Aac Technologies Holdings Inc. · HKEX:2018

Aac Technologies — H1 2019 Earnings Presentation

17 slides from Aac Technologies's earnings presentation, Aug 23, 2019

  1. Slide 1: AAC Technologies 2019 Interim Results

    AAC TECHNOLOGIES HOLDINGS INC. (Incorporated in the Cayman Islands with limited liability) (Stock code: 2018 HK) 2019 Interim Results 23 August 2019

  2. Slide 2: 1H 2019 highlights

    1H 2019 highlights Revenue G.P. margin Net profit EPS Interim DPS 01 RMB 7.6B 02 27.5% 03 RMB 770M 04 RMB 0.64 05 HK$0.40 （-10% YoY) (- 9 p.p.) (-57% YoY) (-56% YoY) (flat YoY)  1H19 revenue -10%YoY, but 2Q19 revenue +1% YoY / 1H19 revenue breakdown +2% QoQ to RMB3.8bn, exhibiting a sequential impr

  3. Slide 3: 1H19 key progresses

    1H19 key progresses 1、 Acoustics: Entry-level SLS 4、Accelerating technical products covered most Android development and mass production flagships and penetrated into mid-end of WLG models (from high-end models) 5、Stepper motor module started mass production ; shipment to 2、Optics: Monthly shipments

  4. Slide 4: Effective financial management & solid Cash Position

    Effective financial management & solid Cash Position  Operating cash inflow of RMB1.8bn as at 1H19, more than enough to cover the dividend payments and share buyback  Gross cash on hand of ~RMB3.2bn as at Jun 2019, 45% in RMB and 48% in USD  Disciplined and manageable capex; net gearing remains a

  5. Slide 5: Returning to shareholders via dividends and buyback

    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 shareholders with

  6. Slide 6: Investing in future sustainable growth

    Investing in future sustainable growth No. of Patents Korea 4,500 Denmark Japan 4,000 Suwon US Copenhagen Osaka 3,500 Aalborg 5Y CAGR at +18% Irvine 3,000 Finland China 2,500 Turku Beijing, 2,000 Tampere Wuhan, 1,500 Singapore Nanjing, Changzhou, 1,000 Suzhou, 500 Shanghai, Shenzhen - FY14 FY15 FY16

  7. Slide 7: Diversified manufacturing bases in Asia Pacific

    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 Nanning • Opti

  8. Slide 8: Optics as a key & strategic growth driver

    Optics —— as a key & strategic growth driver  Get at higher specs orders to improve capacity utilization and optimize production efficiency TOP 3 global supplier of plastic lens  Average monthly shipments ~30mn units in 2Q19, up 100% YoY  Plan for production of high-end hybrid designs  Average m

  9. Slide 9: Performance by business segments

    Performance by business segments

  10. Slide 10: AAC's key product lines

    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 FPC PCB Connecto

  11. Slide 11: Major segments creating synergies together

    Major segments creating synergies together Haptic / 3D Glass/ Acoustics MEMS Optics ED 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-platforms core

  12. Slide 12: Acoustics

    Acoustics 1H19 1H18 1H19 YoY 2Q19 1Q19 2Q18 2Q19 QoQ 2Q19 YoY Revenue (RMB mn) 3,646 4,302 -15% 1,767 1,879 1,885 -6% -6% GP Margin 30.1% 37.5% -7 p.p. 27.2% 32.9% 36.7% -6 p.p. -10 p.p. Gross profit (RMB mn) 1,097 1,615 -32% 480 617 692 -22% -31% Performance in 1H19 Outlook  “Upgraded version” of

  13. Slide 13: Electromagnetic Drives (ED) and Precision Mechanics (PM)

    Electromagnetic Drives(ED) and Precision Mechanics(PM) 1H19 1H18 1H19 YoY 2Q19 1Q19 2Q18 2Q19 QoQ 2Q19 YoY Revenue 3,030 3,438 -12% 1,496 1,534 1,534 -2% -2% GM 29.7% 39.6% -10 p.p. 27.0% 32.3% 36.9% -5 p.p. -10 p.p. Gross profit 900 1,362 -34% 405 496 566 -18% -28% Performance in 1H19 Outlook  Rev

  14. Slide 14: Micro-electromechanical systems (MEMS)

    Micro-electromechanical systems (MEMS) 1H19 1H18 1H19 YoY 2Q19 1Q19 2Q18 2Q19 QoQ 2Q19 YoY Revenue 380 344 11% 226 154 164 46% 37% GM 23.5% 19.4% +4 p.p. 26.9% 18.5% 21.0% +8 p.p. +6 p.p. Gross profit 89 67 34% 61 29 35 113% 76% Performance in 1H19  Revenue +10.5%YoY to RMB 380mn (5% of total sales

  15. Slide 15: Efforts on sustainability

    Efforts on sustainability  ESG Performance: comply with both HKEX ESG Reporting Guide and GRI Standards Core Option, also align with UN Sustainable Development Goals’ Specific Targets and commenced our alignment with recommendations from Taskforce on Climate-related Financial Disclosure  Conduct e

  16. Slide 16: Investors information

    Investors information STOCK CODE KEY DATES FOR SHAREHOLDERS 16 September 2019 2019 Interim Report available on the Company’s website The Stock Exchange of Hong Kong Limited: 11–18 September 2019 Book Closure Period for Interim Dividend 2018 Bloomberg: 2018: HK 18 September 2019 Record Date for Inter

  17. Slide 17: 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 — H1 2019 Earnings Presentation on 6ix