Benefiting from the upgrade of AI smartphones, AAC TECH (02018) saw a year-on-year increase of 40.1% in the revenue of its cooling business.

In 2024, AAC TECH (02018) achieved a historical high revenue of RMB 27.33 billion, a year-on-year increase of 33.8%. The gross profit margin was 22.1%, an increase of 5.2 percentage points year-on-year. Net profit increased by 142.7% year-on-year to RMB 1.8 billion, significantly improving profitability. According to the financial report, the revenue of AAC TECH's Electromagnetic Drive and Precision Structural Parts business unit for the full year of 2024 was RMB 9.71 billion, an increase of 17.8% year-on-year. The gross profit margin was 23.3%, an increase of 3.2 percentage points year-on-year. In terms of Metal Frames, AAC TECH introduced more high-end models and foldable phones, with revenue increasing by nearly 24% year-on-year, making it the leading supplier of metal structural components for Android phones. It has developed the world's first ultra-thin metal frame in collaboration with Huawei Mate XT and is a major supplier for popular models like Honor Magic V3, Xiaomi 15, and Huawei Mate series, among others. For the Cooling Business, the full-year revenue in 2024 was RMB 326 million, a 40.1% increase year-on-year. As a leading supplier of phone cooling solutions globally, AAC TECH has gained high recognition from major clients for its VC products with advanced technology, lightweight, multi-structure, and high cooling performance. AAC TECH has become a major supplier of flagship smartphone cooling fins in China, with a market share exceeding 50%. In the Laptop Casing business, revenue reached RMB 1.35 billion, a 53.3% increase year-on-year, benefiting from the volume production of high-value projects and the recovery of PC market demand. AAC TECH management stated that with the increasing performance and AI deployment of mobile phones, the demand for phone cooling continues to rise. The group will further strengthen technological innovation, actively cooperate with mainstream clients' upgrade needs, and tap into the huge growth space in the cooling business.