611 95,696,074 161,940,476
Key Financial Indicators (Unaudited)
Three Months Ended Nine Months Ended
Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Gross margin 39.73% 40.22% 40.04% 40.49%
R&D-to-sales ratio 25.85% 19.56% 25.20% 19.12%
EBITDA margin 9.35% 16.34% 11.05% 17.73%
Weighted ROE 4.59% 8.75%
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ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Financial Analysis
Espressif’s total revenue in the rst three quarters of the current scal year (2022) was CNY 949.31 million, marking a
decrease of 2.94% from CNY 978.04 million in the rst three quarters of 2021, due to the current ination-driven
recession and the consequent decline in consumer condence. Therefore, the net income was CNY 83.85 million,
which marked a decrease of 43.41% year-on-year, mainly due to our increased R&D expenditure.
The overall gross margin was 40.04%, in which the IoT chip gross margin was 48.18%. The overall gross margin
decreased, due to the increased proportion of module sales.
Customers in China’s mainland prefer purchasing chips, while the customers from the rest of the world prefer modules.
We keep the chip margin at a reasonable level, in order to support our future R&D expenditure.
Revenue by Revenue by Sales Top-5 Customer
Area in the First Three Mode in the First Three Concentration Rate,
Quarters of 2022 Quarters of 2022 2019 - Q3 2022
51.0%
42.2%
29.0%
60.0% 65.8% 25.8%
China's
Rest of
Direct Indirect 2019 2020 2021 Q1-Q3 2022
Mainland the World
Revenue by Product Category in the First Three Quarters of 2021-2022
Chip Module Others
2022 30.7% 68.6% 0.7%
2021 42.7% 55.7% 1.6%
Key Financial Indicators in the First Three Quarters of 2021-2022
2021 2022
49.7%
48.2%
40.5% 40.0%
36.2%
33.7%
25.2%
17.7% 19.1%
11.1%
7.6% 8.1%
Overall GM Chip GM Module GM EBITDA
SG&A as % of R&D as % of
Margin sales sales
5
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Management Report
Business Strategy
Espressif Systems’ business strategy emanates from our four key capabilities and our four key service/product areas.
More specically, our four key capabilities include Espressif’s connectivity and chip design, OS-level development,
software solutions, and our engagement with our ecosystem.
Our four key service and product areas include our development environment, software tools, cloud services, and
detailed documentation support. The above-mentioned structure ensures that our products are in the heart of
numerous commercial AIoT applications in different markets, including smart home, consumer electronics, industrial
automation, healthcare, etc.
IoT Overview
Apple Microsoft Internet
Amazon Google Xiaomi Baidu Alibaba Tencent More
HomeKit Azure Platforms
Smart Consumer Industrial Internet of Energy Business
Healthcare Education More
Home Electronics Automation Vehicles Management Applications
Open-source Social-Media Video-Sharing Developer
Techblog TPPS Books More
platforms Platforms Platforms Ecosystem
Cloud
Service
AI Speech AI Image Peripheral Connection Remote Software
Mesh More
Control Recognition Drivers Control Monitoring Solutions
Tools Software
Operating
ESP-IDF NuttX / Zephyr / Vela / OpenHarmony
Systems
Development
Environment
Wireless SoC RISC-V AI Accelerator Security Encryption Connectivity
Technology
&
Wi-Fi 4/Wi-Fi 6 BLE 5.0/BLE 5.2 Thread/Zigbee Chip Design
Documentation
6
ESPRESSIF SYSTEMS | Q3 2022 REPORT | CORE TECHNOLOGIES
Core Technologies
SoCs AI
ESP8266, ESP32, ESP32-S, AFE (Audio Front-End) Algorithms
ESP32-C and ESP32-H Series qualied as a“Software Audio Front-End
Solution” for Amazon Alexa Built-in devices.
Espressif offers integrated, reliable, and
energy-efcient wireless SoC for Wi-Fi, 3A Audio Algorithms
Bluetooth Low Energy, Thread and Zigbee
to various segments of the IoT market. including Acoustic Echo Cancelation (AEC),
Audio Noise Suppression (ANS) and Automatic
Gain Control (AGC), which signicantly reduce
noise and echo in calls, keeping high-quality
voice intercoms stable at all times.
