AAC Technologies (2018) investor relations material

Executive summary

• Revenue reached a record RMB14.51 billion in H1 2026, up 8.9% year-over-year, driven by growth in acoustics, electromagnetic drives, automotive acoustics, and heat dissipation segments.

• Net profit attributable to owners was RMB901 million, up 2.9% year-over-year; adjusted net profit (excluding fair value changes) rose 37.4%.

• Gross profit rose 17.8% to RMB3.24 billion, with gross margin improving to 22.4%–28.6% due to favorable product mix and operational efficiency.

• Strong operating cash flow of RMB1.91 billion and cash on hand of RMB7.07 billion support ongoing innovation and disciplined capital expenditure.

• Diversified business portfolio and innovation drove growth, with significant expansion in heat dissipation, robotics, and new technology segments.

Financial highlights

• Revenue: RMB14.51 billion (+8.9% YoY); Gross profit: RMB3.24 billion (+17.8% YoY); Net profit: RMB901 million (+2.9% YoY); adjusted net profit up 37.4%.

• Gross margin improved to 22.4%–28.6% (+1.7ppts YoY); net profit margin: 6.2%.

• R&D expenses increased 21.4% to RMB1.21 billion, reflecting investment in heat dissipation, AR/VR, and AI-enabled devices.

• Operating cash flow was RMB1.91 billion; CapEx RMB1.23 billion; cash and equivalents at period end RMB7.07 billion.

• Cash turnover cycle improved by 30 days to under 20 days.

Outlook and guidance

• Management expects double-digit revenue and gross profit margin growth for the full year, with easing margin pressure in automotive acoustics as new projects ramp up.

• Continued growth anticipated in heat dissipation, robotics, and optical communications cooling, with mass production of new products planned.

• Liquid cooling sector revenue expected to reach RMB1 billion in 2027, with CDU business targeting RMB600–800 million.

• Robotics sector revenue forecasted at RMB400–700 million in 2027, with potential to reach RMB1 billion by 2028.

• WLG-based optical components for data centers expected to enter mass production in 2H 2027.