AAC Technologies (2018) H1 2026 earnings summary

Executive summary

• Revenue reached a record RMB14.51 billion in 1H 2026, up 8.9% year-over-year, driven by growth in acoustics, electromagnetic drives, automotive acoustics, and heat dissipation segments.

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

• Net profit attributable to owners increased 2.9% to RMB901 million; underlying net profit growth excluding fair value gains/losses was 37.4%.

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

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

Financial highlights

• EBITDA for the 12 months ended June 2026 increased 6.3% to RMB6.28 billion.

• Free cash flow for 1H 2026 was RMB877 million.

• R&D expenses rose 21.4% year-over-year to RMB1.21 billion, representing 8.4% of revenue.

• CapEx for 1H 2026 was RMB1.23 billion, with a focus on heat dissipation; second half CapEx expected to be lower.

• Cash and cash equivalents at period end stood at RMB7.07 billion.

Outlook and guidance

• Management expects double-digit revenue and gross profit margin growth for the full year, with gross margin projected to rise from 22.4% to 30% year-over-year.

• Focus on leveraging AI advancements, expanding into edge AI hardware, data center liquid cooling, XR, robotics, and intelligent cockpits.

• 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.

• Wearable AI devices expected to contribute RMB1 billion in revenue next year.