Skyworth releases first financial statement following adjustment to fiscal calendar

Stocks and Financial Services Press Releases Tuesday April 9, 2019 08:49
SHENZHEN, China--9 Apr--PRNewswire/InfoQuest
  • Net profit stood at 553 million yuan (approx. US$82.3 million), gross profit margin increased to 18.7% while investment in R&D increased by 18%

On March 29, Skyworth announced its performance report for the nine months ended December 31, 2018 (the "report period"). This is the company's first financial statement following the adjustment to the fiscal calendar.

According to the financial statement, the group booked turnover amounting to 30.192 billion yuan (approx. US$4.49 billion) for the period. The overall gross profit margin increased to 18.7 percent, while net profit stood at 553 million yuan (approx. US$82.3 million), an increase of 10.8 percent compared to 499 million yuan (approx. US$74.3 million) for the same period of the previous year.

The financial statement also included the unaudited financial results for the 12 months between January 1 and December 31, 2018. The data showed that Skyworth delivered overall turnover amounting to 39.271 billion yuan (approx. US$5.84 billion) for the year, with a slight year-over-year increase of 0.1 percent. Gross profit margin increased to 18.5 percent, up from 16.9 percent the previous year. The group generated double-digit growth in sales volume of TVs in mainland China. It invested 1.688 billion yuan (approx. US$251 million) by 18% growth comparing with last year in the R&D of various high-quality smart products to enhance competitiveness. Generally, the group has enhanced operational efficiency.

Looking back over the year, Skyworth adjusted its color TV product portfolio, introducing several differentiated products - the MAXTV and OLED series, which focus on user experience. In addition, the group moved its business focus to 55-inch and larger-screen TVs. Meanwhile, the group strengthened cooperation with core customers in overseas markets, while consistently improving service and product competitiveness, driving a year-over-year increase in gross profit margin. The group sold 15.316 million TVs worldwide, serving more than 36 million active smart TV viewers, with average daily active users exceeding 13.65 million.

The digital set-top boxes business also contributes significantly to the group's rise in gross profit margins by increasing the shipment proportion of high value-added products. At the same time, the group invested heavily in the research and development of new products series for the Android ecosystem and established strategic collaborations with Google, Netflix and other content providers.

During the period, revenues of smart electrical products reached 2.788 billion yuan (approx. US$415 million) in mainland China, increasing 2.2 percent compare with last year, while overseas revenues jumped 60.7 percent to 784 million yuan (approx. US$117 million).

The group currently maintains operations worldwide, including in mainland China and other regions across Asia, as well as in Africa, Europe and the United States. Among them, mainland China is the main business market, and the Middle East and Africa markets grew rapidly.

Benefiting from the Chinese government's favorable policies that support the development of an ultra-high definition-based video industry and the beginning of the first stage of the roll-out of the 5G era, Skyworth Group plans to accelerate the in-depth integration of hardware, software, systems, content and services, as well as strengthen the integration of the key supporting resources for the upstream and downstream of the industrial chain that form the essence of an intelligent household appliance industry ecosystem, while leading the household appliance industry into a new and important stage of growth and development.

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