Enters the Brands’ Direct Supply Chain to Strengthen Long-term Development
HONG KONG, CHINA - Media OutReach - 30 January 2019 - China Display Optoelectronics Technology Holdings Limited ("Ch Display Opt" or the "Company", together with its subsidiaries, the "Group"; HKSE stock code: 334) has been striving to deepen its cooperation with Wuhan China Star Optoelectronics Technology Co., Ltd. ("Wuhan CSOT", 武漢華星光電技術有限公司), the fellow subsidiary of the Group, so as to win first-tier brand customers through the one-stop business model that combines panel and module from both parties. After the Group moved into the supply chain of brand customer Xiaomi with Wuhan CSOT in 2017, the Group has made satisfying progress in customer development. Together with Wuhan CSOT, the Group has built partnerships with a number of first-tier brand customers, including Samsung, Huawei, Vivo and Oppo, and thus established a solid and strong customer base.
According to All View Cloud, global smartphone shipments for the fourth quarter of 2018 remained basically level year-on-year with a slight increase. However, Wuhan CSOT benefited from the strong growth in customer base and achieved an outstanding performance: its shipment volume of LTPS panel reached 24.8 million units, ranking the third and the second worldwide and nationwide, respectively, with the fastest growth rate globally. Since Wuhan CSOT commenced the mass production of its 6th generation LTPS panel line in 2016, it has established stable and mutually beneficial partnerships with multiple well-known brand customers at home and abroad in just over two years.
The Group has been leveraging the momentum brought by Wuhan CSOT to deepen the synergies generated by the vertically integrated supply chain. In order to meet the customers' demand for smart products, the Group has initiated active research and development of new products and technologies to strengthen its core competitiveness. The Group is also dedicated to exploring the feasibility of venturing into other new businesses, for example, making a foray into the Internet of Things ecosystem to develop a variety of display products, so as to lay a solid foundation for future operation development.
The Management of Ch Display Opt said, "Given that the market share in the global smartphone industry has become increasingly concentrated, the Group will continue to strengthen its synergy with Wuhan CSOT by leveraging its progressively advanced panel production techniques and deepening partnerships with a large number of first-tier brand customers, in order to propel the long-term and stable development of the Group."
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.