Gelonghui March 20 | Yingheng Technology (01760.HK) announced that the Group's overall performance in 2023 recorded ideal growth. Total revenue increased by about 20% year-on-year to RMB 5.8 billion, mainly driven by growth in the NEVs, smart driving connectivity and safety systems sectors. Among them, NEV revenue increased by more than 35% during the period, which is basically in line with market performance. The NEV segment increased its share of the company's revenue from 42.8% to 48%. Revenue from the Body Systems, Safety Systems and Powertrain segments recorded steady increases of 8%, 33%, and 3%, respectively, accounting for 16%, 15% and 8% of total revenue, respectively. Revenue from the smart driving connectivity business increased sharply by 59%, accounting for 7% of total revenue. The revenue of the cloud server sector, which was affected by adjustments in market demand, fell 52% year-on-year, accounting for only 4% of the group's revenue, which is comparable to the 20% increase in service revenue over the year.
During the year under review, the Group's gross profit was RMB 1,083.6 million, and profit attributable to shareholders during the year was RMB 317.4 million.
The Group has always regarded R&D as a core part of its development strategy. As electrification and intelligence become major trends in the global automotive industry, their complexity is getting higher and higher, and the Group's technical advantages in this area are becoming more prominent. In 2023, the Group continued to increase investment in R&D. R&D expenses increased 56% over the same period last year to RMB 520.2 million, accounting for an increase of 6.9% to 9.0% of the Group's revenue. As of December 31, 2023, the Group had a total of 1,081 full-time R&D related technicians, accounting for 70% of the total number of employees. During the year, the Group held 268 patents and 217 software copyrights, an increase of 33 and 30 respectively over the same period last year.
The Group more accurately captured market opportunities for autonomous driving, intelligent driving and automotive connectivity in 2023. The business's revenue increased sharply by 59% to RMB 404.7 million, which gradually increased from 5.3% in 2022 to 7.0% of total revenue. The business performance is excellent. Based on the Group's related solutions, the assembly rate for new energy vehicles in China continues to increase, and more projects have been obtained. Major end customers include market-leading NEV brands. The new electronic and electrical architecture business is clearly growing. The future will bring rich performance returns to the Group, which is the main factor in the company's future performance growth.
In the first half of 2023, the Group officially launched MADC3.5, a high-performance integrated cabin controller solution. It was comprehensively upgraded in terms of functional safety, information security, and cabin driving integration for L2+ and L2++ level autonomous driving scenarios, reflecting the Group's deep understanding of autonomous driving domain controller architecture design.
Looking forward to the future, despite intense competition in the automotive industry, the Group remains cautiously optimistic about business growth under the global trend of electrification, intelligence and connectivity, and continues to focus on electrification and intelligence to meet the needs of automakers, continuously improve the industrial service platform, and enable the design and application implementation of domestic semiconductors. Furthermore, the Group will continue to invest in R&D to consolidate its leading position in the industry to achieve long-term sustainable growth and bring ideal returns to shareholders.