AAC Technologies Expects Group Revenue Growth of Over 18% in 2025, with a Gross Profit Margin Higher than 2024
MWN-AI** Summary
AAC Technologies (2018.HK) has announced a robust forecast for 2025, projecting a group revenue growth exceeding 18%, alongside an improvement in its gross profit margin compared to 2024. In its interim results for 2025, the company reported a revenue of RMB 13.32 billion for the first half, marking an increase of 18.4% year-on-year, and a remarkable net profit surge of 63.1% to RMB 876 million.
According to CFO Guo Dan, AAC's revenue for the second half is expected to mirror the strong growth seen in the first half. Key growth drivers include advancements in AI technology, which are anticipated to significantly boost revenues in sectors such as MEMS microphones and heat dissipation products. The company’s proprietary WLG lens technology has also gained traction, with shipments predicted to exceed 10 million units this year and a target of over 50% growth next year.
Despite a slight dip in the gross profit margin for their acoustics business down to 27.2% due to new product launches, AAC Technologies is confident that operational efficiencies will enhance gross margins in the latter half of the year. The anticipated full-year acoustics gross margin will remain above 30.2%.
In terms of new product innovations, AAC Technologies showcased a range of cutting-edge acoustic products, including super linear and coaxial speakers, achieving nearly 40% growth in shipments year-on-year. The company is also making strides in the automotive sector, having expanded its in-vehicle product line significantly.
With aggressive expansion plans and an emphasis on R&D and market share growth, AAC Technologies aims to enhance its value proposition for shareholders while navigating a promising market landscape.
MWN-AI** Analysis
AAC Technologies (2018.HK) is poised for impressive growth, with projected revenue increases exceeding 18% in 2025 and improved gross margins. This optimistic outlook is supported by the company’s strong performance in the first half of 2025, where revenue surged to RMB 13.32 billion and net profit rose by over 63%. Such robust figures indicate effective management and a solid growth strategy, which will be crucial as the company navigates the evolving market landscape.
Key growth drivers include advancements in AI technologies, which are boosting demand for MEMS microphones and heat dissipation products. AAC's initiative to enhance its acoustics division through innovative product launches is likely to stabilize margins as production efficiencies are gained in the latter half of the year.
Furthermore, the company’s expansion into WLG lens production is noteworthy. By focusing on high-demand, proprietary products, AAC is set to surpass traditional margins, aided by a 50% growth in lens shipments expected next year. This positions AAC favorably against competitors, particularly in high-end smartphone markets where quality and performance are paramount.
Investors should also consider AAC’s strategic entry into the automotive sector. With a 14.2% revenue increase in its in-vehicle product line, the company is diversifying its portfolio and leveraging partnerships with leading automakers. Given the rising trend of electric vehicles, this segment holds significant long-term potential.
In summary, AAC Technologies presents a compelling investment opportunity, bolstered by strong growth potential in both established and emerging markets. With improving financial metrics and strategic initiatives, investors would benefit from positioning themselves in anticipation of further gains in 2025, aligning with AAC’s innovative trajectory. Continuous market monitoring and adaptive strategies will be key in harnessing AAC's long-term value.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
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 busines s. 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.
SOURCE AAC Technologies Holdings Inc.
FAQ**
How does AAC Technologies Holdings Inc. ADR AACAY plan to sustain its projected revenue growth of over 18% in 2025 amidst increasing competition in the semiconductor and optics markets?
What specific strategies will AAC Technologies Holdings Inc. ADR AACAY implement to improve its gross profit margins beyond the 22.1% benchmark from last year?
In light of the expected 50% increase in WLG lens shipments by AAC Technologies Holdings Inc. ADR AACAY, what factors contribute to the anticipated growth and profitability of these products?
How will the burgeoning AI industry specifically impact AAC Technologies Holdings Inc. ADR AACAY’s MEMS microphone and heat dissipation businesses, according to your projections for the 2025 fiscal year?
**MWN-AI FAQ is based on asking OpenAI questions about AAC Technologies Holdings Inc. ADR (OTC: AACAY).
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