CONTENTS

ESPRESSIF SYSTEMS Q3 2026 REPORT

Contents

Management Report （Continued）

About Espressif 03

Facts About Espressif 03

Developer-Centric Platform Strategy 14 Developer Community Content 15 Ownership of Securities 16 Risks and Uncertainties 17

Key Technologies 04

Core Competitiveness 05

Consolidated Financial Statements

Business Highlights

18

06

(Unaudited)

Key Financial Data (Unaudited) 06 Key Financial Indicators (Unaudited) 06 Financial Analysis 07

Consolidated Balance Sheet 18 Consolidated Income Statement 20 Consolidated Cash Flow Statement 21

Management Report

09

Further Information 22

Product Positiong 09 Key Products - Chip Matrix 10 Product Market Tenure 11 Key Products - M5Stack Development Kits 12 B2D2B Business Model 13

Terms and Conditions of the Report 22 List of abbreviations 23

Facts About Espressif

Espressif Systems (SSE: 688018.SH) is a leading fabless semiconductor company providing wireless connectivity and edge intelligence solutions for IoT devices. The Company has expanded beyond chip supply to become a platform enabler for hardware digitalization and intelligent transformation, supported by an integrated combination of silicon, software, tools, and ecosystem resources.

Built around the ESP32 product family, which has emerged as a preferred and highly recognizable platform among global developers, Espressif has established strong ecosystem momentum. A large and active developer community, thousands of third-party software components, and long-term platform continuity drive sustained adoption.

Through this ecosystem-led approach, Espressif enables customers to build, scale, and continuously evolve intelligent hardware products, positioning the Company to capture durable value as hardware digitalization and intelligence continue to deepen globally.

1.5 Billion+

Global IoT Chip Shipment (Cumulative)

Global Leader

In Wi-Fi MCU Market

230+ Patents

In AIoT Technology

10,000+

Satisfied Customers Worldwide

3 Million+

Active Ecosystem Developers

Developer Growth

Developer Flywheel Moredevelopersjoin, learn, and build with Espressif solutions.

Ecosystem Expansion

Application Innovation

Developers create innovative applications and solutions across diverse use cases.

The ecosystem grows with more partners, tools, and integrations, enabling greater possibilities.

Enterprise Adoption

Enterprises adopt Espressif's platform to commercialize and scale these innovations.

As a global semiconductor innovator, we deliver high-performance RISC-V SoCs and comprehensive solutions with integrated AI, in-house operating system, robust security, and seamless cloud integration—shaping the future of smart, connected systems.

Al Agent Edge Al Co-processor Mesh Wi-Fi Sensing HMI Multimedia Cloud & Matter Security

Cloud & Ecosystem

AI

AI & IoT SDK

ESP-CLAW

ESP-VISION

ESP-SR

Edge AI Agent Framework

Low-Code Edge AI

Speech Recognition

ESP-WHO

ESP-DL

ESP-NN

Computer Vision

Deep Learning

Neural Network Library

IoT

ESP-Brookesia

ESP-GMF

ESP-loT-Solution

Al-Powered Ul Framework

Audio&Video Processing

Peripheral Integration

Operating System

In-House

ESP-IDF

Compilers & Tool Chains

Official loT OS

Third-Party

IC Design

Connectivity

Wireless Communication Wi-Fi 7/6E/6 | 2.4/5/6 GHz Tri-band Bluetooth 6 (LE)｜Bluetooth Classic (BR/EDR)

IEEE 802.15.4 High-Speed Data Transmission 160 MHz Channel Bandwidth｜1024-QAM｜2x2 MU-MIMO

Computing

Core

32-bit RISC-V AI FPU | Instruction Set Extensions Multimedia ISP | H.264 Encoder | JPEG Codec High-Speed Interfaces PCle | DDR | USB

CORE COMPETITIVENESS ESPRESSIF SYSTEMS Q3 2026 REPORT

Brand Awareness

The ESP32 and Espressif brands have a strong sense of recognition among users. This recognition has become a key factor in our competitive advantage and success. Users identify with the ESP32 brand due to its reliability, performance, and versatility, which have been proven across various applications and industries. This strong brand awareness not only fosters customer retention but also attracts new users, thereby solidifying Espressif's position in the market.

Exceptional IC Design Capability

Espressif independently designs and develops its own chip products, with core IPs being self-developed. These chips are equipped with rich features, ensuring that Espressif’s products stand out in the market and avoid the pitfalls of homogenized competition. By controlling the entire design process, Espressif can innovate rapidly and introduce unique functionalities that set our products apart from competitors, providing a distinctive edge in the IoT semiconductor industry.

Full-Stack Engineering Capability

Espressif possesses comprehensive engineering development capabilities that span from IP development to complete chip design, operating systems, firmware, software frameworks, application solutions, hardware design, edge AI, cloud, and apps. This full-stack engineering expertise allows Espressif to offer highly integrated solutions that meet a wide range of customer needs. The ability to control and optimize every layer of the technology stack is unique in the industry and enables Espressif to deliver superior products and services that are seamlessly integrated and highly efficient.

Superior Cost-Effective and Stable Support

Espressif's products are known for their high performance and low cost, making them competitive in the market. We provide the cost efficiency necessary to promote large-scale commercialization in downstream industries. Additionally, we ensure the long-term availability of our products and offer stable and enduring software support, ensuring that customers can rely on their investments for extended periods. This commitment to value and reliability strengthens customer trust.

