Skyworth plans to fully turn to LED TV within two years

   January 3, according to Hong Kong media reports, Skyworth (751) strongly integrated product structure, from cold cathode tube (CCFL) backlit LCD TV to LED TV, is expected to be completed within two years, the two gross margins are 14% Point 5 and 23.5, after a full turn, it will help improve overall profitability.

According to Hong Kong's "Sing Tao Daily" report, Skyworth (751) vigorously integrated the product structure, from cold cathode tube (CCFL) backlit LCD TV to LED TV, is expected to be completed within two years, the gross profit margin of each is 14.5 percent And at 23.5, a full turn will help improve overall profitability. As of the end of November last year, Skyworth LED LCD TV sales accounted for 21%, the chief financial officer Liang Zizheng said that the company's LED TV sales accounted for 28% of this year's full year, up to next year. More than 60% of the level; and believe that "a complete transition of CCFL to LED in one or two years."

With the decrease in the number of foreign brands and the decline in demand for ODMs and OEMs, the company plans to promote its own brands in developing countries and “try water temperature first” in Thailand, Vietnam and the Philippines.

As of the end of September last year, Skyworth's overall gross profit margin in the first half of the year decreased by 5 percentage points year-on-year to 17.7%, mainly due to the clearance of CCFL inventory. Liang Zizheng said that inventory clearance has been completed. With the increase in the proportion of LED TV sales with higher gross profit in the second half of the year, and the new LED TV products will be concentrated in the Lunar New Year, I believe that the gross profit margin for the whole year will be higher than that of the first half of the year. Great improvement.

A new round of "home appliances to the countryside" has been released, and the mainland has increased the "going to the countryside". Each company's bidding products have increased from 50 to 80, and Skyworth's 80 TVs have won the bid. Liang Zizheng said that in the first half of the year, the proportion of rural income benefiting from the “home appliances to the countryside” policy has reached 30%. I believe that the Group's business will continue to be promoted by this policy.

He revealed that the company's winning 80 TV products, CCFL TV and LED TV each accounted for half, while the previous round of "going to the countryside" products still have no LED TV. He continued, "The relatively backward CRT TVs are no longer bidding. There are currently more than 300 million CRT TVs in rural China for six to eight years. I believe that the replacement of CRT TVs will be the driving force for the Group's future development."

Skyworth plans to eliminate the relatively backward and extremely low gross profit CRT TV business. As of the end of November last year, CRT TV sales decreased by 86% year-on-year. He said that most of the company's CRT TVs were discontinued in October last year, and CRT TV revenue is expected to be less than one percent next year.

Inflation in the mainland is high, Liang Zizheng said that the rise in raw material prices has little impact on the company. The company's joint venture with South Korea's LG shows that it will effectively reduce the risk of rising costs.

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