Yealink recently released its 2023 annual report. During the reporting period, Yealink achieved operating income of 4.348 billion yuan, down 9.61% year-on-year, net profit of 2.010 billion yuan, down 7.69% year-on-year, overall gross profit margin of 65.72%, up 2.71 percentage points year-on-year, and overall net profit margin of 46.23%, up 0.96 percentage points year-on-year.
During the reporting period, due to the impact of the overseas environment, industry demand faced certain pressure, and Yealink's performance declined year-on-year, but it was still in a recovery trend from a quarterly perspective. Yealink believes that the continuous update and iteration of the current new generation of information technology not only stimulates enterprises to carry out in-depth digital transformation and intelligent transformation to expand the possibilities of productivity and creativity, but also provides a strong guarantee for the long-term and orderly improvement of quality and efficiency in the enterprise communication industry. In addition, Yealink insists on long-term R&D investment and innovation, continuously improves enterprise communication solutions, actively expands sales channels, and continuously enhances market competitiveness. Overall, short-term unfavorable factors do not change the medium- and long-term development logic of Yealink Networks, and Yealink Networks is confident in the prospects of the enterprise communications industry and the steady recovery of business growth.
Key accounting data and financial indicators
Key financial indicators by quarter
Judging from the month-on-month trend of operating income in the first and second half of 2023, the second half of the year increased by 12.76% compared with the first half of the year, showing a continuous trend of business improvement as a whole.
Since its establishment in 2001, Xiamen Yealink Network Technology Co., Ltd. is the world's leading provider of communication and collaboration solutions, focusing on the field of enterprise communications, providing intelligent and efficient unified communication solutions for global enterprise users. Yealink's existing one-stop smart office solutions gather the world's cutting-edge technologies and AI applications in the audio and video field, with smart office solutions, all-round terminals, and intelligent transformation as the three strategic directions, to provide enterprise users with intelligent, efficient, and secure new office models, and empower the intelligent digital development of enterprises.
Since its establishment more than 20 years ago, Yealink has always adhered to the business philosophy of focusing on segmentation, continuous investment, and global leadership, and taking product innovation and technological innovation as the source of sustainable development Cutting-edge technologies such as intelligence are applied to Yealink's solutions, based on full capabilities and scenarios, and continue to give new connotations to smart office solutions through AI technology.
During the reporting period, Yealink maintained continuous iteration and innovation of products, and continuously consolidated and improved its comprehensive competitiveness in products, innovation, and channels. In 2023, the total proportion of Yealink's web conferencing products and cloud office terminals will increase significantly, and the development strategy of the second and third growth curves will be effective.
Specifically:
The operating income of conference products was 1.466 billion yuan, a year-on-year increase of 12.81%, accounting for 33.71% of the operating income, an increase of 6.70 percentage points year-on-year, and the gross profit margin was 65.76%, an increase of 1.07 percentage points year-on-year. During the reporting period, Yealink took all capabilities and scenarios as the starting point, equipped AI technology in the solution, led the new experience of efficient and smart office, and launched a number of all-round terminals such as the ultra-clear split video conferencing terminal MeetingEye 500, the intelligent Android video conferencing all-in-one MeetingBar A10, and the desktop all-in-one terminal DeskVision A24. At the same time, Yealink has rapid market demand response capabilities and high-level R&D and innovation capabilities, and its products continue to move towards high-level intelligence, with obvious first-mover advantages, and it is expected that it will continue to maintain sufficient growth momentum in the future.
The operating income of cloud office terminals was 323 million yuan, a year-on-year decrease of 10.33%, accounting for 7.44% of the operating income, and the gross profit margin was 53.90%, an increase of 2.52 percentage points year-on-year. During the reporting period, Yealink continued to improve the competitiveness of the headset product line, completed the iterative upgrade of the BH series business Bluetooth headsets, and achieved good channel verification results. In the future, Yealink will continue to enrich the business headset product matrix, strengthen quality control, expand sales channels, and polish high-quality products with ingenuity, forge the competitiveness of business headset products, and is expected to achieve great development in the future.
