Investors, good afternoon. Welcome to the AAC Technologies 2024 Annual Results Announcement Conference. I'm Joyce Wong, IR Director and Host of the meeting. On behalf of the company, I would like to thank you for your attendance in AAC. Please allow me to introduce the management: Mr. Benjamin Pan, Executive Director and Chief Executive Officer of AAC Technologies; Mr. Kevin Pan, Executive Vice President of AAC Technologies; Ms. Dan Guo, Chief Financial Officer of AAC Technologies; Mr. Jack Lang, CEO of AAC Optics; Mr. Shi Junsan, Vice President of Strategy of AAC Technologies.
Thanks, management, for attendance. Today's meeting includes two parts, starting with my presentation on AAC's 2024 financial performance and business development. This will be followed by a Q&A session. You are welcome to ask your questions by pressing the raise hand button or message in the Tencent Meeting chat room.
You may remain the hand-raising series to remind the host. Please introduce your organization and a name before questions. We also have a simultaneous interpretation channel today. Please click the interpretation button if you need. Thank you.
[Foreign language] the results.
In 2024, the group's revenue hit record highs since listing, increased 33.8% year-on-year to RMB 27.3 billion, driven by its strong performance in optics, precision mechanics, and acoustics sectors. Additionally, the automotive acoustics also contributed RMB 3.52 billion, further expanding the business scope and revenue streams. Gross margin was 22.1%, 5.2 percentage points increase. The notable GP margin growth is mainly attributed to the group's internal and external development, strengthening of the lean management, operational efficiency, and technology innovation.
Net profits increased up by 142.7% year-on-year to RMB 1.8 billion, highlighting the remarkable improvement in profitability. Through the dedication to smartphone market and premiumization, our revenue and profitability saw remarkable growth. According to IDC Statistics, global smartphone shipments in 2024 increased by 6.4% year-on-year, reaching 1.24 billion units. Consumer electronics revenue growth outpaced global smartphone shipment growth by threefold to RMB 24 billion.
Auto's revenue reached RMB 3.52 billion, increased by more than 600%, and improved significantly by 3 percentage points. This is for the gross margin, rising by 5.2 percentage points.
[Foreign language]
In 2024, the group continued to improve operational efficiency. The operating cash inflow amounted to RMB 5.2 billion, up by 12.3% year-on-year. Free cash flow was RMB 2.95 billion, boosting the liquidity for post-Premium Sound Solutions acquisition. CapEx was totaled RMB 2.33 billion. Net gearing ratio still at 3.8%, with cash on book of RMB 7.54 billion. The average return over days improved to 59 days, representing a reduction of 21 days from 80 days as of 31 December 2023. Next up is about the business segment's performance. Acoustics, for the second half of 2024, the group's acoustic revenue was RMB 4.75 billion, up 13.8%, and the gross profit margin was 30.4%.
For the full year, the revenue is RMB 8.21 billion, rising by 9.5%. This is also because of the rebound market, the downstream. Also, the gross profit margin is 13.2%, 1.8 percentage points year-on-year increase.
Acoustics' product mix optimization achieved great success in 2024. The master-level SLS speakers have shipped nearly 30 million units, representing a year-on-year increase of over 120%. The group's automotive acoustics business, its revenue is RMB 3.52 billion, and the GP margin was 24.8%, reflecting a substantial synergy between the group and the PSS. The group and the PSS products have been supplied to flagship models of leading UB brands, including Xiaomi, Geely, Li Auto, and Xpeng. Optics, the optics business revenue in the second half of 2024 was RMB 2.79 billion, up 50.2% year-on-year and 26% H on H.
The gross profit margin was 7.9%. For the 2024 full year, the revenue is RMB 5 billion, and the GP margin is 6.5%. The shipment volume of 6P and above lenses continued to rise, with the 6P lenses accounting for 18% of shipments.
The shipment volume of seven element lenses, including plastic lenses and G plus P hybrid lenses, exceeded 3.5 million units. It is expected to grow by multiple times in 2025, further strengthening the group's presence in the high-end optics market. In terms of camera modules, significant increase in both shipment volume and ASP led to a notable year-on-year revenue growth of 55.2%. Modules with over 32 megapixels accounted for 32% of the total shipment volume, up nearly 4 percentage points year-on-year. Next up is the electromagnetic drives and the precision mechanic business.
