Financial Performance - The company's total revenue for the first half of 2024 reached RMB 11.247 billion, representing a year-on-year increase of 22.0%[4] - Gross profit for the same period was RMB 2.418 billion, with a gross margin of 21.5%, up 7.4 percentage points from the previous year[4] - Net profit surged to RMB 537 million, reflecting a significant year-on-year growth of 257.3%[4] - Operating cash inflow was RMB 2.65 billion, an increase of 29.1% compared to the previous year[7] - In the first half of 2024, the company's revenue increased by RMB 2.03 billion to RMB 11.25 billion, driven by an increase of RMB 1.51 billion from PSS-related businesses and a revenue growth of RMB 517 million from existing businesses[20] - The gross profit for the first half of 2024 was RMB 2.42 billion, an increase of 86.4% compared to RMB 1.30 billion in the first half of 2023, primarily due to additional gross profit contributions from PSS-related businesses of RMB 384 million[21] - The gross margin improved from 14.1% in the first half of 2023 to 21.5% in the first half of 2024, with all business segments showing improved profit margins[21] - The company reported a pre-tax profit of RMB 627,926 thousand for the six months ended June 30, 2024, compared to RMB 174,832 thousand in 2023, marking an increase of 259.5%[60] - The net profit attributable to the company's owners for the first half of 2024 was RMB 537 million, more than 2.5 times higher than RMB 150 million in the first half of 2023[28] Business Segments - The acoustic business generated revenue of RMB 3.46 billion, a year-on-year growth of 4.1%, with a gross margin of 29.9%[8] - The optical business achieved revenue of RMB 2.21 billion, up 24.9% year-on-year, with a gross margin improvement to 4.7%[12] - The PSS-related business contributed RMB 1.52 billion in revenue, with a gross margin of 25.0%[11] - The electromagnetic transmission and precision components segment reported revenue of RMB 3.66 billion, a year-on-year increase of 1.1%[13] - The sensor and semiconductor business reported revenue of RMB 389 million in the first half of 2024, a decline of 21.2% year-on-year, mainly due to project delays[17] - Revenue from thermal products nearly doubled year-on-year to RMB 150 million in the first half of 2024[16] - Revenue for the Greater China region increased to RMB 6,133,618,000 for the six months ended June 30, 2024, compared to RMB 4,509,060,000 for the same period in 2023, representing a growth of approximately 36%[80] Cash Flow and Investments - The net cash inflow from operating activities was RMB 2.65 billion in the first half of 2024, compared to RMB 2.05 billion in the same period of 2023[31] - Net cash used in investment activities for the first half of 2024 was RMB 2.444 billion, significantly up from RMB 0.504 billion in the same period of 2023[35] - Capital expenditures for the first half of 2024 totaled RMB 916.8 million, compared to RMB 616.1 million in the first half of 2023[36] - The group recorded a net cash inflow from financing activities of approximately RMB 729.8 million in the first half of 2024, with bank loans raised amounting to RMB 2.260 billion[37] - As of June 30, 2024, the group had cash and cash equivalents of RMB 7.806 billion, an increase from RMB 6.825 billion as of December 31, 2023[38] Financial Position - Total assets as of June 30, 2024, amounted to RMB 32,401,426 thousand, an increase from RMB 28,781,395 thousand as of December 31, 2023[64] - The company's non-current liabilities increased to RMB 9,724,327 thousand from RMB 6,410,126 thousand as of December 31, 2023, representing a growth of approximately 51.5%[65] - The debt-to-asset ratio as of June 30, 2024, was 23.7%, up from 22.6% as of December 31, 2023[39] - The company’s total liabilities increased to RMB 7,124,469,000 as of June 30, 2024, from RMB 5,796,468,000 as of December 31, 2023, representing an increase of about 22.9%[119] Shareholder Returns - The company will not pay an interim dividend, maintaining a payout ratio of 15% for the final dividend[7] - The final dividend per share for the six months ended June 30, 2024, is HKD 0.10, down from HKD 0.12 for the same period in 2023, totaling HKD 119,850,000 (approximately RMB 108,932,000) for this period[8]. Strategic Initiatives - The company aims to solidify its position as a global leader in perception experience solutions through technological innovation and interdisciplinary product development[19] - The company is diversifying its revenue sources by expanding into the electric vehicle market through a major acquisition, reducing dependence on the smartphone market[44] - Significant investments in research and development are planned to establish a sustainable technology development blueprint and intellectual property portfolio[49] - The company has formed a Sustainability Committee and implemented a comprehensive climate change policy to manage climate impacts through mitigation, adaptation, and resilience strategies[52] Risk Management - The group’s reliance on its top five customers, which accounted for 67.3% of total revenue in the first half of 2024, poses a significant risk to its business[45] - The company faces production disruptions due to unforeseen events and supply chain difficulties, which may lead to increased commodity prices and pressure on profit margins[47] - The company faces foreign exchange risks due to international operations, with sales primarily denominated in USD while reporting in RMB[54] - The company aims to achieve natural hedging by matching revenue and expenses in the same currency, and will use appropriate foreign exchange contracts to mitigate risks when necessary[56] Corporate Governance - The company’s board believes that effective corporate governance is essential for long-term development and value creation, and it has complied with all corporate governance code provisions during the first half of 2024[171] - The company has adopted a more stringent code of conduct for securities trading by directors and related employees compared to the standard code outlined in the Hong Kong Listing Rules[185] Employee and Share Incentives - The company has established an equity incentive plan to attract top talent and incentivize employee contributions to business development[181] - The total number of restricted shares held for eligible participants as of June 30, 2024, was 102,013,127 shares, an increase from 78,162,133 shares as of December 31, 2023[148] - The company incurred share-based payment expenses of RMB 27,215,000 for the six months ended June 30, 2024, compared to RMB 3,065,000 for the same period in 2023[149]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional va ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Another valuation metric that we should highlight is AACAY's P/B ratio of 1.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks so ...

