Sporton International Inc. · TPEX:6146
Sporton International — H1 2024 Earnings Presentation
36 slides from Sporton International's earnings presentation, 2024
Slide 1: Sporton International Inc.
SPORTON INTERNATIONAL INC. Finance Director - Grace Pan Special Assistant of the G.M. Office - David Chou Stock code 6146 TW
Slide 2: Outline
Outline 1 Industry Trends & Growth Momentum 2 Business Operation & Core Strengths 3 2024 1H Financial Analysis Report 4 Business Opportunities from Developing Technology 2
Slide 3: Industry Trends & Potential Growth Momentum
1 Industry Trends & Potential Growth Momentum 3
Slide 4: Industry Trends & Growth Momentum
Industry Trends & Growth Momentum 【Industry Trends】 "Hybrid AI is the future of artificial intelligence," according to Ziad Asghar, Senior Vice President of Product Management at Qualcomm Technologies. He believes that Hybrid AI is the emerging trend, where AI workloads are distributed and coordin
Slide 5: Large Language Model, LLM
Large Language Model, LLM Model Company Language Model Release Date Name Large Language OpenAI GPT-4 3/14/2023 Model(LLM) Large Language Meta Llama 2 7/19/2023 Model(LLM) Large Language Google Gemini 12/6/2023 Model(LLM) Small Language Microsoft Phi-2 12/13/2023 Model(SLM) ＊Microsoft has unveiled Ph
Slide 6: Smart Phone vs. AI Phone
Smart Phone vs. AI Phone Smart Phone AI Phone Platform LLM Apple iOS & Google Android OPEN AI GPT4 (Parameters too extensive.) Meta Llama 2 Google Gemini Nano Microsoft Phi-2 APP AI Application Apple App Store & Google Play OPEN AI GPT Store --- ??? --- ??? The main applications and industries it br
Slide 7: AI server computing vs. Edge AI computing
AI sever computing vs. Edge AI computing Current mode of operation for smartphones involves AI generation. H100 GPU GPT 3/4/5 have 175 billion to over 100 trillion parameters. AI sever computing AICG Applications: Various Generations Mobile chip + Built-in 7 to 10 billion parameters. LLM or SLM Meta
Slide 8: 2/3/4/5G vs. Killer Apps
2/3/4/5G vs. Killer Apps 2G 3G 4G LTE 5G AIOT 3.5G HSPA+ LTE Advanced 5G Advanced Hardware Application Voice call Voice call Voice call Voice call Data transmission: Data transmission: Data transmission: Browsing the internet, sending and receiving Browsing the internet, Browsing the internet, sendi
Slide 9: AIGC built in end product testing demand market trends
AIGC built in end product testing demand market trends 1. Chip spec continue to improve. Mobile chip • 1 billion parameters • 7 billion parameters • 13 billion parameters • 33 billion parameters • … • Chat GPT-3 175 billion parameters • … • … • Chat GPT-4 100 trillion Mobile chip parameters H100 GPU
Slide 10: 6GHz AFC (6SD) Technology
6GHz AFC（6SD）Technology Automatic Frequency Coordination (AFC) is a technology used to efficiently manage and allocate wireless spectrum, prevent interference, and ensure effective spectrum utilization. When devices operate in the U-NII-5 and U-NII-7 frequency bands, AFC ensures they do not interfer
Slide 11: 5G Advance & 6G
5G Advance & 6G The first of 5G Advanced standards is expected to complete in 2024. 6G is expected to be standardized starting from Release 21. The first of 6G standards may finalize in 2028, followed by continuous improvement. 11 Source: https://www.ericsson.com/zh-tw/reports-and-papers/white
Slide 12: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total Commercially available 2,741, 100% 2, 348, 85.6% Phones 1255 53.0% Fixed wireless access CPE 308 13.0% Modules 243 10.3% Industrial or Industrial or enterprise routers, gateways, enterprise routers, 179 7.6% gateways, or or modems modems
Slide 13: Business Operation & Core Strengths
2 Business Operation & Core Strengths 13
Slide 14: Business Operation
Business Operation 91% Testing and Certification Testing and Certification 1 Mandatory Regulatory Compliance Following the guidelines and rules set by government organizations to legally launch a product. EMC (Electro-Magnetic Compatibility) Safety Inspection of battery, smartphone, communications,
Slide 15: Business Operation
Business Operation Testing and Certification Testing and 91% Certification 91% 2 Conformance and Performance Testing and Testing specifications of communication Technical Certification protocols required by phone carriers. Comprehensive testing and certification for 2G, 3G, 4G, and 5G devices Testin
Slide 16: Business Capacity
Business Capacity With 113 major testing facilities, Sporton has the highest testing capacity in the world. 966 semi-anechoic chamber (US standard) Fully anechoic chamber (European standard) SAR testing (Specific Absorption Rate) OTA Antenna performance testing Your Text Here Your Text Here Your Tex
Slide 17: Core Strengths—Deliver Excellent Service
Core Strengths— Deliver Excellent Service Service location in California Germany testing site 1.International Certification Co.(ICC): ICC is a wholly owned subsidiary. Founded in 2013, it has been profitable since 2014. 2. Sporton ShenZhen was founded in 2017. The lab 17 specializes in IoT testing.
