Fuhan has been investigated by 65 institutions： the robot is a promising field at present, and various robot products are in full bloom at present, but we are doing intensive research (with survey que

　　() The Record Form of Investor Relations Activities was released on October 30, and the company was investigated by 65 institutions on October 26, 2023. The types of institutions are QFII, insurance companies, others, fund companies, overseas institutions, securities companies and Sunshine private equity institutions. The main contents of investor relations activities are introduced:

　　Q: How much did the performance change in the third quarter contribute from this volume and price point of view?

　　A: Judging from the sales in the third quarter, it is basically the same as that in the second quarter. However, from the perspective of gross profit margin, there was an improvement in the third quarter, which came from the shipment of some unconventional products with high gross profit margin, so the level of gross profit margin was raised. In fact, the overall gross profit margin of conventional products was not significantly increased.

　　Q: Compared with Q2 in a single quarter, Q3′ s revenue is basically the same, but the gross profit is actually higher and the net profit is lower. What are the main expenses? Explain roughly?

　　A: The cost has increased by about 30 million yuan, mainly because the first one is doing R&D enhancement, and the R&D cost is about 17 million yuan higher, which is mainly due to the new streaming in the third quarter compared with the second quarter, and other new R&D expenses; In addition, the financial cost of more than 10 million yuan is mainly due to the interest payment of convertible bonds in the third quarter, and there is no such project in the second quarter.

　　Q: What is the current proportion of major customers and the subsequent trend of concentration?

　　A: In fact, the proportion of big customers in our revenue has gradually declined since the beginning of this year. There are two factors influencing this trend in the future: first, we are trying to explore new customers, and the increase of new customers will gradually reduce the proportion of big customers, which is a factor leading to the decline; In the second aspect, the innovative business of large customers is growing at a high speed outside the traditional business. In this respect, the company cooperates with large customers to expand various product lines, which will lead to an increase in the proportion of large customers. These two factors will offset each other. As for the change trend of concentration in the future, it depends on which of these two factors develops faster.

　　Q: What is the approximate planning rhythm for the follow-up new products of special product lines?

　　A: First, in some new industrial application directions, such as industrial vision and robot planning. Second, with the progress of the times, including the improvement of AI ISP technology, new technological progress has brought about product change trends, such as low power consumption, multi-purpose, AI codec and other emerging technologies, which are all new directions, and new technological changes will bring various terminal innovations.

　　Q: What do you think of the future development trend of the machine vision chip market, including the overall competition pattern now?

　　A: Machine vision is divided into two parts, one is industrial vision, which will come soon. We think it is a blue ocean from 0 to 1. At present, this stage is a replacement process of ASIC chip to FPGA, a general chip. When this replacement process happened, there were no competitors, and the threshold for entry was very high. It required not only the chip itself, but also the chip design company and the whole machine factory. Only when the customer has enough coverage and done enough projects can he put forward the demand for better ASIC chips. The ASIC chip with corresponding definition can face all kinds of scenarios. In the short term, this piece mainly depends on the expansion speed of ASIC chip scheme and our own research and development speed. At present, the robot is a promising field. At present, all kinds of robot products are in full bloom, but now we are doing intensive research on whether there is a special visual chip for robots that everyone can use. For example, industrial robots that can lift heavy things, such as lighter and smarter cooperative robots, such as handling in warehouses, your life in hotels, and the humanoid that everyone likes best, have different needs in various scenarios. What we are doing now is to first see if our existing chips, such as the one in the big model, can cooperate in this scenario. This is the first step, and if it can, it will be the fastest. The second is to make a trade-off for the new robot-specific chip. There are so many complicated scenes.So many complicated tasks, extract the greatest common divisor, estimate the number, think about the new chip product definition according to their greatest common divisor, and strive to make a universal visual chip that can adapt to all kinds of robots. At present, the market is very new, and the competition pattern is actually faster than anyone else, and this is a very high threshold, so it is not easy for anyone to enter this stadium.

　　Q: At present, what is the proportion of revenue in the first three quarters according to the downstream business areas?

　　A: Actually, it is still similar to the semi-annual report at present, which is about 75% for special purpose, 15% for general consumption and 10% for automobiles.

