Aac Technologies : FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016

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(Incorporated in the Cayman Islands with limited liability)

The board (the "Board") of directors (the "Director(s)") of AAC Technologies Holdings Inc. ("AAC Technologies" or the "Company") is pleased to announce the audited consolidated financial statements of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 31 December 2016 together with the audited comparative figures for the corresponding period in 2015.

These audited consolidated financial statements have been reviewed by the Company's audit committee (the "Audit Committee") and approved by the Board on 22 March 2017.

Dear Shareholders,

2016 was another good year for AAC Technologies. We managed to grow sales year-on-year for seven years consecutively and reached a new milestone with total revenue exceeding RMB15 billion or US$2 billion. These strong results come amid a more saturated smartphone market. We have gradually evolved from an acoustic components supplier to an integrated miniature technologies solutions provider through the accomplishment of significant initiatives which pave the way for our long-term success.

The following were some of the major financial highlights for the year ended 31 December 2016:

• Revenue grew by 32% to RMB15,506.8 million and net profit rose by 30% to RMB4,025.7 million year-on-year, both are new highs;

• Dual growth drivers comprising sales of dynamic components and non-acoustic solutions which grew by 29% and 56% respectively year-on-year, and both delivered gross margins of 40+%;

• Annualized return on average equity (ROE) was 31.6%, up from 30.4% last year;

• Further strengthened balance sheet with cash on hand of RMB3,864.4 million, and, relatively low gearing ratio and net gearing of 16.9% and 0.9% respectively; and

• A proposed total dividend of HK$1.47 per share for 2016, representing 23% growth over the previous year.

We are glad that AAC Technologies has been included in the 50-constituent stocks of the Hang Seng Index from 5 September 2016 which reaffirms the market's recognition of our significant position in the technology sector of the Stock Exchange of Hong Kong Limited (the "Stock Exchange"). Our market value hit a record high in August 2016, surpassing HK$100 billion for the first time. That was more than 30-times the market value of our IPO offering in 2005.

2016 was a significant year of technological advancements for the smart devices market. The worldwide thrust in innovative designs and interactive applications pushed handset makers to be more focused on the pursuit of better specifications and faster devices in order to optimize the user experience. Dual cameras and stereo speakers were among the best features to create better visual and audio entertainment. Moreover, further developments on enriching tactile feedback and stronger waterproof features were rolled out with high-end models. All of these innovations triggered a new cycle of upgrades for more sophisticated solutions.

While top-tier smartphones competed with individual innovations and differentiation, the mid- and low-tiers were inching closer towards delivering comparable higher specifications at affordable prices. The competition among dozens of new smartphones launched became very keen and replacement cycles have become shorter, driven by faster technology upgrades. Although global shipment growth was at a single-digit percent for smartphones, the market size was large, totaling

1.5 billion units for the year.

As always, AAC Technologies was at the vanguard of the technology migration by developing advanced acoustic solutions that enabled us to maintain our leading market position. At the same time, faster growth was achieved due to the traction from the non-acoustic segments. Our exceptionally strong design and production capabilities helped our customers respond to consumer demand and expectations for innovative features in a new generation of smart devices.

We delivered another set of solid results in 2016 with continued growth momentum from both the acoustic and non-acoustic segments. The Company posted revenue and net profit of RMB15,506.8 million and RMB4,025.7 million, representing a rise of 32% and 30% year-on-year respectively. Gross margin stayed at a high level of 41.5%. A major upgrade trend involving stereo sound and waterproof features drove dynamic components sales, rising by 29% year-on-year and accounting for 51% of total sales. RF Mechanical together with Haptics solutions, the two distinct contributors in the non-acoustic business, grew by 56% year-on-year and contributed 45% of total sales in 2016 compared with only 1% in 2013. The Company's continuous and effective cost controls drove operating expenses down to 12.4% from 14.2% in 2015. Full year net profit margin of 26.0% was achieved.

