Skyworth's financial report shows that the color TV industry is difficult to grow

The 2013 financial year performance report released by Skyworth Digital Hong Kong (April 1, 2013 to March 31, 2014) shows that the group's sales revenue in the 2013 financial year reached HK$39.48 billion, up 4.4% over the same period last year, gross profit was HK$7.629 billion, up 3.0% over last year, and net profit was HK$1.254 billion, down 16.5% year-on-year.

It is worth noting that China Resources Jinhua issued an announcement the day before yesterday, saying that it had received a notice from the China Securities Regulatory Commission that the company's major asset sales, replacements, and issuance of shares to purchase assets and related transactions had been conditionally approved. This also means that Skyworth Electronics' backdoor listing with China Resources Jinhua has entered a new starting point.

Color TV sales show negative growth

The financial report for the 2013 fiscal year shows that of Skyworth Group's total sales of approximately HK$39.5 billion, TV products from mainland China accounted for 66.5%, a decrease of 5.1% from 71.6% last year; overseas TV products accounted for 8.2%, an increase of 1.7% over the previous fiscal year; digital set-top box business accounted for 10.5%, a slight increase of 0.2%; white goods and LCD module businesses increased by 1.9% and 0.8% respectively, accounting for 6.4% and 2.2%; other businesses accounted for 6.2%, an increase of 2.2%.

It can be seen that in the entire fiscal year 2013, Skyworth has achieved significant growth in the two new businesses of white goods and LCD modules. Skyworth CEO Yang Dongwen also said that he will continue to focus on the two businesses of white goods and LCD modules in the future. Skyworth's LCD module business mainly includes two parts: TV modules and mobile phone modules.

In addition, this year's mainland TV products have seen a significant negative growth. Not only has Skyworth seen a significant decline in this part of the business, but the entire color TV industry has ushered in its first turning point year after nearly 10 years of sustained sales growth. After reaching the sales peak of 51 million last year, it began to slowly decline. Yang Dongwen said that looking back, CRT TVs also encountered this situation in 2005, and the emergence of flat-panel TVs immediately replaced CRT. Now the development of flat-panel TVs has ushered in a turning point year, which also requires the emergence of new technologies to create new demand.

Negative growth in the color TV industry is a general trend, but this year's decline is still somewhat beyond Skyworth's expectations. Yang Dongwen analyzed that there are three reasons: First, the end of energy-saving subsidies has a great impact on the market and lasts for a long time. Black electronics itself is a market approaching maturity. Energy-saving subsidies have a great promoting effect on some small-sized models. The impact of the end of energy-saving subsidies far exceeds Skyworth's expectations. Secondly, IT/Internet companies have begun to enter the TV industry, which has a great impact on the prices of mainstream size products, which has forced Skyworth to begin to try to change its model. Third, Skyworth has actively adjusted its market operation strategy in response to recent market changes, including controlling costs and increasing gross profit margins, which has also had a certain impact on sales. However, unlike its domestic business, Skyworth's overseas TV products have improved slightly.

Optimistic about e-commerce channels

It can be seen from the financial report that although the color TV business showed negative growth, it is still Skyworth's irreplaceable core business. In response to the current changes in the entire market, Yang Dongwen also proposed to respond with a steady and positive attitude. First of all, Skyworth has proposed a relatively stable goal. Skyworth's goal for color TVs this year is 12 million units, which is a steady increase compared to last year's 11 million units. Secondly, Skyworth will also increase its promotion and sales in overseas markets this year, solve supply chain and channel problems through mergers and acquisitions of some overseas companies, and actively expand OEM/ODM business. At the same time, the domestic business must be balanced. For this, Skyworth will fully promote 4K TVs, and it is expected that the 4K TV business will grow exponentially in the future. In terms of channels, Skyworth has also conducted self-analysis and the entire market. At present, home appliance chain stores are still Skyworth's main sales channel, but the online channel, which accounts for 7.4% this year, is also an area that Skyworth will actively expand in the future. Yang Dongwen also said that in the future, online sales channels are likely to replace the current home appliance chain stores and become the main sales channel in the future.

This year, Skyworth also created a new product brand - Coocaa Cloud TV. Yang Dongwen admitted that compared with Internet companies that have just entered the TV market, Skyworth has its own shortcomings and needs to learn from these companies in many aspects such as brand promotion. However, Skyworth also has its own advantages, including the entire industrial chain and hardware entrance. Skyworth has irreplaceable advantages. Facing the rise of Internet TV companies, Yang Dongwen also expressed the need to learn from the strengths of Internet companies and try new models of his own.

Set-top box backdoor listing makes progress

In Skyworth's entire business system, digital set-top boxes are also an important part. The financial report shows that Skyworth's digital set-top box business has a profit share of 20.5%, and the total average gross profit margin is 23.6%. As the largest digital set-top box manufacturer and seller in China, and ranked fourth in the global set-top box business, Skyworth Digital's sales revenue increased from 2.796 billion yuan in 2010 to 3.4 billion yuan in 2012, and its net profit increased from 256 million yuan in 2010 to 300 million yuan in 2012. However, due to the failure of the backdoor listing last year, and the more intense competition in the domestic set-top box market this year, Skyworth Digital may lose some opportunities to further widen the gap with its peers. Some analysts said that at present, many domestic companies have launched set-top box businesses, and product competition is fierce. Copycat products have also entered the industry at the same time, which has also intensified the competitive situation in the industry. Therefore, industry insiders said that although the conditional approval of the restructuring of China Resources Jinhua is a substantial progress, it is still some distance away from Skyworth Electronics' successful backdoor listing.

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.