Skyworth : OVERSEAS REGULATORY ANNOUNCEMENT - 2019 THIRD QUARTER 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

2019 THIRD QUARTER 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 unaudited third quarter results for the nine months ended 30 September 2019 (the "Announcement"). Set out in the Appendix hereto is an extract of certain information in the Announcement.

Shareholders of the Company and potential investors should take note that the financial information of the third quarter results of Skyworth Digital in the Announcement has not been audited and the full version of the 2019 third quarter report of Skyworth Digital in Chinese has been 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, 24 October 2019

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 and Mr. Lin Jin as executive directors; and Mr. Li Weibin, Mr. Cheong Ying Chew, Henry and Mr. Li Ming as independent non-executive directors.

-1-

Stock Code: 000810

Stock Abbreviation: Skyworth Digital

Announcement Number: 2019-087

Extract of 2019 third quarter results announcement of

Skyworth Digital Co., Ltd.

-2-

Section I Important Notes

The board of directors, the board of supervisors and the directors, supervisors and senior executives of the Company guarantee that the contents of the quarterly results announcement are true, accurate and complete, and there are no false records, misleading statements or material omissions and bear individual and joint legal liability.

All directors attended the board meeting to resolve this quarterly results announcement.

Lai Weide, the legal representative, Wang Yin, the person in charge of accounting, and Yun Chunyu, the responsible person of the accounting institution (head of the Accounting Department) of the Company declare that the financial statements contained in this quarterly results announcement are true, accurate and complete.

-3-

Section II Basic Information of the Company

(1) Major accounting information and financial indicators

Whether the Company needs to make retrospective adjustments to or restate the accounting information of prior years

√ Yes □ No

Reasons for retrospective adjustments or restatements

Changes in accounting policies; merger of enterprises under control of the same parent company

				Increase or decrease at the end
	At the end of the	At the end of prior year	of the reporting period from
	reporting period			the end of prior year
		Before adjustment	After adjustment	After adjustment
Total assets (RMB)	10,677,164,847.09	8,349,143,939.54	8,651,181,722.03	23.42%
Net assets attributable to listing	3,569,026,470.43	3,047,702,515.13	3,175,424,358.71	12.40%
company shareholders (RMB)
		Increase or		Increase or decrease between
		decrease in the	From year beginning
	The reporting	year beginning and the end of
	reporting period	to the end of the
	period	the reporting period from the
	from the same	reporting period
		same period prior year
		period prior year
Revenue (RMB)	2,387,767,689.84	15.68%	6,281,999,542.96	8.97%
Net profit attributable to listing	239,843,978.35	234.43%	497,447,856.88	114.92%
company shareholders (RMB)
Net profit attributable to listing
company shareholders after excluding	218,622,851.35	266.22%	440,614,642.79	118.85%
non-recurring profit or loss (RMB)
Net cash flow generated from	--	--	91,858,944.03	120.67%
operating activities (RMB)
Basic earnings per share (RMB/share)	0.2314	234.88%	0.4773	113.56%
Diluted earnings per share	0.2173	224.81%	0.4613	113.07%
(RMB/share)
Weighted average return on net assets	6.79%	4.40%	14.81%	6.87%
Reasons for changes in accounting policies:

1. According to the Notice on Revision of Format of 2018 Financial Statements to be Published by General Enterprises issued on 15 June 2018 and Explanation on Questions Regarding Format of 2018 Financial Statements of General Enterprises issued on 7

September 2018 by the Ministry of Finance ("MOF"), the Company shall present the refund of fees regarding tax withholding under other income instead of revenue when preparing the statement of profit or loss; and the Company shall present government subsidies related to assets under cash flows of operating activities instead of cash flow under financing activities when preparing the cash flow statements. The Company has made retrospective adjustments to the comparative information correspondently. Such changes have not affected the net profit attributable to listing company shareholders or the net increase in cash and cash equivalents.

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2. The Company held the 9th meeting of the 10th board of directors and the 9th meeting of the 9th board of supervisors on 10 December 2018, which approved the Resolution on Implementing New Accounting Standards and Changing Relevant Accounting Policies. Since 1 January 2018, the Company has adopted the amendments to Accounting Standard for Enterprises No. 14: Revenue

as well as Accounting Standard for Enterprises No. 22: Recognition and Measurement of Financial Instruments, Accounting

Standard for Enterprises No. 23: Transfer of Financial Assets, Accounting Standard for Enterprises No. 24: Hedging Accounting and

Accounting Standard for Enterprises No. 37: Presentation of Financial Instruments (the above four referred to as "New Standards for Financial Instruments" collectively) published by the MOF in 2017. Thus, during the reporting period, retrospective adjustments were made to the information in financial statements for the period from January to September 2018 according to the Accounting Standard for Enterprises No. 14: Revenue and the New Standards for Financial Instruments.