OS
ESP-IDF
Espressif’s ofcial IoT Development Framework. Cloud
It provides a self-sufcient SDK for any generic
application-development on these platforms, ESP RainMaker
using programming languages such as C and A comprehensive, development-free and
C++. maintenance-free AIoT solution for private
Cloud deployment.
ESP-IDF currently powers millions of devices in
the eld, and enables building a variety of It is an all-inclusive solution that covers
network-connected products, ranging from everything from the underlying chip to device
simple light bulbs and toys to major appliances rmware, third-party voice-assistant
and industrial devices. integrations, mobile apps and the dashboard.
Customers can build their own AIoT devices
and ecosystem, with ESP RainMaker.
Software
With our open-source software, Matter
such as Espressif's IoT
Development Framework ESP-IDF,
Audio Development Framework One-stop Matter Solution
ESP-ADF, Mesh Development This is the culmination of
Framework ESP-MDF, Cloud Espressif’s ongoing contribution to
Connectivity Platform ESP the Matter platform in various
RainMaker, Facial Recognition areas, including protocol
Development Framework ESP- formulation, core stack
WHO, and Voice-Controlled implementation and certication
Assistant ESP-Skainet, we have test events.
developed a framework for
building AIoT applications, which
is both complete and innovative.
7
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Key Products - IoT Chips
Espressif is recognized as a market leader in the eld of Wi-Fi MCUs. We released our rst Wi-Fi MCU in 2014, and our
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 and a 2.4GHz
Wi-Fi 6 chip. In 2022, we released our rst 2.4 & 5GHz Wi-Fi 6 chip and our product range has expanded to Wireless
SoCs.
In fact, we have been constantly diversifying our product portfolio, introducing new solutions through our numerous
investments. Thus, we now have various product lines in all the main short-range connectivity technologies.
We also provide IoT modules based on our chips. The benet for customers is that they can get direct support from us,
shortening and optimizing their supply chain, even in case of chip shortages.
Dual-Core
ESP 32 ESP32 - S3
240 MHz 32-bit Xtensa MCU 32-bit Xtensa MCU | AI Functions
Wi-Fi 4 Wi-Fi 4
Bluetooth 4.2 Bluetooth 5 (LE)
ESP32 - S2 ESP32 - C5
Single-Core
32-bit Xtensa MCU 32-bit RISC-V MCU
240 MHz Wi-Fi 4 2.4&5 GHz Wi-Fi 6
Bluetooth 5 (LE)
ESP 8266 ESP32 - C3 ESP32 - C6
Single-Core
32-bit Tensilica MCU 32-bit RISC-V MCU 32-bit RISC-V MCU
Wi-Fi 4 Wi-Fi 4 2.4GHz Wi-Fi 6
160 MHz
Bluetooth 5 (LE) Bluetooth 5 (LE)
Thread
Zigbee
ESP32 - C2
Single-Core
32-bit RISC-V MCU
120 MHz
Wi-Fi 4
Bluetooth 5 (LE)
ESP32 - H2
Single-Core
32-bit RISC-V MCU
96 MHz Bluetooth 5 (LE)
Thread
Zigbee
2014 2016 2019 2020 2021 2022
8
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Applications
We sell our own IoT chips and modules, enabling the connectivity between various products, ranging from simple
devices -such as smart light bulbs- to complicated ones, such as robots. Our core connectivity chips are Wi-Fi MCUs
and Wi-Fi /Bluetooth LE (BLE) combo MCUs, which accounted for 99.3% of our revenue in the rst three quarters of
2022.
The market for Wi-Fi MCUs or Wi-Fi/BLE combo MCUs is truly diverse, including applications for smart homes (e.g.,
smart lights, air conditioners, ovens, coffee machines, etc.), consumer electronics (e.g., smart speakers, drones, etc.),
industrial automation (e.g., mechanical arms), healthcare (e.g., monitoring devices for diabetes, blood pressure,
COVID-19, etc.), energy control (solar energy devices, EV chargers, etc.), the internet of vehicles (OBD devices,
dashboards, etc.), education (talking pens, interactive whiteboards, etc.) and others, such as robots, wireless POS,
and asset trackers.
