Skyworth Group Limited · HKEX:751
Skyworth — H1 2023 Earnings Presentation
30 slides from Skyworth's earnings presentation, Aug 25, 2023
Slide 1: 2023 Interim Results
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK 2023 Interim Results 25 August 2023 1
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 • Intelligent manufacturing • Internet connection services of Coocaa system Smart Systems • Home access systems • Lighting products Technology Business • Intelligent manufacturing • Security sys
Slide 4: 1H2023 Results Highlights
1H2023 Results Highlights +33.0% -2.4% +8.2% Revenue Profit for the period Gross profit RMB32.30 bil RMB616 mil RMB4.20 bil Net Cash Interim assets position dividend 3 HK cents RMB22.06 bil RMB13.40 bil per share Fully implemented three key strategies of smartisation, refinement and internationalisa
Slide 5: 1H2023 Results Highlights
01 1H2023 RESULTS HIGHLIGHTS
Slide 6: Results Highlights
Results Highlights (RMB million) 1H2023 1H2022 Change 1H2021 Revenue 32,300 24,284 33.0% 22,567 Gross profit 4,198 3,879 8.2% 3,745 Gross profit margin 13.0% 16.0% (3.0 pp) 16.6% Operating profit (EBIT) 1,097 1,072 2.3% 1,050 Operating profit margin 3.4% 4.4% (1.0 pp) 4.7% Profit for the period 616
Slide 7: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue Revenue Breakdown (Jan – Jun 2023) (RMB million) 35,000 +33.0% 32,300 Smart Household Smart Systems 925 30,000 Appliances 15.8% Technology Business Business 25,000 24,284 12,122 911 4,205 RMB 20,000 43.8% 32.3 billion New Energy 6,199 5,108 37.5% Business 15
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# 1H2022 1H2023 80% 66% 60% 58% 40%
Slide 9: Segment Results by Major Business Segment
Segment Results by Major Business Segment Segment Results Segment Results Breakdown (Jan – Jun 2023) (RMB million) 1,400 Smart Systems -12.5% Smart Household 1,191 Technology Business 1,200 Appliances 1,042 Business 1,000 334 184 800 160 RMB 1.04 billion 600 439 New Energy Business 466 400 271 Moder
Slide 10: Gross Profit Margins
Gross Profit Margins (%) 1H2023 1H2022 Change 1H2021 Overall gross profit margin 13.0% 16.0% (3.0 pp) 16.6% By region - PRC market 12.8% 18.1% (5.3 pp) 18.1% - Overseas markets 13.8% 11.7% 2.1 pp 13.8% By business segment Smart TV systems products (PRC market) 18.9% 23.6% (4.7 pp) 16.7% Smart househ
Slide 11: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) 1H2023 1H2022 Change 1H2021 Selling and distribution 5.6% 6.6% (1.0 pp) 8.2% General and administration 2.7% 2.9% (0.2 pp) 2.7% Research and development 3.1% 4.1% (1.0 pp) 4.3% Total expense rate 11.4% 13.6% (2.2 pp) 15.2% Continue to devote resources to
Slide 12: Competitive Advantage
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Slide 13: Smart TV Systems Products: Focusing on Product Enhancement
Smart Household Appliances 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, manufac
Slide 14: Smart TV Systems Products: 1H2023 China TV Market Shares
Smart Household Appliances Business Sources: All View Cloud (AVC) Smart TV Systems Products: 1H2023 China TV Market Shares Online sales volume Online sales revenue Offline sales volume Offline sales revenue 1 Xiaomi 18.8% 1 Hisense 20.2% 1 Hisense 26.0% 1 Hisense 29.1% 2 Hisense 16.4% 2 TCL 18.2% 2
Slide 15: Smart Appliances Products: Persistent R&D Efforts and Technological Innovation
Smart Household Appliances Business Smart Appliances Products: Persistent R&D Efforts and Technological Innovation Revenue# from smart appliance products • Refrigerators – Continue to adhere to the technical innovation direction of fine storage, (RMB million) PRC smartisation, high volume ratio, ene
Slide 16: Coocaa Technology: Promoting the Development of Smart Human Habitat
Smart Household Appliances 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 s
