Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 53,491 million, representing a 5.0% increase from RMB 50,928 million in 2021[2] - Gross profit decreased by 4.0% to RMB 8,207 million compared to RMB 8,548 million in the previous year[2] - Net profit for the year was RMB 1,407 million, down 28.4% from RMB 1,965 million in 2021[2] - Profit attributable to equity holders of the company was RMB 827 million, a decline of 49.4% from RMB 1,634 million in the prior year[4] - Basic earnings per share decreased to 31.97 cents from 62.11 cents in 2021[4] - The company's operating profit before tax for 2022 was RMB 1,819 million, a decrease of 29% from RMB 2,552 million in 2021[7] - The group reported a pre-tax consolidated profit of RMB 1,819 million for the year ended December 31, 2022[27] - The overall gross margin for the group was 15.3%, down 1.5 percentage points from 16.8% in the previous year[68] Revenue Breakdown - The multimedia business generated RMB 23,080 million in revenue, while the smart systems technology business contributed RMB 11,933 million, and the new energy business accounted for RMB 11,934 million[21] - Revenue from customer contracts recognized at a point in time was RMB 51,538 million, while revenue recognized over time was RMB 1,351 million, indicating a strong reliance on point-in-time revenue recognition[21] - The smart home appliance segment generated RMB 4,569 million in revenue, with significant contributions from smart white goods and other smart appliances[21] - The multimedia business saw a decline in revenue from RMB 27,370 million in 2021 to RMB 23,080 million in 2022, a decrease of approximately 15.5%[22] - The smart systems technology business experienced a slight increase in revenue from RMB 10,911 million in 2021 to RMB 11,933 million in 2022, representing an increase of about 9.4%[22] - The new energy business reported a significant increase in revenue from RMB 4,101 million in 2021 to RMB 11,934 million in 2022, marking a growth of approximately 190%[22] - The group reported a total of RMB 52,889 million in revenue from customer contracts, highlighting the importance of these contracts to overall performance[21] Assets and Liabilities - Total assets increased to RMB 46,426 million in 2022 from RMB 45,050 million in 2021[5] - Total liabilities increased to RMB 35,527 million in 2022, up from RMB 31,325 million in 2021, reflecting a growth of approximately 13.9%[6] - The company's total assets minus current liabilities decreased to RMB 28,883 million in 2022 from RMB 29,556 million in 2021, a decline of about 2.3%[6] - The company's cash and cash equivalents at the end of 2022 were RMB 9,054 million, down from RMB 10,611 million at the end of 2021, a decrease of about 14.6%[9] - The company's trade payables amounted to RMB 8,650 million, a slight decrease from RMB 8,736 million in 2021[48] Investments and Expenditures - The net cash used in investing activities was RMB (5,051) million in 2022, compared to RMB (1,220) million in 2021, indicating a significant increase in investment outflows[8] - The company invested a total of RMB 1,402 million in expanding factories in Ningbo, Wuhan, Shenzhen, Guangzhou, and Qianhai during the reporting year[76] - An additional RMB 836 million was invested in acquiring other properties, plants, and equipment to enhance production capacity and efficiency[76] Research and Development - Research and development expenses were RMB 2,116 million, slightly up from RMB 2,097 million in 2021[3] - The company plans to enhance its research and development efforts in smart home appliances and internet value-added services to capture emerging market opportunities[10] - Research and development expenses increased to RMB 2,116 million, up RMB 19 million or 0.9% year-on-year, with an R&D expense ratio of 4.0%[69] Market and Strategic Focus - The company is focusing on digital technology and accelerating the development of smart system technology business[51] - The group aims to enhance product competitiveness and innovation through the development of new technologies, including 5G and AI applications[78] - The group is committed to achieving high-margin and high-value products to maintain market leadership in the smart home appliance sector[78] - The group plans to leverage its strengths in multimedia and digital technology to capitalize on opportunities in global economic digitalization and low-carbon initiatives[78] Corporate Governance and Compliance - The company has adhered to corporate governance codes to enhance transparency and accountability to shareholders[81] - The company adopted the revised Hong Kong Financial Reporting Standards (HKFRS) 16, which specifies that costs incurred to make property, plant, and equipment operational should be recognized in profit or loss[12] - The application of the revised standards did not have a significant impact on the company's financial performance or position for the current and prior years[12] Employee and Operational Metrics - As of December 31, 2022, the group had approximately 31,400 employees, a decrease from 34,000 employees as of December 31, 2021[77] - The company’s employee costs totaled RMB 4,869 million in 2022, up from RMB 4,696 million in 2021, indicating an increase of approximately 3.7%[36] Dividends and Shareholder Returns - The board did not recommend a final dividend for the year due to ongoing share buyback programs[2] - The company declared an interim dividend of RMB 69 million for 2022, compared to no interim dividend in 2021, while the final dividend for 2021 was RMB 497 million[37] - The company did not declare a final dividend for the year ending December 31, 2022, compared to a final dividend of HKD 0.23 per share in 2021[37] Cash Flow and Financial Position - The net cash generated from operating activities increased significantly to RMB 5,148 million in 2022, compared to RMB 1,244 million in 2021[7] - The company's cash and bank balances were RMB 9,054 million as of December 31, 2022, down from RMB 10,611 million on December 31, 2021, representing a decrease of RMB 1,557 million or 14.7%[70] - The total bank loans amounted to RMB 15,257 million as of December 31, 2022, an increase from RMB 14,262 million on December 31, 2021[71]

