SINGAPORE, Mar 26, 2026 - (ACN Newswire) – March 19, AAC Technologies Holdings Inc. (HKEX Stock Code: 2018) held its 2025 Annual Results Announcement Conference in Singapore and reported a strong set of annual results. The Group achieved RMB 31.82 billion in annual revenue, representing a 16.4% year-on-year increase and marking a record high of over RMB 30 billion, with net profit rising 39.8% to RMB 2.51 billion. These results reflect the continued success of the Company’s strategic transformation, with revenue reaching new highs in recent years and net profit delivering sustained double-digit growth.

“Pioneering Innovation” and “AI Empowerment” have emerged as the central themes of AAC’s recent developments, driving its strategic transformation from a traditional component supplier to a builder of AI perception infrastructure.

In an interview during the conference, AAC’s Chief Financial Officer, Guo Dan, highlighted that the Company’s strategic new business lines — represented by optics and automotive solutions — together with its expansion into high-potential AI sectors such as heat dissipation, robotics, and XR, have become the key growth engines supporting mid-to-long-term sustainable development. This strong momentum is expected to continue unlocking further growth potential in 2026.

Looking ahead to 2026, Dan expressed strong confidence. Despite persistent industry volatility, the Group will capitalize on its diversified business portfolio to deliver steady revenue growth, with the growth rate expected to be no lower than that of 2025. At the same time, the gross profit margin is projected to improve steadily from the 22.1% baseline in 2025.

( AAC Technologies CFO Guo Dan)

1. On the Optics Business: Plastic Lens Gross Margin to Rise to 35%, with Proprietary WLG Technology Reaching Key Milestone

As a core strategic growth driver, AAC’s optics business (AAC Optics) has achieved rapid development since in 2019. It reported RMB 5.73 billion in revenue in 2025, with a compound annual growth rate (CAGR) exceeding 32% over the past six years, establishing itself as a key pillar of the Group’s overall growth.

Dan stated that in 2026, the optics business is expected to deliver steady revenue growth while further improving its gross margin. In 2025, the Company continued to upgrade its mid-to-high-end lens product mix, with the shipments of lens products with 6 or more elements accounting for over 18% of the total and seven-element (7P) lens shipments reaching 15 million units. Building on this foundation, the gross profit margin of plastic lenses is projected to rise from 30% in 2025 to 35% in 2026, reaching a industry-leading level.

Notably, AAC has made a significant breakthrough in its globally proprietary Wafer-Level Glass (WLG) lens technology, reaching a key milestone. This advancement not only expands the scope of application scenarios but is also expected to drive a shift in the market landscape traditionally dominated by plastic lenses. Dan added, “In the future, whether in smartphones, automotive solutions, or emerging smart terminal devices, we will see more stable incremental growth that will inject long-term momentum into our business growth.”

2. On the Automotive Solution Business: The "Second Growth Engine" Solidifies, with 2026 Revenue Expected to Grow by 15%-20%

Through the acquisition of Premium Sound Solutions (PSS), AAC has rapidly established a core platform in the smart automotive solution sector, successfully developing a second growth engine for the Company.

Dan revealed that following the acquisition of PSS in 2024 and the acquisitions of Chuguang and PSG in 2025, the Company has become a comprehensive system-level automotive solution provider, expanding its business from smartphones into the entire automotive domain. In 2025, the Company’s automotive acoustics business recorded revenue of RMB 4.12 billion, representing a year-on-year increase of 16.1%. This performance has positioned AAC among the world’s top-tier automotive audio system suppliers, second only to industry leaders such as Harman and Bose.

Regarding the 2026 outlook for the automotive acoustics business, Dan stated that the segment is expected to maintain high double-digit growth of 15% to 20%, while keeping the gross margin stable. The Company’s automotive solution business has now achieved broad customer coverage both in China and overseas, including multiple Asian markets. This diversified regional presence is expected to provide steady and reliable support for both revenue and profit growth.

