Sporton International Inc. · TPEX:6146
Sporton International — Q4 2023 Earnings Presentation
37 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 2023 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 Generative AI applications such as Bing Copilot image generation, OpenAI Sora image generation, and AI mobile real-time translation will be processed through cloud servers for large-scale data generation using LLM databases, or through Edge AI edge
Slide 5: Question: What is an AI smartphone?
Question: What is an AI smartphone? "AI smartphone" refers to a smartphone equipped with powerful artificial intelligence (AI) capabilities. These phones not only feature AI chips but also integrate generative AI engines, enabling them to provide more intelligent and convenient functions across vari
Slide 6: 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 AI sever computing AICG Applications: Various Generations Mobile chip + Edge AI computing AICG Applications: Small-scale generation Source: nVIDIA · MEDIATEK · Qualcomm 6
Slide 7: The built-in AI in high-end smartphone chips vs Generative AI
The built-in AI in high-end smartphone chips vs Generative AI Dimensity 9300 Support running models with up to 1 billion, 7 billion, and 13 billion parameters, with a maximum of 33 billion parameters. A 7-billion-parameter large language model has been implemented on 5G smartphones. The 7-bill
Slide 8: 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 9: 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 10: 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. 10 Source: https://www.ericsson.com/zh-tw/reports-and-papers/white
Slide 11: Market statistics on 5G equipment and terminal products
Market statistics on 5G equipment and terminal products Total Commercially available 2,358, 100% 1, 964, 83.3% Industrial or Phones 1255 53.0% enterprise Fixed wireless access CPE 308 13.0% routers, gateways, Modules 243 10.3% or modems 7.6% Industrial or enterprise routers, 179 7.6% gateways, or mo
Slide 12: TLVR coupled inductors used in high-power AI servers
TLVR coupled inductors used in high-power AI servers According to industry analysis, due to the significant increase in power consumption, AI servers have higher inductance specifications, and the average unit price is about 5 times higher than that of ordinary servers. Due to the significant increa
Slide 13: Heavy Current testing - Ultra-large 10-meter anechoic chamber
Heavy Current testing－ Ultra-large 10-meter anechoic chamber EMC Testing （Electromagnetic Compatibility） Radiation measurement Conduction measurement Tolerability measurement 13
Slide 14: Business Operation & Core Strengths
2 Business Operation & Core Strengths 14
Slide 15: Business Operation
Business Operation 92% 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 16: Business Operation
Business Operation Testing and Certification Testing and 91% Certification 92% 2 Conformance and Performance Testing and Testing Technical specifications of communication Certification protocols required by phone carriers. Comprehensive testing and certification for 2G, 3G, 4G, and 5G devices Testin
Slide 17: 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 18: 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 18 specializes in IoT testing.
