SINGAPORE, Aug. 27, 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 business. 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.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
AAC Technologies Expects Group Revenue Growth of Over 18% in 2025, with a Gross Profit Margin Higher than 2024
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Agreement Calls for Over 100,000 tonnes of Carbon Dioxide Removal (CDR) across 3 Years
GURUGRAM, India, Jan. 15, 2026 /PRNewswire/ -- Varaha, a leading developer of carbon dioxide removal (CDR) projects with smallholder farmers across Asia, today announced a major offtake agreement with Microsoft for biochar carbon removal in India.
Varaha will develop 18 industrial gasification reactors that will operate for 15 years, with a total projected removal volume exceeding 2 million tonnes of CO₂ over the project's lifetime.
The project sources cotton stalks from smallholder farms in Maharashtra, India for use as the feedstock for biochar production. After harvest, these stalks are treated as waste biomass, and open-field burning is a common practice across the region's cotton belt. This project provides an alternative use for the stalks, converting them into biochar through Varaha's biomass gasification facilities and sequestering biogenic carbon for centuries.
Delivering Local Impact
Varaha's biochar project also delivers measurable benefits for farmers and communities:
- Improvement in Air Quality: The project mitigates the widespread burning of cotton crop residue, significantly reducing PM 2.5 pollutants that contribute to poor air quality. By providing an economically viable alternative to field burning, the initiative tackles a major source of seasonal air pollution.
- Promotion of Regenerative Agriculture: Farmers participating in the program adopt regenerative practices like crop residue mulching and biochar application to soils, improving soil health, water retention, and long-term agricultural productivity.
- Lifting Farmer Livelihoods: The program directly enhances the livelihoods of thousands of smallholder farmers, who receive payment both for contributing agricultural biomass and for implementing crop residue incorporation practices.
"This agreement demonstrates that high-integrity carbon removal can drive transformative co-benefits for communities and ecosystems," said Madhur Jain, Varaha CEO. "We're not just removing carbon—we're creating economic incentives for farmers to mitigate open burning of crop residues."
The project's first reactor will operate alongside Varaha's 52-acre cotton research farm in Maharashtra, where Varaha works directly with farmers to test sustainable practices, including soil application of biochar, under real-world conditions. With up to 18 total reactors funded across India's cotton belt through Microsoft's commitment, the focus remains clear: scaling quickly while putting farmers first.
Setting New Standards for Asian Carbon Markets
The agreement signals growing recognition of the region's potential for high-quality carbon removal projects. Biochar offers permanent carbon storage on geological timescales while supporting agricultural systems, making it one of the most promising pathways for durable carbon dioxide removal.
"This offtake agreement broadens the diversity of Microsoft's carbon removal portfolio with Varaha's biochar project design that is both scalable and durable. It represents a step forward in scaling biochar CDR growth in Asia and advancing co-benefits for farmers—improved soils, cleaner air, and shared economic opportunity," said Phil Goodman, program director, CDR at Microsoft.
The credits generated through the Varaha program meet rigorous standards for measurement, reporting, and verification, ensuring that each tonne represents genuine, permanent carbon removal.
About Varaha
Varaha is a leading developer of carbon dioxide removal (CDR) projects in Asia, with a mission of scaling smallholder farmer-led climate solutions to remove carbon from the atmosphere and strengthen rural livelihoods. Specializing in regenerative agriculture, agroforestry, biochar, and enhanced rock weathering projects across South Asia, Varaha has pioneered a technology- and science-driven approach to carbon project development since its founding in 2022. Varaha is headquartered in Gurugram, India, and operates 20 carbon projects across India, Nepal, and Bangladesh.
Agreement Calls for Over 100,000 tonnes of Carbon Dioxide Removal (CDR) across 3 Years
GURUGRAM, India, Jan. 15, 2026 /PRNewswire/ -- Varaha, a leading developer of carbon dioxide removal (CDR) projects with smallholder farmers across Asia, today announced a major offtake agreement with Microsoft for biochar carbon removal in India.
Varaha will develop 18 industrial gasification reactors that will operate for 15 years, with a total projected removal volume exceeding 2 million tonnes of CO₂ over the project's lifetime.
The project sources cotton stalks from smallholder farms in Maharashtra, India for use as the feedstock for biochar production. After harvest, these stalks are treated as waste biomass, and open-field burning is a common practice across the region's cotton belt. This project provides an alternative use for the stalks, converting them into biochar through Varaha's biomass gasification facilities and sequestering biogenic carbon for centuries.
Delivering Local Impact
Varaha's biochar project also delivers measurable benefits for farmers and communities:
- Improvement in Air Quality: The project mitigates the widespread burning of cotton crop residue, significantly reducing PM 2.5 pollutants that contribute to poor air quality. By providing an economically viable alternative to field burning, the initiative tackles a major source of seasonal air pollution.
- Promotion of Regenerative Agriculture: Farmers participating in the program adopt regenerative practices like crop residue mulching and biochar application to soils, improving soil health, water retention, and long-term agricultural productivity.
- Lifting Farmer Livelihoods: The program directly enhances the livelihoods of thousands of smallholder farmers, who receive payment both for contributing agricultural biomass and for implementing crop residue incorporation practices.
"This agreement demonstrates that high-integrity carbon removal can drive transformative co-benefits for communities and ecosystems," said Madhur Jain, Varaha CEO. "We're not just removing carbon—we're creating economic incentives for farmers to mitigate open burning of crop residues."
The project's first reactor will operate alongside Varaha's 52-acre cotton research farm in Maharashtra, where Varaha works directly with farmers to test sustainable practices, including soil application of biochar, under real-world conditions. With up to 18 total reactors funded across India's cotton belt through Microsoft's commitment, the focus remains clear: scaling quickly while putting farmers first.
Setting New Standards for Asian Carbon Markets
The agreement signals growing recognition of the region's potential for high-quality carbon removal projects. Biochar offers permanent carbon storage on geological timescales while supporting agricultural systems, making it one of the most promising pathways for durable carbon dioxide removal.
"This offtake agreement broadens the diversity of Microsoft's carbon removal portfolio with Varaha's biochar project design that is both scalable and durable. It represents a step forward in scaling biochar CDR growth in Asia and advancing co-benefits for farmers—improved soils, cleaner air, and shared economic opportunity," said Phil Goodman, program director, CDR at Microsoft.
The credits generated through the Varaha program meet rigorous standards for measurement, reporting, and verification, ensuring that each tonne represents genuine, permanent carbon removal.
About Varaha
Varaha is a leading developer of carbon dioxide removal (CDR) projects in Asia, with a mission of scaling smallholder farmer-led climate solutions to remove carbon from the atmosphere and strengthen rural livelihoods. Specializing in regenerative agriculture, agroforestry, biochar, and enhanced rock weathering projects across South Asia, Varaha has pioneered a technology- and science-driven approach to carbon project development since its founding in 2022. Varaha is headquartered in Gurugram, India, and operates 20 carbon projects across India, Nepal, and Bangladesh.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
Varaha Signs Carbon Removal Agreement with Microsoft
