AAC Technologies (瑞声科技) net profit rises nearly 40%, new growth emerges in the AI era

Results show recovery — and a strategic pivot

AAC Technologies (瑞声科技) reported a clear recovery in its annual results for the year ended December 31, 2025. Revenue rose 16.4% to RMB 31.817 billion, gross profit was up 16.1% to RMB 7.016 billion, and net profit attributable to shareholders climbed 39.8% to RMB 2.512 billion. Operating cash flow improved sharply as well, up 38.1% to RMB 7.183 billion. Short sentence. The key angle is not just the bounce-back in consumer electronics demand, but the company’s deliberate shift away from being a single-purpose smartphone supplier toward a broader precision-components and thermal-management platform.

From microphones to liquid cooling

Business mix is changing. Electromagnetic drive and precision structures became the largest revenue source at RMB 11.774 billion (up 21.3%), while optics, automotive and cooling, and sensors all grew — sensors and semiconductor revenue more than doubled to RMB 1.571 billion. Traditional acoustic components expanded only modestly. Crucially, AAC announced a controlling acquisition of Yuandi (远地（广州）数字科技有限公司, referred to as “Yuandi”), a liquid-cooling specialist focused on single-phase immersion, phase-change immersion and cold-plate solutions. It has been reported that Yuandi has already deployed projects across industry and finance data centres and completed compatibility work with several domestic GPU platforms — a fast route into AI-server cooling.

Why liquid cooling matters now

Why the scramble for liquid cooling? Because as AI models scale, data-centre power density and thermal limits have become bottlenecks. Liquid cooling promises higher efficiency and lower operational cost than traditional air-cooled racks, making it a natural adjacent market for a company with precision-manufacturing capability. There is also geopolitical context: Western export controls on high-end chips have accelerated China’s push for domestic GPU and infrastructure ecosystems, increasing demand for compatible cooling solutions. AAC’s “terminal + infrastructure” strategy — keep serving phones, cars and AI endpoints while moving into compute infrastructure — speaks directly to that shift.

Outlook: opportunity — but not without risk

AAC’s manufacturing scale and existing customer relationships give it a credible shot at entering the AI compute supply chain. But success depends on integrating Yuandi’s liquid-cooling technologies at scale, winning design-in with hyperscalers and domestic cloud players, and navigating a competitive landscape that includes specialised thermal firms and established server vendors. Reportedly, the acquisition gives AAC immediate entry points; whether it can turn that into a durable position in data-centre thermal management remains the question investors will watch.