Slide 19: 5G NR Case Counts Published by FCC and NCC
5G NR Case Counts Published by FCC 5G NR Case Counts 2023 FCC 5G NR Published by NCC SPORTON + ICC 79 29.4% SGS + Compliance Certification 37 13.8% Services (Kunshan) Inc SPORTON UL Verification + UL Korea + UL Japan 33 12.3% + ICC PCTEST + Element Materials 21 7.8% SPORTON Eurofins CAICT + China Te
Slide 20: 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 (2023) Master FCC Filling Projects(2023) Master Device Client Device Sporton+ICC 40 40% Sporton+ICC 62 35% Element Materials UL 19 19% 17 10% MRT Sporton + Technology Bureau Veritas 16 16% ICC UL 17 10% MRT 11 11% Bureau B
Slide 21: 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 22: Actively Participating in International Standard-setting Conferences
Actively Participating in International Standard- setting Conferences – Core Strengths Standard-setting Civil Society Organizations Institute of Electrical Cellular Third Generation Partnership Global Certification and Electronics Telecommunications and Project (3GPP) Forum (GCF) Internet Associatio
Slide 23: 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 Conformitè Accreditation Cooperation Communications Laboratory Europëenne (CE) Mutual Recognition Arrangemen
Slide 24: Competitive Advantages
Providing 5G and telecommunication product 1 testing and certification services with the highest testing capacity in the world Designated testing laboratories by 2 5G and telecommunication chip manufacturers Competitive Designated testing laboratories by Advantages 3 top smartphone and telecommunica
Slide 25: Major Clients
Major Clients Qualcomm T=5LA amazon OO Meta Google BE Microsoft AA) @ Verifone \h. ZEBRA Honeywell nest ee Otomtom OPTION intel. LET QD il eit, rockchia vy s!sn59 sonim Cinterion doro VERTU Gntinental} SONY MITSUMI FUITSU TOL ETonepLus cooload WA Huawei CPPS VIVO @ Lenovo realme (gj GIONEE @.... ITE
Slide 26: 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 27: SPORTON: 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. 27
Slide 28: 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 29: 2023 Financial Analysis Report
3 2023 Financial Analysis Report 29
Slide 30: Consolidated Income Statement (2023 Q4)
Consolidated Income Statement(2023 Q4) 2023 / 4Q 2022 / 4Q 2023 1-4Q 2022 1-4Q YoY YoY Amount ％ Amount ％ Amount ％ Amount ％ Total 1,155,584 100 1,185,833 100 -2.55% 4,832,474 100 5,015,224 100 -3.64% Revenue Gross 581,860 50.35% 610,349 51.47% -4.67% 2,574,615 53.28% 2,758,049 54.99% -6.65% Profit Op
Slide 31: 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% 2020/1Q 2020/2Q 2020/3Q 2020/4Q 2021/1Q 2021/2Q 2021/3Q 2021/4Q 2022/1Q 2022/2Q 2022/3Q 2022/4Q 2023/1Q 2023/2Q 2023/3Q 2023/4Q Total Revenue 7.37 9.14 9.27 9.38 10.09 10.4 11.64 11.08 12.35 12.79
Slide 32: Revenue Breakdown
Revenue Breakdown Revenue Breakdown by region/department 4.39% 2.44% 2.59% 3.23% 8.20% 9.94% 8.65% 8.87% 8.22% 5.10% 9.31% 10.93% 4.59% 4.68% 3.21% 3.11% 3.19% 4.35% 23.50% 16.87% 13.93% 18.46% 22.66% 20.72% 26.76% 63.20% 67.01% 68.37% 71.43% 62.41% 62.71% 55.19% 2017 2018 2019 2020 2021 2022 2023 T
Slide 33: Return on Investment Analysis
Return on Investment Analysis 3G 4G/LTE 5G 55.00% 53.28% 48.59% 48.92% 50.03% 47.01% 47.03% 45.37% 45.95% 44.80% 44.13% 43.01% 37.00% 36.68% 31.46% 33.23% 30.57% 28.89% 28.36% 28.42% 28.45% 27.86% 25.58% 23.86% GPM exceeded 50% starting in 2021. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 34: EPS and Dividends during the last 12 years
EPS and Dividends during the last 12 years Three consecutive years of earning more than one unit of capital. In 2023, the after-tax EPS was 14.32 NTD. It is proposed to distribute a cash dividend of 10.5 NTD per share in 2023. 15.09 14.32 11.01 8.50 7.65 7.53 7.71 7.58 8.03 0.5 0.0 7.27 4.83 5.25 0.
Slide 35: Business Opportunities from Developing Technology
4 Business Opportunities from Developing Technology 35
Slide 36: Next-generation mobile communication technology and application scenarios
Next-generation mobile communication technology and application scenarios 2024~2028 Entering the 5G Advanced. Wi-Fi 7 products are quickly introduced into various terminal applications, and will become the mainstream specification in 2024. AI applications will quickly penetrate into various wireless
Slide 37: 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 — Q4 2023 Earnings Presentation on 6ix