Investors, welcome to the AAC Technologies 2024 interim results announcement. I am Joyce Huang, Director of IR Department and also host of the meeting. On behalf of the company, I would like to thank you for your attention in AAC. Please allow me to introduce the management. Mr. Benjamin Pan, Executive Director and Chief Executive Officer of AAC Technologies, Mr. Kelvin Pan, Executive Vice President of AAC Technologies, Ms. Dan Guo, Chief Financial Officer of AAC Technologies, Mr. Jack Duan, CEO of AAC Optics, and Mr. Shi Tingjia, Vice President of Strategy of AAC Technologies. Thank you for your attendance. Today's meeting includes two parts, starting with my presentation on AAC Technologies 2024 interim financial performance. This will be followed by a Q&A session.
You are welcome to communicate with the management and ask your questions by pressing the raise hand button or message in the Zoom chat room. You may remain the hand-raising status to remind the host. Please introduce your organization and name before questions. We also have a simultaneous interpreting channel today. Please click the interpretation button if you need. Thank you.
Now let's take a look at the results. In the first half of 2024, the group's total operating revenue increased 22% year-on-year to CNY 11.25 billion. The GP margin stood at 21.5%, reflecting 7.4 percentage points. The notable improvement was driven by the mild recovery in the smartphone sectors, improved product mix, mainly from acoustics, optics, precision mechanics, as well as continued improvement in operational efficiency and also the consolidation of PSS. The recorded revenue is CNY 9.75 billion with a GP margin of 20.9%.
PSS consolidation contributed a revenue of CNY 1.52 billion with a GP margin of 25%. The group's net profit amounted to CNY 537 million. In the first half, the group remained prudent in financial management, continued to strive for the strong cash position. The group operating cash inflow amounted to CNY 2.65 billion, improved by 29.1%. Net gearing ratio stood at 6%. Cash on book is CNY 7.1 billion. The average return over days were 71 days, improving by nine days from 80 days as of 31 December 2023. We would like to share with you the performance by business segments, acoustics business. In the first half, the group's acoustics business recorded a revenue of CNY 3.46 billion, representing an increase of 4.1% year-on-year. The gross profit margin reached 29.9%.
The combo series is an innovative two-in-one acoustic and electromagnetic product, shipped close to 4.5 million units, providing customers with a wide range of product choices. Automotive and consumer acoustic products business. We are very happy to see that PSS-related business consolidation contributed a revenue of CNY 1.52 billion with a gross margin of 25%. The group's automotive acoustics business continued to make breakthroughs, and the synergy with PSS has been progressing well. After the acquisition, the group will also accelerate expansion in both overseas and the domestic markets and continue to supply mid to high-end models to leading NEVs. The group is exploring vertically integrated solution of loudspeakers, amplifier and algorithms and the tuning services. Also actively plan its high-performance products to penetrate first-tier automotive companies globally.
Optics business. In the first half of 2024, optics business reported revenue of CNY 2.21 billion, up 24.9% year-on-year, mainly driven by the recovery in the optic industry, higher shipments, and improved ASP. The GP margin increased to 4.7%, a significant improvement of 21.7 percentage points year-on-year. The optimization of the plastic lenses has been progressing well with the 6P lens maintaining more than 15% of the total shipments. Camera modules also saw steady growth in both shipments volume and ASP. The 1G6P hybrid lenses shipment rose by nearly 40% year-on-year to nearly 1.5 million units. The proprietary WLG technology has been gaining positive feedback from smartphone OEMs. It has unique advantage of uni-body modeling, which greatly improves the production efficiency and the precision to meet the customer's demand for innovation.
The group is proactively collaborating with the customers in the advanced development of more high-end and flagship models. Electromagnetics drives and the precision mechanics business. This consolidated segment generated revenue of CNY 3.66 billion, noting a year-on-year increase of 1.1%. The GP margin for the combined segment stood at 22.9%. The electromagnetic drives business saw a notable growth in the gross margin, which was largely fueled by the group's high-performance X-axis motors and the product mix improvement. The cumulative shipments of the group's X-axis linear motor are expected to exceed 1.9 billion. We also have this first mass production shipment of a new form of extendable lens transmission VCM motor module, with its ultra-thin 3 mm thickness.
