Aac Technologies Holdings Inc. · HKEX:2018

Aac Technologies — Q3 2019 Earnings Presentation

21 slides from Aac Technologies's earnings presentation, Nov 8, 2019

  1. Slide 1: 2019 3Q Results

    AAC TECHNOLOGIES HOLDINGS INC. (Incorporated in the Cayman Islands with limited liability) (Stock code: 2018 HK) 2019 3Q Results 8 November 2019

  2. Slide 2: 9M and 3Q 2019 highlights

    9M and 3Q 2019 highlights  3Q19 revenue +2.9% YoY / +31.4% QoQ, Gross GP Net exhibiting a sequential improvement and Revenue Profit Margin Profit mitigating some 1H revenue decline (RMB) 9M19 12.6B 3.57B 28.4% 1.47B  9M19 revenue -5% YoY, mainly reflecting the adverse results of 1Q19 3Q19 5.01B 1.

  3. Slide 3: Effective financial management & solid Cash Position

    Effective financial management & solid Cash Position  Operating cash inflow of RMB2.7bn as at Sep 2019, more than enough to cover the capital expenditure  Disciplined and manageable capex with RMB2.0 bn spent during 9M19  Net gearing remains healthy at 10.5%as at Sep 2019 (9.8% as at Jun 2019). G

  4. Slide 4: Investing in future sustainable growth

    Investing in future sustainable growth No. of Patents 4,500 Korea 4,000 Denmark Japan Suwon 3,500 US Copenhagen Osaka Aalborg 3,000 Irvine Finland 2,500 China Turku 2,000 Tampere Beijing, Wuhan, 1,500 Singapore Nanjing, 1,000 Changzhou, Suzhou, 500 Shanghai, - Shenzhen FY14 FY15 FY16 FY17 FY18 3Q19

  5. Slide 5: Optics – delivering growth

    Optics – delivering growth  3Q19 shipment volume increased significantly TOP 3 global supplier as compared to 2Q19. 9M19 and 3Q19 revenue grew 76% and of plastic lens 80% YoY respectively  3Q19 unit cost declined as compared to 1H19, with improved yield and higher capacity utilization  Management

  6. Slide 6: Performance by business segments

    Performance by business segments

  7. Slide 7: Acoustics

    Acoustics 9M19 9M18 9M19 YoY 3Q19 2Q19 3Q18 3Q19 QoQ 3Q19 YoY Revenue (RMB mn) 5,926 6,795 -12.8% 2,280 1,767 2,492 29.0% -8.5% GP Margin 31.3% 37.9% -6.6 p.p. 33.3% 27.2% 38.6% +6.1 p.p. -5.3 p.p. Gross Profit(RMB mn) 1,857 2,577 -27.9% 760 480 962 58.2% -21.0% Performance Review Outlook  3Q19 Shi

  8. Slide 8: Electromagnetic Drives (ED) and Precision Mechanics (PM)

    Electromagnetic Drives(ED) and Precision Mechanics(PM) 9M19 9M18 9M19 YoY 3Q19 2Q19 3Q18 3Q19 QoQ 3Q19 YoY Revenue (RMB mn) 5,200 5,408 -4.0% 2,118 1,548 1,930 36.8% 9.8% GP Margin 29.5% 38.6% -9.1 p.p. 29.5% 27.0% 38.1% +2.6 p.p. -2.8 p.p. Gross Profit(RMB mn) 1,540 2,096 -26.5% 626 419 735 49.4% -

  9. Slide 9: Micro-electromechanical systems (MEMS)

    Micro-electromechanical systems (MEMS) 9M19 9M18 9M19 YoY 3Q19 2Q19 3Q18 3Q19 QoQ 3Q19 YoY Revenue (RMB mn) 669 612 9% 289 226 268 28% 8% GP Margin 26.9% 26.6% +0.3 p. p. 31.3% 26.9% 35.7% +4 p.p. -5 p.p. Gross Profit(RMB mn) 180 163 10% 90 61 96 49% -6% Performance Review  9M19 Revenue +9 %YoY to

  10. Slide 10: Efforts on sustainability

    Efforts on sustainability Key Benchmarks Disclosure Adhered to International Standards Selected Ratings & Rankings BBB GRI Standards ESG data assurance AA Score 76.9/100 <IR> Framework ESG Reporting Guide Alignment on track 60 ESG score TCFD recommendations UNSDGs 9

  11. Slide 11: Efforts on sustainability (Cont’)

    Efforts on sustainability (Cont’) Major Awards & Recognitions  Certificate of Excellence of the Hong Kong Sustainability Award  Best ESG Report (Large Cap) 2018/19 Organization Award  Best in Reporting (Large Cap) Certificate of Merit  Excellence in GRI Report  Citation for Environmental, Socia

  12. Slide 12: Appendices

    EERIE PRA) AAC TECHNOLOGIES HOLDINGS INC.