In the second half of 2024, the consolidated segment revenue was RMB 6.07 billion, and the gross profit margin was 23.4%. The revenue for the full year for 2024 was RMB 9.71 billion. The GP margin was 23.3%, up by 3.2 percentage points year-on-year. The shipments of the XS linear motor increased by 15.5%.
The revenue from the Android motor model products grew by 36.6%. The Industries Logics and Siemens motor with highest energy density began mass production and shipping. Speaking of PM, smartphone metal casing revenue grew by nearly 24% year-on-year. It was exclusively supplied with new foam casing for a major customer's portable phone, setting an industry benchmark. Laptop enclosures revenue was RMB 1.35 billion, an increase of 53.3% year-on-year.
Pixel Fusion's revenue reached RMB 326 million, a significant 40% increase. This also gained recognition of the major customers. Let's have a look on sensor and semiconductor business. In the second half of 2024, revenue from the SSE amounted to RMB 384 million, down by 27.7%. The gross profit margin was 14.9%.
The business generated a revenue of RMB 773 million in 2024, a discount of 24.6%, mainly due to the product strategy adjustments and the transition cycle between old and new products, with emphasis on promoting high-performance products in the future. The GP margin was 15.6%. In the future, the focus will be on the higher-end microphones. After sharing the financial performance, let's focus on the business highlights and strategic development.
The group deepened its presence in the smartphone market and led upgrades of mid to high-end products, which accelerated the evolution of AI optical upgrades, experience innovation, and the volume increase of out-of-think devices by major customers.
AAC is capitalizing on the trend and accelerating the upgrade of the smartphone products, including developing high-performance VC products made of stainless steel and steel copper composite materials to become the heat dissipation solution provided to top customers, and also accelerating the roll-up of 7ZDB plus high-performance and low-power compact packaging microphones. Additionally, it also includes, but not limited to, secure multiple design wings of 7P and G plus P hybrids.
Some novelties on the customer side are shown on the slide. We will continue to make efforts in multiple industries, such as smartphones, smart cars, and AI glasses. In looking ahead, we accelerate the deployment of edge AI directly on local edge devices, which has major opportunities for technological transformation. We will see this very importance of the sensory technology.
The group has developed an automotive acoustic solution, including branded audio systems, a full-set of speakers, amplifier microphone A2B modules, and enhancing acoustic algorithms. In 2024, we supplied a full-set speaker system for the first virtual model of a Beijing-based Android client. We accelerated mass production on AAC's own production lines and self-developed amplifier products, enabling a well-known domestic automaker in creating boundary sounds. The first automotive grade A2B microphone modules have been shipped to a high-end domestic NDV brand.
NLP Pro algorithm enhanced the acoustic experience and bass performance, enhanced by 200%, and secured design wins for the first time for a flagship series of top-tier automotive brands. For the next two years, the focus will be on the humanoid robot market. As a leader in sensory experience solution provider, the group has extensive expertise in speakers, microphones, heat dissipation, and the camera modules.
The group is also actively expanding into the robot actuator market, including dexter hands, and also built vertically integrated capabilities. The group has built the core capability in the XR field, and the relevant key projects have been implemented. We also have the development on the AAC AI glassless steel wheel solution, and it is also dual diagram active triple directional audio solutions. We also made the optical wave guide mass production and AI camera, and a large field of view AR module and other design customer projects will be mass produced within the year.
At the same time, the group also has system-level design capability and has successfully delivered to major domestic customers through vertical integration solutions. The above is my introduction of the annual results. Now we can start Q&A. If you need to ask your questions, please press the raise hand button.
Please introduce yourself and the organization before questions. Thank you. Let's take the first question[Foreign language] CLSA [Foreign language] Tony Zhang [Foreign language]. This one is from CLSA, Tony Zhang. Thank you. I'm Tony Zhang from CLSA, and thank you, management, for your time, and congratulations on your brilliant results. My first question. Traditionally speaking, our focus was on the modules, and you also talked about the delivery capability in the system level.