Financial Performance - Total revenue for the nine months ended September 30, 2022, was RMB 38,419 million, representing a 7.0% increase from RMB 35,891 million in the same period of 2021[2] - Gross profit for the same period was RMB 6,017 million, up 3.1% from RMB 5,838 million year-on-year[2] - Profit attributable to equity holders of the company decreased by 32.1% to RMB 518 million from RMB 763 million in the previous year[2] - Excluding the impact of fair value changes, profit attributable to equity holders increased by approximately 71.3% compared to the same period last year[2] - The company reported total comprehensive income of RMB 431 million for the period, down from RMB 1,328 million in the previous year[5] - Basic earnings per share for the period were RMB 19.92, compared to RMB 29.01 in the same period last year[5] - The overall gross margin for the nine months ended September 30, 2022, was 15.7%, a decrease of 0.6 percentage points from 16.3% in the same period last year[24] Revenue Breakdown - Revenue from the mainland China market was approximately RMB 25,681 million, an increase of RMB 2,371 million or 10.2% compared to RMB 23,310 million in the same period last year[11] - Revenue from overseas markets was RMB 12,738 million, accounting for 33.2% of total revenue, with a slight increase of RMB 157 million or 1.2% compared to RMB 12,581 million last year[12] - The multimedia business accounted for 35.5% of the mainland China market revenue, down from 50.4% in the previous year, while the new energy business increased to 30.5% from 9.4%[11] - The multimedia business revenue decreased to RMB 16,977 million, a decline of RMB 2,687 million or 13.7% from RMB 19,664 million in the same period last year[16] - The revenue from smart TV system products in the mainland China market for the nine months ended September 30, 2022, was RMB 6,980 million, a decrease of RMB 1,950 million or 21.8% compared to the same period last year[17] - The revenue from smart TV system products in overseas markets for the same period was RMB 6,137 million, down RMB 1,142 million or 15.7% year-on-year[18] - The revenue from the internet value-added services of the Cool Open system reached RMB 988 million, an increase of RMB 58 million or 6.2% compared to the previous year[19] - The smart system technology business in the mainland China market recorded revenue of RMB 5,168 million, an increase of RMB 276 million or 5.6% year-on-year[20] - The overseas revenue for the smart system technology business was RMB 3,818 million, an increase of RMB 1,045 million or 37.7% compared to the previous year[20] - The revenue from smart appliances in the mainland China market was RMB 2,449 million, an increase of RMB 348 million or 16.6% year-on-year[21] - The overseas revenue for smart appliances was RMB 924 million, a decrease of RMB 289 million or 23.8% compared to the previous year[21] - The revenue from the new energy business for the nine months ended September 30, 2022, reached RMB 7,821 million, an increase of RMB 5,631 million or 257.1% compared to RMB 2,190 million in the same period last year[22] Expenses and Cash Flow - Research and development expenses for the nine months were RMB 1,549 million, compared to RMB 1,475 million in the previous year[4] - Sales and distribution expenses for the nine months ended September 30, 2022, were RMB 2,538 million, a decrease of RMB 336 million or 11.7% from RMB 2,874 million in the same period last year[25] - The ratio of sales and distribution expenses to revenue for the nine months ended September 30, 2022, was 6.6%, a decrease of 1.4 percentage points from 8.0% in the same period last year[25] - The ratio of general and administrative expenses to revenue for the nine months ended September 30, 2022, was 2.9%, an increase of 0.3 percentage points from 2.6% in the same period last year[25] - The net cash flow from operating activities for the nine months ended September 30, 2022, was RMB 2,975 million, compared to a cash outflow of RMB 518 million in the previous year[8] - The cash and cash equivalents at the end of the period were RMB 9,203 million, compared to RMB 9,056 million at the end of the same period last year[9] Strategic Initiatives - The company plans to utilize cash for share buybacks under suitable market conditions[1] - The company plans to implement a five-year strategic transformation plan focusing on multimedia, smart system technology, smart appliances, new energy, and modern service industries[15] - The company plans to shift its sales strategy towards high-end TV products like OLED to improve market share amid ongoing competition and pandemic impacts[17] - The company has successfully expanded its e-commerce business to mitigate the negative impacts of the pandemic on offline sales channels[18] - The company aims to leverage strategic partnerships with internet giants to accelerate the development of its smart home and smart city businesses[19] - The company aims to develop a one-stop solution provider model integrating finance, installation, and after-sales services in the photovoltaic sector[22] - The company continues to enhance supply chain management and strategic cooperation with key suppliers in the modern service industry[23] - The company aims to leverage opportunities in global economic digitalization, focusing on green building and smart system development to enhance user experience and promote green economic growth[26] - The company plans to develop new products using "5G+AI+end devices" technology to improve product competitiveness and expand into the smart home system market[26] Operational Resilience - The company has implemented strict internal pandemic prevention measures to minimize operational risks, ensuring no production stoppages or shipment delays occurred during the reporting period[26] - The company is closely monitoring market uncertainties, including interest rate hikes in major economies, geopolitical tensions, and rising transportation costs, to make objective adjustments to its operational plans[26] Share Repurchase - The company repurchased shares amounting to RMB 345 million during the nine months ended September 30, 2022[8] - The company has completed the repurchase of all company notes, which were subsequently canceled, leading to the cessation of quarterly financial disclosures for its subsidiary starting January 1, 2023[27] Asset Management - Non-current assets as of September 30, 2022, totaled RMB 17,680 million, an increase from RMB 15,831 million as of December 31, 2021[6] - Current assets included trade receivables of RMB 10,348 million, down from RMB 12,142 million in the previous year[6]

Financial Performance - For the six-month period ending June 30, 2022, the operating revenue was RMB 24,284 million, an increase from RMB 22,567 million in the same period of 2021, representing a growth of approximately 7.6%[8] - The net profit for the period was RMB 631 million, compared to RMB 610 million in the previous year, reflecting a growth of about 3.4%[8] - The overall revenue for the six months ended June 30, 2022, was RMB 24,284 million, representing a 7.6% increase from RMB 22,567 million in the same period last year[13] - Total revenue for the six months ended June 30, 2022, was RMB 24,284 million, an increase of 7.6% from RMB 22,567 million in 2021[64] - Total revenue for the multimedia business reached RMB 10,626 million, while the smart systems technology business generated RMB 4,599 million, and the smart appliance business contributed RMB 2,200 million[85] - The new energy business reported revenue of RMB 829 million, with modern services and other businesses generating RMB 2,113 million, leading to a total revenue of RMB 22,567 million for the reporting period[85] Profitability Metrics - The gross profit margin decreased to 16.0%, down from 16.6% year-on-year, a decline of 0.6 percentage points[8] - The operating profit margin was 4.4%, a decrease from 