R&D and Innovation - AAC Technologies invested 7.7% of its revenue in R&D in 2023, with 3,961 R&D personnel and 5,938 patents granted as of December 31, 2023[12] - The company operates 18 R&D centers globally and has 2,298 patents pending[12] - AAC Technologies focuses on diversified development in smartphones, smart cars, AR/VR, industrial, and semiconductor sectors[10] - The company's core strategy is "dual-wheel drive": advanced R&D + precision manufacturing[11] - AAC Technologies aims to lead market innovation and enhance user experience through high-value precision manufacturing[11] - R&D expenses as a percentage of revenue increased by 0.2 percentage points year-on-year to 7.7%[17] - R&D expenses increased by 1.8% to RMB 1.573 billion in 2023, driven by increased R&D activities for automotive and AR/VR new businesses[39] Financial Performance - Revenue for 2023 was RMB 20,419 million, a year-on-year decrease of 1.0%[16] - EBITDA for 2023 was RMB 4,183 million, a year-on-year decrease of 1.6%[16] - Free cash flow for 2023 increased by 51.0% year-on-year to RMB 3,805 million[16] - Capital expenditure as a percentage of EBITDA decreased by 10.5 percentage points year-on-year to 33.0%[16] - Net profit attributable to shareholders for 2023 was RMB 390.8 million, a year-on-year decrease of 9.9%[17] - Gross margin for 2023 was 16.9%, a decrease of 1.4 percentage points year-on-year[17] - Revenue for H2 2023 was RMB 11.2 billion, flat YoY, with a gross margin of 19.2%, up 1.4 percentage points YoY and 5.1 percentage points QoQ[27] - Net profit for H2 2023 was RMB 590 million, up 25.2% YoY, while full-year 2023 revenue was RMB 20.42 billion, down 1.0% YoY[27] - Capital expenditure for 2023 was RMB 1.38 billion, down 25.4% YoY, with inventory turnover days reduced from 109 days in 2022 to 80 days in 2023[27] - Operating cash inflow reached RMB 4.63 billion, a 5-year high, with free cash flow hitting a record RMB 3.81 billion, and cash on hand at RMB 6.82 billion[25] - Net profit attributable to shareholders decreased by 9.9% to RMB 740 million in 2023, down from RMB 821 million in 2022, primarily due to lower gross profit[42] - EBITDA decreased by 1.6% to RMB 4.183 billion in 2023, compared to RMB 4.251 billion in 2022[43] - Net cash generated from operating activities increased to RMB 4.6325 billion in 2023, up from RMB 4.372 billion in 2022[44] - Inventory turnover days decreased from 109 days in 2022 to 80 days in 2023, with inventory reduced by RMB 1.41 billion[47] - Capital expenditures totaled RMB 1.3785 billion in 2023, down from RMB 1.8475 billion in 2022, focusing on sustainable capital expenditure plans for new market opportunities[49] - Net cash used in financing activities increased to RMB 3.1706 billion in 2023, up from RMB 1.4387 billion in 2022, mainly due to bank loan repayments and share repurchases[50] - Cash and cash equivalents, including short-term deposits, stood at RMB 6.8245 billion as of December 31, 2023, with 65.2% denominated in USD[51] - Asset-liability ratio decreased to 22.6% as of December 31, 2023, compared to 23.9% in 2022[52] - Net asset-liability ratio, after deducting cash and cash equivalents and short-term time deposits, was 5.1% as of December 31, 2023, down from 6.2% in 2022[52] - Unsecured bonds amounted to RMB 5,619.7 million as of December 31, 2023, a decrease from RMB 6,087.8 million in 2022[52] - Short-term bank loans were RMB 1,463.9 million as of December 31, 2023, down from RMB 1,832.6 million in 2022[52] - Long-term bank loans were RMB 1,726.0 million as of December 31, 2023, slightly down from RMB 1,727.2 million in 2022[52] Business Diversification and Acquisitions - The company has been expanding its non-acoustic business, with touch motors and RF structural components contributing 20% of revenue for the first time in 2014[23] - The company acquired Acoustics Solutions International B.V. and WiSpry, a US company with RF MEMS technology, in 2016[24] - The company acquired Premium Sound Solutions (PSS) to enhance its automotive audio system solutions and expand global market penetration[25] - The company plans to focus on lightweight, high-performance, and innovative solutions in 2024, targeting consumer electronics, automotive, AR/VR, and AI-enabled fields[25] - The company completed the acquisition of Acoustics Solutions International B.V., which will be consolidated into the group's financial performance, aiming to diversify into the automotive industry and enhance