Items and amounts of non-recurring profit or loss √ Applicable □ Not applicable

		Unit: RMB
	Amount from year
Item	beginning to the end of	Remark
	the reporting period
Profit or loss on disposal of non-current assets (including the part offset	-1,672,449.02	Disposal of fixed assets
from the provision for asset impairment)
Government subsidies included in profit or loss for the current period
(excluding those subsidised according to national standard quota or	50,331,938.62	Government subsidies
quantity that are closely related to corporate operations)
Net profit or loss for the current period from beginning of the period to		Acquisition of 55% of shares
the date of merger of subsidiaries resulted from the merger of enterprises	163,052.45
in Skyworth Qun Xin Security
under control of the same parent company
Profit or loss from changes in fair value of financial assets held for
trading, derivative financial assets, financial liabilities held for trading
and derivative financial liabilities, as well as investment gains from		Gains from forward foreign
disposal of financial assets held for trading, derivative financial assets,	14,709,907.55
exchange contracts
financial liabilities held for trading, derivative financial liabilities and
other debt investments, excluding effective hedging activities associated
with the Company's normal operations
Non-operating income and expenses other than the above	3,818,602.35	Other items of non-recurring
profit or loss
Less: Income tax effects	7,970,252.65	Income tax effects
Effect of minority interests (after tax)	2,547,585.21	Effect of minority interests
Total	56,833,214.09	--

During the reporting period, the Company did not define any item of non-recurring profit or loss defined or classified under Explanatory Announcement No.1 on Information Disclosure for Companies Publicly Issuing Securities - Non-recurringProfit or Loss as an item of recurring profit or loss.

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1. The total number of shareholders and information of top 10 shareholders as at the end of the reporting period

1. Total number of shareholders of ordinary and restored voting right preference shares and information of top 10 shareholders

Unite: Share(s)

Total number of shareholders of

Total number of the shareholders of restored voting right

ordinary shares as at the end of the

52,224

preference shares as at the end of the reporting period (if

0

reporting period

any)

Status of top 10 shareholders

Name of shareholders

Shareholder

Shareholding

Number of

Number of

Pledge or Freeze

conditional

Number of

capacity

%

shares

Shares status

shares

shares

Shenzhen Chuangwei-RGB Electronics

Domestic

Co., Ltd

non-state-owned

55.20%

584,548,508

0

Pledged

524,548,508

legal person

Shi Chi

Overseas natural

3.47%

36,770,524

27,577,893

person

Xie Xiongqing

Domestic natural

2.69%

28,528,051

0

person

Lin Weijian

Domestic natural

2.19%

23,218,131

0

Pledged

16,204,999

person

Skyworth LCD Technology Limited

Overseas legal

2.09%

22,083,862

22,083,862

entity

Suining Xingye Asset Operation

State-owned legal

2.07%

21,916,008

0

Company

entity

Li Pu

Domestic natural

1.29%

13,683,310

0

person

Guangzhou office of Huaxia Securities

Other

0.89%

9,400,000

0

Tang Yan

Overseas natural

0.61%

6,507,500

0

person

Long Weiling

Domestic natural

0.59%

6,200,000

0

person

Shareholdings of top 10 holders of shares not subject to trading moratorium

Name of shareholders

Number of shares not subject to trading

Type of shares

moratorium held

Type of shares

Number of shares

Shenzhen Chuangwei-RGB

Electronics Co., Ltd

584,548,508

RMB ordinary shares

584,548,508

Xie Xiongqing

28,528,051

RMB ordinary shares

28,528,051

Lin Weijian

23,218,131

RMB ordinary shares

23,218,131

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Suining Xingye Asset Operation	21,916,008	RMB ordinary shares	21,916,008
Company
Li Pu	13,683,310	RMB ordinary shares	13,683,310
Guangzhou office of Huaxia
Securities	9,400,000	RMB ordinary shares	9,400,000
Shi Chi	9,192,631	RMB ordinary shares	9,192,631
Tang Yan	6,507,500	RMB ordinary shares	6,507,500
Long Weiling	6,200,000	RMB ordinary shares	6,200,000
Wu Shezhen	5,700,000	RMB ordinary shares	5,700,000
	(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
Description of the connected	Xiongqing was the executive director and general manager of Yingtan City Pengsheng Investment Co.,
relationship or acting in concert	Ltd*. Lin Weijian, Lin Weijing and Xie Xiongqing are relatives. Yingtan City Pengsheng Investment Co.,
of the above shareholders	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 therefore they are 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".
Status of engagement in
securities financing business of	As at 30 September 2019, Xie Xiongqing held 28,528,051 shares of the Company in total, of which
the top 10 holders of ordinary	28,528,051 shares were held through the "investor credit securities account".
shares (If any)

Did the Company's top 10 holders of ordinary shares and the top 10 holders of ordinary shares not subject to trading moratorium make the agreed repurchase transactions during the reporting period?

