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, supported by improved optics profitability and high-margin business expansion.

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

• Transformation into an AI-driven sensing and interaction leader, expanding in optics, automotive acoustics, and thermal management.

Financial highlights

• Gross profit increased 16.1% year-over-year to RMB7.02 billion, with gross margin stable at 22.1%.

• Operating cash inflow reached RMB7.18 billion (+38.1%), free cash flow RMB4.88 billion (+65.1%), and cash and cash equivalents at RMB8.61 billion (+14.2%).

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

• EBITDA increased 13.9% to RMB6.32 billion.

• Basic EPS rose 42.5% to RMB2.18; proposed final dividend of HK$0.35 per share, up 45.8%.

Outlook and guidance

• Revenue growth for 2026 expected at 5%-10% for most segments, with PM segment over 30%.

• Premiumization in optics, expansion in AI hardware and automotive audio, and high-end branded automotive audio systems to drive future growth.

• Gross margins projected to rise steadily, with optics ASP to increase by 5%-10%.

• Continued investment in R&D and global manufacturing to support innovation and supply chain resilience.

• Strategic focus on AI perception infrastructure, intelligent cockpits, data center thermal management, XR, and robotics.