AAC Technologies nine month profit up to RMB771mn

The company is well-positioned to penetrate into new business segments as its revenue rose 28%.

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

During the nine months under review, revenue increased 28% year-on-year to RMB 2,927 million (Jan-Sep 2010: RMB 2,290 million), while the gross profit margin decreased by 0.9 percentage points to 43.8% (Jan-Sep 2010: 44.7%). Profit attributable to owners of the Company and earnings per share were respectively RMB 771 million and RMB 62.82 cents (Jan-Sep 2010: RMB 665 million and RMB 54.13 cents), both representing an increase of 16% from that of the same period in 2010. Net profit margin for the period decreased to 26.4% (Jan-Sep 2010: 29.0%), mainly caused by the higher research and development expenditure, according to an AAC Technologies report. 

On a quarter-on-quarter basis, driven by the strong growth of major handset customers, AAC Technologies recorded solid quarterly results. Revenue of 3Q 2011 increased 15% from that of 2Q 2011 to RMB 1,045 million. Benefiting from continuous advancement in production automation in major product platforms, gross profit margin improved to 44.0%. Net profit margin slightly declined to 25.1%, mainly due to increased exchange losses on the back of RMB appreciation. Leveraging its state-of-the-art technologies in miniature components, AAC Technologies is well placed to capture the market pick-up driven by non-handset multimedia devices such as tablets and e-book readers. Penetrating this new business segment not only expands the Company’s addressable market, but has also lifted the average selling price of products. The non-handset segment is expected to be one of the growth drivers in future years.

The Company’s investment and efforts in the R&D of non-acoustic components such as lenses, antennas and ceramics products continue to be on track and will begin to make contributions in the years ahead.

Mr Benjamin Pan, Chief Executive Officer of AAC Technologies, said, “While strengthening our fundamentals to reinforce our presence in the smartphone market, we have also dedicated resources to expand into non-acoustic and non-handset segments where we see huge potential for continued growth of the Company. We believe the demand for new smartphones and intelligent mobile devices will be strong and that our outstanding R&D capability and high production quality and efficiency will provide us with a competitive edge to grasp the growth opportunities.”