 Hi, my name is Matt Barber. Welcome to the Hisense 2020 CES booth. One of the first products we're going to look at today is our prototype 8K television. The model that we see here is an 85 inch 8K television, so there's over 33 million pixels to deliver the highest resolution possible in LCD panels today. Right now, as I said, it is a prototype, so we're still working on it, but it is going to be quantum dot. It does have 8K AI upscaling and a pretty unique 4.2.2 multi-channel speaker system where there are actually four speakers spread around the frame of the television and built into the underneath display cabinet. In this particular unit, it will come with this secondary stand with an LED display on it that is actually able to be integrated into things such as your smart home. So you can actually control your smart home from that LED display, as well as showcase things like music lyrics or obviously information about your favorite artists, bring up movies that you might want to actually display on the television, so a very versatile kind of secondary LED display to complement the 8K screen. Another prototype that we have at CES 2020 for High Sense is our 8K ULED XD television. Now, this is a little layer. This is dual layer, so when you hear dual layer, or excuse me, dual cell technology and XD, they're talking about the exact same thing. And what we've done with this technology is taken a 4K panel and a 2K panel and physically bonded them together. Now, there is still an LED backlight panel and with that LED backlight panel and the 2K panel, we are creating a level of contrast never seen before in LCD technology. The 2K panel acts as luminance control for the LED backlight that gives us OLED level blacks while maintaining LED brightness levels, basically bringing the best of both worlds of OLED and LCD together into one product. It's a trick that's a little bit loss of brightness. I'm sorry? Because of the second layer, there's maybe some loss of brightness a little bit. So, that has been a common question in my humble opinion given that some of our units have over a thousand nits peak brightness. If there is any loss of light, you can't tell. So, there's going to be over a thousand nits. Now, the 75 inch that we're seeing here in the 8K, again, being a prototype, it hasn't been set yet. We're saying on our placard over here that it is a thousand nits, but when it comes to market, could be more. Could be more. The one that was before was not dual layer, might be bright. Correct. Correct. It might be a 2000. They did not give us an account for it, so I don't want to tell you the wrong thing. But it was definitely coming to market, or is it already on market? Well, that's the interesting, that's a very interesting question. And here's why. In late summer of 2019, Heisen's actually released a dual cell television in domestic market China, therefore becoming the first company in the world to deliver dual cell technology to the consumer in our ULED XD brand. So, that being said, a lot of consumers are asking, well, when is this coming to the U.S.? Well, the 65 XD 9G is tentatively slated for Q3, Q4 of this year. And this has the exact same technology as we saw with the 75 inch over there. But again, this is the 4K, 2K concept as opposed to the 8K concept. Q3, Q4. Yes, sir. So, you ramping up mass production because it's not easy to mass produce something like dual cell. Maybe that's why it's not ready yet for globally. Well, I mean, we are talking about LCD panels. So, the creation of the panels themselves is fairly common nowadays since the commoditization of the technology. The bonding of it doesn't take that long, but it's the alignment. It's the alignment that is key and is crucial there. But we are at a point now where we feel like we're able to not only do it fairly quickly, but also be able to get the image that you see here done correctly. This one's going to be a thousand nits brightness. Quantum dot, thousand nits, Dolby vision, Dolby Atmos. Two million zones. Two million on the second cell. Absolutely. So, and again, I don't want to confuse anyone and I don't want people to misunderstand. So, there is an LED backlight panel in there. In the 65-inch, that LED backlight panel is broken into 132 local dimming zones. Now, the 2K panel is turned into essentially a 2 million zone luminance control for that backlight panel. So, in that regard, you have 2 million dimming zones. One of the best ways to kind of illustrate that is our demo right over here. Now, what we see here is basically a full image, just like we saw at the front end of the 65x90. And on the right hand side, you have essentially the color panel turned off. So, what we're showing you here is the 1080p or the 2K panel luminance control prior to hitting the quantum dot layer as well as the 4K resolution layer. So, you don't have any quantum dot on this one, or you turned them off? We've turned everything off that's in front of the 2K panel. So, what we're showing you is 2 million dimming zones, essentially creating the image twice, once in grayscale, and then once in color, again, to create that 150,000 to one contrast ratio. When you talk about the 132 LED zones behind, would it help having mini LED also to have like thousands of them or no? Would it help? Yes. Anytime you have more control over the light, you're going