Skyworth : OVERSEAS REGULATORY ANNOUNCEMENT - 2021 FIRST QUARTERLY 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

2021 FIRST QUARTERLY 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 first quarterly results for the three months ended 31 March 2021 (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 first quarterly results of Skyworth Digital in the Announcement has not been audited and the full version of the 2021 first quarterly 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, 21 April 2021

As at the date of this announcement, the Board of the Company comprises Mr. Lai Weide as the Chairman of the Board; Mr. Liu Tangzhi as executive director and the chief executive officer; Ms. Lin Wei Ping, Mr. Shi Chi, Mr. Lin Jin and Mr. Lam Shing Choi, Eric as executive directors; and Mr. Li Weibin, Mr. Cheong Ying Chew, Henry and Mr. Hung Ka Hai, Clement as independent non-executive directors.

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Stock Code: 000810

Stock Name: Skyworth Digital

Announcement Number: 2021-034

Extract of 2021 first quarterly results announcement of

Skyworth Digital Co., Ltd.

2

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

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

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Section II Basic Corporate Information

(1) Major accounting figures and financial indicators

Is it necessary for the Company to retrospectively adjust or restate accounting figures in previous years?

• Yes □ No

Reasons for retrospective adjustments or restatements

Merger of enterprises under control of the same parent company

						Increase or decrease between
	The reporting period		Same period of the prior year	the reporting period and the
					same period prior year
		Before adjustment	After adjustment	After adjustment
Turnover (RMB)	2,219,713,806.49	1,709,529,147.46	1,710,574,334.62	29.76%
Net profit attributable to shareholders	155,628,930.67	78,286,291.64	76,090,768.79	104.53%
of the Company (RMB)
Net profit attributable to shareholders
of the Company after non-recurring	59,556,731.06	39,521,732.81	39,521,732.81	50.69%
gain or loss (RMB)
Net cash from operating activities	23,027,205.11	734,411,685.73	732,004,518.88	-96.85%
(RMB)
Basic earnings per share (RMB/share)	0.1464	0.0748	0.0727	101.38%
Diluted earnings per share (RMB/share)	0.1462	0.0733	0.0713	105.05%
Weighted average return on net assets	3.64%	2.04%	1.98%	1.66%
						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)	10,202,534,027.61	10,250,139,368.19	10,250,139,368.19	-0.46%
Net assets attributable to listing	4,352,985,972.06	4,202,130,475.86	4,202,130,475.86	3.59%
company shareholders (RMB)
Items and amounts of non-recurring gains or losses.
√ Applicable □ Not Applicable
						Unit: RMB
Item			Beginning of year to end of		Remark
		reporting period
Profit or loss on disposal of non-current assets (including the			Mainly due to the loss from
offset part of asset impairment provisions)			90,728,490.21	disposal of long-term equity
					investment
Government subsidies included in profit or loss for the current
period (except for those closely related to corporate operations,		14,920,618.11	Government subsidies
which are granted at fixed quotas or amounts according to the
government's unified standards)
Profit or loss on debt restructuring				-782,768.24	Losses from debt restructuring
Other than effective hedging activities associated with the
Company's normal operations, gains and losses from changes in
fair value of financial assets held for trading, derivative			Gains and losses on changes in
financial assets, trading financial liabilities and derivative		593,601.66	fair value of forward foreign
financial liabilities, as well as investment gains from disposal of		exchange and gains and losses
trading financial assets, derivative financial assets, trading			on investments
financial liabilities, derivative financial liabilities and other debt
investment

4

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Non-operating income and expenses other than the above	-8,182,729.65	Other items of non-recurring
	gains or losses
Less: income tax effects	2,130,456.31	Income tax effects
Effects of minority interests (after tax)	-925,443.83	Effects of minority interests
Total	96,072,199.61	--

For extraordinary profit and loss items as defined by the Company according to the definition of " Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Extraordinary Profit and Loss", and the "Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Extraordinary Profit and Loss" are defined as extraordinary profit and loss, and the reasons should be explained

• Applicable √ Not applicable

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 Offering Their Securities to the Public - Extraordinary Profit and Loss" as an item of recurring profit or loss.

