AAC Records Historical Highs in Q3 and 9 months YTD 2016 Results
Financial Highlights for the Nine Months ended 30 September 2016 (unaudited):
-- Record nine months revenue, up 24% year-on-year, with solid gross profit margin of 41.4%;
-- Strong growth across core business lines in the nine months of 2016. On a year-on-year basis, dynamic components rose 30% and delivered 57% of total sales, whereas non-acoustic solutions grew 34%, accounting for 38% of total sales;
-- Achieved a more balanced customer portfolio. Sales revenue from Chinese customers contributed over 40% of total sales in the nine months of 2016;
-- Net profit margin achieved 25.1% with EPS up 17% year-on-year; and
-- Annualized ROE: 27.5% vs 10-year average of 27.0%.
AAC Technologies recorded historical highs in both quarterly sales and earnings for the three months ended 30 September 2016. The Company reported 3Q 2016 net profit of RMB1,100.2 million, or RMB0.9 per share, representing a quarter-on-quarter increase of 50%. Revenue was up 39% sequentially to RMB4,206.7 million. A new quest for upgrading audio quality of smart devices drove dynamic components sales up by 25% quarter-on-quarter, contributing 51% of total sales. The non-acoustic segment enjoyed continued growth momentum. Sales grew by 63% against 2Q 2016, accounting for 45% of total sales. Overall gross profit margin improved to 41.8%. Through better control of operating expenses, net profit margin improved 180 basis points to 26.2% compared with the previous quarter. These 3Q results reflected strong performance across the Group and the sustained progress of effective cost control. The Group's strategy, executed over the course of 2016, contributed these results.
During the nine months of 2016, revenue and net profit rose 24% and 17% year-on-year to RMB9,770.3 million and RMB2,455.0 million respectively due to solid growth attained across all major business lines. Sales of dynamic components increased by 30% year-on-year, contributing 57% of total sales. Non-acoustic segment achieved 34% year-on-year sales growth, accounting for 38% of total sales. Overall gross profit margin stabilised at 41.4%, achieved from a new business mix that included important new product lines. The Company achieved a more balanced customer portfolio and generated robust sales from Chinese customers, up 57% year-on-year, and constituting over 40% of total sales. The Company continues to invest in R&D and such expenses increased to 8.4% of sales. Net profit margin achieved in the nine months was 25.1% and basic earnings per share was up 17%. Continued momentum in non-acoustic solutions coupled with the leading technology position of the acoustic business delivered these strong results and a 27.5% annualized return on equity for the nine months of 2016.
Looking ahead, 4Q 2016 is the traditional peak season, driven by higher demand from the Company's diverse customer base. Starting in 2017, a major trend expected to benefit the Company would be an upgrade of acoustics with increasing adoption of speaker boxes, stereo solutions and waterproof features. Meanwhile, consistent enhancement of RF Mechanical, haptics and optics solutions should enable the Company to penetrate new areas more effectively. AAC Technologies will capture the promising market opportunities by bolstering R&D, offering a wider range of innovative products and solutions under our multi-platform business model.
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 Mainland 100 Index, Hang Seng Composite LargeCap Index, Hang Seng Composite Industry Index (Information Technology), Hang Seng IT Hardware Index, MSCI China 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
This press release 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 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 press release of the Company; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialize or turn out to be incorrect.
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AAC Technologies Holdings Inc.
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Tel: 852 3470 0079
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Tel: 852 3470 0076
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Source: AAC Technologies Holdings Inc.
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