"AAC Acoustic Holdings Inc." has changed to "AAC Technologies Holdings Inc."   

Current PostionHomeAbout AACLatest News2014 Q1 Results - 15% Quarterly Drop in Revenue Reflects Seasonal Quiet First Quarter

2014 Q1 Results - 15% Quarterly Drop in Revenue Reflects Seasonal Quiet First Quarter

AAC Technologies Reports First Quarter Revenue of RMB1,854 Million
and Net Profit of RMB487 Million

*     *     *

15% Quarterly Drop in Revenue Reflects Seasonal Quiet First Quarter

*    *    *

Wireless/RF Solution Sales Increased Triple Y-o-Y

Financial Highlights

(RMB Million)

1Q 2014

4Q 2013

Q-o-Q

1Q 2013

Y-o-Y

Revenue

1,854

2,182

-15%

1,905

-3%

Gross Profit

745

934

-20%

814

-8%

Gross Profit Margin

40.2%

42.8%

-2.6pts

42.7%

-2.5pts

Net Profit

487

604

-19%

534

-9%

Net Profit Margin

26.3%

27.7%

-1.4pts

28.0%

-1.7pts

Basic EPS (RMB cents)

39.66

49.20

-19%

43.47

-9%

(9  May  2014  –  Hong Kong)  –  AAC  Technologies  Holdings Inc.  ( “ AAC Technologies ” or “ the Company”; HKEx: 02018), a world-leading miniature technologies components solution provider, today announced its unaudited first quarter results for the three months ended 31 March 2014 (“the period”).

For this first quarter of 2014 , the  annual  seasonal  quiet  period  following  the  holiday  season ,  the Company recorded revenue of RMB1,854 million  ( 4Q  2013:  RMB 2,182 million ), a quarterly drop in revenue of 15% as there were fewer ramp-ups and new smart devices launched. In this quarter, gross and net profit, respectively, were RMB745 million and RMB487 million. The shift in product mix and the slight rise in production costs caused the slight drop of gross and net profit margin by 2.6pts and 1.4pts respectively to 40.2% and 26.3%. The net profit margin drop was mitigated by the ongoing cost control measures and higher operating efficiency.

Against  the  backdrop  of  an  exceptionally  strong  first  quarter  last  year,  due  to  successful  sales penetration  within  major  customers, the  Company  has  delivered a satisfactory performance when compared on a year-on-year basis. The lower operating margins reflected the impact of the traditional slow season and shift in customers’ product mix. However, in this fundamental quarter, the Company continued to receive an encouraging market response for its new non-acoustic business especially RF solutions. Revenue from RF segment increased triple when compared to the first quarter last year. RF solutions together with haptics will continue to bring greater contributions to the Company’s non-acoustic business in 2014.

Mr Benjamin Pan, Chief Executive Officer of AAC Technologies, said, “We remain optimistic about maintaining growth for the full-year due to the strong demand for incorporating the latest technology in smart devices. While strengthening our leadership in the acoustic field, we will strive to expand the non-acoustic segment by leveraging our technology, production know-how and solid operating track record. This can open up new addressable markets and help us to win a higher market share in the fast-changing smart devices industry.”

-End-

About AAC Technologies Holdings Inc.
AAC Technologies is an established leading designer, developer and manufacturer of a broad range of miniaturised acoustic components. The Company also provides a range of innovative technology design solutions in non-acoustic segments. Acoustic products include speakers, receivers and microphones and non-acoustic products include antennas, optical lenses, vibrators and ceramics products. The Company serves a large number of geographically diverse customers in the consumer electronics market. The Company’s products are found in mobile handsets, tablets, wearables, ultrabooks, notebooks and electronic book-readers. The Company is global in scope with research and development centers in the PRC and Singapore, testing laboratories in Singapore and Korea, manufacturing facilities in the PRC and sales offices throughout the world.

AAC Technologies is a constituent stock of Hang Seng Corporate Sustainability Benchmark Index, Hang Seng Mainland 100 Index, Hang Seng Composite MidCap Index, Hang Seng Global Composite Index, Hang Seng Composite Industry Index (Information Technology), MSCI China Index and FTSE Hong Kong Index.

For more details, please visit www.aactechnologies.com

Contact:

AAC Technologies Holdings Inc.

Connie Chin

Head of Investor Relations

Tel: 852 3470 0079

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For press enquiries:

Strategic Financial Relations Limited

Vicky Lee

Tel: 852 2864 4834 / 9471 2009

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Cecilia Shum

Tel: 852 2864 4890 / 9609 3609

Email: cecilia.shum@sprg.com.hk

Cherie Lee

Tel: 852 2114 4901 / 6927 8818

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Fax: 852 2527 1196