AAC Technologies (02018) announced its full-year 2025 results, reporting a fifth consecutive year of record-breaking group revenue, which reached 31.82 billion yuan, representing a year-on-year increase of 16.4%. Net profit rose by 39.8% to 2.51 billion yuan. Operating cash flow amounted to 7.18 billion yuan, up 38.1% compared to the previous year.
In 2025, AAC Technologies accelerated its expansion into the AI sector, achieving breakthroughs in several innovative business areas. Management emphasized that the company has successfully transitioned from a traditional component manufacturer focused primarily on mobile phone acoustics and haptics. AI has now become the core driver of growth across multiple product lines, with rapid expansion in consumer electronics thermal management and forward-looking investments in AR glasses and robotics, all fueled by new demands and industrial transformation brought about by AI.
Looking ahead to 2026, the CFO expressed confidence that, despite industry volatility, the group's diversified business engines will support steady revenue growth, with the growth rate expected to be no lower than the 2025 level. Gross margin is also anticipated to remain stable or improve from the 22.1% achieved in 2025.
In the second half of 2025, the acoustics business generated revenue of 4.83 billion yuan, up 1.6% year-on-year and 37.0% compared to the first half. The gross margin for this segment was 27.9%, an improvement of 0.7 percentage points from the first half. For the full year, acoustics revenue reached 8.35 billion yuan, a 1.7% increase, with stable or growing market share among key customers. The annual gross margin stood at 27.6%.
In the AI era, acoustics, as a primary output method for smart devices, is experiencing new growth opportunities. As a leader in mid-to-high-end acoustics, AAC Technologies continues to drive industry upgrades with over three decades of expertise. High-end speakers, including the ultra-thin, high-performance SLS master speakers and coaxial speakers, achieved double-digit shipment growth. The industry-first Coaxial Speaker 2.0 offers unique layering and fidelity. The group also developed a smarter, more natural dual-speaker system for the Doubao AI phone, enhancing immersive interaction experiences.
The automotive acoustics business reported annual revenue of 4.12 billion yuan (including approximately 356 million yuan from the acquisitions of Hebei Chuguang and PSG), a 16.1% year-on-year increase, further expanding market share and establishing the company as a leading global automotive audio supplier. The gross margin for this segment was 23.8%. During the reporting period, AAC Technologies promoted system-level acoustic products, creating an advanced 9.2.4.8 multidimensional acoustic layout for the top-tier flagship SUV JiKr 9X, integrating 32 speakers and 8 seat exciters for an immersive 4D auditory experience. The company also showcased various automotive acoustic products at the Munich Motor Show, including compact, ultra-thin, and integrated speakers, as well as functional products for AVAS, engine sound simulation, and headrest audio, alongside proprietary algorithms.
In the second half of the year, the optics business revenue was 3.08 billion yuan, up 10.4% year-on-year and 16.3% compared to the first half, driven by continued upgrades in the smartphone optics industry and successful advancement in high-end plastic lenses and optical modules. The gross margin was 12.6%, improving by 4.7 percentage points year-on-year. For the full year, optics revenue reached 5.73 billion yuan, a 14.5% increase, with gross margin rising 5.0 percentage points to 11.5%. Leveraging leading part precision, assembly efficiency, and exclusive coating technology, AAC Technologies increased its share in mid-to-high-end lenses and optimized its product mix, securing multiple high-end 7P projects. Shipments of 6P and above plastic lenses accounted for over 18% of total annual shipments, with nearly 15 million 7-element lenses shipped, reinforcing the group's position in the high-end optics market. For optical modules, those with 32 megapixels and above represented over 40% of shipments, up 8 percentage points year-on-year, while OIS module shipments nearly doubled, and periscope modules saw mass production. WLG technology reached a milestone, with historic shipment levels for related products. Mainstream flagship series from clients including Xiaomi, Huawei, and Vivo adopted the group's 1G6P lenses and micro-prisms. The micro-prism, manufactured via WLG one-shot molding, increases light intake while reducing module size and has received high customer recognition as the industry's first integrated "convex + prism + concave" micro-prism.
The electromagnetic transmission and precision components division reported combined revenue of 11.77 billion yuan, a 21.3% year-on-year increase, mainly due to higher market share for lateral linear motors and large-scale adoption of innovative side keys and VC cooling plates in the latest models of major customers. The gross margin was 24.5%, up 1.2 percentage points, driven by increased contribution from high-margin products like thermal solutions. For motors, AAC Technologies is co-developing core motor components for a client's first AI hardware device. In emerging businesses, the company launched a self-developed robotic dexterous hand solution integrating motor, transmission, and control systems, demonstrating industrial-grade reliability and flexibility. Finger actuators developed with a partner entered mass production as scheduled, generating annual revenue exceeding 100 million yuan. Thermal management revenue surged 410.9% to 1.67 billion yuan, primarily due to volume shipments of VC vapor chambers for the iPhone 17 Pro series. The company's capabilities in thermal simulation and fully automated precision manufacturing were highly commended by customers, with further exploration of thermal project opportunities in additional end-use categories. Beyond consumer electronics, the group is advancing progress in data center liquid cooling systems and robotics thermal management. The recent acquisition of Yuandi Technology, a leading liquid cooling product manufacturer, marks a new strategic move into data center liquid cooling, AI server cooling, and high-end thermal management. Yuandi Technology has seen annual order volume double consistently since its establishment and serves as a top liquid cooling supplier for internet and financial sectors, delivering large-scale projects for major companies.
In the second half of the year, sensor and semiconductor business revenue reached 963 million yuan, a 150.6% year-on-year increase, with a gross margin of 14.9%, largely stable compared to the previous year. Full-year revenue for this segment was 1.57 billion yuan, surging 103.1%, driven by increased share of high signal-to-noise ratio microphones in key customer models. During the period, AAC Technologies developed an industry-leading microphone array solution for the Kuake AI glasses, redefining interactive experiences with smaller size, lower power consumption, and up to 77dB signal-to-noise ratio. The company also developed new sensors such as MEMS speakers and inertial sensors, preparing for future integration into a wider range of smart devices.
Management stated that AAC Technologies is accelerating its strategic transformation from a component supplier to a builder of AI sensing infrastructure. Moving forward, innovation will be the core engine, combining deep expertise in micro-devices with keen user scenario insights to deepen presence in high-growth areas like smart cockpits, data center thermal management, XR, and robotics, aiming for new heights in blue ocean markets.