Driven by Strong Non-acoustic and Dynamic components, up 225% and 14% respectively YoY
HONG KONG, May 12, 2017 - (ACN Newswire) - AAC Technologies Holdings Inc. ("AAC Technologies" or "the Company", Stock code: 02018) has today announced its unaudited results for the three months ended 31 March 2017, reporting revenue of RMB4,215 million and net profit of RMB1,062 million. For details, please refer to the Results Announcement which has been published on the website of HKEx and the Company.
2017 First Quarter Highlights (unaudited):
- Most profitable Q1 in the Company's history; - Revenue up 66% year-on-year with strong growth across core business lines; - RF Mechanical and Haptics, the non-acoustic segment, grew 225% year-on-year, accounting for 52% of total sales; - Dynamic components rose 14% year-on-year and delivered 45% of total sales; - Gross margin and net margin improved 1.1ppt and 0.9ppt respectively compared to the corresponding prior-year quarter; and- Earnings per share for Q1 up 72% year-on-year to RMB0.86.
AAC Technologies built on the momentum of last year with a strong start to 2017. During the January to March period, revenue was up 66% year-on-year to RMB4,215 million. This is the highest Q1 sales the Company has ever reported. Our industry-leading acoustic business delivered another quarter of growth domestically and internationally. Upgraded acoustic solutions with higher dollar-content drove dynamic components sales growth of 14% year-on-year, contributing 45% of total sales. In the non-acoustic segment, the Company enjoyed another robust performance this quarter. Sales of RF Mechanical and Haptics soared 225% year-on-year and accounted for 52% of total sales. Gross margin improved 1.1ppt year-on-year, rising to 41.6% because of a better product mix. Net profit grew 72% year-on-year amounting to RMB1,062 million, mainly driven by effective control of operating expenses. The management continues to aim for growth and continuous improvement, enabling outperformance of the market the Company operates in.
The first quarter is a seasonal quiet period following Christmas and Chinese New Year holidays with fewer ramp-ups and launches of new smart devices. For this first quarter of 2017, the Company's revenue declined sequentially by 27% against the strong fourth quarter results in 2016. Nonetheless, in this quarter, the Company received persistent encouraging market response to its upgraded acoustic solutions especially stereo and waterproof features. The Company continues to build a strong technology foundation for its non-acoustic segments. As in the previous quarter, in the first quarter the contributions from the non-acoustic business continued to exceed acoustics revenue.
The business fundamentals driving the Company are progressing in line with our expectations, and the performance this quarter demonstrates that the Company is on track to achieve its financial and operational objectives. We remain confident in our ability to successfully execute our long-term growth strategies by leveraging on our industry leading market position, our R&D and innovation capabilities, our unique technology solutions and our vertically integrated manufacturing operations. We strive to create shareholder value through disciplined management and financial prudence.
About AAC Technologies Holdings Inc.AAC Technologies is a constituent stock of Hang Seng Index, Hang Seng Corporate Sustainability Index, Hang Seng (Mainland and HK) Corporate Sustainability Index, Hang Seng China(Hong Kong Listed) 25 Index, Hang Seng Composite LargeCap Index, Hang Seng Composite Industry Index (Information Technology), Hang Seng IT Hardware Index, MSCI China Index, MSCI China ESG Index and FTSE Hong Kong Index.
AAC Technologies is a total solution provider utilizing the latest miniaturized technology components across acoustic, haptics, RF wireless and optical segments. The Company is already an established leading global supplier of miniaturized acoustic components including a broad range of speakers, receivers and MEMS microphones. The Company delivers integrated solutions across multiple segments incorporating advanced proprietary technologies haptics vibrators, RF antennas and optical components. The Company's products are found in mobile devices such as smartphones, tablets, wearables, and PC notebooks. The Company is global in scope with research and development centers and has established sales offices in key markets serving a large number of geographically diverse customers in the mobile electronics market. www.aactechnologies.com
PAST PERFORMANCE AND FORWARD-LOOKING STATEMENTSThe performance and the results of operation of the Group as set out in this document are historical in nature and past performance is not a guarantee of future performance. This document may contain certain statements that are forward-looking or which use certain forward-looking terminologies. These forward-looking statements are based on the current beliefs, assumptions and expectations of the Board of Directors of the Company regarding the industry and markets in which it operates. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions. The Group, the Directors, employees and agents of the Group assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this results announcement of the Company; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialise or turn out to be incorrect.
For any other enquiries, please contact:
AAC Technologies Holdings Inc.Connie ChinHead of Investor RelationsTel: 852 3470 0079Email: ConnieChin@aactechnologies.com
Ricky ManInvestor Relations ManagerTel: 852 3470 0076Email: RickyMan@aactechnologies.com
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Source: AAC Technologies Holdings Inc.
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