• Yes √ No

The Company's top 10 holders of ordinary shares and the top 10 holders of ordinary shares not subject to trading moratorium did not make the agreed repurchase transactions during the reporting period.

2. Total number of shareholders of preference shares and information of top 10 shareholders of preference shares

• Applicable √ Not applicable

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Section III Important Matters

1. Details and reasons for changes in major financial information and financial indicators during the reporting period

√ Applicable □ Not applicable

Item in the balance	As at 30	As at 1 January	% Change		Reason for change
sheet	September 2019	2019
				Net capital of RMB1.031 billion raised
Cash & bank balances	2,157,905,488.91	1,041,471,182.71	107.20%	from the issuance of convertible
				corporate bonds
				Investment in equity instruments will be
				recovered within one year and
Financial assets held				reclassified	as	financial	assets held	for
17,592,606.09	-	-	trading; recognition	of	financial assets
for trading
			held for trading in respect of gain on
				changes in fair value of outstanding
				forward foreign exchange contracts
Non-current assets				Reduction in long-term receivables due
maturing within one	458,233.62	722,376.27	-36.57%
within one year
year
Other current assets	149,291,581.25	67,712,932.41	120.48%Increase in value-added tax credit
Long-term receivables	187,676.16	361,556.88	-48.09% Reduction resulted from recovery of
				long-term receivables
Long-term equity				Payment	of	RMB100	million	for
112,268,189.16	12,829,685.99	775.07%investment in Skyworth Group Finance
investments
			Company Limited
				Investment in equity instruments will be
Other non-current				recovered	within	one	year	and
financial assets	-	12,925,000.00	-100.00% reclassified as financial assets held for
				trading
Development	5,386,835.71	-	- Expenditure for new and incomplete
expenditure
			development projects
				Increase in US dollar borrowings to
Short-term borrowings	1,189,187,528.52	537,394,777.75	121.29%hedge against US dollar assets and reduce
				the effects of exchange rate fluctuations
				on profit or loss of the Company
				At the end of reporting period,
Financial liabilities				recognition	of	financial	assets held	for
-	2,704,321.16	-100.00% trading in respect of gain on changes in
held for trading
			fair value of outstanding forward foreign
				exchange contracts

-8-

Receipts in advance	674,850.59	499,209.29	35.18%Increase in advance lease payments
Employee				Increase in payroll due to expanded scale
remuneration payable	123,001,017.12	93,979,364.32	30.88%of production and sales
Non-current liabilities				Repayment	of bank borrowings upon
due within one year	13,165,088.16	205,982,466.65	-93.61%maturity
Other current liabilities	53,230,402.05	102,837,846.15	-48.24%Repayment of borrowings from affiliates
Bonds payable	912,593,307.28	-	- Issuance of convertible corporate bonds
				Reduction in lease liabilities due to rental
Lease liabilities	11,018,750.38	17,410,649.40	-36.71%payment
Other equity	140,254,263.10	-		Issuance of convertible corporate bonds
instruments
Other comprehensive				Changes in translation differences of
-47,372,329.98	-23,535,339.19	-101.28% foreign operations due to exchange rate
income
			fluctuations
Item in the statement	January to	January to	% Change		Reason for change
of profit or loss	September 2019	September 2018
				Increase in additional tax due to higher
Tax and surcharges	28,333,584.19	17,448,201.84	62.39%value-added tax paid
				Increased investment in the research and
Research costs	344,038,153.12	252,966,005.56	36.00%development of new products and
				operations
				Higher exchange gains from changes in
Finance costs	8,149,365.04	18,600,415.18	-56.19% exchange rates as compared to the same
				period prior year
Investment gains (loss				Higher gains from settlement of forward
8,108,759.69	15,847.90	51066.15%foreign exchange contracts and increased
shall be stated as "-")
			gains on long-term equity investments
Gain on changes in fair			34.55%Higher gains from changes in fair value
value (loss shall be	11,824,651.03	8,788,140.81
stated as "-")				of forward foreign exchange contracts
Non-operating income	6,788,048.09	4,324,611.78	56.96%Increase in non-operating income
Non-operating	3,214,799.14	2,141,609.73	50.11%Increase in non-operating expenses
expenses
				Increase in income tax expense due to
Income tax expense	56,811,319.93	-22,812,238.19	349.04%higher total profit
Item in the statement	January to	January to	% Change		Reason for change
of cash flows	September 2019	September 2018
Net cash flows
generated from	91,858,944.03	-444,377,421.78	120.67%Increase in sales proceeds collected
operating activities

