Skyworth Group Limited · HKEX:751
Skyworth — FY2022 Earnings Presentation
30 slides from Skyworth's earnings presentation, Mar 23, 2023
Slide 1: 2022 Annual Results
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK 2022 Annual Results 23 March 2023
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: Five Key Business Sectors
Five Key Business Sectors Multimedia Business Smart Systems Technology Business • Smart TV systems • Home access systems • Provision of internet connection • Intelligent manufacturing services of Coocaa System • Automotive electronic systems • Other electronic products Modern Services Business New E
Slide 4: 2022 Results Highlights
AR2022 Results Highlights +5.0% -28.4% -4.0% Revenue Profit for the period Gross profit RMB53.49 bil RMB1.41 bil RMB8.21 bil e Net Cash assets position RMB21.89 bil RMB12.41 bil Fully implemented three key strategies of smartisation, refinement and internationalisation 11 R&D centres 16 Manufacturin
Slide 5: 2022 AR Results Highlights
01 2022AR RESULTS HIGHLIGHTS
Slide 6: Results Highlights
Results Highlights (RMB million) FY2022 FY2021 Change FY2020 Revenue 53,491 50,928 5.0% 40,093 Gross profit 8,207 8,548 (4.0%) 7,164 Gross profit margin 15.3% 16.8% (1.5 pp) 17.9% Operating profit (EBIT) 2,251 3,013 (25.3%) 2,620 Operating profit margin 4.2% 5.9% (1.7 pp) 6.5% Profit for the year 1,
Slide 7: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue Revenue Breakdown (Jan – Dec 2022) (RMB million) 60,000 +5.0% 53,491 Smart Systems Technology Business 50,928 2,151 22.3% 50,000 Multimedia 4,171 4,393 Business 4,375 New Energy 40,000 4,101 11,934 43.1% Business 10,911 RMB 22.3% 30,000 11,933 53.49 billion
Slide 8: 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 FY2021 FY2022 63% 60% 58% 40% 20% 1
Slide 9: Segment Results by Major Business Segment
Segment Results by Major Business Segment Segment Results Segment Results Breakdown (Jan – Dec 2022) (RMB million) +21.7% 2,443 Smart Systems 2,400 33.5% Technology Business 2,008 696 2,000 102 New Energy 1,600 17.6% Multimedia RMB Business 1,157 431 Business 16.2% 1,200 2.44 billion Smart Appliance
Slide 10: Gross Profit Margins
Gross Profit Margins (%) FY2022 FY2021 Change FY2020 Overall gross profit margin 15.3% 16.8% (1.5 pp) 17.9% By region - PRC market 16.7% 18.6% (1.9 pp) 21.0% - Overseas markets 12.5% 13.3% (0.8 pp) 13.0% By business segment Smart TV systems products (PRC market) 22.5% 18.5% 4.0 pp 23.3% Multimedia S
Slide 11: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) FY2022 FY2021 Change FY2020 Selling and distribution 6.4% 7.8% (1.4 pp) 8.7% General and administration 3.1% 2.9% 0.2 pp 3.5% Research and development 4.0% 4.1% (0.1 pp) 4.7% Total expense rate 13.5% 14.8% (1.3 pp) 16.9% Continued to devote resources to t
Slide 12: Competitive Advantage
Teett COMPETITIVE ADVANTAGE WN ©
Slide 13: Multimedia Business─Smart TV Systems Products: Focusing on Product Enhancement
Multimedia Business─Smart TV Systems Products: Focusing on Product Enhancement Revenue from smart TV systems products • Skyworth is China’s first TV manufacturer to have the capability and qualification to (RMB million) PRC develop its own OBM*, demonstrating its strong R&D, manufacturing and supply
Slide 14: Multimedia Business─China TV Market Shares
Multimedia Business─China TV Market Shares Sources: AVC Omni-channel integrated data TV (Sales volume) FY2022 FY2021 TV (Sales revenue) FY2022 FY2021 1 Hisense 15.9% 15.1% 1 Hisense 20.1% 18.2% 2 Xiaomi 15.3% 15.9% 2 TCL 15.3% 12.7% 3 TCL 12.6% 12.6% 3 SKYWORTH 13.7% 13.9% 4 SKYWORTH 12.6% 12.5% 4 X
Slide 15: Multimedia Business─Coocaa Technology
Multimedia Business─Coocaa Technology: Promoting the Development of Smart Human Habitat • Developed steadily in the internet value-added service market, based on the reliable and secure connection services, and mature and stable technology of Welcome To The Coocaa System the Coocaa system • Newly-la
Slide 16: Smart Systems Technology Business: Optical Access Products
Smart Systems Technology Business: Actively Promoting the Iteration of Optical Access Products • Leveraging on its market share in the smart set-top box market, the Group achieved new breakthroughs in centralised procurement and provincial supply of set-top boxes of the three major domestic telecomm
