AAC Technologies profit up 33% to RMB509mn

The company sees potential in acquisitions and continuous internal R&D investment in acoustic, optic, haptic, antenna, and battery applications .

AAC Technologies Holdings Inc. (“AAC Technologies”), a world leading miniature components total solutions provider, announced on Friday its unaudited results for the first six months ended 30 June 2011.

In the first half of 2011, the Company has continued to ride on the growth momentum that started since the second half of 2010. Strong performance was recorded with revenue increasing by 41% year-on-year to RMB 1,882 million (1H2010: RMB 1,334 million), attributable to the expanded customers portfolio and product mix enhancement. Gross profit grew 40% to RMB 821 million (1H 2010: RMB 588 million), while gross profit margin slightly reduced by 0.5 percentage points to 43.6% (1H2010: 44.1%). Profit attributable to owners of the Company and earnings per share were RMB 509 million and RMB 41.47 cents respectively (1H 2010: RMB 382 million and RMB 31.14 cents), both representing an increase of 33% year-on-year respectively. Net profit margin for the period reduced to 27.0% (1H 2010: 28.6%). The Company declared payment of an interim dividend of HK$ 0.20 per share, which increased 41% comparing with last year, according to an AAC Technologies report.

On a quarter-on-quarter basis, the revenue of 2Q 2011 decreased to RMB 912 million, down 6% from that of 1Q 2011, mainly due to changes in the market shares of the Company’s customers. Gross profit margin rose by 0.3 percentage points sequentially. The Company’s continuous progress towards greater automation in production and stringent cost control measures have mitigated cost pressures. Net profit margin reduced by 2.0 percentage points compared to 1Q 2011, due to increased research and development investment. The Company’s financial position remained strong with a total of RMB 1.7 billion of cash and bank balances as at 30 June 2011.

Leveraging its sophisticated technologies and design-in capabilities, the Company has successfully extended its market reach and is well-positioned to ride on the rapid growth in the take-up of smartphones, tablet computers and e-book readers. Better acoustic performance of embedded components enpowering enriched multimedia functionality, should continue to drive revenue growth in the long term.

AAC Technologies has entered into agreements with China-based R&D companies in August 2011 for the acquisition of Li-ion battery technologies and production facilities, aimed at providing a better yet less costly alternative power solution to its branded customers. Together with other R&D advances in non-acoustic segments, namely lenses, antennas and ceramics, the Company’s non-acoustic roadmap has laid a strong foundation for long term sustainable growth.

Mr Benjamin Pan, Chief Executive Officer of AAC Technologies, said, “While evolving into a comprehensive leading miniature component supplier, providing unique, innovative and high profitability solutions has always been our priority strategy. Through a series of acquisitions and continuous internal R&D investment, we have successfully enhanced our product portfolio in acoustic, optic, haptic, antenna, and battery applications. We see huge potential in these market segments and believe that AAC Technologies will be able to replicate its success in acoustics products within these new business segments”.