-9-

Net cash flows				Payment of RMB100 million for
generated from	-195,902,663.38	-75,217,981.54	-160.45%	investment in Skyworth Group Finance
investment activities				Company Limited
Net cash flows				Net capital of RMB1.031 billion raised
generated from	1,185,583,795.46	217,695,800.21	444.61%	from the issuance of convertible
financing activities				corporate bonds

(2) Progress of important matters and analysis of their implications and solutions

• Applicable □ Not applicable
• 1. On 15 August 2017, Resolution on the Company's Qualification for Public Issuance of Convertible Corporate Bonds, Resolution on Public Issuance of Convertible Corporate Bonds by the Company, Resolution on the Proposed Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd., together with other relevant resolutions were approved at the 24th meeting of the 9th board of directors and the 20th meeting of the 8th

board of supervisors. On 31 August 2017, these resolutions were passed at the First Extraordinary General Meeting in 2017. On 4 September 2017, the Company held the 26th meeting of the 9th board of directors, at which relevant resolutions on adjusting the capital to be raised from the public issuance of such convertible corporate bonds were approved. On 2 August 2018, Resolution on Extension of the Validity of the Resolution for Public Issuance of Convertible Corporate Bonds at the General Meeting and Resolution on Proposal to Extend the Validity of the Board's Absolute Powers in Transacting Issues Relating to Public Issuance of Convertible Corporate Bonds at the General Meeting were approved at the 4th meeting of the 10th board of directors. On 22 August 2018, the Company held the Second Extraordinary General Meeting in 2018, at which Resolution on Extension of the Validity of the Resolution for Public Issuance of Convertible Corporate Bonds at the General Meeting and Resolution on Proposal to Extend the Validity of the Board's Absolute Powers in Transacting Issues Relating to Public Issuance of Convertible Corporate Bonds at the General Meeting were passed. On 5 December 2018, the China Securities Regulatory Commission issued the Approval in Relation to the Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd. (Zheng Jian Xu Ke [2018] No. 1913), pursuant to which the Company was permitted to publicly issue convertible corporate bonds with an aggregate nominal value of RMB1,040,000,000. On 27 March 2019, the Company issued the Undertaking for Significant Matters Subsequent to the Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd. and Review Opinions in Relation to Significant Matters Subsequent to the Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd. from CITIC Securities Company Limited. On 10 April 2019, the Resolution on Public

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Issuance of Convertible Corporate Bonds by the Company was approved at the 13th meeting of the10th board of directors. On 11 April 2019, Prospectus for the Public Issuance of Convertible Corporate Bonds and Announcement in Relation to the Public Issuance of Convertible Corporate Bonds were published, while CITIC Securities Company Limited issued a sponsorship letter for the public issuance of convertible corporate bonds by Skyworth Digital Co., Ltd. On 15 April 2019, to fund its upgrading and expansion projects for the smartisation of set-topbox and access terminal series products, and those for its automobile intelligent driver-assistancesystems, the Company publicly issued 10.4 million convertible corporate bonds at an issuance price of RMB100 each; a total capital of RMB1,040,000,000 was raised, while the net proceeds, after underwriting fees, sponsorship fees and other issuance expenses of RMB8,713,600, amounted to RMB1,031,286,400. On 16 May 2019, A-shareconvertible corporate bonds publicly issued by Skyworth Digital Co., Ltd. were listed on the Shenzhen Stock Exchange (stock name: Skyworth convertible bond, stock code: 127013). On 23 May 2019, China Chengxin Securities Rating Co., Ltd. issued the Follow-up Rating Report in relation to the Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd. (2019), in which it maintained an entity credit rating of AA on Skyworth Digital with a stable outlook and a credit rating of AA on "convertible corporate bonds publicly issued by Skyworth Digital Co., Ltd.". The conversion period of "Skyworth convertible bond" commenced on 21 October 2019.

(2) On 5 September 2019, the Company held the 19th meeting of the 10th board of directors, at which the Resolution on Capital Increase by Shenzhen Skyworth Digital Technology Co., Ltd. (a wholly-ownedsubsidiary of the Company) in Smart Choice Store Company Limited, its wholly-ownedsubsidiary in Hong Kong was approved. Shenzhen Skyworth Digital Technology Co., Ltd. (a wholly-owned subsidiary of the Company) intends to increase its capital contribution to Smart Choice Store, its wholly-owned subsidiary in Hong Kong, by RMB300,000,000 (or its foreign currency equivalent) with its own funds. Upon completion of the capital increase, the registered capital of Smart Choice Store will increase to RMB300,008,833 (or its foreign currency equivalent), while the percentage of shareholding of Shenzhen Skyworth Digital (a wholly-owned subsidiary of the Company) in Smart Choice Store will remain at 100%. The transaction is subject to filing with and approval by the Development and Reform Commission of Shenzhen Municipality and the Commerce Bureau of Shenzhen Municipal. The Company will fulfil its obligation of information disclosure in due course based on the progress of subsequent matters. Investors are advised to pay attention to the investment risks involved.

