[New Kuaibao News] On October 26, Skyworth Group Co., Ltd. (stock code: 00751.HK, hereinafter referred to as " Skyworth Group ") released its performance report for the nine months ended September 30, 2022. During the reporting period, Skyworth Group's overall turnover was 38.419 billion yuan (RMB, the same below), an increase of 7.0% over the same period last year; gross profit was 6.017 billion yuan, an increase of 3.1% over the same period last year, and gross profit margin was 15.7%; profits in this period and profits attributable to equity holders of the company were 994 million yuan and 518 million yuan respectively, and the company's bank balance and cash were 9.203 billion yuan, and its financial situation was healthy.
The board of directors has approved that under appropriate market conditions, the company will use cash to repurchase shares.
In the context of the continuous recurrence of the epidemic, economic stagnation and intensified industry competition, Skyworth , as a leader in the home appliance industry, under the guidance of innovation-driven development strategy , has begun to make efforts in new businesses such as "new energy, intelligent system technology, smart appliances, VR" that have been deployed several years in advance, grasping the development trends and opportunities of global economy digitalization, intelligence, and low-carbonization, and achieving steady growth in overall revenue against the backdrop of the raging epidemic and the global economy under pressure.
According to Skyworth Group's overall strategic plan for five years of transformation and upgrading, the group is divided into five major business segments, including: 1. Multimedia business; 2. Intelligent system technology business; 3. Smart electrical business; 4. New energy business; 5. modern service industry business.
Multimedia Business: The industry is sluggish, and the layout of "hardware + content" is expected in the future
During the reporting period, the turnover of Skyworth Group's multimedia business was 16.977 billion yuan, a decrease of 2.687 billion yuan from 19.664 billion yuan in the same period last year, a year-on-year decrease of 13.7%. The reason for the decline is mainly due to the external environment. The macro level is affected by multiple rounds of epidemics. At the same time, the global smart TV market is oversupply, and the TV category entered a period of demand plummeting in 2022, and the entire industry is under pressure. Skyworth Group will continue to adjust its sales strategy, shift its focus to high-end TV products, and actively expand its e-commerce business to increase its market share. Among the
smart TV system products, the turnover of the mainland Chinese market was 6.98 billion yuan, a decrease of 21.8% from the same period last year. In the overseas market, the turnover of smart TV system products was 6.137 billion yuan, a decrease of 15.7% from the same period last year.
With the advent of the 5G era in the Chinese market, the home economy continues to penetrate life scenarios, and the Internet online content services are ushering in vigorous development. The turnover of Internet value-added services of Skyworth Coolcai System reached 988 million yuan, an increase of year-on-year from 930 million yuan in the same period last year. As of September 30, 2022, Coolcai System has covered more than 143 million smart terminals in the Chinese market. Skyworth's "hardware + content" industrial layout has been favored by Internet companies. Shenzhen Kukai Network Technology Co., Ltd. ("Kukai Technology") has successively obtained investments from iQiyi , Tencent and Baidu affiliated companies. The industrial layout of "hardware + content" is Skyworth's confidence in traveling through the cold winter.
Intelligent System Technology Business: Outstanding performance, overseas market revenue rose by 37.7%
During the reporting period, Skyworth Group's intelligent system technology business in the mainland Chinese market was 5.168 billion yuan, an increase of 276 million yuan from the same period last year, a year-on-year increase of 5.6%, achieving counter-trend growth.
's overseas market turnover reached 3.818 billion yuan, an increase of 1.045 billion yuan from the same period last year, a year-on-year increase of 37.7%, achieving leapfrog growth abroad.
Among them, the outstanding performances are: the sales of set-top box of the three major domestic communication operators have achieved remarkable results; the broadband connection business benefited from the vigorous development of domestic gigabit broadband network upgrades, the bidding results of the three major domestic communication operators have achieved remarkable results, and the market share of PON gateways has increased significantly; the sales of set-top boxes and broadband network connection products in overseas markets have both increased, among which the set-top box business has successfully achieved stable batch supply in Europe, Latin America, Africa and other places, and the turnover has continued to grow; the broadband network connection product business has continued to grow steadily and achieved batch supply in India, Southeast Asia, Europe and other regions, and overseas performance has achieved year-on-year growth.
