Hengxin Technology (01085) announced annual results. Shareholders should account for about 69.7 million yuan in net profit, an increase of about 9.6% over the previous year

According to the Zhitong Finance App, Hengxin Technology (01085) announced results for the year ended December 31, 2023. Revenue increased by about 10.6% year on year to about 2,256 billion yuan (RMB, same below); net profit attributable to the company's equity shareholders increased by about 9.6% year on year to about 69.7 million yuan; basic profit per share was 0.180 yuan.

According to reports, the revenue for fiscal year 2023 increased compared to fiscal year 2022, partly because the company completed the acquisition of Nanjing Zhangyu Information Technology Co., Ltd. (Nanjing Zhangyu) and Shanghai Zhangyu Information Technology Co., Ltd. (collectively, “Zhangyu Company”) in July 2022. Controlling the company's revenue forms the group's digital technology and digital security business segment. Zhaoyu Company contributed approximately RMB 94.2 million in revenue in the second half of fiscal year 2022. For the full year of fiscal year 2023, Zhuangyu Company contributed approximately RMB 202.7 million in revenue, an increase of 115.1% over the previous year's revenue.

Another reason for the increase in revenue for fiscal year 2023 compared to fiscal year 2022 is the completion of the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. and its subsidiary (Zhongguang New Energy) in August 2023. Zhongguang New Energy's revenue forms the Group's new energy and services business segment. Zhongguang New Energy contributed about 77.1 million yuan in revenue in the second half of fiscal year 2023.

Excluding the revenue contributions of Zhuangyu Company for the full year of fiscal year 2023 and COSCO New Energy's revenue in the second half of fiscal year 2023, the revenue obtained by the wireless communications business segment increased slightly by about 1.6% from about $1,945 billion in fiscal year 2022 to about $1,976 billion in fiscal year 2023.