For Immediate Release

/
Tonly Electronics Holdings Limited
(Stock Code: 01249)

Tonly Announces Sales Revenue from Major Products for
Second Quarter and First Half in 2017 (Unaudited)

(July 10, 2017, Hong Kong) Tonly Electronics Holdings Limited ("Tonly Electronics" or the "Group"; SEHK stock code: 01249) today announced its unaudited sales revenue ended 30 June 2017 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 HK$1,103 million for the second quarter in 2017, increased 14.1% compared with the same period last year. Sales revenue of the major products of the Group in the first half of the year was HK$1,977 million, representing a 18.5% rise year-on-year (YoY). The growth was mainly attributable to the Group's 'new audio' and 'intelligent ancillary products' business.

Sales revenue for audio products for the second quarter in 2017 rose by 35% YoY to HK$862 million, while its sales revenue surged by 48.7% YoY to HK$1,490 million in the first half of the year. The increase was mainly attributable to new audio products such as wireless bluetooth speakers, soundbar, and headphones.

Sales revenue of video products fell by 35.4% YoY to HK$210 million for the second quarter in 2017, and it recorded a decrease of 34.3% to HK$432 million for the first half in 2017. The fall was mainly due to the general downturn of the video disc players business, and the development of set top box fell below expectation.

Sales revenue of intelligent ancillary products soared by 10 times YoY to HK$31 million for the second quarter in 2017. Sales revenue of said products in the first half of the year rose by 5.8 times YoY to HK$55 million. The business is still in its initial growing period. Due to the proliferation of the intelligent voice telchnology, the Group foresees substantial growth potential in intelligent voice speakers and ancillary products, and the market potential of smart home products is yet to be revealed.

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(1) Mainly include home theatre, mini speakers, wireless speakers, soundbar, and headphones

(2) Mainly include DVD player and BD player, OTT set top box (STB) and ABS-s receiver

(3) Mainly include intelligent voice speakers and ancillary products, intelligent modules, and intelligent gateways.

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 (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 devleoping into smart business. The Group is committed to becoming a one-stop smart loT solutions provider based on the electroacoustic and wireless technologies. Its ultimate controlling shareholder is TCL Corporation (a company listed on the Shenzhen Stock Exchange, Stock code 000100.SZ).

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