AAC Technologies Expects Group Revenue Growth of Over 18% in 2025, with a Gross Profit Margin Higher than 2024

Rhea-AI Summary

AAC Technologies (AACAY) reported strong H1 2025 results with revenue reaching RMB 13.32 billion, up 18.4% YoY, and net profit surging 63.1% to RMB 876 million. The company expects continued growth in H2 2025 with revenue growth maintaining above 18% and full-year gross margin exceeding 22.1%.

Key growth drivers include AI-driven demand for MEMS microphones (50% YoY growth expected) and heat dissipation products (projected to exceed RMB 1.2B, tripling 2024 figures). The company's proprietary WLG lens technology will surpass 10 million units in 2025 with 50% growth expected in 2026. The automotive division showed strong performance with revenue of RMB 1.74 billion, up 14.2% YoY.

Positive

• Record-breaking H1 2025 revenue of RMB 13.32B, up 18.4% YoY
• Net profit surged 63.1% YoY to RMB 876M
• Heat dissipation product revenue expected to triple in 2025 to RMB 1.2B
• MEMS microphone revenue projected to grow over 50% in 2025
• WLG lens technology achieved 80% yield rate and expects 50% growth in 2026
• Automotive division revenue grew 14.2% YoY with 23.9% gross margin
• Master-level speaker shipments increased 40% YoY to 17M units

Negative

• Acoustics business gross margin declined 2.7 percentage points to 27.2%

News Market Reaction – AACAY

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+0.42% News Effect

On the day this news was published, AACAY gained 0.42%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SINGAPORE, Aug. 26, 2025 /PRNewswire/ -- On August 21, AAC Technologies (2018.HK) released its 2025 interim results report in Singapore. The Group's revenue for the first half was RMB 13.32 billion, a year-on-year increase of 18.4%, setting a new record high. Net profit surged by 63.1% year-on-year to RMB 876 million.

AAC Technologies CFO Guo Dan said that the Company's revenue in the second half will continue to maintain a high year-on-year growth rate, which is expected to be no less than the above figure in the first half, and the gross profit margin for the whole year will be no less than 22.1% last year. With the trend of AI upgrades, multiple businesses such as heat dissipation products and MEMS microphones will double in growth, and in-vehicle product revenue and gross profit will achieve stable growth.

In addition, global shipments of proprietary WLG lenses will exceed 10 million units this year, with a projected 50% increase next year. As the mass production scale increases, the gross margin is expected to surpass that of plastic lenses, marking a milestone breakthrough.

The gross profit margin for acoustics for the full year will not be lower than 30.2% last year

Financial reports show that in the first half, the gross profit margin of the acoustics business of AAC Technologies was 27.2%, a year-on-year decrease of 2.7 percentage points. The business achieved revenue of RMB 3.52 billion, a year-on-year increase of 1.8%.

Dan stated that the slight fluctuation in the gross margin of acoustics, one of the Company's traditional core businesses, was mainly due to the introduction of a large number of new product projects in the first half. As operational efficiency gradually improves in the second half and products enter large-scale mass production, the gross margin for acoustics will steadily increase. The Company's annual gross margin for acoustics will remain at least as high as 30.2% last year.

In the first half of 2025, AAC Technologies launched a series of innovative acoustic products. The master-level super linear speakers (SLS) and coaxial speakers maintained their leadership in the mid-range to high-end market, with shipments exceeding 17 million units, representing an increase approaching 40% year-on-year. The Group introduced the first master-level coaxial symmetrical dual speaker and the thinnest speaker in the industry featuring a thickness of just 1.4 mm per unit.

WLG product stands to achieve a milestone breakthrough

In the first half of 2025, AAC Technologies' optics business maintained its rapid growth momentum, with revenue of RMB 2.65 billion, a year-on-year increase of 19.7%. The gross profit margin for plastic lenses improved by more than 10 percentage points, and the gross profit margin for the whole year is expected to exceed 30%. With the rise in both volume and price brought about by the high-end upgrade of smartphones, there will be further room for growth next year.

AAC Technologies' proprietary WLG technology performed exceptionally well and received positive market feedback. The Company secured orders for 1G6P lenses from several leading Chinese customers for their flagship models and exclusively supplied WLG-based ultra-light micro-prism solutions.

AAC Technologies' WLG lens shipments will exceed 10 million units this year, with an expected growth of more than 50% next year. Dan said, "The unique performance advantages of WLG technology will bring profound changes to both customers and user experience, and a growth of more than 50% is certain."

