Recently, Skyworth Digital released interim results report shows that as of September 30, 2017 6 months, Skyworth net loss of 192 million Hong Kong dollar, compared with last year Profit of 836 million Hong Kong dollars over the same period, the performance decline significantly.
In this regard, experts and industry analysts said the rising raw material prices, the domestic appliance market is becoming saturated, the slowdown in demand for home appliances led to a decline in Skyworth digital performance of the main reasons.Although Skyworth Digital to seek overseas market layout and intelligent transformation and upgrading have been Initially effective, but no matter from the intense degree of international competition point of view, or from the current maturity of intelligent products, Skyworth Digital still faces many challenges.
Internal and external pressure led to loss of performance
Skyworth Digital released announcement showed that for the six months ended September 30, 2017, Skyworth Digital achieved turnover of about 21.489 billion Hong Kong dollars, an increase of 5.9%, the overall gross profit was 15.8%, down 4.8 percentage points over the same period last year; Net loss attributable to equity holders was HK $ 192 million, representing a turnaround from a net profit of HK $ 836 million for the same period last year.
Skyworth Group's core industry color TV performance is particularly poor.In the reporting period, Skyworth Group's color TV turnover was 87.64 billion Hong Kong dollars, down 6.5% over the same period of 2011. Among them, the mainland TV market sales fell 20.8%.
In response, Skyworth Digital pointed out that the decrease was mainly due to the shortage of raw materials, including the shortage of supply of panels and major electronic devices, tenseness and price hikes, as well as the fierce market competition in China's TV market and the rise in production costs and foreign exchange losses.
The industry also believes that whether it is set-top boxes or televisions, the dependence on raw materials are relatively large, these companies have almost no way out of the shackles of raw materials. 'In Skyworth digital profit structure, relying on the LCD TV and related industries The project still accounts for the vast majority of LCD industry turmoil will affect the performance of Skyworth.Since this year, for the LCD, the LCD panel rose sharply, a direct result of a decrease in profits of Skyworth Digital.A veteran of a home appliance industry to accept "Economic Information Daily" reporter said in an interview.
According to the data released by AVC, the retail sales volume of the color TV market in the third quarter of 2017 was 10.41 million units, down 12.9% from the same period of last year.In addition, the OCV cloud network is expected to 2017 The annual volume of color TV market will reach 47.78 million sets of retail units, down 6.1%.
In this regard, the industry analysts said, on the one hand, the domestic color TV market gradually saturated; the other hand, the real estate market in recent months, a significant decline in trading volume reduced the market demand for color TV .Ovia cloud network (AVC) first three quarters of 2017 China Analysis of color TV market report also shows that in 2017 our country usher in the history of the most severe real estate regulation and control, the country's restricted cities expanded to 50, the traditional home appliance market downturn.
Fierce market competition environment is also a huge challenge for Skyworth.Industry analysts said that the market a number of newly entered the Internet TV brands with the convenience of financing from the capital market conditions, the use of low-cost hardware tactics and other tactics frequently carry out 'price war', so that the The overall performance of color TV enterprises damaged.
'Skyworth's overall revenue and profits rely too heavily on color TV business and the domestic market for traditional home appliance manufacturers, the domestic market saturation has brought fierce competition, in particular, many Internet TV brands also hit the impact of traditional home appliance manufacturers. Skyworth Group faces Transformation of the old and new development of kinetic energy problems, operating performance is temporarily in trouble is inevitable. "Institute of Industrial Economics, Chinese Academy of Social Sciences Research Associate Zhao Jianbo, an associate in the" Economic Information Daily "said in an interview.
The appliance industry veteran also told reporters that domestic consumers as a whole 'heavy mobile terminal light living room' entertainment and spending patterns have become increasingly clear. Skyworth with its inherent business model, it is difficult to obtain substantial growth opportunities. Internet companies, Skyworth as a whole lack of a keen sense of smell on-line consumption in the short term but also by cooperation with radio and television and telecom operators to gain part of the market share.However, due to the lack of active users and effective commercial conversion rate, Skyworth will make For the foreseeable future, there may still be greater operational pressure.
