Q1
2023
REPORT
Contents
03
About
Espressif
04
Business 05 Financial Analysis
Highlights (Unaudited)
06
Management 06 Business Strategy 11 Developer Community
Report Contents
07 Core Technologies 12 B2D2B Business Model
08 Key Products - AIoT 13 Ownership of Securities
Chips
09 AIoT Chip Matrix 14 Risks and Uncertainties
10 Market
15
Consolidated 15 Consolidated 18 Consolidated Cash
Financial Balance Sheet Flow Statement
Statements
(Unaudited) 17 Consolidated Income
Statement
19
Further 19 Terms and Conditions
Information of the Report
20 List of abbreviations
ESPRESSIF SYSTEMS | Q1 2023 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 600 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 | Q1 2023 REPORT | BUSINESS HIGHLIGHTS (UNAUDITED)
Business Highlights (Unaudited)
Key Financial Data (Unaudited)
Three Months Ended Fiscal Year
CNY March 31, 2023 March 31, 2022 2022
Consolidated Statement of Income Data
Revenue 318,117,442 288,948,065 1,271,127,201
Gross prot 129,518,046 118,589,940 508,251,068
Selling expenses 12,172,902 9,194,881 49,323,100
General and administrative expenses 13,915,033 13,404,541 59,639,944
Research and development expenses 85,483,014 74,848,290 337,121,814
Net income 31,087,430 27,852,092 97,323,103
Earnings per share:
Basic 0.3884 0.3475 1.2129
Diluted 0.3884 0.3475 1.2127
March 31, 2023 December 31, 2022
Consolidated Balance Sheet Data
Cash, cash equivalents and nancial investments 1,223,950,262 1,200,219,436
Working capital 1,441,639,623 1,518,383,808
Total assets 2,089,451,135 2,082,796,825
Long-term obligations 71,961,284 65,591,788
Total shareholders’ equity 1,855,848,707 1,826,677,535
Three Months Ended Fiscal Year
March 31, 2023 March 31, 2022 2022
Consolidated Cash Flow Data
Net cash ow from operating activities 33,293,443 -36,870,506 71,321,658
Non-GAAP Adjustment
Stock-based compensation 2,624,367 4,825,008 14,726,019
Non-GAAP net income 33,711,797 32,677,101 112,049,122
Key Financial Indicators (Unaudited)
Three Months Ended Fiscal Year
March 31, 2023 March 31, 2022 2022
Gross margin 40.71% 41.04% 39.98%
R&D-to-sales ratio 26.87% 25.90% 26.52%
EBITDA margin 10.82% 11.67% 9.29%
Weighted ROE 1.69% 1.51% 5.36%
4
ESPRESSIF SYSTEMS | Q1 2023 REPORT | BUSINESS HIGHLIGHTS (UNAUDITED)
Financial Analysis
Espressif’s total revenue in the rst quarter of the current scal year (2023) was CNY 318.12 million, marking an
increase of 10.10% from CNY 288.95 million in the rst quarter of 2022, due to the expansion of product categories.
Therefore, the net income was CNY 31.09 million, which marked an increase of 11.62% quarter-on-quarter, mainly due
to the increase of revenue.
The overall gross margin was 40.71% and remained stable. Customers in China’s mainland prefer purchasing chips,
while customers from the rest of the world and their OEM or ODM in China’s mainland prefer modules. We keep the
chip margin at a reasonable level, in order to support our future R&D expenditure.
Top-5 Customer
Revenue by Revenue by Sales
Concentration Rate,
Area in Q1 2023 Mode in Q1 2023
2020 - Q1 2023
42.2%
29.0% 30.8%
26.4%
69.5% 67.0%
China's
Rest of
Direct Indirect 2020 2021 2022 Q1 2023
Mainland the World
Revenue by Product Category in Q1 2023
Chip Module Others
Q1 2023 34.2% 64.6% 1.2%
Q1 2022 34.4% 64.9% 0.7%
Key Financial Indicators in Q1 2023
Q1 2022 Q1 2023
50.0%
48.4%
41.0% 40.7%
36.3% 36.7%
25.9% 26.9%
11.7% 10.8%
7.8% 8.2%
Overall GM Chip GM Module GM EBITDA
SG&A as % of R&D as % of
Margin sales sales
5
ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Management Report
Business Strategy
Espressif Systems’ business strategy emanates from our service/product areas and our engagement with the
developer ecosystem.
