Skyworth Group Limited · HKEX:751
Skyworth — FY2021 Earnings Presentation
30 slides from Skyworth's earnings presentation, March 2022
Slide 1: Corporate Presentation
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK Corporate Presentation March 2022
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and businesses of Skyworth Group Limited (“Skyworth” or the “Group”). These forward-looking statements represent Skywort
Slide 3: About Skyworth
About Skyworth Multimedia Smart Systems Technology • Smart TV systems • Home access systems • Provision of internet • Intelligent manufacturing value-added services of • Automotive electronic systems Coocaa System • Other electronic products Modern Services Smart Appliances • Maintenance & repair fo
Slide 4: 2021AR Results Highlights
2021AR Results Highlights +27.0% +7.1% +11.0% Revenue Profit for the year Net assets RMB50.93 bil RMB1.97 bil RMB21.09 bil +19.3% +29.4% Dividend Profit Cash position 23 HK cents RMB8.55 bil RMB12.74 bil per share Fully implemented three key strategies of smartisation, refinement and internationalis
Slide 5: 2021AR Results Highlights
01 2021AR RESULTS HIGHLIGHTS
Slide 6: Results Highlights
Results Highlights (RMB million) FY2019 FY2020 FY2021 Change Revenue 37,277 40,093 50,928 27.0% Gross profit 7,502 7,164 8,548 19.3% Gross profit margin 20.1% 17.9% 16.8% (1.1 pp) Operating profit (EBIT) 2,037 2,620 3,013 15.0% Operating profit margin 5.5% 6.5% 5.9% (0.6 pp) Profit for the year 1,03
Slide 7: Gross Profit Margins
Gross Profit Margins (%) FY2019 FY2020 FY2021 Change Overall gross profit margins 20.1% 17.9% 16.8% (1.1 pp) By regions - PRC market 21.3% 21.0% 18.6% (2.4 pp) - Overseas markets 17.5% 13.0% 13.3% 0.3 pp By business segments Smart TV systems products 21.0% 23.3% 18.5% (4.8 pp) (PRC market) Smart TV
Slide 8: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue Revenue Breakdown (Jan – Dec 2021) (RMB million) 50,928 50,000 +27.0% 4,171 8.1% New Energy 4,375 40,093 53.7% 40,000 2,558 Multimedia 4,218 10,911 Smart Systems 21.4% Technology 30,000 8,746 4,101 RMB 104 50.93 billion Smart 20,000 8.6% Appliances 27,370 24
Slide 9: Profit by Major Business Segment
Profit by Major Business Segment Segment Profit Segment Profit Breakdown (Jan – Dec 2021) (RMB million) 2,008 +52.4% Smart Systems Technology 1,900 New Energy 14.2% 13.3% Smart Appliances 1,400 1,318 1,157 3.0% 217 96 Multimedia 11.8% RMB 900 399 61 2.01 billion 268 Modern Services 400 236 and Other
Slide 10: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) FY2019 FY2020 FY2021 Selling and distribution 10.1% 8.7% 7.8% General and administration 2.7% 3.5% 2.9% Research and development 4.9% 4.7% 4.1% Total expense rate 17.7% 16.9% 14.8% R&D expenses: Continued to devote resources to the R&D of premium smart pr
Slide 11: Inventories and Cash Flow
Inventories and Cash Flow (RMB million) 31.12.2019 31.12.2020 31.12.2021 Change Inventories 4,909 6,004 7,791 29.8% - Finished goods 2,957 3,523 4,257 20.8% Inventories turnover period (days) 72 64 64 -- Bills receivables 4,835 4,489 2,996 (33.3%) - On hand 4,149 3,769 2,930 (22.3%) - Discounted to
Slide 12: Financial Position
Financial Position (RMB million) 31.12.2019 31.12.2020 31.12.2021 Change Current bank borrowings 7,135 7,401 8,892 20.1% Non-current bank borrowings 1,042 3,986 5,370 34.7% Total borrowings 8,177 11,387 14,262 25.2% - Financial liabilities - discounted to banks 686 720 66 (90.8%) - Other loans 7,491
Slide 13: Key Financial Indicators
Key Financial Indicators (RMB million) 31.12.2019 31.12.2020 31.12.2021 Change Current assets 33,365 39,608 45,050 13.7% Current liabilities 25,977 28,091 31,325 11.5% Net current assets 7,388 11,517 13,725 19.2% Non-current assets 14,173 14,076 15,831 12.5% Non-current liabilities 3,418 6,602 8,470
Slide 14: Business Review
02 BUSINESS REVIEW
Slide 15: Focused on "5G + AI + Smart Terminal" Technology Development Strategy
Focused on “5G + AI + Smart Terminal” Technology Development Strategy 5G+ 8K Embracing the New 5G Era, Skyworth actively explored the “5G + AI + Smart device” industry chain and unveiled a new 5G terminal namely Skyworth Smart Home Control Centre (System), and officially launched a new 24-inch embed
Slide 16: Launched New Full-Scenario Products and Improved Brand Image
Launched New Full-Scenario Products and Improved Brand Image In July 2021, Skyworth launched new full-scenario smart control system. This one-stop smart control system integrates communications, AI, the Internet, mobile display, cloud-to-cloud docking and one-key switching, and equipped with smart v
