Skyworth Group Steady Progress of Home Appliances in the First Half of the Year in the New Cycle, Further Manifestation of Second Curve Value

Skyworth Group's home appliances made steady progress in the first half of the year, demonstrating the value of the second curve

Skyworth Group, in the eyes of many people, is a television brand enterprise, which is also the market’s first impression of Skyworth.

The first impression, called the primacy effect in psychology, refers to the impact of the first input of information on the subsequent cognition of the object in the individual’s social cognitive process. It is the simplest and most vivid form of thinking in interpersonal relationships.

But it is not true.

In the past decade, human society has evolved from informatization to digitalization, and the Chinese economy has also ended the period of great dividends of rapid growth.

• Bloomberg and experts dissect Huawei Mate60 Pro the chip is indeed advanced
• Guo Mingqi Huawei Mate60 Pro has strong demand, with shipments expected to reach at least 12 million units
• Stone Technology’s new product, the H1 Neo Molecular Sieve Washing and Drying Integrated Machine, is about to be released, accelerating the popularization of low-temperature drying

In the past few years, many physical industries, including the home appliance industry, have been impacted by external factors. However, the more difficult it is, the more it can highlight the strength and responsibility of a company. Skyworth Group is a good example.

Zhaomi noticed that in the first half of 2023, Skyworth Group continued to maintain good growth: the overall revenue reached 32.3 billion yuan, a year-on-year increase of 33.0%; the gross profit was 4.198 billion yuan, a year-on-year increase of 8.2%. It can be said that in the harsh environment of the home appliance industry, Skyworth Group has handed in a beautiful performance. In Zhaomi’s view, the reason why Skyworth Group can maintain good revenue growth is inseparable from its two winning strategies:

During the reporting period, the revenue of Skyworth Group’s smart home appliance business was 14.164 billion yuan, a year-on-year increase of 9.0%. From the revenue, it can be seen that the smart home appliance business is still the main support for Skyworth Group’s revenue.

As of June 30, 2023, the CoolOpen system has covered more than 183 million smart terminals in the Chinese market. It also mentioned in its financial report that CoolOpen Technology has successively obtained investments from affiliated companies of iQiyi, Tencent, and Baidu. The high growth of CoolOpen Technology has not only brought stronger market competitiveness to Skyworth, but also helped Skyworth further build an integrated software and hardware ecological competitiveness.

In retrospect, the black appliances category in the home appliance industry has been under pressure since 2016. In the face of this pressure, Skyworth has adapted to changes.

As the home appliance industry enters the stock stage, more and more home appliance companies are expanding and exploring new growth possibilities based on home appliances. Currently, the layout of new energy has become the direction that most home appliance companies are aiming for, and Skyworth is naturally one of them.

According to Skyworth’s financial report for the first half of 2023, the revenue of Skyworth Group’s new energy business was 12.134 billion yuan, a significant increase of 7.924 billion yuan or 188.2% compared to the same period last year. It is worth mentioning that the revenue for the first half of this year has already exceeded the full-year revenue of 11.934 billion yuan in 2022.

As a home appliance giant with more than 30 years of development history, Skyworth still regards home appliances as the main direction of its strategic development compared to the new energy business, which is still in its early stages.

For example, in the TV sector, in the past two years, categories such as Mini LED TVs, large screens, and laser TVs have become popular in the industry. However, Skyworth has chosen to take a different path instead of following the trend. Through a deep understanding of consumer demand changes, it has created popular products with its own brand characteristics, such as wallpaper TVs. In addition, it has also developed the P60 Pro series products with the concept of health technology, which can monitor and analyze heart rate and blood oxygen level.

In addition, home appliances are also an important growth market for Skyworth. Based on the first half of the year, Skyworth has achieved impressive results in the smart appliance sector, mainly in air conditioners and washing machines. The company deeply understands consumer demands and has achieved a revenue of 2.825 billion RMB in the mainland China market, an increase of 1.33 billion RMB or 89.0% compared to the same period last year. The revenue in overseas markets reached 809 million RMB, an increase of 200 million RMB or 32.8% compared to the same period last year.

Meanwhile, Skyworth continues its reform in the home appliance sector. According to the semi-annual report, Skyworth has merged the multimedia business sector and the smart appliance business sector into the smart home appliance business sector. The aim is to integrate resources and achieve synergies among various smart home appliance companies.

It can be seen that Skyworth Group has been strategically laying out in the smart home appliance sector. In the first half of 2023, the revenue of Skyworth Group’s smart home appliance business reached 14.164 billion RMB, an increase of 9.0% compared to the same period last year.

However, it should be pointed out that among the home appliance giants such as Midea, Skyworth, and Haier, Skyworth still faces certain disadvantages in terms of revenue.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!