It means our focus will transform from the modules to the system-level solutions. I'd like to take the question. You have seen the strong trends of AI, as well as the demand. Based on the modules delivery in the AI and also the upgrade of our modules, our focus will also on this regard. You see this kind of upgrade in both the microphone and the speakers. We focus on the familiarization.
This is a very important trend and will become our focus. You will also see in 2024, the shipment volume exceeded over a million. In what form do we enter? We still think module is still the core of this industry, and this is also our strength, the competitive edge. We also heard that some clients need the system integration, and AAC is willing to deploy and plan in this regard. We will still focus on the modules and with the targets of diversified development. Thank you, Tony. Thank you, Tony. Thank you for the answer from the management. The next one is from Cherry Matt.
It's from Macquarie. I have two questions. The first question is about the guideline of the revenue of 2025. As mentioned earlier, that will be about 10% to 15. The guidance is not changed.
What is the breakdown of this growth guidance? My second question is about the OPEX ratio and the CapEx guidance. Do you have any breakdown of this CapEx and the R&D? [Foreign language] If we see the full year, we still uphold a very steady growth with a double digit. [Foreign language]. Progress. [Foreign language] We are very confident in every segment's growth. [Foreign language] For the precision mechanics, that is, the highest growth segment, the EM and PM, for example, the EM, you can see there is a high. [Foreign language]. Double digit growth.
You will also see that the PM sector, it is about 18% to 20 growth. It is even higher. The PM is also maintaining a very high GP margin growth. It is still double digit.
Optics, in the first half of this year, and we are saying this will be a high double digit growth in terms of the lens. In the second half of last year, it is about 25%. We are also very confident in the modules. In 2025, compared with 2024, the microphone segments will also have 30% to 35 growth. The GP margin is also about the high double digits in terms of the acoustics, compared with other segments. The growth rate will maintain at a steady growth of medium and low single digits. The GP margin is still about 30%. The top line will be about high double digits. The GP margin will have a growth based on this 22% this year's growth.
With regard to your OpEx ratio, this year is very steady, the ratio is very steady in terms of the CapEx.
We have a very stringent CapEx policy. Of course, we still have some optimization potential and leveraging the existing resources, for example, some production line, and to do the optimization. In 2024 and 2025, CapEx will be remained at about RMB 2.1 to 2.3 billion. [Foreign language] Thank you. Next question is from Everbright. [Foreign language] Thank you, moderators, and thank you, management. [Foreign language] First, I would like to congratulate on this remarkable program and your results.
This is really an exciting result. Last year, part of the revenue was from the optics. What's the expectation of the optics in 2025? Any upload of the optic segment? Second question. You talked about the robots. I guess some investors are not familiar with the robotic segments in AAC. Any visibility of the orders and what's the progress of this robots business, and what's the outlook?
I'd like to talk about the optics first, and perhaps you will make any supplement afterwards. In the fourth quarter last year, in the Q4 last year, the performance was in line with our expectation. Especially in terms of lenses. Last year, I remember the GP margin could reach 25%. This year, we can see this is over 25%. This is a very positive improvement. In 2025, I would think this kind of profit, and also the GP margin, can be further improved to about 30%. It's very possible.
That's the heritage of AAC. We entered a segment and a business, and we will leverage our lane management and technology experience to explore the new growth drives. Yeah, we will also become the leading company in both the technology and the revenue in the industry.
positive. And speaking of the modules, the GP margin is also positive. From the operating profit and other aspects, it has already reached a very positive level. This performance was very positive. Yes, and the modules have already realized positive profits, and this year will be further improved based on this positive progress. What about robotics? Yes, actually, in the overall consumer electronics field, we have already seen AI. In the overall consumer electronics, we see this mega trend of AI. Some of the customer types we understand may mainly be divided into two types. One is the robot.
