Summary by Futu AI
AAC Tech announced the unaudited interim performance for the six months ended June 30, 2024, showing a year-on-year increase in revenue and gross profit of 22.0% and 86.4% respectively, with a significant increase in net profit of 257.3%. The gross margin and net profit margin increased by 7.4 and 3.2 percentage points respectively. The growth is mainly due to the recovery of the mobile phone market, improvement in product portfolio, and enhanced operational efficiency. In addition, the consolidation of PPS also contributed to the performance growth. During the reporting period, AAC Tech's operational cash inflow increased by 29.1% year-on-year, and capital expenditure amounted to CNY 0.917 billion. The group's net debt-to-equity ratio is 6.0% and the cash on hand is CNY 7.81 billion. The inventory turnover days improved from 80 days to 71 days. The group will no longer distribute interim dividends and will maintain a prudent financial management policy and strong cash flow to promote business development and create long-term value for shareholders.