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EQS-News / 21/03/2017 / 18:11 UTC+8
*For Immediate Release*
/
*Tonly Electronics Holdings Limited
(Stock Code:01249)*
*Tonly Electronics Announces 2016 Annual Results*
*Continuous Turnover Improvement in Q1 to Q3 with 8.2% Growth in Q4*
** * * * * *
Implements Smart Transition Based on "Intelligence + Internet" Strategy*
(21 March 2017, Hong Kong) *Tonly Electronics Holdings Limited* ("Tonly
Electronics" or "the Group"; SEHK stock code: 01249) today announced its
annual results for the year ended 31 December 2016.
During the year under review, the Group recorded turnover of approximately
HK$4,265.7 million, a decline of 12.2% year-on-year (yoy). The decrease in
turnover for the first three quarters continued to narrow down and achieved
growth of 8.2% in the fourth quarter. By virtue of the Group's business
transformation, diversified product portfolio and competitive industrial
platform, the Group's gross margin and operating margin continued to achieve
steady growth. Gross margin rose by 1.5 p.p. yoy to 14% while operating
margin increased by 0.5 p.p. yoy to 4.5%. Net profit of the Group dropped by
9.5% yoy to HK$151.7 million. Profit attributable to owners of the parent
decreased by 8.8% yoy to approximately HK$151.8 million. The Board
recommends a final dividend of HK25.0 cents per share for the year ended 31
December 2016.
During the year under review, sales of the Group's audio products achieved
remarkable growth, turnover of the segment increased by 27.3% yoy to
HK$2,899.8 million. Benefited from strong market demand, soundbar and
headphone products achieved significant progress and gradually built up
overseas clientele. In the year under review, the Group successfully
launched audio products with voice interactive functions, demonstrating its
capabilities in innovative technologies, design and R&D of smart IoT
products.
For video product business, the traditional video disc player market was
under continuous market pressure, with turnover dropped by 50.3% yoy to
HK$1,159.8 million. The Group shifted its focus to ABS-s and set-top boxes
in overseas markets. Turnover of ABS-s rose by 35.7% yoy to HK$267.2 million
during the year under review. It also focused on the development of high end
set-top boxes in Europe as well as emerging markets such as India and
Africa, aiming to develop a more diversified product portfolio.
Smart business is one of the Group's future business highlights, providing a
full range of smart products of four categories - smart audio and video,
smart security, smart health and fitness as well as smart internet
management. The Group launched diversified products including smart door
locks, smart gateway and related products during the year under review, and
expanded into overseas markets such as the United States.
As a leading supplier of high-tech smart products, the Group has
successfully expanded its business to the IoT market and actively promote
cross-border cooperation. The Group strived to join hands with partners from
all aspects in the industry chain to explore cooperation opportunities in
the IoT market, laying a solid foundation for future business development.
During the year under review, turnover from the Group's smart products
amounted to approximately HK$17.0 million. With the increasing popularity of
smart life, the business segment will continue to grow and become one of the
Group's important sources of turnover and profit.
The Group continued to increase the proportion of automated equipment and
strengthened the stability of skilled workers to boost its per capita
production efficiency. The Group had completed phase one of Huizhou
production base extension and had put it into operation in the first quarter
of 2017. In terms of R&D and innovation, the Group's R&D expenses were
approximately HK$198.0 million in FY2016, accounting for 4.6% of its total
turnover.
Looking into 2017, *management of Tonly Electronics* says, "We will continue
to uphold the steady operation strategy. By leveraging on product innovation
and R&D capabilities, the Group will continue to strengthen its
capabilities, optimise product mix as well as introduce diversified products
to meet market demands and consumer preferences, in order to maintain our
competitiveness. The Group will implement smart transition based on
"Intelligence + Internet" and make every efforts in exploring the potential
of applications in combining smart technologies with IoT platform. We will
also strengthen the cooperation with strategic partners, in order to develop
the IoT market and grasp the enormous growth potentials. The management is
confident in our long term growth prospect."
- End -
*About Tonly Electronics*
Tonly Electronics Holdings Limited (stock code: 01249), a high-tech smart
products manufacturer with competitive industrial advantages, is principally
engaged in the research and development, manufacturing and sales of audio
and video products as well as wireless smart interconnectivity products. It
is also devleoping into smart business. The Group is committed to becoming a
one-stop smart audio loT solutions provider based on the electroacoustic and
wireless technologies. Its ultimate controlling shareholder is TCL
Corporation (a company listed on the Shenzhen Stock Exchange, Stock code
000100.SZ).
For more information, please visit its website at www.tonlyele.com [1].
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(END) Dow Jones Newswires
March 21, 2017 06:13 ET (10:13 GMT)
