Update | Apple supplier AAC posts record first-half earnings on smartphone industry upgrades

Shenzhen-based AAC Technologies expects optical business to become company’s next growth driver on demand from international and Chinese brands

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AAC Technologies managing director Richard Mok said on Friday that the company was gearing up to expand aggressively in the optics market segment. Photo: Jonathan Wong

Published: 2:45pm, 25 Aug 2017Updated: 7:04pm, 25 Aug 2017

AAC Technologies Holdings, a major supplier of miniature electronics components to Apple, Samsung Electronics and large Chinese mobile phone brands, posted record interim profit and revenue on the back of advanced hardware upgrades being undertaken across the global smartphone industry.

Managing director Richard Mok Joe-kuen said in a press conference on Friday that the company was gearing up to expand aggressively in the optics market segment, where Taiwan’s Largan Precision and Hong Kong-listed Sunny Optical Technology are large suppliers of camera modules and lenses.

“We need to position ourselves as an innovative technology leader,” Mok said.

Shenzhen-based AAC reported a 57 per cent jump in net profit to a new high of 2.1 billion yuan (US$315 million) for the six months ended June 30, up from 1.3 billion yuan in the same period last year, as operating expenses declined to 12.8 per cent from 14.7 per cent a year ago.

Total interim revenue rose 55 per cent to a record 8.6 billion yuan, compared with 5.6 billion yuan a year earlier, on strong sales at both its acoustic and non-acoustic component business segments.

AAC said its top five customers accounted for 89 per cent of its total revenue.

Its shares advanced 3.3 per cent to reach HK$123.30 at the close of trading in Hong Kong on Friday.