AAC TECH (02018) CFO Guo Dan: Revenue is expected to grow by double digits in 2026, and the AI new business is expected to exceed 8 billion next year.

On August 20, AAC TECH (02018) released its mid-term performance report for 2026 in Singapore. The company's revenue for the first half of the year was RMB 14.51 billion, an increase of 8.9% year-on-year, and net profit rose by 2.9% to RMB 901 million. After excluding other income and losses related to fair value adjustments, the net profit growth rate for the first half of the year was 37.4%. This marks the third consecutive year that AAC TECH has achieved a historical high in semi-annual revenue since its transformation towards AI new business. AAC TECH's CFO Guo Dan stated at the results conference that the AI new business has become the core driving force behind the group's revenue growth. As new businesses such as CDU liquid cooling, WLG optical communication, AR optical waveguide lenses, and Siasun Robot & Automation motors ramp up production, the group's multi-faceted growth pattern is accelerating, and the contribution from new businesses is expected to expand further. The company anticipates achieving double-digit revenue growth for the full year of 2026, with the AI new business scale expected to exceed RMB 8 billion by 2027. Full-year revenue is expected to have double-digit growth. Guo Dan expressed a cautiously optimistic outlook for the full-year operations in light of the pressure from the external market environment, predicting double-digit revenue growth for the year, with a steady increase in gross margin, starting from 22.4%. Looking at the different business segments, the acoustics and electromagnetic drive division is expected to achieve single-digit revenue growth for the full year, with gross margin likely to continue improving beyond the first half's 28.6%. The precision structural parts and thermal management business demonstrates robust growth momentum, with projected revenue growth exceeding 30% for the year. This segment's gross margin reached 23.1% in the first half, with further improvement expected in the second half. The optical segment has experienced revenue declines year-on-year due to industry conditions and customer structure, but the overall gross margin remains stable. The plastic lens and G+P lens segments saw a more than 5 percentage point increase in gross margin year-on-year, thanks to yield and process optimizations. The company is increasing the proportion of shipments for high-end lenses with 6P or more and is expediting the certification process for overseas clients. The sensor and semiconductor business benefits from AI-driven upgrades of terminal devices, with expected revenue growth of 15%-20% for the year and steady improvements in gross margin. The automotive acoustics segment, reliant on systematic solutions for speakers, amplifiers, and tuning capabilities, anticipates revenue growth of 15%-20% for the year amidst a weaker overall automotive market; however, gross margins may drop about 2 percentage points year-on-year due to industry competition and changing product structures. Becoming a leader in global AI thermal management The rapid evolution of the AI industry has sparked a surge in thermal management needs, with AAC TECH's thermal revenue reaching RMB 1.1 billion in the first half of 2026, marking a significant year-on-year increase of 400% and demonstrating strong growth momentum. Guo Dan stated at the results conference that AAC TECH has firmly established itself among the leading players in the global consumer electronics thermal management sector, while also ranking among the top three in China's AI server liquid cooling market. In the consumer electronics field, the company's high-performance innovation of the uniform temperature plate continues to ramp up, and preparations for mass production of the next-generation products are progressing smoothly. In the AI computing sector, AAC TECH is implementing a strategy that advances both domestic and international markets, with its subsidiary Yuandi Technology achieving mass production of high-power centralized liquid cooling CDU and initiating global bulk deliveries, with a monthly delivery capacity exceeding 600 units, securing its position in the industry's top tier. Unique WLG technology enters the optical communication space Guo Dan introduced that CPO, as an important technological direction for the next generation of high-speed optical interconnect, imposes higher requirements on optical path alignment and opens up significant application scenarios for WLG technology. AAC TECH's proprietary WLG wafer-level glass molding technology boasts advantages such as high precision, high consistency, and scalable mass production. The group is actively engaging in technical communication, factory audits, and sample submissions with leading overseas optical communication companies, including industry leaders that provide high-speed interconnection chips for AI and cloud infrastructure. In the AR optics arena, AAC TECH has developed a one-stop optical system design and simulation solution featuring "optical waveguide + light engine." Guo Dan noted that AAC TECH has become the first company to achieve mass delivery of full-color light engines, servicing leading clients. Additionally, in the area of single-layer surface-relief diffractive waveguides (SRG), it is the first company in the industry to realize