The types, the first one is humanoid robots. Customers are already in. You know that the T client from the US is developing these humanoid robots with high confidentiality, targeting these humanoid robots. Based on our collaboration with PSS and T clients, we can also penetrate our products in those robotics. One of the key products is the motor. The motor is a very critical part. We are still upholding a very open attitude.
tens of thousands of units of this kind, there will be further development on the humanoid robotics, and we can quickly enter this segment. We are still in the preparation or the high proactive preparation stage with this high confidentiality. Another type of robot is a kind of table or like the mini mature robot products or some like the companion robots. They also need the high performance and the same motors. We have already secured some cooperation with some overseas companies. It depends on different scenarios, for example, the family scenario and office scenarios, to optimize the function of these robots.
I think this timing should be in the second half of 2026 to 2027. From the current observation, we think the timeframe will be in the second half of 2026 or 2027. There will be new products launching in the market, or it is the so-called AI terminal device.
It is very worth investing in the industry. Thank you, thank you very much. The next one is from Guosheng with Tai. [Foreign language] I'd like to ask two questions.
The first question is about the double LG because this is also multi-platform. The applications in different scenarios. [Foreign language] I'd like to know the key yield rate of the WLG. [Foreign language] And also the shipment volume outlook. [Foreign language] My second question. [Foreign language] You know there are different scenarios and we also have our glasses. [Foreign language] And also the automotive scenarios and what's the outlook of the volume in the near future [Foreign language] Jack, perhaps you answer the WLG and automotive and [Foreign language] The robots maybe Kevin answer this part.
Okay, thank you for your question. WLG field. [Foreign language] Last year. [Foreign language] And also the year before last year. [Foreign language] We made upgrades. [Foreign language] On our [Foreign language] And equipment mode and the yield is increased. [Foreign language] By about six to seven times. [Foreign language] So this is from the mode improvement and we are very confident. [Foreign language] On the yield rate. [Foreign language] And this yield rate will outperform other competitors. [Foreign language] Another part is the preference. [Foreign language] And the right two parts. [Foreign language] And the previous part. [Foreign language] This yield rate is very high.
[Foreign language] And in the processing part. [Foreign language] And the yield rate is also good. [Foreign language] Of course it still has room to improve. [Foreign language] And the yield rate. [Foreign language] Is significantly enhanced. [Foreign language] Of course in the new equipment, in the new mode equipment and also the tools we still have the room for improvement. [Foreign language] In addition. [Foreign language] And the main camera on the smartphone the progress is also smooth and we obtained the recognition and the progress on the major and enjoying customers and mass production is [Foreign language]
And also meet this volume we released in our previous report. [Foreign language] In terms of the priest. [Foreign language] Christmas and we used this very New Christmas. This is a three in one. [Foreign language] Christmas [Foreign language] And this we are the first one in the industry. [Foreign language] And the mass production. [Foreign language] Will be commenced soon and the product will be launched in the market soon. [Foreign language] And the customer experience will be upgraded. [Foreign language] And this kind of a trend is very affirmative and the next year. And this year we think it will be ramping up. [Foreign language] WLG
I will add a little here. [Foreign language] Maybe there will be some questions. [Foreign language] About the WLG many people are concerned the WLG we also make great efforts on WLG for many years the first one the G plus P. [Foreign language] And we have accumulated to another million. [Foreign language] The number is correct right Ms.
Guo. [Foreign language] . And for this year. [Foreign language] . And this can also reach over ten million this is about the 7P and also the. [Foreign language] . And also G plus P. [Foreign language] . And this mass volume has already been arranged. [Foreign language] . Also this are applied in the flagship models of Android customers. [Foreign language] . For over G plus P in the prescope and also the Christmas. [Foreign language] . The first project. [Foreign language] . Will be put into mass production soon and the plan will be confirmed in the next few months. [Foreign language] . Several major customers. [Foreign language] . They will also use. [Foreign language] .
WLG. [Foreign language] . In the Christmas and also prescope projects. [Foreign language]. And this will be launched in the second half of the year. [Foreign language] WLG. And the skill can reach about double years. [Foreign language] . Apart from G plus P WLG can also be applied in the Christmas and prescope or promotes its application in the customers' scenarios. [Foreign language] . To gain its momentum and value in the market and we have already seen this promising results. Kevin perhaps you can talk about the automotive and the robots. [Foreign language] .