1. Total number of shareholders and shareholdings of the top 10 shareholders as at the end of the reporting period

1. Total number of holders of ordinary shares, number of holders of preference shares with voting rights restored, and shareholdings of the top 10 shareholders

			Unit: Share(s)
Total number of holders of ordinary	49,426	Total number of the shareholders of restored	0
shares as at the end of reporting	voting right preference shares as at the end of
period		the reporting period (if any)

Status of top 10 shareholders

Name of shareholders	Shareholder capacity	Shareholding	Number of	Number of	Pledged or locked-up
		%	shares	conditional	Shares	Number of
				shares	status	shares

Shenzhen Chuangwei-RGB	Domestic
Electronics Co., Ltd.	non-state-owned legal	54.97%	584,548,508	Pledged	20,000,000
	person
Shi Chi	Overseas natural	3.46%	36,770,524	27,577,893
person
Suining Xingye Asset Operation	State-owned legal	2.06%	21,916,008	Pledged	10,950,000
Company	entity
Xie Xiongqing	Domestic natural	1.91%	20,350,000
person
Skyworth LCD Technology	Overseas legal person	1.87%	19,864,751
Limited
Lin Weijian	Domestic natural	1.79%	19,021,531
	person
Li Pu	Domestic natural	1.29%	13,683,310
	person
Hong Kong Securities Clearing	Overseas legal person	1.00%	10,665,390
Company Limited
Guangzhou office of Huaxia	Other	0.88%	9,400,000
Securities
Tang Yan	Overseas natural	0.61%	6,507,500
	person

5

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

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	584,548,508	RMB ordinary shares	584,548,508
	Electronics Co., Ltd.
	Suining Xing Ye Asset Management	21,916,008	RMB ordinary shares	21,916,008
	Co., Ltd.
	Xie Xiongqing	20,350,000	RMB ordinary shares	20,350,000
	Skyworth LCD Technology Limited	19,864,751	RMB ordinary shares	19,864,751
	Lin Weijian	19,021,531	RMB ordinary shares	19,021,531
	Li Pu	13,683,310	RMB ordinary shares	13,683,310
	Hong Kong Securities Clearing	10,665,390	RMB ordinary shares	10,665,390
	Company Limited
	Guangzhou office of Huaxia	9,400,000	RMB ordinary shares	9,400,000
	Securities
	Shi Chi	9,192,631	RMB ordinary shares	9,192,631
	Tang Yan	6,507,500	RMB ordinary shares	6,507,500
		① Shenzhen Chuangwei-RGB Electronics Co., Ltd. and Skyworth LCD Technology Limited
		are subsidiaries of Skyworth Digital Holdings Limited, and are persons acting in concert legally.
		② Lin Weijian was the supervisor of Yingtan City Pengsheng Investment Co., Ltd.* (鷹潭市鵬
		盛投資有限公司), Lin Weijing was the executive director and general manager of Yingtan City
	Description of the connected	Pengsheng Investment Co., Ltd.* Xie Xiongqing was the executive director and general
	manager of Yingtan City Pengsheng Investment Co., Ltd.* Lin Weijian, Lin Weijing and Xie
	relationship or acting in concert of	Xiongqing are relatives. Yingtan City Pengsheng Investment Co., Ltd.*, Lin Weijian, Xie
	the above shareholders:	Xiongqing, Lin Weijing are persons acting in concert legally. ③ Shi Chi is a director and
		general manager of the Company, while Tang Yan is his spouse and they are therefore persons acting
		in concert legally. ④ Apart from the aforesaid, the Company is not aware of any connected
		relationship that may exist among the other shareholders, nor does it know whether they are
		persons acting in concert according to the "Measures for the Administration of the Takeover of
		Listed Companies".
	Status of engagement in securities	As at 31 March 2021, Xie Xiongqing held an aggregate of 20,350,000 shares of the Company,
	financing business of the top 10
	of which 20,350,000 shares were held through the "investor credit securities account".
	holders of ordinary 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 holders of preference shares of the Company and shareholdings of the top 10 holders of preference shares

□ Applicable √ Not applicable

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Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Section III Important Matters

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

√ Applicable □ Not applicable

Item	As at 31 March	As at 31 December	%		Reason for change
2021	2020	Change
Financial assets held for	100,000,000.00		-	Structured deposit
trading
Derivative financial assets	321,044.40	5,612,125.21	-94.28%	Fair value of outstanding forward foreign
	exchange contracts
Other receivables	243,123,133.19	112,763,989.38	115.60%	Mainly due to the increase in receivables in
	the equity disposal of Qun Xin Company in
				the current period
Assets held for sale				The assets	held for sale measured at the
	-	199,844,394.83	-100.00%	completed	equity disposal of Qun Xin
				Company in the current period
Other current assets	110,546,544.76	79,632,402.07	38.82%Increase in additional tax and tax credit
Derivative financial liabilities				Fair value of outstanding forward foreign
	15,299,158.91	23,392,138.43	-34.60%exchange contracts
Salaries payable	175,394,443.01	133,808,213.01	31.08%Increase in salaries in the current period
Taxes payable				Mainly due to the increase in profit leads to
	48,585,984.64	21,008,735.35	131.27% the increase in corporate income tax payable
Liabilities held for sale				The liabilities held for sale measured at the
	-	83,672,283.93	-100.00% completed	equity disposal of Qun Xin
				Company in the current period
Deferred income tax liabilities				Decrease in income tax liabilities recognised
	198,413.34	1,024,395.34	-80.63%by changes in the fair value of outstanding
				forward foreign exchange contracts
Item	Current amount	Amount in the	Change		Reason for change
previous period
Operating cost	1,862,144,630.54	1,396,402,980.48	33.35%Expansion of sales scale leads to the increase
				in operating costs
Finance costs				Mainly due to the fluctuations of exchange
	2,565,978.32	39,212,807.18	-93.46%rate resulted in the reduction of exchange
				losses
Investment gains (loss shall be				Mainly due to the increase in gain from the
stated as "-")	95,447,441.81	557,091.5617033.17% disposal of equity interests of Qun Xin
				Company
Gain on changes in fair value	-578,889.67	23,262,812.82	-102.49% Losses on changes in fair value of
(loss shall be stated as "-")				undelivered forward foreign exchange
Loss on credit impairment				Mainly due to the increase in expected credit
(loss shall be stated as "-")	-4,010,791.92	-2,124,304.35	88.80%impairment losses
Loss on asset impairment				Decrease in inventory price loss accrued in
(loss shall be stated as "-")	-534,317.47	-6,264,583.44	-91.47%the current period
Gain on disposal of asset	-1,728,468.96	319,805.01	-640.48%	Increase in loss from fixed asset disposal
(loss shall be stated as "-")

