Tonly Electronics Announces 2019 Interim Results

August 14, 2019 - 18:00
Tonly Electronics Announces 2019 Interim Results

Turnover Increases by 25.6% to Over HK$3.5 Billion


Outstanding Performance in the Three Pillar Businesses

Refined Production Layout and Efficiency

Gross Profit Grew by 33.7% to HK$ 457 million with an Increased GrossProfit Margin of 13%

ResultsHighlights (For the six months ended 30 June 2019)


Turnover (1)

1H 2019


1H 2018


Change (%)  

Audio products (2)








Video Products (3)




IoT Related Products (4)




Ancillary Products (5)




Other Businesses








(1)       The turnover breakdown by product for the six months ended 30 June 2018 were revised for the product form adjustment

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

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

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

(5)       Mainly include fabric covering for external sales, plastic injection structural parts, speakers, wireless modules, and other components. The ancillary products of Regency Optics-Electron, a subsidiary of the Group, began to be consolidated into the revenue of ancillary products of the Group in the first quarter of 2019


  • Gross profit increased 33.7% year-on-year to approximately HK$ 457.2 million; gross profit margin increased to 13.0% comparing to the same period last year.
  • Profit attributable to the owners of the holding company increase 15.1% year-on-year to HK$ 98.3 million, attributable to the increase in turnover and gross profit margin.
  • The revenue of audio products increased 24.3% year-on-year to HK$2,502.6 million, among which smart speakers grew rapidly.
  • The headphone business grew considerably by 71.2% year-on-year to HK$421.5 million. The True Wireless Stereo (TWS) earphones achieved a breakthrough from zero and realised wholesale shipment in the first half of the year.
  • Benefiting from the overall market growth and entering into the supply chain of an overseas mainstream internet corporation, the ancillary products contributed a revenue of HK$304.9 million to the Group, representing a year-on-year increase of 63.6%.

HONG KONG, CHINA - Media OutReach - 14 August 2019 - TonlyElectronics Holdings Limited ("Tonly Electronics" or "the Group"; SEHKstock code: 01249) today announced its unaudited interim results for the six months ended 30 June2019 ("the period under review").


During the period under review, the Group recorded a turnover ofapproximately HK$3,518.2 million, up by 25.6% year-on-year. Gross profitincreased by 33.7% year-on-year to approximately HK$457.2 million. Operatingprofit rose by 14.2% year-on-year to approximately HK$133.0 million. Profitattributable to the owners of the holding company climbed by 15.1% year-on-yearto approximately HK$98.3 million. Attributed to the improvement of productionlayout and efficiency, the gross profit margin of the Group in the period underreview increased to 13.0% comparing to the same period last year.


Benefiting from the rapid growth in the global market ofsmart products and the Group's advantage in product technology, the Group'saudio product business recorded a revenue of HK$2,502.6 million, representing ayear-on-year increase of 24.3%. The new audio business maintained its advantagein scale, and maintained a relatively rapid growth together with the smartaudio speaker business. In the period under review, the revenue of headphonesincreased by 71.2% year-on-year to HK$421.5 million, reinforcing the Group'sleading position in the headphone industry and securing more new customers. TrueWireless Stereo (TWS) earphone business also achieved a breakthrough andstrengthened its competitiveness. For the ancillary product business, benefitingfrom the overall market growth and entering into the supply chain of anoverseas mainstream internet corporation, the ancillary products contributed arevenue of HK$304.9 million to the Group, representing a year-on-year increaseof 63.6%.


During the period under review, the Group continuouslyenhanced its capabilities in speaker units and structural components,especially the new structural parts related to precision moulding in order toreinforce its vertical integration capability of the supply chain. Leveragingon its extensive experience in professional electro-acoustic design and pioneeradvantages in smart speakers, the Group constantly innovates in productdevelopment. During the period under review, the Group's product research and development(R&D) expenses amounted to HK$169.5 million, accounting for 4.8% of itstotal revenue. The R&D team is devoted to introducing news productsepitomised by smart voice speakers in response to consumers' specificrequirements, as well as developing screening-equipped smart products centringsmart voice and all kinds of smart voice eco-ancillary products to secure morenew customers and explore new fields.


The Group also continuously refines its production and supply chainmanagement. The Group used Huizhou Zhongkai as a core base and moulding centreintegrating research, production and sales. Phase Two of Seaond Plant on landparcel No.42 commenced operation in March 2019, enhancing the overallproduction management and efficiency, as well as reducing external fees. The Group'sHuizhou Puli Electroacoustics Tongqiao Industrial Park was also put intooperation, foriming a comprehensive industrial chain integrating carpentry,speaker assembly, high-end wooden boxes, speakers, and plastic injection. Inorfer to enhance the overseas supply chain capability and to proactivelyrespond to the potential impact of the U.S. tariff, the Group set up asubsidiary in Vietnam in the first half of the year, and plans to establish itsown overseas plant which was strived to commence operation in the second halfof 2020 to realise the overseas extension of the Group's vertical integrationcapability of the supply chain.


The management of TonlyElectronics stated: "The smart product industry is likely tomaintain a relatively rapid growth amid the sluggish global economy. The Groupstrives to provide brand companies and customers with outstanding qualityproducts and services by expanding new businesses, exploring new technologiesand products, and enhancing its productivity. As the smart and ancillaryproduct business is becoming more mature, we believe the smart products,headphones and ancillary products of the Group will account for an increasingproportion to its turnover in 2019, contributing to a strong business growth inthe future. Meanwhile, more intense market competition can be foreseen alongwith the continuous development of smart audio products. In face of the variousrisks and opportunities, the Group will keep on looking for business expansionopportunities, which, coupled with its own strengths, will enlarge its businessportfolio, enhance the long-tern value of the Group, and proactively generatemore return for its shareholders."

About Tonly Electronics

TonlyElectronics Holdings Limited (SEHK stock code: 01249), a high-tech smartproducts manufacturer with competitive industrial advantages, is principallyengaged in the research and development, manufacturing and sales of audio andvideo products as well as wireless smart interconnectivity products. It is alsodeveloping into smart business. The Group is committed to becoming a one-stop smart loTsolutions provider based on the electroacoustic and wireless technologies.

For more information,please visit its website at