The group has maintained a stable relationship with the various core customers in precision mechanics, which contributed to a topline increase in many products, such as the metal hinges, heat dissipation, and the laptop enclosure business. It also will have this kind of hinge product shipments with nearly 500,000 units in the first half of 2024. Heat dissipation products increased by almost 100%. We also see this is a capacity built in Yangzhou began to ramp up. The group's market share in overseas customers' laptop enclosure is steadily growing. Let's take a look at the sensor and semiconductor business. In the first half, revenue from the sensor and semiconductor business amounted to CNY 389 million, down by 21.2%, mainly due to delay in new projects into the second half of 2024.
We also have the shipment and the proprietary high-performance MEMS microphone with a shipment proportion of Android Mid to high-end products, rising 15 percentage points to over 60%, spearheading industry. After sharing the financial performance by segments, let's focus on the business highlights and strategic development. The group have developed a compact acoustic platform that achieved a significant amplitude of up to 0.65 mm, enhancing energy density in a confined space. The dual-coil pole axle product will soon be launched in flagship models with an improved frequency response. Optics. The group has the industrial original acoustic and motor integration design that saved stacking space while providing excellent sound and tactical experience, realizing the greater synergy. An ultra-slim series is tailored for the slim devices with a lightweight design of just 2 mm. Optics. G+P solutions actively being advanced with multiple clients.
The light intake can be increased by 15%, and we can also realize the prism on OIS. In terms of the precision manufacturing based on the raw materials and simulation design, we have become the top-notch heat dissipation supplier, providing the clients with an ultra-thin hinge solution. It can reach the thinnest of 2.84 mm and improve impact resistance by more than 100%. We are creating the ultimate experiences and leading the upgrade of the smart devices. At the same time, with the new technologies emerging, and also the fastest development of AI, our group is also seizing the opportunities. There are two opportunities. The first one is about the terminal AI's launch, which requires higher heat dissipation design. Secondly, the MEMS microphone as the core component of the voice pickup will significantly benefit from spec upgrades.
The trend towards device thinness is driving increased demand for ultra-thin components such as actuator and speakers. Our group's latest acoustics and electromagnetic products are more than 50% thinner than the conventional specifications. We are continuing to explore the motors' application in optic modules. The self-proprietary technology is highly recognized by the customers. We think in the future, the ultra-thin phones will accelerate the demand for the retractable camera modules. The future automotive market outlines the second growth curve for the group. The PSS product portfolio covers high-performance classic car speakers in various sizes, including low, medium, high, and full range, providing high-quality sound experience for customers, penetrating first-tier automotive companies globally. After completing the acquisition, the group will also accelerate its expansion in both domestic and overseas markets.
The group exploring a variety of vertical integration solutions of the loudspeakers and the tuning services, et cetera. The above is my introduction of the interim results.
We can start the Q&A session. Please press the raise hand button in the Zoom or leave the message to the host in the chat room. Please introduce yourself before asking questions. Let's take the first question. It's from CICC, Wang Tian Xin . Please go ahead.
Thank you, management, for your time. We are very happy to see the outstanding performance in the first half of 2024. We have also seen that the AI content is increasing in the smartphone, and we are glad to see that there are a lot of integration of your products in the smartphones.
With the AI's emerging opportunities, how do you foresee your product portfolios in the individual module of value increase, and also your future collaboration in the big North American clients? Would you like to share more about this information to all of us? Thank you.
I'd like to answer this question. In recent years, the smartphone market has entered a relatively steady development, and we stick to the value improvements principle. We will increase our value by the high performance and the quality. At the same time, we will provide the same performance with the lower cost products. In the speakers and motor, as well as our heat dissipation products, the strategies are consistent. It includes the combo and Android motor penetration to the lower or mid to low-end products. All the operation and the practices are in line with our value of first principle.
