Aac Technologies : Annual Report 2018

(Incorporated in the Cayman Islands with limited liability)

Stock Code: 2018

2018

ANNUAL REPORT

AAC Technologies Holdings Inc. is the world's leading solutions provider for smart devices. Our cutting-edgetechnologies in materials research, simulation, algorithms, design, automation and process development in Acoustics, Optics, Electromagnetic Drives and Precision Mechanics, MEMS, Radio Frequency and Antenna, enable us to develop advanced miniaturized proprietary technology solutions. Our goal is to "Lead Innovation & Enhance User Experience". In delivering high-performanceand superior quality products, the Group will continue to create value for customers with innovative user experience.

www.aactechnologies.com

This annual report is printed on environmentally friendly paper

Contents

Essence of AAC
Corporate Information	2
Core Development Strategies	3
Financial Highlights	8
Global Presence	10
Milestones: 1993-2018	12
Chairman and CEO Statement	14
Management Discussion and Analysis
Market Review	17
Performance of Business Segments	18
Financial Review	22
Key Risk Factors	25
Organization
Biographies of Directors and Senior Management	28
Governance & Sustainability
Directors' Report	39
Corporate Governance Report	51
Sustainability	82
Auditor's Report and Financial Statements
Independent Auditor's Report	85
Consolidated Statement of Profit and Loss and Other Comprehensive Income	89
Consolidated Statement of Financial Position	90
Consolidated Statement of Changes in Equity	92
Consolidated Statement of Cash Flows	94
Notes to the Consolidated Financial Statements	96
5-Year Financial Summary	170
Others
Investors Information	171
Glossary	173

The Company issues a stand-alone Sustainability Report every year since 2013. The Sustainability Report discloses the details of sustainability performance, initiatives and its progress on environmental, social and governance issues for the year. The Sustainability Report for 2018 will be published on 18 April 2019. Please visit the website www.aactechnologies.com to download the Sustainability Reports.

AAC Technologies Holdings Inc. 2018 Annual Report

1

Corporate Information

BOARD OF DIRECTORS

Executive Directors

Mr. Pan Benjamin Zhengmin (Chief Executive Officer) Mr. Mok Joe Kuen Richard

Independent Non-executive Directors

Mr. Koh Boon Hwee (Chairman of the Board)

Mr. Au Siu Cheung Albert (Appointed on 1 February 2018) Mr. Tan Bian Ee

Mr. Poon Chung Yin Joseph

Mr. Kwok Lam Kwong Larry (Appointed on 1 February 2018) Mr. Peng Zhiyuan (Appointed on 1 January 2019)

Mr. Zhang Hongjiang (Appointed on 1 January 2019) Ms. Chang Carmen I-Hua (Retired on 28 May 2018)

Non-executive Director

Ms. Wu Ingrid Chun Yuan

AUDIT AND RISK COMMITTEE

Mr. Au Siu Cheung Albert (Chairman)

Mr. Poon Chung Yin Joseph

Mr. Kwok Lam Kwong Larry

NOMINATION COMMITTEE

Mr. Tan Bian Ee (Chairman)

Mr. Poon Chung Yin Joseph

Mr. Kwok Lam Kwong Larry

REMUNERATION COMMITTEE

Mr. Poon Chung Yin Joseph (Chairman)

Mr. Au Siu Cheung Albert

Mr. Tan Bian Ee

AUTHORIZED REPRESENTATIVES

Mr. Pan Benjamin Zhengmin

Mr. Mok Joe Kuen Richard

COMPANY SECRETARY

Mr. Lo Tai On

AUDITOR

Deloitte Touche Tohmatsu

LEGAL ADVISORS

Woo, Kwan, Lee & Lo

Baker & McKenzie

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Unit 1605-7, China Evergrande Centre

38 Gloucester Road

Wanchai, Hong Kong

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Computershare Hong Kong Investor Services Limited

Shops 1712-1716, 17th Floor, Hopewell Centre

183 Queen's Road East

Wanchai, Hong Kong

REGISTERED OFFICE

Century Yard, Cricket Square, Hutchins Drive

P.O. Box 2681, George Town

Grand Cayman, KY1-1111

Cayman Islands

CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Maples Fund Services (Cayman) Limited

Boundary Hall, Cricket Square

P.O. Box 1093, Grand Cayman, KY1-1102

Cayman Islands

PRINCIPAL BANKERS

Agricultural Bank of China

Bank of China

Bank of Communications

Citibank, N.A.

Ping An Bank

The Hongkong and Shanghai Banking Corporation Limited

STOCK CODE

2018

WEBSITE

www.aactechnologies.com

FINANCIAL YEAR END

31 December

2AAC Technologies Holdings Inc. 2018 Annual Report

Core Development

Strategies

AAC Technologies is

offering advanced solutions enabled by its cutting-edge and proprietary technologies to the global consumer electronics industry

AAC Technologies is determined to drive growth through innovation and enhance its R&D as well as high-precision manufacturing capabilities, so as to provide the best products and solutions meeting future market demands. The core competencies of the Group include simulations, innovative research and design as well as vertically integrated smart manufacturing, complemented by efficient management, proven operational systems and its tireless effort in nurturing talents.

AAC Technologies Holdings Inc. 2018 Annual Report

3