Our product and service areas include AIoT chips, OS-level development environments, software tools, application
solutions, and value-added services, such as Cloud and Matter. The above-mentioned products ensure that we are in
the heart of numerous commercial AIoT applications in different markets, including smart home, consumer electronics,
industrial automation, healthcare, etc.
Products Solutions Value-added services
Cloud
SoCs HMI Smart
Audio
service
Displays Solutions
Modules
Matter
Face
Low-Power
Solution
Recognition Solutions
DevKits
… …
OS-level development environments & software tools
Customers
Brands OEM/ODMs Module Houses Solution providers Makers
6
ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Core Technologies
SoCs AI
AFE (Audio Front-End) Algorithms
ESP8266, ESP32, ESP32-S, ESP32-
qualied as a“Software Audio Front-End
C, ESP32-H and ESP32-P Series Solution” for Amazon Alexa Built-in devices.
Espressif offers integrated, reliable, and
energy-efcient SoCs for Wi-Fi, 3A Audio Algorithms
Bluetooth Low Energy, Thread and Zigbee including Acoustic Echo Cancelation (AEC),
to various segments of the IoT market. 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 ESP RainMaker
application-development on these platforms,
A comprehensive, development-free and
using programming languages such as C and
maintenance-free AIoT solution for private
C++.
Cloud deployment.
ESP-IDF currently powers millions of devices in
It is an all-inclusive solution that covers
the eld, and enables building a variety of
everything from the underlying chip to device
network-connected products, ranging from
rmware, third-party voice-assistant
simple light bulbs and toys to major appliances
integrations, mobile apps and the dashboard.
and industrial devices.
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, One-stop Matter Solution
Audio Development Framework
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 | Q1 2023 REPORT | MANAGEMENT REPORT
Key Products - AIoT 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 2023, we revealed ESP32-P4, a dual-core RISC-V MCU, expanding the current portfolio to address the high-
performance computation needs of IO-Rich, HMI, and AIoT applications.
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 the main short- and medium-range connectivity technologies.
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 benet for customers is that they can get direct support from us,
shortening and optimizing their supply chain, even in case of chip shortages.
Wireless SoC
Medium Range Short Range
Wi-Fi 6E Bluetooth 5.3 (LE) Thread
5GHz Wi-Fi 6 Bluetooth 5.2 (LE) Zigbee
Connectivity
2.4GHz Wi-Fi 6 Bluetooth 5 (LE)
Technical Depth
Wi-Fi 4 Bluetooth 4.2
RISC-V MCU AI
32-bit Single-Core 96MHz Voice Wake-up
32-bit Single-Core 120MHz Voice Control
32-bit Single-Core 160MHz Face Recognition AI
Computing 32-bit Single-Core 240MHz
32-bit Dual-Core 400MHz
32-bit Multiple-Core
Technical Breadth
In progress
8
ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Key Products - AIoT Chip Matrix
ESP32 - P4
Dual-Core
32-bit RISC-V MCU
400 MHz AI Functions
H.264 encoding
ESP 32 ESP32 - S3
32-bit Xtensa MCU 32-bit Xtensa MCU
Dual-Core
Wi-Fi 4 AI Functions
240 MHz Bluetooth 4.2 Wi-Fi 4
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
32-bit Tensilica MCU 32-bit RISC-V MCU 32-bit RISC-V MCU
Single-Core
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 2023
9
ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Market
The market for wireless SoCs 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), 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.), the internet of vehicles (OBD
devices, dashboards, etc.), and education (talking pens, interactive whiteboards, etc.).
