Results Meeting Record｜Ruisheng Technology (02018): The cooling business is growing explosively, and the layout of new directions in multiple fields will welcome centralized expansion

Zhitong Finance App learned that on August 20, Ruisheng Technology (02018) released the 2026 interim results report. In the first half of the year, Ruisheng Technology's revenue reached a new high of RMB 14.51 billion, up 8.9% year on year; gross margin was 22.4%, up 1.7 percentage points year on year; reported net profit was RMB 901 million, up 2.9% year on year (net profit increased 37.4% year on year after excluding other gains and losses related to fair value gains and losses); and net cash inflow from operating activities was RMB 1.91 billion.

The company's management said that despite being affected by macroeconomic factors such as changes in memory prices in the first half of the year, the company achieved an 8.9% year-on-year increase in revenue and a 1.7 percentage point increase in gross margin over the same period last year. With the arrival of the peak season and the gradual expansion of AI-related businesses in the second half of the year, we are confident that we will achieve double-digit revenue growth and further increase gross profit margins throughout the year.

In the future, the company's layout will be deepened in new directions such as VC cooling, active cooling, AI equipment and gimbal, CDU liquid cooling, robot core components, AR optics, and WLG communication modules. The company's layout in several new directions will be concentrated. It is expected that the business contribution in the new direction will reach 8 billion to 9 billion yuan by 2027. The specific expectations are as follows:

Cooling VC + active cooling: revenue is expected to reach about 5 billion yuan or higher next year; AI equipment + gimbal: estimated revenue scale to reach about 1.5 billion yuan; CDU liquid cooling: estimated revenue scale to reach about 1 billion yuan; core components of robots and desktop equipment: expected to reach 400 million to 700 million yuan; new layout of vehicle acoustics Business: Expected to reach RMB 500 million; WLG Optical Communications Business: Expected to reach a scale of at least RMB 100 million.

The following is a transcript of Ruisheng Technology's performance conference questions and answers compiled by the Zhitong Finance App:

Q: Regarding the cooling business, some investment banks forecast a 110% year-on-year increase in revenue related to cooling to 3.5 billion yuan in 2026. How does management view this forecast? Also, what was the share of consumer electronics and server liquid cooling in the cooling business revenue in the first half of the year?

A: The company continues to lay out new development directions on the cooling side. The entire precision sector is expected to achieve year-on-year growth of more than 30% in 2026, with the cooling business being driven very strongly. In particular, in terms of the layout of the new direction in the future, including the increase in the penetration rate of active cooling products in the mobile phone sector, it is expected that growth will continue to be high over the next few years. Previously, the company completed the acquisition of Yuandi Technology, covering CDU and liquid cooling related businesses. The liquid cooling business is expected to achieve a revenue scale of about 200 million yuan this year, and is expected to grow to nearly 1 billion yuan next year. This is a very rapidly growing track.

Q: Concerned about the company's main layout of optical engines and optical waveguides in the AR field, what are the company's considerations for this layout? How are related projects progressing? Will they consider setting up an AR machine business in the future?

A: The company acquired Dispelix, an optical waveguide design company from Finland, and quickly entered the field. At the same time, with the promotion of leading overseas customers, the company recently completed the integration of a world-leading Light Engine R&D team. Through this transaction, the company has effectively and directly gained access to overseas core customer resources, and the future R&D roadmap and project resources have a high degree of certainty. By integrating the world's leading optical waveguide technology, optical engine opto-mechanical technology, and prism technology produced based on WLG (wafer-grade glass), the company has the ability to produce entire display modules.

In AR glasses, display modules (including optical waveguides, optical machines, etc.) account for 40% to 50% of BOM costs. Combined with AAC's original strengths in acoustics, motors, etc., the company already has the ability to manufacture most BOMs for AR glasses. Whether to actively enter the field of complete machine assembly in the future, the company will comprehensively evaluate customer needs, manufacturing processes, gross margin level of the assembly business, and overall asset input-output ratio before making a decision.

Q: What is the company's specific layout in the field of optical communications? What are your unique advantages over other companies?

A: In the field of optical communication, the company is carrying out related technical exchanges and cooperation with a leading overseas optical communication company. AAC itself has accumulated strong optical manufacturing capabilities in the consumer electronics field, and with WLG's technical layout and precision manufacturing advantages accumulated over many years (in particular, WLG's manufacturing advantage in terms of accuracy), related capabilities have been recognized by overseas customers. Therefore, the company has huge market potential in business areas such as lenses and FAU (optical fiber array).

Q: After Yuandi Technology is merged, what is the current certification progress of US cloud vendors? Also, active heat sinks are expected to be mass-produced in 2027. What is the approximate value of a stand-alone unit?

A: Overall, the company has good market growth opportunities in the liquid cooling sector heads and Manifold devices. The target revenue target for this year is 200 million yuan, and it is expected to grow to about 1 billion yuan next year. The growth potential seen in this field in the next few years is quite huge. Currently, the company is actively certifying with overseas customers and is conducting in-depth discussions and promotion. If there is any confirmed progress in the future, it will be promptly communicated. The value of a stand-alone device is currently not easy to share in detail.

Q: Regarding the automotive acoustics business, sales in the automotive market were under pressure in the first half of the year, but vehicle acoustics revenue increased a lot. What is the reason? Where are the major increases coming from? What is the overall status of in-vehicle optics, and has it entered overseas customers such as Tesla?