Extensive Developer Community Support

Espressif has garnered support from a vast community of professional engineers who are familiar with Espressif's development platform and actively promote its value proposition. This large and engaged community not only aids in the rapid adoption and dissemination of Espressif’s technologies but also contributes to continuous improvement through feedback and shared knowledge. The robust community support amplifies Espressif's market presence and enhances our reputation as a trusted and innovative leader in the industry.

Business Highlights (Unaudited)

Key Financial Data(Unaudited)

Three Months Ended Nine Months Ended CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025 Consolidated Statement of Income Data

Revenue 889,277,202 666,706,221 2,369,988,496 1,912,247,017 Gross profit 454,085,724 319,845,390 1,184,340,680 882,881,140 Selling expenses 27,192,217 21,202,823 75,127,957 59,114,434 General and administrative expenses 25,023,192 24,222,903 72,425,306 62,091,408 Research and development expenses 188,725,772 155,163,791 518,391,823 423,408,329 Net income 220,015,954 116,499,045 555,294,495 379,538,810 Net income attributable to Espressif 218,695,118 115,500,538 552,921,175 376,762,715

Earnings per share:

Basic 2.3673 1.7343 Diluted 2.3673 1.7343

Consolidated Cash Flow Data Net cash provided by operating activities 245,874,272 195,644,872 318,320,784 310,067,697

Sep 30, 2026 Dec 31, 2025 Consolidated Balance Sheet Data

Working capital 3,393,101,701 3,518,352,994 Total assets 5,258,889,142 5,047,755,518 Long-term obligations 163,620,528 141,345,125 Total shareholders’ equity 4,666,499,279 4,489,877,928

N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2026, the earnings per share for each reporting period have been recalculated based on the adjusted share count.

Key Financial Indicators(Unaudited)

Three Months Ended Nine Months Ended

Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025

Gross margin 51.06% 47.97% 49.97% 46.17% R&D-to-sales ratio 21.22% 23.27% 21.87% 22.14% Net income margin 24.74% 17.47% 23.43% 19.85% Weighted ROE 11.84% 15.93%

Number of Espressif employees 995 878 Stock-based compensation 15,668,970 11,339,881 43,735,924 30,130,386

BUSINESS HIGHLIGHTS ESPRESSIF SYSTEMS Q3 2026 REPORT

Financial Analysis

Revenue Overview:

Revenue for the first three quarters reached CNY 2.37 billion, representing a YoY increase of 23.9%. Thirdquarter revenue came in at CNY 889.28 million, up 33.4% YoY and 6.8% QoQ.

Although global smart home demand moderated to single-digit growth amid a challenging macroeconomic environment and ongoing geopolitical uncertainties, Espressif continued to benefit from the diversification of its application portfolio. Non-smart home segmentsincluding industrial automation, smart agriculture, energy management, and AI-driven developer and innovation activities—continued to deliver solid growth.

Quarterly Revenue Seasonality

CNY Million

FY2021 FY2022 FY2023 FY2024

FY2025 FY2026

1,000

800

600

400

200

Q1 Q2 Q3 Q4

Driven by robust community support and effective technical marketing, our direct sales share has exceeded 71%, making us unique among semiconductor peers. Furthermore, our customer concentration continues to decline, reflecting a healthier and more diversified revenue structure.

Revenue by Area:

• • China’s Mainland revenue saw a 38.5% YoY growth and a 8.4% QoQ increase for the third quarter, bringing the first three quarters' cumulative YoY growth to 21.0%.
• • Overseas revenue grew 23.1% YoY and a 3.2% QoQ increase for the third quarter, bringing the first three quarters' cumulative YoY growth to 30.9%.

Revenue by Area in the First Three Quarters of 2026

68.4%

China's Mailand Rest of the World

Revenue by Sales Mode in the First Three Quarters of 2026

71.7%

Direct Indirect

Top-5 Customer Concentration Rate, 2022 - Q3 2026

28.1% 26.4%

23.9%

22.3%

20.7%

2022 23 24 25 26 Q1-Q3

Financial Analysis (Continued)

Revenue by Product Category:

• • Chips: Revenue for the first three quarters grew by 10.4% YoY, reflecting steady demand from the customer base that prefers direct chip-level design and in-house hardware development.
• • Modules & Development Kits: Revenue for the first three quarters grew by 32.5% YoY, as the IoT ecosystem continues to mature. An increasing number of customers are choosing pre-certified module solutions to simplify hardware development, shorten product development cycles, and concentrate engineering resources on software, AI, and application innovation.

Revenue by Product Category in the First Three Quarters of 2026

Chip Module & DevKits

Others

| |

|---|

• 2025 Q1-Q3 0.7%

• 2026 Q1-Q3 64.8%

38.7%

60.6%

34.5%

0.7%

Profitability & Resilience: Net income attributable to shareholders reached CNY 552.92 million, representing a 46.8% year-on-year increase, outpacing revenue growth. Despite a softer market environment, the Company continued to demonstrate strong operational resilience through sustained margin expansion, diversified end-market exposure, and continued execution of its long-term growth strategy.

R&D investment: R&D expenses increased by 22.4% YoY, primarily driven by higher R&D headcount and employee compensation. The increase reflects the Company's continued investment in expanding its technology capabilities in response to the industry's evolution from basic IoT connectivity toward intelligent edge computing and Physical AI applications.

