Tonly Electronics : 2017 Fourth Quarter and full year Sales Revenue from Major Products

For Immediate Release

Tonly Electronics Holdings Limited

(Stock Code：01249)

Tonly Announces Sales Revenue from Major Products for Fourth Quarter and Full

Year in 2017 (Unaudited)

(10 January 2018, Hong Kong) Tonly Electronics Holdings Limited ("Tonly Electronics" or "the Group"; SEHK stock code: 01249) announced its unaudited sales revenue ended 31 December 2017 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 HK$2,192 million for the fourth quarter in 2017, increased by 75.05% compared with the same period of last year. Sales revenue of the major products of the Group for the full year was HK$5,732 million, representing a 40.61% rise year-on- year (YoY). The growth was mainly attributable to the Group's 'new audio' and 'intelligent ancillary products' business.

Sales revenue for audio products for the fourth quarter in 2017 rose by 87.35% YoY to HK$1,728 million, while its sales revenue increased by 59.70% YoY to HK$4,537 million for the full year. The increase was mainly attributable to the overall growth of new audio products such as wireless bluetooth speakers, soundbar, and headphones.

Sales revenue of video products fell by 45.36% YoY to HK$145 million for the fourth quarter in 2017, and it recorded a decrease of 36.97% to HK$731 million for the full year in 2017. The fall was mainly due to the general downturn of the video disc players business, and the Group's shutdown of overseas set top box business.

The business of intelligent ancillary products enter into mass production. Its sales revenue surged by 4 times YoY to HK$318 million for the fourth quarter in 2017. Sales revenue of said products for the full year rose by 5.1 times YoY to HK$464 million. However, the group will keep to invest with more resources to capture the market opportunity as well as to break through on intelligent business.

-End-

Tonly Announces Sales Revenue from Major Products for Fourth Quarter and Full Year in 2017

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Unaudited Sales Revenue (HK$'000)

2017 Q4

2016 Q4

Change YoY (%)

2017 Full Year

2016 Full YearChange YoY (%)

Audio Products(1)

－Traditional audio products －New audio products(4)

Subtotal

249,852 1,478,516 1,728,368

204,609

22.11%

706,439

789,249 -10.49%

• 717,940 105.94%

• 922,549 87.35%

  3,830,346 4,536,785

  • 2,051,554 86.70%

  • 2,840,803 59.70%

    Video products(2)

    145,018

• 265,418 -45.36%

  731,059

  • 1,159,791 -36.97%

  Intelligent ancillary products(3)

  318,225

• 63,998 397.24%

464,096 76,000 510.65%

Total

2,191,611 1,251,965 75.05%

5,731,940

4,076,594 40.61%

• (1) Mainly include home theatre, mini speakers, wireless speakers, soundbar, and headphones

• (2) Mainly include DVD player and BD player, OTT set top box (STB) and ABS-s receiver

• (3) Mainly include intelligent voice speakers and ancillary products, intelligent modules, and intelligent gateways.

• (4) Partial new audio products sales in 2016 reclassify to intelligent ancillary 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. 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 atwww.tonlyele.com.

For further information, please contact:

Cornerstones Communications Ltd.

Sam Choi / Sharis Siu / Lizzy Ke

T: (852) 2903 9289 / 2903 9292 / 2903 9281

E:[e-mail]/[e-mail]