Skyworth Group Limited · HKEX:751
Skyworth — H1 2022 Earnings Presentation
29 slides from Skyworth's earnings presentation, Aug 26, 2022
Slide 1: 2022 Interim Results
創維集團有限公司 SKYWORTH GROUP LIMITED Stock Code: 00751.HK 2022 Interim Results 26 August 2022
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 • Intelligent manufacturing value-added services of • Automotive electronic systems Coocaa System • Other electronic products Modern Services Business Smar
Slide 4: 1H2022 Results Highlights
1H2022 Results Highlights +7.6% +3.4% +3.6% Revenue Profit for the period Profit RMB24.28 bil RMB631 mil RMB3.88 bil Net Cash Interim assets position dividend 3.0 HK cents RMB21.48 bil RMB12.47 bil per share Fully implemented three key strategies of smartisation, refinement and internationalisation
Slide 5: 1H2022 Results Highlights
01 1H2022 RESULTS HIGHLIGHTS
Slide 6: Results Highlights
Results Highlights (RMB million) 1H2022 1H2021 Change FY2021 Revenue 24,284 22,567 7.6% 50,928 Gross profit 3,879 3,745 3.6% 8,548 Gross profit margin 16.0% 16.6% (0.6 pp) 16.8% Operating profit (EBIT) 1,072 1,050 2.1% 3,013 Operating profit margin 4.4% 4.7% (0.3 pp) 5.9% Profit for the period 631 6
Slide 7: Revenue by Major Business Segment
Revenue by Major Business Segment Revenue Revenue Breakdown (Jan – Jun 2022) (RMB million) +7.6% 25,000 24,284 22,567 932 2,113 4,206 Multimedia 25.5% Smart Systems 20,000 829 Business Technology Business 2,200 2,099 Smart Appliances 15,000 4,599 RMB 8.7% Business 6,199 44.7% 24.28 billion 10,000 Ne
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 1H2021 1H2022 60% 57% 60% 40% 20% 1
Slide 9: Segment Results by Major Business Segment
Segment Results by Major Business Segment Segment Results Segment Results Breakdown (Jan – Jun 2022) (RMB million) +40.4% 1,203 1,200 298 Multimedia Smart Systems 1,000 Business Technology Business 857 800 148 38 RMB Smart Appliances 600 536 1.2 billion Business 501 400 New Energy Business 57 200 42
Slide 10: Gross Profit Margins
Gross Profit Margins (%) 1H2022 1H2021 Change FY2021 Overall gross profit margin 16.0% 16.6% (0.6 pp) 16.8% By region - PRC market 18.1% 18.1% 0.0 pp 18.6% - Overseas markets 11.7% 13.8% (2.1 pp) 13.3% By business segment Smart TV systems products (PRC market) 23.6% 16.7% 6.9 pp 18.5% Multimedia Sma
Slide 11: Operating Expenses Analysis
Operating Expenses Analysis (% to revenue) 1H2022 1H2021 Change FY2021 Selling and distribution 6.6% 8.2% (1.6 pp) 7.8% General and administration 2.9% 2.7% 0.2 pp 2.9% Research and development 4.1% 4.3% (0.2 pp) 4.1% Total expense rate 13.6% 15.2% (1.6 pp) 14.8% 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 (RMB million) PRC • Skyworth is China’s first TV manufacturer to have the capability and qualification 12,000 -21.2% 10,626 to develop its own OBM*, demonstrating its strong R&D, man
Slide 14: Multimedia Business─China TV Market Shares
Multimedia Business─China TV Market Shares Sources: AVC Omni-channel integrated data TV (Sales volume) 1H2022 FY2021 TV (Sales revenue) 1H2022 FY2021 1 Xiaomi 16.0% 15.9% 1 Hisense 19.3% 18.2% 2 Hisense 15.0% 15.1% 2 SKYWORTH 13.5% 13.9% 3 SKYWORTH 12.2% 12.5% 3 TCL 13.3% 12.7% 4 TCL 11.5% 12.6% 4 X
Slide 15: Multimedia Business─Coocaa Technology
Multimedia Business─Coocaa Technology: Promoting the Development of Smart Human Habitat • Coocaa Technology focuses on the main business of smart TV system R&D and smart TV operation value-added services, including movies, advertising, shopping, games, education, app distribution, music and other bu
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 impressive results in the sales of set-top boxes to the three major domestic telecommunications operators • Thanks to th
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 2,500 PRC -4.6% 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 “Internet + PV + Inclusive Finance” Business Model Platform for full-process assets of distributed PV power station • Skyworth Photovoltaic (PV) is committed to building an energy IOT-based s
Slide 19: New Energy Business: Bright Prospects for Photovoltaic Industry Market
New Energy Business: Bright Prospects for Photovoltaic Industry Market PV Industry Outlook • In 2021, newly installed PV capacity in China up 13.9% to 54.88 GW. Distributed PV was approx. 29.28 GW, accounting for 53.4% of all new installed capacity; installed residential PV capacity up 113.3% to 21.
Slide 20: Modern Services Business: Continued to optimise different segments
Modern Services Business: Continued to optimise different segments • Skyworth Huizhou Zhongkai Industrial Base project: To scale-up capacities of display industry chain including 5G + 8K. It also combine with R&D and production operations to promote the formation of a local leading edge in the elect
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: 2022 Direction of Skyworth Group
2022 Direction of Skyworth Group As proposed by the board of directors of the Group, Skyworth aims to achieve “transformation and development acceleration” in 2022. The Group will promptly promote the three key strategies of smartisation, refinement and internationalisation, and continue to expandin
Slide 24: Development Strategy
Development Strategy Actively leverage on various emerging technologies including 5G, AI, VR, big data and cloud computing to launch new products including UHD TVs and smart appliances, and 5G smart access systems, smart network devices, office, automobile and other application systems Improve p
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) 30.06.2022 31.12.2021 Change 31.12.2020 Inventories 8,742 7,791 12.2% 6,004 - Finished goods 3,879 4,257 (8.9%) 3,523 Inventories turnover period (days) 78 64 14 64 Bills receivables 1,542 2,996 (48.5%) 4,489 - On hand 1,458 2,930 (50.2%) 3,769 - Di
Slide 27: Appendix 2 Financial Position
Appendix 2 Financial Position (RMB million) 30.06.2022 31.12.2021 Change 31.12.2020 Current bank borrowings 9,108 8,892 2.4% 7,401 Non-current bank borrowings 5,397 5,370 0.5% 3,986 Total borrowings 14,505 14,262 1.7% 11,387 - Financial liabilities - discounted to banks 84 66 27.3% 720 - Other loans
Slide 28: Appendix 3 Key Financial Indicators
Appendix 3 Key Financial Indicators (RMB million) 30.06.2022 31.12.2021 Change 31.12.2020 Current assets 44,230 45,050 (1.8%) 39,608 Current liabilities 33,378 31,325 6.6% 28,091 Net current assets 10,852 13,725 (20.9%) 11,517 Non-current assets 17,166 15,831 8.4% 14,076 Non-current liabilities 6,53
Slide 29: Appendix 4 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 252nd on 2022 Fortune China 500 List Great Achievements in Scientif