Affected by the weak domestic TV market and intensified competition, Skyworth Digital, the leading color TV leader, reported a loss of HK $ 189 million for the first time in the first half of FY 2017. In face of the challenges, Skyworth Digital adjusted its business to multimedia, smart appliances and intelligent system technologies, The four major service industries, accelerate the realization of intelligent, sophisticated, international three strategies.
According to Skyworth digital semi-annual report released on the evening of November 21, as of September 30, 2017 six months, Skyworth Digital turnover of 21.489 billion Hong Kong dollars, up 5.9% over the same period last year; the overall gross profit margin was 15.8% Down 4.8 percentage points from a year earlier.
During the reporting period, Skyworth's TV revenue was HK $ 8.764 billion, down 6.5% over the same period of last year, mainly due to the macro environment. On the one hand, upstream panel prices swallowed profits from color TV stations; on the other hand, the domestic color TV market was saturated This has brought about fierce competition. In addition, many Internet TV brands newly entering the market have frequently carried out 'price war' by using tactics such as hardware low-cost tactics to facilitate financing from the capital market and thus deteriorating the overall performance of color TV companies.
According to the analysis of China's color TV market in the first three quarters of 2017 by AVC (AVC), in 2017 China will usher in the toughest real estate regulation and control in the history. The number of cities with restricted sales in the country will expand to 50, the traditional home appliance market will fall into the doldrums, and the Chinese color TV market Ushered in the history of the worst third quarter of 2017. In the third quarter of 2017, the domestic color TV market sold 1041 million units, down 12.9%. At the same time, TV panel prices continued to climb in September rose to a high point, 2017 January to September Shipments of global color TV sets dropped 3.6% YoY to 152 million units from the same period of last year. From the perspective of the three major competition parties, the shares of foreign brands increased 7% while the share of domestic mainstream brands increased slightly by 4% while the share of internet brands dropped 11%.
IHS China Zhang Bing, director of research to the First Financial Analysis said that the first three quarters of the domestic color TV market overall shipments nearly 36 million units, down 15% while Skyworth domestic TV shipments in the first three quarters of this year dropped nearly three into the overseas TV out However, Skyworth's performance lagged behind that of the industry, in addition to the impact of upstream panel prices and sluggish demand in the industry, Skyworth's team turnover was also an influential factor.
This year, Yang Dongwen resigned as president of Skyworth Group, Skyworth color TV business for many years in charge of Liu Tang branch took over the same time, Skyworth TV's head of domestic marketing also changes, Skyworth will overseas and domestic marketing department mergers and acquisitions by Skyworth Group overseas regional marketing headquarters general manager Sun Wei unified management of domestic and overseas markets, color TV marketing business.
On the positive side, Skyworth's STB, white goods and overseas markets all maintained growth, boosting overall revenue of Skyworth In the reporting period, Skyworth's digital set-top box and LCD module business recorded a revenue of 2.121 billion yuan in the mainland China market Hong Kong dollar, an increase of 30.3% over the same period last year; overseas market turnover increased 31.3% to 1.222 billion Hong Kong dollars; Skyworth white goods in the Chinese mainland market turnover of 1.055 billion Hong Kong dollars, up 5% over the same period last year.
In the first half of FY2017, Skyworth's overseas business recorded a remarkable growth with an overseas turnover of HK $ 7,508 million, accounting for 35.3% of the total turnover and an increase of 21.1% over the same period of 2005. Of this total, overseas TV revenue was HK $ 5.82 billion, up 29% over the same period. Following the acquisition of Meizz in Germany, Skyworth implemented the dual-brand strategy of 'Skyworth + Metz' in Europe to speed up its expansion. It has now entered the markets of more than 10 European countries such as France, Belgium and Italy.
Skyworth's intelligent color TV, there are progress.Kuwei's subsidiary is responsible for Internet TV operations Kuchu Kai, following the acquisition of 150 million yuan Aiqiyi Baidu's capital injection, but also access to strategic investment Tencent affiliates in the first half of fiscal 2017, The revenue from films, games, advertising, education and other content of KLCI was HK $ 135 million.
Looking into the second half of fiscal year and next year, Liu Tong sticks optimistic estimates, into the fourth quarter, large-size panel prices decline, LCD TV panel prices are conducive to Skyworth and other brands of color TV companies profit recovery. The entire color TV industry will enter a more healthy and healthy The situation will be greatly mitigated and improved by 2018. Moreover, Skyworth has nearly 25 million smart TV active users, which will provide more space for content service operations.
Zhang Bing believes that Skyworth to regain strength as soon as possible to enhance profitability, OLED TV is a great opportunity.As the first to promote OLED TV in China, Skyworth has better resources than its competitors.In fact, in addition to consolidate the LG Display Strategic cooperation, Skyworth also actively cooperate with the domestic panel leading BOE to expand the source of OLED TV panels.Liu Tang branches last week there has been 2017 BOE Global Innovation Partner Conference, talk about the opportunities and challenges of the big-screen television era.
All along, Skyworth's overall revenue and profits rely too heavily on the color TV business and the domestic market.In the face of severe challenges, Skyworth has re-adjusted the business structure, to create four industries: First, by the color TV, digital set-top boxes and content operations business multimedia Industry; the second is from the smart refrigerator, smart washing machines, smart air-conditioning and other components of the smart electrical industry; third home automation systems, automotive intelligence systems, urban intelligence systems and related security, lighting, health and other intelligent system technology industry; Fourth, by the industrial finance, science and technology park development, property management and other components of the modern service industry.
For the new intelligent system technology industry, Skyworth has set up an intelligent system technology research institute to strengthen the research and development of key technologies such as smart home, smart car, smart city and digital technology, communication technology, network technology and smart identification technology.
Skyworth's goal is to speed up the implementation of intelligent, digital, international strategy to maintain steady development will grasp the new technology of smart home appliances industry, increase efforts to implement intelligent home system technology application focused on intelligent strategy; increase efforts to promote Smart manufacturing-based refinement strategy; increase efforts to promote international marketing network to improve international strategy as the starting point.
Peng Yi-Dong, general manager of Yee-Hong Black Electric Research Center, pointed out that in the first three quarters of 2017, the retail sales in the domestic color TV market fell by more than 10% and the overall market pressure was greater. In particular, the most obvious is Skyworth. The major brands in the color TV industry, though their profit margins have dropped, The overall profit.Currently on the TV business section, Skyworth is facing the market-oriented to product-oriented, easy to meet the consumer demand for quality and product generations.At present the upstream panel prices in the downlink channel, the TV market is expected to resume growth, However, the future operation of Skyworth depends on its internal transition smoothly or not.