7

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Non-operating income	1,377,023.60	781,362.37	76.23%Increase in non-operating income
Non-operating expenses	10,182,044.50	660,119.49	1442.45%Increase in non-operating expenses
Income tax expense			Increase in deferred income tax assets in the
	-768,338.34	4,596,824.51	-116.71% current period
Net cash flows generated from	23,027,205.11	732,004,518.88	-96.85%Increase in purchase payment in the current
operating activities			period
Net cash flows generated from			Invested RMB 100 million in structured
investing activities	-162,362,395.51	-36,093,793.79	-349.83% deposits in the current period
Net cash flows generated from	-223,325,032.43	-707,546,308.24	68.44%Decrease in cash due to repayment of bank
financing activities			loans in the current period

(2) Progress of significant events and analysis of their implications and solutions

• Applicable □ Not applicable

(1) The Company held the 26th meeting of the 10th board of directors on 29 December 2020 to review and approve the "Proposal on the disposal of 55% equity interest in the subsidiary Skyworth Qun Xin Security Technology Company Limited"* 《( 關於公司子公司出售深圳市創維群欣安防科技股份有限公司55%股份的議案》), the Company agreed that Shenzhen Skyworth Digital Technology Co., Ltd.* (深圳創維數字技術有限公司), a wholly-owned subsidiary of the Company, to dispose 55% equity interest in Skyworth Qun Xin Security Technology Company Limited* (深圳市創維群欣安防科技股份有限公司) (hereinafter referred to as "Qun Xin Company") to Shenzhen Yaxinwan Technology Co., Ltd.* (深圳亞新灣科技有限公司) (hereinafter referred to as "Yaxinwan Company") for RMB 165,581,600, following the appraised value of RMB 301,057,300 as pricing basis based on the "Asset Appraisal Report" issued by Shenzhen Pengxin Real Estate Appraisal Co., Ltd.* (深圳市鵬信資產評估土地房地產估價有 限公司) on 2 December 2020 (Pengxin Asset Appraisal Report [2020] No. S151). Pursuant to the "Share Transfer Agreement" signed by the Company and Yaxinwan Company, Shenzhen Skyworth Digital, a subsidiary of the Company, has received the first equity transfer consideration of RMB 10 million (in aggregated) paid by Yaxinwan Company for this transaction on 19 January 2021. Qun Xin Company has completed the filing procedures for the registration of changes in shareholder information, legal representatives, directors, supervisors and senior management in the Market Supervision Commission of Shenzhen Municipality, and obtained the "Notice of Change (record)" and the new "Business License". At the same time, Yaxinwan Company pledged its 55% equity interest in Qun Xin Company to Shenzhen Skyworth Digital, and obtained the "Notice of Establishment Registration of Equity Pledge". The second instalment of equity transfer consideration of RMB 74,450,000 shall be paid before 31 March 2021; the third instalment of equity transfer consideration of RMB 81,131,600 shall be paid before 30 June 2021, for a total amount of RMB 165,581,600. As of the disclosure date of this announcement, Yaxinwan Company has paid RMB 10,000,000, the amount of overdue payments amounting to RMB 74,450,000. Recently, the Company has been communicating with Yaxinwan Company to confirm the payment of the purchase of equity. Since Yaxinwan Company is unable to fulfill payment on schedule due to capital turnover, it negotiates with the Company and requests to postpone the settlement of the aforesaid unpaid consideration by 31 May 2021. Currently, the two parties are still negotiating on the deferred payment, while the Company attaches great importance to the payment that Yaxinwan Company to be paid on time, and will urge it to fulfill its payment obligation as soon as possible. The Company will fulfill its information disclosure obligations in accordance with the follow-up progress. Investors are kindly requested to pay attention to investment risks. Please refer to the "Announcement on the progress of the proposal on the disposal of 55% equity interest in the subsidiary Skyworth Qun Xin Security Technology Company Limited"* (《關於公司子公司出售深圳市創維群欣安防科技股份 有 限 公 司 55% 股 份 的 進 展 公 告 》 ) (Announcement Number: 2021-026) published on the information website (http://www.cninfo.com.cn/) on 9 April 2021 for detailed information.

