Skyworth : OVERSEAS REGULATORY ANNOUNCEMENT - 2020 ANNUAL RESULTS OF SKYWORTH DIGITAL CO., LTD.

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 GROUP LIMITED 創維集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 00751)

OVERSEAS REGULATORY ANNOUNCEMENT

2020 ANNUAL RESULTS OF SKYWORTH DIGITAL CO., LTD.

This announcement is made by the board of directors (the "Board") of Skyworth Group Limited (the "Company") pursuant to Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Skyworth Digital Co., Ltd. ("Skyworth Digital", Shenzhen Stock Code: 000810), an A-share listed company on the Shenzhen Stock Exchange and a non-wholly owned subsidiary of the Company, has issued an announcement relating to its audited annual results for the twelve months ended 31 December 2020 (the "Announcement"). Set out in the Appendix hereto is an extract of certain information in the Announcement. The board of directors of Skyworth Digital approved the profit appropriation for ordinary shares as follows: distribute cash dividend amounted to RMB1.00 (tax inclusive) for every 10 shares to all shareholders of Skyworth Digital, without issuing bonus share and without transferring from provident funds to increase share capital. The total dividend amount in the Announcement is based on the total number of 1,063,363,952 shares as at 28 February 2021, the actual total dividend will be based on the total number of shares on the equity registration date when the equity distribution is implemented. The above appropriation will be subject to the approval by shareholders in 2020 annual general meeting of Skyworth Digital.

Shareholders of the Company and potential investors should take note that the Announcement and the full version of the annual report of Skyworth Digital in Chinese will be published on the information website of the Shenzhen Stock Exchange (http://www.cninfo.com.cn/).

By order of the Board

Skyworth Group Limited

Lai Weide Chairman of the Board

Hong Kong, 22 March 2021

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, Mr. Shi Chi, Mr. Lin Jin and Mr. Lam Shing Choi, Eric as executive directors; and Mr. Li Weibin, Mr. Cheong Ying Chew, Henry and Mr. Hung Ka Hai, Clement as independent non-executive directors.

Appendix

Stock Code: 000810

Stock Name: Skyworth Digital

Announcement Number: 2021-008

Extract of 2020 Annual Results Announcement of

Skyworth Digital Co., Ltd.

I. Important Notes

1. This extract is compiled based on the full text of the annual report. Investors should read the full text of the annual report carefully on the media designated by the China Securities Regulatory Commission to gain a comprehensive view of the business performance, financial position and future development plan of the Company. 2. The Board of Directors and its members, the Board of Supervisors and its members, as well as the senior management of the Company confirm that the information contained in the annual report is authentic, accurate and complete and is free from false representations, misleading statements and material omissions. And they jointly and severally accept legal responsibility therefor.

• 3. All directors attended the board meeting for reviewing this report.

• 4. Prompt of non-standard audit opinion

□ Applicable √ N/A

5. Plans on profit distribution of ordinary shares or transfer from capital reserve to share capital during the reporting period reviewed by the Board √ Applicable □ N/A

Transfer from provident funds to increase share capital:

□ Yes √ No

The Board of the Company approved the profit appropriation for ordinary shares as follow: On the basis of the total equity on the date of record as determined in the Announcement on Equity Distribution for 2020, a cash amount of RMB1.00 (tax inclusive) for every 10 shares is distributed to all shareholders. No bonus shares are distributed and no capital reserve is converted into share capital.

