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

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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:

About China Display Optoelectronics Technology (334.HK)

Headquartered in China, China Display
Optoelectronics Technology Holdings Limited (HKSE stock code: 334) is one of
the major providers of small-to-medium-sized display modules in the region. Ch
Display Opt engages primarily in the research and development, manufacturing,
sales and distribution of LCD modules mainly for devices on an ODM basis.
Smartphone LCD module products of Ch Display Opt are welcomed by domestic and
overseas manufacturers?according to IHS
MARKIT data, the company ranked NO.4 in terms of handset products’ revenue
among Chinese display module makers.

For more information,
please visit its website at www.cdoth8.com.