The AI developments at present, we paid more attention to its development. At present, we are still stick to the customer value based strategy. In terms of the voice increase as well as the future demands raised by AI, we think this kind of change will occur in the next one or two years. In different models, different model changes are triggered by AI. We will also face a lot of challenges. You can see the ultra-thin models and the foldable models and ultra-thin foldable models, and those are the mega trends. The ultra-thin model will have a higher requirement of the inner space. In the future, the speakers and hinge and the dissipation and heat dissipation, we need to strive for the ultra-thin trend, and this also provides opportunities for us.
In the future, or in the second half of the year, or even in the next year, this will be more obvious. The growth at present is driven by the product portfolio improvement and our diversification. AI smartphone is launched this year, and a lot of new AI functions are launched. I believe there will be new AI functions next year, and those functions and the new changes will be more systematic. The ramping up of the volume will also be more obvious next year. We believe that next year will be the standardized or the starting year for this AI function and the smartphones ramping up and the growth.
With regard to our customers, we have a very good relationship with our U.S. clients and including our other clients. We want to provide sustainable products and services to our clients, both in the domestic and overseas markets. Thank you.
Next question. My second question is about the optical business. We see a strong recovery in the optics in the first half of the year, so I'd like to know more about the outlook in the second half, for example, the shipment volume as well as the GP margin. Do you have any guideline? Any guideline or target of net profits? The WLG's shipments in the first half were promising. What's the outlook of its shipments in the second half? What are the clients of the WLG? So, any expectation of the volume in the second half? Thank you.
Thank you for your question.
In terms of the optics, I will give you some figures. As for the development of WLG, Mr. Duan will supplement. As far as we know, the total revenue of the optics is CNY 2.21 billion, and the GP margin is also increased. The comprehensive GP margin is about 5%, and this is a 22% year-on-year growth. Plastic lens, the revenue is CNY 490 million, and the GP margin is 16%-17% and year-on-year growth of 27%. We see the plastic lens for the whole year. The environment is good and also the value is sound. For the full year of this year, we think the shipment volume will be increased by 5%-9%. The sales will increase about 20% or above 20%. The GP margin for the first half is about 16%-17% as mentioned before.
In the second half, we will hope to achieve 25% with the product mix and also efficiency enhancement. Modules. The shipment volume of the full year is about 20% growth, and the sales value is about 40% of growth. We think in the full year, the revenue of the optics can achieve 25% of growth. The net profits in the second half and in the fourth quarter, and we will turn positive. The net profit will also have a very positive development in the second half.
Okay.
With regard to the WLG, as you can see, the shipment volume is going up. This year, we also followed this growing trend. The shipment volume cycle is long. This year and next year, the shipments will continue. In terms of the new clients acquisition, you can also see the good development of the new clients based on our outstanding performance. All our customers are interested in WLG, this technology. With our efforts this year, we believe the high-end projects from some key clients or big clients will be launched. The revenue contribution will be made next year. The shipment volume of the smartphone can reach over 10,000 units in the WLG, and also this prisms and also our casting processing. Also recognized by the end clients. The telephoto lens is the potential market.
The WLG prisms market is very important, and this has become a very core component to many clients. Apart from the smartphones, the automotive cameras, as well as the sports cameras, their shipments is over one million. Next year, this will be several million. For the pure glass lens, we use the WLG to replace the conventional glass. We have these advantages, and we have the confidence for the WLG's growth. It also is reflected in our capacity and our preparation of the mass production in the overseas market. The WLG is the important driving force of our future growth. Thank you.
Thank you, management sponsors, and thank you Tian Xin's question. Next question is from Andy Meng from Morgan Stanley.
Thank you, Joyce. Good afternoon, leaders and management. First, I would like to congratulate on your recent performance.
My question is about the AI smartphone and the heat dissipation. You talked about the growth of next year is higher. We saw a number of 150 million units in your report. With the rapid growth of AI, whether this volume and the value can be grown to over one billion or higher figure? What's the outlook of its value? Whether this segment has a potential of one or two billion.