Cash Flow & Inventory: During the reporting period, memory prices increased and procurement lead times extended. To secure supply and ensure stable production and deliveries, the Company strategically increased inventory reserves. Consequently, inventory rose by CNY 291.71 million compared with the end of 2025, which was the primary reason why net cash generated from operating activities stood at CNY 318.32 million, lower than net profit. This deliberate working capital investment is expected to normalize as supply chain conditions stabilize.

ROE & Capital: The decline in ROE was a result of capital dilution following the new share issuance completed in the end of September 2025, rather than a shift in underlying profitability.

Key Financial Indicators in the First Three Quarters of 2026

2025 Q1-Q3 2026 Q1-Q3

Overall GM Selling Exp. % G&A % R&D % Net Income Margin

ROE (Q1-Q3)

From Connectivity to AI

Espressif’s Product Positioning Across Device Evolution

Low High

System Integration / Capability

Value

Passive Active

Interaction

Unified Developer Ecosystem across all segments

The Company's product roadmap is structured around four application-oriented capability layers: Basic IoT,

Systematic Connectivity, Interactive Devices, and Physical AI & High-Interaction. This roadmap reflects the evolution of connected devices from simple sensing and communication toward intelligent, autonomous, and interactive systems.

Basic IoT focuses on delivering reliable, cost-effective connectivity for large-scale embedded devices. Products such as the ESP32-C series provide highly integrated Wi-Fi and Bluetooth connectivity with optimized power consumption and cost efficiency, enabling broad adoption across smart home devices, consumer electronics, industrial control, and other mainstream IoT applications.

Building upon basic connectivity, Systematic Connectivity addresses increasingly complex networking environments where multiple wireless technologies operate together. The Company's portfolio supports Wi-Fi, Bluetooth LE, Thread, Zigbee, Matter, and Wi-Fi 6/6E, enabling devices to participate in heterogeneous networks with improved bandwidth, lower latency, stronger reliability, and lower power consumption. This capability allows customers to build scalable and interoperable connected systems rather than isolated devices.

Interactive Devices combine connectivity with local intelligence to enable richer human-device interaction. Products including the ESP32-S series integrate AI acceleration, vector instructions, graphics capabilities, and multimedia processing to support voice interaction, vision processing, display control, and other real-time edge AI applications, enabling a new generation of intelligent terminals.

Looking further ahead, the Company is expanding toward Physical AI & High-Interaction. Products such as the ESP32-P series provide significantly higher computing performance, richer peripheral interfaces, multimedia capabilities, and support for embedded Linux, forming the computing foundation for next-generation intelligent control systems, robotics, and AI Agent applications. At the software layer, the Company is also investing in technologies such as MCP integration, ESP-Claw, and AI-native development frameworks to help developers more easily build intelligent interactive devices and Physical AI applications.

Through this four-layer strategy, the Company is building a unified platform that supports customers from basic IoT connectivity to intelligent edge computing and future Physical AI applications.

Key Products - Chip Matrix

AI

AI

AI

ESP

ESP 32

ESP32

ESP32 - S3

ESP32

ESP32 - P4

ESP32 - S31

ESP32

32

S3

S31

P4

2x HP Core @240 MHz 1x ULP Core @8 MHz

2x HP Core @240 MHz 1x ULP Core @17.5 MHz

2x HP Core @400 MHz 1x LP Core @40 MHz H.264 encoding

2x HP Core @320 MHz 1x ULP Core @40 MHz

FunctionDriven

ESP32

ESP32 - H4

ESP32

ESP32 -S2

H4

S2

2x Core @96 MHz

1x Core @240 MHz

ESP32

ESP32 - C5

C5

1x HP Core @ 240MHz 1x LP Core @ 40MHz

ESP32 -E22

ESP32

E22

2x Core @500 MHz 2×2 MIMO

ESP32

ESP32 - C6

C6

1x HP Core @160 MHz 1x LP Core @20 MHz

ESP32

ESP 8266

C61 ESP32 -C61

1x Core @160 MHz 1x Core @160 MHz

ESP32

ESP32 - C3

C3

1x Core @160 MHz

ConnectivityDriven

ESP32

H21 ESP32 -H21

ESP32

ESP32 - C2

1x Core @96 MHz

C2

1x Core @120 MHz

ESP32

ESP32 - H2

H2

1x Core @96 MHz

Legacy Growth Emerging / Sampling

N.B.: All products shown above are 32-bit MCU-based chips.

|Wi-Fi 4 Bluetooth

Wi-Fi 6 Thread

Wi-Fi 6E Zigbee

Matter Ultra-Low Power

|

|---|

Product Market Tenure

Legacy Growth Emerging Sampling

Annual Revenue Trend

ESP32-E22 ESP32-H21

ESP32-E22 ESP32-H21 ESP32-H4 ESP32-S31 ESP32-P4 ESP32-C61 ESP32-C5 ESP32-H2 ESP32-C6 ESP32-C2 ESP32-C3 ESP32-S3 ESP32-S2 ESP32 (Original) ESP8266

ESP32-H4 ESP32-S31 ESP32-P4

<1 YEAR

2 YEARS

ESP32-C61 ESP32-C5 ESP32-H2 ESP32-C6 ESP32-C2 ESP32-C3 ESP32-S3 ESP32-S2

2 YEARS 2 YEARS

4 YEARS 4 YEARS

5 YEARS

6 YEARS 6 YEARS

7 YEARS

11 YEARS (SINCE 2016) 13 YEARS (SINCE 2014)

ESP32 (Original) ESP8266

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Product Lifecycle Classification

• • Sampling: The product has completed development and entered the sampling phase, undergoing customer design-in and validation.
• • Emerging: The product has achieved initial mass production and begun generating revenue, though overall scale remains limited.
• • Growth: The product enters a ramp-up phase, making a significant contribution to revenue growth.
• • Legacy: The product has reached a stable shipment scale, with sales trending flat or gradually declining; certain product may enter the later stage of their lifecycle.
• • EOL: End of Life. No products have reached this stage yet.