Slide 17: Actively Promoting the Iteration of Optical Access Products
Smart Systems Technology Business Actively Promoting the Iteration of Optical Access Products • Leveraged the market share advantages of set-top boxes and network connection equipment, and won a number of tender projects from the three major domestic telecommunications operators Smart devices • Set-
Slide 18: New Energy Business: Rapid Deployment of Comprehensive New Energy Development
New Energy Business Rapid Deployment of Comprehensive New Energy Development Development, Construction, Operation & Management Platform for full-process assets of distributed PV power station • Skyworth Photovoltaic (PV) is committed to building an energy IOT-based smart clean energy system integrat
Slide 19: New Energy Business: A Reliable One-stop Solution Provider
New Energy Business A Reliable One-stop Solution Provider Continue to enrich business models and products Pay for operation & maintenance services Provide technical operation & Leasing company maintenance services for power stations Sign lease Build, operate & contract maintain power stations Constr
Slide 20: 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 was 87.41GW, newly installed capacity of household distributed PV was 25.25GW. In 1H2023, newly installed PV capacity in China jumped approx. 154% YoY to 78.42GW;
Slide 21: Modern Services Business and Others Continued to Optimise Different Segments
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”, Skyworth Has Been Paid Attention to Maintain Its Sustainable Operation and Development Environmental Protection Skyworth’s Long-term Green Initiat
Slide 23: Annual Prospect
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Slide 24: Development Strategy: Focusing on Simplification and Deepening Reform
Development Strategy: Focusing on Simplification and Deepening Reform Set clear goals Streamline process Actively promote Improve per capita synergetic development labour efficiency Deepen reform Continuously expand Active empower ourselves business scale and create value Fully revitalise home appli
Slide 25: Development Strategy: Promoting the Diversified Development of Various Industries
Development Strategy: Promoting the Diversified Development of Various Industries 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 ecosyst
Slide 26: 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 27: Inventories and Cash Flow
Appendix 1 Inventories and Cash Flow (RMB million) 30.06.2023 31.12.2022 Change 31.12.2021 Inventories 9,460 8,947 5.7% 7,791 - Finished goods 3,842 3,380 13.7% 4,257 Inventories turnover period (days) 61 71 (10) 64 Bills receivables 1,717 1,990 (13.7%) 2,996 - On hand 1,717 1,978 (13.2%) 2,930 - Di
Slide 28: Financial Position
Appendix 2 Financial Position (RMB million) 30.06.2023 31.12.2022 Change 31.12.2021 Current bank borrowings 10,526 9,404 11.9% 8,892 Non-current bank borrowings 6,780 5,853 15.8% 5,370 Total bank borrowings 17,306 15,257 13.4% 14,262 - Secured 5,639 5,758 (2.1%) 6,853 - Unsecured 11,667 9,499 22.8%
Slide 29: Key Financial Indicators
Appendix 3 Key Financial Indicators (RMB million) 30.06.2023 31.12.2022 Change 31.12.2021 Current assets 50,939 46,426 9.7% 45,050 Current liabilities 39,620 35,527 11.5% 31,325 Net current assets 11,319 10,899 3.9% 13,725 Non-current assets 19,262 17,984 7.1% 15,831 Non-current liabilities 8,524 6,
Slide 30: Demonstrating Leading Industrial Innovation
Appendix 4 Demonstrating Leading Industrial Innovation Cumulative no. of municipal science and technology progress awards: 51 Cumulative no. of national and provincial science and technology innovation centres: 39 Skyworth jumped to 287th on 2023 Fortune China 500 List Great Achievements in Scientif