1. Pursuant to the Resolution on the Connected Transaction in relation to Entering Into Financial Services Agreement with a Related Finance Company, which was approved by the Company at its First Extraordinary

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General Meeting in 2018 held on 27 June 2018, the Company entered into the Financial Services Agreement with Skyworth Group Finance Company Limited ("Skyworth Finance Company") for a term of three years, with a view to further expanding its financing channels, reducing financing costs and finance expenses, and improving its efficiency in fund utilisation. Under the Financial Services Agreement, Skyworth Finance Company will provide the Company with a range of financial services within its scope of operation, including but not limited to comprehensive credit line, deposit and loan services, settlement services and other activities that Skyworth Finance Company may engage in as permitted by the China Banking and Insurance Regulatory Commission. The maximum balance of comprehensive credit line shall not exceed RMB1.7 billion (reusable within the approved period), loan interest rate shall be calculated in accordance with relevant requirements of the People's Bank of China, and it shall not be higher than loan interest rates offered by major domestic commercial banks for loans of the same type and term under similar conditions. The maximum daily outstanding balance of deposits, subject to compliance with relevant requirements of the Shenzhen Stock Exchange, shall not exceed RMB700 million, while the deposit interest rate shall not be lower than deposit interest rates offered by major domestic commercial banks for deposits of the same type and term. As at 30 September 2019, the Company had an outstanding loan balance of RMB0 and an outstanding deposit balance of RMB122,011,100 with Skyworth Finance Company, and it paid loan interest of RMB1,465,400 between year beginning and the end of the reporting period.

1. In 2016, the Company, Smart Choice Store Company Limited and Skyworth LCD Technology Limited (hereinafter referred to as "LCD Technology") entered into the Profit Forecast Compensation Agreement and the

Supplement Agreement to the Profit Forecast Compensation Agreement (hereinafter referred to as the "Agreements"). Pursuant to the Agreements, as Skyworth LCD Modules (Shenzhen) Co., Ltd. failed to fulfil its performance commitment for 2018, LCD Technology was required to provide the Company with compensation shares in 2018, which involved 13,971,152 shares, and LCD Technology was also required to repay the cash dividend of RMB1,536,826.72 (tax inclusive) for 2016 to the Company. As at 30 July 2019, the Company completed the repurchase and cancellation of 13,971,152 compensation shares from LCD Technology, and it received from LCD Technology the cash dividend of RMB1,536,826.72 (tax inclusive) distributed as equity for 2016.

(5) The resolution on the allocation of the Company's half year profit for 2019 was approved at the 18th meeting of the 10th board of directors held by the Company on 22 August 2019 and its Second Extraordinary General Meeting in 2019 held on 11 September 2019, and it has been implemented as at 26 September 2019.

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	Summary of important matters		Date of disclosure		Search index of the ad-hoc
					report disclosure website
	Matters relating to the public issuance of convertible		16 August 2017		www.cninfo.com.cn
	corporate bonds by the Company
		1 September 2017		www.cninfo.com.cn
			5 September 2017		www.cninfo.com.cn
			26 September 2017		www.cninfo.com.cn
			18 November 2017		www.cninfo.com.cn
			19 January 2018		www.cninfo.com.cn
			18 May 2018		www.cninfo.com.cn
			4 July 2018		www.cninfo.com.cn
			3 August 2018		www.cninfo.com.cn
			26 September 2018		www.cninfo.com.cn
			6 December 2018		www.cninfo.com.cn
			27 March 2019		www.cninfo.com.cn
			11 April 2019		www.cninfo.com.cn
			15 April 2019		www.cninfo.com.cn
			16 April 2019		www.cninfo.com.cn
			17 April 2019		www.cninfo.com.cn
			19 April 2019		www.cninfo.com.cn
			26 April 2019		www.cninfo.com.cn
			15 May 2019		www.cninfo.com.cn
			24 May 2019		www.cninfo.com.cn
			28 May 2019		www.cninfo.com.cn
			12 July 2019		www.cninfo.com.cn
			19 September 2019		www.cninfo.com.cn
			15 October 2019		www.cninfo.com.cn
	Matters relating to the capital increase by Shenzhen				www.cninfo.com.cn
	Skyworth Digital Technology Co., Ltd. (a
	wholly-owned subsidiary of the Company) in Smart		6 September 2019
	Choice Store Company Limited, its wholly-owned
	subsidiary in Hong Kong
	Matters relating to the repurchase and cancellation		26 March 2019		www.cninfo.com.cn
	of compensation shares for the unfulfilled
		24 April 2019		www.cninfo.com.cn
	performance commitment of Skyworth LCD
		1 August 2019		www.cninfo.com.cn
	Modules (Shenzhen) Co., Ltd. for 2018 and the
	connected transaction
	Matters relating to the allocation of the Company's		19 September 2019		www.cninfo.com.cn
	half year profit for 2019

