Tonly Electronics Holdings Limited
Tonly Electronics’ Turnover Reaches Approximately HK$741.4 million for Q1 2016
For Immediate Release
Tonly Electronics’ Turnover Reaches Approximately HK$741.4 million for Q1 2016 * * * * * * Results Highlights:
(19 April 2016, Hong Kong) Tonly Electronics Holdings Limited (“Tonly Electronics” or “the Group”; SEHK stock code: 01249) today announced its unaudited first quarter results for three months ended 31 March 2016. For the three months ended 31 March 2016, the Group’s turnover amounted to approximately HK$741.1 million, dropped by 35.9% yoy. Gross profit decreased by 30.0% yoy to approximately HK$106.3 million, while gross profit margin widened from 13.1% in the same period last year to 14.3%. Operating profit fell by 24.9% yoy to approximately HK$37.3 million. Profit attributable to owners of the parent declined by 26.4% yoy to approximately HK$27.1 million. With the rapid development of the Internet and wireless technology, the market demand for smartphones, smart TVs and other new audio corresponding peripheral products is becoming huge. In response to the prevalent market trend, the Group has actively strengthened its R&D investments in new audio products to further develop single speaker and wireless speaker products to enhance the overall product competitiveness. During the period, one of the Group’s major customers underwent business restructuring which caused a significant drop in order amount of audio products, resulting in decline in segment revenue to HK$363.2 million, a decrease of 15.1% yoy. The turnover of new audio products increased by 1.9% yoy to approximately HK$214.4 million. With the growing popularity of tablet PCs and smartphones, the traditional DVD player market is under pressure. By strengthening software development capabilities and improving product design, the Group was able to enhance the competitiveness of its media box products. The Group established cooperation with foreign and domestic internet companies to develop communication operator business in order to promote its media box products sale. Sales volume of ABS-s products surged 252.6% yoy to HK$ 91.0 million. During the period, the cooperation model between the Group and one of its customers has changed, pursuant to which the customer provided the major materials for its orders. Although the business volume with this customer increased by a fairly substantial amount, sales volume decreased significantly. Sales revenue of the Group’s video disc player decreased by 50.3% yoy to HK$332.6 million in Q1 2016. In early January 2016, the Group launched three flagship product series: KiWi, KiWi Mini and KiWi Junior at the Global Consumer Electronics Tradeshow – Consumer Electronics Show (“CES”), which held in Las Vegas, the United States, providing solutions for users in three major aspects of security, health and fitness, and energy management. The products provide a wide-ranging package of services encompassing smart sockets, smart lighting and smart switches, with full coverage of convenience management, which allows users to enjoy the ultimate smart life experience everywhere. During the period, sales revenue generated from the Group’s smart home business was HK$5.3 million. Management of Tonly Electronics, stated “With the growing prevalence of internet and wireless technology, we will put great efforts in developing intelligent hardware business and focus on three major businesses, namely, video products, OTT and media boxes, as well as smart home business in the future. We will also strengthen the cooperation with strategic partners and broaden our customer base by optimizing our new product portfolio. Although business transformation will lead to short-term fluctuations or decline in the Group’s turnover this year, we will continue to explore new customers and pay more efforts to develop smart home products and other Internet-related products to improve overall profitability.” (1) Mainly include HTS and Micro & Mini, wireless speakers, soundbars, audio docks and headphones -End – For more information, please visit its website at www.tonlyele.com. For further information, please contact: Cornerstones Communications Ltd. End of Press Release +++++ Document: http://n.eqs.com/c/fncls.ssp?u=AAADLHTLII Document title: Eng Version Key word(s): Quarter Results
19/04/2016 Dissemination of a Press Release, transmitted by EQS TodayIR – a company of EQS Group AG. |