Results continued to grow at a high level in '22. The company's revenue increased sharply by 70.9% year on year to RMB 320 million in '22, of which the revenue of the 5G business increased 64.4% year on year to 120 million yuan, the revenue of the non-5G business increased 75% year on year to 200 million yuan; gross margin fell 12.1 percentage points to 29.5% year on year, mainly due to the fact that the company is actively expanding the 5G business with high initial costs and the degree of customization of related businesses at the same time, it is expected that the overall gross margin will continue to remain stable at around 30% in the future; R&D and marketing will maintain a reasonable and healthy expansion, related Expenses increased 15.5% and 75.4% year-on-year to $11.31 million and $3.75 million respectively; adjusted net profit after adding listing expenses increased 22.2% year-on-year to $51.04 million.
The data transmission and processing service business is growing brilliantly, making reasonable and healthy investment in research and development, and optimistic about the future growth potential of the IoT business. The company's data transmission and processing service business revenue increased sharply by 93.1% year-on-year to 240 million yuan in '22. The company provides IoT application transmission and processing services to customers in domestic manufacturing, municipal services and other industries. Among them, non-5G network services mainly help customers connect terminal equipment to the company's unique general IoT platform through various communication networks or gateways such as 4G, LORA, etc., to provide customized services. The 5G private network service has boosted the company's business in recent years, providing customers with one-stop solutions for software and hardware integration through 5G private networks. Currently, the revenue ratio of 5G and non-5G is about 3:7. The future 5G business growth potential is huge. Furthermore, in terms of R&D, the company continues to enhance its competitiveness, and expects to use more than 80% of net proceeds from global sales for various R&D activities, including hiring additional R&D personnel to enhance its 5G private network services, develop industrial-grade WLANs, and upgrade general IoT platforms.
We believe that in the future, in the rapidly developing 5G IoT industry, with the gradual improvement of the company's R&D capabilities, it can rapidly increase the growth of its own IoT business, and we are optimistic about the growth potential of related businesses.
Downstream demand is strong, and the 5G communication equipment sales business continues to grow rapidly. The company's communication equipment sales revenue reached 82.16 million yuan in '22, an increase of 37% over the previous year. Mainly due to strong demand from downstream customers for 5G communication equipment (including 5G distributed radio frequency extension units, various 5G antennas and 5G communication modules), related business increased threefold to 54.45 million yuan year-on-year. At the same time, exports of vehicle antennas and IoT antennas to Russia and the United States decreased by 49.6% to 20.6 million yuan due to geopolitical and other factors. Downstream customer demand is expected to continue to grow in the future, and the overall communications equipment business can maintain rapid growth.
The prospects for the IoT industry are clear, and the company is a scarce target for Hong Kong stocks. Due to the rapid development of the industrial Internet of Things, the continuous increase in demand for 5G private networks, and the policy of the national government, the overall development prospects of the Chinese IoT industry are broad. As an IoT solution provider that has been accumulated in the industry for many years, the company can continue to improve its competitiveness in the industry's development dividends. Furthermore, considering that the company is rarely a scarce target focused on the Internet of Things in Hong Kong stocks, it is recommended to pay attention.
Risk warning: customer development falls short of expectations; technical safety and change risks.