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Progress of repurchasing shares □ Applicable √ Not applicable

Progress of reducing repurchased shares through centralised bidding □ Applicable √ Not applicable

1. Overdue commitment not yet performed by the de facto controller of the Company, shareholders, related parties, purchasers and the Company (being the promised parties) during the reporting period

□ Applicable √ Not applicable

The Company did not have any overdue commitment not yet performed by the de facto controller of the Company, shareholders, related parties, purchasers and the Company (being the promised parties) during the reporting period.

(4) Situation of investment in securities

• Applicable √ Not applicable

No investment in securities during the reporting period.

(5) Entrusted wealth management

• Applicable √ Not applicable

No entrusted wealth management during the reporting period.

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(6) Situation of investment in derivatives

√ Applicable □ Not applicable

Unit: RMB ten thousand

Percentage of

Investment

Purchase

Disposal

Investment

investment

Amount of

amount at

Name of the entity

Connected

Initial

amount at

amount

amount

amount at

Actual profit or

Connected

Type of derivative

Commencement

Termination

provision for

period end in net

operating derivative

transaction

investment

beginning of

during the

during the

end of the

loss during the

relationship

investment

date

date

impairment

assets of the

investment

(Yes/No)

amount

the reporting

reporting

reporting

reporting

reporting period

(if any)

Company at end

period

period

period

period

of the reporting

period

Bank of China Limited,

No

Forward foreign

1,098.45

12 February

7 January

1098.45

1098.45

0.00%

-38.95

Shenzhen Branch

No

2018

2019

exchange

Bank of China Limited,

No

Forward foreign

267.99

23 October

11 March

267.99

267.99

0.00%

-1.55

Shenzhen Branch

No

2018

2019

exchange

Bank of China Limited,

No

Forward foreign

430.23

23 October

10 April 2019

430.23

430.23

0.00%

-13.21

Shenzhen Branch

No

2018

exchange

Bank of China Limited,

No

Forward foreign

502.95

23 October

10 May 2019

502.95

502.95

0.00%

-6.38

Shenzhen Branch

No

2018

exchange

Bank of China Limited,

No

Forward foreign

1,147.4

23 October

10 June 2019

1,147.4

1,147.4

0.00%

35.91

Shenzhen Branch

No

2018

exchange

Bank of China Limited,

No

Forward foreign

1,153.58

23 October

10 July 2019

1,153.58

1,153.58

0.00%

-18.31

Shenzhen Branch

No

2018

exchange

Bank of China Limited,

No

Forward foreign

1,161.29

23 October

12 August

1,161.29

1,161.29

0.00%

72.29

Shenzhen Branch

No

2018

2019

exchange

-15-

Bank of China Limited,	No	No	Forward foreign	1,165.92	23 October	10	September	1,165.92		1,165.92			0.00%	24.06
Shenzhen Branch	exchange	2018	2019
Bank of China Limited,	No	No	Forward foreign	692.85	9 November	12 August	692.85		692.85			0.00%	41.75
Shenzhen Branch	exchange	2018	2019
Bank of China Limited,	No	No	Forward foreign	695.31	9 November	10	September	695.31		695.31			0.00%	14.08
Shenzhen Branch	exchange	2018	2019
Bank of China Limited,	No	No	Forward foreign	1,222.44	9 November	10	October	1,222.44				1,222.44	0.34%	65.34
Shenzhen Branch	exchange	2018	2019
Bank of China Limited,	No	No	Forward foreign	1,842.51	9 November	12	November	1,842.51				1,842.51	0.52%	99.88
Shenzhen Branch	exchange	2018	2019
Bank of China Limited,	No	No	Forward foreign	2,161.15	9 November	10	December	2,161.15				2,161.15	0.61%	118.49
Shenzhen Branch	exchange	2018	2019
Bank of China Limited,	No	No	Forward foreign	439.35	28 February	10 May 2019		439.35	439.35			0.00%	3.24
Shenzhen Branch	exchange	2019
Bank of China Limited,	No	No	Forward foreign	440.8	28 February	10	June 2019		440.8	440.8			0.00%	20.23
Shenzhen Branch	exchange	2019
Standard Chartered	No	No	Forward foreign	1,817.66	19 July 2019	10	January		1,817.66			1,817.66	0.51%	87.85
Bank (China) Ltd	exchange	2020
Standard Chartered	No	No	Forward foreign	1,521.4	19 July 2019	10	February		1,521.4			1,521.4	0.43%	78.67
Bank (China) Ltd	exchange	2020
Standard Chartered	No	No	Forward foreign	1,222.22	19 July 2019	10	March		1,222.22			1,222.22	0.34%	88.22
Bank (China) Ltd	exchange	2020
Standard Chartered	No	No	Forward foreign	1,227.11	19 July 2019	14 April 2020		1,227.11			1,227.11	0.34%	90.05
Bank (China) Ltd	exchange
Standard Chartered	No	No	Forward foreign	1,109.59	19 July 2019	10	June 2020		1,109.59			1,109.59	0.31%	132.23
Bank (China) Ltd	exchange