Sustained overseas markets
Although the overall performance fell, Skyworth overseas market has shown a bright spot.Export shows that during the reporting period, the turnover from overseas markets accounted for 35.3% of Skyworth's total turnover, an increase of 21.1% over the same period last year, mainly due to the growth of color TV business, color TV products Overseas revenues amounted to HK $ 5.82 billion, up 29.0% over the same period last year.
In addition to color TV sets, the overseas business of digital set-top boxes and liquid crystal modules also registered significant growth. Its overseas market turnover increased by 31.3% to HK $ 1,422 million during the Reporting Period.
In recent years, Skyworth has been making frequent moves in overseas markets, starting with the acquisition of the Sinochem factory in South Africa and the well-known home appliance brand Sinotec in 2014. In June 2015, Skyworth acquired the German home appliance brand Metz and actively expanded the European market. One of the top three television brands in Germany, the industry is called "luxury TV." In July the same year, Skyworth's Skyworth digital acquisition of the European Strong Group. Strong Group is a famous European set-top box brand enterprises in France, the Netherlands , Set top box market share in Austria, Ukraine and Denmark and other markets ranked first.
After joining with Metz, Metz pioneered Europe's first OLED TV with the help of Skyworth technology and has mass-produced it, becoming the second brand to launch OLED products in Europe after LGD. At present, the cutting-edge areas of television technology, the current Apple, Philips, Samsung and other companies are studying OLED technology, Skyworth is China's first mass-produced OLED TV appliance brand.
In this regard, the industry pointed out that the slow growth of China's home appliance market, overseas export market was significantly higher than the domestic market, household appliances business bigger, and actively carry out the international expansion is an inevitable choice.
However, the industry also pointed out that while overseas sales growth, Skyworth still exist the problem of high cost, low profit.In addition, many domestic appliance companies are looking at overseas markets, the international competition is extremely fierce. In the product of globalization at the same time establish their own brand advantages in the overseas market successfully achieve the localization goal is the key strategy.
Want to intelligent transition off sleep
In addition to the overseas market, Skyworth has also begun to re-adjust the business structure, efforts to create four industries.First, by the color TV, digital set-top boxes and content operations business composed of multimedia industry; Second, by the smart refrigerator, smart washing machines, intelligent air conditioning and other components Smart electrical appliance industry; third, an intelligent system technology industry composed of home intelligence system, automobile intelligence system, urban intelligence system and related security, lighting and health; fourth, it is composed of industry finance, science and technology park development, property management and so on Modern service industry.
It is worth mentioning that, in the 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.
In fact, Skyworth has made some progress in the intelligence.Public information shows that Skyworth's Internet TV operations subsidiary Kuokui, following the acquisition of Ai Qi Yi Baidu's 150 million yuan of capital injection, but also get the strategic investment of Tencent affiliates In the first half of FY2016, Kuankai earned revenue of HK $ 135 million from film, video, games, advertising, education and other content. In addition, its revenue for the first half of 2017 was RMB25 million, representing 0.73% of its total revenue.
'With the decline of the profitability of the traditional manufacturing business, rather than playing a' price war 'in the traditional Red Sea market, it is almost like opening a blue ocean market through industrial upgrading. In the era of smart business, personalized smart products are the carrier of' detonating ' Therefore, enterprises should be product-oriented to meet consumer demand for quality and technological iteration of home appliances. "Zhao Jianbo said.
However, Zhao Jianbo also pointed out that although there is a strong desire in many industries to implement digital transformation using artificial intelligence, there is not enough sophisticated smart products on the market to look at the field of smart products. From the industrial life cycle perspective, the new intelligence The products are still in the introductory period. Although the potential market share increases greatly, the market size that can support the development of the group has not yet been formed. This makes the new intelligent businesses and products more limited to the operating performance of Skyworth.
In this regard, Zhao Jianbo suggested that Skyworth in the process of intelligent transformation should balance the old and new business relations, while maintaining the existing market, while to open up new markets, smooth realization of corporate profitability of the old kinetic energy conversion.In addition, through the manual From the historical experience of the development of intelligent technology, the expectations of the public for AI products are too high. Skyworth Group needs to guide the market cognition and cultivation of intelligent products.