4.7% in the previous year, representing a decline of 0.3 percentage points[8] - The return on equity for the company was 3.8%, down from 4.9% in the previous year, a decrease of 1.1 percentage points[8] - Basic earnings per share decreased to RMB 12.98 from RMB 15.54, a decline of 16.5% year-over-year[67] - Total comprehensive income for the period was RMB 270 million, significantly lower than RMB 1,053 million in 2021, a decrease of 74.3%[67] Cash Flow and Liquidity - Cash and cash equivalents increased significantly to RMB 12,471 million, up 35.5% from RMB 9,242 million in the prior year[8] - The company’s cash and cash equivalents stood at RMB 9,823 million, providing a strong liquidity position[70] - For the six months ended June 30, 2022, the net cash generated from operating activities was RMB 2,049 million[75] - The group’s cash and bank balances were RMB 9,823 million as of June 30, 2022, down RMB 788 million or 7.4% from RMB 10,611 million on December 31, 2021[48] Debt and Liabilities - The net debt to equity ratio improved to 71.7%, down from 77.3% year-on-year, a reduction of 5.6 percentage points[8] - Total bank loans reached RMB 14,505 million as of June 30, 2022, an increase from RMB 14,262 million on December 31, 2021[48] - The overall interest-bearing liabilities totaled RMB 15,407 million, a decrease from RMB 16,145 million on December 31, 2021, resulting in a debt-to-equity ratio of 71.7% compared to 76.6% previously[48] - Current liabilities amounted to RMB 33,378 million, indicating a slight increase from the previous year[71] Market Performance - The company's market capitalization was HKD 10,193 million as of the reporting date, with 2,627 million shares issued[8] - Sales volume of smart TV systems in the Chinese market decreased by 14.3% to 2,469 thousand units compared to 2,881 thousand units in the same period last year[14] - Revenue from the mainland China market was approximately RMB 16,101 million, an increase of RMB 1,469 million or 10.0% from RMB 14,641 million in the same period last year[17] - Revenue from overseas markets was RMB 8,174 million, accounting for 33.7% of total revenue, with a growth of RMB 248 million or 3.1% compared to RMB 7,926 million in the same period last year[17] Strategic Initiatives - The company plans to focus on high-end TV products like OLED to improve market share in response to competitive pressures and the impact of COVID-19[25] - The company aims to accelerate the development of smart systems and new energy businesses as part of its strategic transformation over the next five years[22] - The company has established an advanced R&D center in Nanjing to enhance its research capabilities and increase market share in smart appliances[34] - The company plans to continue developing household photovoltaic business while gradually expanding into commercial photovoltaic and comprehensive smart energy management[37] Research and Development - Research and development expenses were RMB 1,001 million for the six months ended June 30, 2022, an increase of RMB 21 million or 2.1% from RMB 980 million in the same period last year[47] - The company aims to enhance its brand value in the smart home appliance market by leveraging core patented technologies and expanding online and offline sales channels[37] Dividends - The company declared an interim dividend of HKD 0.03 per share, compared to HKD 0.0144 per share in the previous year, indicating a significant increase[12] - The board proposed an interim dividend of HKD 0.03 per share, totaling approximately RMB 69 million, compared to no dividend for the same period in 2021[170] Employment and Workforce - The workforce decreased to approximately 29,500 employees as of June 30, 2022, down from 34,000 employees at the end of 2021[59] Investments and Assets - The group reported a total asset value of RMB 44,230 million as of June 30, 2022, compared to RMB 43,000 million at the end of 2021[70] - The group held investments in 50 unlisted companies valued at RMB 2,797 million as of June 30, 2022, including a 10% stake in a company focused on manufacturing flat panel displays[50] Other Financial Metrics - The company incurred a net cash outflow from investing activities of RMB 1,876 million during the period[75] - The company reported a profit of RMB 409 million for the period, which is a decrease from RMB 610 million in the previous year[72] - The total tax expense for the period was RMB 198 million, compared to RMB 202 million in the same period last year[100]

Financial Performance - Total revenue for the three months ended March 31, 2022, was RMB 10,890 million, representing a 9.5% increase from RMB 9,943 million in the same period last year[2] - Gross profit for the same period was RMB 1,787 million, up 5.9% from RMB 1,687 million year-on-year[2] - Net profit for the period decreased by 40.1% to RMB 170 million, compared to RMB 284 million in the previous year[2] - Profit attributable to equity holders of the company was RMB 69 million, down 59.4% from RMB 170 million in the same period last year[2] - The company reported a basic earnings per share of RMB 2.63, down from RMB 6.45 in the same period last year[5] - The overall gross margin for the three months ended March 31, 2022, was 16.4%, a decrease of 0.6 percentage points from 17.0% in the same period last year[26] - The net loss from other income and expenses was RMB 256 million, a decrease of RMB 415 million compared to a net income of RMB 159 million in the same period last year[27] Revenue Breakdown - Revenue from the mainland China market was RMB 7,361 million, an increase of RMB 1,114 million or 17.8% from RMB 6,247 million in the same period last year[11] - Multimedia business revenue in the three months ended March 31, 2022, was RMB 5,184 million, a decrease of RMB 969 million or 15.7% from RMB 6,153 million in the same period last year[15] - The sales revenue of smart TV systems in the mainland China market was RMB 2,252 million, a decrease of RMB 535 million or 19.2% from RMB 2,787 million in the same period last year[16] - Revenue from overseas markets was RMB 3,529 million, accounting for 32.4% of total revenue, a decrease of RMB 167 million or 4.5% from RMB 3,696 million in the same period last year[12] - The revenue from the smart TV system products in overseas markets for the three months ended March 31, 2022, was RMB 1,659 million, a decrease of RMB 603 million or 26.7% compared to RMB 2,262 million in the same period last year[17] - The revenue from the Cool Open System's internet value-added services was RMB 370 million, a decrease of RMB 6 million or 1.6% compared to RMB 376 million in the same period last year[19] - The smart system technology business recorded revenue of RMB 2,750 million, an increase of RMB 490 million or 21.7% compared to RMB 2,260 million in the same period last year[20] - The smart appliance business generated revenue of RMB 991 million, an increase of RMB 30 million or 3.1% compared to RMB 961 million in the same period last year[21] - The new energy business revenue was RMB 1,516 million, a significant