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

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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

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*(深圳市華星光電技術有限公司)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:

(Unaudited)

 

Nine months ended

 30 September 2019

(RMB’000)

Nine months ended

 30 September 2018

(RMB’000)

Change (%)
Sale of TFT LCD module
Non-laminated modules

652,889

520,889

+25.3%

Laminated modules

3,641,837

2,032,666

+79.2%

Processing TFT LCD module
Non-laminated modules

24,038

N/A

Laminated modules

226,716

N/A

Total

4,545,480

2,553,555

+78.0%

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

(Unaudited)

 

Nine months ended

 30 September 2019

(‘000 units)

Nine months ended

 30 September 2018

(‘000 units)

Change (%)

Sale of TFT LCD module
Non-laminated modules

15,068

11,916

+26.5%

Laminated modules

41,640

20,656

+101.6%

Processing TFT LCD module
Non-laminated modules

2,835

N/A

Laminated modules

19,968

N/A

Total

79,511

32,572

+144.1%

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