Consumer Industrial Smart
Smart Home
Electronics Automation Agriculture
Smart Ovens Smart Speakers Mechanical Arms Soil PH Detector
Energy Internet of
Healthcare Education
Management Vehicles
Smart Solar
Medical Detectors OBD Devices Talking Pens
Panels
10
ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Developer Community Contents
ITEM Mar 31, 2023 Dec 31, 2022 change%
GitHub (Worldwide open-source development platform)
ESP32 Projects 46,981 41,891 12%
ESP8266 Projects 40,813 39,294 4%
Gitee (Chinese open-source development platform)
ESP32 Projects 2,731 2,629 4%
ESP8266 Projects 1,914 1,868 2%
CSDN (Chinese Tech-blog platform)
Search results for ESP32 99,995 93,242 7%
Search results for ESP8266 38,177 36,286 5%
Hackaday (open-source hardware platform)
ESP32 projects 4,973 4,702 6%
ESP8266 projects 6,141 6,101 1%
Reddit
ESP32 group members 64,805 59,619 9%
ESP8266 group members 60,689 59,004 3%
bilibili (Chinese video-sharing platform)
Ocial account followers 25,520 24,064 6%
Ocial account views 712,303 658,235 8%
YouTube
Ocial account subscribers 16,058 14,800 9%
Ocial account views 914,099 810,523 13%
ESP32 community videos 736,932 641,926 15%
ESP8266 community videos 839,813 778,090 8%
Views of most watched ESP32 community video around 3.7m around 3.4m
Views of most watched ESP8266 community video around 1.7m around 1.6m
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.
11
ESPRESSIF SYSTEMS | Q1 2023 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 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 forth
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.
12
ESPRESSIF SYSTEMS | Q1 2023 REPORT | MANAGEMENT REPORT
Ownership of Securities
Basic information of securities
Share types Ordinary share
Share capital 80,492,619 (as of Mar 31, 2023)
Listing Shanghai Stock Exchange (SSE)
Ticker 688018.SH
Listing Date 2019-07-22
Shareholder Structure as of Mar 31, 2023
Shareholder Share Numbers Percentage (%)
Espressif (Hong Kong) Investment Ltd. 33,960,000 42.19
Dajia Life Insurance Co., Ltd. – Universal Products 2,602,353 3.23
Shinvest Holding Ltd. 2,546,100 3.16
ABC - Franklin Templeton Sealand Fund 1,784,545 2.22
Orient Securities -Zhonggeng Value Pioneer Fund 1,406,163 1.75
Ningbo Meishan Free Trade Port Le Tun Investment Management
1,046,030 1.30
Partnership (Limited Partnership)
CITIC Securities Co., Ltd. 781,410 0.97
China Resources SZITIC Trust - Broadvision Selection II Fund 711,000 0.88
ABC - Franklin Templeton Sealand Fund 705,538 0.88
China Resources SZITIC Trust - Broadvision Selection Fund 687,000 0.85
Top 10 shareholders 46,230,139 57.43
Other public shareholders 34,262,480 42.57
Total of outstanding shares 80,492,619 100.00
13
ESPRESSIF SYSTEMS | Q1 2023 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,
such as Silicon Labs and Nordic, may reduce our product sales and market share.
Suppliers
A signicant 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
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 30.8% in the rst quarter of 2023.