Market Tenure as a Core Asset

In the IoT industry, a product’s market tenure serves as a critical indicator of credibility. It reflects long-term validation and stable performance across complex application environments—reliability that cannot be replicated by speed or short-term iteration alone.

Long-Tail Value

IoT products typically have long lifecycles and prioritize reliability, stability, and long-term supply continuity. Once a customer's product enters mass production, the end product may remain in the market for 5–10 years or longer. Throughout this period, the customer continues to require chips/modules for ongoing production, replenishment, maintenance, and product variants, creating a recurring stream of demand.

This creates a hardware equivalent of SaaS economics: not through subscription fees, but through long product lifecycles, repeat purchases, and durable customer relationships.

The result is a “Slow Burn, High Retention” model, in which the value of a design win extends well beyond the initial order, generating a long tail of revenue over the product's lifetime.

Key Products - M5Stack Development Kits

In addition to the ESP32 chip brand, Espressif also owns the M5Stack development kit brand. M5Stack is renowned for its innovative approach to hardware development and offers a modular, open-source platform that simplifies the creation of IoT and embedded system solutions, greatly enhancing deployment efficiency.

Beyond its hardware prowess, M5Stack has cultivated an exceptionally vibrant global developer community, commanding high brand mindshare within the ecosystem. With an extensive lineup exceeding 400 products, M5Stack continues to drive rapid innovation by launching a new product every week. M5Stack enables developers to rapidly prototype and iterate. This vast community serves as a continuous validation engine, where grassroots innovation frequently translates into mature, market-ready solutions.

In the first half of 2026, M5Stack successfully debuted two new products through Kickstarter crowdfunding campaigns. Post-crowdfunding, the products sustained high traction with both new acquisitions and repeat purchases throughout standard retail, underscoring a robust long-tail effect. M5Stack is progressively becoming an

'Everyday Carry' (EDC) staple for engineers, further reinforcing our Direct-to-Consumer (DTC) market strategy.

AI is stepping out of the screen and into the real world. As intelligence finds its way onto our desks, into our pockets, and into field devices, hardware is evolving into the essential infrastructure that bridges digital intelligence with physical experiences.

Throughout 2026, from the Anthropic Developer Conference, the Meta Muse Gadget Board debut, and the Qoder exhibition at the Alibaba Apsara Conference, to the Netherlands cybersecurity conference OrangeCon and WorkOS’s init() event, M5Stack has repeatedly been chosen as the hardware of choice for AI coding at developer gatherings worldwide. Serving variously as an interactive badge, an installation device, a workshop tool, or simply the very first piece of hardware to bring an AI concept straight to the desktop, M5Stack continues to empower developers in turning imagination into tangible reality.

MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT

Business Model

Business-to-Developer-to-Business (B2D2B)

We believe developers are the primary drivers of technological innovation. By serving developers first, we enable the creation of new products, new applications, and ultimately new markets.

Our growth model is built on the global developer ecosystem through two complementary layers: Business-toDeveloper (B2D) and Business-to-Developer-to-Business (B2D2B).

B2D (Business-to-Developer) forms the foundation of our ecosystem. We regard developers as our primary direct users and continuously invest in a comprehensive development platform, including processors, software frameworks, operating systems, development tools, development kits, and technical support. Through our opensource ecosystem, technical community, developer events, and continuous software enhancements, we maintain long-term engagement with developers worldwide. In this sense, B2D resembles a direct-to-consumer (DTC) model, where the "consumer" is the global developer community.

B2D2B (Business-to-Developer-to-Business) transforms developer adoption of our platform into enterprise adoption of our technologies. As developers build innovative products on our platform, they bring our technologies into their organizations and industries, driving the development and commercialization of intelligent hardware applications across industrial automation, energy management, smart agriculture, consumer electronics, AI-enabled devices, and many other markets.

Together, these two layers form Espressif's Developer Flywheel, where developers create new applications that drive enterprise adoption, while growing enterprise adoption attracts more developers, reinforcing a self-sustaining cycle of developer growth, application innovation, enterprise adoption, and ecosystem expansion.

B2D2B Model

Core Chip Software Tools

Smart Home Smart Lighting Industrial Control Charging Pile

Module

Branch B (Product Prototype)

2D Developer Community

Portable Energy Storage

Branch A (DIY Enthusiast)

Development Board (DevKit)

Photovoltaic Inverter

Smart Agriculture 3D Printer Smart Healthcare

Internet of Vehicles

Behind Every Smart Devices is a Developer

Developer-Centric Platform Strategy

CONNECTED DEVICE DEVELOPERS

DESCRIPTION

Build reliable, low-power connected devices for IoT applications, with a focus on wireless connectivity, energy efficiency, and security.

