Driven by Strong Non-acoustic and Dynamic components, up 225% and 14% respectively YoY
HONG KONG — 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.
BUSINESS REVIEW
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.