SUNNY OPTICAL's revenue in the first half of the year increased by 4.2% year-on-year, and net profit surged by 52.6%, with the automotive business becoming a new growth engine | Financial Report Insights

In the first half of 2025, SUNNY OPTICAL's revenue increased by 4.2% to RMB 19.65 billion, gross profit surged by 20.0% year-on-year, and net profit skyrocketed by 52.6%, reaching RMB 1.65 billion.

Despite a year-on-year decline of 21.0% in the shipment volume of mobile camera modules, the average selling prices (ASP) of mobile lenses and mobile camera modules both increased by approximately 20.0%, thanks to enhanced participation in high-end flagship models. Revenue from the automotive business reached RMB 3.4 billion, a year-on-year increase of 18.2%.

On the 19th, SUNNY OPTICAL released its financial report for the first half of 2025:

• SUNNY OPTICAL's revenue for the first half of 2025 was RMB 19.65 billion, a year-on-year increase of 4.2%; estimated at RMB 19.61 billion.
• Net profit was RMB 1.65 billion, a year-on-year increase of 52.6%, estimated at RMB 1.42 billion.
• Gross margin was 19.8%, an increase of 2.6 percentage points year-on-year, mainly due to the rapid growth of high-margin automotive business and optimization of the product structure in the mobile business.
• Net cash flow from operating activities was RMB 2.356 billion, a year-on-year increase of 13.9%.

Business Structure Shows Clear Differentiation, Automotive Becomes New Growth Engine

From the perspective of segmented businesses, automotive-related products performed the best, with revenue of RMB 3.4 billion, a year-on-year increase of approximately 18.2%, far exceeding the overall growth rate of the group. Among them, the shipment volume of automotive-grade lenses increased by 21.7%, and revenue from automotive-grade modules grew by approximately 35.0%. The market share of 8-megapixel products ranks first globally, successfully expanding into leading European automotive manufacturers. Notably, the automotive business not only has a fast growth rate but also relatively high gross margins, becoming an important driver for overall profitability improvement.

Revenue from mobile-related products slightly increased by 1.7% to RMB 13.25 billion. Although the shipment volume of mobile lenses and modules declined by 6.4% and 21.0% year-on-year respectively, the average selling prices (ASP) of mobile lenses and mobile camera modules both increased by approximately 20.0% due to enhanced participation in high-end flagship models. High-end products such as periscope and large aperture lenses are key drivers.

XR-related products also performed well, with revenue of RMB 1.201 billion, an increase of approximately 21.1%. The company maintains an industry-leading position in the imaging module field for smart glasses and has achieved technological breakthroughs in AR optical products. With the rapid growth of the smart glasses market, this business is expected to become a new growth point.

Improved Profitability, Continued Increase in R&D Investment

The significant improvement in gross margin comes from three aspects: first, the structural improvement of mobile products, with an increased proportion of high-end products; second, the rising revenue share of high-margin businesses such as automotive; third, cost optimization brought about by economies of scale.

Optical components division gross margin is 31.0%, optoelectronic products division gross margin is 10.6% (an increase of 2.4 percentage points year-on-year), optical instruments division gross margin is 45.7% The significant increase in the gross profit margin of the optoelectronic products division is particularly noteworthy, mainly due to a revenue growth of approximately 35% in automotive modules and an improvement in the product structure of mobile camera modules.

The company's R&D expenditure was 1.634 billion yuan, a year-on-year increase of 11.3%, accounting for 8.3% of revenue. The growth in R&D investment is mainly focused on automotive, XR, general IoT, and smartphone-related businesses