TYPICAL FOCUS

Smart home, Matter, Thread, sensors, wearables, industrial IoT

SMART INTERACTION DEVELOPERS

DESCRIPTION

Create devices that interact naturally with people through displays, touch, voice, cameras, and multimodal interfaces.

TYPICAL FOCUS

AI toys, smart displays, HMI, education, consumer electronics

EDGE AI DEVELOPERS

PHYSICAL AI DEVELOPERS

DESCRIPTION

Develop intelligent physical devices that perceive, interact with, and respond to the physical world through AI, sensing, connectivity, and control.

TYPICAL FOCUS

Robotics, AI devices, sensing, physical interaction, automation.

HIGH-PERFORMANCE AI-NATIVE DEVELOPERS CONNECTIVITY DEVELOPERS

LINUX APPLICATION DEVELOPERS

DESCRIPTION

DESCRIPTION

DESCRIPTION

Build sophisticated embedded applications using Linux, leveraging modern software frameworks and open-source ecosystems.

Build hardware applications with AI as the primary development interface, using natural language, AI coding assistants, and low-code workflows.

Design products that require high bandwidth, low latency, and advanced wireless connectivity.

TYPICAL FOCUS

TYPICAL FOCUS

TYPICAL FOCUS

Video streaming, industrial gateways, XR, multimedia, networking

Python, ROS, OpenCV, edge computing, robotics, AI terminals

Vibe coding, MCP, AI IDEs, rapid prototyping

Espressif's long-term development strategy is centered on continuously expanding the developer ecosystem served by its technology platform. As intelligent connected devices evolve, the required skill sets and development workflows continue to diversify. Accordingly, the Company is broadening its technology portfolio to support an increasingly diverse range of developer communities.

Today, Espressif's platforms are widely adopted by Connected Device Developers, who focus on low-power wireless IoT applications, and Smart Interaction Developers, who build products featuring displays, voice, cameras, touch interfaces, and multimodal user experiences. As AI increasingly moves beyond digital applications into the physical world, the Company is also expanding its engagement with Physical AI Developers building intelligent devices that combine AI capabilities with sensing, connectivity, interaction, and physical control. Meanwhile, increasing demand for higher bandwidth and lower latency is creating new opportunities among High-Performance Connectivity Developers developing multimedia, industrial networking, and advanced wireless applications.

Looking forward, the Company is making strategic investments to support the next generation of embedded software development. This includes ongoing research and development of Linux-capable platforms and software frameworks intended to serve Linux Application Developers, enabling more sophisticated embedded computing applications. In parallel, the Company is exploring AI-native development frameworks and workflows, including AIassisted programming, MCP integration, and low-code development tools, with the objective of supporting the emerging community of AI-Native Developers as artificial intelligence reshapes embedded system development.

By expanding its developer communities, the Company aims to strengthen its software ecosystem, accelerate technology adoption, and support long-term business growth.

14

Developer Community Content

Cumulative Number of GitHub ESP32 Projects

216 K

BOOKS

Global Code Hosting Platform Social Networking Site Developer-written books

275,000 218,850 > 300

ESP32 and ESP8266 Projects

ESP32 Group Members Covering more than 10 languages

2016/12/31 2026/9/30

Daily Increase on GitHub ESP32 Projects

402

Chinese Video Sharing Platform Global Video Sharing Platform

5.97 M 49.8 M 1,017 K

Most Viewed ESP32 Video (2026)

Most Viewed ESP32 Short (2026)

Most Viewed ESP32 Video (2026)

2016Q4 2026Q3

Always a on Social Media

Posted on 15 Oct 2026

Posted on 20 Sep 2026

Posted on 5 Oct 2026

Posted on 16 Oct 2026

An ESP32-S3 with a 3.97-inch e-paper display. What would you build?

Building a Tiny OLED Keychain | ESP32 project with free code

ESP32-S3の⾃作スマートウォッチで 画⾯スワイプが効かなくなった時の話 です。

成本百元！⼀⾏代码不会，如何做个⾃ ⼰的桌⾯⼩设备？【⾖包⼯作】

从 ESP32 开发板出发，借助 AI 编程制 作个⼈桌⾯设备，将想法变成可以使⽤ 的⼩⼯具。

This Waveshare board combines an ESP32-S3 with a 800 × 480 e-paper screen, making it useful for low-power projects that need to display information without constantly refreshing a backlit display

DIY electronics keychains are everywhere right now, so I decided to make my own!

タップもスクロールも動くのに、横ス ワイプだけ通らない。タッチパネルを 疑っていました。

I built a tiny OLED keychain using a XIAO ESP32-S3, a 1.3-inch OLED display, and a small LiPo battery…

Think desk dashboards…

https://www.bilibili.com/video/ BV1M6eq6gEqg

https://x.com/maruhanax6lq/status/ 2111037956425466113

https://x.com/Alacritic_Super/status/ 2110612903787364833

https://www.youtube.com/watch? v=c_qwv6NKEDg

Posted on 16 Oct 2026 Searched on 16 Oct 2026

Wearable ESP32 cyberdeck I designed

Posted on 14 Oct 2026 เ"ยน ESP32 LVGL level1 %ดเ'ม)นการ

Posted on 6 Oct 2026

Thought this group might appreciate this project I just finished!