Consumer Industrial
Smart Home Healthcare
Electronics Automation
Smart Ovens Smart Speakers Mechanical Arms Medical Detectors
Energy Internet of
Education Other
Management Vehicles
Smart Solar
OBD Devices Talking Pens POS
Panels
9
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Developer Community Contents
ITEM Sep 30, 2022 Dec 31, 2021 change%
GitHub (Worldwide open-source development platform)
ESP32 Projects 38,735 29,007 34%
ESP8266 Projects 38,382 35,055 9%
Gitee (Chinese open-source development platform)
ESP32 Projects 2,836 2,592 9%
ESP8266 Projects 1,957 1,867 5%
CSDN (Chinese Tech-blog platform)
Search results for ESP32 90,046 79,188 14%
Search results for ESP8266 34,668 30,033 15%
Hackaday (open-source hardware platform)
ESP32 projects 4,462 3,816 17%
ESP8266 projects 6,027 5,789 4%
Reddit
ESP32 group members 55,956 46,540 20%
ESP8266 group members 57,527 53,523 7%
bilibili (Chinese video-sharing platform)
Ocial account followers 22,504 17,502 29%
Ocial account views 593,334 390,000 52%
YouTube
Ocial account subscribers 13,500 11,600 16%
Ocial account views 712,071 556,846 28%
ESP32 community videos 598,547 466,459 28%
ESP8266 community videos 740,284 687,155 8%
Views of most watched ESP32 community video around 3.0m around 1.5m
Views of most watched ESP8266 community video around 1.6m around 1.5m
N.B.：
Statistical data derived from dierent platforms may be based on dierent collecting methods. It is possible for certain platforms to modify their algorithms from
time to time and, therefore, impact the resulting statistical data. The above-mentioned data resulted from the Company’s research at the end of each quarter
reported here, unless otherwise stated.
The search results of the keyword "ESP32" include the ESP32 series, ESP32-C series, ESP32-S series, and ESP32-H series.
10
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Business Model
Business-to-Developer-to-Business (B2D2B)
Espressif has deployed the Business-to-Developer type of marketing, not only because it has gained prominence in
recent years, but also because it has proven to be more effective ever since the inuence of developers on
organizations of all sizes has gained traction. In other words, most developers are R&D employees in various
companies and bring about 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 grow
exponentially:
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 positive
feedback from happy customers/developers.
The above-mentioned interaction between people in our network prompts the creation of more content, which -in
turn- attracts more users/developers searching for new content.
Likewise, other third-party development platforms join our ecosystem and bring in new developers, as our inuence
continues to grow.
Having successfully applied the B2D2B model, Espressif can now focus on R&D investments, while maintaining a small
business team that supports a large number of customers directly. In fact, most of our revenue is gained through direct
sales.
11
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Ownership of Securities
Basic information of securities
Share types Ordinary share
Share capital 80,451,785 (as of Sep 30, 2022)
Listing Shanghai Stock Exchange (SSE)
Ticker 688018.SH
Listing Date 2019-07-22
Shareholder Structure as of Sep 30, 2022
Shareholder Share Numbers Percentage (%)
Espressif (Hong Kong) Investment Ltd. 34,860,000 43.33
Shinvest Holding Ltd. 2,804,446 3.49
Dajia Life Insurance Co., Ltd. – Universal Products 2,321,738 2.89
Yadong Beichen Investment Management Co., Ltd. 1,714,066 2.13
BOC - Franklin Templeton Sealand Fund 1,491,444 1.85
Ningbo Meishan Free Trade Port Le Tun Investment Management
1,046,030 1.30
Partnership (Limited Partnership)
China Resources SZITIC Trust - Broadvision Selection II Fund 725,500 0.90
China Resources SZITIC Trust - Broadvision Selection Fund 718,000 0.89
CITIC Securities Co., Ltd. 672,776 0.84
ABC - Franklin Templeton Sealand Fund 670,416 0.83
Top 10 shareholders 47,024,416 58.45
Other public shareholders 33,427,369 41.55
Total of outstanding shares 80,451,785 100.00
12
ESPRESSIF SYSTEMS | Q3 2022 REPORT | MANAGEMENT REPORT
Risks and Uncertainties
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 signicant
for any of the periods presented.
