TCL Electronics' Overall Sales Volume of TV Sets Reaches 28.61 Million in 2018

HONG KONG,Jan. 15,2019 -- TCL Electronics Holdings Limited ("TCL Electronics" or "the Company") (01070.HK)announcedthe sales volumesof its TV products in the FourthQuarter (Octoberto December) andin 2018 (January to December) today.The sales volume in 2018 rose by 23.1% year-on-year to 28.61 million sets,exceeding the full-year target of 28.30 million sets which had been adjusted upward,and hitting a historichigh.

Benefiting from the continuousimprovement in its product competitivenessand brand power,TCL Electronics' LCD TV sales volume grew by 5.2% year-on-year to 7.48 millionsets in the Fourth Quarter of 2018,among which 5.97 millionwere smart TVs and 3.07 millionwere 4K TVs,up by 22.1% and 48.4% year-on-year,respectively. The overall LCD TV sales volume in 2018 increased to 28.61 millionsets,with a growthof 23.1% year-on-year. The overall sales volume of smart TVs and 4K TVs for the year increased significantly to 21.18 millionsets and 9.18 millionsets,rising by40.3% and 58.2% year-on-year,respectively. This demonstrates continuous optimization of product mix and sales channels.

In overseas markets,the Company's LCD TV sales volume grew by 16.9% year-on-year to 4.68 millionsets in the Fourth Quarter. The LCD TV sales volume in 2018 rose by 29.5% year-on-year to 18.21 millionsets for the year. Overseas markets contributedover 60% to the overall sales volume. During 2018,the Company fully implemented its globalization strategyby actively expanding into new marketswith great growth potential while cultivating currentoverseas sales channels. It accelerated its brand internationalization and continued to reinforce its brand influence. Sales volumes in the North American market continued to consolidate its leading positionand climbed to2nd place in terms of sales volume in the Third Quarter and November in 2018,according to the latest NPD market research report. In the European markets and the emerging markets,the Company further expanded its sales channels and maintained on a fast-growingtrack.

In the PRC market,the Company's LCD TV sales volume increased to 2.81 millionsets in the Fourth Quarter,within which sales volume of smart TVs and 4K TVs accounted for 83.7% and 58.9%,respectively (excluding ODM business in both categories). The LCD TV sales volume in 2018 reached 10.39 millionsets and rose by 13.4% year-on-year,within which sales volume of smart TVs and 4K TVs represented 82.0% and 54.1%,respectively (excluding ODM business in both categories). The Company will continue to optimize its productmix and sales channels,boosting its competitivenessin the PRCmarket.

The user baseofinternet businesscontinued to expand. The number of newly-activated users operated by Huan reached 8.37 millionin 2018,up by 34.0% year-on-year. The number of accumulated users exceeded 30 million and soared to31.91 million,rising by 35.6% year-on-year,and the daily average number of active users jumpedby 41.4%year-on-yearto 15.28 million(Source: Huan Technology Co.,Ltd. "Huan").

TCL Electronics deepenedits globalization strategy in 2018. In the future,the Company will continue to cultivateNorth American market,European markets and emerging marketswith huge potential,such as India,Russia and South America,to continuously expandits global market share. In December 2018,TCL Electronics announced to establishthe integratedmanufacturing bases in India with Shenzhen China Star Optoelectronics Technology Co.,Ltd,and enter the huge potential Indian market in full swing,whichdemonstratesthe Company'sstrategic layout and determination of sustainable growth in the overseas markets. In addition,the Company won the "Listed Company Awards of Excellence 2018" from the Hong Kong Economic Journal (HKEJ)recently,one of the most authoritative financial media in Hong Kong,and was listed on "Best Performance in Investment Return Stock under Stock Connect" at the "2018 Golden Wing Awards" organized by Securities Times,a renowned financial media in mainland China,symbolizingrecognitionfromcapital marketsin bothmainland China and Hong KongforTCL Electronics' comprehensive strength,results performance,and development prospects. In the future,the Company will continue to take advantage of its first-mover globalization strategy,deepen implementation of its diversified business layout and development strategy,empower itselfto become an international conglomerate in the electronics industry,and create greater value for shareholders.

From January to December 2018(Unaudited)

Accumulated

January-

January-

Y-o-Y

October-

October-

Y-o-Y

Total (As at

December

December

Change

December

December

Change

December

2018

2017

(%)

2018

2017

(%)

2018)

LCDTVsales volume

N/A

28,606,271

23,231,141

23.1%

7,483,597

7,116,623

5.2%

Of which: Smart TVs

N/A

21,181,963

15,094,106

40.3%

5,972,789

4,892,273

22.1%

－PRC Market

N/A

10,392,367

9,163,578

13.4%

2,807,600

3,117,103

-9.9%

－Overseas Markets

N/A

18,213,904

14,067,563

29.5%

4,675,997

3,999,520

16.9%

Proportion of Smart TV

in the PRC Market

(excluding ODM

business) (%)

N/A

82.0%

76.3%

N/A

83.7%

79.9%

N/A

Proportion of 4KTV in

the PRC Market

(excluding ODM

business) (%)

N/A

54.1%

42.7%

N/A

58.9%

47.6%

N/A

Number of TCL

Activated Smart TV

Users (1)

31,907,420

8,370,898

6,247,088

34.0%

2,597,239

1,771,703

46.6%

Daily Average Number

of Active Users (2) (3)

N/A

15,282,347

10,809,751

41.4%

N/A

N/A

N/A

(1) Number of TCL Activated Smart TV Users refers to the number of users who use the Internet TV web servicemore than once

(2) Daily Average Number of Active Users refers to the number of non-repeat individual users who visitwithin seven days

(3) December2018data

About TCL Electronics

Headquartered in China,TCL Electronics Holdings Limited (HKSE stock code: 01070) is one of the leading players in the global TV industry,and is engaged in the research and development,manufacturing and distribution of consumer electronic products. Through a new product-and-user-oriented business model that focuses primarily on a "double +" strategy which includes "smart + internet" and "products + services" as the main direction,TCL Electronics strives to build a comprehensive ecosystem for smart TVs that provides users with a superior experience with its smart products and services. According to the latest Sigmaintell report,the Company ranked No.3 in the global TV market with a market share of 11.8% in terms of sales volume in the first half of 2018. According to CMM omni-channel data,the Company ranked No.1 in the PRC TV market with brand price index of 113. TCL Electronics is included in the eligible shares list of the Shenzhen-Hong Kong Stock Connect Scheme and Hang Seng Stock Connect Hong Kong Index. For more information,please visit its website: http://electronics.tcl.com