In terms of performance, Skyworth Group’s two major home-listing platforms experienced significant losses. Recently, Skyworth Digital released its interim results for the 2017/18 fiscal year. While operating income rose by 5.9% compared to the previous year, net profit fell sharply by HK$192 million, a drop of 123% year-on-year. Additionally, the company reported a net profit of only HK$48.91 million from January to September 2017, which was nearly 90% lower than the same period in 2016. Skyworth Digital's TV sales were not performing well during this time. Revenue dropped by 6.5% to HK$8.764 billion, and total sales volume reached 7.354 million units, down 11% from the same period in 2016. The decline was especially pronounced in the mainland market, where sales fell by 21%. Industry experts noted that the color TV market is not highly concentrated, with top brands having relatively similar market shares. This competition could lead to price wars as companies try to gain more market share. A reporter recently contacted Skyworth Group regarding strategies to improve profitability and boost color TV sales, but no response had been received by the time of publication. The sharp drop in net profit continues to be a concern. In the 2016/17 financial year, Skyworth's net profit was HK$1.31 billion, a 40% decrease from the previous year. The latest report for the 2017/18 fiscal year showed that although operating income increased by 5.9%, the net loss reached HK$192 million, a staggering 123% decline from the same period in 2016. Skyworth Group's other listed subsidiary also faced similar challenges. From January to September 2017, its operating income rose 21% to HK$5.144 billion, but net profit dropped to just HK$48.91 million, a fall of 87%. As a key player in Skyworth Group, Skyworth Digital focuses on the color TV business. Since its spin-off in 2014, it has been a core part of the group’s strategy. Analysts suggest that the main reason behind the profit decline is rising raw material costs, particularly due to supply shortages and higher prices for panels and electronic components. Skyworth Digital attributed the drop in gross margin and net profit to increased prices for memory chips like DDR3, EMMC Flash, and NOR Flash. These factors led to higher procurement costs and reduced margins. Liu Buchen, an industry analyst, noted that the overall decline in profitability among Chinese TV manufacturers in 2017 was widespread, including companies like Hisense, which previously had strong profits. Liu explained that the sharp rise in panel prices since mid-2016 was unprecedented, leading to higher raw material costs. At the same time, the low-price competition from internet brands kept TV prices stable, which hurt overall profitability. He also pointed out that color TVs have lower profit margins compared to other home appliances. Moreover, most TV companies lack control over the panel supply chain, making it difficult to raise prices. To address these challenges, Skyworth Digital has taken steps such as optimizing product structure, controlling costs, and accelerating R&D for high-margin products. Looking ahead, Skyworth plans to reform its supply chain system to better handle fluctuations in key raw material prices. It also aims to adjust product offerings and implement foreign exchange risk management strategies to stabilize earnings. Liu Buchen also commented that the future for set-top boxes is uncertain, as their functions are expected to be integrated into TVs, reducing the market for standalone devices. Despite efforts to improve, Skyworth Digital's color TV sales remain weak. Sales revenue fell 6.5% to HK$8.764 billion, and unit sales dropped 11% to 7.354 million. Domestic sales declined by 21%, while overseas sales saw a slight increase of 1% to 3.855 million units. Peng Xiandong of China Blackcom Research Center noted that Skyworth's internal restructuring in 2017 may have contributed to the decline. Although overseas sales grew, they came at the cost of lower gross margins, which affected overall profitability. Industry experts believe that Chinese TV companies generally face low margins in overseas markets, as they prioritize market expansion over pricing. Overall, the domestic TV market saw a 12.9% drop in retail volume in Q3 2017, according to AVC data. While panel prices are currently declining, analysts expect this to benefit TV manufacturers. Skyworth CEO Liu Weizhi believes the industry will become healthier in 2018. However, some experts warn that even with falling panel prices, other raw material costs may continue to rise, prompting potential price cuts to capture market share.

Data Cables

phone Charging cable,Usb Phone Data Cable Android,iphone charge data cable,Phone data cable adapter

DongGuan BoFan Technology Co.,Ltd. , https://www.ufriendcc.com