Slide 18: 5G NR Case Counts Published by FCC and NCC
5G NR Case Counts Published by FCC 5G NR Case Counts 2024 1H FCC 5G NR Published by NCC SPORTON + ICC 47 28% SGS 19 11% CAICT 12 7% HCT 11 6% SPORTON Morlab 9 5% UL 8 5% Eurofins SPORTON Element 7 4% Waltek 6 4% SGS DEKRA CHINA CERTIFICATION ICT CO., LTD 5 3% Bureau Veritas 5 3% CAICT Bay Area Compl
Slide 19: High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC
High-end Wi-Fi 6E/7 Devices Case Counts Published by FCC FCC Filling Projects (2024 1H) Master FCC Filling Projects(2024 1H) Master Device Client Device Sporton + ICC 32 43% Sporton + ICC 29 31% Element Materials Technology 13 14% MRT Technology (Suzhou) Co., Ltd. 17 23% Sporton + UL 10 11% Bureau V
Slide 20: Regulatory, OTA, Field Trial
Regulatory OTA RegulatoryAuthorities- Antenna Performance Testing CE/FCC/NCC o CTIA (Cellular Telecommunications and Internet Association) o Telecommunication Network Comprehensive Operators in Europe/North 5G NR Testing America Laboratories Field Trial FTA Worldwide Telecommunication Conformance Te
Slide 21: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Our company's Mr. Graham Harvey currently serves as the Chair of PTCRB Plenary Working Group. Institute of Electrical Cellular Third Generation Partnership Global Certification and Electronics Telecommunications a
Slide 22: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Certification Body National Certification Body International Laboratory Federal American Association for Accreditation Cooperation Communications Laboratory Mutual Recognition Arrangement Commission (FCC) Accredit
Slide 23: Major Competitive Advantages
7 Major Competitive Advantages 1. Designated laboratory for leading mobile phone and network communication manufacturers 2. Equipped with the latest 5G testing platform, continuously investing in funding and R&D 3. Largest 5G and network communication testing capacity in the world 4. Designated labo
Slide 24: Major Clients
Major Clients Qualcomm T=SLA amazon OO Meta G gl BE Microsoft CAA @ Verifone tv. ZEBRA nest ll! Otomtom : | . s OPTION intel fill Telit, Rockchia Ye SiERRA doo gy VERTU SONY MiITSUMI HUAWEI CPPO VIVO realme GIONEE @.... ZTE MEIZU Fibccom Haier MEI INGTEC/ QUIETER Foxconn FIH D-Link NTC a /SUS> GARMI
Slide 25: Environmental, Social, Governance
o Compared with 2021, in 2022, the electricity consumption Environmental reduced 0.68%; paper consumption reduced 42%, reducing 7.92t of CO2e. o Perspective Plan: Installing a solar electric system at Hwaya; Building rainwater collection or air-conditioning condensate recovery systems; replacing old
Slide 26: A Third-Party Testing Laboratory with Integrity
SPORTON: A Third-Party Testing Laboratory with Integrity We endeavor to deliver timely and accurate testing results for all of our clients. 26
Slide 27: For Those WITHOUT Integrity and Quality
For Those WITHOUT Integrity and Quality… X Fraudulent or non-compliant testing reports will increase the risk of being issued invalid certifications. X Disqualified products will impact clients’ product sales and consumer health. Recently, the Federal Communications Commission (FCC, US), National Co
Slide 28: 2024 1H Financial Analysis Report
3 2024 1H Financial Analysis Report
Slide 29: Consolidated Income Statement (2024 1H)
Consolidated Income Statement(2024 1H) 2024 / 2Q 2023 / 2Q 2024 1H 2023 1H YoY YoY Amount ％ Amount ％ Amount ％ Amount ％ Total Revenue 1,150,987 100 1,190,863 100 -3.35% 2,294,739 100 2,481,175 100 -7.51% Gross Profit 575,732 50.02% 641,255 53.85% -10.22% 1,129,726 49.23% 1,346,731 54.28% -16.11% Oper
Slide 30: Quarterly Revenue and Profit
Quarterly Revenue and Profit 14 70.00% 12 60.00% 10 50.00% 8 40.00% 6 30.00% 4 20.00% 2 10.00% 0 0.00% 2021/1Q 2021/2Q 2021/3Q 2021/4Q 2022/1Q 2022/2Q 2022/3Q 2022/4Q 2023/1Q 2023/2Q 2023/3Q 2023/4Q 2024/1Q 2024/2Q Total Revenue 10.09 10.4 11.64 11.08 12.35 12.79 13.16 11.86 12.9 11.91 11.96 11.56 1
Slide 31: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 3.23% 2.35% 8.20% 9.94% 8.65% 8.87% 8.22% 9.20% 5.10% 9.31% 10.93% 4.59% 4.68% 3.21% 3.11% 3.19% 3.25% 4.35% 23.50% 16.87% 13.93% 13.44% 18.46% 22.66% 20.72% 26.76% 63.20% 67.01% 68.37% 71.43% 71.76% 62.41% 62.71% 55.19% 2017
Slide 32: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 53.28% 48.59% 48.92% 50.03% 49.23% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 37.00% 36.68% 33.23% 33.84% 30.57% 31.46% 28.36% 28.42% 28.45% 27.86% 28.89% 25.58% 23.86% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024/1H Total R
Slide 33: EPS and Dividends during the last 12 years
EPS and Dividends during the last 12 years The company has consecutively earned more than one share capital for three years.In 2023, its after-tax earnings per share (EPS) was NT$14.32, and it distributed a cash dividend of NT$10.5 per share. 15.09 14.32 11.01 8.50 7.65 7.53 7.71 7.58 8.03 0.5 0.0 7
Slide 34: Business Opportunities from Developing Technology
4 Business Opportunities from Developing Technology
Slide 35: Next-generation mobile communication technology and application scenarios
Next-generation mobile communication technology and application scenarios 35
Slide 36: Thank You
THANK YOU Should you have any questions, please contact David Chou via email (davidchou@sporton.com.tw) Presentations over the years
Sporton International — H1 2024 Earnings Presentation on 6ix