Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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 2016

The Group's TV sales volume in China market recorded a decline of 4% and 1% year-on-year in December 2016 and in April to December 2016, respectively.

Highlights of the TV sales in China market in December 2016 are as follows:

  • Sales volume of Smart TV (4K) recorded a growth of 65% year-on-year

  • Sales volume of Smart TV (4K) accounted for approximately 52%, compared to approximately 30% year-on-year

  • Sales volume of all Smart TV (including 4K and Non-4K) reached approximately 88%, compared to approximately 79% year-on-year

    Gross profit margin and the average selling price of Smart TV (4K) is the highest among all TV series.

    The Group recorded the following numbers of users in China market using Skyworth Smart TV as at 31 December 2016:

  • Total volume of activated internet TV: 20,191,294

  • Smart TV weekly active volume: 9,077,608 (Note 1)

  • Smart TV daily active volume: 7,712,859 (Note 2)

In November 2016 and for the 12 months ended 30 November 2016, the offline TV market shares of the Group ranked at number 1 in both sales volume and revenue for all TV and 4K UHD TV in China market.

The Group's TV sales volume in the overseas market recorded a growth of 42% and 62% year-on-year in December 2016 and in April to December 2016, respectively.

The Group's total TV sales volume recorded a growth of 6% and 18% year-on-year in December 2016 and in April to December 2016, 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 2016

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

December 2016

December 2015

December 2016

vs.

December 2015

April to December 2016

April to December 2015

April to December 2016

vs. April to December

2015

Unit ('000)

Unit ('000)

Increase/ (Decrease)

Unit ('000)

Unit ('000)

Increase/ (Decrease)

1,192

1,248

(4%)

7,487

7,580

(1%)

615.1

373.9

65%

3,351.5

2,026.9

65%

439.7

609.8

(28%)

2,924.9

3,099.8

(6%)

137.5

264.3

(48%)

1,210.7

2,453.7

(51%)

544

384

42%

5,473

3,381

62%

544.2

384.2

42%

5,472.5

3,377.8

62%

-

-

-

-

3.4

(100%)

1,736

1,632

6%

12,960

10,961

18%

TV sales volume

China Market (Note 3)

which comprises:

  • Smart TV (4K) (Note 4)
  • Smart TV (Non-4K) (Note 4)
  • Other Flat Panel TV (Note 4)

    Overseas Market (Note 5)

    which comprises:

  • LED LCD TV (Note 4)
  • Other TV (Note 4)

Total TV sales volume

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

Note 4: Flat Panel TV refers to TV with liquid crystal display ("LCD TV") and light emitting diode backlights ("LED"), LCD TV with cold cathode fluorescent lamp backlights ("CCFL"), LCD TV with three dimensional ("3D") display technology, 3D LED LCD TV using Smart computing and storage technology ("Smart TV (Non-4K)") and also Smart TV with 4Kx2K Ultra high-definition panels ("Smart TV (4K)"). Other TV included CRT TV which refers to TV with cathode ray tubes ("CRT").

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.

TV in China Market

Product Mix

Sales volume of Smart TV with ultra-high definition (4Kx2K) panel ("Smart TV (4K)") recorded a growth of 65% and 65% year-on-year in December 2016 and in April to December 2016, respectively. It accounted for approximately 52% and 45% of the sales volume of Smart TV (4K) in December 2016 and in April to December 2016, respectively, compared to approximately 30% and 27% of TV sales volume in December 2015 and in April to December 2015, respectively.

Market Shares

According to the extrapolated TV sales data based on the market survey covering 1,505 cities with over 6,700 retail terminals in mainland China performed by Beijing All View Cloud Data Technology Co., Ltd (a market research and marketing consulting company focusing on consumer electronic and home appliance industry, the establishment of which was initiated and advocated by China Video Industry Association in China) the Group's offline market shares among local and foreign TV brands in China for the 12 months ended 30 November 2016 are as follows:

Ranking

Market share

All TV

- Volume

1

17.7%

- Revenue

1

17.5%

4K UHD TV

- Volume

1

20.6%

- Revenue

1

18.7%

The Group's offline market shares for November 2016 are as follows:

Ranking

Market share

All TV

- Volume

1

16.5%

- Revenue

1

17.4%

4K UHD TV

- Volume

1

19.3%

- Revenue

1

19.0%

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 Lam Shing Choi, Eric

Company Secretary

Hong Kong, 6 January 2017

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

* For identification purpose only

Skyworth Digital Holdings Limited published this content on 06 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 06 January 2017 09:52:08 UTC.

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