mass production of the etching process. First integration of acoustics and electromagnetic drive businesses It's worth noting that to seize the development opportunities in the AI industry, AAC TECH has merged its existing acoustics segment with the electromagnetic drive segment, marking the first organizational integration of the two core business segments since its listing. Post-integration, this segment achieved revenue of RMB 6.01 billion in the first half of the year, a year-on-year increase of 14.2%, with a gross margin of 28.6%. During the reporting period, several new projects within this segment made critical breakthroughs. The active cooling fan product line has successfully passed customer certification and is expected to gradually become standard equipment for high-end models, while expanding into markets such as servers and Siasun Robot & Automation. Siasun Robot & Automation's motors and modules secured several targeted projects with global leading customers, with some projects already entering mass production stages. Furthermore, AAC TECH is actively developing Siasun Robot & Automation's complete machine business, with related projects expected to achieve mass production by the end of 2026. "One of the group's core advantages is a platform technology combined with scenario reuse," Guo Dan stated, adding that the group will further promote the deeper integration of the acoustics and electromagnetic drive segments to achieve collaborative synergy in technology, production capacity, and customer resources. While solidifying its foundation in consumer electronics, it will also provide composite solutions for new tracks such as automotive, humanoid Siasun Robot & Automation, and AI terminals, continuously digging into product value-added space and unlocking long-term growth potential. Siasun Robot & Automation business revenue expected to reach RMB 400 million to 700 million by 2027 Regarding the development pace of the Siasun Robot & Automation industry, Guo Dan believes that the ultimate form of embodied intelligence has yet to be determined. In addition to humanoid Siasun Robot & Automation, various forms such as specialized scenario Siasun Robot & Automation and desktop AI interaction devices are being explored simultaneously, with significant differences in product maturity and commercialization pace across different scenarios. Leveraging its long-term technological accumulation in precision transmission, the company is building capability barriers around various core components for Siasun Robot & Automation, including motors, axles, and gimbals, and has established deep cooperation with several leading overseas Siasun Robot & Automation manufacturers across multiple levels, covering core component supply and joint technology development, allowing flexible adaptation to the differentiated demands of various forms of Siasun Robot & Automation. Guo Dan disclosed that, based on the current project reserves, the groups Siasun Robot & Automation-related business scale is expected to reach RMB 400 million to 700 million by 2027. In the future, with the migration of AI large models to the edge and accelerated penetration and commercialization of multiple Siasun Robot & Automation application scenarios, this track is likely to see faster growth in the coming years. Next year, AI new business scale is expected to exceed RMB 8 billion. Addressing market concerns about the impact of storage chip price increases on the smartphone supply chain, Guo Dan stated that despite industry pressures, AAC TECH's traditional business in the smartphone sector has still achieved stable increases in gross margins, attributed to the company's strong core technological foundation and continuous optimization of internal operational management efficiency. Guo Dan further pointed out that, based on the first half's operational performance and outlook for the second half, AAC TECH has effectively countered the pressure of declining shipment volumes in the smartphone industry and has adeptly responded to the impacts of the recent storage chip price rises on the smartphone supply chain. Looking forward to medium- and long-term development, Guo Dan revealed growth expectations for new businesses, predicting that by 2027, the overall scale of the company's AI-related new businesses is expected to reach RMB 8 billion to 9 billion, becoming the core growth engine of the group. Breaking down by business, the scale of VC uniform temperature plates and active cooling business is anticipated to reach around RMB 5 billion by 2027, with AI devices and gimbal business projected at approximately RMB 1.5 billion, CDU liquid cooling and liquid plate business around RMB 1 billion, Siasun Robot & Automation core components business contributing RMB 400 million to 700 million, automotive acoustics new layout business about RMB 500 million, and WLG optical communication business also set to achieve approximately RMB 100 million in initial revenue. "This RMB 8 billion to 9 billion scale is just the beginning," Guo Dan emphasized, noting that the AI-driven industrial transformation has only just begun. The new businesses that the company is focusing on, such as edge AI hardware, data center liquid cooling, XR, Siasun Robot & Automation, and smart cockpits, will see growth rates in the next 3-5 years far exceeding those of traditional businesses, likely continuing to unleash growth momentum.