Under the fierce attack of foreign brands, the performance of domestic color TV companies in the first three quarters was not good. Faced with the dilemma of domestic brands, color TV companies have adjusted their strategies and focused on betting LED transformation, hoping to reverse the performance in the fourth quarter.
Domestic brands' three quarterly results are not good
Last Friday, TCL Group announced its third quarter earnings report. In the first three quarters, TCL achieved sales revenue of 35.348 billion yuan, an increase of 18.43% year-on-year, and a net profit of 195 million yuan, an increase of 27.43% over the same period last year. However, the TCL media, which is mainly engaged in color TV business, experienced huge losses, with a loss of HK$991 million. The financial report mentioned that in addition to the reasons for its own structural adjustment, fierce market competition and the elimination of old-fashioned TV inventory in China and European markets led to a decline in gross profit margin and business restructuring, which led to a loss in operating results.
The financial report is also not very good-looking. There are also Konka Group, which has already released the third quarterly report. In the first three quarters of this year, the revenue was 12.482 billion yuan, a year-on-year increase of 38.29%. The net profit was only 61.178 million yuan, a decrease of 42.63%. Konka said in the financial report that although the company vigorously promoted LED TV, the sales volume and sales of LED TV products increased significantly compared with the same period of last year, and the product structure was greatly improved, but it also had to follow the low-cost foreign capital, product gross profit margin. Was quickly pulled down, the comprehensive gross profit margin in the third quarter was only 15.17%.
Domestic color TV companies directly feel the pressure from foreign brands in different degrees, and believe that foreign brands rely on upstream resource advantages to impact the color TV market at low prices and grab market share of domestic brands. Li Dongsheng, chairman of TCL Group, believes that the deep reason for the domestic brands to fall behind in the domestic market this year is that the overall industrial capacity, product strength and foreign investment of LCD are obviously different. Among the global color TV brands, the market-leading enterprises have the upper end support. Capability and vertical integration capabilities, only to create a complete LCD industry chain, domestic color TV can win a real market advantage. He said that the long-term goal of TCL Multimedia is to integrate resources with the LCD upstream industry.
Betting LED hopes to turn the situation
Although external factors have dragged down performance, domestic color TV companies are also looking for reasons for their poor performance this year.
Li Dongsheng admits that the main reason for the loss of TCL multimedia lies in the slow layout of LEDs and the reduction of channel operation efficiency. He said that the fourth quarter of last year was too optimistic about this year's forecast, but in December there was a disconnect between shipments and plans. The plan should be revised in time to clean up excess inventory, but the specific action will not begin until May of this year. The price of the whole machine has been lowered, and the loss is relatively large. In addition, the operating mode of the enterprise has also undergone fundamental changes. From the original CRT color TV operation mode has become a mode of IT operation, mainly in the speed requirements are particularly fast. The inventory of the entire product must be controlled within 30 days in the future. "This year's multimedia performance is not directly related to this, and the turnover rate is not fast enough."
TCL has been adjusted. At present, the proportion of LEDs in LCD TV sales has increased to 18.9%. It is expected that this number will reach 20%-25% during the year. Konka, who once missed the LED transformation time point like TCL, is also quick-moving. He would rather abandon some of the temporary profits and also grab market share. Huang Xinzhong, general manager of the marketing department of Konka Multimedia Marketing Division, said that if the domestic color TV manufacturers do not transform to LED, It is staying in the CCFL LCD TV. The gross profit margin of the product will only be lower than now. At present, in the purchase agreement between Konka and the appliance store, the proportion of LED TV has exceeded 70%.
Domestic brands of color TV companies have high hopes for the next fourth quarter. Li Dongsheng revealed that after the personnel adjustment was basically completed, TCL's color TV business will undergo strategic adjustment in the fourth quarter, and continue to increase investment in Internet TV, LED-backlit LCD TV and 3D TV. "I hope that there will be obvious performance improvement in the fourth quarter. ". Yang Dongwen, vice president of Skyworth, is also optimistic about the fourth quarter. He believes that the madness of foreign-funded color TV brands is only a short-term market behavior. In a short period of time, it will put pressure on domestic brands and obtain corresponding market scale. At present, domestic brands have successfully transformed LED TVs, New Year’s Day and The Spring Festival has opportunities for domestic companies.
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