　　Q: Looking at the fourth quarter, should the approximate revenue share still be at this level?

　　A: Basically.

　　Q: What is the order situation in the fourth quarter at present?

　　A: Sales were relatively stable this quarter. Next year, the conference call of major customers will convey their ideas, that is, in PBG, the project started slowly due to financial pressure, but now, after many special bonds are issued, the funds will be in place and the project will start faster, and next year will be more promising. This is a special field; After the fourth quarter, including the consumer market situation next year, one is the demand recovery factor brought about by economic stabilization, and the other is that product innovation and technological innovation may have relatively high growth. Next year, you can look a little more optimistic.

　　Q: From the perspective of gross profit margin, look forward to the trend behind our gross profit margin.

　　A: Looking back, the gross profit should be a gradual recovery process, and then it should be gradually improved. As for the speed, we should observe the market.

　　Q: Are there any differences in product layout and industry positioning between the eyes core and friends we acquired?

　　A: First, let me introduce the Eye Core team. They used to make mobile phone SoC, and the shipment volume is very large. Generally speaking, the complexity of mobile phone SoC is basically the highest among chips at present, and it may take 40 to 50 functional modules to sum up. Therefore, the products are fully technical reserves based on their previous capabilities. What Eye Core is doing now are some high-end products. For example, the 8K NVR in our exhibition this time, the picture is very clear, the positioning is relatively cutting-edge, and the team goal is to specialize in industry-leading innovative products. It is not convenient for friends to evaluate more. At present, they are still in the stage of ensuring sales, so the positioning may still be a little different.

　　Q: Are we still talking about the wafer price? Is there room for further discussion?

　　A: Actually, we are also talking about it. The whole industry is relatively consistent. We focus on mature production capacity, and the production capacity is basically not a problem now. In terms of price, the price of Taiwan Province’s fabs is still relatively firm, while that of mainland fabs has been lowered. So far, the price of next year is predicted in this direction of relative stability. As for whether it will be lowered at that time, it is certain that there will be a clear result until Q1 next year.

　　Q: Is it convenient to introduce the current proportion of 28nm, 22nm and 12nm processes?

　　A: If the wavelength is 22 nm or 28nm, it is the same process node for us, that is, a relatively mature process. Our products are mainly based on mature processes, and the 12nm process is a new product, and the relative proportion is not too high.

　　Q: What is the inventory level of the company now? Industry situation?

　　A: Fuhanwei’s inventory has been very low in this round of down cycle, and it is even lower in the third quarter. The inventory of friends is probably still relatively high. Inventory differences also reflect the competitiveness of our products. There may be some differentiation among different enterprises in the subsequent development, and our situation may be optimistic. There are some new technological innovations in the industry. When the technological innovations are promoted widely enough, the pressure on old products is relatively high. Those old chips that have been in high inventory for a long time may have more and more limited competitiveness, which may bring inventory pressure and the like. This is the industry. However, on the whole, the industry inventory should be gradually removed.

　　Q: If the inventory of friends is relatively high, will it be cleared in the market, which will affect our overall price gross profit margin?

　　A: Actually, it happened last year, and it didn’t happen until the industry cycle reached this point. The chip is a product somewhat similar to fashion, and it may not be sold after it is out of date. But now a new wave of technological innovation in the industry is coming again. When new things come out, it is likely that outdated fashion will be on sale and no one will want it.

　　Q: If we look at the follow-up, the inventory level in the whole industry should still go down, and then the water level here is basically normal now?

　　A: As far as the normal level of our company is concerned, if we compare the industry horizontally, it is actually a very low level of the industry. In the future, if the inventory of Fuhanwei rises, it is not that the product backlog is not easy to sell, but that the company will predict the price increase of some raw materials and make some reserves in advance. Now the inventory is low to a certain extent. If we go up again, it is because the company actively increases the stock of some raw materials that may increase in price. In fact, the overall expectation for next year is quite optimistic. As we said, KGD may have the pressure of rising prices, so we may make some arrangements in advance.

　　Q: The operating cash flow in the third quarterly report is still quite good, mainly because the overall payment of product sales is better?

　　A: The products are easier to sell, the customer quality is higher, and the payment is normal.

　　Q: What about the overall impact of CMS chip and its progress?

