AAC Technologies Reports RMB 901 Million Net Profit in H1 FY2026, Gross Margin Increases to 22.4%

Core Financial Results

AAC Technologies released its H1 FY2026 results on September 24, 2025 (covering January to June 2026), with key facts:

Report Date: September 24, 2025
Total Revenue: RMB 14.506 billion, +8.9% YoY
Net Profit Attributable to Mother Company: RMB 901 million, +2.9% YoY
Gross Margin: 22.4%, up 1.7 percentage points YoY
Operating Cash Flow: RMB 1.914 billion, -33.84% YoY
Earnings Per Share: Both basic and diluted EPS at RMB 0.79
Asset-LiabilityRatio: 19.7%, indicating a conservative capital structure

Business Segment Performance: Clear Divergence

The company operates in five core areas—acoustics, electromagnetic transmission, optics, sensors & semiconductors, and precision components & thermal management—with applications across smartphones, smart vehicles, VR/AR, and smart home devices.

Acoustics & Electromagnetic Transmission led performance with RMB 6.012 billion revenue (+14.2% YoY) and 28.6% gross margin (+0.7 pp YoY), driven by rising market share in premium smartphones.

Automotive Acoustics posted RMB 2.23 billion (+23.1% YoY) but saw其 gross margin decline 3.2 percentage points to 20.1%, signaling margin pressure in the auto segment.

Optics declined 22.7% to RMB 2.05 billion with a persistently low 10.2% margin.

Precision Components & Thermal Management grew 12.5% to RMB 3.25 billion with margin expansion of 4.1 percentage points to 23.1%; thermal management revenue surged ~400% YoY, a standout performer.

Sensors & Semiconductors showed strong growth at 41.0% to RMB 858 million with margin improvement of 2.5 percentage points to 14.6%.

Key Contradiction: Momentum vs. Cash Flow

A notable contradiction emerges: despite revenue and profit growth alongside margin expansion, operating cash flow fell 33.84% YoY. This divergence suggests increased working capital needs—possibly due to receivables or inventory buildup—and warrants close monitoring of cash conversion improvements.

Growth Strategy: Betting on AI-Era Segments

AAC plans to leverage AI development, integrating acoustics and electromagnetic transmission capabilities toward AI endpoints, humanoid robots, and smart cockpits. Management expects multiple “billion-yuan” revenue potential segments to become primary growth drivers.

Investment Considerations

Consider Now: Long-term investors bullish on automotive acoustics, thermal management solutions, and sensor/semiconductor localization may find attractive entry points;
Wait and Watch: Those reliant on optics revenue should monitor structural recovery efforts;
Track Closely: Sustainability of 400% thermal management growth and cash flow improvement indicators.