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

Revenue Increased by 78% YOY to RMB 4,545 million Driven by Orders of First-tier Brand Customers Sales Volume Increased by 144.1% YOY

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HONG KONG, CHINA - Media
OutReach - 24 October 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 nine months ended 30 September 2019 (the “Period”).

 

During the Period, the Group’s
revenue amounted to RMB4,545
million, representing a
year-on-year increase of 78.0%. In terms of the non-processing products, the
revenue of laminated LCD module products recorded a rise of 79.2% year on-year to RMB3,642 million;
the revenue of non-laminated LCD module products was RMB653 million, representing
an increase of 25.3% year-on-year. Driven by the orders placed by first-tier
brand customers, the Group’s sales volume increased by 144.1% year-on-year to
79.5 million units. The overall average selling price (excluding processing
modules) during the Period decreased by 3.4% year on-year to RMB75.7, because
the raw materials of certain products had been provided by customers directly
during the first half of 2019, thus the cost of such raw materials was not
reflected in the selling price for the relevant products. However, the overall
average selling price (excluding processing LCD modules) for the third quarter
increased by 2.3% year on-year to RMB87.9, due to the improvement in product
mix. During the Period, the Group’s revenue from processing products amounted
to RMB251 million.

 

In the meantime, the Group has been recognized by
various global first-tier brands after the vertical integration with Shenzhen
China Star Optoelectronics Technology Co., Ltd*???????????????together with its subsidiaries. By capitalizing on
the existing partnerships, the Group will continue to strengthen its customer
base, actively reduce costs and increase efficiency to maximize production
efficacy and effectiveness. At the same time, the Group will elevate its research
and development capabilities to enhance and prepare for developing advanced
display technology, including in-display fingerprint and AMOLED technologies,
so as to lay a solid foundation for future operation. Meanwhile, the Group is
also increasing its presence in the smart home and automotive display markets
to capture the immense opportunities therein, as well as expanding its business
horizontally.

 

Looking
ahead, the management of Ch Display Opt said, “It
is expected that the uncertainties of the global economy will continue to mount
up due to the Sino-US trade frictions and intensifying geopolitical tensions.
Although the development focus of the global semiconductor display industry has
gradually shifted to China, oversupply persisted during the Period. Meanwhile,
the volatility of the US market has also led to the reorganization of the
global smartphone market and the related supply chains. In the long run, the
Group still remains cautiously optimistic about the development prospects of
the display module business and believes that its competitiveness will be
further reinforced by improving the industrial value chain and enhancing its
technology and scale advantages. The Group will maintain a balance between
sales and healthy progress in the midst of challenges, and be committed to
creating greater value for the Group and its shareholders.”

 

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

 

 

The
Group’s sales volume by product segment and respective year-on-year changes 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.5 in terms of handset products’ revenue among
Chinese display module makers during first half of 2019.

 

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

 

Issued by Cornerstones Communications Ltd. on behalf of China Display Optoelectronics Technology
Holdings Limited.