ESP32 par Chalaya ArduPilot Drone! ! #rcproject#shorts

• ฒนา Touchscreen อ0างไ34ด56ด 7ม8 สนใจ ไปทบทวน เ"ยน@อยหBงไCแEว

15

http://reddit.com/r/masterhacker/ comments/1×76yfb/ wearable_esp32_cyberdeck_i_design ed/

https://www.youtube.com/shorts/ qDi1kduxsE8

Ownership of Securities

Basic information of securities

Share types Ordinary share Share capital 234,384,311 (as of Sep 30, 2026) Listing Shanghai Stock Exchange (SSE) Ticker 688018.SH Listing Date 2019-07-22

Shareholder Structure as of Sep 30, 2026

Shareholder Share Numbers Percentage (%)

Espressif (Hong Kong) Investment Ltd. 85,694,801 36.56 Hong Kong Securities Clearing Company Limited 8,739,244 3.73 NSSF Portfolio 114 5,826,557 2.49 Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.1

3,099,418 1.32

Wisdomshire Asset Management Co., Ltd. - Wisdomshire Youfu Private Equity Securities Investment Fund No.3

2,918,417 1.25

China Construction Bank Corporation – Guotai Haitong Innovation Growth Mixed Asset Initiated Securities Investment Fund

2,793,470 1.19

Shinvest Holding Ltd. 2,601,600 1.11 CITIC Securities Co., Ltd. – Harvest SSE STAR Market Chip Tradable Open-ended Index Securities Investment Fund

2,336,575 1.00

Shanghai Letun Enterprise Management Partnership (Limited Partnership)

2,047,763 0.87

Shenwan Hongyuan Securities Co. Ltd. 1,996,834 0.85 Top 10 shareholders 118,054,679 50.37

Espressif Systems (Shanghai) Co., Ltd. Repurchase Special Securities Account

2,729,203 1.16

Other public shareholders 113,600,429 48.47 Total of outstanding shares 234,384,311 100.00

MANAGEMENT REPORT ESPRESSIF SYSTEMS Q3 2026 REPORT

Financial Risk

The Company performs periodic credit evaluations of its customers’ financial condition and generally requires of its customers no collateral. The Company provides an allowance for expected credit losses, based on the net amount expected to be collected on such receivables. Losses have not been significant for any of the periods presented in this report.

R&D Risk

Espressif’s research and development strategy is focused on leveraging new technologies for the creation of innovative AIoT products. Any delays or changes in the development of these technologies by our industry partners, or a failure of our products to achieve market acceptance, could compromise our competitive position.

Competitors

As the market for AIoT products grows, we face an increasing antagonism from relatively large competitors, such as Realtek, MediaTek, Infineon, NXP, Qualcomm, Nordic, Silicon Labs, and others. Intense competition from current players may reduce our product sales and market share.

Suppliers

A significant portion of the Company’s products is fabricated by the Taiwan Semiconductor Manufacturing Company Limited (TSMC). The inability of TSMC to deliver wafers to the Company in a timely manner could impact the production of the Company’s products for a certain period of time, which could have an adverse effect on the Company’s business, financial condition, results of operations and cash flow.

Customers

The Company sells directly to end customers, distributors, solution providers and contract manufacturers. Our customers are a mix of several big customers and numerous small customers. The concentration ratio for our top-five customers was 20.72% in the first three quarters of 2026.

CONSOLIDATED FINANCIAL STATEMENTS ESPRESSIF SYSTEMS Q3 2026 REPORT

Consolidated Financial Statements

Consolidated Balance Sheet (unaudited)

CNY Sep 30, 2026 Dec 31, 2025

Assets

Current assets: Cash and cash equivalents 1,292,099,654 1,024,792,840 Held for trading financial assets 883,540,105 876,009,608 Notes receivable 82,599,517 65,534,507 Accounts receivable, net 382,490,392 298,106,030 Accounts receivable financing Prepayments 21,545,397 19,427,100 Other receivables 13,101,136 11,439,963

Including: Interest receivable

Inventories 919,347,083 627,637,513 Other current assets 227,147,753 1,011,937,898

Total current assets 3,821,871,036 3,934,885,459

Non-current assets:

Debt investment 495,941,300 210,430,400 Investment in other equity assets 42,036,070 42,036,070 Other non-current financial assets 41,937,416 41,937,416 Fixed assets 577,614,152 556,813,866 Right-of-use assets 32,747,534 29,091,243 Intangible assets 24,499,504 26,662,076 Goodwill 74,654,024 74,654,024 Long-term deferred expenses 40,118,690 22,753,695 Deferred income tax assets 107,469,417 108,491,271 Other non-current assets

Total assets 5,258,889,142 5,047,755,518

Consolidated Balance Sheet (unaudited)

CNY Sep 30, 2026 Dec 31, 2025

Liabilities & Shareholders’ Equity

Current liabilities: Short-term loan Accounts payable 214,239,053 187,528,762 Contract liabilities 43,308,469 23,381,055 Payroll payable 134,252,056 157,619,024 Taxes payable 9,213,239 2,581,791 Other payable 16,709,388 37,303,747

Including: Interest payable

Non-current liabilities due within one year 8,895,925 6,944,668 Other current liabilities 2,151,205 1,173,418

