Skyworth Group Limited · HKEX:751
Skyworth — H1 2021 Earnings Presentation
30 slides from Skyworth's earnings presentation, August 2021
Slide 1: 2021 Interim Results
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK 2021 Interim Results August 2021
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: About Skyworth
About Skyworth Smart Systems Technology (000810.SZ) Smart Appliances Home access systems, intelligent Smart air conditioners, smart manufacturing, automotive electronic refrigerators, smart washing machines, systems, other electronic products, etc. smart kitchen appliances, etc. Multimedia Modern Se
Slide 4: Results Highlights
01 RESULTS HIGHLIGHTS
Slide 5: Results Highlights
Results Highlights (RMB million) FY2020 1H2020 1H2021 Change Revenue 40,093 15,979 22,567 41.2% Gross profit 7,164 3,086 3,745 21.4% Gross profit margin 17.9% 19.3% 16.6% (2.7 pp) Operating profit (EBIT) 2,620 1,010 1,050 4.0% Operating profit margin 6.5% 6.3% 4.7% (1.6 pp) Profit for the year/perio
Slide 6: Gross Profit Margins
Gross Profit Margins (%) FY2020 1H2020 1H2021 Change Overall profit margins 17.9% 19.3% 16.6% (2.7 pp) By regions - PRC market 21.0% 22.0% 18.1% (3.9 pp) - Overseas markets 13.0% 14.3% 13.8% (0.5 pp) By business segments Smart TV systems products (PRC market) 23.3% 18.3% 16.7% (1.6 pp) Smart TV syst
Slide 7: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue Revenue Breakdown (Jan – Jun 2021) (RMB million) 24,000 +41.2% 22,567 Smart Systems 2,113 Multimedia Technology 20,000 2,200 20.4% 15,979 16,000 900 4,599 1,880 RMB 22.567 billion Smart 12,000 9.7% Appliances 3,805 60.5% 8,000 Modern Services 13,655 9.4% and
Slide 8: Net Profit by Major Business Segment
Net Profit by Major Business Segment Net Profit Net Profit Breakdown (Jan – Jun 2021) (RMB million) Smart Systems 1,000 Technology +55.5% Multimedia 857 Smart 21.9% 800 10.6% Appliances 4.9% 600 551 536 RMB 51 857 million 57 400 184 Modern Services 42 and Others* 200 188 259 62.6% 91 0 1H2020 1H2021
Slide 9: China TV Market Shares
China TV Market Shares Sources: AVC Omni-channel integrated data TV (Sales volume) 1H2021 FY2020 TV (Sales revenue) 1H2021 FY2020 1 Xiaomi 17.1% 16.9% 1 Hisense 17.9% 17.0% 2 Hisense 15.1% 14.2% 2 SKYWORTH 14.4% 14.3% 3 TCL 13.3% 13.1% 3 TCL 12.8% 13.4% 4 SKYWORTH 13.3% 13.4% 4 Xiaomi 12.0% 11.9% 5
Slide 10: 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 58% 60% 1H2020 1H2021 60% 40% 20% 1
Slide 11: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) FY2020 1H2020 1H2021 Selling and distribution 8.7% 9.4% 8.2% General and administration 3.5% 3.7% 2.7% Research and development 4.7% 5.1% 4.3% Total expense rate 16.9% 18.1% 15.2% R&D: Continued to devote resources to the R&D of premium smart products and
Slide 12: Inventories and Cash Flow
Inventories and Cash Flow (RMB million) 30.06.2020 31.12.2020 30.06.2021 Change Inventories 5,388 6,004 8,746 45.7% - Finished goods 2,916 3,523 4,852 37.7% Inventories turnover period (days) 79 64 78 14 Bills receivables 3,008 4,489 3,150 (29.8%) - On hand 2,807 3,769 2,930 (22.3%) - Discounted to
Slide 13: Financial Position
Financial Position (RMB million) 30.06.2020 31.12.2020 30.06.2021 Change Current bank borrowings 5,404 7,401 8,195 10.7% Non-current bank borrowings 2,445 3,986 5,385 35.1% Total borrowings 7,849 11,387 13,580 19.3% - Financial liabilities - discounted to banks 201 720 220 (69.4%) - Other loans 7,64
Slide 14: Key Financial Indicators
Key Financial Indicators (RMB million) 30.06.2020 31.12.2020 30.06.2021 Change Current assets 33,890 39,608 41,972 6.0% Current liabilities 23,665 28,091 28,530 1.6% Net current assets 10,225 11,517 13,442 16.7% Non-current assets 13,368 14,076 14,677 4.3% Non-current liabilities 5,396 6,602 8,187 2
