Economic Observer Reporter Zhou Yifan The stock price of Skyworth Group in Hong Kong stocks soared nearly 60% in a day. During the reporting period, the company recorded a turnover of RMB 35.891 billion, a year-on-year increase of 33.2%;

Economic Observer Reporter Zhou Yifan Hong Kong stock Skyworth Group's stock price soared nearly 60% in a day.

htmlOn the evening of October 26, Skyworth Group (0751.HK) released its unaudited performance report for the nine months ended September 30, 2021. During the reporting period, the company recorded a turnover of RMB 35.891 billion, a year-on-year increase of 33.2%; gross profit of RMB 5.838 billion, a gross profit margin of 16.3%; current profit and the profit attributable to the company's equity holders were RMB 999 million and RMB 763 million, a year-on-year increase of 19.21% and 40% respectively.

htmlOn October 27, Skyworth Group's stock price surged all the way after opening in the afternoon. As of the end of the day, it closed up 59.17% at HK$3.82, setting a new closing price high in three years. Its current total market value is HK$10.2 billion. Public information of

shows that Skyworth Group is an investment holding company . Its subsidiary companies are mainly engaged in the production and sale of smart TV systems, home access equipment, smart appliances, Internet value-added services, property development and property ownership. The company takes mainland China as its main business market, and has also opened up overseas markets including other Asian regions, Africa, Europe and the United States.

According to the financial report, in the nine months ended September 30, 2021, the company's turnover in the mainland Chinese market was approximately RMB 23.31 billion, a year-on-year increase of 40.6%; the overseas market achieved a turnover of RMB 12.581 billion, a year-on-year increase of 21.3%. In terms of specific business projects, Skyworth Group plans the company into four major sectors: multimedia business, intelligent system technology business, smart electrical business and modern service industry business. In the domestic market, the four businesses account for 59.8%, 21%, 9% and 10.2% of the turnover respectively.

It is worth noting that among the multimedia business, which is the pillar of the company's revenue, the photovoltaic business has shown the most impressive performance. According to the financial report, in the nine months ended September 30, 2021, Skyworth Group's photovoltaic business revenue recorded RMB 2.19 billion, a significant increase of 27,275% over the same period last year.

According to National Energy Administration data, domestic household photovoltaics added 2.14GW in September, a year-on-year increase of 64.7% and a month-on-month increase of 16.1%. From January to September, a cumulative new installed capacity of 11.68GW, accounting for 45.7% of the new installed capacity, a year-on-year increase of 121.4%.

In this regard, Chen Zikun, an analyst at GF Securities, said that although the prices of the industrial chain continue to be high, domestic household photovoltaic installations still maintain rapid growth. Driven by the promotion of the whole county's superimposed marketization of electricity prices, household photovoltaic demand is expected to maintain a high prosperity.

Overseas market, according to General Administration of Customs, the export of solar cell (module) in September was US$2.705 billion, up 35% year-on-year, -7% month-on-month; the cumulative export of solar cell (module) from January to September was US$19.856 billion, up 40% year-on-year. In September, the export of inverter was US$492 million, up 48% year-on-year and 0.18% month-on-month; from January to September, the cumulative export of inverters was US$3.53 billion, up 55% year-on-year. The steady growth in domestic exports of solar cells and inverters also confirms the strong overseas demand.

In fact, Skyworth Group's rapid development in the photovoltaic field also reflects the country's emphasis on new energy strategy. Since the 13th Five-Year Plan, the domestic policy orientation for environmental protection and new energy has been further clarified. On October 24, the Central Committee of the Communist Party of China and the State Council officially issued the "Opinions on Complete, Accurate and Comprehensive Implementing the New Development Concept to Do a Good Job in Carbon Peak and Carbon Neutrality", which represents the official release of the "1" in the "1+N" policy system of the domestic dual carbon target.

Skyworth Group also stated that in the face of the huge market potential in the future, the company decided to take the relatively most commercial and standardized photovoltaic system integration industry as the entry point. In the photovoltaic industry, distributed photovoltaics, as the industry closest to the terminal sinking market and the client retail field that the company is familiar with, has become the group's final early main business choice. The company plans to start with household photovoltaics, gradually develop business such as industrial and commercial photovoltaics, comprehensive smart energy management on the power side, and gradually develop into an industry leader in the clean energy industry on the power side.