audio solutions[34] - The company is expanding its XR technology layout, with XR acoustic solutions already shipped to several global XR leaders, and is advancing AR/VR optical solutions with partners like Dispelix[34] - Strategic acquisition of Premium Sound Solutions (PSS) in 2023, marking a significant milestone for the automotive audio division[69] - The first batch of the PSS acquisition was completed on February 9, 2024, with the target company becoming an 80% owned indirect subsidiary[88] - The total consideration for the repurchase of optical shares was approximately RMB 1,449 million, representing 7.1670% equity in Chenrui Optics[90] - The first batch purchase price for the PSS acquisition included $320,000,000 plus interest at an annual rate of 6.75% from the effective date to the completion date[87] - The second batch purchase price for the PSS acquisition is capped at $204,613,000 plus interest, with completion expected around mid-2025, mid-2026, or mid-2027 depending on the effective date[89] - Following the optical shares repurchase, the company indirectly holds approximately 88.2620% of Chenrui Optics[90] - The PSS acquisition is a strategic move to accelerate the company's diversification in the automotive industry and enhance its acoustic solutions portfolio[89] Product and Market Performance - Shipments of glass-plastic hybrid lenses reached nearly 8 million units by the end of 2023, with precision component revenue growing over 30% YoY[25] - The company's SLS master-level speakers achieved shipments exceeding 10 million units, driven by innovative design and algorithm solutions[28] - Optical business revenue in H2 2023 reached RMB 1.86 billion, a YoY increase of 36.0% and a QoQ increase of 4.8%, with a gross margin of -9.2%, improving by 20.5 percentage points YoY and 7.8 percentage points QoQ[29] - Shipment of 5P and above high-spec lenses increased by approximately 48% YoY to over 350 million units, accounting for nearly 70% of total shipments, with 6P lenses making up about 14%, up 5 percentage points YoY[29] - Electromagnetic transmission and precision components business revenue in H2 2023 was RMB 4.63 billion, a YoY increase of 6.5% and a QoQ increase of 27.8%, with a gross margin of 20.7%, down 1.3 percentage points YoY but up 1.4 percentage points QoQ[30] - Metal frame revenue grew by 34.3% YoY in 2023, with both shipment volume and ASP achieving double-digit growth, maintaining leading market share in high-end and flagship models[32] - Sensor and semiconductor business revenue in H2 2023 was RMB 531 million, a YoY decrease of 31.7% but a QoQ increase of 7.5%, with a gross margin of 15.7%, up 5.3 percentage points YoY and 4.4 percentage points QoQ[33] - Total group revenue in 2023 decreased by 1.0% YoY to RMB 20.42 billion, with declines in acoustic and sensor & semiconductor businesses partially offset by growth in electromagnetic transmission, precision components, and optical businesses[35] - Gross profit decreased by 8.6% to RMB 3.45 billion in 2023, down from RMB 3.78 billion in 2022, primarily due to market competition in the acoustics and optics businesses[36] - Gross margin declined from 18.3% in 2022 to 16.9% in 2023, mainly due to reduced sales in the higher-margin acoustics business[36] Corporate Governance and Leadership - Pan Zhengmin, the CEO, has significant experience in sales, marketing, production, and technology R&D, contributing to the development of patented technologies for acoustic products[62] - Mo Zuquan, an executive director, oversees overall business operations, focusing on sustainability, internal audit, and risk management, with over 20 years of experience in the financial services industry[63] - Wu Chunyuan, a non-executive director and co-founder, does not participate in the company's daily operations[64] - Zhang Hongjiang, an independent non-executive director, holds multiple prestigious positions including being an independent director at Huami Technology and XPeng Motors, and has extensive experience in technology and investment sectors[65] - Guo Lin Guang, an independent non-executive director, serves on the boards of several listed companies including Café de Coral Group and China Oilfield Services, and has a strong legal and financial background[66] - Peng Zhiyuan, an independent non-executive director, has over 20 years of experience in corporate finance and management, currently serving as Global Strategy Officer at Sands Capital Management[67] - Zhang