We ended the year with strong revenue and earnings growth in the fourth quarter. Q4 revenue rose 49% year-on-year or 36% quarter-on-quarter to RMB5,736.5 million. Net profit of RMB1,570.7 million was recorded, up 55% when compared with the same quarter last year and up 43% against the previous quarter. The strong growth from non-acoustic revenue was the main contributor. Non-acoustic business grew by 73% sequentially, contributing over 56% of total sales in the fourth quarter of 2016 and exceeding acoustic revenue for the first time. Again, we demonstrated strong execution on the production front and exceptional capabilities in delivering advanced solutions to meet customers' requirements. Q4 gross margin was 41.7% and effective control of operating expenses supported the net profit margin improvement to 27.4%.

The Company continues to generate strong earnings and cash flow, further enhancing its already strong financial position, with cash balance at year-end of RMB3,864.4 million. The Board proposed a final dividend of HK$1.17 (2015: HK$0.95) per share. Together with the interim dividend of HK$0.30 per share, the full year basic dividend will be HK$1.47 (2015: HK$1.20) per share, an increase of 23% year-on-year. The Company maintains a consistent dividend payout ratio of about 40% per year.

Subject to Shareholders' approval at the forthcoming annual general meeting to be held on 24 May 2017, the said final dividend will be payable to Shareholders of the Company, whose names appear on the register of members of the Company on 9 June 2017. Payment will be made on or about 21 June 2017.

AAC Technologies defines sustainability as a commitment to build a strong and successful business for the future, while minimizing negative environmental and social impacts, and sharing long-term values with its stakeholders. Sustainability has now gradually been incorporated into our business, not only to address today's pressing issues, namely climate change, talent acquisition and corporate transparency, but to create value for our operations. Our commitments and efforts are summarized in our annual Sustainability Report, and the fourth report is scheduled to be published on the websites of the Stock Exchange and the Company this May.

We promote a corporate culture of continuous learning, improvement, and innovation. Reflecting this culture, we successfully obtained 291 additional patents in 2016, of which 151 are for the non-acoustic segment, bringing our intellectual property portfolio to a total of 1,993 patents. We filed another 1,157 patent applications, which bring us to a total of 1,342 patents pending.

There are always many new developments in the technology sector. From rapid advancements in artificial intelligence for various applications to further progress in virtual reality (VR), augmented reality (AR) and machine learning - devices and applications are getting connected. The technological solutions and platforms are evolving at an unprecedented speed, helping people increase productivity and satisfaction. Mobile devices are expected to play a vital role in connecting and commanding the whole ecosystem. The focused portfolio of acoustic and non-acoustic solutions of the Company places it in a strong position to capitalize on the increasing demand for better performing smart devices.

In 2017, some high-tier customers are preparing for specifications upgrades to differentiate themselves in the competitive environment, while others will follow closely to strengthen their market position. We therefore expect attractive growth potential from both the acoustic and non-acoustic segments. Apart from superior technological capabilities for leading development of the industry, AAC Technologies owns integrated and multi-platform solutions. Not only has it helped consolidate our position as a leading provider of the most advanced solutions, but it has also increased the penetration of our new solutions from RF Mechanical, Optics and Haptics. When we strive to improve performance and product design, our solutions can also extend from the current major smartphone arena to other new applications. For VR and AR, audio and optical solutions together with RF designed mechanics and haptic feedback will bring totally immersive experiences that stimulate the human senses of sight and sound in addition to touch. We are capable of shipping total solutions for enhancing user experiences in these new areas.

Thanks to our well-defined development strategies and R&D focused vision, we believe we are able to achieve continuous revenue growth and stable high profitability. Product expertise and innovation will enable us to deliver new technology platforms with rich user experience and firmly establish us to be the leader of integrated miniature technologies provider. We will continue in our efforts to adapt to new challenges and achieve sustainable long-term growth for all shareholders in an ever-evolving market.

Lastly, on behalf of the Board, I would like to take this opportunity to express my sincere appreciation to all of our staff and management for hard work which has contributed to a good set of results and established a strong base for future growth. We are also grateful to our stakeholders for their support and trust in us. And, finally, my sincere thanks to my fellow Board members for their guidance and wise counsel during the year.

Chairman

22 March 2017