-Net profit stood at 553 million yuan (approx. US$82.3 million), gross profit 
margin increased to 18.7% while investment in R&D increased by 18%-


On March 29, Skyworth announced its performance report for the nine months 
ended December 31, 2018 (the "report period"). This is the company's first 
financial statement following the adjustment to the fiscal calendar. 

According to the financial statement, the group booked turnover amounting to 
30.192 billion yuan (approx. US$4.49 billion) for the period. The overall gross 
profit margin increased to 18.7 percent, while net profit stood at 553 million 
yuan (approx. US$82.3 million), an increase of 10.8 percent compared to 499 
million yuan (approx. US$74.3 million) for the same period of the previous 
year. 

The financial statement also included the unaudited financial results for the 
12 months between January 1 and December 31, 2018. The data showed that 
Skyworth delivered overall turnover amounting to 39.271 billion yuan (approx. 
US$5.84 billion) for the year, with a slight year-over-year increase of 0.1 
percent. Gross profit margin increased to 18.5 percent, up from 16.9 percent 
the previous year. The group generated double-digit growth in sales volume of 
TVs in mainland China. It invested 1.688 billion yuan (approx. US$251 million) 
by 18% growth comparing with last year in the R&D of various high-quality smart 
products to enhance competitiveness. Generally, the group has enhanced 
operational efficiency.

Looking back over the year, Skyworth adjusted its color TV product portfolio, 
introducing several differentiated products - the MAXTV and OLED series, which 
focus on user experience. In addition, the group moved its business focus to 
55-inch and larger-screen TVs. Meanwhile, the group strengthened cooperation 
with core customers in overseas markets, while consistently improving service 
and product competitiveness, driving a year-over-year increase in gross profit 
margin. The group sold 15.316 million TVs worldwide, serving more than 36 
million active smart TV viewers, with average daily active users exceeding 
13.65 million.  

The digital set-top boxes business also contributes significantly to the 
group's rise in gross profit margins by increasing the shipment proportion of 
high value-added products. At the same time, the group invested heavily in the 
research and development of new products series for the Android ecosystem and 
established strategic collaborations with Google, Netflix and other content 
providers.

During the period, revenues of smart electrical products reached 2.788 billion 
yuan (approx. US$415 million) in mainland China, increasing 2.2 percent compare 
with last year, while overseas revenues jumped 60.7 percent to 784 million yuan 
(approx. US$117 million).

The group currently maintains operations worldwide, including in mainland China 
and other regions across Asia, as well as in Africa, Europe and the United 
States. Among them, mainland China is the main business market, and the Middle 
East and Africa markets grew rapidly.

Benefiting from the Chinese government's favorable policies that support the 
development of an ultra-high definition-based video industry and the beginning 
of the first stage of the roll-out of the 5G era, Skyworth Group plans to 
accelerate the in-depth integration of hardware, software, systems, content and 
services, as well as strengthen the integration of the key supporting resources 
for the upstream and downstream of the industrial chain that form the essence 
of an intelligent household appliance industry ecosystem, while leading the 
household appliance industry into a new and important stage of growth and 
development.




SOURCE: Skyworth