Slide 1: 2024 Interim Results
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK 2024 Interim Results 27 August 2024
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: Four Key Business Sectors
Four Key Business Sectors Smart Household • Smart TV systems Appliances Business • Smart white appliances • Other smart appliances • Internet connection services of Coocaa system Smart Systems • Smart set-top boxes • Intelligent manufacturing Technology Business and solutions • Automotive electronic
Slide 4: 1H2024 Results Highlights
1H2024 Results Highlights -6.6% +15.9% +2.2% Revenue Profit for the period Gross profit RMB30.15 bil RMB714 mil RMB4.29 bil Net Cash assets position RMB22.52 bil RMB12.25 bil Fully implemented three key strategies of smartisation, refinement and internationalisation 11 R&D centres 17 Manufacturing c
Slide 5: 1H2024 Results Highlights
01 1H2024 RESULTS HIGHLIGHTS
Slide 6: Results Highlights
Results Highlights (RMB million) 1H2024 1H2023 Change 1H2022 Revenue 30,153 32,300 (6.6%) 24,284 Gross profit 4,289 4,198 2.2% 3,879 Gross profit margin 14.2% 13.0% 1.2 pp 16.0% Operating profit (EBIT) 1,222 1,097 11.4% 1,072 Operating profit margin 4.1% 3.4% 0.7 pp 4.4% Profit for the period 714 61
Slide 7: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue (post-tax) Revenue Breakdown (Jan – Jun 2024) ((RMB million) 35,000 -6.6% 32,300 Smart Household 30,153 Smart Systems 925 Appliances 14.4% Technology Business 30,000 1,267 Business 25,000 12,122 8,984 51.6% 20,000 RMB 5,108 4,327 30.15 billion New Energy 15,
Slide 8: Revenue in Overseas Markets
Revenue in Overseas Markets Skyworth Brand Entering Emerging and European Markets TV： Acquired SINOTEC in Africa in 2014, acquired METZ in Germany and Toshiba factory in Indonesia in 2015 Set-top Box ： Acquired STRONG MEDIA in Europe in September 2015 Geographical Distribution of Revenue# in Oversea
Slide 9: Segment Results by Major Business Segment
Segment Results by Major Business Segment Segment Results Segment Results Breakdown (Jan – Jun 2024) (RMB million) 1,600 +38.1% Smart Household 1,439 Smart Systems 1,400 Appliances Technology Business Business 350 1,200 1,042 1,000 184 RMB 520 1.44 billion New Energy 800 Business 600 439 101 400 Mod
Slide 10: Gross Profit Margins
Gross Profit Margins (%) 1H2024 1H2023 Change 1H2022 Overall gross profit margin 14.2% 13.0% 1.2 pp 16.0% By region - Mainland China market 14.2% 12.8% 1.4 pp 18.1% - Overseas markets 14.2% 13.8% 0.4 pp 11.7% By business segment Smart TV systems products 19.1% 18.9% 0.2 pp 23.6% (mainland China mark
Slide 11: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) 1H2024 1H2023 Change 1H2022 Selling and distribution 5.9% 5.6% 0.3 pp 6.6% General and administrative 2.8% 2.7% 0.1 pp 2.9% Research and development 3.3% 3.1% 0.2 pp 4.1% Total expense rate 12.0% 11.4% (0.6 pp) 13.6% Continue to devote resources to the R&
Slide 12: Competitive Advantage
02, COMPETITIVE ADVANTAGE
Slide 13: Smart TV Systems Products: Continue to Enhance Product Competitiveness
Smart Household Appliances Business Smart TV Systems Products: Continue to Enhance Product Competitiveness Revenue# from Smart TV Systems Products (RMB million) Mainland • Skyworth has been awarded the title of “Typical Cases of 5G+ industrial Internet key China 12,000 industries” by MIIT, demonstra
Slide 14: Smart TV Systems Products: 1H2024 China TV Market
Smart Household Appliances Business Smart TV Systems Products: 1H2024 China TV Market Distribution of Market Share of Major Brands Sales Trends of Technical Products of China’s TV Market in 1H2024 in China’s TV Market 30% 40% 28% Offline Online 35.9% 2022 2023 1H2024 26% 24% 22% 30% 20% 21.4% 18% 16
Slide 15: Smart Appliances Products: Strengthen R&D and Technological Innovation
Smart Household Appliances Business Smart Appliances Products: Continuously Strengthen R&D Efforts and Technological Innovation Revenue# from Smart Appliance Products (RMB million) Mainland • Refrigerators – The original 21-day Long-term Freshness Preservation Technology adopted FSP and odor purific
Slide 16: Coocaa Technology: Reshaping Smart Audio-Visual Experience
Smart Household Appliances Business Coocaa Technology: Reshaping Smart Audio-Visual Experience • Developed steadily in the internet value-added service market, based on the reliable and secure connection services, and mature and stable technology of the Coocaa system Coocaa AIGC Large Model: Smart S
Slide 17: Smart Systems Technology Business