14
ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Financial
Statements (Unaudited)
Consolidated Balance Sheet (Unaudited)
CNY March 31, 2023 January 1, 2023 December 31, 2022
Assets
Current assets:
Cash and cash equivalents 324,630,351 350,677,354 350,677,354
Held for trading nancial assets 439,230,911 461,223,082 461,223,082
Notes receivable 2,742,270 789,099 789,099
Accounts receivable, net 227,751,114 198,406,116 198,406,116
Accounts receivable, nancing 6,460,424 1,441,520 1,441,520
Prepayments 10,240,868 9,724,045 9,724,045
Other receivables 9,735,746 9,578,753 9,578,753
Including: Interest receivable 1,693,509 838,168 838,168
Inventories 385,272,779 448,981,896 448,981,896
Other current assets 197,216,305 228,089,444 228,089,444
Total current assets 1,603,280,767 1,708,911,310 1,708,911,310
Non-current assets:
Debt investment 304,474,500 212,484,600 212,484,600
Investment in other equity assets 35,340,648 35,340,648 35,340,648
Other non-current nancial assets 19,879,347 19,879,347 19,879,347
Fixed assets 63,236,168 60,243,507 60,243,507
Construction work in progress
Right-of-use assets 23,860,940 21,692,767 21,692,767
Intangible assets 2,217,562 2,412,317 2,412,317
Long-term deferred expenses 7,826,380 6,565,887 6,565,887
Deferred income tax assets 29,334,823 18,987,186 15,266,444
Total assets 2,089,451,135 2,086,517,567 2,082,796,825
0 0
15
ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheet (Unaudited)
CNY March 31, 2022 January 1, 2023 December 31, 2022
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable 81,544,639 77,918,867 77,918,867
Contract liabilities 11,623,624 9,044,287 9,044,287
Payroll payable 33,662,927 85,041,335 85,041,335
Taxes payable 12,700,000 5,211,995 5,211,995
Other payable 9,534,556 2,925,552 2,925,552
Non-current liabilities due within one year 11,645,314 9,607,030 9,607,030
Other current liabilities 930,084 778,437 778,437
Total current liabilities 161,641,144 190,527,502 190,527,502
Non-current liabilities:
Lease liabilities 13,320,777 12,839,126 12,839,126
Provisions 603,625
Deferred income tax liabilities 58,036,882 56,473,404 52,752,662
Total liabilities 233,602,428 259,840,032 256,119,290
Owners’ equity (or shareholders' equity):
Share capital 80,492,619 80,484,430 80,484,430
Capital reserves 1,313,157,066 1,309,813,001 1,309,813,001
Less: Treasury stock 40,966,012 40,966,012 40,966,012
Other comprehensive income 11,677,862 16,946,374 16,946,374
Surplus reserves 46,570,910 46,570,910 46,570,910
Retained earnings 444,916,262 413,828,832 413,828,832
Total shareholders’ equity 1,855,848,707 1,826,677,535 1,826,677,535
Total liabilities and shareholders' equity 2,089,451,135 2,086,517,567 2,082,796,825
N.B.：
Starting from 2023, the company will implement the "Accounting Treatment for Deferred Income Tax Related to Asset and Liability Arising from a Single Transaction
That Does Not Qualify for Initial Recognition Exemption" as stipulated in Interpretation No. 16 of the Enterprise Accounting Standards issued by the Ministry of
Finance. The company will adjust the application of this standard to single transactions that occurred between the beginning of the earliest period reported in the
nancial statements and the date of the rst implementation of this standard. This includes adjusting the lease liabilities, right-of-use assets, estimated liabilities
related to disposal obligations and corresponding related assets that were recognized due to the application of this standard on the initial period reported in the
nancial statements when the standard was rst implemented. If there are temporary dierences that result in taxable or deductible amounts related to the above-
mentioned adjustments, the cumulative impact on retained earnings and other relevant nancial statement items at the beginning of the reporting period will be
adjusted according to the provisions of this standard and Enterprise Accounting Standard No. 18 - Income Taxes. So, the amount of deferred income tax assets of
January 1, 2023 exceeds the amount of December 31, 2022 disclosed in the 2022 annual report by CNY 3,720,742. The amount of deferred income tax liabilities is
also the same.