There are different categories in our heat dissipation, and conventional is the bronze pipe for the heat dissipation. The biggest challenge of the bronze was the size. These heat dissipation VCs are changed from the bronze to stainless steel. From the low and the mid products that will use this stainless-steel heat dissipation, but this heat dissipation function is not as good as the bronze.
The high performance or ultra-thin heat dissipation is the trend in industry. Both in the smartphones, the laptops, or even the MR, AR, VR, they will also use this high-performance ultra-thin heat dissipation. They will have higher requirements of its thinness and performance. At least in the smartphone, the high performance of bronze heat dissipation, the cost is about CNY 10. With the AI's development, this kind of high performance will return to the market. In the timeline, I think this will be penetrated in the market next year or the year after next year, in 2025 - 2027. If the penetration rate can reach 20%-25%, the market for AAC can easily exceed over CNY 1 billion. This kind of heat dissipation will be firstly applied in the smartphones because the chips are integrated.
When these integrated chips can be extended to the laptops and other devices, these ultra-thin heat dissipation products will expand its market. In the next three years or more, this market's potential can exceed CNY 1 billion. Where is the ceiling? We still need to observe the client's demand. We need to provide an AI with a high-performance transformation and a transmission on energy. AAC has its strategic plan on this regard. Apart from these heat dissipation products, with our manufacturing capability, all the VCs are automatically manufactured. We also have our upgrade plan on our automation, this will help us to reduce the cost and also help the development of the industry.
Thank you. It's very clear.
Thank you, Andy's question. Next question is from Xia Jun and Liu Lin. Please go ahead. Thank you, Joyce. Good afternoon.
In the first half, the GP margin has significantly improved. You also mentioned the product mix improvement. Do you have any breakdown of the product mix and any improvements of specific segments and any breakthroughs in the acoustics and optics? Thank you.
In our reports, we mentioned the ASP of the acoustics, the growth is a double digit. Smartphone market is more stable, with the stable development, our shipment volume will be increased. It includes several new product promotions. The first one is the SLS structure product. In the smartphone, the power requirement is high, but the space for the size is limited. We use this structure to enhance the performance and also control the cost based on the platform.
All the high-end, high-performance products, including the mid-performance products, which are of 500 or the 2,500 products, will be upgraded with the SLS structure. This kind of upgrade will continue because of the new trend, the ultra-thin models and the other foldable models. The foldable models, if they want to maintain the same performance or even better performance, they need this structure to balance the performance and the power and the size. The SLS, it will be the trend in terms of our low and the mid-end products. In some noisy environment, they need the higher voice volume, and we will maintain the higher voice volume of our products. We will increase 30%-50% of the voice volume in our low and the mid-end products, to have a differentiation with other products.
The large voice volume products, their shipment volume this year is over 5,000. The combo of products of a motor and a speaker will continue to promote and penetrate in the end market. The combo is a combination of a motor and a speaker, and within one space, and this kind of price is further optimized, and we have these advantages. Some new products, for example, the retractory cameras as well as the motors, and we will make more ultra-thin models and to make breakthroughs. In the next year and in the next one or two years, we want to achieve milestone breakthroughs. Innovation needs time. We think 1.5 year or two years, and you will see the market penetration.
From the demand of the customers, we have already witnessed the development of the products and introduction of the products. Some products will be launched at the end of this year in the market.
Thank you. It is very clear.
Frank He from HSBC, please go ahead.
Thank you, Joyce. Congratulations on your interim results. I have two questions. The first question is WLG, and also the future, the modules. WLG, the individual modules volume is large, but compared with the size, it needs to be improved. As far as I know, you have made a significant improvement in the yields. Would you like to share more information on the WLG's outlook?
I would like to take the question. WLG's technology, I think. It is not about the GMO's combination with other technology.
