On August 26, Skyworth Group Co., Ltd. (stock code: 00751. HK, hereinafter referred to as "Skyworth Group") released its interim results report for the six months ended June 30, 2022. According to the report, the overall turnover of Skyworth Group recorded RMB 24.284 billion, an increase of 7.6% over the same period last year; gross profit was RMB 3.879 billion, an increase of 3.6% over the same period last year; profit for the current period was RMB 631 million, an increase of 3.4% over the same period last year; Profit for the period attributable to equity holders of the Company was RMB 339 million. The board of directors recommends an interim dividend of 3 HK cents per share for 2022, representing a payout ratio of 20.3%.

As of June 30, 2022, the company's bank balances and cash amounted to RMB 9.823 billion and pledged and restricted bank deposits amounted to RMB 2.648 billion, showing a healthy financial position.

In the face of the complex external environment, Skyworth adheres to the innovation-driven development strategy, strives to grasp the development trends and opportunities of global economic digitization, intelligence, and low-carbonization, and continuously empowers traditional industries such as home appliances to improve product competitiveness, and accelerates the cultivation and expansion of digital New industries and new businesses such as the economy and new energy have accelerated industrial transformation and innovative development, and have achieved certain results.

First, smart TV systems, smart appliances and other businesses that have entered the stock market cycle, adhere to the consumer experience as the core, focus on the development of intelligent and high-quality products, and further enhance product competitiveness;

The second is to seize the opportunity of the vigorous development of digital technology and digital economy, give full play to the leading advantages of the industry, accelerate the development of intelligent system technology business, and further expand the business scale and product variety;

The third is to seize the historic opportunity of the global development of clean energy and the implementation of China's "3060 Dual-Carbon Strategy", accelerate the development of new energy businesses such as photovoltaics, and further strengthen its position as a leader in distributed photovoltaics.

The overall efficiency has been steadily improved, and the total turnover has increased by 7.6% year-on-year

In the first half of 2022, Skyworth Group will further strengthen the synergy of various businesses within the company, clarify the development direction, strengthen the company's development determination, standardize the company's development behavior, adhere to the path of professional development, accelerate the reform and transformation of the company, and achieve a balanced development of overall revenue. The overall benefit has steadily improved.

For the six months that ended June 30, 2022, the Group's overall turnover reached RMB 24.284 billion, an increase of 7.6% over the same period last year. Among them, the turnover in mainland China was approximately RMB 16.110 billion, an increase of 10.0% over the same period last year, and the turnover from overseas markets was RMB 8.174 billion, an increase of 3.1% over the same period last year.

However, due to the impact of the epidemic, the prices of raw materials for home appliance companies around the world have generally risen, squeezing the profit margins of the companies. The gross profit margin for the current period was 16.0%, down 0.6 percentage points from the same period last year. The Group has taken various measures to cope with challenges such as rising raw materials and industry competition, including strengthening sales price control, increasing the proportion of high-margin products and investing higher product research and development expenses to improve product quality, so as to improve the Group's pricing power and gross profit level.

New energy revenue exceeds last year's full-year level

During the reporting period, Skyworth Group's new energy business revenue recorded RMB 4.206 billion, a substantial increase of 407.4% over the same period last year. In the first half of the year alone, Skyworth Group's new energy business revenue increased by 105 million yuan compared with 4.101 billion yuan in 2021, further strengthening its position as a leader in distributed photovoltaics.

The group conforms to the general trend of the integrated development of modern energy, intelligent manufacturing and digital technology. Starting with household photovoltaics, it provides complete solutions for a series of links such as power station development, design, construction, operation, management, and consulting services. Energy Relying on the Internet of Things, build a whole-process asset development, construction, operation and management platform for distributed photovoltaic power plants.

During the current period, the total installed capacity of the Group's distributed photovoltaic power plants was still one of the industry leaders. The number of household photovoltaic power plants that have been in operation and connected to the grid for power generation increased by more than 50,000, and the cumulative number of household photovoltaic power plants connected to the grid has been completed. There are more than 100,000 photovoltaic power plants.