Speaking of robots we talk about the table robots and by 2026 and 2027 there will be over several million demand. And this kind of the number is not very clear but the trend is very clear the microphone and the motors and the speakers. [Foreign language] . The value will be about. [Foreign language] . A few tens of dollars US dollars of course it depends on the. [Foreign language] . Utility volume. [Foreign language] . And in terms of the humanoid robots most of them are still in the testing. [Foreign language] . And waiting. [Foreign language] . And of course we have to see its development and it's a little difficult for us to make any forecast in the next five to ten years about its specification and pricing and volume. [Foreign language] .
In terms of AI. [Foreign language] . And we also have our expertise in AI for example AI glasses and this is also a trend in the future. [Foreign language] . And also AI and has the demand AI glasses has the demand in the noise cancellation or higher requirement and we are making preparation based on the demand of our customers. [Foreign language] . And Meta. [Foreign language] . Propose their plan. [Foreign language] . And on the growth of over ten million or several ten million volume. [Foreign language] . And what kind of model they will use we still need to analyze and observe of course apart from Meta. [Foreign language] .
Some traditional glass manufacturers or the gaming industries will also share the market with those company AI companies. [Foreign language]. What about automotive. [Foreign language] . The breakthroughs we made in the automotive. [Foreign language] . Other technologies. [Foreign language] . We accumulated in the consumer electronics and we have the strength in the acoustics and also automotive motor and the heat insulation. [Foreign language] . Speaking of the acoustics we we've made a very good progress and you can see this results in our financial report. [Foreign language] . Together with the PSS the speakers. [Foreign language] .
Has already made a breakthrough of over CNY 4 billion in the revenues. [Foreign language] . And also in the speaker and amplifier and in the microphone modules we will have more investment. [Foreign language] . And in both the software and the hardware. [Foreign language] . The acoustic automotive acoustics. [Foreign language] . The future and the next two to three years its revenue will be similar to the revenue of our consumer electronics. [Foreign language] . And it includes both the hardware and the software also the algorithm and the vertical products. [Foreign language] . In automotive acoustics we will continue. [Foreign language] . To invest. [Foreign language] . Hoping to outperform and exceed the revenue of our consumer electronics. [Foreign language] .
And the auto automotive motor and the automotive heat insulation will be the next stage plan. [Foreign language] . Will become the supplement of our servers and in the automotive system and this will become the new drive for the automotive business. Thank you thank you management I have a follow-up question you talked about with the next serious hands and also our self-developed technology and what's the development what's the outlook the first step is still on the performance therefore at the beginning of the R&D we will also leverage the external partners to build our capabilities. [Foreign language] .
That with higher volume and higher requirements like Tesla we still need the further plan in the production or the long-term strategy. [Foreign language] . In terms of the humanoid robotics and it is still in the preliminary stage and we are still observing its development thank you management and I hope the group to reach a higher performance. And next question is from Frank from HSBC good afternoon congratulations on your good results my first question is about the electromagnetic drives and the precision mechanics and there are new growth including the heat insulation and also the motors so what's the outlook of those segments and what's the profitability and the second question mentioned by Ms.
Guo is about demands, it's about 30% to 50 growth this year, so like to know more about the orders, whether you have already secured very strong orders or the recovery in the consumer electronics. I will answer the question. [Foreign language] And there are two parts, and the first part. [Foreign language] Is about motors. [Foreign language] And also some side components are released by Apple. [Foreign language] iPhones [Foreign language] Xoma. From the X-axis motors and the side components and optical transmission mechanics, we obtained a double-digit growth.
This is for the first part, and the second part is related to the high-end VC heat insulation, and we have a very clear pathway for the [Foreign language] They also contribute a lot to our gross profit margin this year. [Foreign language] Because for the high-end products, [Foreign language] The requirement, the structures, and also the [Foreign language] Strength. [Foreign language] Also a very high. [Foreign language] We forge a deep cooperation with the top customers, and in the next two to three years, we think the profits contribution will become larger from the segments.
