On August 22, aac tech (2018.HK) released the 2024 interim performance report. The group's first-half revenue was 11.25 billion yuan, a year-on-year increase of 22.0%. The gross margin was 21.5%, an increase of 7.4 percentage points year-on-year, with net income of 0.537 billion yuan, a significant year-on-year increase of 257.3%, and significantly enhanced profitability, with continuous growth in gross margin for all business lines.

The combined segment of electromagnetic drive and precision structural components business in the first half of 2024 generated revenue of 3.66 billion yuan, a 1.1% year-on-year increase. The gross margin was 22.9%, a 3.6 percentage point increase year-on-year, with improvements of 3-6 percentage points in the gross margins of motor and precision structural components business, mainly due to the continuous increase in high-end motor product volumes and the ongoing optimization of precision structural component product structures, emphasizing cost control.

In particular, the gross margin of the electromagnetic drive business saw a significant increase, mainly benefiting from the group's high-performance X-axis linear motors and improved product portfolio. It is expected that by the end of 2024, the cumulative shipment volume of X-axis linear motors will exceed 1.9 billion units.

In terms of product innovation, aac tech has introduced the industry's first innovative form factor VCM drive module, which has been mass shipped to core mobile phone customers. It has an ultra-thin 3mm thickness, high complexity structure, excellent dust and water resistance, leading the industry towards higher-end upgrades.

Furthermore, aac tech has customized the AeroEngine ultra-light high-performance X-axis motor for foldable models, with a weight of only 1g. It may be the lightest X-axis motor in the industry, with greater vibration, quicker start-stop, and a wider frequency range.

The management of aac tech stated that the company will also accelerate the development of the VCM (Voice Coil Motor) business, with key components already being self-manufactured on the production side, providing customers with overall solutions for design, simulation, manufacturing, and testing.