More than just TWS, the three-dimensional layout of Zhongke Lanxun's products can be seen from the revenue structure and fundraising projects

 With Apple canceling the 3.5mm headphone jack, TWS Bluetooth headsets have officially entered the public eye. Under Apple's lead, major mobile phone manufacturers have followed suit, and the trend of smartphones without holes has intensified. At the same time, the acceleration of the 5G replacement wave has brought strong market demand for TWS wireless Bluetooth headsets.

In the early days of the TWS headset and Bluetooth speaker market, many companies have been attracted to join the market, and Zhongke Bluexun is one of the outstanding ones. With the balanced and comprehensive product performance and high cost-effectiveness of wireless audio SoC chips, the company has long been popular with customers. When the global shipments of TWS headsets are booming, it has ushered in the dividends of the market explosion, with rapid growth in product shipments and rising operating performance.

Gathering strengths and planning for the long term, working together for mutual benefit, the application of Zhongke Bluexun's products goes far beyond the field of TWS Bluetooth headset chips. The continuous development and improvement of wireless communication technologies such as Bluetooth and Wi-Fi have greatly improved the performance of wireless audio SoC chips, while also expanding the application scenarios of chips, further promoting the iteration and upgrading of products in the downstream IoT segmented application fields.

On the basis of consolidating its existing advantages in the TWS wireless headset market, Bluexun has been continuously expanding its product system, especially in non-TWS Bluetooth headset chips, Bluetooth speaker chips and other application areas. It has also launched a number of products. Bluexun, which has shined in non-TWS application areas, is continuing to bring surprises to the market.

Zhongke Lanxun's "long-term plan": three-dimensional product layout and multi-faceted business development

Since its establishment, Zhongke Bluexun has always focused on the design and development of low-power, high-performance wireless audio SoC chips. Its main products include TWS Bluetooth headset chips, non-TWS Bluetooth headset chips, Bluetooth speaker chips and other chips, which can be widely used in TWS Bluetooth headsets, neck-hanging headphones, headphones, business single-sided Bluetooth headsets, Bluetooth speakers, car Bluetooth speakers, TV speakers, smart wearable devices, Internet of Things devices and other wireless Internet terminals.

In a race of hundreds of boats, the one who paddles hardest will be the first to come out on top. With balanced and comprehensive product features, Bluesun's competitive advantages are becoming increasingly prominent. According to the "2020 Annual Report on TWS Headphones" released by a research organization, based on shipments, the company's market share of TWS Bluetooth headset chips in 2020 was 26%, ranking second.

In addition, Bluexun's AB530X series chips, AB535X series chips and AB537X series chips won the 14th, 15th and 16th "China Chip" Excellent Market Performance Products in 2019, 2020 and 2021 respectively. The relevant series of chips are widely used in Bluetooth speakers, Bluetooth headsets and other products.

Looking at the product and business development trajectory of Bluexun, although it has achieved impressive achievements in the field of TWS chips, it has not stopped at the achievements in a single field. With the gradual maturity of IoT technology, downstream application scenarios are also being continuously expanded. On the basis of deep cultivation in the field of wireless audio chips, Bluexun is also simultaneously expanding the application scope of its products. At present, some chip products have been applied to IoT products such as smart watches and smart car brackets. In December 2020, it won the "2020 China Internet of Things Technology Innovation Award" in one fell swoop.

Zhongke Lanxun's "strategy" goes far beyond this. It is understood that in the field of non-TWS Bluetooth headset chips, its products include AB532X, AB533X, AB535X, AB536X, AB537X and AB561X series, which can be used in neck-hanging headphones, headphones, and business unilateral Bluetooth headsets; in the field of Bluetooth speaker chips, the products involve AB530X, AB532X, AB536X and AB560X series, which can be used in Bluetooth speakers, smart speakers, TV speakers, car Bluetooth speakers and other fields; other chip products also cover many categories, such as AB530X, AB532X, AB536X, AB11X, AB10X, AB13X series, and the products are widely used in Type-C headphones, Type-C audio converters, USB microphones, wireless game controllers, Bluetooth adapters, Bluetooth transmitters, live sound cards, smartphone holders, general-purpose microcontrollers, blood oximeters, children's electric toys and other fields.

It can be seen that not only does Zhongke Bluexun have an absolute advantage in the well-known TWS business in the industry, but it is also shining in the non-TWS application field. The above product layout not only expands its product system, which can better meet the diverse needs of the downstream market with a richer and more three-dimensional system, but also helps its performance to achieve rapid growth through multiple means.

