The sales of plastic lenses have significantly increased. AAC Technologies' revenue in the first half of the year reached a new high, exceeding 13.3 billion yuan. | Frontline News

Author: Ou Xue

Editor: Peng Xiaoqiu

On August 21st, AAC Technologies (2018.HK) released its mid - year performance report for 2025 in Singapore. The group's revenue in the first half of the year reached RMB 13.32 billion, a year - on - year increase of 18.4%, hitting a new high. The net profit increased by 63.1% year - on - year to RMB 876 million, mainly due to the continuous improvement in the profitability of the optical business and the rapid growth of the precision structural components business.

The financial report shows that AAC Technologies' operating cash inflow in the first half of the year was RMB 2.89 billion, a year - on - year increase of 9.1%. As of June 30, 2025, the group's net asset - liability ratio was 4.7%, and the cash on the book was RMB 7.75 billion.

Looking at the business segments, in the first half of 2025, AAC Technologies' acoustic business revenue was RMB 3.52 billion, a year - on - year increase of 1.8%; the automotive acoustic business revenue was RMB 1.74 billion, a year - on - year increase of 14.2%; the optical business revenue was RMB 2.65 billion, a year - on - year increase of 19.7%; the revenue from electromagnetic drive and precision structural components was RMB 4.63 billion, and the revenue of this combined segment increased by 27.4% year - on - year; the revenue from sensors and semiconductor business was RMB 608 million, a year - on - year increase of 56.2%.

It is worth noting that the optical business made a significant contribution to the company's performance in the first half of the year, especially the plastic lenses. Guo Dan, CFO of AAC Technologies, revealed that the sales volume of plastic lenses increased significantly in the first half of the year, with a gross profit margin of over 30%, showing strong market performance. This business is expected to continue to improve in the second half of the year.

Guo Dan further stated that the increase in the value of plastic lenses is mainly due to customer expansion and the improvement in the penetration rate of high - end products. For example, there is a strong market demand for high - end products such as 6P and 7P plastic lenses and G + P glass - plastic hybrid lenses. The shipment volume of G + P lenses is expected to exceed 10 million this year and is likely to be even higher next year. This shows that the recognition and market share of G + P solutions in high - end models are continuously increasing.

Looking forward to the second half of the year, AAC Technologies' management is optimistic. It is expected that the company's revenue will continue to grow rapidly. The year - on - year growth rate of revenue in the second half of the year is expected to be no less than 18.4% in the first half of the year. Overall, Guo Dan believes that the mobile phone and automotive sectors will be the two stable pillars for AAC Technologies' subsequent growth.

In terms of mobile phones, Guo Dan said that although the global smartphone shipment volume is relatively stable, the value of high - value products is increasing. On the one hand, the ultra - thin trend of folding phones brings opportunities for value enhancement in acoustics, motor structural components, etc.; on the other hand, the camera function and AI applications of smartphones create new demands, greatly increasing the demand for MEMS microphones, heat dissipation, etc.

In the first half of this year, AAC Technologies' heat dissipation business revenue increased by over 45% year - on - year to RMB 221 million, and its products were rapidly adopted in the flagship models of global leading customers. "We are the main supplier of Android phones. The heat dissipation sales volume was over RMB 300 million last year, and it is expected to triple this year. Moreover, the growth trend will continue for many years, and the application scope will also expand." Guo Dan said.

In the automotive sector, after the company's previous acquisition of PSS, it acquired Chuguang Automobile this year. During the reporting period, AAC Technologies continued to introduce new customers and new models, further leveraging the synergy between the group and PSS. It has won a project for a flagship SUV of a domestic new - energy brand, including an audio system with 32 speakers, a 40 - channel power amplifier, and software tuning to create a super - luxurious in - car acoustic experience.

In addition, the group's acquisition of Chuguang Automobile, whose main product portfolio includes smart microphones, E - call microphones, and RNC sensors, etc. The smart microphones have covered all major models, strengthening the group's layout in in - car acoustic system solutions.

Guo Dan said that the overall performance of the company has been relatively stable after the acquisition of Chuguang Automobile. Chuguang Automobile has been consolidated into the financial statements since June, and it is expected to contribute over RMB 200 million in revenue to the company this year.

"In the future, cars will become smart devices similar to mobile phones. They have great potential in terms of sales volume, price, and market opportunities. We are very optimistic about their prospects and hold a positive attitude." Guo Dan said.