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TCL Communication / Alcatel May Shipment Figures

TCL

TCL Communication Technology Holdings Limited (“TCL Communication” or the “Company” which, together with its subsidiaries and its affiliates, is referred to as the “Group”; HKSE stock code: 2618) announced the unaudited figures for shipments of handsets and other products in May and the first 5 months of 2016.

The Group’s total sales volume of handsets and other products increased by 11% year-on-year to 6,133,000units in May 2016. Sales volume of handsets and other products in overseas markets increased by 24% year-on-year to 5,869,000 units, while shipments in China market totalled 264,000 units. Sales volume of smart devices totalled 3,219,000 units, and accounted for 52% of the Group’s total shipment for the month. For the first 5 months of 2016, the cumulative sales volume of handsets and other productstotalled 27,985,000 units, while the cumulative sales volume of smart devices totalled 14,597,000 units.

As a handset manufacturer committed to providing premium products and service experiences, the Group continues to expand investment in VR (Virtual Reality) technology and equipment development. In May, the Group is pleased to announce that its Alcatel brand has become one of the first global handset brands to support Google’s Daydream platform, and will be launching Daydream-ready smartphone in the first half of 2017. Currently, the Group’s engineers and designers are working closely with Google to enhance the user experience of the platform, by offering an immersive audio experience, better display and premium content, including music, gaming and entertainment. In addition, the Group is dedicated to enriching the VR ecosystem by providing innovative solutions ranging from hardware, content and user experience. The Group continues its commitment to offering consumers the latest VR technology that resonates with their needs.

In addition, latest series of products have been launched gradually across the globe. The Group launched three new smart mobile devices in the Philippines in May, including its flagship smartphone IDOL 4S with VR box, first 2-in-1 tablet with Windows 10, PLUS 10 with 4G LTE Keyboard, and track and talk kid’s watch MOVE TIME. The launch of new line-up of products demonstrates the Group’s ambition to regain its market share in Asia Pacific region.

Following the establishment of a RMB10 billion industry merger and acquisition fund (“M&A fund”) by TCL Corporation and Tsinghua Unigroup in early 2016, TCL Corporation teamed up with the Hubei Province Yangtze River Guide Fund and Hubei Science & Technology Investment in May to set up another RMB10 billion industry M&A fund. The investment is another major step of TCL Corporation’s industry development plan. By seizing the opportunities brought by emerging industries along the Yangtze River Economic Belt, TCL Corporation and the Group are investing with a focus on fields such as semiconductors and “Internet+” to establish an industry-chain-integrated ecosystem, promote comprehensive “Intelligence + Internet” strategic transformation and to build and enhance the “Product + Service” business model.

Sales Volume of Handsets and Other Products (Unaudited Data)

(Units ’000)

May

2016

May

2015

YoY

Change

(%)

Jan – May 2016 Jan – May 2015

YoY

Change

(%)

Total 6,133 5,508 +11% 27,985 27,064 +3%

Including

smart devices

3,219 3,687 -13% 14,597 17,023 -14%

Sales volume data are also available on the Group’s website: http://tclcom.tcl.com.