The prospectus shows that with its balanced and comprehensive product performance and high cost-effectiveness, Bluexun has quickly seized market share and its chip shipments have grown rapidly. From 2019 to the first half of 2021, Bluexun achieved operating income of 646 million yuan, 927 million yuan, and 597 million yuan, respectively; the corresponding net profits were 149 million yuan, 215 million yuan, and 141 million yuan.

While focusing on TWS Bluetooth headset chip products, other products also contributed equally to revenue. Among them, non-TWS Bluetooth headset chips accounted for 25.58%, 17.70% and 18.27% of revenue, Bluetooth speaker chips accounted for 34.92%, 33.17% and 40.81% of revenue, and other chip products accounted for 0.86%, 1.72% and 3.47% of revenue respectively.

上述产品的销量也呈逐年大幅增长趋势，近年来，非TWS蓝牙耳机芯片的销售数量分别为1.21亿颗、1.28亿颗和0.88亿颗；蓝牙音箱芯片销量分别为1.33亿颗、2.01亿颗和1.56亿颗；其他芯片销量也达到了278.78万颗、913.89万颗和1138.12万颗，2021年上半年增幅显著。

According to statistics from the Bluetooth Technology Alliance, global shipments of Bluetooth audio transmission devices reached 1.3 billion units in 2021, and are expected to further grow to 1.7 billion units in 2025, and will continue to grow steadily and rapidly in the future.

On the basis of consolidating its existing market share and advantages, since 2020, Zhongke Bluexun, whose products have been repeatedly recognized by the market, has further increased its efforts to expand terminal brand customers.

Specifically, its products have entered the audio supply chains of mobile phone brands such as Transsion and Meizu, Philips, Lenovo, Audio-Technica, Newman, Sansui, HiVi, Motorola, as well as the supply systems of e-commerce and Internet brands such as Himalaya, Baseus, boAt, iFlytek, Amoi, Aukey, NetEase, Changba, QCY, Tmall Genie, and Monster.

Under the favorable environment of China's integrated circuit industry and audio market, Zhongke Bluexun has seized the market trend and industry development opportunities in its layout and expansion of terminal brand applications. This is not only a deep integration of products and downstream industries, but also a wise move under the general trend. Zhongke Bluexun, which is committed to the "Bluexun Xunlong" series of high-end chips, will gradually increase the market share of terminal brand manufacturers through diversified brand and market layout on the basis of consolidating its existing market share, and forge ahead in the strategic vision of "well-known mobile phone brands + professional audio manufacturers + e-commerce and Internet companies".

“There will always be a time to ride on the wind and waves, and set sail to cross the vast ocean.” As AIoT technology gradually matures and its application areas continue to expand, in the future, Zhongke Bluexun will use Bluetooth, Wi-Fi, edge computing and other technologies to further expand the application areas of wireless audio chips to smart headphones, smart wearable devices, smart homes and other smart terminal devices, to achieve the interconnection of all things and smart interconnection.

Planned fundraising of 1.6 billion yuan: Helping product application areas to expand in multiple areas

The latest data from IDC shows that the shipment volume of Bluetooth headsets in China's market in 2021 was approximately 120 million units, a year-on-year increase of 21.1%; it is estimated that the shipment volume of Bluetooth headsets in China's market in 2022 will be approximately 130 million units, a year-on-year increase of 13.1%.

With the gradual upgrading of product technology, quality, design and other aspects, for most manufacturers, the entry-level market is undoubtedly an important part of ensuring the market shipment scale, and the flagship product layout in the mid-to-high-end market is also crucial to the future development of the brand.

The diversity of Bluexun's products is also reflected in its IPO investment projects covering many application fields. The prospectus shows that Bluexun plans to raise 1.6 billion yuan in this IPO, which will be used entirely for projects related to its main business. Among them, 415 million yuan will be used for smart Bluetooth audio chip upgrade projects, 188 million yuan for IoT chip product R&D and industrialization projects, 244 million yuan for Wi-Fi Bluetooth integrated chip R&D and industrialization projects, 248 million yuan for Bluexun R&D center construction projects, and 500 million yuan for development and technology reserve funds.

The first thing that needs to be emphasized is the smart Bluetooth audio chip upgrade project. The products of this project are smart Bluetooth headset chips and smart Bluetooth speaker chips. They will adopt a 22nm production process, equipped with a high-performance RISC-V instruction set architecture CPU, support Bluetooth 5.2 standards, and realize single-chip integrated full-mode Bluetooth functions such as classic Bluetooth, BLE, and LE Audio.