AAC Technologies (2018) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 22.0% year-over-year to RMB 11.25 billion, a record high since listing, driven by smartphone sector recovery, improved product mix, and the consolidation of Premium Sound Solutions (PSS).

• Net profit surged 257.3% year-over-year to RMB 537 million, with gross margin up 7.4 percentage points to 21.5%.

• Gross profit was RMB 2.42 billion, up 86.4% year-over-year; net profit margin improved to 4.8%.

• PSS acquisition contributed RMB 1.52 billion in revenue and a 25.0% gross margin, accelerating diversification into automotive and consumer acoustics.

• No interim dividend declared; final dividend payout ratio remains at 15%.

Financial highlights

• Operating net cash inflow was RMB 2.65 billion, up 29.1% year-over-year; free cash flow reached RMB 1.93 billion.

• EBITDA for the 12 months ended June 2024 increased 17.1% to RMB 4.72 billion.

• R&D expenses rose 40.6% year-over-year to RMB 949 million, representing 8.4% of revenue.

• Inventory turnover days improved by 9 days to 71 days compared to last year.

• Ending cash balance was RMB 7.81 billion as of 30 June 2024.

Segment performance

• Acoustics: Revenue up 4.1% year-over-year to RMB 3.46 billion; gross margin rose to 29.9%.

• PSS (Automotive & Consumer Acoustics): Revenue RMB 1.52 billion, gross margin 25.0%; strong growth in automotive sector and synergy with PSS.

• Optics: Revenue up 24.9% year-over-year to RMB 2.21 billion; gross margin improved to 4.7%.

• Electromagnetic & Precision Components: Revenue up 1.1% year-over-year to RMB 3.66 billion; gross margin 22.9%.

• Sensors & Semiconductors: Revenue declined 21.2% year-over-year to RMB 389 million; gross margin improved to 16.4%.