On August 20, AAC TECH (02018) released its 2026 interim results in Singapore. The company posted first-half revenue of 14.51 billion yuan, up 8.9% year-on-year, while net profit increased 2.9% to 901 million yuan. Excluding other gains and losses related to fair value changes, net profit growth for the first half stood at 37.4%. This marks the third consecutive half-year period of record revenue for AAC TECH since pivoting toward AI-driven new businesses.

At the results briefing, CFO Guo Dan stated that AI-related ventures have become the primary engine driving the group's top-line growth. With new product lines such as CDU liquid cooling, WLG optical communications, AR waveguide lenses, and robot motors scaling up, the group's multi-engine growth model is accelerating, and the contribution from new businesses is set to expand further. Management expects full-year 2026 revenue to grow at a double-digit rate, with AI-related new business revenue projected to exceed 8 billion yuan in 2027.

Full-Year Revenue Expected to See Double-Digit Growth

Guo noted that despite external market pressures, management remains cautiously optimistic about the full year, expecting double-digit revenue growth with gross margin improving steadily from the 22.4% level. By segment, the acoustics and electromagnetic drives division is projected to achieve single-digit revenue growth for the full year, with gross margin expected to improve on the first-half level of 28.6%. The precision components and thermal management business is showing strong momentum, with full-year revenue growth forecast to exceed 30%. The segment's gross margin reached 23.1% in the first half and is expected to rise further in the second half.

The optics segment saw a year-on-year revenue decline due to industry conditions and customer mix, though overall gross margins remained stable. Plastic lenses and G+P lenses improved gross margins by more than 5 percentage points year-on-year, driven by yield and process optimization. The company is increasing the shipment mix of 6P and above high-end lenses while accelerating qualification with overseas customers. The sensors and semiconductor business is benefiting from AI-driven device upgrades, with full-year revenue growth expected between 15% and 20% and gross margins improving steadily. Automotive acoustics, which leverages system-level solutions spanning speakers, amplifiers, and tuning capabilities, is expected to grow revenue by 15%-20% this year despite a weak auto market, though gross margins may decline around 2 percentage points due to industry competition and product mix changes.

Establishing a Leadership Position in Global AI Thermal Management

The rapid evolution of the AI industry has fueled surging demand for thermal solutions. In the first half of 2026, AAC TECH's thermal management revenue reached 1.1 billion yuan, a remarkable 400% year-on-year increase. Guo stated that AAC TECH has firmly secured a top-tier position in global consumer electronics thermal management and ranks among the top three in China's AI server liquid cooling market. In consumer electronics, high-performance innovative vapor chambers continue to ramp up, with mass production preparations for next-generation products progressing smoothly. In the AI computing sector, AAC TECH is pursuing a dual-track strategy across domestic and international markets. Its subsidiary Yuandi Technology has achieved mass production of high-power centralized liquid cooling CDUs, with global batch deliveries underway at a monthly production capacity exceeding 600 units, placing it firmly in the industry's first tier.

Leveraging Proprietary WLG Technology to Enter Optical Communications

Guo highlighted that co-packaged optics (CPO), a key direction for next-generation high-speed optical interconnects, demands higher precision in optical path alignment, creating significant application scenarios for WLG technology. AAC TECH's proprietary wafer-level glass molding technology offers high precision, high consistency, and mass production scalability. The group is actively engaged in technical exchanges, factory audits, and sample submissions with leading overseas optical communications companies, including industry leaders supplying high-speed interconnect chips for AI and cloud infrastructure.

In the AR optics arena, AAC TECH has developed a one-stop optical system design and simulation solution combining waveguides and optical engines. Guo noted that AAC TECH has become the first company to achieve batch delivery of full-color optical engines and serve leading customers. In single-layer surface relief grating (SRG) waveguides, it is also the industry's first to achieve mass production using etching processes.

First-Time Integration of Acoustics and Electromagnetic Drives

Notably, to capitalize on AI industry opportunities, AAC TECH has merged its acoustics and electromagnetic drives divisions for the first time since its listing. The combined segment generated first-half revenue of 6.01 billion yuan, up 14.2% year-on-year, with a gross margin of 28.6%. During the reporting period, the segment achieved several key breakthroughs. Active cooling fan products passed customer certification and are expected to gradually become standard features in premium devices, with expansion into servers and robotics markets. Robot motors and modules secured design wins from multiple global top-tier customers, with some projects already in mass production. Additionally, AAC TECH is actively developing complete robot systems, with related projects expected to reach mass production by the end of 2026.

"The group's core advantage lies in platform technology plus scenario reuse," Guo said. The company will further deepen integration within the acoustics and electromagnetic drives segment, achieving synergy across technology, production capacity, and customer resources. While solidifying the consumer electronics foundation, AAC TECH aims to deliver composite solutions to emerging tracks such as automotive, humanoid robots, and AI terminals, continuously unlocking product value and long-term growth potential.

Robot Business Expected to Generate 400-700 Million Yuan in 2027

Discussing the pace of robotics industry development, Guo noted that the final form of embodied intelligence remains undetermined. Beyond humanoid robots, multiple forms including specialized task robots and desktop AI interaction devices are being explored, with significant differences in product maturity and commercialization timelines across scenarios. Leveraging its long-standing expertise in precision transmission, AAC TECH is building competitive moats around core robot components such as motors, shafts, and gimbals. The company has established deep collaborations with multiple overseas leading robot manufacturers, covering core component supply and joint technology development, enabling flexible adaptation to the differentiated needs of various robot forms. Based on the current project pipeline, Guo revealed that the group's robotics-related business is expected to generate 400-700 million yuan in 2027. As AI large models migrate to edge devices, multi-form robot applications will accelerate penetration and commercialization, driving faster growth in this sector over the coming years.

AI New Business Scale to Surpass 8 Billion Yuan Next Year

Addressing market concerns about memory chip price increases impacting the smartphone supply chain, Guo stated that despite industry headwinds, AAC TECH's traditional smartphone businesses still achieved stable-to-improving gross margins, thanks to solid core technology capabilities and continuous operational efficiency optimization. Guo further noted that based on first-half performance and internal second-half outlook, AAC TECH has effectively withstood the pressure from declining smartphone shipment volumes and navigated the impact of memory chip price hikes on the mobile supply chain.

Looking at the medium to long term, Guo disclosed growth expectations for new businesses, projecting that AI-related new business revenue could reach 8-9 billion yuan in 2027, serving as the group's core growth engine. Breaking this down by segment, VC vapor chamber and active cooling business is expected to reach approximately 5 billion yuan, AI devices and gimbal business around 1.5 billion yuan, CDU liquid cooling and cold plate business about 1 billion yuan, robot core components contributing 400-700 million yuan, new automotive acoustics initiatives around 500 million yuan, and WLG optical communications starting with approximately 100 million yuan in initial revenue.

"This 8-9 billion scale is just the beginning," Guo emphasized. The AI-driven industrial transformation is still in its early stages. The company's strategically positioned businesses, including edge AI hardware, data center liquid cooling, XR, robotics, and smart cockpit solutions, are expected to grow at a significantly faster pace than traditional businesses over the next 3-5 years, continuously releasing growth momentum.