increase of RMB 1,361 million or 878.1% compared to RMB 155 million in the same period last year[23] Expenses and Costs - Research and development expenses for the three months were RMB 465 million, slightly down from RMB 492 million in the previous year[4] - Sales and distribution expenses for the three months ended March 31, 2022, were RMB 750 million, a decrease of RMB 139 million or 15.6% compared to RMB 889 million in the same period last year[28] - General and administrative expenses increased to RMB 351 million, up RMB 46 million or 15.1% from RMB 305 million year-on-year[28] - The R&D expenses as a percentage of revenue were 4.3%, down 0.6 percentage points from 4.9% in the same period last year[28] Assets and Liabilities - Total assets as of March 31, 2022, amounted to RMB 45,354 million, compared to RMB 45,050 million as of December 31, 2021[6] - Total assets less current liabilities amounted to RMB 28,682 million as of March 31, 2022, down from RMB 29,556 million as of December 31, 2021[7] - The company's net asset value was RMB 20,908 million as of March 31, 2022, slightly down from RMB 21,086 million as of December 31, 2021[7] Market and Strategic Focus - The company plans to focus on high-end TV products like OLED to improve market share in response to competitive pressures and the impact of COVID-19 variants[16] - The company aims to accelerate transformation in 2022, focusing on smart, refined, and international strategies across five business segments[29] - The company plans to expand into overseas markets, particularly in India, Southeast Asia, Africa, and continue developing in Europe and Latin America[29] - The company is committed to developing smart system control center products and promoting green building initiatives[29] - The company plans to continue expanding its smart appliance business and enhance its R&D capabilities through an independent listing on the Shenzhen Stock Exchange[22] - The company aims to develop a comprehensive new energy strategy, focusing on household photovoltaic systems and gradually expanding into commercial photovoltaic and smart energy management[23] Operational Challenges - The ongoing COVID-19 pandemic and its variants continue to pose uncertainties for the business environment, although no significant financial difficulties have been reported to date[30] - The sales volume in overseas markets decreased by 18.9% due to the severe impact of the COVID-19 pandemic and high shipping costs[18] - The total sales volume of smart TV systems was 2,781 thousand units, a decrease of 18.3% compared to 3,404 thousand units in the same period last year[10] Corporate Governance - The board has approved a share buyback plan, subject to suitable market conditions[2] - The company expresses gratitude to shareholders and business partners for their continued support and acknowledges the efforts of management and staff[31]

Financial Performance - Revenue for 2021 reached RMB 50,928 million, an increase of 27.0% compared to RMB 40,093 million in 2020[3] - Operating profit before interest and tax was RMB 3,013 million, up 15.0% from RMB 2,620 million in the previous year[3] - Net profit for the year was RMB 1,965 million, reflecting a growth of 7.1% from RMB 1,835 million in 2020[3] - The overall revenue for the fiscal year ending December 31, 2021, was RMB 50,928 million, representing a 27.0% increase from RMB 40,093 million in the previous year[38] - The gross profit margin for the fiscal year was 16.8%, a decrease of 1.1 percentage points compared to the previous year[40] - Sales volume of smart TV systems decreased by 18.0% to 13,977 thousand units, down from 17,048 thousand units in the previous year[41] - Revenue from the mainland China market was RMB 33,220 million, an increase of RMB 8,637 million or 35.1% from RMB 24,583 million in the previous year[44] - Revenue from overseas markets was RMB 17,708 million, accounting for 34.8% of total revenue, with a 14.2% increase from RMB 15,510 million in the previous year[45] - The multimedia business revenue was RMB 27,370 million, an increase of RMB 2,903 million or 11.9% from RMB 24,467 million in the previous year[50] - The smart appliance business recorded revenue of RMB 4,375 million for the year ended December 31, 2021, an increase of RMB 157 million or 3.7% compared to the previous year[64] - The group's new energy business revenue surged to RMB 4,101 million, a significant increase of RMB 3,997 million or 3,843.3% compared to the previous year[69] - The modern service industry business achieved revenue of RMB 3,932 million, an increase of RMB 1,452 million or 58.5% year-on-year[71] Market Expansion and Strategy - The company is actively expanding both domestic and international markets, with a focus on establishing a presence in Africa, ASEAN, Europe, and India[19] - The company aims to enhance its international strategy and expand overseas business to mitigate the impacts of COVID-19[39] - The company plans to spin off Skyworth Electric Co., Ltd. for independent listing on the A-share market, with the application materials accepted by the Shenzhen Stock Exchange[9] - The company aims to achieve a revenue target of RMB 100 billion by 2024 as part of its three-year development plan[16] - The company is focusing on transforming its business model towards modern service industries and software, leveraging new technologies and materials[39] - The company is exploring financial technology services by collaborating with financial institutions to enhance user experience and service capabilities on its OTT platform[87] - The company is considering strategic acquisitions to enhance its product portfolio and market presence, with a budget of up to HKD 1 billion allocated for potential deals[123] - Market expansion efforts include entering three new international markets, aiming for a 25% increase in overseas sales[123] Research and Development - The company added 1,457 new patents in 2021, bringing the total to 11,065 patents, enhancing product competitiveness[10] - The company emphasizes the importance of talent management and aims to strengthen its high-quality talent pool to improve research and development capabilities[27] - The group continues to invest heavily in R&D to enhance competitiveness, which has led to increased R&D expenses despite a decrease in the R&D expense to revenue ratio[76] - The company is investing HKD 500 million in research and development for new technologies in the upcoming year[123] - The group aims to enhance its research and development capabilities by constructing an advanced R&D center in Nanjing Industrial Park[64] Corporate Governance and Management - The management team is committed to improving corporate governance and investor relations, reflecting a strong focus on transparency and accountability[114] - The company has a diverse board with members holding significant shares, ensuring alignment with shareholder interests[104][105][109][113][116] - The board of directors remains committed to maintaining strong corporate governance and transparency in financial reporting[123] - The