AAC Technologies Holdings Inc. provided earning guidance for the year ended 31 December 2021. Based on the preliminary assessment of the unaudited consolidated management accounts of the Group and information currently available, the Company's board of directors informed its shareholders and potential investors that the Group's revenue for the year ended 31 December 2021 ("FY 2021") is expected to increase slightly, but the unaudited consolidated profit attributable to owners of the Company for Fiscal Year 2021 is expected to decline by approximately 12% to 16% as compared with that for the year ended 31 December 2020. The expected year-on-year decrease is primarily attributable to the lack of a similar exceptional exchange gain reported in Fiscal Year 2020 and a reduction in government subsidies in Fiscal Year 2021.

Whilst, in the three months ended 31 December 2021 ("Q4 2021"), the overhang of certain unfavorable operating factors, such as the prolonged supply chain disruption due to the pandemic, the increase in operation costs in China and weaker demand on the back of chip shortage, mentioned in the Company's announcement dated 7 October 2021, continued to impact the Company's performance to some extent. The unaudited consolidated profit attributable to owners of the Company for Fourth Quarter 2021 is expected to decline by approximately 71% to 79% as compared with that for the corresponding period in 2020 ("Q4 2020"). In addition to the aforesaid two adverse factors, being the lack of a similar exceptional exchange gain and a reduction in government subsidiaries, the expected year-on-year decline in profit for Fourth Quarter 2021 was primarily attributable to a lower overall gross profit margin of the Group, which was adversely affected by fierce competition in domestic and overseas markets.

Particularly for its optics business, in rolling out its business expansion strategy to attain the optimal market position, the Group observed weaker profit margin in Fourth Quarter 2021, due to lower average selling price and lower production efficiency.