Ruisheng Technology (02018): The Group's revenue is expected to increase by more than 18% in 2025, and the gross margin is higher than last year

The Zhitong Finance App learned that on August 21, Ruisheng Technology (02018) released its 2025 interim results report in Singapore. The Group's revenue for the first half of the year was RMB 13.32 billion, up 18.4% year on year, and reached a new high. Net profit increased sharply by 63.1% year over year to 886 million yuan.

Guo Dan, CFO of Ruisheng Technology, said during the interview that the company's revenue will continue to maintain a high year-on-year growth rate in the second half of the year. It is expected to be no lower than 18.4% in the first half of the year, and the annual gross margin level will not be lower than 22.1% last year. Under the trend of AI upgrading, various businesses such as heat dissipation and MEMS microphones will double, and in-vehicle revenue and gross profit will increase steadily.

Furthermore, the world's exclusive WLG lenses will be shipped more than 10 million units this year, and it is expected to continue to grow by 50% next year. As the scale of mass production increases in the future, gross margin is expected to surpass plastic lenses, achieving a landmark breakthrough.

The gross margin of acoustics for the whole year was not lower than last year's 30.2%

Financial reports show that the gross margin of Ruisheng Technology's acoustics business in the first half of this year was 27.2%, down 2.7 percentage points from the previous year. It achieved revenue of 3.52 billion yuan, an increase of 1.8% over the previous year.

Guo Dan said that as one of the company's traditional main businesses, the slight fluctuation in acoustic gross margin was mainly due to the introduction of many new product projects in the first half of the year. However, with the gradual improvement of operating efficiency in the second half of the year, and the product enters the large-scale mass production stage, the gross acoustic margin will increase steadily, and the company's gross acoustic margin for the whole year will remain no lower than 30.2% of last year.

In the first half of 2025, Ruisheng Technology launched a series of innovative acoustic products. Among them, SLS master class and coaxial speakers continued to lead the middle and high-end markets. More than 17 million units were shipped in the first half of the year, an increase of nearly 40% over the previous year. The industry's first master-class coaxially symmetric dual speaker and the industry's thinnest speaker, with a single thickness of only 1.4mm, were introduced.

WLG ushered in a landmark breakthrough

In the first half of 2025, Ruisheng Technology's optical business maintained a rapid growth trend, with revenue of 2.65 billion yuan, an increase of 19.7% over the previous year. The gross margin of plastic lenses has improved by more than 10 percentage points, and the gross margin for the whole of this year is expected to exceed 30%. With the sharp rise in volume and price brought about by the high-end upgrade of mobile phones, there will be room for further increase next year.

Ruisheng Technology's unique WLG technology performed well and received positive feedback from the market. In the first half of the year, we received orders for the flagship model 1G6P lens from many leading domestic customers, and exclusively supplied WLG ultra-optical prism solutions.

According to Guo Dan, Ruisheng Technology will ship more than 10 million WLG lenses this year, and is expected to increase by more than 50% next year. “The unique performance advantages of WLG technology will profoundly change the customer and user experience, and growth of more than 50% is certain.”

At present, WLG's technology yield has reached more than 80%, and WLG's single lens profit has been achieved. In the future, with the further increase in mass production scale, the gross profit of G+P glass plastic hybrid lenses is expected to reach or even exceed the level of plastic lenses.

AI will drive multiple businesses to double their growth

Ruisheng Technology will significantly benefit from the development of the AI industry, and multiple business segments will achieve rapid growth. Guo Dan said that due to the higher demand for voice interaction functions in AI phones, the MEMS microphone business will be the first to benefit, and revenue in 2025 is expected to increase by more than 50% compared to 2024.

Furthermore, due to the higher computing power and power consumption of AI phones, the demand for cooling performance is also getting higher and higher, which will directly drive the rapid growth of Ruisheng Technology's cooling business. According to Guo Dan, Ruisheng Technology has received orders from high-end overseas customers, and mass production is expected to go smoothly in the second half of the year. The overall revenue scale of the cooling product line in 2025 will exceed 1.2 billion yuan, which is at least three times higher than in 2024.

Furthermore, the trend of ultra-thin folding machines will bring more market opportunities to Ruisheng Technology's high-performance and high-density products, and is expected to drive the continuous improvement of ASP for its innovative products, core devices and modules. It is expected that the acoustics business revenue will continue to grow throughout 2025, and the motor products business will achieve double-digit growth.

Regarding the usage of the iPhone side button module, Guo Dan said it was not convenient to evaluate specific customers. As far as its own product situation is concerned, Ruisheng Technology's button module products have been shipped since the end of last year, and the functions of this product will be further iterated and evolved in the future, so the company has the ability to support customers at home and abroad.

Vehicle revenue and gross profit will increase steadily

In recent years, Ruisheng Technology has been actively developing the second growth curve. The company began entering the automotive field in 2021. Through the acquisitions of PSS and Chuguang Auto, it has continuously improved the automotive business layout, and already has system-level solution capabilities such as speakers, algorithms, and amplifiers.

According to Guo Dan, Ruisheng Technology has been quickly introduced to leading OEMs in Europe, America, and China through mergers and acquisitions, and has become TIER1 (Tier 1 supplier). PSS has obtained relatively good fixed-point projects from overseas customers, especially mainstream European customers, and both revenue and gross profit will achieve steady growth. Vehicle acoustics business revenue already accounts for more than 13% of the Group's revenue.

In the future, the automotive business will expand from devices to branded system products, and is expected to become a diversified solution provider integrating sound and optoelectronics.

According to financial data, in the first half of 2025, Ruisheng Technology's automotive business revenue was 1.74 billion yuan, up 14.2% year-on-year, and gross margin reached 23.9%. The flagship SUV project of a domestic new energy brand has been targeted, including 32 speakers, 40-channel amplifiers, algorithms and tuning services.

During the interview, Guo Dan also gave summary responses on hot issues that the market is concerned about. She said that judging from the current situation, Ruisheng Technology's growth rate in the second half of the year will not be lower than in the first half of the year. The annual revenue scale will maintain double-digit year-on-year growth, and gross margin will increase steadily. Furthermore, while the company achieved business growth, R&D, sales, management expenses, etc. were controlled at a good level. This is a result of the company's transformation in recent years. The company will actively seize market opportunities, expand market share, achieve steady performance growth, continue to bring better returns to shareholders, and share the company's development results.