(2) On 26 March 2021, Skyworth Group Co., Ltd.* (創維集團有限公司) (hereinafter referred to as "Skyworth Group"), an indirect wholly-owned subsidiary of Skyworth Group Limited (00751.HK), entered into the Trademark Transfer Agreement with Sky-well New Energy Automobile Group Co. Ltd.* (開沃新能源汽車集團有限公司) (hereinafter referred to as "Sky-well New

8

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Energy"). Skyworth Group agreed to transfer all its title and interest in the Subject Trademarks bearing the marks " 創 維""SKYWORTH" as registered with the Trademark Office of the State Administration for Industry and Commerce of the PRC under Class 12 of the Nice Classification. At the same time, Sky-well New Energy agreed to grant a license at no charge in favour of Skyworth Automobile Electronics (Shenzhen) Co., Ltd.* (深圳創維汽車智能有限公司) (hereinafter referred to as "Automobile Electronics") in respect of Automobile Electronics' products to use the Subject Trademarks in the scope of automotive display screens, automotive digital LCD meters, automotive driving recorders, automotive interior rearview mirrors, car central control system, remote control vehicles (other than toys) (Trademark Nice Classification: 120257), reversing alarms for vehicles (Trademark Nice Classification: 120026), vehicle running boards (Trademark Nice Classification: 120141), rearview mirrors (Trademark Nice Classification: 120173), signal arms for vehicles (Trademark Nice Classification: 120228), tailboard lifts (parts of land vehicles) (Trademark Nice Classification: 120243), elevating tailgates (parts of land vehicles) (Trademark Nice Classification: 120243), power tailgates (parts of land vehicles) (Trademark Nice Classification: 120243), sun-blinds adapted for automobiles (Trademark Nice Classification: 120245), cigar lighters for automobiles (Trademark Nice Classification: 120266), anti-theft devices for vehicles (Trademark Nice Classification: C120020), windshield wipers (Trademark Nice Classification: 120121), windscreen wipers (Trademark Nice Classification: 120121 ), anti-theft devices for vehicles (Trademark Nice Classification: 120200), anti-dazzle devices for vehicles* (Trademark Nice Classification: 120204), anti-glare devices for vehicles* (Trademark Nice Classification: 120204), anti-theft alarms for vehicles ( Trademark Nice Classification: 120211), horns for vehicles (Trademark Nice Classification: 120212), headlight wipers (Trademark Nice Classification: 120262), side view mirrors for vehicles (Trademark Nice Classification: 120276). If Sky-well New Energy subsequently registered a new trademark, and the products covered by the new trademark belong to the business scope of automotive intelligence, Sky-well New Energy also agrees to grant a perpetual license at no charge in favour of Automobile Electronics' use of the new trademarks in the corresponding product from the date of successful registration of the new trademark. The Licensing Agreement has an initial term of three years, upon expiry of which Automobile Electronics has the sole discretion to renew the Licensing Agreement for another three-year term. Upon expiry of each subsequent renewed term, Automobile Electronics has the sole discretion to renew the Licensing Agreement for another three-year term. In addition, Automobile Electronics may terminate the Licensing Agreement by three months' written notice to Sky-well New Energy. Sky-well New Energy is not entitled to terminate the Licensing Agreement unless Automobile Electronics has committed a fundamental breach of the Licensing Agreement. Meanwhile, Sky-well New Energy undertakes in favour of Automobile Electronics not to participate in the production of the specified products referred to under the Licensing Agreement or otherwise engage in competing business activities with Automobile Electronics.

Pursuant to which Skyworth Automobile may use such trademarks bearing the marks "創維""SKYWORTH" in a range of specified electronic products/electric appliances relating to automobile and vehicles, e.g. display boards, navigation devices, detectors, rear mirrors etc.

Summary of important matters	Date of disclosure	Search index of the ad-hoc report
disclosure website
Regarding the "Announcement on the	30 December 2020	www.cninfo.com.cn
proposal on the disposal of 55% equity
21 January 2021	www.cninfo.com.cn
interest in the subsidiary Skyworth Qun
Xin Security Technology Company
Limited"* (《公司子公司出售深圳市創維	9 April 2021	www.cninfo.com.cn
群欣安防科技股份有限公司155%股份的
公告》) (2020-067,2021-004,2021-026)
Progress in the repurchase of shares
□ Applicable √ Not applicable

1 "The name of Skyworth Qun Xin Security Technology Company Limited* (深圳市創維群欣安防科技股份有限公司) has changed to Shenzhen Baolong Qunxin Technology Co., Ltd.* (深圳寶龍群欣科技有限公司).