The operating income of desktop communication terminals was 2.544 billion yuan, a year-on-year decrease of 19.11%, accounting for 58.52% of the operating income, and the gross profit margin was 67.40%, an increase of 3.64 percentage points year-on-year. During the reporting period, the relative decline of desktop communication terminals was mainly due to the shift in demand from the destocking cycle and the impact of the hybrid office trend in some industries. In the future, Yealink will actively grasp the opportunity of dynamic market adjustment, formulate accurate and effective strategies, and further consolidate its competitiveness and position in the industry based on technology and quality.
The overall situation of operating income
In terms of R&D, Yealink maintained a high level of R&D investment, reaching 499 million yuan, accounting for 11.48% of operating income. R&D personnel accounted for 51.77%. Yealink has always focused on forward-looking R&D and innovation, continuously polishing the core of the underlying audio and video technology, continuously improving product strength, and enhancing the long-term competitiveness of solutions. In the future, Yealink will continue to adhere to independent R&D and innovation, and continue to empower enterprise customers with digital transformation and innovation through the four capabilities of professional meetings, voice communication, efficient collaboration, and smart office, so as to provide enterprise users with smarter and more efficient communication and collaboration solutions.
Yealink's high-level R&D investment brings high-quality products with technological innovation. In 2024, Yealink will mainly launch a new generation of intelligent conference terminal products such as professional audio and video conference tablets, conference room series products, core cameras/microphones/speakers, and new headset products will also be launched in wired, DECT wireless and Bluetooth wireless categories, continuing to provide customers with a more convenient, efficient and immersive office collaboration experience.
In terms of sales, Yealink currently accounts for 6.34% of sales investment, and sales personnel account for 26.60%. In the future, Yealink will continue to build sales capabilities for large projects and "platform + intelligent hardware terminal" solutions, and at the same time continue to improve sales channels, continuously expand Pro AV and IT channels, and appropriately increase the proportion of foreign sales to enhance localization service capabilities.
Yealink actively repays investors, and plans to distribute cash dividends totaling RMB1.136 billion in 2023, increasing the annual dividend ratio to 56.52%. Coupled with the cash dividend of 631 million yuan distributed by the interim dividend in 2023, Yealink Network will distribute cash dividends of about 1.767 billion yuan in 2023, with an annual dividend ratio of 87.90%.
In recent years, the continuous update and iteration of a new generation of information technology represented by big data, artificial intelligence, cloud computing, and 5G have empowered the real economy and driven enterprises to complete digital transformation. There is also a growing willingness to apply digital technologies to business processes and service innovation. Advanced and efficient communication and collaboration methods will increasingly become an important feature and source of competitive advantage for enterprises in the digital era, and enterprises need to update their workplace design and facilities, and improve the flexibility of their work areas to adapt to digital needs. Driven by the wave of digitalization in office scenarios, the demand for enterprise communication solutions has further increased, and the overall level of digitalization and intelligence of enterprises has gradually improved.
Yealink said that in the future, it will continue to adjust and optimize the solution according to industry trends and market demand, focus on R&D, refine products, and provide more intelligent and efficient digital communication and collaboration solutions to meet the continuous improvement and iteration of the unified communication market demand. Yealink will take "full-scenario coverage, all-round terminals, and intelligent transformation" as its three strategic directions, keep pace with the pace of the times, continue to empower enterprise customers with digital transformation and innovation through the four capabilities of professional conferences, voice communication, efficient collaboration, and smart office, polish more professional intelligent audio and video equipment, expand and improve industry-wide and all-scenario communication and collaboration solutions, and help enterprises win new productivity advantages in the era of artificial intelligence and the tide of digital economy. At the same time, Yealink will continue to build sales capabilities for large projects and "platform + intelligent hardware terminal" solutions to further enhance Yealink's long-term competitiveness.