Slide 1: Skyworth Group Annual Results
SKYWORTH GROUP Annual results
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. These forward- looking statements represent Skyworth’s expectations or beliefs concerning fu
Slide 3: Annual Results Summary
01 Annual Results Summary
Slide 4: Results Highlights
（1）Results Highlights Year ended 31 Dec (RMB million) Jan – Dec 2020 Jan – Dec 2019 Change (%) Revenue 40,093 37,277 7.6% Gross profit 7,164 7,502 (4.5%) Gross profit margin 17.9% 20.1% (2.2pp) EBIT 2,620 2,037 28.6% EBIT margin 6.5% 5.5% 1.0pp Net profit for the year 1,835 1,031 78.0% Profit margin
Slide 5: Operating Expenses
（2）Operating Expenses (% to sales) Jan - Dec 2020 Jan – Dec 2019 Jan – Jun 2020 Selling & distribution 8.7% 10.1% 9.3% General & administration 3.5% 2.7% 3.7% Research & development 4.7% 4.9% 5.1% Total expense rate 16.9% 17.7% 18.1% ⚫ S&D: International marketing campaigns decreased YoY affected by
Slide 6: Cash flow position
（3）Cash flow position (RMB million) Dec 20 Dec 19 Change (%) Jun 20 Change (%) Inventories 5,388 11.4% - Total 6,004 4,909 22.3% - Finished goods 3,523 2,957 19.1% 2,916 20.8% Bills receivables - On hand 3,806 4,149 (8.3%) 2,807 35.6% - Discounted to banks# 720 686 5.0% 201 258.2% （Cash equivalents）
Slide 7: Borrowings
（4）Borrowings Change Change (RMB million) Dec 20 Dec 19 Jun 20 (%) (%) Borrowings 1. Financial liabilities – for bills discounted# 720 686 5.0% 201 258.2% 2. Other loans 10,704 7,491 42.9% 7,648 40.0% Current 7,401 7,135 3.7% 5,404 37.0% Non-current 3,986 1,042 282.5% 2,445 63.0% 3.Corporate bonds (
Slide 8: Gross Profit Margins
（5）Gross Profit Margins 2020年1 – 12月 2019年1 – 12月 The Group 17.9% 20.1% China Market Overall 21.0% 21.3% Regions Overseas Market Overall 13.0% 17.5% Multimedia –Smart TV (China) 23.3% 21.0% Systems (Overseas) 11.2% 14.0% Multimedia -Internet valued-added services 45.8% 49.8% of coocaa System Smart S
Slide 9: China TV Market Shares
（6）China TV Market Shares Sources: AVC Dec 2020 Omni-channel integrated data 電視 (銷售量) 2020 2019 TV (Sales revenue) 2020 2019 1 Xiaomi 16.9% 16.7% 1 Hisense 17.0% 17.1% 2 Hisense 14.2% 14.7% 2 Skyworth 14.3% 15.7% 3 Skyworth 13.4% 14.6% 3 TCL 13.4% 11.1% 4 TCL 13.1% 10.7% 4 Xiaomi 11.9% 10.6% 5 Haier
Slide 10: Overseas Revenue Geographical Summary
（7）Overseas Revenue Geographical Summary Skyworth Brand Entering Emerging and European Markets TV Acquired Toshiba TV in ASEAN in early 2016; TV Acquired Sinoprima in Africa in 2014 & METZ in Germany in 2015; Set-top Box Acquired STRONG MEDIA in Europe in Sep 2015 Jan – Dec 2020 Jan – Dec 2019 % Ove
Slide 11: Revenue Breakdown by Major Business Segments
（8）Revenue Breakdown by Major Business Segments Jan – Dec 2020 (Jan – Dec 2019) Revenue proportion Smart Systems Technology (000810.SZ) 21.8% (25.7%) Smart Appliances RMB 10.5% (11.5%) * 40.09bn Modern Services and Multimedia – Smart TV Others Systems RMB37.28bn 6.4% (5.1%)** (Jan – Dec 2019) (China
Slide 12: Profit proportion of major business segments
（9）Profit proportion of major business segments Jan – Dec 2020 (Jan – Dec 2019) Segmental Profit Breakdown Smart Systems Technology (000810.SZ) 30.3% (39.5%) Smart Appliances RMB 7.3%(5.5%) 1,318m Modern Services and Multimedia – Smart TV Others Systems RMB1,830m 16.4%(35.3%) (Jan – Dec 2019) (China
Slide 13: Annual review of evolvement
02 Summary Annual review of evolvement
Slide 14: Promote the development of Ultra HD video industry
（1）Promote the development of Ultra HD video industry Skyworth Group accelerates the area of smart living as well as the critical technologies and product development of 8K Ultra HD video industry, to provide users a warm technology product and build a wise and healthy life for people in the future.