16
ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Income Statement (Unaudited)
Three Months Ended
CNY March 31, 2023 March 31, 2022
Revenue 318,117,442 288,948,065
Cost of Revenue 188,599,396 170,358,125
Gross Prot 129,518,046 118,589,940
Taxes and surcharges 1,786,501 518,433
Selling expenses 12,172,902 9,194,881
General and administrative expenses 13,915,033 13,404,541
Research and development expenses 85,483,014 74,848,290
Financial expenses -3,649,089 568,027
Including: Interest expenses 264,117 212,682
Interest income 2,014,022 696,647
Add: Other income 389,875 252,748
Investment income (mark"-" for loss) 6,258,547 3,180,588
Income from changes in fair value (mark"-" for loss) 7,829 3,076,241
Credit impairment losses (mark"-" for loss)
Assets impairment losses (mark"-" for loss) -938,171 -412,271
Assets disposal income (mark"-" for loss) 4,739
Operating Income 25,532,504 26,153,075
Add: Non-operating revenue
Less: Non-operating expenses 2,465
Income before income taxes 25,530,039 26,153,075
Provision (benet) for income taxes -5,557,391 -1,699,018
Net Income 31,087,430 27,852,092
Earnings per share
Basic 0.3884 0.3475
Diluted 0.3884 0.3475
Three Months Ended
CNY March 31, 2023 March 31, 2022
Net Income 31,087,430 27,852,092
Other comprehensive income (loss), after tax
Changes to the fair value of investment in other
-5,500
equity instruments
Currency translation reserves -5,268,512 -1,639,720
Other comprehensive income (loss) -5,268,512 -1,645,220
Comprehensive income 25,818,918 26,206,872
17
ESPRESSIF SYSTEMS | Q1 2023 REPORT | CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Cash Flow Statement (Unaudited)
Three Months Ended
CNY March 31, 2023 March 31, 2022
Operating Activities
Cash from sales of merchandise and provision of
316,945,873 392,796,778
services
Tax refund 22,390,791 27,316,374
Other received cash related to operational activities 6,144,834 9,288,587
Subtotal of cash inow from operational activities 345,481,498 429,401,738
Cash paid for merchandise and services 145,033,851 336,017,954
Cash paid to and for employees 134,472,294 107,719,618
Cash paid for taxes and surcharges 13,455,282 6,938,817
Other paid cash related to operational activities 19,226,628 15,595,855
Subtotal of cash outow from operational activities 312,188,056 466,272,244
Net cash provided by operating activities 33,293,443 -36,870,506
Investing activities
Cash arising from the disposal of investments 817,734,181 833,768,443
Cash arising from investment income 1,754,367 1,427,583
Net cash arising from the disposal of xed assets, intangible assets and other long-term 17,850
assets
Other received cash relating to investment activities 311,000
Subtotal of cash inow from investment activities 819,817,397 835,196,026
Cash paid for the purchase and construction of xed assets, intangible assets and other 14,725,260 12,606,551
long-term assets
Cash paid for investments 863,000,000 755,100,000
Other paid cash relating to investment activities 300,000
Subtotal of cash outow from investment activities 878,025,260 767,706,551
Net cash used by investment activities -58,207,863 67,489,475
Financing activities
Cash arising from the issuance of common stock 727,886 20,316,335
Including: Cash arising from subsidiaries absorbing investments by minority
shareholders
Subtotal of cash inow from nancing activities 727,886 20,316,335
Cash paid for the distribution of dividends and prots, or payment of interests
Including: dividends and prots paid to minority shareholders by subsidiaries
Other paid cash relating to nancing activities 3,331,678 1,236,611
Subtotal of cash outow from nancing activities 3,331,678 1,236,611
Net cash used for nancing activities -2,603,791 19,079,723
Impact of uctuation in exchange rates on cash and cash equivalents 1,471,208 -2,226,953
Net increase in cash and cash equivalents -26,047,003 47,471,739
Add: Cash and cash equivalent at the commencement
350,677,354 367,142,726
of the period
Cash and cash equivalents at the end of the period 324,630,351 414,614,465
18
ESPRESSIF SYSTEMS | Q1 2023 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 April 2023
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.
19
ESPRESSIF SYSTEMS | Q1 2023 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
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization
Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD.
GM Gross Margin
IC Integrated Circuit
IoT Internet of Things
OBD On-Board Diagnostics
ODM Original Design Manufacturer
OEM Original Equipment Manufacturer
R&D Research & Development
RF Radio Frequency
RISC-V MCU Reduced Instruction Set Computer-V Microcontroller Unit
ROE Return on Earnings
SG&A Selling, General and Administrative
SH Shanghai
SoCs System on Chips
TSR Techno Systems Research
20
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 2023 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.