China Display Optoelectronics Technology Holdings Limited Announces Unaudited Financial and Operating Data for the First Three Quarters of 2018

Revenue Increased by 6.8% Year-on-Year to RMB2.55 billion

Overall Sales Volume for a Single Month in September and the Third Quarter

Up by 57.3% and 19.0% Year-on-Year Respectively

HONG KONG, CHINA - Media OutReach - 25 October 2018 - China Display Optoelectronics Technology Holdings Limited("Ch Display 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 nine months ended 30 September 2018 (the "Period").

During the Period, the Group's revenue amounted to RMB2.55 billion, representing a year-on-year increase of 6.8%; and the sales volume was 32.6 million units, representing a year-on-year decrease of 3.9%. In September 2018, the Group passed the qualification requirements of a world-leading smartphone manufacturer to produce its module products, which has driven a year-on-year increase of 57.3% and 19.0% in overall sales volume for a single month in September and for the third quarter, respectively. As a result, the proportion of the Group's sales volume of laminated products increased significantly to 63.4% and the overall unit selling price of products increased by 11.1% to RMB78. In the meantime, as the Group constantly optimized its product mix, the revenue generated from laminated LCD module products amounted to RMB2.03 billion, representing a year-on-year increase of 36.9%; while the revenue generated from non-laminated LCD module products amounted to RMB520 million, representing a year-on-year decrease of 42.5%.

During the Period, full-screen products are still the main focus of the market. In view of this, the Group, together with its parent,Shenzhen China Star Optoelectronics Technology Co., Ltd. (深圳市華星光電技術有限公司), and its subsidiaries (collectively, "CSOT"), jointly developed various mid and high-endfull-screen notch-cutting module products (including LTPS and In-cell/On-cell products), so that the product mix was thereby further optimized and the proportion of the sales volume of mid andhigh-end products increased steadily. During the Period, the Group's full-screenproducts accounted for approximately 47.0% of the overall sales volume and the proportion ofthe sales volume of LTPS products increased from 38.1% for the first half of 2018 to 49.5%.

The Group has been striving to form a one-stop operation model of panel and module with CSOT. In September 2018, the Group and CSOT established cooperation with a well-known phone brand, indicating that the strategy deployed by the Group and CSOT to harness synergy and acquire new customers has obtained outstanding results. The Group will continue to focus on enhancing the synergistic benefits with CSOT, and utilize the network of CSOT to build business relationships with more first-tier customers and expand the base of brand customers, as well as leveraging on CSOT's advancing panel production techniques and gradually stabilized panel resources to increase the sales proportion of high-end products such as LTPS, In-cell and full-screen products, and continuously optimize the product mix at a time when the industry is undergoing consolidation.

The Management of Ch Display Opt said, "Although the operating environment in 2018 is relatively challenging, the Groupbelieves that opportunities lie within the challenges. As the industrial peak season approaches,through implementation of a series of adjustment measures by the Group and the cooperationformed with new customers, sales have significantly improved and the sales volumeand gross profit margin have gradually increased. For the long run, the Group remains cautiously optimistic about the development prospect ofthe display module business. Given the smooth progress of the sixth generation flexible LTPS-AMOLEDdisplay panel production line project of CSOT, it is expected to commence massproduction in the first half of 2019. The Group has jointly established a professional researchand development team with CSOT as well, which has been developing LTPS and active-matrixorganic light-emitting diode ("AMOLED") module product technology in order to lay a solidfoundation for the future operation development and create greater value for the Group and its shareholders."

The Group's revenue by product segment and their respective year-on-year changes during the Period are as follows:

The Group's sales volume by product segment and their respective year-on-year changes during the Period are as follows:

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.