AAC Technologies profit climbs 45.2% to US$60.01m in Q2

This is up from RMB268m (US$41.35m) in the same quarter in 2020.

AAC Technologies Holdings Inc. reported its profit grew 45.2% to RMB389m, approximately US$60.01m, in the second quarter of the year.

This is an increase from RMB268m (US$41.35m) recorded in the same quarter last year. It, however, dropped 26.9% when compared to the previous quarter.

The group noted the second quarter is traditionally a low season for the smartphone industry. Despite this, it managed to see a 0.6% quarter-on-quarter revenue growth.

Revenue during the period amounted to RMB4.31b (US$664.98m), up from RMB4.27b (US$658.8) in 2020.

“The industry continued to be impacted by a worldwide resurgence of COVID-19 pandemic, especially in areas such as Vietnam, and the upstream's chip shortage situation, the group's overseas plants experienced an underutilization of their production capacity,” it noted.

The group’s revenue for the quarter climbed in its acoustics business (7%), and optics business (112.3%); but declined in its electromagnetic drives and precision mechanics business (-29.4%) and MEMS business (-7.9%).

The group declared a dividend worth HK0.20 cents per share, up from HK0.10 cents per share in 2020.

“Following the alleviation of the pandemic and the recovery of consumer sentiment in 2021, the global smartphone market has demonstrated a recovery trend,” the group said in the report.

“Further penetration of 5G technology is expected to continue to drive demands for application innovations and better user experience, therefore boosting replacement cycle in smartphones which will drive the growth of smartphone shipment.”

In line with this, the group will continue efforts to capture opportunities arising from the new 5G era.