Hongjiang holds a Ph.D. in Electronic Engineering from the Technical University of Denmark and has received numerous awards including the 2012 ACM Multimedia Outstanding Technical Achievement Award[65] - Guo Lin Guang holds a Master of Laws from the University of Sydney and has served in various government advisory roles, including as Chairman of the Transport Advisory Committee[66] - Peng Zhiyuan holds an MBA from the University of Virginia Darden School of Business and has held senior positions at Goldman Sachs and Morgan Stanley[67] - Zhang Hongjiang previously served as CEO and Executive Director of Kingsoft Cloud and has significant experience in the tech industry, including roles at Microsoft[65] - Guo Lin Guang is a qualified lawyer in multiple jurisdictions including Hong Kong, Australia, and England & Wales, and has served as a partner at several international law firms[66] - Peng Zhiyuan is a board member of the University of Virginia Health System and has experience in founding and leading an innovative environmental technology company[67] - Guo Lin Guang was appointed as a director of the Hong Kong Capital Market Practitioners Association, effective October 3, 2023[67] - The board proposed a final dividend of HKD 0.10 per share for 2023, with a dividend payout ratio of 15%, consistent with 2022[27] - The company's distributable reserves amounted to RMB 1,410,894,000, an increase from RMB 1,102,177,000 in 2022[76] - The company's total issued shares as of December 31, 2023, were 1,198,500,000[82] - Pan Zhengmin, the CEO, beneficially owns 70,262,162 shares, with additional interests through related entities totaling 497,917,652 shares, representing 41.54% of the company's issued shares[82] - Wu Chunyuan, a non-executive director, is deemed to have interests in 497,917,652 shares, representing 41.54% of the company's issued shares[83] - Mo Zuquan, an executive director, holds 279,195 shares, representing 0.02% of the company's issued shares[80] - The company's property, plant, and equipment details are disclosed in Note 14 of the consolidated financial statements[76] - The company's share capital changes are detailed in Note 34 of the consolidated financial statements[77] - The company's directors and senior management profiles are listed on pages 23 to 30 of the annual report[79] - The company confirmed the independence of its non-executive directors as per Hong Kong Listing Rule 3.13[79] - The company successfully repurchased $111,182,000 of the 2024 bonds, reducing the outstanding principal amount to $276,818,000[84] - The 2024 bonds bear an annual interest rate of 3.00%, with interest payments made semi-annually on May 27 and November 27[84] - The company signed a total lease agreement for office and production facilities in Shenzhen, covering an area of 11,631 square meters, with an expected annual rent of RMB 15.64 million for 2023[93] - A lease agreement for factory and warehouse facilities in Changzhou covers 10,385 square meters, with an annual rent of RMB 1.777 million for 2023[93] - The company leased 5,685 square meters of office space in Jiangsu, with an expected rent of RMB 791,000 for 2023[93] - A lease agreement in Vietnam covers 3,344 square meters, with an annual rent of USD 160,600 for 2023[93] - The company entered into a total procurement agreement with suppliers, with an annual cap of RMB 140 million for materials such as foam blocks and plastic sheets[95] - Another procurement agreement for acoustic and optical components has an annual cap of RMB 90 million[95] - The company ensured fair pricing by obtaining quotes from at least two independent third-party suppliers for procurement agreements[95] - The lease and procurement agreements were negotiated under fair commercial terms, ensuring favorable conditions for the company[95] - The company disclosed the relationships with related parties involved in the lease and procurement agreements, including ownership details[97] - Chenrui Optics provided a revolving loan of up to RMB 74,000,000 to Tianjin Chengrui, with a maximum outstanding balance of RMB 83,000,000 over a three-year period[98] - The loan interest rate is based on the one-year Loan Prime Rate (LPR) of 3.45% as of the loan agreement date, calculated on a 360-day basis[98] - In 2023, the actual loan amount provided was RMB 19,191,000, including a principal of RMB 19,134,000 and interest of RMB 57,000[99] - Tianjin Chengrui is a related party under Hong Kong Listing Rules, and the