AAC Technologies Holdings Inc. — Earnings Release 2005

Sep 5, 2005

Listed Company Information

Listed Company Information
AAC ACOUSTIC<02018> - Results Announcement AAC Acoustic Technologies Holdings Inc. announced on 05/09/2005: (stock code: 02018 ) Year end date: 31/12/2005 Currency: RMB Auditors' Report: N/A Interim report reviewed by: Both Audit Committee and Auditors (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 30/06/2005 to 30/06/2004 Note ('000 ) ('000 ) Turnover : 436,331 285,331 Profit/(Loss) from Operations : 148,665 107,086 Finance cost : (5,525) (2,106) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 133,195 93,174 % Change over Last Period : +43 % EPS/(LPS)-Basic (in dollars) : 0.1393 0.0975 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 133,195 93,174 Interim Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1) Basis of preparation The condensed financial statements have been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the International Accounting Standard ("IAS") 34 "Interim financial reporting". The Company was incorporated and registered as an exempted company in the Cayman Islands under the Companies Law of the Cayman Islands on 4th December, 2003 and acts as an investment holding company. Through a group reorganisation to rationalise the structure of the Company and its subsidiaries (hereinafter collectively referred to as the "Group") in preparation for the listing of the Company's shares (the "Group Reorganisation"), the Company became the ultimate holding company of the Group. The Group resulting from the Group Reorganisation is regarded as a continuing entity. Accordingly, the condensed financial statements have been prepared using the principles of merger accounting. The Company's shares were listed on the Main Board of the Stock Exchange on 9th August, 2005. Details of the Group Reorganisation are set out in Appendix V of the prospectus of the Company dated 28th July, 2005 (the " Prospectus"). 2) Turnover Turnover represents the net amounts received and receivable for goods sold by the Group to outside customers during the period. Business segments The Group's operation is regarded as a single segment, engaged in the manufacture and sales of acoustic related products. Geographical segments The Group's primary format for reporting segment information is geographical segments. 1.1.2005 1.1.2004 to to 30.6.2005 30.6.2004 RMB'000 RMB'000 Turnover United States of America 130,535 113,302 Greater China 233,936 137,231 Asia (excluding Greater China) 46,901 16,283 Europe 24,959 18,515 ---------- ---------- 436,331 285,331 ========== ========== Results Profit from operations - United States of America 48,319 50,135 - Greater China 77,297 46,531 - Asia (excluding Greater China) 15,226 3,611 - Europe 7,823 6,809 ---------- ---------- 148,665 107,086 Finance costs (5,525) (2,106) ---------- ---------- Profit before taxation 143,140 104,980 Taxation (9,483) (11,381) ---------- ---------- Net profit for the period 133,657 93,599 ---------- ---------- 3) Earnings per share The calculation of the basic earnings per share for the six months ended 30th June, 2005 is based on the net profit for the period attributable to equity holders of the Company of RMB133,195,000 (2004: RMB93,174,000) and on the 955,996,860 shares in issue during the period on the assumption that the Group Reorganisation and the capitalisation issue, as more fully described in Appendix V of the Prospectus, have been effective on 1st January, 2004. No diluted earnings per share is presented as assuming the conversion of redeemable convertible preferred shares would result in an increase in earnings per share. 4) Dividend No dividends have been paid or declared by the Company since its incorporation. However, in 2004, the following companies declared dividends to their then shareholders or owners prior to the Group Reorganisation: 1.1.2005 1.1.2004 to to Name of subsidiary 30.6.2005 30.6.2004 RMB'000 RMB'000 American Audio Components (Changzhou) Ltd. - 95,754 Changzhou Kaitai Machinery Electronics Co., Ltd. - 6,555 Changzhou Weililai Electronics Acoustic Device Co., Ltd. - 10,872 YEC Electronics Limited - 1,476 ---------- --------- - 114,657 ========== =========