company has implemented strict quality control measures and conducts regular market surveys to improve product quality and customer satisfaction[151] Financial Position and Investments - The company’s cash position improved by 29.4%, reaching RMB 12,739 million compared to RMB 9,841 million in 2020[3] - The company’s net debt to equity ratio rose to 76.6%, up from 69.6% in 2020, indicating increased leverage[3] - Net current assets as of December 31, 2021, were RMB 13,725 million, an increase of RMB 2,208 million or 19.2% from RMB 11,517 million as of December 31, 2020[78] - Cash and bank balances increased to RMB 10,611 million, up RMB 2,397 million or 29.2% from RMB 8,214 million as of December 31, 2020[78] - Total bank loans amounted to RMB 14,262 million as of December 31, 2021, compared to RMB 11,387 million as of December 31, 2020[80] - The overall interest-bearing liabilities totaled RMB 16,145 million, an increase from RMB 13,224 million as of December 31, 2020, with a debt-to-equity ratio of 76.6%, up from 69.6%[80] - The company held investments in 40 unlisted companies valued at RMB 2,292.4 million as of December 31, 2021[82] - The company has made four equity investments in listed companies on the Hong Kong Stock Exchange, Shanghai Stock Exchange, or Shenzhen Stock Exchange, focusing on emerging industries such as semiconductors and new materials, which are expected to yield significant equity appreciation[88] Employee and Social Responsibility - The company expresses gratitude to its employees, shareholders, and partners for their support and contributions, aiming for greater success and shareholder returns in the coming year[28] - The company emphasizes the importance of employees as key drivers of business growth and provides various training programs to enhance their skills and awareness of environmental issues[150] - The company is committed to long-term environmental sustainability and has established a corporate social responsibility policy focusing on four main areas: work environment, environment, operational practices, and society[146] Product Development and Innovation - The company is accelerating the development of its photovoltaic business, focusing on distributed photovoltaic systems and exploring new business opportunities in energy storage and operation[21] - The introduction of Mini-LED technology provides a 25% energy saving and enhances user experience with superior picture quality[52] - The development of ultra-wideband antennas improved Wi-Fi connection stability by over 30%[52] - The group launched several flagship products, including the 8K OLED TV W92 and the world's first bendable OLED TV W82, enhancing its product lineup[52] - The company plans to leverage new technologies such as 5G, AI, and big data to launch new products including 5G+8K TVs and smart appliances, aiming to enhance product competitiveness and maintain performance in 2021[95] Shareholder Returns and Dividends - The company reported a final dividend of HKD 0.23 per share, totaling approximately RMB 497 million, compared to no dividend in 2020[144] - The company has adopted a dividend policy that allows for the declaration of dividends based on distributable profits, cash flow, and financial condition[145]

Financial Performance - Revenue for the year ended December 31, 2020, was RMB 40,093 million, representing a 7.6% increase from RMB 37,277 million in 2019[6] - Operating profit (before interest and tax) increased by 28.6% to RMB 2,620 million from RMB 2,037 million in the previous year[6] - Net profit for the period rose by 78.0% to RMB 1,835 million compared to RMB 1,031 million in 2019[6] - Cash position increased by 61.3% to RMB 9,841 million from RMB 6,102 million in 2019[6] - The gross profit margin decreased by 2.2 percentage points to 17.9% from 20.1% in the previous year[6] - The company’s net debt to equity ratio increased to 69.6% from 61.4% in 2019, reflecting a rise of 8.2 percentage points[6] - The company’s market capitalization decreased by 16.3% to HKD 5,763 million from HKD 6,887 million in 2019[6] - Overall gross margin for the group decreased to 17.9%, down 2.2 percentage points from 20.1% in the previous year[61] - Selling and distribution expenses were RMB 3,477 million, a decrease of RMB 280 million or 7.5% compared to the previous year[62] - General and administrative expenses increased to RMB 1,415 million, up RMB 401 million or 39.5% year-over-year[62] - Research and development expenses were RMB 1,865 million, an increase of RMB 22 million or 1.2% compared to the previous year[62] Revenue Breakdown - Revenue from the domestic market was RMB 24,583 million, a decrease of RMB 1,423 million or 5.5% from RMB 26,006 million in the previous year[35] - Revenue from overseas markets was RMB 15,510 million, an increase of RMB 4,239 million or 37.6% from RMB 11,271 million in the previous year[36] - Multimedia business accounted for 59.1% of the revenue in the domestic market, while smart system technology business accounted for 21.1%[35] - Revenue from smart TV systems in the mainland China market was RMB 12,223 million, a decrease of RMB 1,425 million or 10.4% year-on-year[41] - The overseas market for smart TV systems generated revenue of RMB 8,302 million, an increase of RMB 2,395 million or 40.5% compared to the previous year[45] - Smart appliances revenue in mainland China for the year ended December 31, 2020, was RMB 2,868 million, a decrease of RMB 209 million or 6.8% compared to the previous year[54] - Overseas revenue for smart appliances reached RMB 1,350 million, an increase of RMB 132 million or 10.8% year-over-year[54] - Modern services revenue in mainland China was RMB 1,961 million, an increase of RMB 131 million or 7.2% compared to the previous year[57] - Overseas revenue for modern services was RMB 519 million, a significant increase of RMB 497 million or 2,259.1% year-over-year[57] Strategic Initiatives - The company approved 17 major R&D projects with a total investment of RMB 1.86 billion, achieving a new product output rate of 32.3%[11] - The company completed the development of Mini-LED TVs and launched new products including AI entertainment TVs and 4K monitors[11] - The company plans to focus on the "5G+AI+terminal" technology development strategy, accelerating the upgrade of technology and product iterations[20] - The company aims to enhance its market competitiveness by leveraging new technologies and materials to create new product functionalities and experiences[21] - The company anticipates significant potential in the domestic high-end and rural appliance markets in 2021[18] - The company expects pressure on export business profitability due to fluctuations in the RMB exchange rate and rising raw material prices[18] - The company is committed to improving supply chain management and strategic cooperation with suppliers to reduce procurement costs[17] - The company is focused on expanding its industrial park construction to adjust its industrial and asset structure amid a complex global environment[25] - The company aims to expand its overseas