Slide 15: Promote the development of Skyworth smart living field
（2）Promote the development of Skyworth smart living field “Skyworth Smart Home System” was successfully shortlisted for one of the 10 upcoming key “Demonstration projects of 5G industry”, become the only enterprise for smart home scenes. In November 2020, Skyworth was praised by national leaders at
Slide 16: Promote new set-top box launch to the market
（3）Promote new set-top box launch to the market In 2020, Skyworth Digital launched new products such as wifi- 6 router, 10GPON smart gateway, (5G+8K) VR all-in-one, etc., successfully won the bidding of Deutsche Telekom and European TV operators’ Android TV box projects and maintained the lead of se
Slide 17: Drive the new system of coocaa go-live
（4）Drive the new system of coocaa go-live coocaaOS8 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 spaces.
Slide 18: Promote the rapid growth of overseas business
（5）Promote the rapid growth of overseas business In 2020, Skyworth Group strengthened the operation of its own brand and the development of OEM business, with growing operating income of overseas market against the whole market. The TV delivery quantity of factories in India and Indonesia reached a
Slide 19: Promote home appliances to the countryside
（6）Promote the domestic market home appliances to the countryside “The Announcement of the Special Action of Home Appliances to the Countryside in Guangdong Province in 2020” was officially issued by the Department of Commerce of Guangdong Province. Skyworth Group was successfully shortlisted for th
Slide 20: Promote the construction of new industrial bases
（7）Promote the construction of new industrial bases On November 3, 2020, Chuzhou Skyworth Intelligent Home Appliance Industrial Park was grandly opened. The first phase of the project was completed and put into operation. The first batch of new air conditioning products was launched, which means tha
Slide 21: Promote capital operation of the Group
（8）Promote capital operation of the Group In the past year, the Group accelerated mergers and acquisitions and restructuring, completed the South China headquarters project and equity transfer of 广州平面显示公司, as well as the RMB393million equity buyback of Skyworth Group (HK.00751), accelerating the tra
Slide 22: Promote the fulfillment of social responsibility
（9）Promote the fulfillment of social responsibility Skyworth Group actively mobilize the deployment since the epidemic, rushing to the rescue in Wuhan in the first place, donated hospital ward- specific TVs, purifies and other equipment worth more than RMB 6 million to Huoshenshan (Fire God Mountain
Slide 23: Annual Prospect Outlook
03 Summary Annual Prospect Outlook
Slide 24: New trend of appliances industry development
New trend of appliances industry development ⚫ The domestic market of home appliances has little room for growth and is expected to remain low in 2021; however, business opportunities in the urban high-end market and rural markets in developed regions still exist. ⚫ In the post-epidemic era, the ove
Slide 25: 2021 Direction of Skyworth Group
2021 Direction of Skyworth Group Year 2021 is proposed as the “Year of Efficiency Improvement” by the Board of Directors of the Group. The headquarters and businesses should accurately grasp the changes in the current situation, focus closely on the strategic goal of transformation and upgrading, co
Slide 26: Thanks!
Thanks！