Slide 17: Smart Appliances Business: Persistent R&D Efforts and Technological Innovation
Smart Appliances Business: Persistent R&D Efforts and Technological Innovation Revenue from smart appliance products (RMB million) • Refrigerators - Skyworth All-round Odorless Refrigerator solves the pain points of consumers in 5,000 +0.4% PRC preservation, sterilisation and deodorisation, deliveri
Slide 18: New Energy Business: A Reliable One-stop Solution Provider
New Energy Business: A Reliable One-stop Solution Provider Development, Construction, Operation & Management “Photovoltaic + Inclusive finance + Digital technology” Platform for full-process assets of distributed PV power station Business Model • Skyworth Photovoltaic (PV) is committed to building a
Slide 19: New Energy Business: Bright Prospects for Photovoltaic Industry Market
New Energy Business: Bright Prospects for Photovoltaic Industry Market PV Industry Outlook • In 2022, newly installed PV capacity in China jumped approx. 60% YoY to 87.41GW, cumulative installed capacity of PV reached 392.61GW. Among them, the newly installed capacity of household distributed PV gre
Slide 20: Modern Services Business: Continued to optimise different segments
Modern Services Business: Continued to optimise different segments Professional teams including financial services, macro-logistics services, supply chain operation, foreign trades, park-based property management, park construction and development • Taking the financial company as the main body, sup
Slide 21: 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”, Skyworth Has Been Paid Attention to Maintain Its Sustainable Operation and Development Environmental Protection Skyworth’s Long-term Green Initiat
Slide 22: Annual Prospect
Teett ANNUAL PROSPECT
Slide 23: Development Strategy: Focusing on Simplification And Deepen Reform
Development Strategy: Focusing on "Simplification" And Deepen Reform Set clear goals Deepen Reform Streamline process Actively promote Fully revitalise Improve per capita synergetic development home appliances sector labour efficiency Continuously expand Firmly consolidate Active empower ourselves b
Slide 24: Development Strategy: Upholding Innovation-driven Development
Development Strategy: Upholding Innovation-driven Development Skyworth Zero Carbon Smart Life/Family Solutions Skyworth Zero Carbon Smart Life/Family Solutions Integrate Skyworth digital’s technology and smart home appliance solutions based on the Skyworth’s PV new energy ecosystem, to create a zero
Slide 25: 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
Slide 26: Appendix 1 Inventories and Cash Flow
Appendix 1 Inventories and Cash Flow (RMB million) 31.12.2022 31.12.2021 Change 31.12.2020 Inventories 8,947 7,791 14.8% 6,004 - Finished goods 3,380 4,257 (20.6%) 3,523 Inventories turnover period (days) 71 64 7 64 Bills receivables 1,990 2,996 (33.6%) 4,489 - On hand 1,978 2,930 (32.5%) 3,769 - Di
Slide 27: Appendix 2 Financial Position
Appendix 2 Financial Position (RMB million) 31.12.2022 31.12.2021 Change 31.12.2020 Current bank borrowings 9,404 8,892 5.8% 7,401 Non-current bank borrowings 5,853 5,370 9.0% 3,986 Total borrowings 15,257 14,262 7.0% 11,387 - Financial liabilities - discounted to banks 12 66 (81.8%) 720 - Other loa
Slide 28: Appendix 3 Key Financial Indicators
Appendix 3 Key Financial Indicators (RMB million) 31.12.2022 31.12.2021 Change 31.12.2020 Current assets 46,426 45,050 3.1% 39,608 Current liabilities 35,527 31,325 13.4% 28,091 Net current assets 10,899 13,725 (20.6%) 11,517 Non-current assets 17,984 15,831 13.6% 14,076 Non-current liabilities 6,98
Slide 29: Appendix 4 Demonstrating Leading Industrial Innovation
Appendix 4 Demonstrating Leading Industrial Innovation Cumulative no. of municipal science and technology progress awards: >50 424th on 2022 Top 500 Chinese Enterprises Cumulative no. of national and provincial science and technology innovation centres: >40 211th on 2022 Top 500 Chinese Manufacturin
Slide 30: Appendix 4 Demonstrating Leading Industrial Innovation
Appendix 4 Demonstrating Leading Industrial Innovation 30