business by leveraging supply chain advantages and focusing on markets like India, ASEAN, and Africa[30] - The company plans to introduce high-end and customized new products to meet the demands of urban high-end customers[30] - The company is committed to enhancing internal business collaboration and clarifying development directions to improve overall efficiency[30] - The strategic plan includes a focus on four major business segments: multimedia, smart system technology, smart appliances, and modern services[39] Investments and Acquisitions - The company successfully completed the acquisition of Tianjin Yitong Pump Industry and initiated the IPO process for Shenzhen Cool Open[14] - The company has established two venture capital funds to support innovation and investment initiatives[14] - The group held investments in 46 unlisted companies valued at RMB 2,224 million as of December 31, 2020, with RMB 1,085 million representing a 10% stake in a company involved in manufacturing and selling electronic components[68] - Total capital expenditure for expanding production facilities in Ningbo, Nanjing, Guangzhou, and Qianhai was RMB 958 million, with an additional RMB 769 million invested in machinery and equipment[74] - The group plans to continue investing in property, factory, and office construction to enhance production capacity and operational efficiency[74] Corporate Governance and Management - The company has a diverse board with members holding significant experience in finance, law, and technology sectors[104][106] - The management team is focused on enhancing corporate governance and investor relations to improve overall company performance[98] - The company continues to expand its market presence through strategic appointments and leveraging the expertise of its board members[97][104] - The company reported a comprehensive financial statement for the year ending December 31, 2020, highlighting its performance and financial position[125] - The company faced significant risks and uncertainties during the reporting year, which are discussed in detail in the chairman's report and management discussion sections[127] Employee and Social Responsibility - The group maintained approximately 36,000 employees as of December 31, 2020, consistent with the previous year, and emphasized employee training and welfare[76] - The company has established a corporate social responsibility policy focusing on environmental sustainability and operational practices[130] - The company emphasizes the importance of employee training programs to enhance skills and awareness of environmental issues[134] - The company made charitable donations totaling approximately RMB 1.7 million in the reporting year, compared to RMB 1.4 million in 2019[154] Shareholder Information - As of December 31, 2020, the company's distributable reserves amounted to approximately RMB 2,398 million, an increase from RMB 1,525 million in 2019[148] - The company did not recommend a final dividend for the year ending December 31, 2020, consistent with the previous year[128] - The total number of issued shares was 2,668,129,420[173] - The company has a total of 1,063,361,320 shares issued as of December 31, 2020[175] - The company repurchased a total of 392,800,000 shares at a price of HKD 2.8 per share, totaling approximately HKD 1,099.84 million[151]

Revenue and Profitability - The group's revenue for the period was RMB 15,979 million, a decrease of 7.3% compared to RMB 17,230 million in the same period last year, with 65.1% of sales coming from the mainland China market[11] - Gross profit reached RMB 3,086 million, with a gross margin of 19.3%, down from 19.7% in the previous year[11] - The profit attributable to equity holders for the period was RMB 573 million, representing a 64.7% increase from RMB 348 million in the same period last year[11] - The overall revenue for the six months ended June 30, 2020, was RMB 15,979 million, a decrease of 7.3% compared to RMB 17,230 million for the same period in 2019[12] - Revenue from customer contracts amounted to RMB 15,765 million, with multimedia business contributing RMB 9,394 million and smart systems technology business contributing RMB 3,777 million[57] - The company reported a pre-tax consolidated profit of RMB 755 million for the six months ended June 30, 2020[64] - The company’s net profit for the six months ended June 30, 2020, was RMB 1,387 million, a slight decrease of 3.1% from RMB 1,432 million in the same period of 2019[74] Cash Flow and Financial Position - Net cash inflow from operating activities was RMB 2,055 million, an increase of 40.6% from RMB 1,462 million in the same period last year[8] - Total cash position, including restricted bank deposits and cash, was RMB 7,901 million, up 67.2% from RMB 4,726 million last year[8] - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 2,055 million, an increase of 40.7% compared to RMB 1,462 million for the same period in 2019[45] - The company reported a net cash outflow from investing activities of RMB 188 million for the six months ended June 30, 2020, compared to RMB 1,187 million for the same period in 2019, indicating improved cash management[46] - The net cash inflow from financing activities was RMB 1,950 million for the six months ended June 30, 2020, compared to RMB 948 million for the same period in 2019, reflecting increased borrowing activities[46] - The total cash and cash equivalents at the end of the period were RMB 6,827 million, up from RMB 4,265 million at the end of the same period in 2019[46] Debt and Equity - The debt-to-equity ratio improved to 63.9%, up from 54.3% in the previous year[8] - The total bank loans as of June 30, 2020, were RMB 7,849 million, a decrease from RMB 8,177 million as of December 31, 2019, while the total interest-bearing liabilities amounted to RMB 11,636 million, up from RMB 11,133 million[31] - The debt-to-equity ratio as of June 30, 2020, was 63.9%, an increase from 61.4% as of December 31, 2019[31] - The company issued secured corporate bonds amounting to RMB 2,000 million on September 15, 2017, with an annual interest rate of 5.36% and a maturity date of September 14, 2022[100] Market Performance and Strategy - The multimedia business and smart system technology business accounted for 58.8% and 23.8% of total revenue, respectively, compared to 59.1% and 24.9% in the same period last year[11] - The company plans to adjust sales strategies and pricing to improve market share in response to the impact of COVID-19 and intense market competition[19] - The company is actively adjusting its product and business structure in response to the ongoing COVID-19 pandemic, aiming to enhance product quality and reduce operational costs[39] - The company is focusing on developing 5G application products and expanding overseas markets, particularly in Southeast Asia, India, and Africa[38] Expenses and Cost Management - Sales and distribution expenses amounted to RMB 1,495 million, a decrease of RMB 343 million or 18.7% compared to RMB 1,838 million in the same period last year, with a sales and