Tonly Announces Sales Revenue from Major Products for First Quarter in 2020 (Unaudited)

HONG KONG, CHINA – Media OutReach – 15
April 2020 – Tonly Electronics
Holdings Limited (“Tonly Electronics” or “the Group”; SEHK stock code:
01249) announced its unaudited sales
revenue ended 31 March 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.

In the first quarter in 2020, the Group was affected by reasons of
postponed resumption of work due to the epidemic, the gradual return of employees and quarantine arrangements, and postponement of full resumption of work of some suppliers, resulting
in sales revenue of the major products of the Group amounting to approximately
HK$1,478 million, decreased
by 4.1% compared with the same period of last year. The company has fully
resumed work while production and operation are normal.

Sales revenue for audio products for the first quarter in 2020 fell by 2.4% YoY to approximately HK$1,057million. The fall was mainly due to the delayed shipments because of the epidemic.

Sales revenue for headphones for the first quarter in 2020 fell by 22.8% YoY to approximately HK$153 million. The Group will continue to enhance
its technological development of True Wireless Stereo (TWS) earphones,
mid-to-high-end earphones products, Active Noise Cancellation (ANC) earphones
and voice interaction function in order to increase market share.

Sales revenue of video
products fell by 4.3% YoY to approximately HK$53 million for the first quarter
in 2020. The fall was mainly due to the general downturn of the video disc
players market.

Sales revenue of IoT Related
Products decreased by 26.2% YoY to approximately HK$30 million for the first
quarter in 2020. The Group will further expand its efforts in independent
R&D and technological innovation, as well as to optimise its customer
structure and enhance its market competitiveness.

Sales revenue
of ancillary products rose by 13.1% YoY to approximately HK$186 million for the first quarter in 2020. The growth of ancillary product business supplementary to the smart products
business.

However, the epidemic
has spread around the world since March 2020, especially in Europe and America which
is the Company’ major market, there will be significant adverse effects on the
Company’s business in second quarter if the European and American markets slump
or the countries implement closure of business premises in view of the impact
of the epidemic.

 

Unaudited Sales Revenue(HK$’000)	2020 Q1	2019 Q1	Change YoY (%)
Audio Products(1)	1,056,533	1,082,817	-2.4%
Headphones	152,840	197,862	-22.8%
Video products(2)	52,844	55,217	-4.3%
IoT Related Products(3)	29,891	40,527	-26.2%
Ancillary products(4)	186,370	164,712	13.1%
Total	1,478,478	1,541,135	-4.1%

(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

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.