The differentiated growth trend of connectors.

The connector industry is showing a trend of differentiated growth driven by technological iteration and market demand.

Recently, six listed companies, including Changying Precision, AVIC Optoelectronics, Ruike Da, Yonggui Electrical Appliances, Zhucheng Technology and Dingtong Technology, have disclosed their annual reports first. Their performance highlights are numerous: Changying Precision's net profit has soared by 2,750.7% year-on-year, AVIC Optoelectronics' gross profit margin of high-end products exceeds 39%, and Ruike Da's revenue from new energy business accounts for 90%...

The R&D investment of many enterprises has increased by more than 20%, focusing on cutting-edge fields such as AI and new energy vehicles. From consumer electronics to new energy vehicles, from traditional fields to emerging markets such as AI and humanoid robots, domestic connector enterprises are leveraging their core business advantages and R&D investment to outline a diverse picture of industry development.

Annual report information of six listed connector companies

Changying Precision
Net profit saw explosive growth, and the two business segments worked in tandem
In 2024, Changying Precision achieved a revenue of 16.934 billion yuan, representing a year-on-year growth of 23.40%. Among this, the consumer electronics business contributed 69.04% of the revenue, and the demand for AIPC and wearable devices boosted the traditional business. The revenue of the new energy business was 5.214 billion yuan, accounting for 30.79%, with a year-on-year increase of 47.29%. The release of capacity for power battery structural components has driven up the market share.

It is worth noting that the profit level of Changying Precision has significantly improved. The net profit attributable to the parent company was 772 million yuan, a year-on-year increase of 800.24%, and the net profit after deducting non-recurring gains and losses was 531 million yuan, with an increase of 2,750.70%. The main reasons are that the gross profit margin of precision structural components for consumer electronics remained at a high level of 19.88%, coupled with the scale effect of the new energy component business.

Core business and products

Consumer electronics business: Revenue was 11.691 billion yuan, accounting for 69.04%. Main products include precision structural components and electronic connectors. Customers cover major international clients. The demand for AIPC and wearable devices drove growth.

New energy business: Revenue was 5.214 billion yuan, accounting for 30.79%, with a year-on-year growth of 47.29%. The production capacity of power battery structural components (in bases such as Yibin and Changzhou) was gradually released, and the market share increased.

New business expansion: The robot and intelligent equipment business is accelerating its layout, obtaining multiple designated projects from domestic and foreign humanoid robot customers, and promoting future growth potential.

Through the triangular structure of "the basic consumer electronics + the second curve of new energy + the future reserve of robots", Changying Precision has broken away from its reliance on a single field.

The commissioning of Changying Precision's new energy bases in Yibin, Changzhou and other places has driven up the market share of power battery structural components. Orders for AIpcs and wearable devices from major international clients have driven the gross profit margin of the consumer electronics business to recover. In terms of new track layout, technological breakthroughs such as the continuous die process for stainless steel battery steel shells have laid the foundation for seizing the market of robot joint connectors.

Avic Optoelectronics
The leading defense company is steadily advancing and breaking through the high-end trend of civilian products
As a leading player in the military connector industry, AVIC Optoelectronics achieved a revenue of 20.686 billion yuan in 2024, representing a year-on-year growth of 3.04%, with a net profit of 3.354 billion yuan, maintaining a stable performance.

Its gross profit margin of electrical connectors and integrated interconnection components reached 39.37%, demonstrating an absolute advantage in the defense field. It has achieved full coverage of leading customers in emerging defense supporting facilities such as low-altitude economy and civil aircraft equipment.

In the civilian market, fields such as new energy vehicles and photovoltaic energy storage are experiencing rapid growth. On-board high-voltage interconnection products have become a new engine, and the revenue from liquid cooling solutions business reached 1.634 billion yuan, increasing by 14.44% year-on-year.

Business structure

Defense sector: Consolidate the position of preferred supplier, and achieve full coverage of leading enterprises in emerging fields such as low-altitude economy and civil aircraft equipment.

The civilian market: The fields of new energy vehicles, photovoltaic energy storage, and industrial equipment are experiencing rapid growth, and the advantages of on-board high-voltage interconnection products are significant.