distribution expense to revenue ratio of 9.4%, down 1.3 percentage points from 10.7%[28] - General and administrative expenses increased to RMB 587 million, up RMB 169 million or 40.4% from RMB 418 million in the same period last year, with a ratio of 3.7%, an increase of 1.3 percentage points from 2.4%[28] - Research and development expenses were RMB 814 million, a decrease of RMB 94 million or 10.4% from RMB 908 million in the same period last year, with a ratio of 5.1%, down 0.2 percentage points from 5.3%[28] Investments and Acquisitions - The company has established a financial services platform to broaden financing channels, including venture capital and micro-loans[26] - The company acquired a 34% equity interest in Beijing Skyworth Digital Technology Co., Ltd. from a non-controlling shareholder for RMB 10 million[44] - The company plans to continue expanding its smart appliance product line and enhance its internet value-added services through the Cool Open System[61] - The group sold 90% of its subsidiary, Guangzhou Skyworth Electronics, for RMB 574 million, resulting in a gain of RMB 151 million from the sale[131][133] Corporate Governance and Compliance - The company’s financial statements were reviewed by Deloitte, and no significant issues were found regarding compliance with Hong Kong Accounting Standards[145] - The company has maintained compliance with the Corporate Governance Code, except for one independent non-executive director's absence from the annual general meeting due to other commitments[176] - The board is committed to maintaining high standards of corporate governance and transparency to enhance shareholder value[183] Employee and Shareholder Information - The company has approximately 33,000 employees as of June 30, 2020, down from 36,000 as of December 31, 2019, indicating a reduction of about 8.3%[37] - The company announced a conditional cash offer to repurchase up to 392,800,000 shares at HKD 2.80 per share, representing approximately 12.83% of the issued shares as of the announcement date[190] - As of June 30, 2020, the company’s directors held a total of 1,238,258,799 shares, representing approximately 40.45% of the issued shares[148]

Financial Performance - For the year ended December 31, 2019, SKYWORTH reported a revenue of RMB 37.277 billion, representing a year-on-year increase of 23.5%[3] - The net profit attributable to shareholders for the same period was RMB 1.031 billion, reflecting an increase of 86.4% compared to the previous year[3] - The company achieved a gross profit margin of 20.1%, up 1.4 percentage points from the previous year[3] - The overall revenue for the group for the twelve months ended December 31, 2019, was RMB 37,277 million, a decrease of RMB 1,701 million or 4.4% compared to the previous year[17] - Gross profit increased to RMB 7,502 million, reflecting a growth of 4.3% from RMB 7,194 million in the previous year, with a gross margin of 20.1%[16] - The net profit for the year was RMB 1,031 million, representing a 22.9% increase from RMB 839 million in the previous year[16] - The company reported a total comprehensive income of RMB 935 million for the year, recovering from a loss of RMB 1,078 million in the previous year[199] - Basic earnings per share increased to RMB 24.61 from RMB 13.85, marking an increase of 77.5%[199] Research and Development - The company invested nearly RMB 1.9 billion in research and development throughout 2019[6] - Research and development expenses increased by 9.2% to RMB 1,843 million, up from RMB 1,688 million in 2018[16] - Research and development expenses for the year were RMB 1,843 million, compared to RMB 1,327 million in the previous year, showing an increase of 38.8%[198] - The group has applied for a total of 1,164 patents, with several research achievements receiving provincial and municipal awards[7] Market Performance - The number of users for Shenzhen Coolpad reached 42.39 million, with monthly active users at 28 million[6] - Revenue from the mainland China market was approximately RMB 26,006 million, a decrease of RMB 2,230 million or 7.9% compared to the previous year[20] - Revenue from overseas markets was RMB 11,271 million, an increase of RMB 529 million or 4.9% compared to the previous year, accounting for 30.2% of total revenue[21] - The multimedia business revenue recorded RMB 21,505 million, a decrease of RMB 3,290 million or 13.3% compared to the previous year[24] - The group achieved a market share of 39.6% in the OLED market in mainland China, ranking first among domestic brands[27] Product Development and Innovation - The company launched several new products, including the 8K+Alot+5G smart TV and 8K+OLED TV, with new product revenue accounting for over 50%[6] - The group launched nine new OLED TV models using industry-leading technology, enhancing its competitive position in the market[27] - The company is focusing on enhancing product capabilities and consumer experience through the development of new technologies such as the Hummingbird AI chip and SOBiF technology[27] Strategic Initiatives - The company aims for a revenue target of RMB 100 billion, focusing on investment, innovation, and reform in 2020[9] - The company has strategically abandoned some low-margin international projects to focus on emerging consumer markets and optimize sales structure[28] - The company is committed to transforming from manufacturing to modern service industries, enhancing operational efficiency and production capacity[36] - The company is actively promoting the development of smart home systems and plans to increase support for research and development in this area[32] Corporate Governance - The company has a diverse board with members having extensive experience in finance, law, and technology sectors[59][60] - The management team is focused on enhancing corporate governance and investor relations[57] - The company emphasizes the importance of scientific decision-making and strengthening management oversight to enhance operational effectiveness[49] - The company has adopted a board diversity policy to ensure a balanced mix of skills, experience, and perspectives[132] Financial Management - The total bank loans amounted to RMB 8,177 million as of December 31, 2019, an increase from RMB 6,324 million as of December 31, 2018[41] - The overall interest-bearing liabilities totaled RMB 11,133 million as of December 31, 2019, compared to RMB 8,350 million as of December 31, 2018, resulting in a debt-to-equity ratio of 61.4%[41] - The company issued secured corporate bonds with a principal value of RMB 2,000 million at an annual interest rate of 5.36%, aimed at adjusting the debt structure and supplementing general working capital[82] Social Responsibility and Sustainability - The group has established a corporate social responsibility policy focusing on four main areas: work environment, environment, operational practices, and society[71] - The group has implemented various energy efficiency strategies, including the use of energy-saving machines and the installation of eco-friendly lighting systems[71] - The company made charitable donations totaling approximately RMB 1.4 million during the reporting year[86] Challenges and Outlook - The company has faced challenges due to COVID-19 but is optimistic about the recovery of its financial performance in 2020[51] - The company is conducting impairment reviews and expected credit loss assessments due to potential adverse impacts from COVID-19 on receivables and inventory recoverability[51] - The company is focusing on structural adjustments in product, asset, debt, talent, and distribution to drive innovation and sustainable development[49]