Plans on profit distribution of preferred shares during the reporting period approved by the board by way of resolution

□ Applicable √ N/A

II. Basic Information of the Company

1. Profile of the Company

Stock name	000810
Listing stock exchange	Shenzhen Stock Exchange
Contact person and information	Secretary of the board	Securities representative
Name	Zhang Zhi	Liang Jing
Unit A, 16/F, Skyworth Mansion,	Unit A, 16/F, Skyworth Mansion,
Office address	Gaoxin Ave. 1.S., Hi-tech Park,	Gaoxin Ave. 1.S., Hi-tech Park,
Nanshan District, Shenzhen	Nanshan District, Shenzhen
Fax	0755-26010028	0755-26010028
Telephone	0755-26010018	0755-26010680
Email	[e-mail]	[e-mail]

Skyworth Digital

2. Principal activities or products during the reporting period

(I) Principal activities of the Company during the reporting period

The Company is mainly engaged in the R&D, production, sales, and services involving digital intelligent terminals, broadband connection equipment and related software systems and platforms, primarily targeting domestic telecommunications/broadcast operators, overseas telecommunications/integrated operators, as well as retail channel markets. The Company's product offerings include: intelligent terminals (4K smart set-top boxes, integrated terminals, VR terminals, IP cameras, etc.); equipment for broadband connection, including PONs, Wi-Fi routers, Cable Modems, CPEs, etc.; professional displays, such as small and medium-sized display modules, LED display devices, on-board display touch systems; on-board digital LCD dashboards, etc.; and operation services, including smart parks, smart education services, and B2B after-sale value-added services. Based on the telecommunications and broadcasting networks and the Internet, the Company joins hands with various strategic partners, such as domestic and foreign telecom or integrated operators, content providers, application providers and channel providers, to create an intelligent eco-chain around "platforms + contents + terminals + applications".

(II) Development stage and cyclical characteristics of the industry during the reporting period

The Company is positioned as a technical solution provider of smart devices and systems such as digital set-top boxes and broadband communications. Engaged in the ultra-high-definition (UHD) sector, its business involves related terminal presentation, network connection, and industry applications. (1) With progress in the integration of telecom, broadcasting and Internet networks, domestic telecom operators (China Telecom, China Mobile, China Unicom) have fully developed their IPTV set-top box and Internet OTT set-top box businesses. Along with the increasing market penetration, broadcasting & cable TV business has natural advantages in the creativity, production and dissemination of audio and video contents, in addition to an extensive user base. Broadcast operators has been exploring the operating model of "intelligent broadcasting", accelerating the integration of 5G and UHD ecosystems, and improving the approaches and quality of operation services. The competitive landscape of IPTV/OTT and cable set-top boxes has gradually stabilised. Based on such technologies as 4K and 8K UHD video playback, AI, Internet of Things (IoT) and voice control, future market needs will primarily derive from new broadband users and product upgrades. (2) With the advancement of the UHD video industry, smart home industry and 5G network in China, there is an increasing demand for higher landline broadband speeds to ensure comprehensive and fast Internet services for users. According to the "Statistical Bulletin of Telecommunications Industry Communications for 2020" published by the Ministry of Industry and Information Technology of China, the three backbone telecommunications companies had a total of 484 million landline broadband users as of the end of 2020, including 6.4 million accounts with an access rate of 1000 Mbps or above, with a rapid increase of 5.53 million accounts over the end of the previous year. At present, most broadband users in China have a bandwidth of 50Mbps to 100Mbps, and only 1.32% of them have a Gigabit landline broadband connection. The ongoing promotion of Gigabit broadband among household users is also technological upgrade of optical access from GPON to 10GPON, and networking from Wi-Fi5 to Wi-Fi6. A large-scale upgrade is also being ushered in for the corresponding broadband connection devices. (3) The integration, innovation, development and applications of the next generation of information technology, such as UHD video and 5G, Gigabit optical broadband, cloud computing, big data, IoT, AI, etc., play an important role in stimulating economic growth and information consumption. In particular, with ongoing COVID-19 epidemic,such technologies are becoming a key support for industrial innovation and breakthroughs, as well as economic and social transformation and upgrade. The Company actively explores the industrial integration in the key areas of UHD video + dual Gigabit network and industrial Internet, smart homes, smart parks, smart education, smart cities and AI, such as on-board touch display systems, on-board digital LCD dashboards, VR+ medical/education/games/Party building, and UHD commercial displays, provide new momentum for the digital transformation of traditional industries.

The Company continues to focus on businesses with overseas telecommunications and integrated operators. Its digital set-top boxes, broadband connection devices and VR products are already sold in bulk in Africa, Europe, India, Southeast Asia, the Middle East, Latin America and other regions. The global demand is still huge for future broadband connection and the derivative digital and IoT services. At the same time, technological progress, applications and innovation continue to boost the demand for Internet traffic. The fundamental driving force behind the sectors of network connection and UHD continues to grow. In view of the abundant contents of 4K UHD TV, Android TV, OTT, IoT, AI, VR and Netflix in overseas markets, there is huge iteration demand for smart set-to boxes integrated with broadband connection and smart gateways. Upgrades and leaps are also looming for related technical systems and development levels.

After nearly two decades of development, innovation and transformation, the global digital box industry is currently moving towards digitalization, UHD and integration, with constant iteration and evolution of smart and multi-functional devices. Domestic broadcast operators, the three major telecom operators, and even global telecommunications and integrated operators have basically the same needs. However, their focuses and development stages are not synchronised in terms of product features, technologies and solutions. And there are no obvious cyclical characteristics in the sector where the Company is located.

(III) Presence of the Company in the industry

Founded in 2002, the Company is one of first national high-tech enterprises engaged in the R&D, design, production and sales of digital smart set-top boxes. According to the data of Guideline Research and from other resources, the Company as a whole is an industry leader in terms of market share in the domestic broadcast operators segment, sales of OTT intelligent terminals, sales of 4K cable set-top boxes, IPTV+OTT sales to the top three telecom operators in China, and exports to overseas markets. In terms of R&D, production supply chain and marketing, the Company adopts the strategy targeting at the global market. With its digital set-top boxes, integrated terminals and broadband connection products being sold across the world, the Company is a leader in the sector of digital smart set-top boxes in China and one of the largest in the world, being competitive and influential in both domestic and overseas markets.

3. Major financial information and financial indicators

(1) Accounting and financial highlights for the recent three years

Whether the Company needs to make retrospective adjustments or restate the accounting information of prior years √ Yes □ No

Causes for retrospective adjustment or restatement Business combinations under common control

Unit: RMB Yuan

2019	Increase or decrease over prior year	2018
2020
Before adjustment	After adjustment	After adjustment	Before adjustment	After adjustment
Operating revenue	8,507,806,781.17	8,895,624,062.35	8,901,854,678.66	-4.43%	7,762,616,543.11	8,151,194,465.68
Net profit attributable to listing company shareholders	383,695,074.99	632,002,094.35	626,238,234.25	-38.73%	327,946,324.11	324,847,687.67
Net profit attributable to listing company shareholders after non-recurring profit or loss	346,902,768.39	587,650,710.95	587,650,710.95	-40.97%	288,186,655.01	288,186,655.01
Net cash flow generated from operating activities	2,446,407,146.99	60,738,527.13	58,971,576.72	4,048.45%	-77,562,911.40	-20,606,409.56

Basic earnings per share (RMB/share)	0.37	0.61	0.60	-38.33%	0.32	0.31
Diluted earnings per share (RMB/share)	0.36	0.59	0.59	-38.98%	0.30	0.30
Weighted average return on net assets	9.65%	18.41%	18.22%	-8.57%	11.46%	10.84%
End of 2019	Increase or decrease over the end of prior year	End of 2018
End of 2020
Before adjustment	After adjustment	After adjustment	Before adjustment	After adjustment
Total assets	10,250,139,368.1 9	10,541,262,868.03	10,547,268,510.2 7	-2.82%	8,349,143,939.5 4	8,661,161,145.91
Net assets attributable to listing company shareholders	4,202,130,475.86	3,763,156,124.26	3,763,972,043.87	11.64%	3,047,702,515.1 3	3,182,004,138.41

(2) Major financial data by quarter

Unit: RMB Yuan

Q1	Q2	Q3	Q4
Operating revenue	1,709,529,147.46	1,995,523,361.24	2,232,123,615.81	2,570,630,656.66
Net profit attributable to listing company shareholders	78,286,291.64	103,269,504.17	99,497,314.92	102,641,964.26
Net profit attributable to listing company shareholders after non-recurring profit or loss	39,521,732.81	88,727,852.86	98,396,891.30	120,256,291.42
Net cash flow generated from operating activities	734,411,685.73	610,176,738.52	162,240,614.12	939,578,108.62

Whether the above financial indicators or their totals are significantly different from related results disclosed in the Company's quarterly or interim reports

□ Yes √ No

4. Equity and shareholders

(1) Numbers of ordinary shareholders and preferred shareholders with restored voting rights, as well as particulars about shares held by the top ten shareholders

Unit: Shares

Total number of the Total number ofParticulars about shares held by the top ten shareholders

preferred	ordinary	preferred	preferred shareholders
shareholders whose	shareholders at the	shareholders	with restored voting
voting rights	51,777 end of the month	49,968 with restored	0 rights at the end of the
restored (if any) at	prior to the date of	voting rights at	month prior to the date
the end of the	disclosure of this	the end of the	of disclosure of this
reporting period	annual report	reporting period	annual report

Domestic non-state-owned legal person Foreign natural person

Shenzhen Chuangwei-RGB Electronics Co., Ltd.

Shi Chi

Suining Xing Ye Asset Management Co., Ltd.

Xie Xiongqing

Skyworth LCD Technology Co., Ltd.

State-owned legal person Domestic natural person

Total number of Total number ofShareholding Number of percentage

54.97% 584,548,508

3.46%

2.06%

1.91%Foreign legal person

1.87%

36,770,524

21,916,008

20,354,453

Number ofrestricted shares held

27,577,893

19,864,751

Pledged or frozen

Status of the shares

Pledged

0

20,000,000

Lin Weijian	Domestic natural person	1.79%	19,021,531
Li Pu	Domestic natural person	1.29%	13,683,310
Guangzhou office of Huaxia Securities	Other	0.88%	9,400,000
Tang Yan	Foreign natural person	0.61%	6,507,500
Wu Shezhen	Domestic natural person	0.54%	5,739,000
Description of the connected relationship or acting in concert of the above shareholders	(1) Shenzhen Chuangwei-RGB Electronics Co., Ltd. and Skyworth LCD Technology Co., Ltd. are subsidiaries of Skyworth Group Limited, and are persons acting in concert legally. (2) Lin Weijian was the supervisor of Yingtan City Pengsheng Investment Co., Ltd. Lin Weijing was the executive director and general manager of Yingtan City Pengsheng Investment Co., Ltd. Xie Xiongqing was the executive director and general manager of Yingtan City Pengsheng Investment Co., Ltd. Lin Weijian, Lin Weijing and Xie Xiongqing are relatives. Yingtan City Pengsheng Investment Co., Ltd., Lin Weijian, Xie Xiongqing, Lin Weijing are persons acting in concert legally. (3) Shi Chi is a director and general manager of the Company, while Tang Yan is his spouse and they are therefore persons acting in concert legally. (4) Apart from the aforesaid, the Company is not aware of any connected relationship that may exist among the other shareholders, nor does it know whether they are persons acting in concert according to the Measures for the Administration of the Takeover of Listed Companies.
Status of engagement in securities financing business by shareholders (if any)	As at 31 December 2020, Xie Xiongqing held an aggregate of 20,354,453 shares of the Company, of which 20,354,453 shares were held through the "investor credit securities account".

RGB Electronics Co., Ltd. and Skyworth

LCD Technology Co., Ltd. are subsidiaries of Skyworth Group Limited, and are persons acting in concert legally. (2) Lin Weijian nt Co., Ltd.

Lin Weijing was the executive director and general manager of Yingtan City Pengsheng Investment Co., Ltd. Xie Xiongqing was the executive director and general manager of Yingtan City Pengsheng

Xie Xiongqing are relatives. Yingtan City Pengsheng Investment Co., Ltd., Lin Weijian, Xie Xiongqing, Lin Weijing are persons acting in concert legally. (3) Shi Chi is a director and general manager of the Company, while e therefore persons acting in concert legally. (4) Apart from the aforesaid, the Company is not aware of any connected relationship that may exist among the other shareholders, nor does it know whether they are persons acting in asures for the Administration of the

(2) Total number of preferred shareholders and particulars about shares held by the top ten shareholders

□ Applicable √ N/A

There was no shareholding by holders of preference shares of the Company during the reporting period.

(3) Block diagram about property rights and control relationship between the Company and actual controller

5. Particulars about corporate bonds

Whether the Company has any corporate bonds publicly offered on the stock exchange, which were undue beforethe approval date of this annual report or else which were due but could not be redeemed in full

No

III. Management Discussion and Analysis of Operational Performance

1. Business review for the reporting period

The Company is committed to providing a comprehensive yet systematic portfolio of UHD device development, broadband network connectivity and UHD industrial application integrated solutions to users across the globe. The Company has been focusing on the R&D, production and distribution of digital smart devices, broadband access devices and integrated terminals, as well as R&D and design of software, systems and platforms, primarily targeting telecom operators and digital television operators. It also serves telecom and integrated operators in overseas markets across the globe, including Europe, Africa, the Middle East, India, Southeast Asia, Latin America and other regions. The Company provides related devices and solutions based on the customized needs of domestic and foreign operators.

The Company is mainly engaged in the business of manufacturing telecom devices. The evolving telecommunication technologies have promoted the continuous upgrading of products in the telecommunication industry, and drove companies in the industry to improve their comprehensive strength and to provide comprehensive solutions and products to better meet the comprehensive needs of operators and customers, while maintaining a leading position in the competition. The Company continued to consolidate its mature system structure planning and R&D ability, industry chain integration capability as well as supply chain and industrial strength. In response to the global outbreak of COVID-2019 pandemic in 2020, the Company was fully committed to the prevention and control measures strictly in compliance with relevant requirements of the local governments where its subsidiaries operate, to ensure orderly and safe operation. During the reporting period, the Company recorded an operating revenue of RMB8,507,806,800, with a year-on-year decrease of 4.43%. The net profit attributable to owners of the parent company was RMB383,695,100, with a year-on-year decrease of 38.73% and gross margin of 18.19%. And the net cash flows from operating activities stood at RMB2,446 million.

(I) Intelligent terminals & broadband connection

In 2020, the smart devices & broadband connection business accounted for 66.11% of the revenue of the Company. Main products and their functions and applications were as follows:

Categories of Main Products	Products	Functions and Applications
Digital smart set-top boxes	Including various types of set-top boxes, such as digital 4K, AndroidTV, IPTV and OTT	Provision of digital TV interactive video and other services through set-top boxes based on operator cable, satellite antenna, fibre-optic network, terrestrial broadcasting and the Internet, etc.
Integrated terminals	Including broadband integration (PON+Wi-Fi+Video), smart home gateway (including intelligent PON upstream gateway and IoT gateway), smart networking (supporting Wi-Fi Mesh, G.hn), etc. These are integrated smart devices for broadband network communication with multi-function including broadband access /networking/gateway/smart home/video services	Built-in smart OS system, mobile APP interaction, gigabit gateway supporting 10GEPON/XGPON. Powered by IP-based, communication, network and multimedia audio and video technologies, these devices provide users with Internet data access, Wi-Fi access, multimedia audio and video and voice services with strong service capabilities of large broadband access; intelligent applications and value-added services are also provided based on an integrated network platform
Broadband network connection devices	Covering fibre-optic access devices (GPON/EPON, 10GPON), Wi-Fi5/Wi-Fi6 wireless routers, Cable Modems, 4G/5G CPE, etc.	Providing operators and home users with multiple Internet access, home networking and telephone services, etc., through optical fibre, coaxial cable, network cable and mobile network, and supported by xPON, Docsis, Ethernet and 4G/5G communication technologies

In China, as the penetration rate of IPTV set-top box services by telecom operators communication operators continues to increase, the market landscape for set-top boxes by telecom and broadcast operators will tend tostabilise. At the same time, there will be extensive market opportunities for the broadband connection business, due to operators' deployment in the smart home business and the increasing demand for the development of broadband operation. In overseas markets, the emerging Android TV market and the traditional digital TV are booming. Overseas operators have a strong demand for broadband connection products and IoT deployment, in order to provide users with more diversified products and better value-added services. During the reporting period, the Company's segments of intelligent terminals and broadband connection withstood pressure arising from the impact of the COVID-19 epidemic as well as unfavourable elements in international trade, such as tension in Sino-US relations and Sino-Indian conflicts. With the full cooperation by relevant sections of R&D, sales, supply chain system and manufacturing, the Company recorded an operating revenue of RMB5,624,641,400, with a year-on-year decrease of 14.53%.

1. Domestic market

The Company developed steadily in the market of the three major operators (China Telecom, China Mobile,

China Unicom), with batch shipments of family entertainment products (such as IPTV set-top boxes, smart gateways, integrated terminals and VR devices), family connection portals (such as smart networking and WiFi routers) and family control portals including IoT pan-intelligent terminals (such as Internet cameras and outdoor box cameras). In the market of broadcast operators, data of Guideline Research show that the Company comfortably claimed the largest share in the broadcast set-top box market for the 13th consecutive year, and also had the largest market share of 4K UHD boxes. During the reporting period, the Company stepped up the deployment of products such as 4K set-top boxes, integrated intelligent terminals and PON gateways, while making its presence in the intelligent broadcasting business with education, Party building and VR as leverage. It focused on key quality customers in Guangdong and Jiangsu provinces, with in-depth market exploration, so as to enhance the market share in regions where key customers were located.

In the Internet OTT retail market, the effects of multi-channel and multi-brand strategies were obvious. Related products covered 4K UHD boxes, Tencent Aurora projectors, Aurora fast projectors, security cameras, VR equipment, etc., with continuous improvement of the operating efficiency.

2. Overseas markets

Despite the global COVID-19 epidemic and the complex international trade situation, the Company made steady progress in overseas markets. It developed new quality customers while maintaining its prime markets. Apart from set-top boxes, broadband connection and IoT services were further improved. The Company continued to make stable shipments in India, Africa and the Middle East, in addition to significant sales growth in the Asia-Pacific region. And the product structure was further diversified. Major breakthroughs were made in the market of European operators market. Despite the headwinds, orders increased from mainstream European operators such as the French Canal+ Group and Deutsche Telekom DT increased, as well as for the Strong retail business thanks to the "stay-at-home economy" in Europe. Continuous breakthroughs in the European market will provide new market opportunities for the Company's future growth in overseas business.

(II) Professional displays

During the reporting period, the Company recorded an operating revenue of RMB2,557,644,900 for professional displays, with a year-on-year growth of 25.40%. (1) Automotive smart electronics: As per its strategy, the Company focused on key quality customers and gave priority to touch control systems and digital LCD dashboards. It secured projects from Chery, Geely and Volkswagen, and obtained the supplier code from Great Wall Motors. (2) LCD displays: In the display module business, the Company cooperated with Wingtech for the OPPO project, and cooperated with Longcheer for the mass production of Xiaomi phones. It also introduced the Korean customer LEDAZ for batch production and supply to LGE. Breakthrough was in the Mini-LED backlight technology, and mass production started in December 2020. (3) Commercial displays and video walls: The Company continued to develop customers in significant sectors. In view of delayed construction under the epidemic, the Company engaged domestic installation teams and reduced the construction difficulty. It also maintained close contact with the upstream industry chain to ensure the overall supply.

(III) Operation services

During the reporting period, the Company recorded a steady growth in operation services for users, with an operating revenue of RMB259,451,700, a year-on-year growth of 20.27%. (1) Smart cities. The Company completed the development of the core platform for smart parks, as well as the overall research and planning for smart cities and smart education. The smart campus project at the Middle School Attached To Sichuan University was implemented, serving as an exemplar project of smart campus solutions. (2) After-sale value-added services. During the epidemic, the Company continued to explore service markets and expand the areas and types of its services, recording growth in both scale and profit. Apart from the improved process of standard services, the Company insisted on asset-light operations, high-quality services, and efficient delivery, with continuous enhancement of data management and operation.

2. Any significant changes in principal activities in the reporting period

□ Yes √ No

3. Products accounting for over 10% of the turnover or profit of the Company's principal activities √ Applicable □ N/A

Unit: RMB Yuan

Name of product	Core business incomes	Core business costs	Gross profit rate	Year-on-year increase/decrease of main operating revenue	Year-on-year increase/decrease of main operating cost	Year-on-year increase/decrease of gross profit rate
Intelligent terminals	4,726,756,675.58	3,553,344,267.36	24.82%	-15.61%	-13.42%	-1.91%
Broadband Internet access	897,884,736.09	790,520,215.49	11.96%	-8.37%	-1.18%	-6.41%
Professional displays	2,557,644,904.03	2,384,854,864.99	6.76%	25.40%	31.04%	-4.01%
Operation services	259,451,701.19	188,308,398.55	27.42%	20.27%	12.36%	5.11%

increase/decrease

4. Any seasonal or cyclical characteristics in operation requiring special attention

□ Yes √ No

5. Reasons for significant changes in the sum or the composition of operating revenue, operating cost, or net profit attributable to ordinary shareholders of the Listed Company in the reporting period as compared with the previous year

□ Applicable √ N/A

6. Possible termination of listing

□ Applicable √ N/A

7. Matters relating to financial reporting

(1) Explanations on changes in accounting policies, accounting estimates and measurement methods as compared with the last annual report

□ Applicable √ N/A

There were no changes in accounting policies, accounting estimates and calculation of the Company in the reporting period.

(2) Explanations on retrospective restatement due to major accounting errors during the reporting period.

□ Applicable √ N/A

There were no major accounting errors during the reporting period that required the Company to restate its accounts retrospectively.

(3) Explanations on changes in the scope of consolidation as compared with the last annual report √ Applicable □ N/A

1. In September 2020, Shenzhen Skyworth Digital Technology Co., Ltd., a wholly-owned subsidiary of the Company, acquired 99% of the equity interest in Shenzhen Skyworth New World Technology Co., Ltd., via a business consolidation under common control;

2. In June and September 2020, Shenzhen Skyworth Digital Technology Co., Ltd., a wholly-owned subsidiary of the Company, acquired 49% of the shares as minority equity interest in the subsidiary Beijing Skyworth Haitong Digital Technology Co., Ltd. in batches. Upon the acquisition, the Company holds 100% of the equity interest in Beijing Skyworth Haitong Digital Technology Co., Ltd. through Shenzhen Skyworth Digital Technology Co., Ltd. 3. In October 2020, Smart Choice Store Company Limited, a wholly-owned subsidiary of the Company, acquired 10% of the shares as minority equity interest in the subsidiary Caldero Holdings Limited. Upon the acquisition, the Company holds 100% of the equity interest in Caldero Holdings Limited through Smart Choice Store Company Limited.

4. Caldero Holdings Limited, a wholly-owned subsidiary of the Company, had held 100% of the equity interest in Caldero Malaysia SDN.BHD. In 2020, the subsidiary was deregistered and liquidated due to the adjustment of the Company's business strategy.

10