3. On AI Sectors: Heat Dissipation Business Poised to Reach RMB 10 Billion, with Explorations in XR and Robotics Opening New Frontiers

If optics and automotive solutions represent the Company’s “core growth engines,” then business lines such as heat dissipation, robotics, and XR optical waveguides constitute the high-potential “reserves” for AAC’s future development. Dan noted that the Company’s revenue in the past was primarily driven by traditional mobile phone acoustics and haptics business. However, following years of strategic transformation and amid broader industry technological shifts, AI has become the fundamental driver underpinning the sustained growth of the Company’s multiple product lines.

“For example, the rapid growth of the heat dissipation business is mainly attributable to AI-driven demand. Similarly, our initiatives in robotics and AR glasses are also propelled by AI,” Dan explained. In 2025, the Company’s heat dissipation business recorded revenue of RMB 1.67 billion, grew by 410.9% year-on-year. This performance has further solidified the Company’s position as one of the leading global suppliers in consumer electronics heat dissipation. “As AI technology continues to advance, related application scenarios are expected to extend from smartphones to a wider range of devices, including laptops and tablets, generating strong momentum for the Company’s overall growth.”

The acquisition of Yuandi Technology, with more notable strategic significance, has allowed AAC to formally enter the data center liquid cooling, AI server heat dissipation, and high-end thermal solutions sectors, and extend its capabilities from “terminal-side heat dissipation” to “AI infrastructure heat dissipation” creating a synergistic “terminal + infrastructure” development model. Dan stated clearly, “Leveraging the substantial market opportunities across multiple sectors, our heat dissipation business has the potential to reach and even exceed a scale of RMB 10 billion in the coming years, positioning it as a highly promising and important growth engine for the Group.”

In the XR optical waveguide field, through the acquisition of Dispelix — a global leader in AR diffractive waveguide technology — AAC has become one of the few industry players with vertically integrated capabilities spanning optical waveguide design and manufacturing. The Company can now offer one-stop full display module solutions, encompassing optical waveguides, optical engines, push-pull lenses, eye-tracking systems, and electrochromic technology. AAC is expected to become the world’s first supplier to achieve mass production of SRG full-color optical waveguides for leading customers in 2026. Dan disclosed, “The per-unit value in the optics business can reach USD 100–200. These initiatives are expected to deliver clear mass production and shipment opportunities within the next two to three years, continuously generating significant value in revenue, profit, and long-term market expansion.”

Regarding the robotics field, Dan pointed out that the industry’s market definition, application scenarios, and product forms are still evolving and remain in a diverse exploratory stage. AAC has long maintained deep involvement and has established comprehensive layouts across multiple core areas, including acoustics, motors, optics, structural components, and electromechanics, laying a solid foundation to capture opportunities as the sector matures. “For example, our dexterous hand products for humanoid robots have already entered mass production and shipments, generating over RMB 100 million in revenue last year. In addition, we are co-developing the first motor, as a core component for AI hardware devices, with our customers. Overall, the Company has built deep cooperation with leading domestic and international customers, and we believe we will become an important player in this field in the future.”

4. Strategic Review: Combining Technology Reuse with Ecosystem Construction to Anchor Long-Term Growth

In AAC’s three-decade development journey, the core driver behind its sustained growth has consistently been rooted in the dual logic of technology reuse and ecosystem construction.

Leveraging its long-established, robust technological foundations in micro-acoustics, precision optics, electromagnetic drives, sensors, and semiconductors, the Company has successfully upgraded and expanded its business, with its focus shifting from mobile phones and consumer electronics to emerging high-growth areas, including AI terminals, robotics, XR, smart vehicles, and data center infrastructure. This approach enables its core technological capabilities to be efficiently migrated and continuously amplified across diverse application scenarios.

This development model — “upgrading application scenarios without changing underlying technology” — not only ensures the stability and success rate of business transformation but also allows the Company to rapidly address capability gaps through strategic ecosystem integration, such as the acquisitions of Dongyang, PSS, Chuguang, and Yuandi. Together, these efforts have created a virtuous cycle of “technology–product–scenario–customer.”

The clear pathway to realizing this cycle was articulated by Dan in her outlook: Looking ahead to 2026 and beyond, AAC will position itself as a “builder of AI perception infrastructure,” deepen cross-business synergy and full-scenario coverage, accelerate its expansion into the “AI blue ocean,” strengthen its global footprint, and continue riding the wave of industry development to achieve new heights.

source as Forbes（https://www.forbeschina.com/investment/71292）

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