to have more control over your contrast ratio, but right now what we're working with are the standard LEDs. You also do mini LED? We've been working on it, but it's not anything that we brought to CES this year. These look amazing. So, you say Q3? Q3, Q4, somewhere on that time frame. And what you think is going to be the pricing is going to be definitely more affordable than OLEDs? Absolutely. It's going to be more affordable. As I said, it's going to bring you the best of both worlds between OLED and LED. What we're doing, as far as pricing is concerned, is actually going to wait and get the pricing level of 65-inch OLEDs at that time frame, look at what the landscape is, and then come in hundreds of dollars less than what OLEDs we're going for at that time. Now, that being said, we're probably looking at something sub-$2,000. Can you do half of OLED price? Depends on which model OLED you're looking at. I mean, there's $5,000 and $6,000 OLEDs out there, so it just really depends. A, to be comparisons without cheating in anything, do consumers actually think this is actually better than OLED? Well, I think we're still in the point where we're educating consumers of what this technology is. So, I don't know that we've really got enough sample size to be able to say that consumers believe that this technology is going to overperform or take over OLED. Personally, I believe that it will. I think that this delivers a comparable contrast to what OLED does without any of the fallbacks. There's no potential for burn in here, and the value is there. Potentially double the brightness compared to OLED. Absolutely. And quantum dots, OLEDs don't do that yet. We have quantum dots in here. Better colors than OLED, potentially. And definitely better price, hopefully. Better pricing, definitely. Because, as I said, when it comes to market, we're going to make sure that we are undercutting OLED by several hundred dollars. Is there any chance you can do a 4K on the second layer? We're actually working on that. Last year, when we debuted this technology in a non-finished form, one of the things that we had in the booth was a 4K to 4K. So it is something that we're working on. That was a prototype. We're seeing that it's taking a little bit more of an effort to line it up, pixel to pixel, for a 4K to 4K panel. So we're making sure that that is a mature product before we actually bring it out to market. And by Q3, you might have even more nits. Who knows? Absolutely. All right. That's, and this is going to be 75. So we can, yeah, we actually have the ability to do this technology in a 75, a 98. We can actually move this technology across category. We have a professional 32 inch display unit if you'd like to see it. This one is also 98. Yeah, both of these are the same unit, 98 inches. We even brought the dual cell technology to the computer monitoring world. So this also prototype model, but it is 4K. It is using our dual cell technology. And unfortunately, I don't have much information on it other than that we are featuring our XD dual cell technology in other categories other than consumer television panels. So you're going big time on to a layer? Absolutely. You think this is definitely... I think that this is a very innovative technology that you're not seeing from other manufacturers. I'm excited at the fact that Hisense has been the first company in the world to bring this to market. But we're innovators in all kinds of technologies, not just LED panels. We're innovators in laser television. We're innovators in smart platforms. I mean, we're one of the few companies in the world that creates their own video chipset. We do a lot of different things and I'm very proud of each one of them. So here do you have a demo showing the 100 zone standard system that's on the market right now? So 1000 zone, which is mini LED, right? Kind of thousands of zone and millions. And the best expression of this sort of AB contrast, like we have in this particular demo, is the one that we looked at earlier that shows it as it would be in the commercial market, as it would be in your home, in that it's creating the full 2K grayscale image prior to the 4K color resolution panel, rather. All right. And that demo? This demo is kind of showing casing the different contrast levels. So here we're looking at 5000 to one. Here we're looking at 10,000 to one. And then finally the full 150,000 to one. All right. So still have six months to wait for the XD? Yes. Something like that. And what else are you sharing at the booth? So laser television is a huge one for us, for anyone that has the opportunity, you should check out our press conference where Dr. Liu spoke at length about the different new iterations of laser television that we're bringing to market. The ones that we're looking at here, the one to our left, is the 120L10E1. So this particular laser television has been on the US market now since about April of last year. And this is one of our dual color laser televisions. So at 120 inch size, we're probably about, I don't know, a foot away from the back wall. So you can get incredibly close to the screen with ultra short throw projection technology that's only able to be done through lasers. So with lasers, you don't have the problems that you typically do with an LED bulb style projection like you had in rear projection or