On March 21, Ruisheng Technology (2018.HK) released its 2023 annual results report. The Group's annual revenue was RMB 20.42 billion, gross margin was 16.9%, and net profit was RMB 740 million. Revenue for the second half of the year was RMB 11.2 billion, and gross margin was 19.2%, up 1.4 percentage points year on year and 5.1 percentage points month on month. Net profit was RMB 590 million, up 25.2% year over year. An inflection point in performance is beginning to appear.
Among them, the revenue of the sensor and semiconductor business in the second half of the year was 531 million yuan, up 7.5% month-on-month, and gross margin was 15.7%, up 5.3 percentage points and 4.4 percentage points year-on-year, respectively. It mainly benefited from a marginal recovery in smartphone market demand in the second half of the year and the continued increase in penetration rate among Android customers.
According to the management of Ruisheng Technology, Ruisheng Technology currently has three production bases for MEMS products in Nanning, Shenzhen and Malaysia. The aim is to create a perfect layout of domestic and foreign collaboration to flexibly mobilize production resources to meet the needs of different customers. In terms of products and technology, the company continues to promote self-developed high-performance MEMS microphones. The share of high-value products shipped on Android devices increased by about 17 percentage points over the same period last year to more than 50%, leading the industry to upgrade to the middle and high-end. In 2023, the Group shipped 990 million MEMS products, with a cumulative shipment volume of nearly 3 billion units in the past three years.
In the automotive field, in 2023, Ruisheng Technology successfully developed a full set of new automotive MEMS microphone modules, including voice microphone modules, e-Call microphone modules, waterproof microphone modules, vibration sensor modules, etc., and passed the AEC Q103-003 automotive quality standard certification, which can provide outstanding and reliable voice services and guarantees. At present, Ruisheng Technology's microphone array voice module has reached cooperation with world-renowned automobile manufacturers.
In the IoT field, Ruisheng Technology launched the innovative MEMS speaker product SOPRANO. Its package size is only 16.2mm3. It has excellent high-band ductility, and can be easily expanded to 40kHz or more, achieving an excellent sound quality experience in accordance with Hi-Res certification, helping TWS manufacturers to reproduce high-definition audio in a limited space.
Currently, artificial intelligence (AI) technology is rapidly developing, and conversational AI functions are rapidly penetrating into various terminals and application scenarios such as smartphones, smart homes, AR/VR, and smart cars. In order to greatly improve speech recognition accuracy and achieve more accurate and more modal human-computer interaction, the specifications and performance of MEMS microphones, as the core device for sound environment perception, will be significantly upgraded. Management said that as the AI wave drives more demand for intelligent voice interaction, it is expected to bring more development opportunities to the company's MEMS business.