Total current liabilities 428,769,335 416,532,465

Non-current liabilities:

Lease liabilities 25,955,034 23,701,708 Provisions 613,503 636,582 Deferred income tax liabilities 137,051,991 117,006,835

Total liabilities 592,389,863 557,877,590

Owners’ equity (or shareholders' equity):

Share capital 234,384,311 167,143,010 Capital reserves 2,947,030,609 3,040,623,359 Less: Treasury stock 302,427,630 67,433,448 Other comprehensive income -15,988,536 17,636,423 Surplus reserves 123,024,049 123,024,049 Retained earnings 1,646,739,543 1,177,520,921

Total Espressif shareholders’ equity 4,632,762,346 4,458,514,314 Non-controlling interests 33,736,933 31,363,613

Total shareholders’ equity 4,666,499,279 4,489,877,928

Total liabilities and shareholders' equity 5,258,889,142 5,047,755,518

Consolidated Income Statement (unaudited)

Three Months Ended Nine Months Ended CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025

Revenue 889,277,202 666,706,221 2,369,988,496 1,912,247,017 Cost of Revenue 435,191,478 346,860,831 1,185,647,816 1,029,365,877 Gross Profit 454,085,724 319,845,390 1,184,340,680 882,881,140

Taxes and surcharges 3,562,984 1,485,439 9,898,731 4,784,329 Selling expenses 27,192,217 21,202,823 75,127,957 59,114,434 General and administrative expenses 25,023,192 24,222,903 72,425,306 62,091,408 Research and development expenses 188,725,772 155,163,791 518,391,823 423,408,329 Financial expenses 305,717 -1,441,601 -2,833,484 -8,092,809

Including: Interest expenses 298,969 1,495,598 862,320 4,576,810

Interest income 6,000,764 5,855,951 17,110,669 16,821,219 Add: Other income 16,674,834 6,965,515 40,925,483 38,334,091 Investment income (mark"-" for loss) 7,213,830 3,427,000 24,044,782 11,860,933 Income from changes in fair value (mark"-" for loss) 316,679 1,848,163 Credit impairment losses (mark"-" for loss) 528 46,120 -350,123 Assets impairment losses (mark"-" for loss) -46,886 -353,452 -2,393,307 -1,591,282 Assets disposal income (mark"-" for loss) -125 -22,982 3,645 -52,581 Operating Income 233,434,702 129,228,116 575,805,232 389,776,488 Add: Non-operating revenue -470 27,544 2,120,000 357,744 Less: Non-operating expenses 153,380 293,841 212,852 362,447 Income before income taxes 233,280,852 128,961,819 577,712,381 389,771,785 Provision (benefit) for income taxes 13,264,898 12,462,773 22,417,886 10,232,975

Net Income 220,015,954 116,499,045 555,294,495 379,538,810 Net Income attributable to non-controlling interests 1,320,836 998,507 2,373,319 2,776,095 Net Income attributable to Espressif 218,695,118 115,500,538 552,921,175 376,762,715

Earnings per share

Basic 2.3673 1.7343 Diluted 2.3673 1.7343

N.B.: Due to the company's implementation of a capital reserve to equity conversion in 2026, the earnings per share for each reporting period have been recalculated based on the adjusted share count.

Three Months Ended Nine Months Ended CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025

Net Income 220,015,954 116,499,045 555,294,495 379,538,810 Other comprehensive income (loss), after tax

Changes to the fair value of investment in other equity instruments

Currency translation reserves -7,123,532 -6,743,598 -33,624,959 -9,919,960 Other comprehensive income (loss) -7,123,532 -6,743,598 -33,624,959 -9,919,960

Other comprehensive income (loss) attributable to non-controlling interests

Comprehensive income 212,892,422 109,755,447 521,669,536 369,618,851 Comprehensive income attributable to non-controlling interests 1,320,836 998,507 2,373,319 2,776,095 Comprehensive income attributable to Espressif 211,571,587 108,756,940 519,296,216 366,842,756

Consolidated Cash Flow Statement (unaudited)

Three Months Ended Nine Months Ended CNY Sep 30, 2026 Sep 30, 2025 Sep 30, 2026 Sep 30, 2025

Operating Activities

Cash from sales of merchandise and provision of services 984,275,536 759,768,187 2,518,668,956 2,059,551,601 Tax refund 34,545,758 22,222,797 102,121,801 50,238,157 Other received cash related to operational activities 13,115,604 11,545,285 28,713,728 45,010,201

Subtotal of cash inflow from operational activities 1,031,936,898 793,536,268 2,649,504,485 2,154,799,959

Cash paid for merchandise and services 571,478,021 446,443,968 1,623,204,864 1,269,850,584 Cash paid to and for employees 131,243,306 109,983,101 485,440,149 409,505,162 Cash paid for taxes and surcharges 30,667,885 2,347,759 62,742,754 53,671,180 Other paid cash related to operational activities 52,673,415 39,116,568 159,795,933 111,705,337

Subtotal of cash outflow from operational activities 786,062,626 597,891,396 2,331,183,701 1,844,732,262 Net cash provided by operating activities 245,874,272 195,644,872 318,320,784 310,067,697

Investing activities Cash arising from the disposal of investments 1,682,789,170 50,000,000 4,008,657,588 190,000,000 Cash arising from investment income 25,233,260 4,815,000 38,561,760 17,782,233 Net cash arising from the disposal of fixed assets, intangible assets and other long-term assets