Slide 17: Unveiled New Flagship OLED TVs Equipped with OBM Technology
Unveiled New Flagship OLED TVs Equipped with OBM Technology In 2021, equipped with SKYWORTH Transform OBM technology, Skyworth unveiled the world's first OLED TV with adjustable curvature, S82, and the first 8K OLED TV W92, with “SKYWORTH AUDIO GLASS SOUND™”. Skyworth is China’s first TV manufacture
Slide 18: China TV Market Shares
China TV Market Shares Sources: AVC Omni-channel integrated data TV (Sales volume) FY2021 FY2020 TV (Sales revenue) FY2021 FY2020 1 Xiaomi 15.9% 16.9% 1 Hisense 18.2% 17.0% 2 Hisense 15.1% 14.2% 2 SKYWORTH 13.9% 14.3% 3 TCL 12.6% 13.1% 3 TCL 12.7% 13.4% 4 SKYWORTH 12.5% 13.4% 4 Xiaomi 11.2% 11.9% 5
Slide 19: Stablised Domestic Sales and Achieved a Breakthrough in Overseas Markets
Stablised Domestic Sales and Achieved a Breakthrough in Overseas Markets The Group optimised its customers and sales channels in different countries. Benefited from the expansion of e-commerce, the Group’s overseas online businesses recorded considerable growth, mitigating the negative impacts of th
Slide 20: Create the Future with New Partners
Create the Future with New Partners In 2021, Skyworth TV officially became the Juventus Official Partner and Juventus Official TV Partner. Skyworth TV is the first official partner of this famous Italian football club in the field of TV and smart home in China. By sponsoring the Juventus and the AFF
Slide 21: Market Overview - Overseas Markets
Market Overview - Overseas Markets Skyworth Brand Entering Emerging and European Markets TV： Acquired Sinoprima in Africa in 2014, acquired METZ in Germany in 2015 Set-top Box ： Acquired STRONG MEDIA in Europe in September 2015 Geographical Distribution of Revenue FY2020 FY2021 61% 63% 60% 40% 20% 1
Slide 22: Coocaa to Become a New Platform for Media Distribution in Large-screen Field
Coocaa to Become a New Platform for Media Distribution in Large-screen Field Coocaa OS8 is the operating system of boundless space, which is not limited by time and place. It can be compatible with different screens and control all smart devices, providing users a satisfactory service in various spa
Slide 23: Skyworth Photovoltaic: A Reliable One-stop Solution Provider
Skyworth Photovoltaic: A Reliable One-stop Solution Provider Development, Construction, Operation & Management “Internet + Photovoltaic + People-benefiting Financial Services” Platform for full-process assets of smart clean Business Model • Skyworth Photovoltaic (PV) is committed to building an ener
Slide 24: Retained a High Market Share & Accelerated the Development of Home Access Business
Retained a High Market Share & Accelerated the Development of Home Access Business Leveraging on its market share in the smart set-top box market, the Group has achieved a new breakthrough in the sales of set-top boxes to the three major domestic telecommunications operators. Thanks to the rapid dev
Slide 25: Promoted New Industrial Base Construction, Enhanced Smart Manufacturing Capability
Promoted New Industrial Base Construction, Enhanced Smart Manufacturing Capability In May 2021, the groundbreaking ceremony for the Skyworth Huizhou Zhongkai Industrial Base project was held in Zhongkai High-tech Zone, Huizhou City, Guangdong Province. The investment is in line with Skyworth’s expan
Slide 26: Demonstrating Leading Industrial Innovation
Demonstrating Leading Industrial Innovation Cumulative no. of municipal science and technology progress awards: 50 Cumulative no. of national and provincial science and technology innovation centres: 15 Great Achievements in Scientific and Technological Innovation • Skyworth 1st OLED transformable T
Slide 27: Annual Prospect
03 ANNUAL PROSPECT
Slide 28: Development Strategy
Development Strategy Actively leverage on various emerging technologies including 5G, AI, VR, big data and cloud computing to launch new products including UHD TVs and smart appliances, and 5G smart access systems, smart network devices, office, automobile and other application systems Improve p
Slide 29: 2022 Direction of Skyworth Group
2022 Direction of Skyworth Group As proposed by the board of directors of the Group, Skyworth aims to achieve “transformation and development acceleration” in 2022. The Group will promptly promote the three key strategies of smartisation, refinement and internationalisation, and continue to expandin
Slide 30: Thank You
THANK YOU For more information, please contact: IR Department: ir@skyworth.com.hk or visit the Company's IR website: http://investor.skyworth.com