Tonly Announces Sales Revenue from Major Products for Fourth Quarter and Full Year in 2019 (Unaudited)

For Immediate Release

Tonly Electronics Holdings Limited

(Stock Code:01249)

Tonly Announces Sales Revenue from Major Products for Fourth Quarter

and Full Year in 2019 (Unaudited)

(13January 2020, Hong Kong) Tonly Electronics Holdings Limited ("Tonly Electronics" or "the Group"; SEHK stock code: 01249) announced its unaudited sales revenue ended 31December 2019 for its major products. The following products do not encompass all of the Group's business and the information below does not completely reflect the Group's performance during the period under review.

Sales revenue of the major products of the Group was approximately HK$2,176 million for the fourthquarter in 2019, increased by 3.2% compared with the same period of last year. Sales revenue of the major products of the Group for the full year in 2019 was HK$8,024 million, representing a 10.7% rise year-on-year (YoY). The growth was mainly attributable to the Group's 'audio products', 'headphones' and 'ancillary product' business.

Audio productbusiness has now become the major business segment of the Group, especially in view of thegrowth of smart speakers and soundbar. Sales revenue for audio products for the fourth quarter in 2019 fell by 14.9% YoY to approximately HK$1,372 million. The fall was mainly due to the decline in traditional audio business and thedelayed shipments of some customers at the end of the year. Its sales revenue increased by 5.1% YoY to HK$5,824 million for the full year in 2019.

Sales revenue for headphones for the fourth quarter in 2019 rose by 54.3% YoY to approximately HK$410 million. While its sales revenue increased by 49.7% YoY to HK$1,055 million for the full year in 2019. The Group will continue to enhance its technological development ofTrue Wireless Stereo (TWS) earphones, mid-to-high-end earphones products, Active Noise Cancellation (ANC) earphones and voice interaction function in order to increase market share.

Sales revenue of video products fell by 37.0% YoY to approximately HK$31 million for the fourth quarter in 2019,and it recorded a decrease of 46.8% YoY to HK$211 million for the full year in 2019. The fall was mainly due to the general downturn of the video disc players market.

Sales revenue of IoT Related Productsfell by 24.3% YoY to approximately HK$32 million for the fourth quarter in 2019,and it recorded adecrease of 20.3% YoY to HK$128 million for the full year in 2019. The decline was mainly due to the impact of structure adjustments of products and customers.The Group will continue to expand its product innovation capabilities, as well as to optimise its customer structure and enhance its market competitiveness.

Sales revenue of ancillary products rose by approximately 136.6% YoY to approximately HK331 million for the fourth quarter in 2019.Benefited from the inclusion of component products of Guangdong Regency Optics-Electron Corp, an subsidiary of the Group, into the Group's revenue of ancillary products since the first quarter of 2019, and thegrowth of ancillary product business supplementary to the smart products business, sales revenue of the said products for the full year in 2019 rose by 82.4% YoY to HK$806 million.

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1. Mainly include smart voice speakers, wireless speakers, soundbars, home theatres, and mini speakers
2. Mainly include DVD players, BD players, OTT set top boxes (STB), and other products
3. Mainly include smart plugs, smart gateways and other IoT products
4. Mainly include fabric covering for external sales, plastic injection structural parts, speakers, wirelessmodules, and other components

*Partial IoT Related Products sales in 2018 were reclassified to Video products for the reason of product form adjustment.

Note: The above products do not encompass all of the Group's business and the information above does not completely reflect the performance of the Group during the period under review. The above information is unaudited.

About Tonly Electronics

Tonly Electronics Holdings Limited (SEHK stock code: 01249), a high-tech smart products manufacturer with competitive industrial advantages, is principally engaged in the research and development, manufacturing and sales of audio and video products as well as wireless smart interconnectivity products. It is also developing into smart business. The Group is committed to becoming a one-stopsmart loT solutions provider based on the electroacoustic and wireless technologies.

For more information, please visit its website at www.tonlyele.com.

For further information, please contact:

Tonly Electronics Holdings Limited

Andrew Cao / Cheryl Ko

T: (852) 2437 7460

E: ir@tonlyele.com