Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
© melpomenem dreamstime.com Business | February 26, 2019

Apple supplier AAC Tech issues profit warning

Acoustic component manufacturer and Apple supplier, AAC Technologies Holdings Inc., says that based on a preliminary assessment that the company expects first quarter net profit to fall as much as 75% compared to the same period last year.
The company’s says in a statement that it wishes to inform its shareholders and potential investors that the unaudited consolidated profit attributable to the shareholders for the three months ending 31 March 2019 (Q1 2019) is expected to decline to a range of RMB 280 million (EUR 36.79 million) and RMB 390 million (EUR 38.12 million), which would represent a decline of approximately 65% to 75% as compared the first quarter of 2018. “In addition to a usual weak seasonal quarter, the Company’s revenue for Q1 2019 is expected to be significantly negatively affected by reduced orders from customers. The resulting product composition due to transition stage and contracting production volume is expected to adversely impact Q1 2019’s gross profit margin, and thus net profit,” the statement reads. AAC Tech expects product and specs upgrades in customers’ forthcoming new smartphone models throughout the year and that its profitability will improve through improvement of new products portfolio, enhancement of production utilisation and efficiency, as well as constant cost controls.
Load more news
March 21 2019 3:37 pm V12.5.12-1