loan agreement constitutes a continuing connected transaction[100] - The internal audit department reviewed the related party transactions and confirmed the effectiveness of the internal control system[101] - Independent non-executive directors confirmed that the transactions were conducted on fair and reasonable terms, in the best interests of the company and shareholders[102] - JPMorgan Chase & Co. held 11.32% of the company's issued shares as of December 31, 2023[105] - JPMorgan Chase & Co. holds a total of 133,378,882 shares in long positions, including 60,000 shares in cash-settled listed derivatives and 1,445,854 shares in physically-settled unlisted derivatives, along with 865,000 shares in cash-settled unlisted derivatives[106] - JPMorgan Chase & Co. also holds 12,041,951 shares in short positions, including 1,244,000 shares in physically-settled listed derivatives, 172,000 shares in cash-settled listed derivatives, 221,399 shares in physically-settled unlisted derivatives, and 2,750,095 shares in cash-settled unlisted derivatives[106] - JPMorgan Chase & Co. has an interest in 7,799,243 shares available for lending under the Securities and Futures Ordinance[106] - The 2016 Share Award Plan allows the company to award up to 1.65% of its issued share capital, which amounts to 19,775,250 shares as of March 21, 2024[109] - Under the 2016 Share Award Plan, the maximum number of shares that can be awarded to any single selected employee is 0.5% of the company's issued share capital, equivalent to 5,992,500 shares as of March 21, 2024[109] - From the adoption of the 2016 Share Award Plan until December 31, 2023, a total of 10,230,593 shares were awarded to 340 employees, with 2,722,799 shares and 2,627,518 shares vested on March 24, 2023, and March 24, 2024, respectively[111] - As of December 31, 2023, the 2016 Share Award Plan trustee held a total of 17,210,645 unvested shares, with 11,462,239 shares remaining available for further awards[111] - The total number of shares available for award under the 2016 Share Award Scheme as of January 1, 2023, was 10,262,235 shares, and the remaining shares available for further awards as of December 31, 2023, were 11,462,239 shares[112] - In 2022, 340 employees were granted 10,230,593 award shares under the 2016 Share Award Scheme, with performance targets set at both organizational and individual levels[113] - The 2023 Share Award Plan allows for a maximum of 45,000,000 shares to be awarded, representing approximately 3.75% of the company's issued share capital as of March 21, 2024[115] - As of December 31, 2023, the 2023 Share Award Plan trustee held a total of 9,119,000 shares purchased from the Hong Kong Stock Exchange for the plan[115] - The company's subsidiary, Chenrui Optics, has a subsidiary equity incentive plan aimed at attracting top talent and rewarding contributions to business development[116

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 20.42 billion, a slight decrease of 1.0% compared to RMB 20.63 billion in 2022[4]. - The company's net profit for 2023 was RMB 740 million, down 9.9% from RMB 821 million in the previous year, with a net profit margin of 3.6%[4][11]. - Gross profit for 2023 was RMB 3.45 billion, down 8.6% from RMB 3.78 billion in 2022, with the gross margin decreasing from 18.3% in 2022 to 16.9% in 2023[26]. - Basic earnings per share decreased to RMB 0.63 in 2023 from RMB 0.69 in 2022, reflecting a 8.7% drop[65]. - The company reported a profit attributable to owners of RMB 740 million in 2023, a decline of 9.9% from RMB 821 million in 2022, mainly due to lower gross profit[33]. Revenue Breakdown - Revenue from acoustic products decreased to RMB 7,498,965,000 in 2023 from RMB 8,868,384,000 in 2022, representing a decline of 15.4%[88]. - The group’s revenue for the optical business in 2023 was RMB 3.63 billion, reflecting a year-on-year growth of 12.7%[16]. - The group’s revenue for the electromagnetic transmission segment for the full year 2023 was RMB 8.25 billion, a year-on-year increase of 13.3%[18]. - Revenue from electromagnetic transmission and precision components increased to RMB 8,245,314,000 in 2023, up 13.3% from RMB 7,278,046,000 in 2022[88]. - In 2023, the optical business achieved revenue of RMB 1.86 billion in the second half, a year-on-year increase of 36.0% and a quarter-on-quarter increase of 4.8%[16]. Cash Flow and Liquidity - Operating cash flow reached RMB 4.63 billion, marking a five-year high, while free cash flow