The Company has achieved a yield rate of over 80% in WLG technology and has already made WLG single lenses profitable. With further increases in mass production scale, the gross profit margin of G+P hybrid lenses is expected to reach or even exceed that of plastic lenses.

AI will drive double growth across multiple businesses

AAC Technologies will benefit significantly from the development of the AI industry, with multiple business segments achieving rapid growth. Due to the higher demand for voice interaction functions in AI smartphones, the MEMS microphone business will be the first to benefit, with revenue in 2025 expected to increase more than 50% compared to 2024.

Due to the higher computing power and greater power consumption of AI smartphones, the demand for heat dissipation performance is also increasing, which will directly drive the rapid growth of AAC Technologies' heat dissipation business. The Company has secured orders from high-end overseas customers and expects to begin mass production smoothly in the second half of the year. The overall revenue scale of the heat dissipation product line in 2025 will exceed RMB 1.2 billion, at least tripling that of 2024.

In addition, the trend toward ultra-thin foldable phones will bring more market opportunities for AAC Technologies' high-performance, high-density products, potentially driving continuous growth in the average selling price (ASP) of its innovative products, core components, and modules. It is expected that revenue from the acoustics business will continue to grow throughout 2025, with revenue from motor product business achieving double-digit growth.

Regarding the application of the side buttons module in iPhone, Dan stated that it would be inappropriate to comment on specific customers. In terms of its own products, AAC Technologies' keypad module products began shipping at the end of last year, and the functionality of these products will undergo further refinement and evolution. The Company is capable of providing support to both Chinese and international customers.

In-vehicle product revenue and gross profit will achieve stable growth

In recent years, AAC Technologies has been actively developing its second growth curve. The Company entered the in-vehicle product field in 2021 and has continuously improved its business layout through the acquisitions of Premium Sound Solutions (PSS), and Hebei First Light Auto Parts Co., Ltd. It has developed system-level solution capabilities in areas such as speakers, algorithms and amplifiers.

AAC Technologies has rapidly entered the European, American, and China's leading new-generation automakers through mergers and acquisitions, becoming a Tier 1 supplier. PSS has obtained a favorable design-win with overseas customers, especially mainstream European customers, and its revenue and gross profit will achieve stable growth. Revenue from the automotive acoustics business has accounted for more than 13% of the Group's total revenue. The in-vehicle product business will expand from components to branded system products and the Company is expected to become a diverse solution provider integrating audio, video, and lighting.

Financial reports show that in the first half of 2025, AAC Technologies' in-vehicle product business generated revenue of RMB 1.74 billion, a year-on-year increase of 14.2%, with a gross profit margin of 23.9%. The Group obtained a design-win of a flagship SUV of a Chinese new energy vehicle (NEV) brand, and the project features 32 speakers, 40-channel amplifiers, algorithms, and tuning services.

Regarding the hot topics of market concern, Dan said that based on the current situation, AAC Technologies' growth rate in the second half of the year will be no lower than that in the first half, with annual revenue maintaining double-digit growth year-on-year and gross profit margin steadily improving. While achieving business growth, the Company has kept its research and development, sales, and management expenses at a reasonable level, which is a result of the Company's transformation in recent years. The Company will actively seize market opportunities, expand its market share, achieve steady performance growth, continue to bring better returns to shareholders, and share the fruits of the Company's development.

FAQ

What were AAC Technologies (AACAY) H1 2025 financial results?

AAC Technologies reported H1 2025 revenue of RMB 13.32 billion (up 18.4% YoY) and net profit of RMB 876 million (up 63.1% YoY).

How is AAC Technologies performing in the automotive sector?

The automotive division generated revenue of RMB 1.74 billion (up 14.2% YoY) with a 23.9% gross margin, representing over 13% of total revenue.

What is AAC Technologies' outlook for WLG lens production in 2025-2026?

AAC Technologies expects WLG lens shipments to exceed 10 million units in 2025 with over 50% growth projected for 2026, achieving a yield rate above 80%.

How is AAC Technologies benefiting from AI trends?

AAC Technologies expects significant AI-driven growth with MEMS microphone revenue increasing over 50% and heat dissipation products revenue tripling to RMB 1.2 billion in 2025.

What is AAC Technologies' revenue guidance for 2025?

The company expects full-year 2025 revenue growth to maintain above 18% with gross profit margin exceeding 22.1%.