据悉，正是因为该公司Wi-Fi 7技术协议相关产品业务增长较快，所以康希通信今年前三季度实现营业收入3.78亿元，同比增长34.04%。但该公司前三季度归母净利润亏损3386.46万元。①With the deepening cooperation of SoC manufacturers, the overseas business is gradually opening up. In the first three quarters of 2024, the company's overseas revenue accounts for approximately 15% of total revenue; ②Star RF front-end solutions are mainly applied in various IoT directions, and the products have entered the reference design list of domestic SoC main chip manufacturers related to Star.
On November 11, the Kangxi Communication held its third quarter earnings conference for 2024.
Regarding the Wi-Fi 7 business, at the earnings conference, Ping Peng, Chairman and General Manager of Kangxi Communication, told the reporter of the 'Star Board Daily,' 'Benefiting from the company's early layout of Wi-Fi 7 product R&D, multiple related products have been launched. According to the sales structure, the sales proportion of the company's Wi-Fi 7 technology protocol products exceeds 25%, and new products will continue to be launched in the future, with the expected revenue proportion continuing to increase.'
It is reported that Kangxi Communication achieved revenue of 0.378 billion yuan in the first three quarters of this year, a year-on-year increase of 34.04%, mainly due to the rapid growth of the company's Wi-Fi 7 technology protocol-related product business. However, the company's net loss in the first three quarters was 33.8646 million yuan.
Regarding the decline in net income, Ping Peng explained during the earnings conference, 'The main reason for the decline in net income is that the company focuses on enhancing core competitiveness and increasing research and development investment.' As of September 30, 2024, the company has accumulated research and development expenses of 75.4618 million yuan.
Kangxi Communication's main business is the research, design, and sales of Wi-Fi RF front-end chips and modules. The company's products mainly include Wi-Fi FEM products such as the Wi-Fi 5 series, Wi-Fi 6/6E series, and Wi-Fi 7 series, as well as IoT FEM products.
The company's Wi-Fi 5 and Wi-Fi 6 product lines have achieved large-scale sales, with Wi-Fi 6 still being the company's mainstream product. Its Chairman and General Manager, Ping Peng, stated during the earnings conference, 'Regarding the company's Wi-Fi 6 FEM and Wi-Fi 6E FEM products, in terms of key performance indicators such as linearity and efficiency, they are basically equivalent to similar products from overseas leading manufacturers such as Skyworks and Qorvo. The performance of some medium-to-high-end models in linearity, efficiency, noise coefficient, and other aspects has reached an industry-leading level.'
'To cope with the intensification of international trade frictions and industry competition, the company has completed the layout of the domestic supply chain; at the same time, the company continues to optimize product performance, carry out product iterations, further reduce chip size to lower costs, and improve cost-effectiveness.' Ping Peng added.
Regarding overseas business, Kangxi Communication has had multiple Wi-Fi FEM products certified for reference design by several overseas SoC manufacturers. Kangxi Communication stated that as cooperation with SoC manufacturers deepens, the overseas business is gradually opening up, with overseas revenue accounting for approximately 15% of total revenue in the first three quarters of 2024, indicating a vast overseas market space.
In terms of Star Flash-related business, the company's chairman and general manager, PING PENG, revealed: "The Star Flash RF front-end solutions successively launched by the company are mainly used in broad IoT applications. The products have entered the reference designs of domestic Star Flash-related SoC core chip manufacturers, demonstrating the supply capability of accessories relevant to the Star Flash protocol. Recently, the company has increased the R&D investment in Star Flash products, aiming to introduce more products to the market as the Star Flash protocol continues to develop."
During the earnings conference, the latest developments in Kangxi Communication's patent litigation also drew the attention of investors present. Previously, a subsidiary of Kangxi Communication was subject to a 337 investigation by Skyworks. PING PENG commented, "The progress of the 337 investigation is currently in the evidence disclosure stage. Before the results of the 337 investigation are released, it will not significantly impact product expansion overseas. However, some overseas clients with potential cooperation intentions are currently in a wait-and-see mode."