hit a record RMB 3.81 billion[7][12]. - Cash flow from operating activities was RMB 4,632.5 million in 2023, an increase from RMB 4,372.0 million in 2022[37]. - As of December 31, 2023, the company had cash and cash equivalents totaling RMB 6,824.5 million, a decrease from RMB 7,155.0 million in 2022, with 65.2% held in USD[44]. - The company recorded a net cash outflow of approximately RMB 3,170.6 million from financing activities, compared to RMB 1,438.7 million in 2022, primarily due to repayment of bank loans amounting to RMB 5,200.7 million[43]. Expenses and Cost Management - Administrative expenses decreased by 5.6% to RMB 978 million in 2023 from RMB 1,036 million in 2022, primarily due to reduced equity incentive plan expenses[28]. - Research and development expenses rose by 1.8% to RMB 1,573 million in 2023, driven by increased R&D activities for automotive and AR/VR new businesses[30]. - The total employee costs decreased from RMB 5,125,482 thousand in 2022 to RMB 4,574,064 thousand in 2023, a reduction of about 10.7%[95]. Inventory and Receivables - The inventory turnover days improved from 109 days at the end of 2022 to 80 days at the end of 2023, indicating better inventory management[12]. - As of December 31, 2023, trade receivables increased by RMB 1.08 billion to RMB 5.36 billion, with turnover days rising to 86 days[38]. - Trade and other receivables increased from RMB 5,531,160 thousand in 2022 to RMB 6,653,431 thousand in 2023, an increase of about 20.2%[69]. Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.10 per share for the fiscal year 2023, maintaining the same payout ratio of 15% as in 2022[12]. - The company proposed a final dividend of HKD 0.10 per share for 2023, down from HKD 0.12 per share in 2022, pending shareholder approval[105]. Strategic Initiatives and Acquisitions - The acquisition of Premium Sound Solutions (PSS) is expected to strengthen the company's offerings in the automotive audio system market[8]. - The group completed the acquisition of Acoustics Solutions International B.V. on February 9, 2024, marking a strategic move to diversify into the automotive sector and enhance audio solution offerings[23]. - The company aims to strengthen its market position in the smartphone industry and explore opportunities in mid-to-high-end models and emerging categories through continuous technological innovation[24]. Risk Management and Compliance - The company has implemented a corporate risk management framework to effectively identify, assess, mitigate, and monitor key strategic, market, financial, operational, and compliance risks[189]. - The company has implemented a trade compliance management system to address ongoing global trade tensions and potential regulatory impacts[59]. - The company is focused on managing liquidity and interest rate risks by maintaining a balanced RMB/USD borrowing portfolio[57]. Sustainability and Innovation - The company achieved a renewable energy generation of over 33.4 million kWh in 2023, an increase of over 66% compared to 2022, through the installation of a large solar photovoltaic system[193]. - The company was recognized as one of the "Top 100 Global Innovative Companies" in 2023 by an international intellectual property firm, highlighting its commitment to technological innovation[193]. - The company is committed to continuous investment in research and development to maintain its competitive edge and enhance user experience[55]. Shareholder Equity and Capital Structure - The total number of ordinary shares issued and fully paid as of December 31, 2023, was 1,198,500,000, down from 1,203,250,000 in 2022[154]. - The company raised a total of RMB 1,150,000,000 from four independent strategic investors, diluting its equity in Chenrui Optical from 100% to 90.42%[142]. - The company confirmed a contingent liability for capital repayment with a premium, due to contractual obligations, which is presented under non-current liabilities[143]. Financial Instruments and Investments - The fair value of financial liabilities measured at fair value through profit or loss includes a cross-currency swap contract valued at RMB 2,869,000[183]. - The company has recognized a gain of RMB 1,033,000 in other comprehensive income related to equity instruments classified as fair value through other comprehensive income[182]. - The fair value of listed unsecured bonds is RMB 4,889,467,000 as of December 31, 2023, compared to RMB 4,971,698,000 in the previous year[183].