It is more like the semiconductor technology depends on the simulation and also crafts as well as the high precision of the tools and equipment. About a year ago, the WLG is about 1.4 in, and it was a new technology, and many people think this kind of performance will be lower than the GMO. This will be higher. Actually, this kind of performance will be higher than the plastic lens and with the same diameter. Not mentioned in a higher diameter. This is the definite and affirmative progress we have achieved. Compared with GMO, the individual WLG has a very high performance in terms of the yield. For example, around about 30 pieces in the automotive products. The product yield is high, it is about 85%-90% in the car products.
In NPI level, if we can achieve the mass production and this yield, for example, we have completed 10 million, and the product yield can reach about 90%. With regard to the cost, we cannot state here directly, but compared with the GMO, it is only 30%-40% of its cost if we just compare their costs, or even lower. Because we have these products of GMO, and we can obtain an accurate information of our customers. If we have a conservative calculation, this cost can be lower than 35%-40%. The WLG has an advantage in its function, performance, and the cost.
Thank you. The semiconductor and also transmission. We see the revenue was down for the first half, but the GP margin was up. I would like to know the reason, and whether this kind of growth can be sustained.
From the revenues perspective, can you make an expectation that in the second half or next year, the revenue will have a positive growth?
Kelvin, can you take the question?
Sure. I would like to answer this. In the first half of the year, the GP margin's growth is mainly due to the self-proprietary microphone. From last year to this year, we are promoting the proprietary microphone. The demands and also the ASICs are manufactured by ourselves, and we can control the cost well with the abundant shipment volume. This cost is well under control. With the AI's developments, we will continue to promote the proprietary microphone. We also have a plan to develop the high-end microphone or more high-end microphones and to support the clients in both domestic and the overseas markets.
With the ramping up of our customers and also the timing of their ramping up. This mass production will be realized in the second half. The revenue of the first half is kept flat with last year. Next year, with this high-end microphone's introduction or this high-end mobile phone's introduction, this kind of growth will be speeded up. Next year, there will be about three to four pieces used in one high-end cell phone. Starting from next year, we have our good preparation and the R&D, and this will support us rapid development, and we expected next year's microphones business. In both the product portfolio and the proprietary ratio, as well as the profitability, will have a very significant growth. This AI trend will last at least for two to three years, and this also paved the way for this development.
We have a good connection with our customers and the innovation in the R&D is faster than the peers. In the next two to three years, we will have a very strong potential in this market.
Thank you, Kelvin. Thank you, management.
This next question is from Tina.
Thank you, management. I would like to ask you a question about the automotive products, and PSS has already been consolidated. In the future, how do you leverage their customers and R&D resources to expand your business? In your report, we also see in the mid to high-end EVs. You have further development, do you have any price pressure? What kind of a speed we will adopt in the PSS automotive products?
Thank you for your question. After the acquisition of PSS, we have also obtained a very good R&D and customer platforms.
Through this customer platform, how do we apply our products into automotive? This is our plan. As mentioned before, in the microphone and also the algorithm and the motor, we have already achieved the designs in the platforms. In the future, we want to realize our core technologies into automotives and also make breakthroughs. This is the important strategy in our automotives. The business growth of PSS , actually is related to the PSS acoustic products. It does not only include the speakers, but also the amplifiers and their tuning services, et cetera. This can be synergized with AAC's own technology, and to provide the customers with the high-quality hardwares as well as the outstanding experience. This is the future growth trend of this business.
Next year, we think this growth will be obtained next year, not only in the hardware, but also the comprehensive development.
Thank you. Do you have any growth target? Like some compound goals or long-term growth target?
In the next three to five years, the volume can be reached to the volume of our consumer products. Three to five years to achieve this target.
Yes. Thank you.
I will add a little. The first product of the mass production is from 2022 and after the acquisition of PSS. The competition of our company is largely improved, because PSS has a good connection and a customer base in the Europe and the U.S. market, and its R&D potential is also high. In the future, we have the plan to further penetrate in the Europe and U.S. markets and also speed up the upgrade.
