GoerTek: Q3 2025 saw modest profit growth, higher borrowings, and a sharp drop in operating cash flow

OpenAI's move to develop edge devices is likely to boost Chinese hardware companies in Apple's supply chain, says Citi's Kyna Wong in a note. The AI company is seeking to make AI-powered "companion" devices, which could include AI glasses, a digital voice recorder and a wearable pin, with the first wave slated for late 2026 or early 2027 launch, she says. Apple suppliers such as Luxshare Precision Industry and GoerTek have already been approached by OpenAI, she notes, quoting media reports. Other hardware companies that may gain from OpenAI's device development include Cowell e Holdings, Lens Technology and AAC Technologies, which are all within Apple's supply chain, she adds. News Corp, owner of The Wall Street Journal and Dow Jones Newswires, has a content-licensing partnership with OpenAI. (megan.cheah@wsj.com)

Revenue fell 7.02% year-over-year to ¥37.55 billion, but net profit rose 15.65% to ¥1.42 billion due to improved margins and strong growth in precision components and smart hardware. The company increased R&D investment, expanded capital expenditures, and remains optimistic about AI-driven smart hardware growth.

Original document: GoerTek Inc. Class A [002241] Interim report — Aug. 22 2025

Goertek reached a preliminary agreement with Hong Kong-based Luen Fung Commercial to acquire two subsidiaries, according to a Shenzhen bourse disclosure on Wednesday.

The potential transaction will have an estimated price of HK$10.4 billion.

The Chinese acoustic component manufacturer will take over precision metal component trader Mega Precision Technology and investment holding company Channel Well Industrial.

Goertek subsidiary Goertek Optical Technology will receive additional capital from Goertek Chairman Jiang Bin, shareholder and Goertek Optical Chairman Jiang Long, and the Goertek Group, according to a Tuesday filing with the Shenzhen bourse.

Jiang Bin and Jiang Long will each contribute 100.6 million yuan to the capital injection, while Goertek Group will contribute 75.7 million yuan for a total of 277 million yuan, the Chinese acoustic components maker said.

Jiang Bin and Jiang Long's shareholding will increase to 6.6906% from 4.3647%, while that of Goertek Group will rise to 5.0360% from 3.2853%.

Following the capital increase, Goertek Optical's registered capital will rise to 1.26 billion yuan from 982 million yuan.

Shares rose nearly 1% in midday trading on Tuesday.

Goertek's attributable profit rose 24% to 468.9 milion yuan in the first quarter from 379.5 million yuan in the year-ago period, according to a Tuesday filing with the Shenzhen bourse.

Earnings per share at the Chinese acoustic components company increased 18% to 0.13 yuan from 0.11 yuan in the previous year.

Operating income declined 16% to 16.3 billion yuan from 19.3 billion yuan a year earlier.