2,986 10,193 18,756 25,098

Other received cash relating to investment activities 306,050 148,050 2,637,153 1,648,150 Subtotal of cash inflow from investment activities 1,708,331,466 54,973,243 4,049,875,257 209,455,481

Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets

27,588,189 25,448,013 106,914,264 469,618,632

Cash paid for investments 1,367,000,000 3,560,000,000 Net cash paid for acquisition of subsidiaries and other business units

Other paid cash relating to investment activities 1,000,000 1,000,000 1,200,000 Subtotal of cash outflow from investment activities 1,395,588,189 25,448,013 3,667,914,264 470,818,632 Net cash provided by investment activities 312,743,277 29,525,230 381,960,993 -261,363,151

Financing activities

Cash arising from the issuance of common stock 1,766,553,723 93,024,211 1,837,645,360

Including: Cash arising from subsidiaries absorbing investments by minority shareholders

Cash received from borrowings 21,000,000 383,350,000 Subtotal of cash inflow from financing activities 1,787,553,723 93,024,211 2,220,995,360

Cash paid to repay debt 170,288,327 180,688,327 Cash paid for the distribution of dividends and profits, or payment of interests

1,404,251 83,702,554 70,604,145

Including: dividends and profits paid to minority shareholders by subsidiaries

Other paid cash relating to financing activities 302,991,524 4,059,697 406,100,259 11,380,912 Subtotal of cash outflow from financing activities 302,991,524 175,752,275 489,802,813 262,673,384 Net cash provided by financing activities -302,991,524 1,611,801,449 -396,778,601 1,958,321,976

Impact of fluctuation in exchange rates on cash and cash equivalents

-9,320,364 -7,169,924 -40,062,074 -6,148,767

Net increase in cash and cash equivalents 246,305,661 1,829,801,627 263,441,102 2,000,877,755

Add: Cash and cash equivalent at the commencement of the period

1,035,159,212 838,708,434 1,018,023,771 667,632,307

Cash and cash equivalents at the end of the period 1,281,464,873 2,668,510,061 1,281,464,873 2,668,510,061

FURTHER INFORMATION

ESPRESSIF SYSTEMS Q3 2026 REPORT

Further Information

Terms and Conditions of the Report

Responsibility Statement

The Board of Directors, and the executive management of the Company warrant that the contents of this report are true, accurate and complete, and do not contain any false information, misleading statements or material omissions, severally and jointly accepting any legal responsibility thereof.

Shanghai, 23 October 2026 Espressif Systems

Executive Management

Board of Directors

Teo Swee Ann Founder and Chairman

Teo Swee Ann Founder and CEO

Ng Pei Chi Information Technology Officer

Wang Jue Board Secretary

Wang Jue Board Secretary

Shao Jingbo Financial Director

Teo Teck Leong Shareholder-elected

Chen Myn Independent Director

Lee Kian Soon Independent Director

R

E

P

S

S

S

Leong Foo Leng Independent Director

E

I

F

Declaration

Forward-looking Statements

S

S

Y

M

• S
• T

E

This report contains forward-looking statements and/or assessments about the business, financial condition, performance and strategy of the Espressif Group. These statements and/or assessments are based on assumptions and management expectations resting upon currently available information and current estimates. These are subject to a multitude of uncertainties and risks, many of which are partially or entirely beyond Espressif’s control. Espressif’s actual business development, financial condition, performance and strategy may, therefore, differ from what is discussed in this report.

FURTHER INFORMATION ESPRESSIF SYSTEMS Q3 2026 REPORT

List of abbreviations

AI Artificial Intelligence

AIoT Artificial Intelligence and Internet of Things

Bluetooth LE Bluetooth Low Energy

CEO Chief Executive Officer

Espressif ESPRESSIF SYSTEMS (SHANGHAI) CO., LTD.

G&A General and Administrative

GM Gross Margin

HMI Human-Machine Interaction

IC Integrated Circuit

IoT Internet of Things

LLM Large Language Model

MCU Microcontroller Unit

MCP Model Context Protocol

QoQ Quarter-on-Quarter

R&D Research and Development

RF Radio Frequency

RISC-V Reduced Instruction Set Computer-V

ROE Return on Earnings

G&A General and Administrative

SH Shanghai

SoCs System on Chips

YoY Year-on-Year

ESPRESSIF SYSTEMS Q3 2026 REPORT

Investor Relations

ir@espressif.com

Official Platforms

www.espressif.com blog.espressif.com github.com/espressif esp32.com

Social Media

x.com/EspressifSystem facebook.com/espressif linkedin.com/company/espressif-systems youtube.com/EspressifSystems instagram.com/espressif_systems_official bilibili.espressif.com xhslink.espressif.com

Copyright © 2026 Espressif Systems (Shanghai) Co., Ltd. All rights reserved. All trade names, trademarks and registered trademarks mentioned in this document are the property of their respective owners, and are hereby acknowledged. The term “Espressif” refers to Espressif Systems (Shanghai) Co., Ltd. and/or its subsidiaries. This report is written in both Chinese and English. In case of any discrepancies between Chinese and foreign interpretations, the Chinese version shall prevail.

All amounts presented in these condensed Consolidated Financial Statements are shown in CNY unless stated otherwise. Slight discrepancies between the amounts presented may occur due to rounding.