AAC Technologies Holdings Inc.

For 2025, AAC Technologies reported revenue of RMB 31.82 billion, up 16.4% year over year. Gross profit was RMB 7.02 billion, up 16%, and gross margin was 22.1%, flat year over year. Net profit rose 39.8% to RMB 2.51 billion. Operating cash inflow was RMB 7.18 billion, up 38.1%; free cash flow was RMB 4.88 billion, up 65.1%; CapEx was RMB 2.83 billion, up 21.5%; cash and cash equivalents were RMB 8.61 billion; and net gearing ratio was 2.1%, down 1.7 percentage points. By segment, acoustics full-year revenue was RMB 8.35 billion, automotive acoustics RMB 4.11 billion, optics RMB 5.73 billion, EMD and PM RMB 11.77 billion, and sensor/semiconductor RMB 1.57 billion. Management guided for 2026 total revenue growth of about 16%, gross margin to stay around the low-22% range, PM revenue growth of more than 30%, optics ASP growth of about 10%, optics gross margin to improve from 11.5% in 2025, sensors/semiconductors growth of 15% to 20%, and automotive to deliver double-digit growth with steady margin improvement.

The CEO framed 2025 as proof that AAC’s multi-year transformation is working, saying the group is no longer dependent only on mobile-phone acoustics and is building growth from multiple product lines. He emphasized AI as a key demand driver for heat dissipation, microphones, motors, AR glasses, and robotics, and said the company is positioning itself across consumer electronics, data centers, and automotive. He was upbeat but measured, stressing strategic expansion and continued M&A, while noting the robotics opportunity is still early and customer demand is not yet fixed.

The CFO highlighted the year’s financial quality: revenue growth outpaced expansion in global smartphone shipments, gross profit reached RMB 7.02 billion, and net profit grew faster than sales to RMB 2.51 billion. She pointed to improving profitability from optics and high-margin businesses, plus strong cash generation with RMB 7.18 billion operating cash inflow and RMB 4.88 billion free cash flow, while CapEx remained RMB 2.83 billion and cash ended at RMB 8.61 billion. For 2026, she guided to stable gross margins, including acoustics gross margin around current levels, PM gross margin improving from 2025, optics gross margin rising from 11.5%, and double-digit growth in automotive and sensors/semiconductors.

Analysts focused on smartphone demand, acoustics margins, the Far East acquisition, AI hardware partnerships, optics shipments, heat dissipation growth, automotive acoustics expansion, and robotics/XR commercialization. Management said smartphone softness and memory-price pressure may hurt lower-end phones, but AAC is more exposed to mid- and high-end models and expects AI-driven upgrades to support demand. On the Far East deal, management said it was priced reasonably, with the acquired business expected to contribute over RMB 200 million revenue this year and help AAC enter liquid cooling and data-center markets. On robotics and XR, they said the opportunity is real but still early: there is no fixed commercial roadmap yet for robotics, while light waveguide and light engine products could begin mass production by year-end or early next year, with broader commercialization later.