Refusal to take "Alternative Bridge" TV manufacturers to diversify their profits

From the mid-term financial report of domestic color TV companies, sales revenue in the first half of the year showed a year-on-year upward trend. This was mainly due to the relatively low base of the same period last year. The data shows that in addition to Konka and Skyworth's color TV business accounted for a larger proportion of the company, Hisense, TCL, Changhong, the company's TV business accounted for a substantial decline in the proportion of business, which Changhong with less than 28% of the most prominent. Experts pointed out that after several years, domestic color TV manufacturers have been extending horizontally into white and IT fields and infiltrating upstream areas such as panels and chips, which have expanded their profitability range and improved their profitability. They will lay the foundation for a greater transformation in the future.

Corporate restructuring

The company has continuously adjusted its business structure and increased its efforts in household appliances and communications industries.

In recent years, China's color TV companies have continuously adjusted their business structure to gradually improve their horizontal and vertical industrial chains. Not only black companies such as Changhong, TCL, and Hisense, which originally involved in the field of white electricity, have further increased their investment in white-water projects, but black-and-white companies such as Konka have also started to engage in white electricity, forming a “black-and-white” pattern. .

On the whole, TV companies’ financial reporting data showed an upward trend in the first half of this year. Among them, TCL Multimedia's main revenue accounted for 40.35%, home appliance group's main revenue accounted for 14.95%, TCL Communication's main revenue accounted for 14.10%; Hisense Electric's TV accounted for 92.06% of main revenue; Sichuan Changhong TV's main business revenue accounted for 27.75%, air-conditioning and refrigerators accounted for 22.06% of main revenue, IT products accounted for 20.55% of main revenue; Konka color TV business accounted for 77.66% of main business revenue, the main business of white electricity. Revenue from operations accounted for 6.93%, and mobile phone business accounted for 11.05% of revenue.

For TCL, Changhong, Konka, and Hisense, these four established color TV companies, the original color TV business is undoubtedly its pillar industry. With the trend of diversification becoming more apparent, companies are constantly adjusting their business structure and increasing their efforts in household appliances and communications industries.

From the data point of view, Changhong TV business accounted for only 27.75% of operating income, becoming the most thoroughly adjusted one among the four companies. This year, Changhong completed the third major adjustment since Zhao Yong took over the chairmanship and built an industrial system structure with seven major industrial groups and three directly-affiliated divisions as the main body. In addition, the TCL Group also adjusted its corporate structure in August in order to regain its lost domestic market.

In contrast, Hisense and Konka's TV business accounted for a relatively high proportion of their main revenue. Excluding the acquisition of Kelon by Hisense, Konka has become the highest proportion of color TV business among 4 companies. In addition to color TV, Konka does not have many bright spots in other product lines, and it is self-evident that it is in a weak position in the fierce competition.

Profit level is less than expected

Most TV companies in the Chinese market are only taking away, and their profits are generally low.

Although China has become the world's largest LCD TV market, there are not many color TV companies that have really earned a lot in this market. Most TV companies in the Chinese market are only taking away, and their profits are generally low. From the perspective of the profitability of the four companies, besides the color TV business, household appliances and IT businesses have also become the key for companies to increase their main income.

The financial report shows that TCL Group's net profit in the first half of the year increased by 241.67% year-on-year, of which TCL multimedia gross profit rate was 16.09%, household appliances group gross profit margin was 11.37%, TCL Communication gross margin was 29.06%; Hisense Electric's main operating revenue increased 3.27% year-on-year in the first half of the year , Of which TV gross margin was 21.62%; Sichuan Changhong net profit increased 469.16% year-on-year, of which television gross margin was 18.38%, air-conditioning, refrigerator gross margin was 22.74%, IT product gross margin was 5.17%; Konka Group's main revenue year-on-year decline 13.54%, of which the color TV business gross margin was 14.38%, the mobile phone business was 13.77%, and the white electricity business was 19.87%.

From this point of view, the gross profit margins of Changhong and TCL Group have all shown a different range of increase, which is inextricably linked with the continuous adjustment of the business structure of the company. The profit of Konka turned profitable year-on-year, mainly due to the drop in price of color TV products and the lack of strong competitiveness of smart phone products. The low-end and mid-range handset products also faced enormous challenges, which led to a drop in sales revenue and profitability of the mobile phone business. In addition, the rising costs of raw materials and labor continue to squeeze the space for gross margins.

Luo Qingqi, an appliance expert, said in an interview with a reporter from China Electronics News: “Influenced by the macro economy, the inflation rate is high. The figures shown in the financial report do not represent the true profitability of the company. It can be said that figures do not represent The recovery of profits."

Sun Xinuo, deputy secretary-general of the China Electronics and Video Industry Association, told the China Electronics News that excessive market competition would reduce the profitability of the industry, and that the issue of increasing production growth would not be significantly alleviated. He believes that the vitality of the color TV industry is very large. Continuous technology upgrading and upgrading will make the market more active.

Manufacturers change market strategies

The home multimedia terminals backed by smart TVs have apparently become the development trend of the color TV industry in the future.

With the rapid development of the color TV industry, the color TV industry has undergone profound changes: Under the influence of triple play, smart, 3D and other factors, the traditional development model of the color TV industry has been difficult to adapt to the needs of the current market competition. The competition in the color TV industry is based more on the value supply competition that meets consumer demand on the brand and technology.

Lin Maoxiang, executive deputy general manager of Changhong and chairman of the Multimedia Industry Group, told the China Electronics News reporter that Changhong changed the original strategy of the color TV market. In the digital era and intelligent era, Changhong is not only a technical reserve, but also a key component. In order to be profitable, we must have a precise market position.

Following 3D TVs and smart TVs, domestic TV manufacturers have collectively launched "cloud TV." Yan Xiaolin, vice president of TCL Group and president of the Group Industrial Research Institute, told reporters that compared with traditional smart TVs, TCL Super Smart Cloud TV will provide users with richer services and content and will bring better interactive experiences. He said that smart TVs are just like the gas tanks that were previously available to the family. In the era of super smart cloud TVs, it seems that everyone has used piped gas, and consumers can use it whenever and wherever they want.

For the development of the color TV industry in the future, Peng Yi, research director of China Yikang Market, said in an interview with the “China Electronics News” reporter that color TV companies can develop to display technology and product application in the future. Although the market penetration rate of smart TVs is not high at present, home multimedia terminals based on smart TVs have apparently become the development trend of the color TV industry in the future. In addition, he predicts that in this context, TV sales in the third quarter will increase by 10% to 12% year-on-year, and the color TV industry will show a slight upward trend.