like had long throw. So you don't have to do a replacement of the bulb every couple of years and have to essentially incur that recurring maintenance fee to maintain the brightness of the unit. These lasers that we put in all of our laser televisions will run about 25,000 on hours. So you're getting about the lifespan that you would out of a typical LED panel. So they have that longevity of life that consumers expect. With this particular unit, excuse me, you're getting the full cadre. It's everything that an LED television would come to have. So multiple HDMI inputs, HDMI RC, fiber optic out, it's smart. It comes with a voice remote that has quick keys for your smart apps such as Netflix, YouTube, Amazon Prime. And as I said, this model has been out since about April and we've got it in a couple of retailers. You can purchase this through Amazon.com or through Best Buy.com. Depending on the retailer, so you're looking anywhere between $10,000 and $11,000 between those two retailers. Absolutely, 3,000 lumens. It's 4K. It's HDR. Again, you've got all the connectivity in the back. There are 14 Harman Carton speakers built into the front panel. We give you the subwoofer as well to give you the complete visual and audio experience. And honestly, for us, our vision of laser television is that the future of large screen television watching and cinema watching is laser television. When you look at comparable 100 inch and up LED televisions that are very expensive, use up a lot of energy, really hard to move around if you need to move around with them, these solve all of those problems. So you make fans of a TI DLP? Absolutely. So every one of our laser televisions uses DLP technology. We are using TI chips in them to be able to create the display that you see. It's one of the ways that we get incredible motion in our laser televisions that actually surpasses the motion capabilities of LCD and OLED. So very excited about that. This unit is the L5. It's a 100 inch unit that is going to be coming out in April of this year. So this model is a single laser design at 100 inches and is going to be price pointed at about $6,000 when it comes out in April. Probably the biggest differentiator between it and the other lasers that we've had in the past is this is the first laser television that we're bringing to market that has the Android operating system. We realized that the ultra short throw projection category is still new and that customers need a little bit of familiarity. So in this particular model we wanted to bring one of the most popular smart platforms into our laser projector to kind of to help boost the category. The cost has to do with laser tech and it has to do with the short throw lens. That's why that price is a little still high on these. Do you have any lower price on laser? Not at the moment. So sonic screen laser and hopefully okay great. So this technology that we're showcasing here has a little bit less to do with the laser TV and more with the screen. So the sonic screen laser television consists of a 88 inch screen that has three sets of transducers connected to the rear of the panel. So I've got two here, two here and two here. There are speaker wires run from those transducers to our stereo receiver in effect making the screen the center right and left channel speaker. So the audio is physically coming from the projection screen. Now off to the side here you can see that we can actually take this technology and also use it as satellite speakers. So the same tech we're using in the screen we're using in our satellite speakers here. I feel some vibration on the sound. So how does that sound compared to like what the OLEDs are doing with getting sound through the... So it's kind of the same concept. So we're using that piezoelectric sound technology and this particular screen because of its 88 inch size you're looking at about 91 dB you're looking at 40 to 20 000 hertz and you're looking at about a 2.1, 2.8 percent distortion as opposed to other technologies you're looking closest to around 10 or 12. So you're getting big sound, low end sound, high end, full frequency range and very very little distortion. What do you honestly think about the black levels on the DLP laser projection? How good does it get? I honestly don't know the answer to how black it can get. A lot of that has to do with the gain of the projection screen that you're using. Most of the screens that we use have about a 0.4 gain on them. So take that for what it's worth. But at the same time with this kind of display technology can't really be compared to OLED. It can't be compared to LCD because again it's two completely different kinds of displays. If you're looking for a cinematic experience, one that's immersive, one that is going to be cost effective, then the laser TV is really the best way to go. Now the models that we're looking at here are the L9 series. These are part of our trichroma lineup. The 75 inch that we're looking at here has a three laser system so it's still using a DLP chip but there's no color wheel, there's no phosphors, there's no extra fragmenting of the blue laser to create the full color spectrum. We're actually using pure light to create our color gamut. Now that being said the trichroma series of laser televisions are the only televisions in the world and only displays in the world that