Skyworth Group Limited · HKEX:751
Skyworth — FY2023 Earnings Presentation
31 slides from Skyworth's earnings presentation, Mar 26, 2024
Slide 1: 2023 Annual Results
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK 2023 Annual Results 26 March 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 & solutions • Automotive Technology Business • Broadband network access electronic sy
Slide 4: FY2023 Results Highlights
FY2023 Results Highlights +29.1% +25.5% +17.5% Revenue Profit for the year Gross profit RMB69.03 bil RMB1.77 bil RMB9.65 bil Net Cash Final assets position dividend 5 HK cents RMB22.76 bil RMB12.58 bil per share Fully implemented three key strategies of smartisation, refinement and internationalisat
Slide 5: 2023 AR Results Highlights
01 2023AR RESULTS HIGHLIGHTS
Slide 6: Results Highlights
Results Highlights (RMB million) FY2023 FY2022 Change FY2021 Revenue 69,031 53,491 29.1% 50,928 Gross profit 9,645 8,207 17.5% 8,548 Gross profit margin 14.0% 15.3% (1.3 pp) 16.8% Operating profit (EBIT) 2,845 2,251 26.4% 3,013 Operating profit margin 4.1% 4.2% (0.1 pp) 5.9% Profit for the year 1,76
Slide 7: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue Revenue Breakdown (Jan – Dec 2023) (RMB million) +29.1% 69,031 70,000 4,708 Smart Household Smart Systems 15.1% Technology Business 60,000 Appliances 53,491 Business 2,080 23,340 50,000 11,934 40,000 44.3% RMB 33.8% New Energy 10,391 69.03 billion 11,933 Bus
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# in Overseas Markets 80% FY2022 FY2
Slide 9: Segment Results by Major Business Segment
Segment Results by Major Business Segment Segment Results Segment Results Breakdown (Jan – Dec 2023) (RMB million) 3,500 Smart Systems Smart Household +35.7% 3,043 Technology Business 3,000 Appliances Business 2,500 873 2,243 2,000 586 RMB 3.04 billion New Energy 1,500 1,181 Business 461 1,000 773 5
Slide 10: Gross Profit Margins
Gross Profit Margins (%) FY2023 FY2022 Change FY2021 Overall gross profit margin 14.0% 15.3% (1.3 pp) 16.8% By region - PRC market 13.7% 16.7% (3.0 pp) 18.6% - Overseas markets 15.1% 12.5% 2.6 pp 13.3% By business segment Smart TV systems products (PRC market) 19.3% 22.5% (3.2 pp) 18.5% Smart househ
Slide 11: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) FY2023 FY2022 Change FY2021 Selling and distribution 5.4% 6.4% (1.0 pp) 7.8% General and administrative 2.8% 3.1% (0.3 pp) 2.9% Research and development 3.1% 4.0% (0.9 pp) 4.1% Total expense rate 11.3% 13.5% (2.2 pp) 14.8% 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 (RMB million) • Skyworth is China’s first TV manufacturer to have the capability and qualification to 24,000 PRC develop its own OBM*, demonstrating its strong R&D,
Slide 14: Smart TV Systems Products: FY2023 China TV Market Structure
Smart Household Appliances Business Smart TV Systems Products: FY2023 China TV Market Structure Distribution of Sales Volume of Major Brands Breakdown of Sales Volume per Category of China’s TV# Market in 2023 of China’s TV# Market in 2023 25% 80% 24.3% 78.2% 20% 69.4% 20.6% 60% 15% 15.4% 40% 10% 8.
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 the Coocaa system • Newly-launched “CooCa
Slide 17: Smart Systems Technology Business
Smart Systems Technology Business Creating a Digital, Broadband, UHD, Smart and IoT Ecosystem • Leveraged the market share advantages of set-top boxes and network connection equipment, won a number of tender projects from the three major domestic telecommunications operators • Set-top box business r
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 energy system integrating de
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 “Yue Yang Ting” (悅陽亭)* Pay for operation & maintenance services Provide technical “Xiao Yang Lou” operation & Leasing company maintenance services (小陽樓)* for power stations Sign lease Build, ope
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, cumulative installed capacity of 392.61GW. In 2023, newly installed PV capacity in China jumped approx. 148% YoY to 216.88GW; among them, the newly i
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”, 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 24
Slide 25: Development Strategy: Promoting the Diversified Development of Various Industries
Development Strategy: Promoting the Diversified Development of Various Industries 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/Family Solutions Sky
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: Inventories and Cash Flow
Appendix 1 Inventories and Cash Flow (RMB million) 31.12.2023 31.12.2022 Change 31.12.2021 Inventories 9,894 8,947 10.6% 7,791 - Finished goods 3,918 3,380 15.9% 4,257 Inventories turnover period (days) 60 71 (11) 64 Bills receivables 1,769 1,990 (11.1%) 2,996 - On hand 1,769 1,978 (10.6%) 2,930 - D
Slide 28: Financial Position
Appendix 2 Financial Position (RMB million) 31.12.2023 31.12.2022 Change 31.12.2021 Current bank borrowings 8,218 9,404 (12.6%) 8,892 Non-current bank borrowings 7,097 5,853 21.3% 5,370 Total bank borrowings 15,315 15,257 0.4% 14,262 - Secured 5,355 5,758 (7.0%) 6,853 - Unsecured 9,960 9,499 4.9% 7,
Slide 29: Key Financial Indicators
Appendix 3 Key Financial Indicators (RMB million) 31.12.2023 31.12.2022 Change 31.12.2021 Current assets 46,677 46,426 0.5% 45,050 Current liabilities 35,428 35,527 (0.3%) 31,325 Net current assets 11,249 10,899 3.2% 13,725 Non-current assets 20,484 17,984 13.9% 15,831 Non-current liabilities 8,976
Slide 30: Demonstrating Leading Industrial Innovation
Appendix 4 Demonstrating Leading Industrial Innovation Cumulative no. of municipal science and technology progress awards: 54 Cumulative no. of national and provincial science and technology innovation centres: 40 Skyworth jumped to 287th on 2023 Fortune China 500 List Great Achievements in Scientif
Slide 31: Demonstrating Leading Industrial Innovation
Appendix 4 Demonstrating Leading Industrial Innovation 31