HONG KONG, CHINA - MediaOutReach - 14 October 2019 - Tonly Electronics HoldingsLimited ("Tonly Electronics" or "the Group"; SEHK stock code: 01249)announced its unaudited sales revenue ended 30 September 2019 for its majorproducts. The following products do not encompass all of the Group'sbusiness and the information below does not completely reflect the Group'sperformance during the period under review.

Sales revenue of the major products of the Groupwas 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 productsof 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 mainlyattributable to the Group's 'audio products', 'headphones' and 'ancillaryproduct' business.

Audio product business has now become the majorbusiness segment of the Group, especially in view of the growth of smartspeakers. Sales revenue for audio products for the third quarter in 2019 roseby 1.6% YoY to approximately HK$1,949 million. While its sales revenueincreased by 13.2% YoY to HK$4,452 million in the firstthree quarters of the year.

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

Sales revenue of video products fell by 49.5% YoYto approximately HK$43 million for the third quarter in 2019, and it recorded adecrease of 48.2% YoY to HK$180 million in the first three quarters of the year. The fallwas 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 itrecorded a decrease of 18.9% YoY to HK$96 million in the first three quarters of the year. The decline wasmainly due to the impact of structure adjustments of products and customers. The Group will continue to expandits product innovation capabilities, as well as to optimise its customerstructure and enhance its market competitiveness.

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

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

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

(3)  Mainly include smart plugs, smart gateways andother IoT products

(4)   Mainly include fabric covering for externalsales, plastic injection structural parts, speakers, wireless modules, andother components

*PartialIoT Related Products sales in 2018 were reclassified to Video products for thereason of product form adjustment.

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

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 www.tonlyele.com.