Tonly Electronics’ Audio-visual Product Sales Revenue for the First Seven Months of 2014 Amounted to HK$2,505 Million

HONG KONG, Aug. 13, 2014 /PRNewswire/ — Tonly Electronics Holdings Limited (“Tonly Electronics” or “the Group”; SEHK stock code: 01249) announces its unaudited monthly sales performance in July and for the first seven months of 2014. The below products do not cover all the business of the Group and the below figures do not fully reflect the business performance of the Group in the mentioned period.

In July 2014, the Group recorded monthly revenue of HK$421.2 million from AV products, up 27.5% year-on-year. For the first seven months of 2014, the Group recorded revenue of HK$2,505 million from audio-visual (“AV”) products, up 37.9% year-on-year.

The unaudited monthly sales revenue for video disc players decreased by 6.5% to HK$195.6 million in July, and that for the first seven months of 2014 increased by 0.9% year-on-year to HK$1,149.4 million.

The unaudited monthly sales revenue for audio products grew by 39.2% year-on-year to HK$164.9 million in July 2014 and that for the first seven months of 2014 increased by 36.0% year-on-year to HK$905.6 million

The unaudited monthly sales revenue for media boxes business surged by 2,118.9% year-on-year to HK$60.8 million in July 2014 and that for the first seven months of 2014 increased by 3,650.2% year-on-year to HK$450.1 million.

The Group has been on the right track in developing a diversified product portfolio with the new audio product business, which continues its strong momentum, and the media boxes business, which was driven by the internet-based transition of consumer’s lifestyle as the focus. It will continue to actively engage in research and development of electroacoustic and developed high quality drivers and speakers in-house to enhance its vertical integration capabilities and hence the competitiveness of its audio products.

Unaudited Sales
Revenue (HK$’000)

July-14

July-13

YoY Change

(%)

Jan-July 14

Jan-July 13

YoY Change

(%)

Video disc players

195,604

209,255

-6.5%

1,149,360

1,138,555

0.9%

Audio Products #

— Traditional audio products

96,650

25,273

282.4%

488,159

464,842

5.0%

— ­New audio products

68,228

93,191

-26.8%

417,395

200,996

107.7%

Subtotal

164,878

118,464

39.2%

905,554

665,838

36.0%

Media boxes *

60,753

2,738

2,118.9%

450,134

12,003

3,650.2%

Total

421,235

330,457

27.5%

2,505,048

1,816,396

37.9%

* Media boxes includes OTT, which was categorized as video products in the previous press releases or result announcements.
#Certain traditional audio products have been upgraded to new audio products, and revenue from the sales of such upgraded audio products for 2013 has been reclassified and restated accordingly.

Note: The above products do not cover all the business of the Group and the above figures do not fully reflect the business performance of the Group in the abovementioned period.

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140813/8521404572-a

About Tonly Electronics

Tonly Electronics Holdings Limited (stock code: 01249) is a leading vertically-integrated manufacturing services provider in the audio-visual (“AV”) products. It is also is the largest video products manufacturer and the fourth largest HTS manufacturer in the world, and is principally engaged in the research and development, manufacturing and sales of audio-visual products (excluding TV sets) for international brands on an ODM basis. Tonly Electronics is also one of the ABS-s manufacturers under the programmes of  “Hu Hu Tong” and “Cun Cun Tong” initiated by The State Administration of Radio, Film, and Television (“SARFT”). Its ultimate controlling shareholder is TCL Corporation (a company listed on the Shenzhen Stock Exchange, Stock code 000100.SZ) .

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

Frost & Sullivan: Automotive OEMs Focus on Ride and Handling Improvements in Driveline Systems

– Major manufacturers look to optimise driveline size and driveline disconnect to neutralise market challenges

LONDON, Aug. 13, 2014 /PRNewswire/ — Consumer demand for improved performance and handling is pushing automotive original equipment manufacturers (OEMs) in Europe and North America to deliver reliability and durability in their products. As a result, driveline systems are expected to undergo advancements in favour of ride and safety as well as mass reduction and enhanced fuel efficiency.

New analysis from Frost & Sullivan, Key Focus Areas for Driveline Systems in Europe and North America, which covers front-wheel drive (FWD)-based all-wheel drive (AWD) disconnect systems, true torque vectoring systems, electronic limited slip differential systems (eLSD), and power transfer units (PTUs), finds that these technologies will remain the most important parameter defining OEMs’ driveline system strategies.