9

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Progress in reducing repurchased shares through centralised bidding

• Applicable √ Not applicable

1. Undertakings of the Company's actual controller, shareholders, related parties, acquirers and the Company (being the promised parties) that had not been fulfilled during the reporting period

• Applicable √ Not applicable

The Company did not have any undertaking of its actual controller, shareholders, related parties, acquirers and the Company (being

the promised parties) that had not been fulfilled during the reporting period.

10

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

1. Situation of investment in securities

1. Investment in securities

√ Applicable □ Not applicable

Unit: RMB

Book

Gains and

losses

value

Profit or

from

Accrued

Measurement

at

Current

loss

Book value at

Name of

Securities

Securities

Initial

changes in

cumulative

Current amount

Accounting

Source of

models in

beginning

amount

during

end of reporting

securities

code

abbreviation

investment cost

fair value

changes in

purchased

accounts

funding

accounting

of

sold

reporting

period

in the

fair value

reporting

period

current

period

period

Not

Corporate

Fair value

Trading

Idle raised

Bank WMPs

structured

100,000,000.00

0.00

0.00

0.00

100,000,000.00

0.00

0.00

100,000,000.00

financial

applicable

measurement

funds

deposit

assets

Total

100,000,000.00

--

0.00

0.00

0.00

100,000,000.00

0.00

0.00

100,000,000.00

--

--

Date of announcement relating to the

securities investment approved at the28 September 2020 board meeting

Date of announcement relating to the

securities investment approved at theNot applicable shareholders' (if any)

Note: The above structured deposits will be expired on 13 April 2021, with a retracted principal amount of RMB 100,000,000.00 and gains of RMB 700,000.00.

11

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

2. Situation of investment in derivative

√ Applicable □ Not applicable

Unit: RMB ten thousand

Percentage of

investment

Name of the

Investment

Amount

Amount sold

Amount of

Investment

amount at

Actual profit

Connected

Type of

Initial

amount at

purchased

amount at

period end in

or loss

entity operating

Connected

transaction

derivative

investment

Commencement

Termination

beginning of

during

during

provision for

end of

net assets of

during

derivative

relationship

date

date

reporting

impairment

investment

(Yes/No)

investment

amount

reporting

reporting

period

(if any)

