Yingheng Technology's performance fluctuates and it faces challenges from intensified market competition

Recently, Yingheng Technology announced its 2023 annual financial report. The report showed that the company achieved operating income of 5.802 billion yuan, a year-on-year increase of only 20.12%, a 50% decline compared with the same period last year; gross profit was 1.084 billion yuan, a year-on-year increase of only 4.13%. In terms of net profit, Yingheng Technology saw a year-on-year decline of 23.84% in 2023, and the high growth cycle of several consecutive years also came to an end. The gross profit margin of the business continued to decline from 26.18% in 2005 to 18.68%; the net profit margin fell from 12% to 5.39%. This is mainly due to the fact that China's new energy vehicle market has begun to enter a low growth cycle, fierce market competition, and the gradual increase in the localization rate.