Slide 15: Business Review
02 BUSINESS REVIEW
Slide 16: Promoted the Development of Ultra HD Video Industry
Promoted the Development of Ultra HD Video Industry Skyworth accelerates the area of smart living and the key 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. 16
Slide 17: Unveiled New Flagship OLED TVs Equipped With OBM Technology
Unveiled New Flagship OLED TVs Equipped With OBM Technology Skyworth is China’s first TV manufacturer to have the capability and qualification to develop its own OBM (OLED Basic Module, refers to self-manufactured OLED modules), demonstrating its strong R&D, manufacturing and supply chain capabiliti
Slide 18: Promoted the Development of Skyworth Smart Living Field
Promoted 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 ex
Slide 19: Focused on 5G + AI + Smart Terminal Technology Development Strategy
Focused on “5G + AI + Smart Terminal” Technology Development Strategy 5G+ 8K In March 2021, Skyworth introduced the application of “5G+ Smart Home System” at AWE 2021. Embracing the New 5G Era, Skyworth actively explored the “5G + AI + Smart terminal” industry chain and unveiled a new 5G terminal na
Slide 20: Launched New Full-Scenario Smart Control System
Launched New Full-Scenario Smart Control System In July 2021, Skyworth launched new full-scenario smart control system. This one-stop smart control system integrates communications, AI, the Internet, mobile display, cloud-to-cloud docking and one-key switching, and equipped with smart voice and touc
Slide 21: Advantages of Large Market Share Continued
Advantages of Large Market Share Continued Leveraging on its market share in the smart set-top box market, the Group won several tenders of the smart gateway products of next-generation communications technology. The VR business won the tender for the R&D project of China Mobile’s 2021 Cloud XR term
Slide 22: Coocaa to Become a New Platform for Media Distribution
Coocaa to Become a New Platform for Media Distribution in Large-screen Field Coocaa OS8 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 spa
Slide 23: Stabilised Domestic Sales and Breakthrough in Overseas Markets
Stablised Domestic Sales and Achieved a Breakthrough in the Overseas Markets Promote the domestic 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 Gu
Slide 24: Create the Future with New Partners
Create the Future with New Partners In June 2021, Skyworth TV officially announced as Juventus Official Partner (Juventus Official Partner) worldwide, and Juventus Official TV Partner (Juventus Official TV Partner). Skyworth TV is the first official partner of Juventus in the field of TV and smart h
Slide 25: Promoted the Construction of New Industrial Base
Promoted the Construction of New Industrial Base In May 2021, the groundbreaking ceremony for the Skyworth Huizhou Zhongkai Industrial Base project was held in Huizhou Zhongkai High-tech Zone. The investment is in line with Skyworth’s expansion plans to scale-up capacities of display industry chain
Slide 26: Actively Fulfilled Social Responsibility and Demonstrating Leading Industrial Innovation
Actively Fulfilled Social Responsibility and Demonstrating Leading Industrial Innovation Skyworth Group actively mobilise 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 RMB6 millio
Slide 27: Annual Prospect
03 ANNUAL PROSPECT
Slide 28: 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 over
Slide 29: 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 30: 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