[Foreign language] Compared with the traditional VC heat insulation, [Foreign language] New segments will contribute an over double-digit revenue, double-digit growth. [Foreign language] Thank you, thank you, the answer from the management. Next question is from the CICC Ms.
Wang Tanji please go ahead. [Foreign language] Can you hear me yes thank you moderator. [Foreign language] And if we [Foreign language] Take a review [Foreign language] On the history of the company we see that AAC has a very strong capability in the precision processing and also the fundamental research capability [Foreign language]; In terms of the. Assembly [Foreign language] And what's the outlook and you also talked about the robotics and other automotive new growth so what's your views on on this new development and the new business drives [Foreign language] have already make breakthroughs in the consumer electronics and we for example in the past.
And we see the metal casing and we are at present we are doing the hinge and also heat dissipation products and in the future we will also extend the business to the laptop closure so we have this we have been equipped with this capability in the consumer electronics no matter it's the upgrade from AI or the modality of the products and we have the capability to catch up and also to have a very quick layout in this industry and in the future [F oreign language] And we will have some developments in the sensors and the percentage of sensors in our business is still low with development of AI we will quickly enter the sensors business and also the vibrate sensors it wil l
become the areas that we will quickly cut into in the future. [Foreign language] Definitely based on our expansion and in the sensors and this capability will also cover a new markets [Foreign language] the automotive markets because channels and distributions have already been established as long as we explore the delivery capability and the product research and development and we can extend the business to this area. [Foreign language] And the robotic customers have different scenarios and also the automotive customers they also have different scenarios and this kind of business expansion is very natural and organic.
[Foreign language] No matter it is in the acoustics electromagnetics or the precision mechanics and our optics and we will have the business expansion with the sensors and of course it may be one or two years of the lead time next question is from. [Foreign language] Thank you I have two questions the first question. [Foreign language] ADA. [Foreign language] It's about the [Foreign language] On ADA [Foreign language] What's your strength on your business expansion on ADA SSE [Foreign language] Second question is about SSE business you talk about the Sensors and the semiconductors [Foreign language].
We also [Foreign language] See this double digit growth so what's the transition period [Foreign language] In the second half of last year [Foreign language] There was a very good growth or in the future there will be very good potential of the growth [Foreign language]. And what's the GP margin change and you also talk about the self-developed chips and what's the outlook of the self-developed chips。 I'd like to take the question the first part is about SSE in [Foreign language]. And last year's report, And we are actively developing the high-end microphone products. [Foreign language] There are some delays from our partners so the mass production was delayed.
[Foreign language] From the second half of last year to the first half of this year and this unit price. [Foreign language] And it's doubled [Foreign language] Compared with the traditional microphone [Foreign language] So the value is very high [Foreign language] And our production [Foreign language] Ramping up [Foreign language] Is continuous [Foreign language] Every half year we will have about 100 million production capacity. [Foreign language] Of this high-end microphone and this is also based on the demand of the customer so that's the reason we are confident that the SSE segment will reach the double digits growth.
We also talk about the WLG in the automotive segments and also the autonomous driving and WLG has the strength in the autonomous driving in terms of its production stability and the performance stability in the ADA. [Foreign language] This front cameras [Foreign language ] We see this stability as the strength of the WLG [Foreign language] And our this is a this is precision [Foreign language] Our automation level is also high that's one of the reasons we can collaborate with our US clients [Foreign language] Of course we have our strengths [Foreign language] In the cost effectiveness.
[Foreign language] Of course there are different parameters in the different products in ADA, [Foreign language] Is a kind of a non preference. Or this is a this kind of aspherical lenses will be used more so this kind of requirement for accuracy will be very high. Thank you next question is from Andy from Morgan Stanley I only have one question the question is about automotive acoustics I want to know the main competitors in this area and what's the market share in 2024 and the management also talk about the future improvement potential. [Foreign language] The potential is from the existent value or existent volume or we can obtain the market share from other competitors thank you for the question PSS [Foreign language] Together with the PSS [Foreign language] PSS product.