VR industry: TOB market consolidates its position as a leader, and the TOC market ushers in a good start
According to the "Skyworth Digital Co., Ltd. Third Quarter Report of 2022" announced by Skyworth Group on October 24, the group's performance in the VR industry is shining. On the ToB side, Skyworth is the first VR supplier to enter the China Telecom , China Mobile, and China Unicom supplier list; at the same time, it actively expands overseas customers through customized services, and has formed a rich solution in the application ends of live broadcast, education, medical care, cultural tourism, technology, industry and other industries; in July, Skyworth launched the world's first self-developed 6DoF ultra-short-focus VR all-in-one Pancake, Pancake, the world's first self-developed 6DoF ultra-short-focus VR all-in-one machine. 1C, equipped with Pancake optical solution, the whole machine is 436g, the thickest part of the body is only 32mm, and the wear is light. Its light body feel is very advantageous among the short-focus VR all-in-one machines of major manufacturers. It also launched the "VR Talent Live Show" on September 29, bringing users an 8K 3D 180-degree real-time interactive live broadcast ecosystem, continuously enriching the XR content application ecosystem.
Smart Electrical Appliances Business: No fear of competition, domestic business performance surprise
During the reporting period, the turnover of Skyworth Group's smart appliance business was 3.373 billion yuan, an increase of 59 million yuan from 3.314 billion yuan in the same period last year, an increase of 1.8% year-on-year.
smart electrical products' turnover in the mainland Chinese market was 2.449 billion yuan, an increase of 348 million yuan from the same period last year, an increase of 16.6% year-on-year; the turnover in the overseas market was 924 million yuan, a decrease of 23.8% from the same period last year.
Affected by the epidemic and weak home appliance export market, sales figures in overseas markets fell year-on-year compared with the previous year, but Skyworth overcame many difficulties and actively expands its online e-commerce business to achieve sales growth in the overall smart appliance business.
New energy business: Revenue grows leapfrog, the "second growth curve" is emerging
In order to better reflect the expansion of new energy business, Skyworth Group's new energy business has been divested from the multimedia business since 2022. During this period, the turnover of new energy business was 7.821 billion yuan, an increase of 5.631 billion yuan from 2.190 billion yuan in the same period last year, with a growth rate of 257.1%.
Under the dual benefits of the "dual carbon" goal and the "wide county promotion" policy, the domestic household distributed photovoltaic market ushered in rapid development. Faced with huge market potential, Skyworth has adapted to the general trend of the integrated development of modern energy, intelligent manufacturing and digital technology. It has independently developed an intelligent operation and maintenance system that effectively integrates photovoltaic information into the Internet advanced technology and digital information technology, and fully realizes the real-time digital management of household photovoltaic power stations, thereby maximizing the benefits of household photovoltaic power stations.
As of the reporting period, Skyworth distributed photovoltaic power stations have been installed in one of the industry leaders. More than 100,000 household photovoltaic power stations have been operated and connected to the grid to generate electricity, and more than 150,000 household photovoltaic power stations have been built and operated in the grid.
Modern service industry business: Integrated management and diversified service to customers
Modern service industry business is an important supplement to Skyworth Group. During the reporting period, the turnover of modern service industry business was 1.093 billion yuan, a decrease of 58.7% from the same period last year.
In the future, the Group will continue to focus on investing resources to integrate various modern service industries, strive to strengthen supply chain management, and promote strategic cooperation with major suppliers to provide diversified services to customers.
Review in the first three quarters of 2022, the epidemic continued, the global economic growth slowed down, and conflicts in some regions have not stopped. The domestic economy is under pressure, the epidemic is spreading more and more, and the number of entrants in many industries where Skyworth is located is increasing, and competition is intensifying.
Skyworth Group will achieve "certainty" of growth in the "uncertainty" factor! On the R&D end: increase R&D investment, continue to develop products with the technical development idea of "5G+AI+ terminal", promote the R&D and application of new technologies, new materials and new processes, and ensure that the new generation of high gross profit margin and high output value products give full play to their competitive advantages; on the industrial end: seize new opportunities for the development of industries such as "new energy, VR, and family entertainment ecosystem" and promote the progress of various deeply cultivated businesses; on the marketing and brand end: increase the volume, deepen and strengthen the mid-to-high-end market, so that more young consumer groups can go from cognizing Skyworth to identifying Skyworth!
In order to achieve a new level in the group's business in 2022, to better give back to investors, and to lead the industry to "innovative and sustainable" development, Skyworth Group will overcome all obstacles, upgrade from manufacturing to modern service industry, expand from hardware manufacturers to smart home system developers and operators, and guide forward.