reporting

the Company

reporting

period

period

period

at end of

period

reporting

period

Standard

Forward

10 January

Chartered Bank

No

No

foreign

1,298.28

17 January 2020

1,298.28

1,298.28

0.00%

58.72

2021

(China) Limited

exchange

Standard

Forward

11 January

Chartered Bank

No

No

foreign

909.82

18 June

2020

909.82

909.82

0.00%

50.87

(China) Limited

exchange

2021

Standard

Forward

11 September

11 January

Chartered Bank

No

No

foreign

337.34

337.34

337.34

0.00%

18.84

2020

2021

(China) Limited

exchange

Standard

Forward

18

June

10 February

Chartered Bank

No

No

foreign

2,547.66

2,547.66

2,547.66

0.00%

-4.3

2020

2021

(China) Limited

exchange

Standard

Forward

10 March

Chartered Bank

No

No

foreign

1,612.57

27 July

2020

1,612.57

1,612.57

0.00%

52.92

2021

(China) Limited

exchange

Standard

Forward

12 April

Chartered Bank

No

No

foreign

1,639.67

27 July

2020

1,639.67

1,639.67

0.37%

1.22

2021

(China) Limited

exchange

Standard

Forward

10 May

Chartered Bank

No

No

foreign

1,649.69

27 July

2020

1,649.69

1,649.69

0.38%

2.31

2021

(China) Limited

exchange

Standard

Forward

10 June

Chartered Bank

No

No

foreign

1,832.83

27 July

2020

1,832.83

1,832.83

0.42%

3.76

2021

(China) Limited

exchange

12

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Standard			Forward
Chartered Bank	No	No	foreign	1,833.11	27 July 2020	12 July 2021	1,833.11				1,833.11	0.42%	5.02
(China) Limited			exchange
Standard			Forward		3 September	10 August
Chartered Bank	No	No	foreign	1,761.56	1,761.56				1,761.56	0.40%	6.09
(China) Limited			exchange		2020	2021
Standard			Forward		11 September	10 February
Chartered Bank	No	No	foreign	202.45	202.45		202.45			0.00%	-0.41
(China) Limited			exchange		2020	2021
Standard			Forward		7 December	14 October
Chartered Bank	No	No	foreign	342.59	342.59				342.59	0.08%	1.74
(China) Limited			exchange		2020	2021
Standard			Forward		7	December	10
Chartered Bank	No	No	foreign	1,677.47	November	1,677.47				1,677.47	0.38%	9.76
(China) Limited			exchange		2020	2021
Standard			Forward		11	January	10
Chartered Bank	No	No	foreign	569.99	September		569.99			569.99	0.13%	-33.39
2021
(China) Limited			exchange				2021
Standard			Forward		11	January	10
Chartered Bank	No	No	foreign	650.52	November		650.52			650.52	0.15%	-37.92
2021
(China) Limited			exchange				2021
Standard			Forward		11	January	10
Chartered Bank	No	No	foreign	1,626.69	December		1,626.69			1,626.69	0.37%	-93.57
2021
(China) Limited			exchange				2021
Standard			Forward				10 January
Chartered Bank	No	No	foreign	1,756.31	16 March 2021		1,756.31			1,756.31	0.40%	-11.52
2022
(China) Limited			exchange
Standard			Forward		16	March	10 February
Chartered Bank	No	No	foreign	1,464.24		1,464.24			1,464.24	0.33%	-8.62
(China) Limited			exchange		2021	2022

13

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Standard

Forward

10 March

Chartered Bank

No

No

foreign

1,516.97

16 March 2021

1,516.97

1,516.97

0.35%

-8.48

2022

(China) Limited

exchange

Standard

Forward

7 January

Chartered Bank

No

No

foreign

20,166

20 October 2020

20,166

20,166

0.00%

1.29

(China) Limited

exchange

2021

Standard

No

No

Forward

6,477.11

29

31

6,477.11

6,477.11

1.47%

-65.03

Chartered Bank

foreign

January 2021

December

(China) Limited

exchange

2021

Standard

Forward

20 January

Chartered Bank

No

No

foreign

191.86

30 October 2020

191.86

191.86

0.00%

2.97

(China) Limited

exchange

2021

Standard

Forward

17 November

10 February

Chartered Bank

No

No

foreign

188.31

188.31

188.31

0.00%

3.04

(China) Limited

exchange

2020

2021

Standard

Forward

5 November

10 March

Chartered Bank

No

No

foreign

188.31

188.31

188.31

0.00%

6.47

2020

2021

(China) Limited

exchange

Standard

Forward

Chartered Bank

No

No

foreign

593.26

29 January 2021

8 April 2021

593.26

593.26

0.13%

10.63

(China) Limited

exchange

Standard

Forward

Chartered Bank

No

No

foreign

318.33

8 February 2021

9 June 2021

318.33

318.33

0.07%

-3.26

(China) Limited

exchange

Erste Bank der

Forward

oesterreichische

6 November

28 January

No

No

foreign

787.19

787.19

787.19

0.00%

5.5

n Sparkassen

exchange

2020

2021

AG

14

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Erste Bank der

Forward

oesterreichische

30 November

26 February

No

No

foreign

787.19

787.19

787.19

0.00%

6.05

n Sparkassen

exchange

2020

2021

AG

Erste Bank der

Forward

oesterreichische

31 December

29 March

No

No

foreign

1,605

1,605

1,605

0.00%

52

n Sparkassen

exchange

2020

2021

AG

Erste Bank der

Forward

oesterreichische

31 December

29 March

No

No

foreign

802.5

802.5

802.5

0.00%

26.05

n Sparkassen

exchange

2020

2021

AG

Erste Bank der

Forward

oesterreichische

29 April

No

No

foreign

647.13

1 February 2021

647.13

647.13

0.15%

20.3

n Sparkassen

2021

AG

exchange

Erste Bank der

Forward

oesterreichische

29 April

No

No

foreign

2,299.96

30 March 2021

2,299.96

2,299.96

0.52%

0.04

n Sparkassen

exchange

2021

AG

15

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Erste Bank der			Forward
oesterreichische					27 May
No	No	foreign	985.7	30 March 2021		985.7			985.7	0.22%	0.03
n Sparkassen			exchange			2021
AG
Erste Bank der			Forward
oesterreichische					27 May
No	No	foreign	1,314.26	31 March 2021		1,314.26			1,314.26	0.30%	-0.01
n Sparkassen			exchange			2021
AG
Erste Bank der			Forward
oesterreichische					29 June
No	No	foreign	657.13	31 March 2021		657.13			657.13	0.15%	-0.03
n Sparkassen			exchange			2021
AG
Erste Bank der			Forward
oesterreichische					29 June
No	No	foreign	1,314.26	31 March 2021		1,314.26			1,314.26	0.30%	-0.06
n Sparkassen	2021
AG			exchange
Industrial Bank
Co., Ltd.			Forward		22 February	31 March
Shenzhen	No	No	foreign	841.27		841.27	841.27			0.00%	-11.28
2021	2021
High-tech Zone			exchange
Sub-branch
China Minsheng			Forward			31 May
Bank Shenzhen	No	No	foreign	1,314.26	19 March 2021		1,314.26			1,314.26	0.30%	-8.36
Branch			exchange			2021
Total				66,708.79	--	--	42,361.4	24,347.39	32,465.75		34,243.04	7.79%	59.38