-16-

Standard Chartered	No	No	Forward foreign	1,280.98	19 July 2019	10 July 2020		1,280.98			1,280.98	0.36%	109.76
Bank (China) Ltd	exchange
Raitteisenlandesbank	No	No	Forward foreign	945.09	1 January 2019	17 January		945.09	945.09			0.00%	10.1
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	945.09	1 January 2019	12 February		945.09	945.09			0.00%	3.2
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	756.07	1 January 2019	28 February		756.07	756.07			0.00%	8.14
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	756.07	1 January 2019	4 March 2019		756.07	756.07			0.00%	8.55
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	756.07	2 January 2019	27 March		756.07	756.07			0.00%	9.46
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	3 April 2019		378.04	378.04			0.00%	11.89
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	17 April 2019		378.04	378.04			0.00%	12.32
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	3 May 2019		378.04	378.04			0.00%	13.07
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	17 May 2019		378.04	378.04			0.00%	16.54
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	3 June 2019		378.04	378.04			0.00%	17.15
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	17 June 2019		378.04	378.04			0.00%	16.29
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11 January 2019	3 July 2019		378.04	378.04			0.00%	10.11

-17-

Niederosterreich-Wein			exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	17 July 2019		378.04	378.04			0.00%	10.58
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	2 August 2019		378.04	378.04			0.00%	11.12
Niederosterreich-Wein	exchange
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	16 August		378.04	378.04			0.00%	20.03
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	3 September		378.04	378.04			0.00%	20.59
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	17 September		378.04	378.04			0.00%	23.97
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	3 October		378.04			378.04	0.11%	30.15
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	17 October		378.04			378.04	0.11%	30.25
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	4 November		378.04			378.04	0.11%	30.38
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	18 November		378.04			378.04	0.11%	30.43
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	3 December		378.04			378.04	0.11%	30.53
Niederosterreich-Wein	exchange	2019
Raitteisenlandesbank	No	No	Forward foreign	378.04	11	January 2019	17 December		378.04			378.04	0.11%	30.62
Niederosterreich-Wein	exchange	2019
Total			33,564.29		--	--	13,542.07	20,022.22	17,890.99		15,673.3	4.42%	1,409.12
Derivative investment sources			Private capital

-18-

Litigation involved (if applicable)	Nil

Date of announcement relating to the derivative investment approved at

26 March 2019

the board meeting (if any)

Date of announcement relating to the derivative investment approved atthe shareholders' meeting (if any)