The market share is about 15%. [Foreign language] Including our competitors [Foreign language] Includes Foster and also SK and some domestic competitors. [Foreign language] The competition is mainly on our high-end speakers. [Foreign language] Speaking of the growth we think there are two parts the first part is about the innovation in the form of the product performance. [Foreign language] Secondly is about the service. [Foreign language] We can extend our business and also the delivery to the Korean and the Japanese customers and to reach 30% of the market share this is about the speakers on the automotive segment.
[Foreign language] In terms of the product forms. [Foreign language] Apart from the automotive speakers we also have the. [Foreign language] Modules the microphone modules [Foreign language] 3% Penetration at present. [Foreign language] Is below 3%. [Foreign language] In China you can also see many [Foreign language] New [Foreign language] This kind of module is increased sharply and I would say this is a very good incremental market and some leading microphone provider and also the solution provider in the automotive acoustics and a microphone and so we will seize this opportunity for the future faster growth.
[Foreign language] Last but not least. Like to emphasize. [Foreign language] The software from the hardware of the automotive. [Foreign language] Also include. [Foreign language] Including the algorithm. [Foreign language] And the system capability. [Foreign language] We will secure some customers and big customers or the design green from. New customers. [Foreign language] Including our microphones. [Foreign language] And hardware and the speakers and amplifiers so this is our strategy and we want to make use on the branded acoustic system. [Foreign language] This will become a very good milestone for AAC development in the acoustics industry. [Foreign language]
Next question is from Hua Tai Securities Mr.
side, some of the progress, we also want to follow up. You talk about the progress of the automotive acoustics. Customers include the Beijing-based Android client. Also obtained many new clients. I want to follow up. It secured the new clients in some North American market, so I'd like to ask a follow-up question. That can be divided into two aspects. The outlook. The outlook of the automotive acoustics. They like to. I hope next year. This year is about CNY 3.5 billion in the automotive and next year we want to achieve double-digit growth including both the profits. We hope to see within two years our automotive acoustics revenue and scale.
And the revenue. Again I'd like to. Emphasize the target and we want to. Achieve the similar revenue. The outlook is that we. Similar to the revenue of the electrical consumer electronics or even higher revenue and outperform the consumer electrical consumer electronics revenue. The final preparation before mass production. What about optics. We are. Automotive optics. At the same time, apart from the domestic customers, we also have customers in the US. We are in the final stage after mass production.
Our goal is to run one production line in Q3. This year we will have one project of the mass production and in Q3 we want to add another production and in Q4 one more production line. Thank you. Next question is from China Merchants. Let's wait a moment to invite. Can you hear me? Yes. Good afternoon, I'm from China Merchants Electronics. I'd like to know the XR plan. The plan is relatively complete, many core components can be manufactured. On the AR product and with some overseas customers. Some AI collaboration will be forged, so what's the collaboration with the overseas customers and what's the.
Ever talked about this. Already working with some domestic customers. Many AI modules. Can highlight our capabilities and we have the comprehensive collaboration. For example, there are MXR or MR display modules. Those kind of modules in XR. Has high value of several hundred R&D. The second part is about the interactive capability, the voice interactive, for example, there are two speakers on your left hand or on your right hand. In the future there will be some noise cancellation. Functions. Plus the vibration microphones. We can provide different modules.
The functions we can provide and also the volumes together with its value in the XR areas are very diversified. In terms of AI glass and AR. We have our own plans. For our US customers, there are about over five or six models and different designs are needed. It's hard to say which aspect or which design will become the mainstream. Different customers. Their plans and ideas on the XR will be different. Their traditional glass manufacturers and their XR plan of AI glasses are different. As far as we know, companies like Google, which do Android ecosystem, are working on hardware development.
Hardware development will use this hardware as like Google . And s ome Android customers working with some overseas hardware manufacturers and we are helping them to iterate on the optic solutions. It depends on the AI glasses manufacturers and the companies to decide. This style and also the product. The specific definition of the product, it's still in the process and we have to wait for those companies to decide. Thank you. Let's welcome the last question from Hai Tong Securities. I want to follow up on two details. The first is about WLG. Recently, we pursue the single smartphones and also the single main cameras and also there are molding glass.