16

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

Derivative investment sources	Private capital
Litigation involved (if applicable)	Nil
Date of announcement relating to the derivative investment	19 March 2021
approved at the board meeting (if any)
Date of announcement relating to the derivative investment	15 April 2021
approved at the 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 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.
	Risk response to forward foreign exchange transactions:
	① The Company has formulated the "Forward Foreign Exchange Business Internal Control System" 《遠期外匯交易業務內部控
Risk analysis of positions in derivatives and control measures	制制度》, which clearly stipulates the principles of business operation, approval authority and scope of duties, internal operation
(including but not limited to market risk, liquidity risk, credit	flow, follow-up management, information isolation measures, information disclosure and file management. According to the system,
risk, operational risk, legal risk, etc.) in the reporting period	the Company will arrange strictly in accordance with the provisions in terms of professional staff arrangement, establishment of
approved at the shareholders' meeting (if any)	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; ②The
	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"《遠期外匯交易業務內部控制制
	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 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" 《遠期外匯交易業務內部控制制度》, 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.

17

		Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.
	During the reporting period, if the market price or the fair value	The Company's auditing for the fair value of derivatives is mainly due to the unexpired contract of forward-to-date foreign exchange
	of the derivative is changed, the analysis of the fair value of the	settlement transactions signed by the Company and the Bank within the reporting period. The fair value gains and losses are
	derivative shall disclose the method and the relevant	recognised accordingly to the difference between the forward offer and the forward exchange rate agreed upon in the contract, which
	assumptions with parameters	had not expired as of the transactional 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 with the previous reporting period
		The Company's auditing for the fair value of derivatives is mainly due to the unexpired contract of forward-to-date foreign exchange
	Special opinions of independent directors on the Company's	settlement transactions signed by the Company and the Bank within the reporting period. The fair value gains and losses are
	derivative investment and risk control	recognised accordingly to the difference between the forward offer and the forward exchange rate agreed upon in the contract, which
		had not expired as of the transactional financial asset or liability date, the proposal was agreed

18

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

(5) Progress of fund-raising investment projects

• Applicable □ Not applicable

As approved by the China Securities Regulatory Commission ("CSRC") in the "Approval in Relation to the Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd. (Zheng Jian Xu Ke [2018] No. 1913)"* (《關於核准創維數字股份有限 公司公開發行可轉換公司債券的批復》), the Company publicly issued RMB 10.4 million convertible corporate bonds on 15 April 2019 at an issuance price of RMB100 each. The total amount of capital raised was RMB 1,040,000,000, while the net proceeds, after deducting the underwriting fees, sponsorship fees and other issuance expenses of RMB 8,713,600, amounted to RMB 1,031,286,400. The Company has received the actual net proceeds of RMB 1,031,286,400 (after deducting the issuance costs) on 19 April 2019. The above-mentionedfund-raising situation has been verified by Dahua Certified Public Accountants (Special General Partnership) and the "Verification Report on Funds Raised by the Public Issuance of Convertible Corporate Bonds by Skyworth Digital Co., Ltd. (Dahua Verification [2019] No. 000082)"* (《創維數字股份有限公司公開發行可轉換公司債券募集資金驗證報告》) was issued. The Company has carried out special account storage management for the raised funds, and signed a fund-raising supervision agreement with special account banks and sponsors. Please refer to the "Announcement on Signing the Supervision Agreement for Raised Funds"* (《關於簽訂募集資金監管協定的公告》) published on the information website （http://www.cninfo.com.cn）on 26 April 2019 for detailed information.

On 27 May 2019, the Company held the 16th meeting of the 10th board of directors, at which the Company deliberated and approved the "Proposal for using convertible bonds to raise funds to replace the pre-invested funds in fund-raising projects"* (《關於 使用可轉債募集資金置換預先投入募投項目自籌資金的議案》) for using the same amount of the raised funds to replace the self-raised funds of RMB 81,489,900 which have been invested in fund-raising projects in advance.

On 27 May 2019, the Company held the 16th meeting of the 10th board of directors, in which the Company reviewed and approved the "Proposal for using partially idle convertible bonds to raise funds to temporarily supplement the working capital"*(《關 於使用部分閒置可轉債募集資金暫時補充流動資金的議案》), in order to ensure the investment projects with raised funds are implemented on schedule, it was proposed to use the idle raised funds of RMB 300 million (including RMB 300 million) to temporarily supplement the working capital. The use period shall not exceed 12 months and return to the special account for raised funds after mature. During the above-mentioned authorisation period, the Company made reasonable arrangements for the use of the funds and withdrew RMB 116 million from the special account of raised funds to temporary supplement the working capital. On 6 March 2020, RMB 116 million of the idle funds used to supplement the working capital have been returned to the Company's special fund-raising account, and the Company's sponsor and sponsor representatives have been notified. On 19 March 2021, the Company held the 27th meeting of the 10th board of directors, in which the Company reviewed and approved the "Proposal for using partially idle convertible bonds to raise funds to temporarily supplement the working capital"*(《關於使用部分閒置可轉債募集資金暫時補 充流動資金的議案》), it was proposed to use the idle raised funds of not more than RMB 180 million (including RMB 180 million) to temporarily supplement the working capital. The use period shall not exceed 12 months from the date of approval granted by the Company's board of director. As of 31 March 2021, the Company's actual use of idle funds to supplement the working capital was RMB 0.