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
As the market for AIoT products grows, we face an increasing antagonism from
relatively large competitors, such as Realtek, MediaTek, Inneon, NXP, Qualcomm
and others. Intense competition from current players, as well as new entrants, may
reduce our product sales and market share.
Suppliers
A signicant portion of the Company’s products is fabricated by the Taiwan
Semiconductor Manufacturing Co. (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
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 25.8% in the rst three quarters of 2022, and it has been shrinking over the
years. None of the customers accounted for yielded more than 10% of our
revenue during the rst three quarters of the current scal year (2022).
13
ESPRESSIF SYSTEMS | Q3 2022 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Financial
Statements
(Unaudited)
Consolidated Balance Sheet (Unaudited)
CNY September 30, 2022 December 31, 2021
Assets
Current assets:
Cash and cash equivalents 261,678,313 367,149,078
Held for trading nancial assets 494,349,993 747,409,285
Notes receivable 6,385,040 11,600,177
Accounts receivable, net 265,977,618 306,823,758
Prepayments 9,532,875 8,172,703
Other receivables 11,353,169 9,519,869
Including: Interest receivable 2,624,444 298,796
Inventories 435,785,754 326,168,928
Other current assets 435,216,454 210,555,311
Total current assets 1,920,279,217 1,987,399,110
Non-current assets:
Investment in other equity assets 70,204,907 56,600,700
Fixed assets 52,605,949 46,176,368
Construction work in progress
Right-of-use assets 15,811,333 21,731,123
Intangible assets 2,607,071 3,191,335
Long-term deferred expenses 5,504,150 7,582,637
Deferred income tax assets 7,155,422 6,374,870
Total assets 2,074,168,049 2,129,056,143
0 0
14
ESPRESSIF SYSTEMS | Q3 2022 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheet (Unaudited)
CNY September 30, 2022 December 31, 2021
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable 107,382,873 138,572,198
Contract liabilities 11,978,936 17,184,196
Payroll payable 58,786,294 66,168,763
Taxes payable 7,044,400 6,472,494
Other payable 2,491,925 754,261
Non-current liabilities due within one year 8,587,601 8,641,928
Total current liabilities 196,272,028 237,793,839
Non-current liabilities:
Lease liabilities 8,361,447 12,116,036
Deferred income tax liabilities 53,467,828 56,128,356
Total liabilities 258,101,303 306,038,230
Owners’ equity (or shareholders' equity):
Share capital 80,451,785 80,158,963
Capital reserves 1,304,599,434 1,266,771,034
Less: Treasury stock 33,522,524
Other comprehensive income 17,613,222 -15,711,579
Surplus reserves 33,462,951 33,462,951
Retained earnings 413,461,878 458,336,543
Total shareholders’ equity 1,816,066,745 1,823,017,913
Total liabilities and shareholders' equity 2,074,168,049 2,129,056,143
15
ESPRESSIF SYSTEMS | Q3 2022 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Income Statement (Unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Revenue 335,492,468 347,432,238 949,311,349 978,035,081
Cost of Revenue 202,192,673 207,688,629 569,167,776 582,048,482
Gross Prot 133,299,795 139,743,608 380,143,573 395,986,598
Taxes and surcharges 2,080,094 443,583 3,827,043 2,297,329
Selling expenses 13,104,619 11,936,454 32,684,306 33,251,491
General and administrative expenses 17,068,928 16,344,353 44,022,027 40,961,149
Research and development expenses 86,731,045 67,959,102 239,185,604 187,048,192
Financial expenses -2,253,881 -1,721,904 1,012,633 -2,835,316
Including: Interest expenses 161,664 558,727
Interest income 829,660 2,478,839 2,368,282 4,822,367
Add: Other income 666,153 705,373 3,898,623 2,968,123
Investment income (mark"-" for loss) 7,110,887 5,994,838 17,596,549 15,901,973
Income from changes in fair value (mark"-" for loss) -631,226 -814,451 1,349,993 424,916
Credit impairment losses (mark"-" for loss) -231,635 -234,750 7,652
Assets impairment losses (mark"-" for loss) -331,229 59,841 -736,511 1,746,069
Assets disposal income (mark"-" for loss)
Operating Income 23,151,940 50,727,621 81,285,864 156,312,486
Add: Non-operating revenue 2,827 18,720
Less: Non-operating expenses 22,284 9,078 55,689 46,428
Income before income taxes 23,129,656 50,721,371 81,230,175 156,284,779