A: In the field of automotive acoustics, the company not only provides in-vehicle speakers, but also successfully shipped overall acoustic systems through mergers and acquisitions, covering a full range of capabilities such as brands, tuning, speakers, amplifiers, and in-car MEMS. The overall automotive production line is expected to increase by 15% to 20% this year, and the increase is very obvious in the highly competitive environment of the automotive market. In terms of gross margin, driven by brands and systems, overall gross margin other than power amplifiers has been rising steadily, providing rich opportunities for further expansion in the automotive sector in the next step. In particular, tier-1 deployment of multiple car companies will bring more market opportunities. Due to commercial confidentiality requirements, discussions are generally not about specific projects or specific customers. However, in the field of automotive optics, progress is currently very smooth. It has obtained important customer certifications, and mass production and shipment is expected within this year.

Q: The consumer electronics industry usually has a low season in the first half of the year. What is the company's performance in the first half of the year and what is the pattern in the past? Are there any changes this year? Regarding the company's “second growth curve”, which businesses will take the lead in making a significant contribution to the company's performance?

A: Due to factors such as rising memory prices, there was a certain adjustment in the revenue ratio between Android devices and overseas customers in the first half of the year. This also reflects changes in market guidelines between Android manufacturers and major overseas customers in terms of mobile phone shipments. Judging from the mobile phone consumption pattern in the first half of the year, the second half of the year is usually the peak season for the industry, and the intensive release of new models (especially major overseas models) will drive concentrated sales. The Group's overall revenue grew 8.9% year-on-year in the first half of the year. Looking at the whole year, the company is very confident of achieving double-digit revenue growth. In the second half of the year, new products such as precision cooling VC will provide higher revenue growth. In terms of gross margin, gross margin increased by about 1.7 percentage points year-on-year in the first half of the year, and gross margin in the second half of the year will increase further from the first half.

Regarding the second growth curve, in addition to the deep layout of traditional consumer electronics (acoustics, electromagnetic transmission, precision components, optics), the company has firmly grasped the end-side opportunities brought by AI. Whether in the fields of active cooling, robotics, AI server liquid cooling, or AR/VR products and optical communication, the company has implemented a long-term layout. Although affected by adjustments in memory prices to the mobile phone market in the short term, the BOM budget will be reallocated to other components as memory prices recover. Under the leadership of AI, the performance of mobile phone components continues to be upgraded, and in the future, the company will usher in steady and rapid improvements in both traditional and emerging fields.

Q: I learned that the company is transforming into an “AI perception infrastructure provider”. What is the current implementation progress? Are there clear customer collaboration projects to share?

A: In terms of AI infrastructure, the AI server liquid cooling sector has achieved revenue of about 200 million yuan this year, covering leading domestic customers. New projects will also be launched in Southeast Asia this year, and certification of leading overseas customers is also being actively promoted. In addition, the AI hardware side has brought rich opportunities in the field of server cooling and optical communication. The company has already deployed a “VC+ active cooling” solution on mobile phones and will expand to server-side applications in the future; in terms of optical communication, the company will also make full use of the WLG experience and high-precision glass manufacturing process accumulated on mobile phones to continue to make efforts in the field of optical communication.

Q: Why did the sensor and semiconductor business achieve rapid growth in the first half of this year? What is the future penetration of MEMS microphones with high signal-to-noise ratio in the field of AI?

A: In the first half of this year, due to the demand for AI mobile phone application scenarios, overseas core customers needed MEMS microphone products with higher signal-to-noise ratio and lower power consumption to better serve real-time voice interaction scenarios. The sensor and semiconductor sector's revenue is expected to increase by 15% to 20% year-on-year this year, and will maintain a high growth rate in the next few years. As AI hardware application scenarios expand from consumer electronics to wearable devices, desktop applications, etc., real-time interaction places extremely high demands on high signal-to-noise ratio and low power consumption. AAC has industry-leading R&D and manufacturing capabilities. With the implementation of AI multi-form wearable devices and desktop robots, it will usher in a wider range of application space.

Q: First, from the perspective of core component suppliers, how far has the physical intelligence industry developed, and which technologies are beginning to converge? Second, how is the company's cooperation with leading overseas desktop AI robots progressing? Third, if robot-related revenue is to jump from 100 million yuan to 1 billion yuan, what is the most critical variable?

A: At present, the shape of an embodied robot cannot be determined, because its application scenarios are extremely rich and specific, such as special robots in professional scenarios. The future will present a trend of parallel development of small robots, desktop robots, and various new forms of robots. The company has now carried out in-depth cooperation with many leading overseas robot manufacturers, and has carried out a comprehensive layout with manufacturing capabilities in the fields of motors, shafts, and gimbals. With the implementation of multi-form AI devices, the company expects the initial business scale of robots and desktop AI devices to reach 400 million to 700 million yuan next year. In the next few years, with the diversified development of products and the promotion of large model companies, the industry will usher in a flourishing scenario, and the company will also achieve faster growth.

Q: Please ask management to summarize the growth rate performance of each business segment in the first half of the year and the guidance for the whole year

A: Overall, despite challenges in the general environment, the company's financial performance in the first half of the year was steady, and gross margin in various sectors increased steadily. The volume of various AI end-side products in the second half of the year and the medium to long term will support the healthy development of the company. The Group will achieve double-digit revenue growth throughout the year, and gross margin will increase further from last year and the first half of this year.