China Display Optoelectronics Technology Holdings Limited reported mixed interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue rose 12.4 % year on year to RMB 3.56 billion, driven by a 39.4 % jump in shipment volume to 43.04 million units. • Gross profit expanded 60.5 % to RMB 189.90 million, lifting gross margin to 5.3 % (H1-2025: 3.7 %). • Profit attributable to shareholders declined 15.4 % to RMB 43.16 million as foreign-exchange losses (RMB 26.42 million versus RMB 1.27 million a year earlier) and a 42.3 % surge in R&D expenses to RMB 103.18 million offset the margin gains. • Basic and diluted EPS fell to RMB 2.06 cents from RMB 2.43 cents. No interim dividend was declared.

Segment Performance • Tablet display modules were the main growth engine: volumes soared 175.5 % to 16.57 million units, lifting revenue 57.8 % to RMB 2.35 billion. • Mobile-phone modules shipped 26.47 million units (+6.5 %), but revenue slipped 4.0 % to RMB 1.16 billion as average selling prices eroded. • Average selling price across all products fell 6.7 % to RMB 81.60 per unit, reflecting intensified price competition.

Geographical Mix • Mainland China revenue contracted 17.8 % to RMB 2.39 billion, lowering its share to 67.1 %. • Sales booked through Hong Kong surged 352.3 % to RMB 1.17 billion, now accounting for 32.9 % of total turnover.

Balance-Sheet and Cash Flow • Cash and cash equivalents reached RMB 235.78 million, up from RMB 33.30 million at end-2025; treasury deposits with related parties stood at RMB 748.45 million. • The group remained debt-free, leaving its gearing ratio at zero. Total equity attributable to shareholders increased 4.5 % to RMB 1.28 billion. • Capital commitments for plant and equipment totalled RMB 41.17 million; no assets were pledged and no significant contingent liabilities were reported.

Operational Highlights • Expanded economies of scale trimmed unit production costs, supporting the gross-margin recovery. • Finance costs fell sharply to RMB 0.12 million (H1-2025: RMB 8.20 million) due to the absence of discounted-bill interest. • Exchange-rate volatility led to higher translation losses, weighing on the bottom line.

Industry Context and Outlook Global smartphone shipments declined 4 % in Q2-2026, with China’s market down 2 %. Rising memory-chip prices and subdued consumer demand continue to squeeze industry profitability. The company expects a challenging second half, particularly for small- and mid-size panels, but plans to leverage its integrated panel-and-module model and cooperation with TCL China Star’s t9 line to defend margins. Strategic focus will remain on scaling tablet modules, optimizing product mix, and reinforcing cost controls to bolster resilience amid macro-economic headwinds.

No share repurchases, major acquisitions, or disposals occurred during the period. The board maintained its policy of no interim dividend.