Zhitong Finance App learned that on March 21, Ruisheng Technology (02018) 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.
Financial reports show that in the second half of 2023, thanks to more high-end flagship machines and folding machines using Ruisheng Technology's motors and metal midframes, and the release of innovative products such as shafts and VC heat sinks, Ruisheng Technology's consolidated segment revenue increased 6.5% year on year to RMB 4.63 billion, up 27.8% month on year. The gross margin was 20.7%, up 1.4 percentage points from month to month.
For the full year of 2023, the consolidated division's revenue increased 13.3% year over year to RMB 8.25 billion, and gross margin was 20.1%. Among them, the revenue of the precision structural parts business increased significantly, with a year-on-year increase of more than 30%. The annual revenue of the metal frame increased by 34.3% year-on-year, and its shipment volume and ASP both increased by double digits, and continued to maintain leading market share among high-end and flagship models of major customers.
According to brokerage research reports, in the second half of 2023, Ruisheng Technology performed particularly well in structural parts products on high-end models. It is the main supplier of popular models such as Honor Magic V2, Xiaomi 14, and Huawei Mate 60. According to media reports, the middle frame structural parts provided by Ruisheng Technology for the Xiaomi 14 are made of optimized high-strength aluminum alloy. The processing complexity is higher, which can significantly improve the strength and drop resistance of the phone. At the same time, it has also passed the highest level of IP68 dustproof and waterproof tests.
The management of Ruisheng Technology said that the Group continues to expand its high-value business, and the expansion of the shaft and cooling business has provided new growth momentum. Mass production and shipment of shaft products began in the second half of 2023, with annual shipments of nearly 700,000 units. They use new materials, innovative processes and innovative structures to bring users an extremely lightweight, sturdy and reliable folding experience.
Furthermore, thanks to the Group's leading capabilities in simulation design, technology development, and automated production, Ruisheng Technology's cooling product revenue increased by more than 100% year-on-year, and it maintained a lightweight design while greatly improving the cooling capacity of smartphones. In the future, as smartphone chip specifications continue to improve and the number of high-power scenarios where end consumers use games, the performance requirements of downstream mobile phone manufacturers for cooling products will also continue to increase, which will bring a wide range of market opportunities.