Provision (benet) for income taxes 2,556,690 4,074,028 -2,618,015 8,116,595
Net Income 20,572,966 46,647,343 83,848,190 148,168,183
Earnings per share
Basic 1.0435 1.8504
Diluted 1.0435 1.8504
Three Months Ended Nine Months Ended
CNY Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Net Income 20,572,966 46,647,343 83,848,190 148,168,183
Other comprehensive income (loss), after tax
Changes to the fair value of investment in other
-1,347,760 5,060 -1,280,620 -7,900
equity instruments
Currency translation reserves 15,116,842 1,521,674 34,605,421 -1,962,516
Other comprehensive income (loss) 13,769,082 1,526,734 33,324,801 -1,970,416
Comprehensive income 34,342,048 48,174,077 117,172,991 146,197,767
16
ESPRESSIF SYSTEMS | Q3 2022 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Cash Flow Statement (Unaudited)
Three Months Ended Nine Months Ended
CNY Sep 30, 2022 Sep 30, 2021 Sep 30, 2022 Sep 30, 2021
Operating Activities
Cash from sales of merchandise and provision of
353,024,916 368,291,665 1,069,255,332 1,028,017,977
services
Tax refund 9,534,652 6,465,341 37,477,287 29,960,122
Other received cash related to operational activities 620,848 3,344,547 13,416,056 7,973,659
Subtotal of cash inow from operational activities 363,180,416 378,101,553 1,120,148,675 1,065,951,758
Cash paid for merchandise and services 219,595,203 240,679,879 776,358,077 740,769,918
Cash paid to and for employees 71,251,555 49,619,695 242,018,321 175,023,040
Cash paid for taxes and surcharges 20,868,020 7,397,158 46,154,144 37,947,797
Other paid cash related to operational activities 31,104,713 23,801,646 64,782,051 68,156,096
Subtotal of cash outow from operational activities 342,819,491 321,498,379 1,129,312,593 1,021,896,851
Net cash provided by operating activities 20,360,925 56,603,174 -9,163,918 44,054,908
Investing activities
Cash arising from the disposal of investments 726,570,870 820,994,838 2,367,674,727 2,515,202,436
Cash arising from investment income 1,595,172 4,488,622
Net cash arising from the disposal of xed assets, intangible 1,898 7,408
assets and other long-term assets
Other received cash relating to investment activities
Subtotal of cash inow from investment activities 728,166,042 820,996,735 2,372,163,349 2,515,209,843
Cash paid for the purchase and construction of xed assets, 617,742 9,321,876 15,978,266 21,877,780
intangible assets and other long-term assets
Cash paid for investments 789,000,000 385,000,000 2,327,100,000 1,999,770,000
Other paid cash relating to investment activities
Subtotal of cash outow from investment activities 789,617,742 394,321,876 2,343,078,266 2,021,647,780
Net cash used by investment activities -61,451,701 426,674,860 29,085,083 493,562,064
Financing activities
Cash arising from the issuance of common stock 26,273,338 6,485,097
Including: Cash arising from subsidiaries absorbing
investments by minority shareholders
Subtotal of cash inow from nancing activities 0 0 26,273,338 6,485,097
Cash paid for the distribution of dividends and prots, or 128,722,856 40,015,250
payment of interests
Including: dividends and prots paid to minority
shareholders by subsidiaries
Other paid cash relating to nancing activities 37,955,764 1,831,772 39,960,171 6,894,214
Subtotal of cash outow from nancing activities 37,955,764 1,831,772 168,683,027 46,909,464
Net cash used for nancing activities -37,955,764 -1,831,772 -142,409,689 -40,424,367
Impact of uctuation in exchange rates on cash and cash 8,168,018 -1,664,316 17,024,110 -3,842,330
equivalents
Net increase in cash and cash equivalents -70,878,522 479,781,945 -105,464,413 493,350,275
Add: Cash and cash equivalent at the commencement
332,556,835 516,808,173 367,142,726 503,239,843
of the period
Cash and cash equivalents at the end of the period 261,678,313 996,590,118 261,678,313 996,590,118
17
ESPRESSIF SYSTEMS | Q3 2022 REPORT | FURTHER INFORMATION
Further Information
Terms and Conditions of the Report
Responsibility Statement
The Board of Directors, the Board of Supervisors and executive management of the Company warrant that the
contents of this report are true, accurate and complete, and do not contain any false information, misleading
statements or material omissions, severally and jointly accepting any legal responsibility thereof.
