Laminated
LCD Module Products Contributed Half of the Sales
Driving
Up the Average Selling Price to RMB 70.2
China Display Optoelectronics Technology Holdings Limited (“ChDisplay 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 2018 (the “Period”).
During
the Period, due to the
lack of innovative incentives that encouraged new smartphone purchases, the
domestic demand of smartphones continued to drop. The Group’s total sales volume
of products was 8.14 million units, representing a decrease of 32.6%
year-on-year, of which the sales volume of non-laminated LCD module products
was 4.07 million units, a decline of 49.4% year-on-year; while that of
laminated LCD module products was 4.07 million units, an increase of 0.8%
year-on-year.
Due to
decreasing production targets of major smartphone manufacturers in the fourth
quarter of 2017, the market conditions turned unfavourable as compared with the
same period last year, so that the Group’s average selling price of non-laminated LCD
module products and laminated LCD module products recorded a year-on year drop of 8.9% and 5.3%, respectively.
However, owing to the optimisation of the product portfolio, the proportion of
sales volume of laminated LCD module products has been raised to 50%, driving
the average selling price of the Group in the first quarter of 2018 to RMB70.2,
representing an increase of 4.4% year-on-year. During the Period, the Group’s
revenue amounted to RMB572 million, representing a decrease of 29.6%
year-on-year, among which the revenue of laminated LCD module products was
RMB381 million, a drop of 4.5% year-on-year; while that of non-laminated LCD
module products was RMB191 million, a decrease of 53.9% year-on-year.
Given
the market demand on full-screen products, the Group acted swiftly, and
successfully produced the first batch of full-screen and full-screen
notch-cutting module products nationally including LTPS products in July 2017
and February 2018, respectively. In the meantime, the Group captured the
opportunity brought forth by the Internet of Things, and launched a partnership
with a renowned Internet company in March 2018, which introduced a new smart
home end product carrying the Group’s display modules to the market.
Mr. LI
Jian, Chief Executive Officer of Ch Display Opt, said, “Under the influence of the
recent trade war between the United States and China as well as
the geopolitical situations, it is expected that the competition
in the module industry will continued to be fierce in 2018. The Group will continue
to further explore the synergies with Wuhan CSOT, so as to sustain the
enhancement of the Group’s operational capabilities and competitiveness. Along
with the commencement of mass production of Wuhan CDOT, the joint venture, in
the
fourth quarter of 2017,
it is expected that Wuhan CDOT will be able to
provide customers with one-stop solutions that combine panel and module, which
will allow
the Group to attain more new top-tier branded customers. In the meantime, the Group will aim to leverage on the
expertise and the increasingly stable panel resources of Wuhan CSOT to
constantly optimise the product mix during industrial consolidation stage, and
increase the sales proportion of high-end products such as LTPS products,
in-cell products, and full-screen products, together with the new capacity of
Wuhan CDOT, this will allow the Group to further expand its market share. The
Group will actively explore the feasibility of venturing into other business,
so as to lay a sound foundation for future operation to maximise the profit and
value for the Group and its shareholders.”
The Group’s revenue by product segments
and their respective year-on-year change during the Period are as follows:
|
(unaudited)
|
Three months ended 31 March 2018 (RMB million) |
Three months ended 31 March 2017 (RMB million) |
Change (%) |
|
TFT LCD Module |
|
|
|
|
Non-laminated modules |
191 |
414 |
-53.9% |
|
Laminated modules |
381 |
399 |
-4.5% |
|
Total |
572 |
813 |
-29.6% |
The
Group’s sales volume by product segments and their respective year-on-year
changes during the Period are as follows:
|
(unaudited)
|
Three months ended 31 March 2018 (‘000 units) |
Three months ended 31 March 2017 (‘000 units) |
Change (%) |
|
TFT LCD Module |
|
|
|
|
Non-laminated modules |
4,074 |
8,043 |
-49.4% |
|
Laminated modules |
4,069 |
4,035 |
+0.8% |
|
Total |
8,143 |
12,078 |
-32.6% |
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 handheld mobile devices on an
ODM basis. Smartphone LCD module products of Ch Display Opt are welcomed by
domestic and overseas manufacturers with sales volume ranking among the top.
For more
information, please visit its website at www.cdoth8.com.
