Despite the COVID-19 pandemic, the Chinese home appliance maker experiences significant growth in net profit
SHENZHEN, China, Sept. 3, 2020 /PRNewswire/ — On August 31, Skyworth Group Co., Ltd. (stock code: 00751.HK, "Skyworth") released its financial report for the first half of 2020. According to the report, Skyworth generated turnover amounting to 15.98 billion yuan (approx. US$2.33 billion), gross profit amounting to 3.09 billion yuan (approx. US$451 million) and a gross profit margin of 19.3%. The Chinese home appliance maker recorded unaudited profits before and after deducting non-controlling interests of 573 million yuan (approx. US$83.7 million) and 391 million yuan (approx. US$57.1 million) for the reporting period, up 64.66% and 116.02% from a year earlier, respectively.
During the first half of this year, in response to the impact of COVID-19 and an increase in home appliance inventory, Skyworth took steps to adjust its operational strategies, and upgrade its products and services. In addition, the group undertook various measures to improve overall operational efficiency, leading to an increase in overall profitability.
The group’s multimedia business reported turnover of 9.39 billion yuan (approx. US$1.37 billion). Benefiting from the "stay-at-home economy", its COOCQQ’s internet value-added service saw turnover of 506 million yuan (approx. US$73.9 million), an increase of 130 million yuan (approx. US$19.0 million), or 34.6%, compared to 376 million yuan (approx. US$54.9 million) for the same period of last year. The internet value-added service has become the group’s new growth engine. Skyworth has also addressed the negative impact of the pandemic by optimizing its sales channels in overseas markets, achieving considerable growth during the challenging period. As of the end of June, the group recorded turnover amounting to 5.58 billion yuan (approx. US$816 million) in all markets outside of China, accounting for 34.9% of its total turnover and a year-over-year increase of 12.2%.
Looking ahead, Skyworth plans to closely monitor market trends and accelerate integration of 5G and AI into every "terminal" product that the firm produces. This will be achieved by accelerating the R&D of various product lines, including 5G smart TVs, 5G home access systems, smart home control systems and next-generation smart home appliances, creating a new product portfolio that enhances market share and competitiveness. The firm will also focus on the other three elements that have been a key to fulfill its corporate vision of creating home-centered smart living – intelligence, connections and ecosystems.