On 28 September 2020, the Company held the 24th meeting of the 10th board of directors, in which the Company reviewed and approved the "Proposal for using partially idle raised funds and own capital to purchase WMPs" *(關於使用部分閒置募集資金 和自有資金購買理財產品的議案), in order to make full use of idle raised funds and increase capital returns. While guaranteeing the smooth progress of investment projects with raised funds and the safety of raised funds, the Company agreed that the Company and its wholly-owned subsidiaries shall use idle raised funds of not more than RMB 150 million to purchase high security, good liquidity bank guaranteed WMPs within 12 months from the date of approval granted by the board of directors. Within the above cap, funds can be used on a rolling basis. As of 31 March 2021, the Company's actual use of idle raised funds to purchase bank WMPs with capital protection was RMB 100 million.

19

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

As of 31 March 2021, the special account of raised funds has accumulatively obtained bank interest and expenditure of net bank fees of RMB 64,723,500; the cumulative use of raised funds was RMB 254,953,900. Among them, a total of RMB 154,953,900 (including replacement of pre-investedfund-raising projects with raised funds of RMB 81,489,900) has been invested in fund-raising projects and RMB 10,000,000 of partially idle raised funds has been used to purchase WMPs; the remaining balance of the special account of raised funds was RMB 841,056,000. According to the aforementioned fund-raising supervision agreement, the above-mentioned raised funds are deposited in the special account for raised funds.

(6) January-June 2021 business performance forecast

A warning and explanation of the reason for predicting that the cumulative net profit from the beginning of the year to the end of the

next reporting period may be a loss or a significant change as compared with the same period of the previous year

• Applicable √ Not applicable

(7) Material contracts for daily operations

□ Applicable √ Not applicable

20

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

(8) Entrust wealth management

√ Applicable □ Not applicable

Unit: ten thousand

Type

Source of funds for entrusted wealth

Amount of entrusted

Unexpired balance

Amount not recovered

management

wealth management

overdue

Bank WMPs

Idle raised funds

10,000

10,000

0

Total

10,000

10,000

0

The detailed situation of high-risk entrusted wealth management with large single amount or low security, poor liquidity and no capital protection

√ Applicable

□ Not applicable

Unit: ten thousand

Actual

Actual

Any

Summary

profit and

recovery

of matters

Trustee

Amount of

Whether

entrusted

Type of

Source

Method for

Annual

Expected

loss

of profits

and

name

Trustee

Type of

Commencement

Termination

Investment

provision for

through

wealth

(or name

(or

product

Amount

of

date

date

direction

return

rate for

return

amount

and losses

impairment

legal

management

connected

fund

determining

reference

(if any)

trustee)

during the

during the

query

of trustee)

(if any)

procedures

plans in the

reporting

reporting

index

future

period

period

(if any)

China

Floating

Linked

Everbright

exchange

income

Idle

13 January

Corporate

Bank Co.,

Bank

10,000

13 April

rate to

2.80%

0

0

-

0

Yes

Yes

2021-003

with

raised

structured

Ltd.

capital

funds

2021

2021

deposit

corporate

Shenzhen

protection

structured

Branch

deposit

Total

10,000

--

--

--

--

--

--

0

0

--

0

--

--

--

Entrusted wealth management is expected to be unable to recover the principal or there are other situations that may cause impairment

□ Applicable

√ Not applicable

21

Extract of 2021 first quarterly results announcement of Skyworth Digital Co., Ltd.

(9) Situation of illegal external guarantee

• Applicable √ Not applicable

No illegal external guarantee during the reporting period.

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

• Applicable √ Not applicable

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

non-operating purpose during the reporting period.

1. No controlling shareholder(s) and its/their connected parties occupied the funds of the listed company for non-operating purpose during the reporting period.

• Applicable □ Not applicable

					The main content of the
Reception time	Reception	Type of	Reception	Party involved	discussion	The basic situation index of
place	reception	party	and the information	research
					provided
					Understanding of	See the website
	Online results			Company's	(http://www.cninfo.com.cn)
26 March 2021	Other	Other
	investors	Company's business	Investor Relations Activity
	presentation
					development	List

* For identification purpose onlyi

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

22