Product revenue

Electrical connectors and integrated interconnection components: Revenue was 16.21 billion yuan, accounting for 78.36%, with a year-on-year growth of 4.58%.

Optical connectors and other optical devices as well as optoelectronic equipment: Revenue was 2.842 billion yuan, accounting for 13.74%, a year-on-year decrease of 9.70%

Liquid cooling solutions and other products: Revenue was 1.634 billion yuan, accounting for 7.90%, with a year-on-year growth of 14.44%.

Avic Optoelectronics has established a full-chain capability covering "materials - processes - inspection" in the defense field. In 2024, it will invest 2.252 billion yuan in research and development, and has been granted over 5,900 patents. Its technological reserves cover cutting-edge areas such as high-speed data communication, environmental light-resistant transmission, and high-power heat dissipation. In addition, AVIC Optoelectronics is currently engaged in research and development projects such as Marine environment resistant connectors, multi-functional integrated charging connectors for new energy, and high-speed backplane connectors for data centers.

Rikeda
New energy vehicles drive high growth and make breakthroughs in overseas markets
In 2024, Ruike Da's revenue reached 2.415 billion yuan, a year-on-year increase of 55.29%. The core growth was attributed to the explosive growth of its new energy vehicle connector business, which generated 2.18 billion yuan in revenue, accounting for over 90% of its total revenue. Its high-voltage, high-current, and liquid-cooled ultra-fast charging products covered mainstream domestic and foreign automakers. The commissioning of its US factory further boosted its export growth. Its net profit was 175 million yuan, up 28.11% year-on-year, but the overall gross profit margin was 21.79%, slightly declining due to the pressure of raw material costs.

Business structure: In 2024, the revenue from Ruike Da's new energy vehicle connector business accounted for 90.28%, being the main source of revenue. The revenue share of the communication connector business is 5.20%, showing a downward trend.

Product revenue

New energy connectors: Achieving operating revenue of 2.18 billion yuan, a year-on-year increase of 59.46%, it is the company's core growth business. The products cover high-voltage and high-current connectors, battery swap connectors, liquid-cooled ultra-fast charging technology products, etc., and are widely used by well-known domestic and foreign automakers.

Communication connectors: Operating revenue was 111 million yuan, up 4.84% year-on-year. Products include 5G board-to-board RF connectors, high-speed copper cable assemblies, etc., serving global communication equipment manufacturers such as ZTE and Ericsson.

Ruikeda takes "new energy vehicles + energy storage" as its main battlefield, with a research and development investment of 147 million yuan. It has achieved full mass production of the FAKRA series of in-vehicle high-speed connectors, supplied small batches of medical endoscope connectors, and has a forward-looking layout of high-speed copper cables in the AI field. Although the proportion of communication connector business has shrunk to 5.20%, the deep integration in the new energy field and the global production capacity layout have made it a niche market.

Yonggui Electrical Appliances: Laying a foundation in rail transit, the second curve of new energy rises
Yonggui Electric's revenue in 2024 was 2.02 billion yuan, representing a year-on-year growth of 33.04%. Among this, the revenue from the automotive and energy information segment was 1.17 billion yuan (accounting for 57.90%), surging by 52.24% year-on-year. It deeply benefited from the increased orders from automakers such as BYD and Geely, with high-voltage connectors and liquid-cooled supercharging guns becoming the main drivers of growth.

The revenue of the rail transit and industrial sector was 725 million yuan (accounting for 35.91%), maintaining steady growth with the support of clients such as CRRC Group. The gross profit margin remained at a high level in the industry at 40.66%.

Core business and products

Rail transit and industry: Accounting for 35.91%(725 million yuan) of revenue, products include connectors, door systems, axle counting systems, etc., supporting customers such as CRRC Group, revenue increased by 8.19% year-on-year.

Vehicle and energy information: Accounting for 57.90%(1.17 billion yuan) of revenue, focusing on high-voltage connectors for new energy vehicles, charging guns (including liquid-cooled ultra-fast charging technology products), PDU/BDU, etc. Revenue increased by 52.24% year-on-year, deeply bound with automakers such as BYD and Geely.

