Broadcom Integration released a performance forecast, stating that the company expects to achieve a net profit attributable to shareholders of listed companies in 2020 to decrease by 204.39 million yuan to 220.17 million yuan compared with the same period of the previous year, a year-on-year decrease of 81% to 87%, and a profit of 252,370,200 in the same period last year yuan.

Broadcom Integration said that the decline in performance was mainly affected by its main business.

In terms of ETC chip products, driven by the policy of the Ministry of Transport and other departments to vigorously promote ETC installation, the company has a higher revenue and performance base for ETC chip products in 2019, and assisted the industry to achieve a higher ETC installation rate policy that year the goal. In 2020, due to the reduction in the size of the ETC after-installation market, the demand will slow down; and in the ETC front-installation market, according to policy requirements, new models will add ETC optional on-board devices from July 2020, and support ETC front-mounted chips from January 2021 However, due to the impact of the epidemic, the launch of the ETC pre-installation market has been delayed. Although the company's ETC front-mounted chip products have completed the vehicle regulatory test and certification, and have achieved mass production and sales, related front-mounted chip products have not yet brought the company's performance contribution in 2020. Therefore, in general, the company's sales of ETC chip-related products in 2020 decreased significantly year-on-year.

In terms of Wi-Fi chip products, with the company’s early R&D layout and market development, the company’s quarterly sales revenue of Wi-Fi chip products has increased rapidly since 2020, but related products are still in the climbing stage of improving operational efficiency. The effect has not yet been reflected, and the gross profit margin of related products in the previous period is not high. Therefore, although Wi-Fi chip products will increase revenue in 2020, their profit level is low. With the subsequent improvement of the company's internal operating efficiency and the iterative sales of Wi-Fi chip products that use more advanced processes, the gross profit margin of the company's Wi-Fi chip products is expected to improve. At the same time, as the company takes the lead in launching new Wi-Fi 6 products in the field of Internet of Things, the sales revenue and gross profit margin of Wi-Fi series products will continue to increase.

In terms of Bluetooth audio chip products, Broadcom Integration has invested more R&D and operation resources in ETC chip products in 2019 in order to cooperate with the policy goal of increasing the coverage of ETC. R&D iteration and market promotion rhythm have a certain impact. In order to cope with product competition and increase market share, the company has adopted a competitive price strategy for the previous generation of Bluetooth audio chip products in the Bluetooth audio chip market in 2020, and the gross profit margin of related products is low, which has lowered the company's gross profit rate. At present, the company’s more competitive new-generation Bluetooth audio TWS products have completed the R&D iteration and launched them to the market. The relevant new products have been introduced to many customers and achieved mass production and sales. It is expected that the gross profit rate will be higher and will continue to bring performance contributions, but TWS-related The new products are still in the market customer promotion and small-volume sales stage in 2020, and they have little contribution to the performance of the year.