AAC TECHNOLOGIES HOLDINGS INC. (Incorporated in the Cayman Islands with limited liability)

(Stock code: 2018 HK)

2019 Interim Results 23 August 2019 1H 2019 highlights

Revenue G.P. margin Net profit EPS Interim DPS 01 RMB 7.6B 02 27.5% 03 RMB 770M 04 RMB 0.64 05 HK$0.40 （-10% YoY) (- 9 p.p.) (-57% YoY) (-56% YoY) (flat YoY)

 1H19 revenue -10%YoY, but 2Q19 revenue +1% YoY / 1H19 revenue breakdown +2% QoQ to RMB3.8bn, exhibiting a sequential improvement and mitigating some 1Q revenue decline Others MEMS 1%  1H19 challenges: Reduced shipments had affected 5% Acoustics and ED in 1Q19 Optics  1H19 positives: 2Q19 SLS % up to 50% (from 1Q 35%); 6% strong revenue growth for optics Acoustics 48%

 Optics set as one of key and strategic growth drivers ED+PM 40%  Healthy gearing at 10%; Interim DPS maintained at HK$0.40

1 1H19 key progresses

1、 Acoustics: Entry-level SLS 4、Accelerating technical products covered most Android development and mass production flagships and penetrated into mid-end of WLG models (from high-end models)

5、Stepper motor module started mass production ; shipment to 2、Optics: Monthly shipments ~ 30 mainstream Android customers million units by 2Q19 （> +100% YoY) 6、5G: Unleashed six different 5G antenna solutions for mobile phone and base station 3、Proactively developing new imaging lens modules and building new factory for innovative high-end periscope lens modules 7、Owned 3,956 patents as of 30 June 2019

2 Effective financial management & solid Cash Position

 Operating cash inflow of RMB1.8bn as at 1H19, more than enough to cover the dividend payments and share buyback

 Gross cash on hand of ~RMB3.2bn as at Jun 2019, 45% in RMB and 48% in USD

 Disciplined and manageable capex; net gearing remains at low level of 9.8% as at 1H19

1H19 2H18 1H18 Net gearing remains at low level; RMB million (1 Jan - 30 (1 Jul - 31 (1 Jan - 30 Ample gross cash on hand Jun 2019) Dec 2018) Jun 2018) Cash & bank balance as of 5,000 12.0% 4,059 3,145 4,034 period beginning 4,000 10.0% Cash inflow from operations 1,785 2,979 3,810 8.0% 3,000 Capital expenditure -1,319 -1,632 -2,271 6.0% Net borrowings raised / (Net 2,000 73 -181 -374 4.0% borrowing repayments) 1,000 2.0% Dividend paid and share -1,372 -708 -1,751 0 0.0% repurchase FY14 FY15 FY16 FY17 FY18 1H19 (Outflows) / Inflows from others -53 457 -303 Cash & bank balance as of Cash and Cash Equivalents (RMB'mn) - LHS Net Gearing - RHS 3,173 4,059 3,145 end of period

33 Returning to shareholders via dividends and buyback

 1H19 interim dividend at HK$0.40 (flat YoY)

 In FY14-18, DPS has been maintained at 40% of EPS

 During 1H19, RMB1.37bn (or HKD1.56bn) was spent on paying dividend and share buyback

Returning to shareholders via (RMB) Rewarding shareholders with dividend dividend and share buyback 2.50 3,000

2.00 2,500

1.50 2,000 1.70 1,500 1.00 1.17 1.03 0.95 1,000 0.71 0.50 500 0.25 0.25 0.30 0.40 0.40 0.40 - FY14 FY15 FY16 FY17 FY18 1H19 0 FY14 FY15 FY16 FY17 FY18 1H DPS - LHS 2H DPS - LHS Payment of dividend (RMB'mn) Repurchase of shares (RMB'mn)

4 Investing in future sustainable growth

No. of Patents Korea 4,500 Denmark Japan 4,000 Suwon US Copenhagen Osaka 3,500 Aalborg 5Y CAGR at +18% Irvine 3,000 Finland 2,500 Turku 2,000 Tampere Beijing, Wuhan, 1,500 Singapore Nanjing, Changzhou, 1,000 Suzhou, 500 Shanghai, - FY14 FY15 FY16 FY17 FY18 FY19

