AAC Technologies Holdings Inc. — Earnings Release 2005

Apr 6, 2006

Listed Company Information

Listed Company Information
AAC ACOUSTIC<02018> - Results Announcement AAC Acoustic Technologies Holdings Inc. announced on 06/04/2006: (stock code: 02018 ) Year end date: 31/12/2005 Currency: RMB Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 31/12/2005 to 31/12/2004 Note ('000 ) ('000 ) Turnover : 1,073,744 626,847 Profit/(Loss) from Operations : 361,219 233,823 Finance cost : (7,627) (5,996) 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 : 332,859 197,653 % Change over Last Period : +68.4 % EPS/(LPS)-Basic (in dollars) : 0.3105 0.2068 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 332,859 197,653 Final Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 24/05/2006 to 29/05/2006 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: (1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS The Company was incorporated and registered as an exempted company with limited liability in the Cayman Islands under the Companies Law of the Cayman Islands. The Company 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 financial statements for the year ended 31st December, 2005 have been prepared in a manner consistent with pooling of interest. The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited 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''). The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards. The financial statements are presented in Renminbi (''RMB''), which is the same as the functional currency of the Company. (2) TURNOVER Turnover represents the net amounts received and receivable for goods sold by the Group to outside customers during the year. (3) BUSINESS AND GEOGRAPHICAL SEGMENTS Business segments The Group's operations are regarded as a single segment, engaged in the manufacture and sales of acoustic related products. Geographical segments The Group's operations are located in the United States of America ( "USA "), Asia and Europe. The following table provides an analysis of the Group's turnover by the location of customers, irrespective of the origin of the goods: 2005 2004 RMB'000 RMB'000 Turnover -USA 375,625 224,683 -Greater China 522,436 301,467 -Asia (excluding Greater China) 92,765 69,730 -Europe 82,918 30,967 ------------------------- 1,073,744 626,847 ========================= 2005 2004 RMB'000 RMB'000 Results: Profit from operations -USA 141,978 91,734 -Greater China 162,388 115,325 -Asia (excluding Greater China) 29,629 19,732 -Europe 27,224 7,032 ------------------------- 361,219 233,823 Finance costs (7,627) (5,996) ------------------------- Profit before taxation 353,592 227,827 Taxation (20,271) (29,484) ------------------------- Profit for the year 333,321 198,343 ========================= The following is an analysis of the Group's carrying amount of segment assets and liabilities analysed by the location of customers: 2005 2004 RMB'000 RMB'000 Segment assets -USA 303,203 263,245 -Greater China 394,199 434,288 -Asia (excluding Greater China) 71,276 95,288 -Europe 64,569 32,488 ------------------------- 833,247 825,309 Unallocated 958,674 - ------------------------- 1,791,921 825,309 ========================= Segment liabilities -USA 72,746 123,933 -Greater China 115,189 166,287 -Asia (excluding Greater China) 16,401 38,463 -Europe 16,888 17,081 ------------------------- 221,224 345,764 Unallocated 32,254 219,750 ------------------------- 253,478 565,514 ========================= Other information 2005 2004 RMB'000 RMB'000 Capital additions -USA 51,420 35,739 -Greater China 83,103 47,953 -Asia (excluding Greater China) 12,322 11,092 -Europe 16,352 4,925 ------------------------- 163,197 99,709 ========================= Depreciation -USA 8,986 8,340 -Greater China 17,743 11,191 -Asia (excluding Greater China) 2,176 2,588 -Europe 2,469 1,150 ------------------------- 31,374 23,269 ========================= The goods sold to various geographical markets were principally produced from the same production facilities located in Mainland China ( the "PRC "), therefore, analysis of assets and liabilities by location is not presented. (4) DIVIDENDS 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: Name of subsidiary 2005 2004 RMB'000 RMB'000 American Audio Components (Changzhou) Ltd. - 95,754 Changzhou Kaitai Machinery and Electronics Co., Ltd. - 6,555 Changzhou Weililai Electronic Acoustic Device Co., Ltd. - 10,872 YEC Electronics Limited - 1,476 ------------------------- - 114,657 ========================= (5) EARNINGS PER SHARE The calculation of the basic earnings per share for the year ended 31st December, 2005 is based on the profit for the year attributable to equity holders of the Company of RMB332,859,000 (2004 : RMB197,653,000) and on the weighted average number of ordinary shares of 1,071,998,107 (2004 : 955,996,860) shares in issue during the year 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 are presented for both years, as the conversion of redeemable convertible preferred shares would result in an increase in earnings per share.