Special equipment: accounting for 6.19%(125 million yuan) of revenue, covering special circular electrical connectors, underwater robot connectors, etc., meeting high-end customization demands.

Relying on the high-margin business of 40.66% in rail transit connectors, Yonggui Electric has smoothly transitioning to the new energy sector.

In 2024, Yonggui Electric will focus on the trial production of samples of high-speed and high-frequency connectors for vehicles (Mini-FAKRA, in-vehicle Ethernet) to meet the data transmission requirements of intelligent vehicles. At the same time, it will promote megawatt-level liquid-cooled ultra-fast charging technology and lay out cable-free special connection technology. Although its overall scale is not as large as that of the leading companies, its "rail transit + new energy" dual-wheel drive model has strong anti-cyclical ability and significant technical barriers in the niche market.

Zhu Cheng Technology
The home appliance market has been deeply cultivated, and the transformation towards new energy has begun
Zhu Cheng Technology's revenue in 2024 was 1.603 billion yuan, representing a year-on-year growth of 31.77%. Among this, the revenue from home appliance connectors was 1.549 billion yuan (accounting for 96.64%). Relying on leading customers such as Midea and Haier, the "trade-in" policy drove a 32.49% increase in revenue.

However, the automotive connector business was only 0.24 billion yuan (accounting for 1.48%), a year-on-year decline of 2.48%, reflecting that it has not yet formed a scale effect in the automotive field.

Image/Zhucheng Technology Official Website

Core business and products

Home appliance connectors: Revenue was 1.549 billion yuan, accounting for 96.64% of total revenue, and it was the core source of income. The products included sealed anti-fluid connectors and precision SMT surface mount connectors. Revenue increased by 32.49% year-on-year.

Automotive connectors: Revenue was 0.24 billion yuan, accounting for 1.48% of total revenue. The product range includes low-voltage and high-voltage connectors. Revenue in 2024 decreased by 2.48% year-on-year.

In 2024, Zhu Cheng Technology spent 64.7206 million yuan on research and development, accounting for 4.04% of its revenue, representing a year-on-year growth of 1.51%. Its key research and development projects, including high-precision puncture connectors and high-reliability sealed connectors, have both achieved mass production. High-voltage connectors for new energy vehicles and high-load photovoltaic energy storage connectors have entered the small-scale trial production stage to meet the demands of smart vehicles and energy storage devices.

Dingtong Technology
AI empowers communication, and automotive connectors are growing steadily
In 2024, Dingtong Technology's revenue was 1.032 billion yuan, representing a year-on-year growth of 51.12%. Among this, the revenue from communication connector components was 597 million yuan, accounting for approximately 57.85%. The mass production of 112G high-speed products, coupled with the market demand driven by AI, led to a 71.63% increase in revenue and a rise in gross profit margin to 31.71%.

Revenue from automotive connector components was 266 million yuan (accounting for approximately 25.78%), with a strong demand for high-voltage connectors and BMS structural parts. Revenue increased by 25.21%, and the gross profit margin was 23.50%, up by 2.51 percentage points year-on-year.

Core business

High-speed communication connectors: covering backplane connectors, I/O connectors and other components, they are applied in data centers and servers. Customers include international leaders such as Amphenol, Molex and Tyco Electronics.

Automotive connectors: Focusing on electronic control, high-voltage connectors and components, supporting BYD, FAW, SVOLT Energy Technology, etc. The revenue of new energy vehicle-related businesses is expected to grow significantly in 2024.

Product revenue

Communication connector components: Revenue was 597 million yuan, up 71.63% year-on-year. The mass production of 112G high-speed products drove growth.

Automotive connector components: Revenue was 266 million yuan, increasing by 25.21% year-on-year. The demand for high-voltage connectors and BMS structural components has risen.

Dingtong Technology seized the wave of AI server upgrades, focused on the communication and automotive fields, closely followed the technological trends of the industry, and optimized mold design and production processes. In the field of communication, we accompany customers in developing high-speed products and trial-produce liquid-cooled heat sinks. In the automotive field, optimize existing products and develop new BMS products. By means of in-depth cooperation with international major clients and continuous investment in research and development, a competitive edge has been gradually established in the niche market.