AAC Technologies (2018) H2 2025 earnings summary

Executive summary

• Revenue reached RMB31.82 billion in 2025, up 16.4% year-over-year, with net profit rising 39.8% to RMB2.51 billion, driven by strong optics, high-margin segments, and diversified business growth.

• Basic EPS rose 42.5% to RMB2.18; robust operating cash flow of RMB7.18 billion supported innovation and expansion.

• Strategic focus on AI hardware, heat dissipation, optics, and automotive acoustics, with global expansion and vertical integration.

• Significant breakthroughs in AI hardware, automotive audio, and optics, with mass production and delivery of premium products.

Financial highlights

• Gross profit was RMB7.02 billion, up 16.1% year-over-year; gross margin held steady at 22.1%.

• Operating cash inflow was RMB7.18 billion, up 38.1%; free cash flow increased 65.1% to RMB4.88 billion.

• CapEx reached RMB2.83 billion, up 21.5%; cash and cash equivalents stood at RMB8.61 billion, up 14.2%.

• Net gearing ratio improved to 2.1%, down from 3.8% year-over-year.

• EBITDA increased 13.9% to RMB6.32 billion.

Outlook and guidance

• Revenue growth for 2026 expected at 5%-10% for Acoustics and PM, with gross margins stable or rising.

• PM segment revenue projected to grow over 30% in 2026, with gross margin up 2 percentage points.

• Optics ASP to grow 10% annually, with gross margin improving from 11.5% in 2025.

• Sensors and Semiconductors expected to see 15%-20% growth; Automotive revenue to maintain double-digit growth.

• Premiumization in optics, AI hardware, and automotive audio to drive future growth, supported by continued R&D and global manufacturing investment.