For instance, with the passenger car market for AWD systems curbed by soaring fuel prices and dynamic consumer needs, eLSD could potentially replace conventional AWD systems. Although implementing disconnects on to the transfer-case within a target cost range has proved feasible, OEMs are struggling to achieve similar cost strategies for FWD-based AWD systems.

“Major OEMs worldwide, including premium participants such as Audi, BMW and Daimler, will adopt driveline rightsizing and driveline disconnect strategies to counteract this challenge,” says Frost & Sullivan Automotive and Transportation Research Analyst Vikram Chandrasekar. “Establishing OEM-supplier partnerships will be vital to optimise the size of driveline components based on customer usage profiles.”

Certain OEMs are likely to reduce driveline torque and design right-sized on-demand driveline systems, rather than installing FWD driveline disconnects, to sidestep the additional cost. Active on-demand systems will also cut energy losses and attract discerning customers looking for better driving dynamics and stability.

Apart from decreasing costs, OEMs and suppliers must focus on drag torque reduction. To that end, all OEMs in North America and Europe will move to single-stage PTUs to attain cost as well as efficiency benefits.

“Overall, various OEMs will follow different strategies to tackle carbon dioxide emission regulations, meet increasing fuel economy demands, and achieve economies of scale,” opines Chandrasekar. “However, lightweight construction of vehicles and elimination of unnecessary components will become increasingly important for both luxury and mass-market OEMs in North America and Europe.”

If you are interested in more information on this study, please send an e-mail to Julian Borchert, Corporate Communications, at Julian.Borchert@frost.com.

Key Focus Areas for Driveline Systems in Europe and North America is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: European Usage-based Insurance Market for Passenger and Commercial Vehicles, Commercial Vehicles 2020 Vision, European and North American Market for Automated Driving, and European Market for Vehicle-to-vehicle and Vehicle-to-infrastructure Communication Systems. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Key Focus Areas for Driveline Systems in Europe and North America
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Corporate Communications — Europe
P: +49-(0)-69-770-33-43
E: Julian.Borchert@frost.com

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Storage Acceleration: An Online Community Dedicated to Helping IT Executives Implement New Storage Methods

–UBM Tech’s Storage Acceleration will focus on how concepts such as solid-state storage, software-defined storage, and object storage can boost enterprise application performance and IT efficiency.

NEW YORK, Aug. 13, 2014 /PRNewswire/ — UBM Tech today launched Storage Acceleration (www.storageacceleration.com), an online community for chief information officers, other senior IT executives, and the business unit leaders who are deeply involved in enterprise initiatives that employ evolving data storage technologies to improve application performance and more efficiently achieve corporate goals.

The Storage Acceleration community, comprising expert bloggers, UBM Tech editors, IT and business executives, and site sponsor SanDisk, presents an opportunity for community members to share their experiences, advice, and opinions with their peers. The community will address strategies for the successful use of technologies and concepts that are positioned to revolutionize the enterprise data storage environment. Core topics that are top of mind for IT decision makers include the use of solid-state or flash storage to improve application performance, the potential for SSD to replace hard disk and tape technologies for various datacenter tasks, new applications for virtualized storage, emerging capabilities for storage management tools, software-defined storage, cloud-based storage, disaster recovery, IT security, and storage/datacenter technologies that are only now emerging from research laboratories.

At the heart of the Storage Acceleration community is the ability for IT decision makers to seek out the advice and opinions of their peers. Storage Acceleration will feature daily blogs and active message boards where community members can seek information from bloggers and their peers in the IT profession. Other information features will include live chats and webcasts about technical, managerial, and organizational issues that engage enterprise datacenter professionals implementing big-data initiatives, high-performance transactional applications, and customer-facing web and e-commerce applications.

Experienced technology journalist James Connolly has been named editor in chief. In a 30-year career as a technology editor and writer, he has chronicled the use of technology at the enterprise level, IT management, and emerging technologies. His experience includes work with UBM Tech’s Marketing Services unit, TechTarget, Mass High Tech, and Computerworld.  

“This is an exciting time to be working in the storage sector,” says Connolly. “There probably has been no other era in the history of computing where so many tech developments and management concepts have come together to create tectonic shifts in the storage business and enterprise storage strategies. Consider just the rapid growth of enterprise interest in SSD for the datacenter over the past few months, and then add in all of the other tech trends, and you can see how IT decision makers see both opportunities and challenges in the storage revolution. Our job is to provide a forum where we can track the multiple developments in the storage market, learn from peers who have shared their experiences in implementing some of the new concepts, and seek out advice from hands-on consultants, technology providers, and their peers in the IT community.”