　　A: CMS regulations were implemented on July 1, and now a small number of fastest-moving car manufacturers have introduced CMS models. When pushing, it is usually for young people’s models. At present, several models are gradually introduced. CMS is divided into two parts. The first one, which is outside the cabin and looks like two small eyes, is called electronic rearview mirror. There is also a car cabin, which splicing the images of electronic rearview mirrors into a complete image, called streaming media rearview mirror. Their pace of innovation is usually conservative, and car manufacturers usually stream media first, and then electronic rearview mirrors. The current progress is probably like this. Domestic streaming media rearview mirrors will have higher requirements, such as removing the headlights to highlight the reflection, zooming the image, shifting the image to the dead angle, etc. These functions all require higher chip solutions. At present, the company’s solutions should be relatively advanced in the industry, and some functions are unique to us. Basically, we are equipped with CMS models now, and if we use domestic chips, the high probability is ours.

　　Q: What is the overall progress of the vehicle code certification?

　　Answer: At the same time, do two car code certifications. The first one is functional safety ISO26262. If it is fast, it will be completed within this year. Another information security ISO21434 will be next year.

　　Q: What is the overall progress of DMS/OMS?

　　A: The market share of DMS/OMS is already relatively high, so it still depends on the improvement of the penetration rate of the whole market. According to the data of 22 years, the penetration rate of DMS is 2%~3%, and the penetration rate of OMS is lower. So what we are waiting for is an increase of 10 times the permeability. Looking around here, we have achieved some results this year. At present, many car manufacturers have started to ship in small quantities, and we expect to release a large number next year.

　　Q: Who are the major customers downstream of the on-board chips now?

　　A: We are considered as second-tier suppliers. We are mainly in contact with first-tier suppliers. First-tier suppliers are the innovative business of big customers’ cars and other automakers. As long as they have heard of brands in the market, they have basically reached them.

　　Q: Will the company continue to do equity incentives in the future, and will it consider repurchase?

　　A: Fu Hanwei is still in the stage of capital operation, and many things may come step by step, which is the first. The second equity incentive is very important for chip design enterprises. When it is done, it depends not only on whether it is suitable for the external environment, but also on whether it is suitable for the internal environment. It needs to wait until the time is ripe. Buy-back is actually an option that we have been paying attention to. The attitude of the company is open, and we have not said that we will definitely not do it, but we may have to wait for a mature opportunity.

　　Q: Will the return of friends affect the shipment of high-end XVR products?

　　A: For the high-end XVR, our 8K NVR has been shipped since the third quarter of last year, and it has reached millions, which can be said to be very good. At present, Fuhanwei may be a leader in the industry. In this area, we are not afraid of our competitors, but it is a goal that competitors need to surpass. Friends and businessmen are not convenient to evaluate.

　　Q: What’s the current progress on our MiPi APHY side? When is it expected to be? There will even be a rhythm of quantity?

　　A: It is progressing smoothly, and then MiPi APHY is regarded as a technological revolution in the field of vehicle transmission. We need to wait for a breakthrough opportunity, which head manufacturer may start to fully introduce this solution, and then everyone will follow up.

　　Q: In terms of specific parameters, what is its speed?

　　A: Theoretically, the faster data can reach 48G, and the commonly used serdes rate is 3G at present. But is it necessary to set the specification very high, and whether the customer will accept this price or not? All these need to be explored step by step in the subsequent development of this industry.

　　Q: Other companies that invest in this car serdes side may achieve, for example, 6-8 G’s, and even some companies seem to have 10 G’s. Compared with such a data, will the company’s current product planning, such as launching the first generation of products, be within such a data range?

　　A: At present, the fastest serdes of Maxim is six G’s. I don’t think it must be faster than it before I can use it. The technical parameters at the time of design need to be mass-produced before we know whether they can really be achieved. Many times, the final market acceptance of a chip should not only have a leading position in technical scheme, but also have a market acceptance, which should be viewed comprehensively.

　　Q: In the field of edge intelligence, such as consumption scenes or industrial scenes, will we have new application directions now?

