New Stock Outlook | Dual-wheel advance, profit consolidation AUDIOWELL seizes the opportunity in AI and embodied smart trends

In the current era of interconnection of all things and accelerated penetration of artificial intelligence into the physical world, intelligent sensors and actuators, as the core hubs connecting the "perception layer" and "execution layer" of the digital world and the physical world, are entering a period of deterministic industrial dividends. Against this background, AUDIOWELL (920491.BJ), known as the "first sensor stock" in the Northern Exchange, submitted its application for listing on the main board of the Hong Kong Stock Exchange again on June 11, with CMSC International as the exclusive sponsor. This move to pursue the "Northern + H" dual capital platform is not only a key move for the company to open up international financing channels and accelerate global production capacity layout, but also sends a strong signal to the capital market that it is relying on the IDM model to build underlying technological barriers and make a comprehensive leap towards the AI and embodied intelligence track. It is believed that AUDIOWELL already has a solid foundation to upgrade from a leading player in a segmented field to a platform-type enterprise. With over twenty years of industry experience, the company has successfully built a high competitive barrier based on the IDM model covering sensitive materials, transducer chips, algorithms and precision manufacturing. Currently, the company is not only the third largest supplier of automotive ultrasonic sensors and actuators globally, but also firmly occupies the top tier of the Chinese smart home sensor market, with its product matrix deeply covering 46 countries and regions worldwide. Profit consolidation behind the growth transition The prospectus shows that AUDIOWELL has achieved consecutive annual revenue growth for three years, but a deeper analysis of its financial performance, characteristics of growth convergence, and cost rigidity have become focal points of investor concern. In terms of revenue scale, the company's annual revenue increased from 4.67 billion yuan in 2023 to 6.17 billion yuan in 2024, and further climbed to 6.83 billion yuan in 2025, maintaining positive growth in absolute terms. However, it is important to cautiously observe the marginal changes in growth momentum: the year-on-year revenue growth rate in 2024 was as high as 32.1%, demonstrating strong business momentum; while the year-on-year growth rate in 2025 sharply dropped to about 10.7%, indicating a significant convergence in revenue growth speed. It is alarming that despite a 10.7% increase in revenue, the gross profit only rose from 215 million yuan to 238 million yuan, an increase of about 10.7%. The absolute increase in gross profit is basically in line with the absolute increase in revenue, indicating that the company's direct profitability has not gained additional leverage from scale expansion. Furthermore, the net profit for the year increased from 77 million yuan in 2023 to 94 million yuan in 2024, achieving a high year-on-year growth of about 22.0%. However, in 2025, the net profit was only 94 million yuan, almost zero growth compared to 2024 (actual growth of less than 0.1%). This stagnation in profits, deviating significantly from the 10.7% revenue growth, constitutes a typical financial picture of "increase in revenue but not in profit". The mechanism behind this deviation can be accurately identified from the perspective of operating expenses: research and development expenses increased from 44 million yuan to 55 million yuan, although the proportion of research and development expenses in revenue moderately decreased from 9.4% to 8.0%, the continuous increase in absolute amount shows that the company has not reduced long-term investment in technological reserves due to short-term profit pressure; administrative and other expenses showed signs of structural improvement, with the proportion decreasing from 10.2% to 8.3%, indicating substantial effectiveness in controlling management expenses; at the same time, sales and distribution expenses also decreased in proportion from 4.4% to 3.6%, with the absolute amount not increasing but decreasing, which may reflect a strong product or customer stickiness for the company. However, what truly erodes profits is the drastic fluctuations in other income and gains and losses. This category dropped from 29 million yuan (accounting for 4.8% of revenue) in 2024 to 8.31 million yuan (accounting for 1.2% of revenue) in 2025, a decrease of about 21 million yuan. This category usually includes non-recurring and non-core items such as government subsidies, exchange gains and losses, and fair value changes. The significant reduction in this category directly offset the positive contribution of the increase in gross profit, becoming the primary financial explanation for the stagnation of profits in 2025. In other words, if not for the dramatic retraction of this category, the company's net profit for the year should have maintained positive growth. In conclusion, AUDIOWELL has transitioned from a period of "high growth expansion" to a period of "growth convergence and profit consolidation" from 2023 to 2025. Its core business still has a strong profit capability - with a gross profit margin stable at around 34.8% and continuous expansion in gross profit scale. However, the stagnation in profits is mainly due to a significant decline in non-core income, rather than a deterioration in core operations. From over-reliance on a single point to leading alternately with dual engines, the hedging effect is gradually apparent In fact, looking at the business performance, AUDIOWELL's two core business segments are showing a healthy pattern of simultaneous expansion and alternating leadership. From an overall business structure perspective, the smart home solutions have consistently been the company's largest source of revenue from 2023 to 2025, but its leading position is not significantly ahead. The revenue from this segment increased from 2.55 billion yuan in 2023 to 3.44 billion yuan in 2024, achieving a strong growth of about 34.9%, further increasing to 3.63 billion yuan in 2025 with a growth slowing to about 5.5%. Its revenue share peaked at 55.7% in 2024, then fell to 53.2% in 2025. This "high and then low" proportion is not due to a decline in the segment itself, but rather due to the smart automotive sector achieving more vigorous growth in 2025, thereby structurally rebalancing the weight of the two major businesses.