Capital expenditure (RMB 'mn) R&D expenses (RMB 'mn) 6,000 30% 1,800 12% 5,000 25% 1,600 10% 1,400 4,000 20% 1,200 8% 3,000 15% 1,000 6% 800 2,000 10% 600 4% 400 1,000 5% 2% 200 0 0% - 0% FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 1H 2H CAPEX as % of Revenue - RHS 1H 2H R&D as % of Revenue - RHS 5 Diversified manufacturing bases in Asia Pacific

Shuyang Ma’Anshan • Acoustics (Automation) • Chemical treatment • Electromagnetic drives • Precision parts • RF/antenna • Precision processing

Xiamen • MEMS Changzhou • Acoustics • Precision processing (3D glass) • Electromagnetic drives Nanning • Optics • Acoustics • Optics (Camera module) • Precision Processing Suzhou (Assembly) • Optics

Shenzhen Vietnam • MEMS • Acoustics (Semi-automation) Philippines • Electromagnetic drives

6 Optics —— as a key & strategic growth driver

 Get at higher specs orders to improve capacity utilization and optimize production efficiency TOP 3 global supplier of plastic lens

 Average monthly shipments ~30mn units in 2Q19, up 100% YoY

 Plan for production of high-end hybrid designs

 Average monthly shipments to further double to 60mn units by year-end

7 Performance by business segments AAC’s key product lines

Acoustics Electromagnetic Drives Optics

Haptics Exciter, Stepper motor Hybrid Plastic Camera Speaker, Acoustic MEMS audio module lens lens module receiver modules microphone display

Precision Processing High-speed RF/Antenna

Powered hinge Transmission

LDS LCP FPC PCB Connector 5G RF Tuners Infrastructure Metal 3D glass Wireless Cooling antennas & Metal frame mechanics power filters antenna

8 Major segments creating synergies together

Haptic / 3D Glass/ MEMS Acoustics ED Metallic Optics RF Solutions Components Components Casing

In-house Integrated Electromagnetic RF Front-end Special Metallic Seamless Expertise Integration Moulding Design

• Develop total solutions by cross-platforms core technologies • Production know-how to optimize functional performance 9 Acoustics

1H19 1H18 1H19 YoY 2Q19 1Q19 2Q18 2Q19 QoQ 2Q19 YoY Revenue (RMB mn) 3,646 4,302 -15% 1,767 1,879 1,885 -6% -6% GP Margin 30.1% 37.5% -7 p.p. 27.2% 32.9% 36.7% -6 p.p. -10 p.p. Gross profit (RMB mn) 1,097 1,615 -32% 480 617 692 -22% -31%

Performance in 1H19 Outlook

 “Upgraded version” of SLS to replace “Entry  ASP and volume were under pressure, version” in 2H19, targeting at high-end segment due to reduced global shipments & extended cycles for  Technological breakthrough in the newly specification innovations and upgrades launched “Classic level”, well received by customers & to be applied in customers’ new  SLS continued to gain market share in products in 2H19 Android . Total SLS among Android shipments reached 50% in  Uptrend for shipments and ASP of SLS 2Q19 (35% in 1Q19) products, & improvement in GPM of acoustics business in 2H19

10 Electromagnetic Drives(ED) and Precision Mechanics(PM)

1H19 1H18 1H19 YoY 2Q19 1Q19 2Q18 2Q19 QoQ 2Q19 YoY Revenue 3,030 3,438 -12% 1,496 1,534 1,534 -2% -2% GM 29.7% 39.6% -10 p.p. 27.0% 32.3% 36.9% -5 p.p. -10 p.p. Gross profit 900 1,362 -34% 405 496 566 -18% -28%

