Net Profit Increased by 27.0%
YOY
Further Develop High-end
Products to Broaden Revenue Sources
Financial Highlights (Audited)
Twelve months
ended 31 December
|
RMB '000
|
2017
|
2016
|
Change (%)
|
Revenue
|
3,464,573
|
3,678,153
|
-5.8
|
Gross
profit
|
279,819
|
205,523
|
+36.1
|
Profit attributable to owners of the
parent
|
115,734
|
91,110
|
+27.0
|
Basic earnings per share
(RMB cents)
|
5.75
|
4.89
|
+17.6
|
Proposed final dividend per share
(HK cents)
|
2.00
|
2.00
|
-
|
HONG KONG, CHINA - Media
OutReach - 26 March 2018 - China
Display Optoelectronics Technology Holdings Limited ("Ch Display Opt" or
the "Company", together with its subsidiaries, the "Group"; HKSE stock code:
334) today announces its results for the twelve months ended 30 December 2017
(the "Review Period").
During the Review Period, sales
of the Group's high-end products, including in-cell LCD and on-cell LCD module
products as well as low temperature poly-silicon ("LTPS") LCD module products
grew steadily, which facilitated the growth of the average selling price from
RMB49.4 for the same period last year to RMB64.9 for the Review Period,
representing an increase of 31.5% year-on-year. During the Review Period, owing
to the rise in total average selling price and the steady growth in the cost of
major raw materials and upstream components, the Group's revenue remained
relatively stable at RMB3.46 billion, representing a slight drop of 5.8%
year-on-year. The Group reported gross profit of RMB280 million, representing
an increase of 36.1% year-on-year. Gross profit margin was 8.1%, representing
an increase of 2.5 percentage point; and profit attributable to owners of the
parent amounted to RMB116 million, representing an increase of 27.0%
year-on-year. Basic earnings per share was RMB5.75 cents, increased by 17.6%
year-on-year. The Board proposed a final
dividend of HK$2 cents per share.
During the Review Period, the
Group recorded sales volume of LCD module products of 53.4 million units,
representing a decline of 28.4%. The decrease was mainly attributable to the
reduction of inventory by some smartphone manufacturers and the promotion of
full-screen device products in the market during the first half of 2017, which
resulted in the shortage of components across the upstream supply chain. The
Group's sales volume was recovered in the third quarter, in addition to being
affected by the delay of peak season to the fourth quarter, the sales volume in
the second half year increased by 50.6%, comparing to the first half year. The
revenue of non-laminated modules and laminated modules of the Group decreased
by 2.9% and 7.4% respectively, which were affected by the decrease of sales
volume.
Wuhan China Display
Optoelectronics Technology Company Limited ("Wuhan CDOT"), the joint venture
between the Group and Wuhan China Star Optoelectronics Technology Co., Ltd
("Wuhan CSOT"), officially commenced mass production in the fourth quarter of
2017. The production plate of Wuhan CDOT is located in the proximity of Wuhan CSOT's production plant which provides customers with
one-stop solutions from panel to module. In terms of flexible panel supply, the
main plant and power plant of Wuhan CSOT's the 6th generation flexible
LTPS-AMOLED display panel production line ("Project t4") capped in advance in
December 2017, and is expected to be in operation by the first half year of 2019
and commence mass production by the first half year of 2020. With the
completion of the project, the supply chain of the upstream panel of the Group
will be improved, and the competitiveness in small and medium size high-end
displays, especially flexible displays, will also increase.
Given the market demand of
full-screen products, the Group has endeavoured to initiate active research and
development of relevant technologies. In July 2017, the Group was engaged by a
renowned French mobile phone brand to manufacture full-screen module products,
which was the first batch of official mass production nationally. So far, the
Group has cooperated with Wuhan CSOT to develop a variety of full-screen LTPS
products, and mastered the technology of notch-cutting. The Group will continue
to take advantage of its excellent market responsiveness and commitment to
continuous technology investment to boost its sales volume of full-screen
module products and to meet market demand.
During the Review Period, the
Group has entered into a MOU with Brightpro Resources Limited ("Brightpro
Resources"), a wholly owned subsidiary of Taiwan-based prominent TFT-LCD
products manufacturer HannStar Display Corporation Limited ("HannStar", 6116.TW),
with regard to the possible acquisition of 51% to 81% interest in HannStar
Display (Nanjing) Corporation ("HannStar Display (Nanjing)") ("Possible
Acquisition") for the purposes of broadening revenue sources and improving the
products' gross margin. Upon the materialisation of the Possible Acquisition,
the Group will be able to acquire a major stake in HannStar Display (Nanjing). Having
Brightpro Resources remained as a minority shareholder of HannStar Display
(Nanjing) after the Possible Acquisition will also provide more opportunities
for cooperation between the Group and HannStar, the mother company of Brightpro
Resources.
In order to expand its product
business, the Group partnered with Baidu whose smart home terminal incorporated
the Company's display module for the first time has been officially launched.
Looking ahead, Mr. LI Jian, Chief Executive Officer of Ch
Display Opt, said, "In 2018, a robust
recovery is expected in the domestic and even the global economy, but the
industry is still undergoing a period of consolidation with continuously fierce
competition. The Group will proactively
respond to market changes and strengthen our core capability in light of
industry development, so as to keep on enhancing the Group's viability and
competitiveness. With the increasingly stable panel supply from
Wuhan CSOT, the Group expects substantial increase in the sales proportion of
full-screen products, which will allow the Group to further expand its market
share. In the meantime, the Group will also keenly branch into the automotive
display modules market and the smart home terminal business so as to capture
the opportunity brought forth by the Internet of Things, and lay a sound
foundation for future operations, thus maximising the profit and value for the
Group and its shareholders."
The Group's revenue and sales volume by product segments and
their respective year-on-year change during the Review Period are as follows:
Twelve months ended 31
December
|
|
|
2017
|
2016
|
Changes
(%)
|
|
|
TFT LCD module - Revenue (RMB '000)
|
|
Non-laminated modules
|
1,291,789
|
1,330,849
|
-2.9
|
|
Laminated modules
|
2,172,784
|
2,347,304
|
-7.4
|
|
Total
|
3,464,573
|
3,678,153
|
-5.8
|
|
TFT LCD
module -
Sales Volume('000 units)
|
|
Non-laminated modules
|
31,767
|
45,390
|
-30.0
|
|
Laminated modules
|
21,606
|
29,126
|
-25.8
|
|
Total
|
53,373
|
74,516
|
-28.4
|
|
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.
|