Yingheng Technology released its interim report for 2023, and the growth of Zhijia Networked Business exceeded expectations.

Recently, Yingheng Technology (1760.HK), a leading provider of automotive electronic solutions in China, released its interim results report for 2023. During the reporting period, it achieved operating income of 2.626 billion yuan, up 27% year-on-year, and the profit attributable to shareholders was 155 million yuan, which was basically the same as the same period of last year. Among them, the vehicle-related business continued its rapid growth momentum, with a year-on-year increase of 58.1%, leading the industry; The business performance of Zhijia Networked Network was even brighter, with a year-on-year increase of 117.6%.

Lu Yingming, Chairman, Co-CEO and Executive Director of Yingheng Technology, said: "The overall performance in the first half of this year continued to outperform the market performance. Relying on strong R&D capabilities and industrialization capabilities of new energy vehicles, the Group helps OEMs achieve cost-effective mass production solutions and promote business penetration. "

It is worth mentioning that Yingheng Technology’s gross profit margin remained at around 20% in the first half of the year, leading the industry average, and its operating profit margin was 8.1%, slightly lower than 9.5% in the same period last year. Excluding the additional investment in research and development, the company’s operating profit margin increased slightly by 0.5 percentage points compared with the same period of last year. With electrification and intelligence becoming the general trend of the global automobile industry, its complexity is getting higher and higher, and the technical advantages of Yingheng Technology in research and development are becoming more and more prominent, further consolidating its market position and increasing its market share.

Adhering to the development strategy of "light assets and heavy research and development", Yingheng Technology continued to increase investment in research and development in the first half of this year, and the proportion of research and development expenses in revenue increased to 8.9%, which was mainly used for testing and verifying equipment. By the end of the first half of 2023, the company had 1,058 full-time R&D related technicians, accounting for 70% of the total number of employees. It owns 256 patents and 207 software copyrights, increasing by 21 and 20 respectively compared with the same period of last year.

In June this year, Yingheng Technology cooperated with Horizon, a leading semiconductor company, to strengthen the development and application capabilities in autonomous driving and AI technology, established a vehicle-level autonomous driving test laboratory and an autonomous driving simulation test verification platform, and launched the first market-oriented high-grade autonomous driving domain control station solution based on Journey 5, helping the company to explore the autonomous driving market of low-priced cars.

In this regard, the management of Yingheng Technology said in a question from a reporter from the World Wide Web: "At present, the assembly rate of autonomous driving in China is not very high, and many shares are still provided by international manufacturers, which also means that the future development space of local domestic autonomous driving systems is very considerable. At present, Yingheng Technology’s self-driving products have also been supported by many customers and entered the mass production stage in the second half of this year. "

In August this year, Yingheng Technology was invited to participate in the Microelectronics Ecosphere Seminar 2023 organized by Hong Kong Science and Technology Park Corporation and Hong Kong University of Science and Technology, and exhibited the latest research and development achievements in automotive intelligence. Including MADC3.5, a cockpit integrated controller compatible with intelligent driving and cockpit functions, which is the third domain control station solution for middle and high-level automatic driving; And intelligent cockpit with time-of-flight ranging (ToF) function, which can provide a more perfect interactive experience of man-machine communication in the cabin.

It is reported that Yingheng Technology’s new R&D center in Hong Kong is located in Hong Kong Science and Technology Park, which is mainly responsible for automotive intelligent software, advanced power semiconductor applications and collaborative robot solutions. It is expected to officially operate in November this year, making good arrangements for the company’s products to enter overseas.