Profitable! Konka, once the king of Chinese color TV, fired the first shot of the Jedi counterattack in China's color TV industry

At a time when the Chinese color TV industry was in a gloomy state, Konka announced its earnings. As a blue chip stock in the Shenzhen Stock Exchange, its value is being re-evaluated. At the end of 2017, among the companies that disclosed their earnings forecasts on the Shenzhen Main Board, the top five companies in terms of profit scale were BOE A, Weichai Power, Angang Steel Co., Ltd., Shenzhen Konka A and TISCO Stainless Steel.

Top student Konka

Among the nearly 500 main board listed companies in Shenzhen, Konka ranks fourth in terms of profit scale. If this is a college entrance examination, Konka in fiscal 2017 has already entered Tsinghua University and Peking University. There is no doubt that Konka in 2017 is an excellent student in the industry.

China manufactures 80% of the world's televisions, but suffers from excessive competition at home. In 2017, the sales volume of China's domestic color TV retail market was 47.52 million units, a year-on-year decrease of 6.6%. Correspondingly, Sichuan Changhong's net profit in the first three quarters fell by 67.97% year-on-year; Hisense Electric's net profit in the first three quarters fell by 47.39% year-on-year; and Skyworth Digital's net profit fell by as much as 83.55% during the same period.

On the other hand, Konka, once the king of color TVs in China, has been underestimated by the market since it fell from the throne. In fact, with the support of its major shareholder OCT, Konka has made a comprehensive plan for its revival since 2016.

According to relevant market research data, in 2017, when home appliance companies collectively suffered a setback, Konka's color TV market share still achieved a growth of up to 1%. Among them, Konka's Internet TV business, which took the lead in testing the waters, was the first to arrive and took the lead in leading the technology trend in the industry. It is reported that the cumulative number of activated users of Konka Internet TV is currently 22.5 million, which is equivalent to the number of users covered by a large satellite TV station. Its monthly active users are around 12.5 million, and its daily active users are 9 million. It will add 7 million new users every year.

It is estimated that by 2020, the number of Internet TV terminals in China will exceed 400 million, more than 70% of Chinese households will use Internet TV to watch programs, and the market size will reach 630 billion yuan. Obviously, in this future competition, Konka's Internet strategy has begun to show its advantages of accumulating strength and making breakthroughs by taking product first as the initial driving force to accelerate the collection of industry dividends.

Konka with multiple engines

Konka is no longer just a color TV manufacturer, but has also expanded into investment, finance, and Internet operations. Some commentators say that Konka is now like a rocket with multiple engines, with color TV as the core and several business lines as engines, driving the group forward.

In the past two years, according to incomplete statistics, Konka has made so many big moves in venture capital:

In December 2016, Konka Guangming Technology Center, with an investment of RMB 1 billion, started construction, realizing the full industrial chain of "research, production, supply and sales" of the smart industry;

In June 2017, Konka invested RMB 1 billion to establish a joint venture industrial fund with a scale of RMB 5 billion, mainly investing in consumer electronics-related industries, TMT industries, intelligent manufacturing, new energy, new materials, and big health.

In July 2017, Konka entered the Internet of Things industry and invested 588 million yuan to acquire 24% of the equity of Guangdong Chutianlong Smart Card Co., Ltd.

On November 10, 2017, the venture capital center jointly established by Konka and OCT was launched, announcing the official completion of a dual innovation demonstration platform integrating incubators, accelerators, innovation bases and venture capital funds.

In November 2017, Konka announced its investment in a real estate project company to jointly develop a plot of land covering 1.37 million square meters in Sanjiangkou, Yibin, as a concrete manifestation of its "technology + industry + urbanization" strategy.

Behind this series of dazzling investments, Liu Fengxi, chairman of Konka Group, has publicly stated that "Konka will no longer be a color TV company in the future, but will transform into an investment holding platform. First, it hopes to expand new product lines, whether through mergers and acquisitions, independent research and development, or the configuration of incubators; second, it hopes to achieve expansion through investment and mergers. Konka will use the platform of listed companies to achieve industrial expansion; third, it hopes to form an Internet of Things ecosystem through direct investment. Konka will choose some Internet of Things companies for direct investment, either as a shareholder or a controlling shareholder."

The words are still fresh in our ears. Konka's diversification strategy has already borne fruit. Some analysts said that the reason why Konka staged a good comeback in 2017 was mainly due to its accurate grasp of the development model of hardware + software, terminal + user, investment control + finance, and the correct idea of ​​technology + industry + urbanization expansion.

The times are advancing at an ultra-fast pace, and Konka is no exception. If you still look at Konka from the perspective of traditional manufacturing, it is normal to be shocked by the unfamiliarity. Moreover, in the field of color TV, which is a project with advantages, Konka's achievements are just beginning.

Konka shoulders the heavy responsibility of the industry's counterattack

Konka's color TV, Konka's color TV. This belief is like DNA in Konka's blood. When Konka, an excellent student, spreads its wings on the road of diversification, it is its unshirkable historical responsibility to revitalize the industry and lead the industry to fight back.

Konka is rising, and this time, it will not only return as the king, but also lead the industry to revive.

What is a TV? Is it just a screen? Obviously, Konka doesn't think so. In the long run, the existing color TV industry is in urgent need of a transformation, a rebirth-like transformation. When users leave the living room, what can be used to bring them back to the living room? Konka's answer is the Internet, intelligence and the Internet of Things.

When television is not just for watching, but becomes the computing center of the family, it is compatible with home appliances of different brands with a concept that transcends the times and realizes a fully Internet-based smart life. This is the core strength that Konka has demonstrated in its latest smart TVs.

If the color TV industry wants to be completely revitalized, it must start with Internet content. TV viewers need to be younger, and first of all, the content and interactive forms should be younger. A screen without content is like an empty stadium. What users want to watch is the game and the content, not the gorgeous stadium.

Konka color TV has tasted the sweetness of Internetization. Its 38 years of manufacturing experience has not become a burden. Instead, it has made the brand younger on the basis of excellent quality. Just like the motivation for Konka to sponsor the Migu Online Video Festival, Konka hopes that good content will meet a good platform and fully support the passion of young people in pursuing their dreams.

Being with young people and being closely connected with every family. This concept runs through the R&D process of Konka TV. Last year, Konka successfully developed technologies such as main chip frequency conversion, backlight frequency conversion and screen frequency conversion, and successfully launched A1 artificial intelligence TV, R1 frequency conversion TV, M1 music TV, and developed high-end product lines such as OLED TV and 8K TV, which were highly praised by young users.

In the content field, Konka has formed strategic cooperation with iQiyi, Tencent Video, etc., which has greatly broadened the film and television resources of users, and the number of platform users has also begun to surge accordingly. According to Konka officials, Konka's smart TV platform will continue to grow in the next five years. It is expected that by 2020, the monthly active users of Konka's Internet TV platform will reach nearly 30 million.

With such a user base, Konka will have sufficient confidence when it enters the content industry chain and participates in diversified businesses such as content production, IP incubation, and publicity and distribution. In fact, Konka has already taken the lead in the operation of Internet content. In 2017, the cumulative net profit of Konka Group's Internet Division reached RMB 155.31 million, a year-on-year increase of 378%.

Konka has the ideas and the ability to shoulder the heavy responsibility of the industry's counterattack on its own. What remains is to make more demonstration actions for the industry and provide reference for the overall revival of the industry.

Konka fired the first shot in the revival of the color TV industry. Who will take over next?

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.