China Display Optoelectronics Technology Holdings Limited Announces 2018 Annual Results

HONG KONG, CHINA - Media
OutReach - 19 March 2019 – China
Display Optoelectronics Technology Holdings Limited (“Ch Display Opt” or
the “Company”, together with its subsidiaries, the “Group”; HKSE stock code:
334) today announced its annual results for the twelve months ended 31 December
2018 (the “Review Period”).

 

During
the Review Period, the Group recorded a revenue of RMB5.28 billion,
representing a year-on-year increase of 52.4%, of which the revenue of
laminated LCD module products registered a rise by 101.6% year-on-year to
RMB4.38 billion. The increase of the Group’s revenue was due to the following
reasons: (i) the Group’s annual sales volume was up by 13.1% to 60.4 million
units as driven by the orders placed by new first-tier brand customers in the
second half of 2018; (ii) the Group continuously optimised its product mix and
increased the proportion of high-end products, so that the portion of laminated
products rose from 40.5% for same period last year to 68.9% in terms of sales
volume, with the overall average selling price up by 34.7% to RMB87.5. During
the Review Period, the Group further expanded its market share and successfully entered the direct
supply chain of the world’s top mobile phone manufacturers, including Samsung,
Huawei, Xiaomi, vivo
and OPPO.

 

To keep abreast of the customer demand,
the Group actively devoted its efforts to the research and development of new
products and new technologies.
Given the market demand on
full-screen products, the Group has successfully commenced the mass production
of its first batch of full-screen products nationwide in July 2017. During the
Review Period, the Group has cooperated with CSOT to develop and mass produce a
variety of high-end full-screen notch-cutting module products. During the
Review Period, the Group’s full-screen products accounted for approximately 64%
of the overall sales volume and the proportion of the sales volume of
low-temperature poly-silicon (LTPS) products increased from 29% for the same
period last year to 64%. 

 

In addition, during
the Review Period, the Group keenly seized the opportunities brought by the
development of the smart home market and Internet of Things. In March 2018, the
Group launched a partnership with Baidu to introduce its first smart speaker
with interactive touch display module, which marked the Group’s first foray
into the smart home market. The Group expanded the production capacity of 8 to
17-inch medium sized display modules for smart home products and devices by
adding new dedicated production lines for the above, so as to further expand
its market share.

 

Looking ahead, the management of Ch Display Opt, said, “the global economic
outlook in 2019 is full of challenges due to the impact of trade conflicts and
geopolitical tensions. Nevertheless, we will continue to put forth our best
efforts to meet any difficulty head-on and with pragmatism. With our
outstanding ability and responsiveness to market changes, we will further
enhance our collaborations with first-tier brand customers through leveraging
CSOT’s technology and resources to lay a solid foundation for future
development. In terms of research and development capabilities, the Group will
keep up the sustained allocation of resources to foldable AMOLED display module
and in-display fingerprint technologies. In addition, we will explore and
identify the “blue ocean markets”, such as automotive display and smart home
industries, in order to expand business diversification, and reinforce and
increase our competitiveness to enable healthy business growth.”

  

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

 

	Twelve months ended 31 December
	2018	2017	Changes (%)
TFT LCD module – Revenue (RMB ‘000)
Non-laminated modules	900,028	1,291,789	-30.3
Laminated modules	4,380,833	2,172,784	+101.6
Total	5,280,861	3,464,573	+52.4
TFT LCD module – Sales Volume (‘000 units)
Non-laminated modules	18,788	31,767	-40.9
Laminated modules	41,596	21,606	+92.5
Total	60,384	53,373	+13.1