have the ability to hit the BT 2020 color spectrum which is beyond what the human eye can really perceive. But again it just tells you to the extent by which we're able to create color with laser television. Depending on the screen that you use it affects how the light is reflected, hopefully perfectly in the right angle so you get a nice experience from where you're sitting. Every single laser television that we produce and bundle with a screen in most scenarios we do bundle with a screen. There's an element to each of those projector screens called a Fresnel Air which essentially is an ambient light rejection technology so every screen that we have is ambient light rejecting. What that does for the consumer is it takes light coming from above so any ambient light from a sunlight or an overhead light it sees that and redirects it away from the line of sight of the viewer and it sees at the same time the light coming from the angle of throw of the projector and redirects it 90 degrees out to the viewer. So in effect what we're doing is making sure that the only light that you see or the majority of the light that you see at least is coming directly from the television and not getting any ambient light degradation that can mess up things like brightness color and motion. And it's super sharp there's no messing around with the sharpness right and in the way that the screen is designed. No it's really designed to take the preciseness that the lasers are capable of creating and what the DLP chip is able to display and make that the only thing that you see as the viewer to keep that crisp 4k detail that all of our laser televisions are and for those that are running HDR in its various forms getting the full contrast that you can get out of that. For example the 100 inch that we're looking at right over here is actually capable of both Dolby Vision and Dolby Atmos certification. So we can get the benefits of HDR Dolby Vision HDR out of the 100 inch trichroma laser television as well as that super wide color gamut that we get from the three laser system. So is it still going to be something like a 6000 or how much? Oh I have no idea how much this one's going to be our 150 inch came out in domestic market China last year did really well but as far as these two 2020 models I'm not sure about the ETA for a mass distribution. And Heisen's doesn't do any rear projection it's only short through. It's more like rear projector right? To my knowledge and again it's pretty limited to what we have here at CES as well as what we bring to market in the U.S. no we don't do rear projection. All right. But also another way to put it is that the filmmaker is always designing his movies for cinema. So the projector is a more natural way to see what the director intended. Absolutely. They don't design for TVs. No not at all and we take that into consideration and when it's when you look at something like trichroma and when you think about the different color palettes and the different ways that directors want to bring their their vision to life you've got to give them from a display perspective the widest palette you possibly can not only from the color side of it but from the contrast side and when it comes to the viewing experience of the of the viewer in the audience you want to get as close to that cinematic experience as you can laser handles that especially trichroma laser TV. But why are they mostly being sold in the U.S. market there's not so much laser TVs in Europe. Well you may not see them in Europe but if again if you take it if you have the opportunity to watch the press conference for Monday the 80 inch laser television is one of if not the most sold television in the China market. So there is an appetite for this technology and we are trying very hard and very vigorously to grow that ultra short throw projection market here in the U.S. so that everyone can experience the advantage of laser technology. So they look amazing totally amazing but on TV you're doing a pretty good job. Oh absolutely. Like how's it how's it going with the are you like in the top three in the U.S. we're actually in 2019 the top five manufacturer and that well we're the top five in units so we went from seventh place to fifth place in a year which is just organic in the U.S. in units and that strictly organic growth we really did not get a big push in Black Friday to assist with that and that is the kind of growth that you want to have in the U.S. market for sustainability so we're very excited to have made that push and we've got our sites on further placement. So that means CS 2021 you'll be number three. 2021 I want to be number one I don't want to I want to skip them all just go right to the top. So that means to do that you have to provide the best value for the price. Well and that's what we're known for I mean our primary pillars of what we hold our standards to our quality performance innovation and value and we understand that especially in the U.S. if you don't deliver on those four pillars then it's going to be very hard to have much success. I think they look awesome looking forward to hopefully very affordable dual layers when you talk about two thousand kind of dollars sub two thousand two thousand nice to see them at sub one thousand maybe you'll try to work who knows we'll we'll keep working on it all right.