Shanghai, 28 October 2022
Espressif Systems
Board of Directors Board of Supervisors
Teo Swee Ann Lv Zhihua
Founder and Chairman Employee-elected
Ng Pei Chi Fu Hanyu
Shareholder-elected
Information Technology Ocer
Wang Yiwen
Teo Teck Leong Shareholder-elected
Shareholder-elected
Xu Xin Executive Management
Shareholder-elected
Teo Swee Ann
Lan Yuzhe Founder and CEO
Independent Director
Wang Jue
Koh Chuan Koon Deputy General Manager
Independent Director
PRESSIF
Shao Jingbo
ES
Lee Sze Chin Financial Director
Independent Director
Declaration
Forward-looking Statements SY
STE MS
This report contains forward-looking statements and/or assessments about the business,
nancial condition, performance and strategy of the Espressif Group. These statements and/
or assessments are based on assumptions and management expectations resting upon
currently available information and current estimates. These are subject to a multitude of
uncertainties and risks, many of which are partially or entirely beyond Espressif’s control.
Espressif’s actual business development, nancial condition, performance and strategy may,
therefore, dier from what is discussed in this report.
18
ESPRESSIF SYSTEMS | Q3 2022 REPORT | FURTHER INFORMATION
List of abbreviations
AI Articial Intelligence
AIoT Articial Intelligence and Internet of Things
Bluetooth LE Bluetooth Low Energy
CEO Chief Executive Ocer
CES Consumer Electronics Show
COVID-19 Coronavirus Disease-2019
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization
Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD.
ETF Exchange Traded Fund
G&A General and Administrative
GM Gross Margin
IC Integrated Circuit
IoT Internet of Things
OBD On-Board Diagnostics
POS Point of Sale
R&D Research & Development
RF Radio Frequency
RISC-V MCU Reduced Instruction Set Computer-V Microcontroller Unit
ROE Return on Earnings
RTOS Real-Time Operating System
SG&A Selling, General and Administrative
SH Shanghai
SoCs System on Chips
TPPS Third-Party Plugins
TSR Techno Systems Research
YoY Year-on-Year
19
Investor Relations
ir@espressif.com
Ofcial Platforms Social Media
www.espressif.com twitter.com/EspressifSystem
blog.espressif.com facebook.com/espressif
github.com/espressif linkedin.com/company/espressif-systems
esp32.com youtube.com/EspressifSystems
esp8266.com instagram.com/espressif_systems_ofcial
bbs.espressif.com bilibili.espressif.com
Copyright 2022 Espressif Systems (Shanghai) Co., Ltd. All rights reserved. All trade names, trademarks and registered trademarks
mentioned in this document are the property of their respective owners, and are hereby acknowledged. The term “Espressif” refers to
Espressif Systems (Shanghai) Co., Ltd. and/or its subsidiaries. This report is written in both Chinese and English. In case of any
discrepancies between Chinese and foreign interpretations, the Chinese version shall prevail.
Copyright (c) 2011-2012, Julieta Ulanovsky (julieta.ulanovsky@gmail.com), with Reserved Font Names ‘Montserrat’. This Font
Software is licensed under the SIL Open Font License, Version 1.1. This license is available with a FAQ at: http://scripts.sil.org/OFL
All amounts presented in these condensed Consolidated Financial Statements are shown in CNY unless stated otherwise. Slight
discrepancies between the amounts presented may occur due to rounding.