Functions. This is also a new trend. Another trend is about the variable aperture on the smartphones, so this will also use the WLG. Thank you. What's the opportunity in the market. From the main camera on the smartphone. For example, on most high-end smartphones will focus on inch. Another part, and it's about dark color. The progress of the lenses becomes a very important driver. Years ago, we insisted on the investment of WLG. And also the plastic lenses development and its size because in this adopt scenario it's a function and the technology has already reached the path.
To increase these aperture and to improve the capture and equipped with other performance is very important. Of course, this year we will secure on over 10 million volume this year. Most of them will be introduced in the flagship models. This year we have the confidence and this will be penetrated to other models and the WLG's use rate is significantly improved. This is a very good sign for our progress and it will be over 70% to 80. Its accuracy and optical performance must be greatly improved. In some hybrid lenses, some competitors only use the AA technologies, but for us, we just use our own technology, can reach the requirement.
The performance will largely surpass the. More. Thank you management for the time and space. Due to the constraints of time. Let's conclude the Q&A session and we would like to invite Mr.
Benjamin Pan Executive Director and Chief Executive Officer of AAC Technologies to make a summary. [Foreign language] Thank you and thank you investors for your long-term support and attention. [Foreign language] Seven together with our team we make our concerted efforts. [Foreign language] The biggest change is all the segments are making improvements in both the revenue and the GP margin. [Foreign language] In terms of the business growth. [Foreign language] We extend and expand our business on in the traditional spend. [Foreign language] To gain more customers and secondly together with PSS.
[Foreign language] We also unleash our potential. [Foreign language] In this product end and the customer end. [Foreign language] First of all I'd like to talk about the optics as mentioned before WLG. [Foreign language] It's a very important. [Foreign language] Product and technology. [Foreign language] In the second half of last year the GP margin has already reached 25% and this year and this GP margin can be about 30% with the recovery of the market and upgrade of the technology and we developed our 6P and 7P the GP margin will be further improved and with the management and technology progress and our lens GP margin will be further improved in the near future.
[Foreign language] I think by 2030 or in about 2028 and 2029 there will be two important turning points for the WLG the first one is about the yield and we can also use the other micro lenses. [Foreign language] To on assembly on this traditional modules. [Foreign language] This is the first one it's about the technology and secondly. 29 [Foreign language] It's about the Christmas application of WLG and we will see the volume scale up in 2028 and in 2029. [Foreign language] In addition the VC and the HDF patient. [Foreign language] VC3. For the new drivers. 29 [Foreign language] Also open a new landscape of our business.
[Foreign language] With the technology development will become the key partners for our major customers or the top customers and this will become a very promising and a potential growth point for us in the future. [Foreign language] 20. In addition. [Foreign language] Our GP margin. [Foreign language] Will reach about 30%. [Foreign language] In the future there is still a potential for its growth. [Foreign language] In terms of the application. [Foreign language] With the department in its application we think the single digits growth will be secured.
[Foreign language] We have already achieved RMB 8.2 and RMB 8.3 billion and after several years we can achieve about RMB 10 billion or even higher and fourthly it's about the electromagnetic drives. [Foreign language] In both optics and VCs. [Foreign language] Other areas for example robotics and table robots and humanoid robots that will bring us value at the growth and fourthly it's about the automotive. [Foreign language] Max Microphone [Foreign language] The Max Microphone modules together with other technologies.
[Foreign language] We also further improve our market share. [Foreign language] After the acquisition. 35 [Foreign language] We can reach about RMB 3.5 billion sales. [Foreign language] With this year's transformation including the 2024. [Foreign language] Big improvements. [Foreign language] AAC. [Foreign language] Has made the breakthroughs from the single production line to the diversified development. [Foreign language] Growing in. [Foreign language] Capitalizing on the trends. [Foreign language] Generating more returns to our shareholders. Thank you. Thank you the summary of Mr.
Pan. Due to the time constraints AAC Technologies 2024 annual results announcement has to be concluded. Our results workflow material will be uploaded to the company official website. Thank you very much for your attention to AAC Technologies.