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").

Duringthe Review Period, the Group recorded a revenue of RMB5.28 billion,representing a year-on-year increase of 52.4%, of which the revenue oflaminated LCD module products registered a rise by 101.6% year-on-year toRMB4.38 billion. The increase of the Group's revenue was due to the followingreasons: (i) the Group's annual sales volume was up by 13.1% to 60.4 millionunits as driven by the orders placed by new first-tier brand customers in thesecond half of 2018; (ii) the Group continuously optimised its product mix andincreased the proportion of high-end products, so that the portion of laminatedproducts rose from 40.5% for same period last year to 68.9% in terms of salesvolume, with the overall average selling price up by 34.7% to RMB87.5. Duringthe Review Period, the Group further expanded its market share and successfully entered the directsupply chain of the world's top mobile phone manufacturers, including Samsung,Huawei, Xiaomi, vivoand OPPO.

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

In addition, duringthe Review Period, the Group keenly seized the opportunities brought by thedevelopment of the smart home market and Internet of Things. In March 2018, theGroup launched a partnership with Baidu to introduce its first smart speakerwith interactive touch display module, which marked the Group's first forayinto the smart home market. The Group expanded the production capacity of 8 to17-inch medium sized display modules for smart home products and devices byadding new dedicated production lines for the above, so as to further expandits market share.

Looking ahead, the management of Ch Display Opt, said, "the global economicoutlook in 2019 is full of challenges due to the impact of trade conflicts andgeopolitical tensions. Nevertheless, we will continue to put forth our bestefforts to meet any difficulty head-on and with pragmatism. With ouroutstanding ability and responsiveness to market changes, we will furtherenhance our collaborations with first-tier brand customers through leveragingCSOT's technology and resources to lay a solid foundation for futuredevelopment. In terms of research and development capabilities, the Group willkeep up the sustained allocation of resources to foldable AMOLED display moduleand in-display fingerprint technologies. In addition, we will explore andidentify the "blue ocean markets", such as automotive display and smart homeindustries, in order to expand business diversification, and reinforce andincrease our competitiveness to enable healthy business growth."

TheGroup's revenue and sales volume by product segment and their respectiveyear-on-year change during the Review Period are as follows: