On November 13, Canxin Co., Ltd. held its 2024 third quarter earnings conference, as reported by "Star Market Daily".

Canxin Co., Ltd. is a one-stop service chip design company that provides services from chip specification formulation, architecture design to finished chip products. In the first three quarters of this year, the company achieved revenue of 0.863 billion yuan, a decrease of 14.16% year-on-year; net profit attributable to the parent company was 81.97 million yuan, a decrease of 41.76% year-on-year.

In the third quarter of this year, the company's main revenue was 0.269 billion yuan, a decrease of 20.51% year-on-year; net profit attributable to the parent company was 1.5349 million yuan, a decrease of 95.22% year-on-year.

Regarding this, during the earnings conference, Chairman Zhuang Zhiqing of Canxin Co., Ltd. mentioned that the main reason for the revenue decline in the third quarter of the company was due to fluctuations in downstream customer demand; the decrease in profit was partially due to revenue fluctuations, and partly due to the growth in R&D investment in this period based on long-term development considerations.

The financial report shows that Canxin Co., Ltd. invested 0.111 billion yuan in R&D in the first three quarters, an increase of 47.56% year-on-year.

Zhuang Zhiqing mentioned that the company has established two core technical systems: large SoC customized design technology and semiconductor IP development technology. "High-speed interface IP, high-performance analog IP, and system-level chip platform are the company's current key research directions."

Reporters from "Star Market Daily" noted that Canxin Co., Ltd. has made new developments in the automotive electronics field.

"In terms of system-level chip platform development, the company has currently initiated projects for BLE+RF wireless microcontroller platform, automotive electronics controller SoC platform, and system-level automated testing platform solutions, and has implemented automated testing solutions for some subsystems," said Zhuang Zhiqing.

In August of this year, Canxin Technology passed the ISO 26262 functional safety management system certification. Zhuang Zhiqing told the Star Daily journalist that the company has established a process system for hardware design, software development, and project management of automotive-grade integrated circuits in accordance with the ISO 26262:2018 automotive functional safety requirements.

It is worth noting that from the end of each period from 2019 to 2023, the cash flow of the company has been positive. However, in the first three quarters of this year, its cash flow was negative. At the earnings conference, Canxin Technology's CFO Peng Wei stated that the increase in employee compensation and operating-related taxes was another factor leading to the outflow of cash.

Regarding the future market development, Canxin Technology's Chairman Zhuang Zhiqing stated that the continuous growth in customized chip demand has expanded the market space for the chip design service industry. With the gradual evolution of process technology, the increasing difficulty in chip design, rising chip production costs, increasing production risks, and longer design cycles, the market demand for chip design services is continuously increasing.

"In the future, the company will seize the industry development opportunities, rely on its own technological capabilities and stable high-quality customer base, and further increase research and development of new technologies and the exploration of new projects," said Zhuang Zhiqing.