AAC Technologies (2018) H2 2023 earnings summary

Executive summary

• FY2023 revenue was RMB20.42bn, down 1.0% YoY; gross margin was 16.9%, down 1.4 ppts, and net profit was RMB740mn, down 9.9%.

• 2H revenue was RMB11.20bn, flat YoY and up 21.5% HoH; gross margin rose 1.4 ppts YoY to 19.2%, and net profit increased 25.2% YoY to RMB590mn.

• Record five-year-high operating cash flow and the completed first tranche of the PSS acquisition were notable developments.

Financial highlights

• FY2023 revenue was RMB20.42bn, down 1.0% YoY; net profit was RMB740mn, down 9.9% YoY.

• 2H revenue was RMB11.20bn, flat YoY and up 21.5% HoH; net profit was RMB590mn, up 25.2% YoY.

• FY gross margin was 16.9%, down 1.4 ppts YoY; 2H gross margin was 19.2%, up 1.4 ppts YoY and 5.1 ppts HoH.

Outlook and guidance

• Strategy focuses on advancing smartphone acoustics, optics, EMD and precision mechanics products, alongside expansion into automotive acoustics and EV-related opportunities through PSS.

• PSS integration is intended to combine existing products, services and solutions and accelerate penetration of the global automotive industry.