2019 Annual Results of Skyworth Digital Co., Ltd
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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 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”, Shenzhen Stock Code: 000810), an A-share listed company on the Shenzhen Stock Exchange 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 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, 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