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AAC Technologies Forecasts Impressive Revenue Growth

On August 21, 2025, AAC Technologies (2018.HK) announced its interim results for 2025 in Singapore, showcasing extraordinary growth in revenue and profit margins. The company reported a staggering RMB 13.32 billion in revenue for the first half of the year, marking an 18.4% year-on-year increase and setting a record high. Net profit soared by 63.1% compared to the same period last year, reaching RMB 876 million.

Strong Second Half Anticipated

AAC's Chief Financial Officer, Guo Dan, expressed confidence in the company's performance, stating that momentum will continue into the second half of the year. Revenue growth is expected to maintain year-on-year increases similar to those seen in the first half, with an overall gross profit margin projected to surpass the 22.1% achieved in 2024.

The growth trajectory is anticipated to be bolstered by advancements in artificial intelligence applications, significantly boosting revenues from key segments like heat dissipation products and MEMS microphones. The in-vehicle segment is also set for stable growth in both revenue and profit margins.

Exciting Milestones in Optical Technology

Noteworthy is the anticipated global shipment of proprietary WLG lenses, with projections of exceeding 10 million units this year—a remarkable forecast that indicates a 50% increase next year. As production scales up, the gross margin on these lenses is expected to surpass that of traditional plastic lenses, marking a pivotal milestone in AAC's technological advancements.

Acoustics Business Continues to Shine

The acoustics sector, a core component of AAC's operations, achieved a revenue of RMB 3.52 billion, although it witnessed a minor decline in gross profit margin to 27.2% in the first half due to the launch of numerous new projects. However, Dan assures stakeholders that operational efficiencies are being honed, leading to anticipated increases in margins for the second half of the year.

Innovative products such as master-level super linear speakers and coaxial speakers saw impressive growth, with shipments exceeding 17 million units—a nearly 40% increase from previous figures. Furthermore, the introduction of the first master-level coaxial symmetrical dual speaker further solidifies AAC's market leadership.

Accelerated Growth and AI Integration

The integration of AI technologies is reshaping multiple business segments within AAC Technologies. The demand for MEMS microphones designed for AI smartphones is forecasted to increase revenue by more than 50% in 2025 alone. Concurrently, the heat dissipation business is also set for rapid growth, propelled by heightened demand due to the power consumption needs of AI-enabled devices, with a revenue target exceeding RMB 1.2 billion in 2025.

Moreover, the growing trend towards ultra-thin foldable smartphones promises additional market opportunities for AAC’s high-performance products, potentially elevating the average selling price of their offerings.

In-Vehicle Innovations Driving Future Success

Having ventured into the automotive sector in 2021, AAC has strategically positioned itself as a Tier 1 supplier to notable automakers in Europe, America, and China. Thanks to acquisitions like Premium Sound Solutions (PSS) and Hebei First Light Auto Parts Co., Ltd., AAC is enhancing its capabilities to deliver comprehensive solutions involving audio, video, and lighting systems.

The automotive acoustics sector alone generated revenues of RMB 1.74 billion in the first half of 2025—growing by 14.2% from the previous year, with a gross profit margin of 23.9%.

Positive Outlook Amidst Market Challenges

Looking forward, Dan commented that the growth rate for the latter half of 2025 is expected to match or exceed that of the earlier half. The company's projected annual revenue will maintain double-digit growth, coupled with a steady improvement in gross profit margin. This growth is underpinned by effective management of research and development, sales, and operational expenses, reflecting AAC’s evolving strategy to capture more market share and deliver consistent returns to shareholders.

AAC Technologies is poised to thrive in this fast-evolving market landscape, continually pushing the boundaries of innovation and performance.