Skyworth Digital : Announcements and Notices - TV Sales in December 2017

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SKYWORTH DIGITAL HOLDINGS LIMITED

(創維數碼控股有限公司)*

（Incorporated in Bermuda with limited liability）

(Stock Code: 00751)

TV SALES IN DECEMBER 2017

The Group's TV sales volume in China market recorded a decline of 26% and 20% year-on-year in December 2017 and in April to December 2017, respectively.

Sales volume of 4K TV in China market recorded a decline of 13% year-on-year in December 2017, accounted for approximately 61%, compared to approximately 52% year-on-year. Gross profit margin and the average selling price of 4K TV is the highest among all TV series.

Smart TV with internet function and self-developed coocaa TV operating system becomes the majority of the Group's product mix in China market.

The Group recorded the following numbers of users in China market using Skyworth Smart TV as at 31 December 2017:

•  Total volume of activated internet TV: 26,338,485

•  Smart TV weekly active volume: 12,719,677 (Note 1)

•  Smart TV daily active volume: 9,845,769 (Note 2)

The Group's TV sales volume in the overseas market recorded a growth of 63% and 15% year-on-year in December 2017 and in April to December 2017, respectively.

The Group's total TV sales volume recorded a growth of 2% and decline of 5% year-on-year in December 2017 and in April to December 2017, respectively.

Note 1: Smart TV weekly active volume is average weekly number of smart TV which had online in recent 4-week period. Note 2: Smart TV daily active volume is average daily number of smart TV which had online in recent 7-day period.

The board of directors (the "Board") of Skyworth Digital Holdings Limited (the "Company", together with its subsidiaries, the "Group") wishes to present the following unaudited figures:

TV SALES IN DECEMBER 2017

The unaudited figures relating to the Group's sale of television sets ("TV") are as follows:

December 2017

December 2016

Unit ('000)Unit ('000)

TV sales volume

China Market (Note 3) which comprises: - 4K TV (Note 4)

- Non-4K TV

883 535.5 347.4

1,192 615.1 577.2

April to December 2017

April to December 2016

Unit ('000)Unit ('000)

(26%)

5,962

7,487

(20%)

(13%) (40%)

3,362.3 2,599.4

3,351.5 4,135.6

0% (37%)

Overseas Market (Note 5)Total TV sales volume

889 1,772

544 1,736

63% 2%

6,302 12,264

5,473 12,960

15%

Note 3:The TV sales volume or revenue of the Group in China market relates to the Group's sale of TV, substantially underbrand, entirely in China market.

Note 4:

4K TV refers to TV with 4Kx2K ultra high-definition panel, including liquid crystal display ("LCD") with light emitting diode backlights ("LED") or organic light emitting diode ("OLED") , mostly using smart computing and smart storage technology.

Note 5:

The great majority of TV manufactured by the Group in the overseas market is manufactured for foreign TV brands owned by third parties for sale in overseas. Furthermore, the sales volume or revenue in the overseas market includes that relating to TV sold in complete-knocked down and semi-knocked down forms.

Please note that all data above are unaudited and therefore may differ from the audited data.

By order of the Board

Skyworth Digital Holdings Limited

Lai Weide

Chairman of the Board

Hong Kong, 8 January 2018

As at the date of this announcement, the Board of the Company comprises Mr. Lai Weide as the Chairman of the Board; Mr. Liu Tangzhi as executive director and the chief executive officer; Ms. Lin Wei Ping and Mr. Shi Chi as executive directors; Mr. Yang Dongwen as non-executive director; and Mr. Li Weibin, Mr. Cheong Ying Chew, Henry and Mr. Li Ming as independent non-executive directors.

* For identification purpose only