Beijing Junzheng's net profit in the first half of the year was 355 million yuan, an increase of about 30 times year-on-year

On August 30, Beijing Junzheng released its 2021 semi-annual report showing that revenue in the first half of the year was 2.336 billion yuan, a year-on-year increase of 558.46%; net profit was 355 million yuan, a year-on-year increase of 2994.8%; net profit after deducting non-recurring gains and losses was 337 million yuan, a year-on-year increase of 3132.18%.

Regarding the performance changes, Beijing Junzheng stated that in the first half of 2021, the market demand for the company's various product lines was strong, and the overall operating income showed a rapid growth trend, which led to the continued growth of net profit. At the same time, the company's inventory, fixed assets and intangible assets generated by the acquisition of assets have increased in value, and the depreciation and amortization of the assets have a total impact on the company's profit and loss in the reporting period of 36.5111 million yuan; at the Beijing Sicheng level, the intangible assets and fixed assets formed by the acquisition of ISSI have an impact of 30.6161 million yuan on its profits during the reporting period.

Beijing Ingenic is an integrated circuit design company. Since its establishment, it has continuously invested in embedded CPUs, video codecs, image signal processing, neural network processors, AI algorithms and other fields to form core technologies of independent innovation. Based on these core technologies, Beijing Ingenic has launched two product lines: microprocessor chips and smart video chips. Around these two product lines, it has developed corresponding software and hardware platforms and solutions to help customers quickly bring products to market.

In the first half of 2021, Beijing Ingenic's products have been recognized and adopted by more and more customers in the consumer market, including multiple brand customers including WYZE, Anker, Hualai, Xiaomi, Joan, 360, etc., as well as customers of operator systems such as China Mobile, China Telecom, and China Unicom have all adopted Beijing Ingenic's chip products.

In terms of technology research and development, Beijing Ingenic has multiple business product lines such as microprocessor chips, smart video chips, storage chips, analog and interconnect chips, and has independent and controllable core technologies in multiple fields such as CPU, AI, multimedia, SRAM, DRAM, Flash, Analog, MCU, Connectivity, etc. In the first half of 2021, Beijing Ingenic continued to carry out core technology research and development in various fields, improve its own technology reserves, and continuously develop and iterate new products.

Specifically for the project, Beijing Junzheng has optimized the XBurst2 CPU core and continued to promote the research and development of the RISC-V CPU core. It continues to promote the research and development and innovation of related technologies in the fields of video encoding and decoding, image signal processing, neural network processors, AI algorithms, etc., to improve technological leadership and enhance the accumulation of core technologies.

Beijing Ingenic's AI technology includes AI processor engines and algorithms. With the accumulation of algorithm technology, Beijing Ingenic's AI algorithm types are constantly enriched to meet customers' increasing market demands in the intelligent era. According to market development trends, Beijing Ingenic continues to accumulate technical development capabilities in high capacity, high performance and low power consumption in the storage business, and is committed to continuously improving product quality and optimizing costs.

In terms of production capacity, in the first half of 2021, Beijing Junzheng carried out the main construction work of the Hefei Junzheng Phase II R&D Building. Beijing Junzheng stated that the company strictly manages the relevant work of construction units, supervision units and other cooperative units to ensure the project quality of the building.