　　A: Looking at the specific application scenarios from the edge, in the traditional scenario, because the downstream manufacturers are already very concentrated, once their supplier structure is determined, whoever has the advantage now will have the advantage in the future. Another consumer category, such as large models, is an electronic device with a slightly more expensive unit price at present, and may have the ability to increase large models in the future. At present, the company has invested heavily in the introduction of embedded teams and has begun to do Android solutions. In the future, Fuhanwei’s products will not only be used in traditional special fields, but also be used on all kinds of consumer Android devices, which will be a huge increment for us. In the future, we think there will be a lot of things on the edge. Under the current circumstances, the company has entered an Android market that it did not do before. This market may be much larger than our previous consumer market.

　　Q: Do you want to split the gross profit margin according to different product lines?

　　A: Generally speaking, because of the high threshold, the gross profit of the special category will be higher, the threshold of the consumer category will be lower, and there will be more competitors. Usually, the gross profit margin will be slightly lower, and the requirements of the car regulations will be higher. Then the threshold will be higher when producing, and the gross profit margin will be relatively higher. In short, at present, it may be that the car regulations are relatively high, the special ones are relatively high, and then the general ones are slightly lower than them.

　　Q: Should the gross profit of these product lines be relatively stable in the future?

　　A: Yes, because it mainly depends on the upstream and downstream structures, including the car and the dedicated one. The upstream and downstream structures are actually relatively stable, so the pattern is relatively stable. Although there are many people who are doing this piece of consumption at present, it is scattered, but we think that in the future, according to the scale effect of economic law, an oligopoly market will eventually be formed, but its market concentration is not as cruel as that in the special market, so only two or three companies may survive, and there may be more participants in consumption, but the pattern will still be stronger.

　　Q: This year as a whole, does the plan for the fourth quarter include the expansion plan of the R&D personnel company?

　　A: In fact, we have begun to do a counter-cyclical expansion within our power. For example, in addition to the cost of film streaming, the R&D expenses increased significantly in the third quarter, as well as the cost of R&D reserves and the expansion of R&D personnel. We are now vigorously recruiting experts. As long as you are talented, welcome to Fuhanwei, and the treatment space is not capped. We will continue to expand enrollment when the cash flow is good, the financial situation is good and the business situation is good.

　　Q: What is the impact of the big model?

　　A: It is expected that the equipment with a slightly higher unit price will have the ability to connect with a large model in the future. We are trying to promote the chip scheme of China Unicom’s large model FH8898 to various terminal manufacturers. Although the final product form, whether it will be a large model of a learning machine or a large model of a home robot will sell well, it is not known at present, but we will try our best to reach out to these customers and find out whether the existing chip and the existing scheme can cooperate well. This piece is a very big opportunity for us, and it is a cheap and good chip according to the shipment volume. So in the whole consumer market, we are a very strong competitor.

　　Q: What do you think of the trend of general products in the future?

　　A: There is a functional requirement called always online, which reflects the low power consumption in technology. This is a trend, which requires high design ability and even higher definition ability. The second AI technology is deeply penetrated. One of our more eye-catching products this year is AI ISP products. Under the Lux of 0.02, people’s eyes are all black, but AI ISP imaging is very clear. With the passage of time in the future, this function may be available on a better camera. Therefore, we are now in an era of new technological innovation. Recently, it has been observed that people like to use multi-eye stitching. At present, we have also introduced a camera called 2+1 at the exhibition. Its display effect can see a wide angle of view of 180 degrees. At the same time, there is also a camera that can track the target. It will have three lenses on a device, but it can be done with only one chip. This is the innovation of the product. Including we also showed an acoustic camera, which can quickly locate the sound position when talking in the environment, and focus the direction of that radio on your side and so on. There will be a lot of small product innovations in this area. The functional and trend things that were big before, such as low power consumption, always-on, AI penetration and so on, are the big directions.

　　Q: What are our product layout and future development ideas for special products?

　　A: There are two special products, one is called traditional special products, and the back end has been mentioned to a relatively advanced level. According to the technological changes of the times, the front-end also gradually launched products at that stage, which is a traditional business; There is also a new business, such as industrial vision, robotics and so on, which we think is very exciting, because from 0 to 1, not everyone has the opportunity to catch up, just because we have accumulated before, met this era, and have good customer cooperation, so we will try our best to achieve good results in this respect;

　　Details of participating institutions are as follows: