Tonly Announces Sales Revenue from Major Products for Third Quarter and First Three Quarters in 2019 (Unaudited)

HONG KONG, CHINA -�Media
OutReach - 14 October 2019 – Tonly Electronics Holdings
Limited (“Tonly Electronics” or “the Group”; SEHK stock code: 01249)
announced its unaudited sales revenue ended 30 September 2019 for its major
products. The following products do not encompass all of the Group’s
business and the information below does not completely reflect the Group’s
performance during the period under review.

Sales revenue of the major products of the Group
was approximately HK$2,405 million for the third quarter in 2019, increased by 2.2%
compared with the same period of last year. Sales revenue of the major products
of the Group in the first three quarters of the year was HK$5,849 million,
representing a 13.8% rise year-on-year (YoY). The growth was mainly
attributable to the Group’s ‘audio products’, ‘headphones’ and ‘ancillary
product’ business.

 

Audio product business has now become the major
business segment of the Group, especially in view of the growth of smart
speakers. Sales revenue for audio products for the third quarter in 2019 rose
by 1.6% YoY to approximately HK$1,949 million. While its sales revenue
increased by 13.2% YoY to HK$4,452 million in the first
three quarters of the year.

 

Sales revenue for headphones for the third quarter
in 2019 rose by 16% YoY to approximately HK$224 million. While its sales
revenue increased by 47.0% YoY to HK$645 million in the first three quarters of the year. The Group
will continue to enhance its technological development of True Wireless Stereo
(TWS) earphones and voice interaction function of earphones in order to
increase market share. TWS headsets has constanly delivered to customers in bulk
shipment.

 

Sales revenue of video products fell by 49.5% YoY
to approximately HK$43 million for the third quarter in 2019, and it recorded a
decrease of 48.2% YoY to HK$180 million in the first three quarters of the year. The fall
was mainly due to the general downturn of the video disc players market.

 

Sales revenue of IoT Related Products fell by 52.3%
YoY to approximately HK$19 million for the third quarter in 2019, and it
recorded a decrease of 18.9% YoY to HK$96 million in the first three quarters of the year. The decline was
mainly due to the impact of structure adjustments of products and customers. The Group will continue to expand
its product innovation capabilities, as well as to optimise its customer
structure and enhance its market competitiveness.

 

Benefited from the inclusion of component products
of Guangdong Regency Optics-Electron Corp, an subsidiary of the Group, into the
Group’s revenue of ancillary products since the first quarter of 2019, and the growth
of ancillary product business supplementary to the smart products business,
sales revenue of ancillary products rose by approximately 46.7% YoY to
approximately HK$170 million for the third quarter in 2019. Sales revenue of the
said products in the first three quarters of the year rose by 57.3%
YoY to HK$475 million.

  

Unaudited Sales Revenue(HK$’000)	2019 Q3	2018 Q3	Change YoY (%)	2019 3Qs	2018 3Qs	Change YoY (%)
Audio products(1)	1,949,370	1,918,964	1.6%	4,451,949	3,931,722	13.2%
Headphones	223,659	192,809	16.0%	645,133	438,940	47.0%
Video products(2)	42,868	84,940	-49.5%	179,945	347,327	-48.2%
IoT Related products(3)	18,734	39,283	-52.3%	96,412	118,906	-18.9%
Ancillary products(4)	169,939	115,864	46.7%	475,316	302,179	57.3%
Total	2,404,570	2,351,860	2.2%	5,848,755	5,139,074	13.8%

(1)   
Mainly include smart voice speakers, wireless
speakers, soundbars, home theatres, and mini speakers

(2)  
Mainly include DVD players, BD players, OTT set
top boxes (STB), and other products

(3)  
Mainly include smart plugs, smart gateways and
other IoT products

(4)   
Mainly include fabric covering for external
sales, plastic injection structural parts, speakers, wireless modules, and
other components

*Partial
IoT Related Products sales in 2018 were reclassified to Video products for the
reason of product form adjustment.

Note: The
above products do not encompass all of the Group’s business and the information
above does not completely reflect the performance of the Group during the
period under review. The above information is unaudited.

About Tonly Electronics

Tonly
Electronics Holdings Limited (SEHK 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
developing into smart business. The Group is committed to becoming a one-stop smart loT
solutions provider based on the electroacoustic and wireless technologies.

For more information,
please visit its website at www.tonlyele.com.