AAC Technologies' (2018) interim net profit nearly tripled to $921 million yuan (HK$1.11 billion) mainly due to the improvement in gross profit and reduction of R&D costs.
Its basic earnings per share was 76 fen and an interim dividend of 20 HK cents was declared.
Revenue of its acoustics business was $4.1 billion yuan, up 24.3 percent and the gross profit margin increased by 6.7 percentage points to 33 percent.
Income from the optics business in the period soared 137 percent to $1.5 billion yuan with a gross profit margin of 24.7 percent, rising 12.4 percentage points from a year ago.
Although the second quarter is a traditionally low season for the smartphone industry and global smartphone shipments saw a quarter-on-quarter decline, the supplier recorded a 0.6 percent growth in revenue during that time compared to the first quarter, it said.
But the company also stated that the pandemic affected the normal production of its Vietnam plant, leading to a lower capacity utilization rate in the second quarter. Chief financial officer Guo Dan added in the press conference that the production capacity in Vietnam only accounted for about 20 percent of the acoustics business, and local production had returned to normal in July, stressing that the impact to the company is "manageable."