In Chinese markets, we also have our plans because the automakers' breakthroughs and innovations are faster. We have the mass production in the amplifier and algorithm, and we also have the soon-to-be microphone. In the next one or two years, those products will enter the automakers domestically. This kind of customers can be introduced to PSS. The growth of PSS includes two parts. The first part is its traditional clients and also their products. The second part is from their new products and the clients from AAC. In the next three to five years, with the paralleled development of the two markets, we will emphasize the synergy with the PSS. Our R&D will also help PSS to enter new markets. For example, the Japanese and the Korean markets.
Therefore, in the next three to five years, those strategies will be implemented step by step. In the short term, PSS will still rely on its convention routes in the Europe and the U.S. markets, and to achieve a stable development. In the future, this will be expanded.
Thank you. The next question is from Everbright. Wang Yue, please go ahead.
Thank you. I'm analyst from Everbright. Good afternoon, management. My question is about the short-term development. In the Q4, the outlook of the consumption smartphone is looming or there will be the sales declining in the market. What's your outlook of your optics and acoustics, and the growth trend will be maintained in the second half? Do you have any guidelines or targets of your GP margin in the second half? Thank you.
I will answer first part of the question.
For this plan, and also the guideline, is prudent for this year. The markets we expected this year is about 1.15 billio- 1.2 billion, and this is very prudent and conservative. The second half of the market, or the second half of the year in the market, this kind of status will be stable. Of course, there are different opinions of customers, and we will be in line with our customers' expectation because they have their own forecast and we will base on their forecast to make our plans. Based on their forecast and our development is relatively steady, and it won't have a big influence on our product selection or model selection because those kind of decisions have already been made in the first half.
Product optimization, the shipment volume increase, and the ASP improvements, this kind of opinions won't have a big impact. Of course, there will be different opinions or different voices on the key clients, on different or big clients. We have already considered these volatilities in our strategy in the second half, and this won't influence us in the second half. In the next three to five years, there will be different trend or tendency in the market. We will have our risk management strategy as well.
Okay, I will make a supplement on some figures. For the first half, as I mentioned before, we talk about the optics and the heat dissipation, also on other products and the electromagnetic transmission, all the growth are stable. The revenue is 15% higher compared with last year.
It doesn't include the consolidation of PSS . For the first half, for the full time, the PSS consolidation is about CNY 3 billion. The GP margin is also growing about 21.1%, including PSS. For the full year, the second half, in terms of the specification and also the product mix for the full year, the GP margin, including the PSS, will be higher than the 21.5% to about 22%-25%. Thank you.
Thank you.
Thank you for your questions. Next question is from Kane.
I have a small question. The R&D expenditure is increased by 40%. What's your forecast for the second half and the next year?
This R&D expenses increase is related to the development of new products in the second half of the year. Yes, of course, the second half of the year, the revenue will be higher.
We will have higher R&D expenses in the first half. The number of our R&D staff is stable. We think we have an average and a kind of balanced R&D expenses for the full year. We want to help our customers to do the upgrade and experience an upgrade. This will have more projects development. It seems the R&D expenses are higher. In the next one or two years, this kind of expenses will be stabilized. Yes. This is a kind of secular impact. Some R&D are made in the first half, and this will also trigger the growth of the revenue of the second half. The R&D expenses are always about 7%-5%, and we controlled at this rate.
Thank you very much. Thank you, management's kind answers.
The last question is from Haitong Securities.
Good afternoon, management. I'd like to congratulations on your interim results, and its outstanding performance in the first half. My first question is about, for example, the R&D and the technology restoration or preparation in the haptics and acoustics and optics, et cetera. This is also a platform-like company. Also we see the development of AI glasses, and AI glasses will become the advantages of the company. With regard to the AI glasses, do you have any optic preparation or these instruments capability?
Okay, I'd like to take this question. We are conducting the XR preparation, including the VR and AR, and the first project is about the MR products, including this 2P3P and also other components of the optics or some kind of these refractive and optics products and some products are in the mass production and the shipments.
