AAC warns of 90pc plunge in profit

Apple's component supplier AAC Technologies (2018) warned its first-quarter net profit may plunge as much as 90 percent from a year ago due to an extension of work suspension amid the coronavirus pandemic.

The company predicted it may record a net profit of between 43 million yuan (HK$47.2 million) and 63 million yuan for the first three months this year.

In addition to seasonal pricing pressure and reduction of revenue from dampened consumer sentiment for smartphones, the planned production activities had contracted severely after Chinese New Year and early-March due to the introduction of counter-epidemic restrictions, said the company.

The related contingency procedures and work resumption arrangements have also incurred costs and expenses, it said.

Meanwhile, camera module supplier Q Technology (1478) said the total sales volume of camera modules last month slid 6 percent from a year ago, dragged down by the control measures of the coronavirus pandemic.

Total sales volume amounted to 32.72 million units last month, growing 1.35 times from February, driven by the full resumption of the company's work and the seasonal sales rebound after the Chinese New Year holidays, said the company.

Q Tech said some direct labors could not participate in production immediately after arriving at the group, which impacted the output of production capacity and led to the year-on-year decrease in camera module sales last month.

In other corporate news, automobile maker BYD (1211) announced its vehicle sales slumped by 35 percent year-on-year to 30,600 units in March, with new energy vehicle sales also falling 59 percent to 12,300 units.

For the first quarter this year, vehicle sales dropped by 48 percent from a year ago to around 61,000 units while NEV sales plunged by 70 percent to 22,000 units.