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HONG KONG, May 12, 2016 - (ACN Newswire) - AAC Technologies Holdings Inc. ("AAC Technologies" or "the Company"; Stock Code: 02018) has today announced its unaudited first quarter results for the three months ended 31 March 2016, reporting revenue for the quarter of RMB2,545 million and net profit of RMB619 million.
2016 First Quarter Highlights (unaudited):
- Revenue increased 10% year-on-year amidst market challenges;
- Upgraded acoustic solutions drove dynamic components sales growth of 36% year-on-year;
- Sales revenue from Chinese customers surged 41% year-on-year, contributing over 35% of total sales;
- Non-acoustic segment delivered 26% of total sales, down 19% year-on-year, mainly due to customers seasonal adjustments. Further customer diversification continues to build a strong technology foundation for this segment.
Business Review
The Company reported the highest "Q1" sales and earnings in its history. During the January to March period, revenue and gross profit were up 10% and 8% year-on-year to RMB2,545 million and RMB1,031 million respectively despite a new round of market challenges. Upgraded acoustic solutions drove dynamic components sales growth of 36% year-on-year to contribute 66% of the total sales. Higher market share in acoustic solutions led to a 41% year-on-year increase of revenue from Chinese customers to RMB908 million, accounting for over 35% of the total sales. The gross margin reflected the impact of the traditional slow season and shift in customers' product mix, but still stayed firmly above 40%. Net profit sustained growth of 2.1% year-on-year amounting to RMB619 million. The drop in net profit margin was mainly due to the increased R&D expenses relating to new projects in the pipeline.
The first quarter of the year is seasonally quiet relative to the sales momentum in the western and Chinese festive periods around the final quarter of the year. For this first quarter of 2016, the Company recorded a quarterly drop in revenue of 34% against the backdrop of exceptionally strong fourth quarter results in 2015. However, in this quarter, the Company received persistently encouraging market response for its acoustic solutions especially speaker boxes in certain Android customers. RF Mechanical together with haptics solutions, the two distinct contributors in non-acoustic business, contributed 26% of the total sales in the first quarter, down 19% year-on-year and 60% quarter-on- quarter mainly due to customers seasonal adjustments. The Company sees good opportunity for further customer diversification and will continue to build a strong technology foundation for its non-acoustic segments.
The Company started the year with a solid base of revenue growth even under challenging business climate. We expect to grow further in the coming quarters as the Company is in a prime position to capitalise on accelerating audio performance and rising adoption of speaker boxes amongst Chinese customers. At the same time, contributions from the high value RF Mechanical solutions are expected to increase. As we strive to gain more market share in the non-acoustic business and maintain our leading position in the acoustics market, we will continue to bolster our R&D, in order to deliver innovative products enhancing user experience and offer a wider range of solutions catering for different customer requirements.
Contact:
AAC Technologies Holdings Inc.
Connie Chin
Head of Investor Relations
Tel: 852 3470 0079
Email: ConnieChin@aactechnologies.com
Ricky Man
Investor Relations Manager
Tel: 852 3470 0076
Email: RickyMan@aactechnologies.com
For press enquiries:
Strategic Financial Relations Limited
Vicky Lee Tel: 852 2864 4834 Email: vicky.lee@sprg.com.hk
Cecilia Shum Tel: 852 2864 4890 Email: cecilia.shum@sprg.com.hk
Phoebe Li Tel: 852 2864 4862 Email: phoebe.li@sprg.com.hk
Fax: 852 2527 1196
Topic: Press release summary
Source: AAC Technologies Holdings Inc.
Sectors: Electronics, Daily Finance, Daily News
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From the Asia Corporate News Network
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