The Meta AI goggles sales, as far as I know, has already achieved over one million. We see the potential of the market need. This also unleashes the potential of the speakers. We are collaborating our customers for the mutual R&D, and this kind of products will be launched in the market soon in the next one or two years. We need to consider its smaller size and privacy and high performance. In the privacy protection, we have our technology advantages. In the AI goggles, we think there is a great potential for us. AI goggles also related to the optics, like this optical display. We also invested in the optical waveguide and also these other investments and the semiconductor process. We are collaborating with our partners to do the design and the simulation.
We see this need of the AI goggles. There will be some single-color AI goggles in the market, and then next or the year after next year, there will be color AI goggles. It also raised a challenge for us. With our current optics, including AR display and also our structural components and our technology, as a supplier, we can help our customer to upgrade their products and need to do their vertical integration. The AI goggle is relatively simple structural products if most of the components can be installed by us or integrated by us. Many clients hope us to do this vertical integration, because those wearable devices also have price pressure. If the AI goggles is about over $1,000 , this pressure will be high.
In the next three to five years, the plan will be more clear and obvious, and we are collaborating with our customers in domestic and overseas on the R&D.
Thank you, management, and thank you for your question.
Next, we'd like to ask Benjamin Pan to make a summary.
We are very happy to see that we have made a great development since 2020 under the leading of Kelvin's team. We have fulfilled this M&A and other performance. This CNY 537 million is reflecting our potential growth. The acoustics gross profit has returned to its sound check. We can achieve this 35% in the near future. Before we only have this micro acoustics, and with the acquisition of PSS, we established this customer and a complete whole scenario solution provider. This will become the growth force or this driving force for our growth.
Acoustics is the first segment of the company of over CNY 10 billion revenue. In the next five years, it can reach about CNY 20 billion. For example, this over 30% GP margin can be maintained. The PSS as well as the amplifier, their GP margin of 25% can be maintained as well with our efficiency enhancements and the cost control. We still have the potential for this growth, and this is the most important segment in our company. Optics. We also entered this sound and benign development. The GP margin of the optics, together with the sales growth, will be in line with our products upgrade. As mentioned by Ms. Guo, the shipment volume of this year of our lens is increased by 9%, but the sales revenue, the sales value is increased about 20%.
The GP margin for the first half is less than 17%, and in the second half, we want to achieve 25%. The GP margin will be over 25% in the second half. With the upgrade of the products and the technology improvement, we will also achieve the product yields and the efficiency development, and they will pave the great potential for the next year's GP margins growth. G+P, together with the WLG's development, we also see a lot of development, and in the future, we will see more mass shipment to our customers, and this will gradually become the highest valuable segment. The GP margin of the optics module will be further improved as well, and we want to use two years to benchmark with the leading companies in the industry. Thirdly, I would like to talk about the transmission and the haptic products.
With its value growth, in the future, we will spin off this with this precision mechanics. For the first half of the year with our motor upgrade, especially the Android motor upgrade, our GP margin has already achieved about 30%, and this growth will be maintained. Most importantly, in this segment, we want to achieve the higher growth and status and trend in this segment. This is our expectation for the transmission and this motor business. Fourthly, is about our precision mechanics and heat dissipation products. In the first half, the GP margin is about 18%. The scale at present is only about 150,000, but in the future, this potential will exceed CNY 1 billion. At present, we can foresee CNY 5 billion in the market, and also this has the potential of CNY 10 billion.
Next is about the sensor and the semiconductor, and the GP margin is improved. In the second half, this will be further improved, and the momentum will be kept in the next one or two years. We also have our self-proprietary R&D. This is also driving the value of our products. I would like to kindly remind you that this CNY 537 million profit is not our target. It is also about our potential of the future development. Thank you.
Thank you. Our time is constrained. AAC Technologies 2024 interim results announcement has to be concluded. Our results roadshow materials will be uploaded to the company official website. Feel free to contact the company IR team. Thank you.
Thank you.