Financial Performance - The company's revenue for the six months ended June 30, 2019, was RMB 17,230 million, a decrease of 8.0% compared to RMB 18,722 million for the same period last year[5]. - The gross profit margin improved to 19.7%, up from 18.0% in the previous year, with a gross profit amounting to RMB 3,387 million[5]. - The net profit attributable to equity holders for the current period was RMB 348 million, representing an increase of 28.4% from RMB 271 million in the prior period[5]. - The group's total revenue for the six months ended June 30, 2019, was RMB 17,230 million, a slight decrease of 0.7% compared to RMB 17,351 million for the same period in 2018[9]. - Gross profit for the same period was RMB 3,387 million, representing a 13.1% increase from RMB 2,996 million year-on-year[8]. - The pre-tax profit increased by 46.0% to RMB 562 million, compared to RMB 385 million in the same period last year[8]. - Net profit for the period was RMB 348 million, reflecting a 20.4% increase from RMB 289 million year-on-year[8]. - The company reported a decrease in trade receivables of RMB 2,555 million for the six months ended June 30, 2019, compared to an increase of RMB (1,172) million in the same period in 2018, indicating improved collection efficiency[38]. Cash Flow and Liquidity - The company reported a cash inflow of RMB 1,462 million, contrasting with a cash outflow of RMB 2,021 million in the previous period, indicating a significant improvement in cash flow management[3]. - The company’s cash flow from operating activities was RMB 1,462 million for the six months ended June 30, 2019, compared to RMB (2,021) million for the same period in 2018, marking a significant improvement[38]. - Operating cash flow before changes in working capital for the six months ended June 30, 2019, was RMB 1,333 million, compared to RMB 854 million for the same period in 2018, representing a 56.0% increase[38]. - Net cash generated from financing activities for the six months ended June 30, 2019, was RMB 673 million, compared to RMB (1,099) million for the same period in 2018, showing a turnaround in financing cash flow[39]. - Cash and cash equivalents at the end of the period were RMB 4,265 million, an increase from RMB 3,717 million at the end of the same period in 2018[39]. Revenue Breakdown - Sales from television products accounted for 55.5% of total revenue, while digital set-top boxes and LCD modules contributed 21.1%[5]. - In the domestic market, revenue reached approximately RMB 12,257 million, a growth of RMB 274 million or 2.3% compared to the previous year[13]. - Revenue from overseas markets was RMB 4,973 million, a decrease of 7.4% from RMB 5,368 million in the previous year[14]. - The group's television product revenue in the mainland China market for the six months ended June 30, 2019, was RMB 6,639 million, a decrease of RMB 191 million or 2.8% compared to RMB 6,830 million in the same period last year[16]. - The revenue from the group's smart appliance products in the mainland China market was RMB 1,599 million, an increase of RMB 190 million or 13.5% compared to RMB 1,409 million in the same period last year[19]. Expenses and Investments - Research and development expenses increased by 20.6% to RMB 908 million, up from RMB 831 million in the same period last year, reflecting significant investment in high-quality smart products[23]. - The sales and distribution expenses for the group amounted to RMB 1,838 million, a 10.4% increase from RMB 1,665 million in the same period last year[23]. - The company plans to invest approximately RMB 820 million in property, factory, and office construction, as well as new equipment to enhance production capacity[29]. - The group invested approximately RMB 239 million in construction projects for the six months ended June 30, 2019, compared to RMB 228 million for the same period in 2018[90]. Shareholder Information - The company decided not to declare an interim dividend for this period, consistent with the previous year's decision[5]. - The company declared a final dividend of HKD 0.060 per share for the year ended December 31, 2018, totaling RMB 160 million, down from RMB 241 million for the previous year[89]. - The total number of shares held by directors as beneficial owners is 43,278,024, representing 4.03% of the total issued shares[165]. - The total number of share options granted to directors is 30,000,000, with 20,000,000 options exercised in the current period[173]. Corporate Governance - The group has complied with the corporate governance code, except for one independent non-executive director's absence from the annual general meeting due to other commitments[182]. - The company has adopted a policy to ensure board diversity, considering various factors such as gender, age, and professional experience[186]. - The group has maintained high standards of corporate governance to enhance transparency and accountability to shareholders[183]. Market Strategy - The group has launched seven new OLED TV models, achieving a market share of 35.3% in the OLED market in mainland China for the first half of 2019[16]. - The group adopted a conservative sales strategy in response to the ongoing US-China trade war, leading to a decline in revenue from low-margin projects[17]. - The company aims to achieve a revenue target of RMB 100 billion through its five-year transformation strategy, focusing on smart, refined, and international development[31]. Asset Management - The total non-current assets amounted to RMB 13,826 million, an increase of 11.5% from RMB 12,396 million as of December 31, 2018[33]. - The company’s total assets less current liabilities increased to RMB 22,017 million from RMB 21,032 million, an increase of 4.7%[34]. - The company reported a total of RMB 600 million in notes receivable, an increase from RMB 500 million at the end of 2018, indicating improved liquidity management[140]. Compliance and Regulations - The company adopted Hong Kong Financial Reporting Standard No. 16 on leases, replacing HKAS 17, which will impact the financial statements starting from the mid-term period[46]. - The company confirmed the use of short-term lease exemptions for leases with a term of twelve months or less, and for low-value asset leases, recognizing lease payments as expenses on a straight-line basis[48]. - The company will recognize right-of-use assets at the commencement date of the lease, measured at cost less any accumulated depreciation and impairment losses[49].