		Risk analysis of forward foreign exchange business: The Company does not conduct forward foreign exchange transactions solely for profit
		purposes. All forward foreign exchange transactions are based on ordinary operation, and are based on specific business operations to avoid and
		guard against exchange rate risks. Forward foreign exchange transactions can reduce the impact of exchange rate fluctuations on the Company
		when the exchange rate fluctuates significantly, so that the Company can focus on its production operation. However, there are some possible
		risks in the forward foreign exchange business: ① Exchange Rate Fluctuation Risk: In the case of significant fluctuation of exchange rate, the
		bank's forward exchange offer rate may be lower than the Company's offer rate to the customer. In that case, the Company would not be able to
		lock down the rate according to the customer offer rate, which may result in exchange losses. ② Internal Control Risk: A lack of internal
		control proficiency could create internal control risk due to forward foreign exchange transactions being highly professional and complex. ③
		Customer Default Risk: Due to overdue on customer accounts receivable, the loan cannot be recovered within the forecast receivable period,
		which will result in delayed long-term settlement of the transaction and lead to losses of the Company. ④ Receivable Forecasting Risk: The
		internal import and export departments forecast receivables according to existing customer orders and future expected orders. Customer may
	Risk analysis of positions in derivatives and control measures	request to adjust the orders during the actual implementation process; such adjustments will affect the accuracy of forecast receivable and lead
	to long-term settlement delay delivery risk.
	(including but not limited to market risk, liquidity risk, credit risk,
	operational risk, legal risk, etc.) in the reporting period	Risk response to forward foreign exchange transactions: ① The Company has formulated the "Forward Foreign Exchange Business Internal
		Control System" 《远期外汇交易业务内部控制制度》, which clearly stipulates the principles of business operation, approval authority and
		scope of duties, internal operation flow, follow-up management, information isolation measures, information disclosure and file management.
		According to the system, the Company will arrange strictly in accordance with the provisions in terms of professional staff arrangement,
		establishment of strict authorisation hierarchy and position containment system to strengthen the relevant personnel on professional ethics
		learnings and business training to improve the overall quality of the relevant personnel. At the same time, the Company is committed to the
		establishment of a timely abnormality reporting system and the formation of efficient risk management procedures. ② The Company's Finance
		Department serves as the daily competent authority of the foreign exchange forward trading business, the department has set up corresponding
		professional positions, which are led by the Financial Controller, who is responsible for the business and compliance with the "Forward Foreign
		Exchange Business Internal Control System" 《远期外汇交易业务内部控制制度》, while ensuring that the system is carried out with greater
		efficiency. All staff who participate in the forward foreign exchange business have fully understood the characteristics and risks of the forward
		foreign exchange business, and strictly implemented the operation and risk management system within the derivatives business. ③ The
		Company has strict control on the scale of funds in foreign exchange forward transactions. All foreign exchange forward transactions must be
		-19-

entered into in accordance with foreign currency receipt and payment plans developed by relevant operating departments. Such transactions must comply with the Company's "Forward Foreign Exchange Business Internal Control System" 《远期外汇交易业务内部控制制度》, which provides the authority to disseminate operation instructions. The proceeding of operation must be in compliance with internal guidelines after the approval process. Strict prohibition of any amount of one-way transaction, for there is a risk of exposure to forward foreign exchange transactions. ④ The Company's proposed forward foreign exchange trading business is aimed at guarding against and avoiding exchange rate risk. The Company's board of directors has put forward specific risk control requirements, while the internal audit department and the audit committee of the board of directors will verify the actual transaction contract and the implementation process on a regular and irregular basis.

The Company's auditing for the fair value of derivatives is mainly due to the unexpired contract of forward-to-date foreign exchange settlement

During the reporting period, if the market price or the fair value of the

transactions signed by the Company and the Bank within the reporting period. The fair value gains and losses are recognised accordingly to the

derivative is changed, the analysis of the fair value of the derivative

difference between the forward offer and the forward exchange rate agreed upon in the contract, which had not expired as of the transactional

shall disclose the method and the relevant assumptions with parameters

financial asset or liability date.

Remarks on whether any significant change has occurred to the

accounting policy of the Company's derivatives and the specific

Nil.

principles of accounting during the reporting period in comparison withthe previous reporting period

The Company and its controlling subsidiaries are able to reduce operating risks by using reasonable financial instruments to lock-in the

transaction costs. The long-term foreign exchange transactions carried out by the Company and its controlling subsidiaries are closely related to

Special opinions of independent directors on the Company's derivative

their daily business needs. A corresponding monitoring mechanism has been established within the Company, which conforms with

investment and risk control

requirements set out in relevant laws and regulations. The use of derivative investments was agreed after considering domestic and overseas economic development, current financial trends, expected exchange rate fluctuations and the Company's business scale.

-20-

1. Registration form of reception of research, communication and interview etc. during the reporting period

• Applicable □ Not applicable

Reception time	Type of reception	Reception party	The basic situation index of research
			See the website
24 May 2019	Other	Organisation	(http://www.cninfo.com.cn)
			Investor Relations Activity List
			See the website
10 July 2019	Field research	Organisation	(http://www.cninfo.com.cn)
			Investor Relations Activity List
			See the website
17 July 2019	Field research	Organisation	(http://www.cninfo.com.cn)
			Investor Relations Activity List
			See the website
9 August 2019	Field research	Organisation	(http://www.cninfo.com.cn)
			Investor Relations Activity List
			See the website
16 September 2019	Field research	Organisation	(http://www.cninfo.com.cn)
			Investor Relations Activity List

(8) Situation of illegal external guarantee

□ Applicable √ Not applicable

No illegal external guarantee during the reporting period.

1. Controlling shareholder(s) and its/their related parties occupy the funds of the listed company for non-operating purpose

□ Applicable √ Not applicable

No controlling shareholder(s) and its/their related parties occupied the funds of the listed company for

non-operating purpose during the reporting period.

* For identification purpose only

________________________________________________________________________________________________

Note: If there is any inconsistency between the English and Chinese versions of this Appendix, the Chinese version shall prevail.

-21-