The site is published by UBM Tech and sponsored by SanDisk.

Click here to access Storage Acceleration: www.storageacceleration.com.

Contact
James Connolly
Editor in Chief
UBM Tech
(781) 375-7684
jim.connolly@ubm.com

About UBM Tech
UBM Tech is a global media business that brings together the world’s technology communities through live events, online properties, and custom services. UBM Tech’s community-focused approach provides its users and clients with expertly curated research, education, training, community advocacy, user-generated content, and peer-to-peer engagement opportunities that serve the electronics, security, enterprise IT and communications, network infrastructure and applications, game and app development, and tech marketing communities. UBM Tech’s brands include Black Hat, DesignCon, EE Times, Enterprise Connect, Game Developers Conference (GDC), HDI, InformationWeek, and Interop. Create, a UBM Tech full-range marketing services division, includes custom events, content marketing solutions, community development, and demand generation programs based on its content and technology market expertise. UBM Tech is a part of UBM (UBM.L), a global provider of media and information services with a market capitalization of more than $2.5 billion. For more information, go to http://tech.ubm.com.

Tonly Electronics’ Profit Attributable to Owners of the Parent Increased by 16.1% Year-on-year to Approximately HK$72 Million for the First Half of 2014

Further optimized product structure

New audio and media box products become the key business drivers in future

HONG KONG, Aug. 13, 2014 /PRNewswire/ — 

Results Highlights:

  • For the first half of 2014, the Group’s turnover increased by 21.9% year-on-year (“yoy”) to approximately HK$2,380 million, due to the better-than-expected performance of the video disc player business.
    • The sales revenue of video products reached approximately HK$953.8 million, up 2.6% yoy;
    • The sales revenue of audio products reached approximately HK$740.7 million, up 35.3% yoy;
    • The sales revenue of media box products reached approximately HK$389.4 million, up 4,102.7% yoy, and
    • The sales revenue of other products (mainly advanced broadcasting system-satellite receivers (“ABS-s”) products) reached approximately HK$295.8 million, representing a decrease of 36.7% yoy.
  • Operating profit declined by 1.5% yoy to approximately HK$97.1 million. Net profit for the period under review grew by 6.2% yoy to approximately HK$82.6 million.
  • Profit attributable to owners of the parent reached approximately HK$72 million, representing an increase of 16.1% yoy, which is due to the better-than-expected revenue of the video disc player business and the accounting implication contributed by the Group’s acquisition of the remaining 20% equity interests of the subsidiary Tonly Group Electronics Co., Ltd on 15 May 2014.
  • The Group further optimized its product structure. Sales of new audio and media box products grew significantly, which had become the key business drivers of the Group.
  • Production efficiency has recovered to a reasonable industry level since May this year, contributing to better production efficiency for the future.

Tonly Electronics Holdings Limited (“Tonly Electronics” or “the Group”; SEHK stock code: 01249) today announced its unaudited interim results for the six months ended 30 June 2014.

The Group continued to transform and upgrade our businesses and expand its product portfolio, and entered the OTT (over-the-top) business in early 2014. For the six months ended 30 June 2014, the Group recorded a turnover of approximately HK$2,380 million, up by 21.9% yoy.  The operating efficiency was once dropped in last third quarter, due to the research and new product launch and relocation of its production facilities to a new production plant during the peak season. After several-month adjustment and reforming the labour structure, the Group’s operational efficiency has been recovering to a reasonable level since May 2014. Gross profit amounted to approximately HK$289 million, up by 14.2% yoy. Gross profit margin declined to 12.1% from 12.9% of the corresponding period of 2013, because of the operating efficiency in the recovery during the first and early second quarter and shifting of certain business segments to OEM formats, which commend relatively lower gross profit margin and operating margin compared to ODM business. Operating profit decreased by 1.5% yoy to approximately HK$97.1million. Net profit reached approximately HK$82.6 million, up by 6.2% yoy. Thanks to the better-than-expected sales of video disc players and the accounting effect due to the Group’s acquisition of the remaining 20% equity interests of the subsidiary Tonly Group Electronics Co., Ltd. On 15 May 2014, the profit attributable to owners of the parent reached approximately HK$72 million, representing an increase of 16.1% yoy. Basic earnings per share were 51.10 HK cents (1H2013: 46.57 HK cents).

During the period under review, the performance of the video disc player business was better-than-expected. Revenue from the Group’s video disc player business increased by 2.6% yoy to approximately HK$953.8 million, mainly due to the gradual withdrawal of certain competitors and leveraging in full its edges in technology, production, supply chain and customer relations, helped maintain the Group’s competitiveness.

