By Yifan Wang
AAC Technologies Holdings Inc. (2018.HK) said first-quarter net profit slumped 88% as the coronavirus pandemic shut down production and sharply inflated costs.
Net profit for the January-to-March period fell to 52.7 million yuan ($7.4 million) from CNY431.9 million a year earlier, the smartphone component maker said Friday.
Revenue fell 5.1% to CNY3.56 billion, mainly dragged by a 24% drop in revenue from its acoustics business.
The net profit decline outpaced the drop in rvenue because of a significantly lower net profit margin, which fell 10.0 percentage points from a year earlier to 1.5%.
The severely weakened profitability was a result of most factories shutting down to contain the coronavirus pandemic, the company said.
Additional spending on masks and other pandemic-prevention measures further increased costs when production resumed, it said.
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