Smart Systems Technology Business Creating a Digital, Broadband, UHD, Smart and IoT Ecosystem • Sales prices of set-top boxes and broadband network access system products were under downward pressure due to intense market competition and market demand falling short of expectations • Deployed product
Slide 18: New Energy Business: Diversified Green and Low-Carbon Development
New Energy Business Promoting Diversified Green and Low-Carbon Development A Reliable One-Stop Solution Provider • Built an smart energy system integrating development, design, construction, operation, management and consulting services for power stations, and expanded into R&D and manufacture of PV
Slide 19: New Energy Business: Quality First and Prioritising Efficiency
New Energy Business Insisting on Quality First and Prioritising Efficiency Residential PV Industrial & Commercial PV Guarantee power generation income Multi-scenario solution • Two models of “Cooperative Construction” and “Operating Lease” • Newly released three industrial & commercial business mode
Slide 20: New Energy Business: Bright Prospects for Photovoltaic Industry
New Energy Business Bright Prospects for Photovoltaic Industry Market • As of the end of 2023, cumulative installed PV capacity in China was 609.49GW. In 1H2024, newly installed PV capacity in China jumped approx. 30.7% YoY to 102.48GW; among them, the newly installed capacity of residential and ind
Slide 21: Modern Services Business and Others
Modern Services Business and Others Continued to Optimise Different Segments Skyworth Overseas Skyworth Semiconductor Skyworth Innovation Valley Development Tower Design Tower Industrial Park • Focus on supply chain management and promote strategic cooperation with major suppliers to provide diversi
Slide 22: Environmental, Social and Governance: Maximising Sustainability Performance
Environmental, Social and Governance: Maximising Sustainability Performance Adhering to the Mission of “Dedicated to Creating a Better Life for Mankind”, Continuous Investment in the Development of Sustainable Products and Promoting a Green Lifestyle to Families Globally Skyworth’s Long-term Green I
Slide 23: Annual Prospect
ns eS 03 ANNUAL PROSPECT
Slide 24: Development Strategy: Focusing on Simplification and Deepening Reform
Development Strategy: Focusing on Simplification and Deepening Reform Deepen Streamline Shareholding Reform Process Adhere to the Improve per capita partnership mechanism labour efficiency Maintain the independence Active empower ourselves of business units and create value Leverage the organisation
Slide 25: Development Strategy: From Smart Appliances to Double Carbon Ecology
Development Strategy: From Smart Appliances to Double Carbon Ecology Upholding the Ecological Intelligence Concept of “Eco-smart”, To Create a Brand Image of “Green Intelligence, Low-Carbon Intelligence and Environmental Intelligence” Skyworth Zero-Carbon Smart Life/Home Solutions • Integrate Skywor
Slide 26: Thank You
THANK YOU For more information, please contact IR Department: ir@skyworth.com or visit the Company’s IR website (http://investor.skyworth.com)
Slide 27: Appendix: Inventories and Cash Flow
Appendix 1 Inventories and Cash Flow (RMB million) 30.06.2024 31.12.2023 Change 31.12.2022 Inventories 12,073 9,894 22.0% 8,947 - Finished goods 4,209 3,918 7.4% 3,380 Inventories turnover period (days) 78 60 18 71 Bills receivables 1,428 1,769 (19.3%) 1,990 - On hand 1,428 1,769 (19.3%) 1,978 - Dis
Slide 28: Appendix: Financial Position
Appendix 2 Financial Position (RMB million) 30.06.2024 31.12.2023 Change 31.12.2022 Current bank borrowings 11,170 8,218 35.9% 9,404 Non-current bank borrowings 7,787 7,097 9.7% 5,853 Total bank borrowings 18,957 15,315 23.8% 15,257 - Secured 4,621 5,355 (13.7%) 5,758 - Unsecured 14,336 9,960 43.9%
Slide 29: Appendix: Key Financial Indicators
Appendix 3 Key Financial Indicators (RMB million) 30.06.2024 31.12.2023 Change 31.12.2022 Current assets 48,631 46,677 4.2% 46,426 Current liabilities 36,873 35,428 4.1% 35,527 Net current assets 11,758 11,249 4.5% 10,899 Non-current assets 20,703 20,484 1.1% 17,984 Non-current liabilities 9,945 8,9
Slide 30: Appendix: Demonstrating Leading Industrial Innovation
Appendix 4 Demonstrating Leading Industrial Innovation Cumulative no. of municipal science and technology progress awards: 56 Cumulative no. of national and provincial science and technology innovation centres: 41 Ranked among the Fortune China 500 List for 15 consecutive years, ranking 272nd Great