Financial Performance - The company reported a revenue of at least RMB 30,000,000,000 for the fiscal year, which is a key performance target for the incentive plan[2] - The performance targets include maintaining a recurring pre-tax profit margin not lower than the average profit margin levels of the past three years (2013, 2014, and 2015)[2] Employee Incentives - The board has waived certain general vesting conditions under the incentive plan to enhance employee motivation and morale[2]

Financial Performance - In the first half of 2023, the company's revenue was RMB 9.22 billion, a decrease of 2.0% year-on-year[12]. - The gross profit margin for the first half of 2023 was 14.1%, down 4.8 percentage points compared to the previous year[14]. - Net profit for the first half of 2023 was RMB 150.3 million, representing a significant decline of 57.1% year-on-year[12]. - Operating cash inflow for the first half of 2023 was RMB 2.05 billion, an increase of 43.1% year-on-year[15]. - Capital expenditure for the first half of 2023 was RMB 616 million, a decrease of 42.0% compared to the previous year[15]. - Gross profit for the first half of 2023 was RMB 1.30 billion, a decline of 27.2% compared to RMB 1.78 billion in the same period of 2022, leading to a gross margin decrease from 18.9% to 14.1%[41]. - The company reported a net profit attributable to shareholders of RMB 150 million for the first half of 2023, down 57.1% from RMB 350 million in the same period of 2022[48]. - The company reported a profit for the period of RMB 150,304,000 for the six months ended June 30, 2023, compared to a loss of RMB 102,826,000 in the same period of 2022[166]. Business Segments - The acoustic business achieved revenue of RMB 3.32 billion in the first half of 2023, a year-on-year decrease of 19.9%, with a gross margin of 25.5%, down 1.7 percentage points[17]. - The optical business reported revenue of RMB 1.77 billion, a year-on-year decrease of 4.4%, but showed significant improvement in the second quarter due to increased market demand and reduced price competition[18]. - The electromagnetic transmission and precision components business recorded revenue of RMB 3.62 billion, a year-on-year increase of 23.4%, with a gross margin of 19.3%, down 1.2 percentage points[21]. - The precision components business saw revenue growth of over 40% in the smartphone metal frame segment, benefiting from advanced manufacturing processes and automation[23]. - Revenue from acoustic products was RMB 3,323,272 thousand, down from RMB 4,147,709 thousand in the previous year, reflecting a decrease of about 19.9%[182]. - The revenue from electromagnetic transmission and precision components increased to RMB 3,619,700 thousand, up from RMB 2,932,796 thousand, marking a growth of approximately 23.4%[182]. - The optical products segment generated revenue of RMB 1,771,277 thousand, slightly down from RMB 1,852,432 thousand, indicating a decrease of around 4.4%[182]. Cash Flow and Investments - Net cash used in investing activities for the first half of 2023 was RMB 504.2 million, down from RMB 1.18 billion in the same period of 2022[55]. - The company reported a net cash outflow from investing activities of RMB 504,225,000 for the six months ended June 30, 2023, significantly reduced from RMB 1,180,002,000 in the previous year[166]. - The cash and cash equivalents increased by RMB 186,044,000 during the first half of 2023, contrasting with a decrease of RMB 873,456,000 in the same period of 2022[166]. Debt and Liabilities - The company's total debt decreased by RMB 575 million compared to the end of 2022, with a net asset liability ratio of 4.9%[15]. - The debt-to-asset ratio as of June 30, 2023, was 23.0%, a decrease from 23.9% as of December 31, 2022[59]. - The group reported total liabilities as of June 30, 2023, were RMB 8,968,723 thousand, compared to RMB 9,093,037 thousand at the end of 2022[163]. Research and Development - Research and development expenses for the first half of 2023 amounted to RMB 675 million, a decrease of 7.2% from RMB 727 million in the first half of 2022[45]. - The company is committed to continuous investment in R&D to maintain a competitive edge and develop sustainable technology solutions[68]. Corporate Governance - The board consists of independent non-executive directors, ensuring a governance structure that promotes accountability and transparency[79]. - The company has adopted a corporate governance code and conducts annual evaluations of the board and its committees[113]. - The board regularly reviews corporate governance policies to ensure compliance with regulations and stakeholder expectations, maintaining high standards of transparency and accountability[76]. Shareholder Information - The total number of ordinary shares held by Mr. Pan is 497,917,652, representing 41.54% of the company's issued shares[118]. - The company’s shareholder structure analysis as of June 30, 2023, indicated that institutional investors held 21.27% of shares, while retail investors accounted for 42.01%[133]. - The total number of direct registered shareholders was only 127 as of June 30, 2023, due to most shares being held through intermediaries[132]. Environmental, Social, and Governance (ESG) - The company has committed to enhancing its ESG performance and has established a sustainability working group that meets biannually to review ESG performance[140]. - The company received an A rating in the MSCI ESG ratings and was rated as having low ESG risk by Sustainalytics[150]. - The company is actively engaged in community initiatives, providing employment and educational opportunities while responding to government policies[146].

AAC Technologies Holdings Inc. (OTCPK:AACAY) Q2 2023 Earnings Conference Call August 24, 2023 3:50 AM ET Company Participants Joyce Kwock - Head IR Jack Duan - Chief Operating Officer Kelvin Pan - EVP & CIO Dan Guo - CFO Conference Call Participants Hu Peng - CICC Tao Xu - CITIC Alex Lin - BOCI Wilson Zou - First Shanghai Joyce Kwock [Call Starts Abruptly] the name before asking questions. And we also provide a simultaneous interpreting and you can click on the interpreting button. Next, let's take a look a ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：2018） 截至2023年6月30日止六個月之中期業績公佈 瑞聲科技控股有限公司（「瑞聲科技」或「本公司」）董事（「董事」）會（「董事會」） 欣然公佈，本公司及其附屬公司（統稱為「本集團」）截至2023年6月30日止六個月 （「2023年上半年」）之未經審核中期業績連同2022年同期（「2022年上半年」）之比較數 字。 該等未經審核簡明綜合財務報表已由本公司核數師德勤•關黃陳方會計師行及本公司審核及 風險委員會審閱，並經董事會於2023年8月24日批准。 2023年中期業績摘要（未經審核）： （人民幣百萬元） 2023年上半年 2022年上半年 按年% 收入 9,219 9,412 -2.0% 毛利 1,297 1,783 -27.2% 毛利率 14.1% 18.9% -4.8個百分點 ...

