China Display Optoelectronics Technology Holdings Limited Announces Unaudited Financial and Operating Data for the First Quarter of 2019

Driven by Direct Supply to First-tier Brands Sales Volume Increased More Than Twofold YOY ASP Increased by 10.1% YOY Revenue Amounted to RMB2.0 billion

HONG KONG, CHINA – Media OutReach – 23 April 2019 – China Display Optoelectronics Technology Holdings Limited (“Ch Display Opt” or the “Company”, together with its subsidiaries, the “Group”; HKSE stock code: 334) is pleased to announce its unaudited financial and operating data for the three months ended 31 March 2019 (the “Period”).

During the Period, the Group’s revenue amounted to RMB2.0 billion, representing a year-on-year increase of 245.2%, of which the revenue of laminated LCD module products registered a rise by 336.5% year-on-year to RMB1.64 billion. Revenue of non-laminated LCD module products was RMB360 million, marking an increase of 77.1% year-on-year. The Group’s sales volume was up by 213.4% year-on-year to 25.5 million units as driven by the orders placed by new first-tier brand customers. At the same time, the Group continuously optimised its product mix and increased the proportion of high-end products, so that the portion of laminated products accounted for 69.7% of sales volume as compared to that of 50% in the same period last year. During the Period, the Group’s full-screen products accounted for approximately 89.7% of the overall sales volume and the proportion of the sales volume of LTPS products increased from 34.4% for the same period last year to 86.8%, with the overall average selling price up by 10.1% year-on-year to RMB78.2.

The competition in the smartphone industry remains intensive, and smartphone and upstream manufacturers are poised for the proliferation of 5G and foldable phones. Despite market uncertainties, the Group will respond to customers’ needs proactively by leveraging on the vertical integration with CSOT to offer customised products to first-tier brand customers in order to strengthen our customer base and increase our market share. Concurrently, the Group, with its foresight and expertise in the industry, will strengthen its research and development by joining hands with CSOT to consistently enhance the display technology, including in-display fingerprint and AMOLED technologies, so as to lay a solid foundation for future operation and strive to become a forerunner in technological innovation.

Looking ahead, the management of Ch Display Opt said, “According to the prediction of IDC, a global market researcher, the application of screens in smart speakers, smart refrigerators and home security monitoring equipment will increase in the future, which will in turn drive the emergence of new product types. Therefore, the Group is also expanding its business horizontally and increasing its presence in the smart home and automotive display markets to capture the immense opportunities therein. In the long run, the Group remains cautiously optimistic about the development prospects of the display module business and believes in its ability to maintain a balance between sales and healthy progress in the midst of challenges, so as to create greater value for the Group and its shareholders.”

The Group’s revenue by product segment and respective year-on-year change during the Period were as follows:

The Group’s sales volume by product segment and respective year-on-year change during the Period were as follows: