Hong Kong Exchanges and Clearing Limited and The Stock Exchange of 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 2019 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”, Stock Code: 000810), an A-share listed company on the and a non-wholly owned subsidiary of the Company, in which the Company is indirectly interested in approximately 57.21% of its shareholding, has issued an announcement relating to its audited annual results for the twelve months ended 31 December 2019 (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, issue nil bonus share (tax inclusive), without transferring from provident funds to increase share capital. The total dividend amount in the Announcement is based on the total number of 1,063,660,533 shares as at 28 February 2020, 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 2019 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, 23 March 2020

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. Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. Appendix

Stock Code:000810 Stock Name: Skyworth Digital Announcement Number:2020-007

Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd.

I. Important Notes

1. This extract is compiled based on the full text of the 2019 annual report. Investors should read the full text of the 2019 annual report carefully on the media designated by the 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, the board of supervisors and the directors, supervisors and senior executives of the Company guarantee that the contents of the 2019 annual report are true, accurate and complete, and there are no false records, misleading statements or material omissions and bear individual and joint legal liability. 3. All directors attended the board meeting for reviewing this report. 4. Auditor’s note on non-compliance with accounting standards □ 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 Whether or not to transfer from capital reserve to share capital □ Yes √ No The profit distribution plan of ordinary shares of the Company approved on the board meeting is as follows: a cash dividend of RMB1.00 (tax included) will be distributed for every 10 shares to all shareholders based on the total share capital as at the date of registration for equity interest as confirmed in the Company’s announcement in relation to equity distribution in 2019. No bonus share will be given. No transfer will be made from capital reserve to 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 Skyworth Digital Stock code 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., High-tech Park, Nanshan District, Shenzhen Nanshan District, Shenzhen Facsimile 0755-26010028 0755-26010028 Telephone 0755-26010018 0755-26010680 Email [email protected] [email protected] 2 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. 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 research, development, production, sale, operation of and services involving digital TV smart box terminals and related software systems and platforms, primarily targeting operators (broadcast operators and the top three telecom operators in China, overseas operators for telecom and integrated services), as well as retail channel markets for B2C commerce. At the same time, being fully engaged in the development and production of broadband access devices, connected home terminals, as well as vehicle touch control panel and dashboard, the Company is committed to creating an internet plus lifestyle that features UHD and smart digital functions. (1) The Company offers a comprehensive range of smart devices, including, among others, 4K UHD set-top boxes, broadband gateway, integrated gateway, projector, IP camera and smart speaker; (2) broadband access devices include, among other products, ONU, EPON, GPON, 10GPON, Cable Modem, Wi-Fi router and 4G mobile router; (3) professional display includes, among others, small and medium-sized display modules, standalone VR glasses, vehicle touch control panel, vehicle digital LCD dashboard, tiled video wall and commercial display; (4) operational services cover, among others, operation of value-added services within Over-The-Top media services, ads management solution, online education platform, O2O home repair services. Not only did Skyworth Digital achieve a breakthrough by further diversifying applications and service ecosystems for smart homes with its “entry-level smart home” smart ecology series, it also managed to establish a comprehensive and thorough resource deployment in the smart home eco-chain through an approach that focuses on “access, connection & services”. (II) Development stage and cyclical characteristics of the industry where the Company operates during the reporting period In the smart home ecosystem featuring “hardware + platform + contents + services”, smart set-top boxes are more than digital TV decoders, for they have incorporated a complex portfolio of software and hardware technologies (including, among others, high-performance digital signal processors, radio frequency communication and channel decoding, high-speed PCB design, embedded real-time operating system, digital TV software platform and digital TV APPs), together with USB port, HDMI port, WAN port and 3D graphics processor. Operating under embedded systems (such as Linux and Android), and enhanced by WiFi/Bluetooth, CA, IPTV, embedded software and algorism, set-top boxes are now matching smart phones in overall software and hardware performance and complexity. To cope with technology advancement and diversified user needs, not only are digital set-top boxes undergoing a few transitional developments (from HD to 4K (8K) UHD capacities, from single-format decoder to multimedia terminal supporting multiple protocols, from digital signal receiver and decoder to internet business enhancer), they have also been incorporating a wide range of functions, including broadband access and wireless coverage, premium video, smart home and IoT AI application, HDR, PVR, speaker and projector. This signifies a transformation towards network smartisation, business diversification, operational intelligence, and platform-based ecological development. According to statistics from Grand View Research, the demand for digital boxes in the global market will maintain a steady growth, expecting to reach 337 million units in 2022.

Source: Grand View Research 3 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. In view of opportunities arising from the imminent 5G era, broadcast and network operators (BNOs) in China will promote the application of 5G+ UHD video within key vertical industries, such as smart home, smart city, smart healthcare, smart education and industry of internet. Due to growing sector concentration within the BNO market, suppliers of box terminals and access devices are required to undertake constant updating and upgrading of their technologies and products. Meanwhile, operators also expect enhanced capacities from suppliers in delivering customised development and systematic solutions to meet their diversified needs. The Company will closely align its strategies with any further development in 5G broadcasting upgrade, 8K and “smart TV broadcasting”, in order to provide matching terminals, as well as solutions and products built around video platforms. China’s top three telecom operators are currently developing strategies around home-based IoT and smart homes, with an aim to create new drivers of growth for their digital home services. Skyworth Digital maintains strategic partnerships with all three of these telecom operators in exploring new products and services through scenario-linked applications. Related business formats include broadband access to optical communication devices, smart multimedia information centres and general-purpose smart devices, through which it aims to build a smart home ecosystem for operator channels in line with customer needs. In terms of overseas markets, not only has content enhancement for 4K UHD TV, AI, Android TV, broadband IP, OTT, DVB-T2/HEVC, VR and Netflix created a strong demand for upgrading to smart boxes with broadband access and smart gateway, it has also led to upgrading and leap-forward growth in relevant technology systems and development. Following over a decade of development, innovation and transformation, the global digital box industry is now in a stage of digitalisation and integration, while evolving towards smart and multi-functional iteration. As a global leader in the 5G era, China remains a considerable source of future demand for telecom connectivity and digital home services. While broadcast operators and the top three telecom operators in China share substantially the same needs with global operators for telecom and integrated services, they however, differ in focus area and development stage. There are no obvious cyclical characteristics in the industry. (III) Position 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 sale of digital TV smart box terminals. According to the data of Guideline Research and from other resources, the Company as a whole has become an industry leader in terms of market share in the domestic broadcast operators segment, domestic sales of OTT smart devices, domestic 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 and marketing, the Company adopts the strategy targeting at the global market. With its set-top boxes being sold across the world, the Company is a leader in China’s DSB industry and one of the largest in the world, making it a competitive and influential market player home and abroad.

4 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. 3. Major accounting information and financial indicators

(1) Major accounting information and financial indicators for the recent three years Whether the Company needs to make retrospective adjustments or restate the accounting information of prior years √ Yes □ No Reasons for retrospective adjustments or restatements Merger of enterprises under control of the same parent company; other reason

Unit: RMB Increase or decrease in the 2018 2017 current year from 2019 the prior year Before Before After adjustment After adjustment After adjustment adjustment adjustment Revenue 8,895,624,062.35 7,762,616,543.11 8,148,183,257.58 9.17% 7,254,805,627.63 7,744,412,750.69 Net profit attributable to listing company 632,002,094.35 327,946,324.11 331,661,721.75 90.56% 94,335,732.74 81,326,276.11 shareholders Net profit attributable to listing company shareholders after 587,650,710.95 288,186,655.01 288,186,655.01 103.91% 43,559,327.33 43,559,327.33 non-recurring profit or loss Net cash flow generated from 60,738,527.13 -77,562,911.40 -16,033,782.94 478.82% -587,038,737.87 -612,836,848.78 operating activities Basic earnings per 0.61 0.32 0.32 90.63% 0.09 0.08 share (RMB/share) Diluted earnings per 0.59 0.30 0.31 90.32% 0.09 0.08 share (RMB/share) Weighted average 18.41% 11.46% 11.10% 7.31% 3.55% 2.91% return on net assets Increase or decrease at the At the end of 2018 end of the current At the end of 2017 At the end of 2019 year from the end of prior year Before Before After adjustment After adjustment After adjustment adjustment adjustment Total assets 10,541,262,868.03 8,349,143,939.54 8,651,181,722.03 21.85% 7,576,862,757.56 7,944,927,900.93 Net assets attributable to listing company 3,763,156,124.26 3,047,702,515.13 3,175,424,358.70 18.51% 2,691,541,199.46 2,815,547,645.39 shareholders

5 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. (2) Major accounting information by quarter

Unit: RMB Q1 Q2 Q3 Q4 Revenue 2,051,101,815.37 1,843,130,037.75 2,387,767,689.84 2,613,624,519.39 Net profit attributable to listing 117,531,078.95 140,072,799.58 239,843,978.35 134,554,237.47 company shareholders Net profit attributable to listing company shareholders after 99,003,933.64 122,987,857.80 218,622,851.35 147,036,068.16 non-recurring profit or loss Net cash flow generated from -461,812,707.89 374,998,868.87 178,672,783.05 -31,120,416.90 operating activities 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) Number of holders of ordinary and restored voting right preference shares, as well as shareholding of the top 10 shareholders

Unit: Share(s) Total number Total number of Total of holders of Total number of holders of restored number of ordinary holders of voting right holders of shares as at restored voting preference shares as ordinary the end of the 45,797 49,461 right preference 0 at the end of the 0 shares as at month prior shares as at the month prior to the the end of to the date of end of the date of disclosure of the reporting disclosure of reporting period this 2019 annual period this 2019 report annual report Shareholding of the top 10 shareholders Number of Pledge or freeze Shareholder Number of Name of shareholder Shareholding % conditional capacity shares Shares Number of shares status shares Domestic Shenzhen Chuangwei-RGB non-state-owned 55.24% 584,548,508 Pledged 444,548,508 Electronics Co., Ltd. legal entity Overseas natural Shi Chi 3.47% 36,770,524 27,577,893 person Skyworth LCD Technology Overseas legal 2.09% 22,083,862 22,083,862 Limited entity Suining Xingye Asset State-owned 2.07% 21,916,008 Operation Company legal entity Domestic Xie Xiongqing 2.05% 21,675,053 natural person Domestic Lin Weijian 1.80% 19,021,531 natural person Domestic Li Pu 1.29% 13,683,310 natural person office of Huaxia Other 0.89% 9,400,000 Securities

6 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. E Fund －ICBC－FOTIC－ FOTIC·Wenfu FOF Single Other 0.89% 9,368,204 Fund Trust* Domestic Tang Yan 0.61% 6,507,500 natural person (1) Shenzhen Chuangwei-RGB Electronics Co., Ltd. and Skyworth LCD Technology Limited 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*. (鹰潭市鹏盛投资有限公司), 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 Description of the connected relationship or acting in concert of the above shareholders 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, Tang Yan is his spouse, 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 and does not know whether they are persons acting in concert according to the “Measures for the Administration of the Takeover of Listed Companies”. As at 31 December 2019, Xie Xiongqing held 21,675,053 shares Status of engagement in securities financing of the Company in total, of which 21,675,053 shares were held business by shareholders (If any) through the “investor credit securities account”.

(2) Total number of holders of preference shares and shareholding of top 10 holders of preference shares □ Applicable √ N/A There was no shareholding by holders of preference shares of the Company during the reporting period.

7 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. (3) Block diagram about property rights and control relationship between the Company and actual controllers

(Major shareholder) (Major shareholder)

shares)

shares) shares)

8 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. 5. Corporate bonds Whether the Company had any outstanding corporate bonds listed on stock exchanges which were not mature or not fully settled after maturity as of the date when this 2019 annual report was approved to be published No III. Management Discussion and Analysis of Operational Performance 1. Business review for the reporting period The Company is focused on providing a comprehensive yet systematic portfolio of home entertainment solutions and services to users across the globe. Building on its core business of digital set-top boxes, Skyworth aims to expand its footprint to cover broadband access devices and general-purpose smart devices. In January 2019, the Company completed the acquisition of Skyworth Qunxin Security Technology, a company primarily engaged in security, commercial display and smart park solution. The acquisition further expanded the Skyworth business ecosystem, leading to the establishment of 4 key business sectors, namely smart devices, broadband devices, professional display and operational services. In April 2019, the Company issued RMB1.04 billion of convertible bonds, which laid a solid foundation for developing the next generation of smart devices, broadband access devices and smart connected vehicles.

During the reporting period, Skyworth successfully seized sector-wide opportunities arising from UHD shift, fibre-optic upgrading, 5G application and artificial intelligence. Focusing on online transmission (10GPON, WiFi router, 4G CPE), device development (4K UHD smart set-top boxes, standalone VR glasses, smart gateway, IP camera) and business application (security monitor, commercial display, integrated vehicle panel) for the UHD industry, Skyworth managed to deliver broad-based growths across product sales, market coverage, market share and revenue from operational services, further strengthening its competitive edge and scale advantages. The Company’s revenue increased by 9.17% year-on-year to RMB8,895,624,100. Within this, revenue recorded for smart devices decreased by 7.33% year-on-year to RMB5,591,633,000; revenue from broadband devices increased by 111.59% year-on-year to RMB979,880,700; revenue recorded for professional display grew by 45.61% year-on-year to RMB2,039,622,600; and revenue from operational services increased by 14.36% year-on-year to RMB214,570,900. Building on the optimisation of total factor productivity and the effective implementation of policies to manage foreign exchange exposure, the Company substantially improved its gross profit margin, with net profit attributable to parent company increasing by 90.56% year-on-year to RMB632,002,100. Related

9 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. business operations of the Company are summarised below: (I) Smart devices & broadband devices 1. Domestic BNO market During the reporting period, revenue recorded in the BNO market amounted to RMB1,372,568,500. The Company increased its investment in promoting broadcast products, such as 4K UHD smart set-top boxes, integrated smart set-top boxes, as well as ONU, PON and gateways, which led to a steady growth in market share and increased shipment proportion of 4K UHD set-top boxes. The Company commenced shipment for solutions and products (such as Cable Modem, ONU, PON and smart home gateway) with which it won broadcast bids in 16 provincial and municipal tenders, supporting broadcasting networks in the transmission of 4K videos. During the reporting period, the Company made further progress in developing its smart TV broadcasting business, including emergency broadcasting and education systems. According to the data of Guideline Research, not only did the Company claim the largest share in domestic digital TV box market for the 12th consecutive year, it also achieved market-share leadership for cable 4K set-top boxes, making Skyworth a leading brand in the BNO market. 2. Sales to the top 3 telecom operators in China During the reporting period, revenue from sales to China’s top 3 telecom operators amounted to RMB1,980,180,700. Within the context of its “dual-band gigabit” smart platform featuring gigabit home broadband and gigabit mobile network, the Company commenced batch shipment of IPTV, IPTV+OTT UHD video boxes, smart gateways, broadband-integrated terminal products for home entertainment; smart multipathing and WiFi router for home access; and IoT general-purpose smart devices (e.g. smart speakers and cameras) for home control to the top 3 telecom operators in China. The Company won bids for centralised procurement offered by headquarters of the telecom operators and distributed its products across various provinces, thereby enhancing its distribution capability to customers at provincial, municipal and county levels. In addition to becoming a key supplier of smart gateways for China Unicom and a qualified supplier of smart mobile gateways for China

Mobile, the Company also commenced sale of smart multipathing products shortlisted by China Unicom, China Mobile and China Telecom, respectively. In terms of general-purpose smart devices, the Company had completed warehouse entry for smart door locks and smart speakers supplied to China Mobile Group; its smart home cameras and outdoor motion detectors had been shortlisted by China Unicom Group; and it completed warehouse entry and obtained sales certificates for its standalone VR glasses supplied to headquarters of China Mobile, China Unicom and China Telecom. The Company has secured its position as one of the leading telecom operators.

10 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. 3. Domestic retail market of proprietary internet OTT smart boxes During the reporting period, enabled by the further deployment of internet 2C brands, the multi-brand strategy for online channels proved highly effective. Not only did Skyworth-branded products record steady growths, the Tencent Penguin Aurora brand also experienced an explosive sales growth, while the Xiaopai product line saw a remarkable increase in sales, covering products such as 4K TV boxes, smart 4K projector, security camera and standalone VR glasses. The Company ranked among the top 3 among industry practitioners in terms of overall retail volume of internet OTT smart devices. 4. Overseas markets During the reporting period, the Company recorded revenue of RMB3,075,700,000 in overseas markets. While the Company maintained its a leading market share for its traditional Pay-TV boxes, its promotion of Android TV and broadband access products overseas also started to show promising prospects. To honour its commitment to the prospecting of key strategic customers, as well as the integration and cooperation within industry alliances, the Company has built and maintained strategic partnerships with Google and Netflix. It maintained its leading position and further increased market shares in markets across Asia, Africa and Latin America, where it has enjoyed a long and strong presence. The Company also expanded its footprint in Europe beyond just mainstream operators, now covering Deutsche Telekom (Germany), Groupe Canal+ (France), Zattoo (Germany), 4Media (Ukraine), MTS (Russia), TVUP (Spain), Vivacom (Bulgaria) and D-Smart (Turkey). While subsidiaries in Mexico, India and South Africa continued to report satisfactory results, its self-owned plant in South Africa, a market of key strategic importance, also commenced production with steady output, signifying that the Company further enhanced its global presence and customer services. (II) Professional display During the period, the Company recorded revenue of RMB2,039,622,600 for professional display. (1) Automotive smart electronics: the Company adjusted its operating strategy to focus on automobile display system and concentrate its sources on core automobile manufactures and projects, leading to further progress in its and projects. The Company has formed supply partnerships with the following automobile manufactures: Chery, Geely, Hanteng, JMC, JAC, , Dongfeng , Dongfeng Peugeot-Citroën, , Brilliance, Chery New Energy and JMEV. (2) Small and medium-sized mobile display modules: in addition to deepening its strategic partnerships with clients such as ZTE Corporation, LG, Wingtech Technology, Huaqin Communication Technology, , Lumens, TPV, Innocom Corporation, Gen, Chino-E, Landi and Verifone, which covered small and medium-sized LCD display modules, OLED display modules, POS devices, mobile ODM and complete devices, the Company also actively developed clients for products such as non-mobile phone display, commercial display, light bars, TV sets, electronic car devices and industrial automation control systems. (3) Security and commercial display: with a focus on professional display and smart security, major products of this business include monitor, large LCD splicing screens, indoor and outdoor LED devices, advertising devices, commercial display, smart conferencing display and smart door lock; it has also started to demonstrate synergies with other business sectors.

11 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. (III) Value-added services and operations During the reporting period, the Company recorded a steady growth in its user value-added services and various operation sectors. (1) Operating and servicing platform for large-screen advertisements targeting operators. Having secured partnerships for advertising operation with Cable Network, Jiangsu IPTV, Guiyang Broadcasting Network, Chongqing Cable Networks, Shenzhen Topway and Shenzhen IPTV, the Company established an omni-channel marketing coverage for smart advertising delivered via DTV, IPTV and OTT large screens, serving 23 million daily active users. (2) Cloud platform of smart TV broadcasting + education services. The Company launched cloud class and co-teaching class. By integrating internet technologies, sound-visual interaction and mobile internet, the Company successfully provided streaming class services with low latency, no input lag and automatic frame tracking in weak signal areas, whose commercial use was first introduced to Huai’an in Jiangsu Province. (3) Operation platform of value-added services for internet OTT users. The Company provided value-added services to OTT users based on its proprietary OTT operation back office and management system, member account system and supporting box terminal software. In December 2019, the number of paid subscribers increased by 345% year-on-year, while the cumulative number of registered users as at the end of the reporting period increased by 272% year-on-year. Aggregate revenue from advertising operation and APP distribution also reported a significant growth. (4) Platform of O2O on-site home services. The Company remained on track in developing its repair services for operators and businesses, it became a subcontractor of on-site smart door lock services for China Mobile, CM IoT, China Mobile Group Device Company Limited and JD.com. In addition to its subsidiaries based in South Africa, India and Malaysia, which remained profitable, the Company also tapped into the Thailand market. 2. Significant changes in principal activities during the reporting period □ Yes √ No 3. Products accounting for over 10% of revenue or profit of the Company’s principal activities √ Applicable □ N/A

Unit: RMB Year-on-year Year-on-year Year-on-year increase or increase or Revenue from Costs of increase or Gross profit decrease in decrease in Product name principal principal decrease in margin revenue from costs of activities activities gross profit principal principal margin activities activities Smart devices 5,591,633,042.45 4,097,609,326.91 26.72% -7.33% -18.36% 9.90% Broadband 979,880,686.15 799,920,843.32 18.37% 111.59% 93.18% 7.78% devices Professional 2,039,622,592.68 1,820,004,570.92 10.77% 45.61% 56.11% -6.00% display Operational 214,570,882.52 167,593,086.63 21.89% 14.36% 67.73% -24.86% services 4. Seasonal or cyclical characteristics in operation requiring special attention □ Yes √ No 5. Significant changes in the sum or composition of revenue, operating cost or net profit attributable to holders of ordinary shares in listing company during the reporting period as compared with the previous reporting period √ Applicable □ N/A

12 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. During the reporting period, total net profit attributable to holders of ordinary shares in listing company increased by RMB300 million or 90.56% from the previous period, mainly due to higher gross profit margin driven by growth in principal activities, which was based on optimisation of the Company’s products and sales structure. 6. Suspension or termination of listing □ Applicable √ N/A 7. Matters related to financial report (1) Changes in accounting policies, accounting estimates and calculation from financial report of prior year √ Applicable □ N/A (i) With effect from 1 January 2019, the Company applied Accounting Standards for Enterprises No. 21: Lease, as amended by the Ministry of Finance in 2018. On the date of initial application, the Company selected to reassess whether any previously existing contract was or contained a lease, the method for which was consistently applied to all contracts. Therefore, the Company only applied transitional provisions in this standard to those contracts identified as leases under the original accounting standard for lease as explained above. In addition, the Company selected to use the modified retrospective approach in the transitional accounting of such lease contracts under Accounting Standards for Enterprises No. 28: Changes of Accounting Policies and Accounting Estimates and Error Correction, which was to adjust the amounts of opening retained earnings and other relevant items in the financial statements for the year of initial application of this standard, without adjusting comparable periods, and to select the measurement of right-of-use assets and apply related modified approach for operating leases contained on a lease-by-lease basis, the details of which are set out below: The Company’s accounting policy for leases of low value assets is not to recognise right-of-use assets or lease liability. Under transitional provisions in the new accounting standard for lease, from the date of initial application, the Company is required to account for leases of low value assets existing prior to that date under the new accounting standard for lease, without making retrospective adjustment to leases of low value assets. Set out below is the impact of applying the new accounting standard for lease on relevant items in the financial statements for the current period: Item 31 December 2018 Aggregate amount affected 1 January 2019 Reclassification R emeasurement Subtotal Fixed assets 740,312,900.23 (97,055.46) --- (97,055.46) 740,215,844.77 Right-of-use assets --- 97,055.46 28,183,946.42 28,281,001.88 28,281,001.88 Total assets 740,312,900.23 --- 28,183,946.42 28,183,946.42 768,496,846.65 Non-current liabilities 194,667,000.23 66,356.42 11,380,595.08 11,446,951.50 206,113,951.73 due within one year Lease liabilities --- 12,000.24 16,803,351.34 16,815,351.58 16,815,351.58 Long-term payables 78,356.66 (78,356.66) --- (78,356.66) --- Total liabilities 194,745,356.89 --- 28,183,946.42 28,183,946.42 222,929,303.31 Note: Financial statement items not affected are excluded from the table above, which only presents those affected. As a result, the subtotals and totals disclosed cannot be recalculated using the figures presented above. (ii) With effect from 10 June 2019, the Company applied Accounting Standards for Enterprises No. 7: Exchange of Non-monetary Assets (Cai Kuai [2019] No. 8), under which it adjusted exchanges of non-monetary assets from 1 January 2019 onwards. This change in accounting policies had no impact on financial statements for the current period.

13 Extract of 2019 Annual Results Announcement of Skyworth Digital Co., Ltd. (iii) With effect from 17 June 2019, the Company applied Accounting Standards for Enterprises No. 12: Debt Restructuring (Cai Kuai [2019] No. 9), under which it adjusted debt restructurings between 1 January 2019 and the date of application of this standard. Due to application of this new standard, the Company accounted for profit or loss from debt restructuring of RMB-3,143,107.80 within investment gains during the current period. (2) Major accounting errors during the reporting period that require retrospective restatement □ Applicable √ N/A There were no major accounting errors during the reporting period that required the Company to restate its accounts retrospectively. (3) Changes in consolidated financial statement from financial report of prior year √ Applicable □ N/A 1. Subsidiaries, special purpose entities, business entities controlled through entrusted operation or leasing included in the scope of consolidation during the current period Name Reason for change Shenzhen Skyworth Qunxin Security Merger of enterprises under control of the same parent company Technology Corp., Ltd. Skyworth Qunxin Intelligence Control Merger of enterprises under control of the same parent company Technology (Zhongshan) Co., Ltd. 2. Subsidiaries, special purpose entities, business entities controlled through entrusted operation or leasing excluded from the scope of consolidation during the current period

Name Reason for change Huizhou Skyworth Technology Company Deregistration Limited

14