  13. Slide 13: Appendix (1) - AAC’s key product lines

    Appendix (1) - AAC’s key product lines Acoustics Electromagnetic Drives Optics Haptics Exciter, Stepper motor Hybrid Plastic Camera Speaker, Acoustic MEMS audio module lens lens module receiver modules microphone display Precision Processing High-speed RF/Antenna Powered hinge Transmission LDS LCP F

  14. Slide 14: Appendix (2) - Major segments creating synergies

    Appendix (2) - Major segments creating synergies Haptic / 3D Glass/ Acoustics MEMS ED Optics Metallic RF Solutions Components Components Casing In-house Integrated Electromagnetic Special Metallic RF Front-end Seamless Expertise Moulding Integration Design • Develop total solutions by cross-platform

  15. Slide 15: Appendix (3) - Diversified manufacturing bases in Asia Pacific

    Appendix (3) -Diversified manufacturing bases in Asia Pacific Shuyang Ma’Anshan • Acoustics (Automation) • Chemical treatment • Electromagnetic drives • Precision parts • RF/antenna • Precision processing Xiamen • MEMS Changzhou • Acoustics • Precision processing (3D glass) • Electromagnetic drives

  16. Slide 16: Appendix (4) - Returning to shareholders via dividends and buyback

    Appendix (4) -Returning to shareholders via dividends and buyback  1H19 interim dividend at HK$0.40 (flat YoY)  In FY14-18, DPS has been maintained at 40% of EPS  During 1H19, RMB1.37bn (or HKD1.56bn) was spent on paying dividend and share buyback Returning to shareholders via (RMB) Rewarding sha

  17. Slide 17: Appendix (5) – Financial summary – Profit & loss

    Appendix (5) – Financial summary – Profit & loss (In RMB million) 9M 2019 9M 2018 Revenue 12,579 13,293 Cost of goods sold (9,012) (8,395) Gross profit 3,568 4,899 Gross margin % 28.4% 36.9% D&S expenses (186) (219) Administrative expenses (448) (431) R&D expenses (1,264) (1,119) Others 38 39 Profit

  18. Slide 18: Appendix (5) – Financial summary – Balance sheet

    Appendix (5) – Financial summary – Balance sheet (In RMB million) As at 30 September 2019 As at 31 December 2018 Property, plant and equipment 16,197 15,440 Deposits made for acquisition of PPE 761 1,086 Right-of-use assets 742 - Others 727 1,358 Non-current assets 18,427 17,884 Inventories 3,229 3,

  19. Slide 19: Appendix (5) – Financial summary – Cashflow statement

    Appendix (5) – Financial summary – Cashflow statement (In RMB million) 9M19 9M18 Profit before taxation ¥1,708 ¥3,168 Adjustments 1,751 1,371 Operating cash flows before movements in working capital 3,459 4,539 Decrease in inventories 95 45 (Increase) decrease in trade and other receivables (824) 1,

  20. Slide 20: Investors information

    Investors information STOCK CODE CONTACT INVESTOR RELATIONS The Stock Exchange of Hong Kong Limited: Company website: https://www.aactechnologies.com/en/ 2018 Bloomberg: 2018: HK Email : aac2018@aactechnologies.com Reuters: 2018.HK Official IR wechat: ISIN: KYG2953R1149 MAJOR MARKET INDEXES Constitu

  21. Slide 21: Disclaimer

    Disclaimer  The performance and the results of operation of AAC Technologies set out in this presentation are historical in nature and past performance is not a guarantee of future performance.  Certain statements made herein are forward-looking or which use certain forward-looking terminologies.

AAC Technologies Holdings — Q3 2019 Earnings Presentation on 6ix