Sales Revenue Significantly Increased by 48.9% to Approximately RMB 626 Million
Laminated Modules Products Drives the Full Range of Business Growth Continuously
(12 April 2016, Hong Kong) TCL Display Technology Holdings Limited ("TCL Display" or the "Group", Stock Code: 334) is pleased to announce its results for the three months ended 31 March 2016 ("the Period").
In the face of continued weakened global economy and low consumer sentiment, the global display module and touch panel markets have been adversely affected. However, through new clients exploration, display module technology optimisation and the sales promotion of high-end products, the Group recorded remarkable growth in sales volume and revenue. During the period, the Group recorded a revenue of approximately RMB 626 million, representing a significant increase of 48.9% compare to the 3 months ended 31 March 2015. The sales volume recorded a year-on-year increase of 17.8% to approximately 14.7 million units.
To reflect the changing demand for LCD module products arising from the smart devices market, the Group's sales volume of LCD modules will be segregated into laminated modules and non-laminated modules to replace previous classification which was based mainly on module size, with effect from 2016. During the period, benefitted from smart device users' pursuit of high-end quality products, the sales revenue and volume of laminated LCD modules was approximately RMB 405 million and 5.46 million units with a year-on-year increase of around 363% and 640% respectively. Its proportion to total revenue increased to 64.6% from 20.8% year-on-year. Meanwhile, the revenue and sales volume of non-laminated LCD modules was approximately RMB 222 million and 9.2 million units, representing a year-on-year decrease of 33.5% and 21.4% respectively.
During the Q1 of FY2016, the Group continued to strengthen its capabilities in R&D of products and technologies and boost product innovation so as to maintain the competitiveness of its products. In order to meet the smart device users' growing demand for higher display quality and power efficiency, on-cell embedded module products have been put into mass production by the Group in 2015. As the supply of low-temperature poly-silicon (LTPS) glass panel is expected to increase in the second half of 2016, the Group is confident that stable supply will be secured to meet the market need. On-cell and LTPS LCD module products are expected to account for a greater proportion of the Group's total sales, and drive up the sales of the Group. In addition, the Group's development effort devoted to in-cell embedded module products has also borne fruits. The mass production begins, and the first shipment is scheduled for the first half of 2016.
The Group possesses advanced production technology and facilities, and it is committed to providing customers with high quality and competitive products. As at 31 March 2016, the Group's plant in Huizhou City, Guangdong Province covered a total gross floor area of over 44,000 sq. m, and was equipped with 24 LCD modules production lines (including 28 units of full lamination assembling equipment). As Wuhan China Star Optoelectronics Technology Co., Ltd. (CSOT), a subsidiary of TCL Corporation, the ultimate controlling shareholder of the Company, launched its 6th generation LTPS glass panel production line in February 2016, the supply of materials for the Group's production of LTPS display panel can be better ensured, thus relieving the Group from the risk of supply shortage. In addition, depending on the close cooperation between the Group and CSOT, the vertical integrated supply chain between CSOT, TCL Display and TCL Communication formed within the TCL Group will increase the productivity and profitability, and efficiently reduce the negative impact of the increase in production costs.
Mr. Li Jian, the Chief Executive Officer of TCL Display, stated, "During the period of Q1 2016, the Group outperformed the peers, and it assured the success of our business development. Along with the momentum of success, we will keep the professional, serious and customer-oriented attitude in the future, hoping to maintain the excellent performance among competitors. Looking ahead, the product technology innovation will still be our focus, and we will proactively strengthen business cooperation with end-customers, and strive to identify new clients in order to extend sales scopes and expand the market share. Meanwhile, we will develop more diversified laminated module products, heading forward to the direction of high-end products, setting the long-term goal to be the world-leading display module manufacturer."
The Group's revenue and sales volume by product segments and their respective year-on-year change during the Period are as follows:
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About TCL Display
Headquartered in China, TCL Display 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. TCL Display primarily engaged 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 TCL Display 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.
Issued by Cornerstones Communications Ltd. on behalf of TCL Display Technology Holdings Limited. For further information, please contact:
Cornerstones Communications Ltd.
Prudence Lai / Wendy Lau / Edward Siu
Tel: (852) 2903 9291 / 2903 9286 / 2903 9299
Email: tcl.display@cornerstonescom.com
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