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EQS-News / 21/03/2017 / 18:23 UTC+8
*For Immediate Release*
*China Display Optoelectronics Technology Holdings Limited
Announces 2016 Annual Results
* * * * * **
*Gross Profit Rises Sharply by approximately 50%
Proposed Final Dividend of HK$2 cents Per Share
Continue to Optimize Product Portfolio, Unleash the Value of Joint Venture,
Capture the Share in High-end Market*
(21 March 2017, Hong Kong) *China Display Optoelectronics Technology
Holdings Limited *(formerly known as TCL Display Technology Holdings
Limited, "Ch Display Opt" or the "Group"; HKSE stock code: 334) is pleased
to announce its results for the twelve months ended 31 December 2016 ("the
Review Period").
During the Review Period, the Group recorded a revenue of approximately
RMB3.68 billion while the total sales volume accounted for approximately
74.5 million, representing an increase of 64.0% and 27.7% year-on-year
respectively; in addition, the Group's gross profit increased by 47.2%
year-on-year to approximately RMB206 million. Meanwhile, the gross profit
margin of the Group was 5.6% for the Review Period, representing a decrease
of 0.6 percentage point compared to the same period last year. The decrease
was mainly due to an escalation of upstream panel prices in the first half
of 2016, and the situation has been relieved gradually during the second
half of the year. Furthermore, driven by the improved product mix and the
growth of sales volume, the Group managed to make a turnaround from loss to
net profit of approximately RMB91.1 million as compared to the same period
last year. The Board proposed a final dividend of HK$2 cents per share.
During the Review Period, the product sales of the Group performed well,
compared to the same period last year, the revenue derived from China rose
by 106.1% to approximately RMB2.28 billion; for the overseas market, the
Group's revenue in South Korea increased to approximately RMB375 million,
representing an increase of 421.5% year-on-year, and the growth was mainly
fueled by the sales of a globally renowned South Korean consumer electronics
brand.
During the Review Period, revenue and sales volume of the Group's laminated
LCD modules accounted for approximately RMB2.35 billion and 29.1 million
units respectively, representing a significant increase of 159.2% and 165.1%
over the same period last year respectively. Its revenue contribution also
increased to 63.8% from 40.4% in the Review Period. Revenue and sales volume
of non-laminated LCD module products was approximately RMB1.33 billion and
45.4 million units respectively, down by 0.5% and 4.2% over the same period
last year respectively. The decrease was due to the Group's adjustment of
its product mix to focus on laminated products which generally have a higher
unit selling price.
As the Group's fellow subsidiary, Wuhan China Star Optoelectronics
Technology Co., Ltd. ("Wuhan CSOT"), formally launched the 6th generation
production lines of LTPS display panel under the Project t3 in February
2016, the Group has been supplied with small batches of LTPS display panels
which are required for LTPS LCD module production since the second quarter
of 2016. The Group expects that the supply of LTPS display panels by Wuhan
CSOT will be increased progressively in 2017, which will help the Group to
further satisfy the increasing demand of LTPS LCD module, thereby grabbing
the market share. In addition, in June 2016, the Group placed new shares and
successfully raised net proceeds of approximately HK$157 million in which
HK$150 million will be applied towards the establishment of Wuhan China
Display Optoelectronics Technology Company Limited ("Joint Venture") with
Wuhan CSOT, as funding for the expansion of the Joint Venture's automated
production lines of LTPS LCD modules. The fund will inject fresh momentum
into its future capital and business development. Meanwhile, to highlight
the advantages brought by the Joint Venture and precisely reflect its
business nature with a new corporate image, the Group officially changed its
name from "TCL Display Technology Holdings Limited" to "China Display
Optoelectronics Technology Holdings Limited" in January 2017.
Looking ahead, *Mr. LI Jian, Chief Executive Officer of Ch Display Opt*,
expressed, "The global economic outlook remains uncertain while the growth
in global sales of smartphones and tablets is slowing down, 2017 is set to
be a year with challenges and opportunities. With the rising demand for
high-end smart devices products, demand for high-end LTPS LCD modules will
continue to grow. We established the Joint Venture with Wuhan CSOT to
further expand our existing high-end LTPS LCD module production scale,
aiming to seize the potential in high-end market to expand our market
share," *Mr. Li* added, "along with the increasing demand, we forecast a
continuous growth in the sales of laminated LCD module products and LTPS LCD
module products in 2017. In order to enhance our core competitiveness, we
have set in place appropriate measures and will proactively uphold the
strategy for product R&D and product portfolio optimization. We hope to
explore top-notch brand customers and further expand our market share in
high-end product market, so as to generate higher profitability and value
for the Group and its shareholders."
- End -
*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 (<=10.1") in the region. Ch Display
Opt engaged 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.tcldisplay.com [1].
Document: http://n.eqs.com/c/fncls.ssp?u=INLHJKWICU [2]
Document title: CDOT_2016AR Press Release_Eng
21/03/2017 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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2: http://public-cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=69ae656ed90ce75aeaa70eec808feae9&application_id=556043&site_id=vwd&application_name=news
(END) Dow Jones Newswires
March 21, 2017 06:24 ET (10:24 GMT)