Performance in 1H19 Outlook  Revenue -12% YoY to RMB3bn (40% of total sales), GP margin -9.8 p.p. to 30%. PM showed a significant revenue  For ED, expects x-axis haptic motors to further growth; ED revenue declined. penetrate into more Android models in 2H19 Shipments to increase multi-folds from ~20mn in  ED drives achieved targeted operational efficiency, GP 2019F margin largely maintained.  Expects PM to win more orders to increase capacity  PM segment has a lower GM margin than ED. Higher PM utilization and enhance revenue revenue % diluted the overall GM margin  Expects the core competencies from vertical  For ED drives, stepper motor module commenced mass integration capabilities and full automation to production contribute to a better GP margin.  For PM, metal frame products successfully penetrated into more mainstream high-end Android models 11 Micro-electromechanical systems (MEMS)

1H19 1H18 1H19 YoY 2Q19 1Q19 2Q18 2Q19 QoQ 2Q19 YoY Revenue 380 344 11% 226 154 164 46% 37% GM 23.5% 19.4% +4 p.p. 26.9% 18.5% 21.0% +8 p.p. +6 p.p. Gross profit 89 67 34% 61 29 35 113% 76%

Performance in 1H19

 Revenue +10.5%YoY to RMB 380mn (5% of total sales); GPM +4 p.p. YoY to 23.5%

 Both ASP and shipments for MEMS microphone Outlook were YoY +ve in 2Q19

 To increase in-house ratios of MEMS dies and digital ASIC chips for our MEMs microphone

 To promote more upgrades in MEMs microphones’ technology and expansion to new applications such as those in smart home market

12 Efforts on sustainability

 ESG Performance: comply with both HKEX ESG Reporting Guide and GRI Standards Core Option, also align with UN Sustainable Development Goals’ Specific Targets and commenced our alignment with recommendations from Taskforce on Climate-related Financial Disclosure  Conduct external assurance for entire report  Included as one of the 30 constituent stocks of the Hang Seng Corporate Sustainability Index  Included on the Hang Seng Corporate Sustainability Index and HSI ESG Index  Best in Reporting (Large Cap) – Certificate of Merit in the BDO ESG Awards 2019  Best ESG Report (Large Cap), Excellence in GRI Report, and Innovative Frontrunner Award in the Hong Kong ESG Reporting Awards (HERA)

Sustainability Reports Permission to reprint or distribute any content from this presentation requires prior written approval of AAC 13 Investors information

STOCK CODE KEY DATES FOR SHAREHOLDERS 16 September 2019 2019 Interim Report available on the Company’s website The Stock Exchange of Hong Kong Limited: 11–18 September 2019 Book Closure Period for Interim Dividend 2018 Bloomberg: 2018: HK 18 September 2019 Record Date for Interim Dividend 27 September 2019 Payment of 2019 Interim Dividend Reuters: 2018.HK Mid-November 2019 2019 Third Quarter Results Announcement ISIN: KYG2953R1149 End-March 2020 2019 Annual Results Announcement

Any changes to these dates in 2019/2020 will be published on the MAJOR MARKET INDEXES websites of the Stock Exchange and the Company.

Constituent stock of the and included in its sub-indexes: - Corporate Sustainability Index, (Mainland and HK) Corporate CONTACT INVESTOR RELATIONS Sustainability Index, HSI ESG Index Company website: https://www.aactechnologies.com/en/ - China (Hong Kong-listed) 25 Index Email: [email protected] - Composite Industry Index (Information Technology) Official IR wechat : and IT Hardware Index - FTSE Hong Kong Index - MSCI China Index - High Beta Index

(Contents in Chinese only; English contents are available on company website) Disclaimer

 The performance and the results of operation of AAC Technologies set out in this presentation are historical in nature and past performance is not a guarantee of future performance.

 Certain statements made herein are forward-looking or which use certain forward-looking terminologies. These forward-looking statements are based on the current beliefs, assumptions and expectations of the Board of Directors of AAC Technologies regarding the industry and markets in which it operates. Actual results may differ materially from expectations discussed in such forward-looking statements and opinions.

 AAC Technologies, the Directors, employees and agents of the Company assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this presentation; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialize or turn out to be incorrect.

 Investors should carry out their individual due diligence research and should not make their investment decisions based on any information or representations contained herein.