For home appliance company Skyworth, although it has been trying to get rid of the huge TV business in recent years, the overall performance of air conditioners, refrigerators, and washing machines is worrying. More importantly, Skyworth has yet to find a way to embrace the Internet. The new rise of the road.
The color TV industry has poor market conditions and low profits. It is an indisputable fact that the growth bottleneck is hard to break through. As a result, color TV companies are transforming their ways and seeking solutions. Since they actively promoted the transformation and development in the past year, Skyworth experienced the first half of the financial year. The rate of decline has dropped. Although the second half of the fiscal year began to turn a deficit, profits still reduced profits by nearly 60%. This report card can be said to make Skyworth a mixed bag.
Recently, Skyworth Group released its financial year 2017 results as of March 31, 2018. The financial report shows that turnover increased by 8% year-on-year to HK$46.26 billion, and net profit attributable to equity holders decreased by 58.7% year-on-year to HK$541 million.
From the announcement of Skyworth, it can be seen that in the first half of the fiscal year that promoted the transformation, despite a 5.9% growth in turnover, the gross profit during the period dropped by 18.8%, and the gross profit margin also decreased by 4.8 percentage points year-on-year to 15.8%. Significantly lower, the net loss from profit to loss recorded was HK$192 million. However, in the second half of the year, the Group turned losses in a timely manner and realized a profit of HK$779 million, which was quite effective in turning the tide off.
It is worth noting that, from the perspective of revenue structure, revenue from television increased by 7.3% compared to the same period of last year. Among them, sales of TVs in overseas markets increased by 14.6%, sales of TVs in Mainland China market fell by 15.8% year-on-year. The total sales volume fell 2.8% year-on-year. However, driven by the Group's industrial transformation and upgrading strategy, sales of its 4K smart TVs in the domestic market increased by 1.8% year-on-year, which seems to be a good sign.
In addition, the announcement showed that revenue from digital set-top boxes was HK$7.182 billion, and LCD modules and white power each contributed HK$1.112 billion and HK$2.668 billion. In particular, the number of TV-enabled users in China’s mainland reached 28 million. The revenue from advertising, games, education, and other content reached HK$342 million, a significant increase of 106% over the previous year.
Skyworth Group, which was established for 30 years, was listed in 2000. Its main business is the production and sales of consumer electronics products and upstream accessories, property development, etc., but the core has always been the TV business. With the Chinese TV market experiencing development bottlenecks, Skyworth Development It has also been up and down. In 2016 and 2017, the net profit for the two consecutive fiscal years has dropped significantly, and the performance has been deteriorating. It is widely believed that the transformation of the Skyworth Group has been slow, while the strength of the main TV industry has fallen.
Transformation is the inevitable path for all household electrical appliance companies in China, especially color TV companies, and Skyworth is no exception. Since 2016, we have explored the need to reverse business difficulties through internationalization and diversification. Last year it was officially announced that it will be smart, refined, and internationalized. The three major strategies promoted the transformation and upgrading of the Group's industries, and entered into multiple areas such as smart manufacturing, smart homes, and accelerated diversification.
Recently, Skyworth also issued an announcement saying that it will develop the industrial park of the Group's smart home appliance manufacturing business, including the development of factories, technology research and development centers, office buildings, national smart home experience centers, and logistics and living facilities to release a series of industrial transformation and upgrading. Positive signal.
Perhaps because of this, despite the disappointing performance of the financial report, Skyworth has been surprised in the capital market. After the announcement, Skyworth's share price rose once to 8.355%. Overall, whether it is from the industry outlook or the group itself In terms of development, it is difficult for Skyworth TV to achieve a breakthrough in the short term. In the future, Skyworth still needs to work hard!