The Group has always been actively strengthening research efforts in the audio and electroacoustic fields and develops new types of innovative audio products, in order to enhance the overall design capability and production effectiveness to accommodate market demand and development trends better. During the period under review, the Group saw the business segment’s revenue rose by 35.3% yoy to approximately HK$740.7 million, accounting for 31.1% of the Group’s turnover. In particular, sales of new types of audio products continue to rise rapidly by 233.9% yoy to approximately HK$349.2 million.

To capitalize on the development of Internet technologies, the Group teamed up with domestic and foreign Internet and telecommunications companies to jointly develop the media box business with an aim to enriching and expanding its product portfolio. The business segment’s revenue for the first six months of 2014 surged 4,102.7% yoy to approximately HK$389.4 million, accounting for 16.4% of the Group’s turnover. The Group will enhance the competitiveness of its products by strengthening its software development capabilities and improving product design. Meanwhile, it will expand the customer base for this business segment and strengthen relationships with the customers. The Group expects that the media box business will become an important component of its businesses.

The sales of other business declined by 36.7% yoy to approximately HK$295.8 million, accounting for 12.4% of the Group’s turnover. Since part of the government tenders of ABS-s in the first half of 2014 has postponed to the second half of the year, as a results, sales of the Group’s ABS-s products for the first six months of 2014 declined 49.5% yoy to approximately HK$188.2 million.

For production and supply chain management, the Group is gradually improving its labour structure and retaining more skillful staff, which has seen the per capita productivity improve significantly. It also started to adopt more automation in its production in the first quarter and has commenced tests on automation in response to the tightening labor supply in China. The actual production capacity of Huizhou Production Base has gradually stabilized at designed production capacity level. Production efficiency has recovered to a reasonable industry level since May this year. Although the Group has seen its new plant officially commenced production in July 2013, in order to meet its future business needs and further improve its production efficiency, the Group has identified a suitable land parcel and is planning to build new plant facilities to expand the production capacity. For its R&D, the Group appropriated about 4.2% of its total revenue during the period. The Group’s R&D expenses as a percentage of turnover was much higher than the industry average.

Mr. Yu Guang Hui , Chief Executive Officer of Tonly Electronics, said, “Looking ahead, the Group will seek to get through bottlenecks on its business growth by actively expanding its production capacity and increasing its production efficiency, while promoting its media boxes business by deepening cooperation with domestic and foreign Internet and telecommunications companies. Meanwhile, the Group will attempt to tap other fields of business by organic or acquisition expansion in order to seek further growths in its business segments and revenues. In addition, the Group will endeavor more efforts in strengthening its integrated production capabilities, especially development of electro-acoustic technologies which will take the Group to the high-end category, and improve the Group’s profitability for the future. The Group will continue to strengthen its leading position in the global audio-visual market, as well as create maximum value for the customers and shareholders.”

The sales of the Group by products are set forth as follows:

1H 2014

1H 2013

Change

(HK$’000)

(HK$’000)

Video disc players(1)

953,756

929,300

+2.6%

Audio products

– Traditional audio products(2)

391,509

439,569

-10.9%

– New audio products(3)

349,167

107,805

+223.9%

Subtotal

740,676

547,374

+35.3%

Media box products(4)

389,381

9,265

+4,102.7%

Other products

– ABS-s product

188,213

372,972

-49.5%

– Components

59,840

62,357

-4.0%

– R&D income

47,730

31,623

+50.9%

Subtotal

295,783

466,952

-36.7%

Total

2,379,596

1,952,891

+21.8%

(1)       Mainly DVD players and BD players
(2)       Mainly HTS and Micro & Mini speakers
(3)       Mainly wireless speakers, soundbars and audio docks
(4)       Mainly OTT (provision of over-the-top Internet service and contents)

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140813/8521404571-a

About Tonly Electronics

Tonly Electronics Holdings Limited (stock code: 01249) is a leading vertically-integrated manufacturing services provider in the audio-visual (“AV”) products. It is the largest video products manufacturer and the fourth largest HTS manufacturer in the world, and is principally engaged in the research and development, manufacturing and sales of audio-visual products (excluding TV sets) and media box products for international brands on an ODM basis. Tonly Electronics is also one of the ABS-s manufacturers under the programmes of “Hu Hu Tong” and “Cun Cun Tong” initiated by The State Administration of Radio, Film, and Television (“SARFT”). Its ultimate controlling shareholder is TCL Corporation. For more information, please visit www.tonlyele.com.