Financial Performance - Revenue for 2022 was RMB 20,625 million, representing a year-on-year increase of 16.7%[19] - EBITDA for 2022 was RMB 4,251 million, showing a year-on-year decrease of 37.2%[19] - Earnings per share for 2022 was RMB 0.69, down 6.2% year-on-year[19] - Free cash flow decreased by 34.8 percentage points year-on-year[21] - Net profit for 2022 was RMB 821 million, a decline of 37.6% year-on-year[53] - The gross profit margin decreased by 6.4 percentage points to 18.3% in 2022, down from 24.7% in 2021[32] - The company achieved a total asset return rate of 2.0% in 2022, down from 3.3% in 2021, reflecting a decline of 1.3 percentage points[32] - The group achieved a revenue of RMB 20.63 billion in 2022, representing a year-on-year growth of 16.7% due to strong overseas customer demand and contributions from electromagnetic transmission and precision components businesses[53] - The gross profit for 2022 was RMB 3.78 billion, a decrease of 13.5% from RMB 4.36 billion in 2021, primarily due to increased competition in the optical business[67] - The operating cash flow for 2022 was RMB 4.372 billion, significantly up from RMB 2.176 billion in 2021, indicating improved cash generation from operations[76] Research and Development - Research and development expenses accounted for 7.5% of revenue in 2022[13] - The company established 18 R&D centers globally, employing 3,880 R&D personnel[13] - The company’s R&D expenditure for 2022 was RMB 1.546 billion, a decrease of 10.4% from RMB 1.726 billion in 2021, attributed to improved cost efficiency in R&D[71] - Research and development expenses increased by 30%, reflecting the company's commitment to innovation and new technology[105] - The company is focused on developing new technologies and products to enhance its market position and customer relationships[131] Market Position and Strategy - The company aims to enhance user experience through advanced R&D and precision manufacturing[11] - The company plans to continue enhancing operational scale and efficiency to establish sustainable growth capabilities[48] - The company aims to expand its diversified business development to become a leading provider of sensory experience solutions globally[48] - The company has strengthened its market position in the smartphone sector despite challenging external conditions, achieving market share growth in various business segments[48] - The ongoing global economic slowdown poses risks to the smartphone market, prompting the company to diversify its product and technology platforms to mitigate reliance on any single segment[89] Customer and Supplier Dependency - The group relies heavily on five major customers, which accounted for 83.9% of total revenue in 2022, indicating a significant dependency on the consumer electronics sector[90] - The top five customers accounted for approximately 83.9% of the total sales revenue, with the largest customer contributing about 43.5%[192] - The top five suppliers represented 26.7% of total procurement, with the largest supplier accounting for approximately 10.6%[192] Financial Management and Governance - The company maintains a strong balance sheet with a cash reserve of $500 million, ensuring financial stability for future investments[105] - The company will maintain a prudent financial policy and strong cash flow to advance business development amid changing macroeconomic conditions[138] - The company’s financial risk management objectives and policies are detailed in the consolidated financial statements, specifically in note 38[137] - The company has established a quality management system to enhance internal processing capabilities and product reliability[94] - The company is committed to high standards of corporate governance and regularly reviews its policies and practices to adapt to regulatory changes and stakeholder expectations[197] Employee and Talent Management - The group employed 27,798 full-time employees as of December 31, 2022, a decrease of 26% from 37,591 employees on December 31, 2021[190] - The company is committed to attracting and retaining top talent to support its vision and long-term growth strategy[127] - The company has established a share incentive plan to attract and retain suitable talent for further development[176] Environmental and Social Responsibility - The company plans to invest $50 million in sustainability initiatives over the next three years[105] - The company donated approximately RMB 1.48 million to various community initiatives related to COVID-19 prevention and local community development during the year[185] Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[105] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[105] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of the next fiscal year[105] Related Party Transactions and Shareholder Information - The company has established several related party transactions in 2022, complying with the Hong Kong Listing Rules[158] - The company’s related party transactions have been disclosed in accordance with the Hong Kong Listing Rules, ensuring transparency[171] - The company’s major shareholders include entities with significant stakes, ensuring a diverse ownership structure[172]