The reporter of Nanduwan Finance Agency combed and saw that the actual color TV business of this former color TV "giant" has long been gone. From 2018 to 2021, the revenue of Konka color TV business was 9.892 billion yuan, 8.766 billion yuan, 7.520 billion yuan and 7.300 billion yuan, respectively, a year-on-year decrease of 17.53%, 11.39%, 14.21% and 2.92%. IC photo
Konka Group, which has been established for 43 years, is experiencing a "mid-life crisis". On the evening of March 27, Konka Group released its 2022 annual report, showing that the company achieved operating income of 29.608 billion yuan, down 39.71% year-on-year; The net loss was 1.471 billion yuan, compared with a net profit of 905 million yuan in the same period last year, turning from profit to loss year-on-year.
Konka said that in addition to the fluctuation of raw material prices, increasingly fierce market competition, rising shipping costs and other factors, the impairment of asset divestiture and the contraction of industrial parks and investment businesses were the main reasons for the loss. Among them, Konka divested and cleared assets that did not have strong empowerment for the development of the main business and contributed less to the expansion of the industrial chain, and made an impairment provision of 1.245 billion yuan; at the same time, Konka actively contracted its industrial park and investment business in 2022, resulting in a significant decline in related income, and the profit and loss on the disposal of non-current assets in 2022 was 755 million yuan, down 81.33% year-on-year.
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Last year's net loss of 1.4 billion yuan Color TV revenue decline continued to expand
In 2022, from the perspective of specific business, industry and trade business, as the bulk of the main business income, is undoubtedly a "double-edged sword". According to the financial report, Konka's industrial and trade business revenue in 2022 will be 16.053 billion yuan, accounting for 54.22% of the operating income. However, due to the operating profit of the industrial and trade business from processing fees and the difference between upstream procurement and downstream sales, the profit is small, and the gross profit margin is only 0.65%. At the same time, the growth rate of the industry and trade business sector also slowed down further, and the operating income decreased by 45.92% over the same period of the previous year. Growth slowed down at the same time as Konka's consumer electronics business.
From the perspective of the specific product form of consumer electronics, the performance of color business and white electricity business is clearly differentiated. According to the financial report, the revenue of Konka's color TV business fell by 31.19% year-on-year to 5.023 billion yuan; the gross profit margin decreased by 6.34% year-on-year to -1.17%, which also means that Konka's color TV business is a "loss and profit" transaction.
The reporter of Nanduwan Finance Agency combed and saw that the actual color TV business of this former color TV "giant" has long been gone. From 2018 to 2021, the revenue of Konka color TV business was 9.892 billion yuan, 8.766 billion yuan, 7.520 billion yuan and 7.300 billion yuan, respectively, a year-on-year decrease of 17.53%, 11.39%, 14.21% and 2.92%. With the decline in Konka color TV business revenue, the proportion of revenue is also declining, from 21.45% in 2018 to 14.87% in 2021. In 2022, the decline in color TV business revenue expanded again, falling by 31.19% year-on-year.
In contrast, Konka's white electricity business has improved. Konka's white electricity business revenue in 2022 will be 3.930 billion yuan, a year-on-year increase of 6.22%; The gross profit margin was 10.33%, a year-on-year increase of 2.11%.
Konka is also constantly increasing the white electricity business sector. Relevant information shows that Konka has strengthened the foundation of the white power brand through the acquisition of the "Xinfei" brand; Through the joint venture to establish Ningbo air conditioning production base, it has built its own air conditioning manufacturing capacity; Through the acquisition of Beko (drum washing machine) China factory, the technical shortcomings of drum washing machine were completed; Through the new Xi'an Smart Home Appliance Industrial Park, explore the development of dishwasher business.
Based on the background of the weak consumer market and the decline of its main business, Konka has also further opened up and reduced expenditure. Konka said that in 2023, it will continue to accelerate the reduction and exit of some invested projects and funds, and actively return cash flow.
In January 2023, Konka issued an announcement that it intends to sell no more than 6% of the total share capital of Chutianlong and Tianyuan Environmental Protection in the first half of 2023. According to the closing price on March 28, the combined value of the shares of the above two companies exceeded 800 million yuan.
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"Entering" new energy "money path" is still unknown
While focusing on the electronics business, Konka still regards new energy as a new growth point for business development. In 2021, Konka plans to issue shares to purchase Ming Hi-Tech, which specializes in high-precision flexible and rigid circuit boards, and Histar Power, which is mainly engaged in lithium-ion battery products, so as to enter the field of new energy industry. However, in March 2022, Konka's plan came to an abrupt end. Konka announced that it will terminate the acquisition of shares of Ming High-tech and Haisida Power.
At this stage, Konka has not given up entering the field of new energy technology. Konka emphasized in the financial report that in 2023, it will adhere to the general tone of development, focus on the main industrial line of "consumer electronics + semiconductor + new energy technology", expand new energy business through capital, and promote the transformation of the existing environmental protection business model under the premise of sustainable development.
It is reported that Konka has been involved in photovoltaic glass production last year. In August 2022, it signed a contract with Kaili City, Guizhou Province to invest in the construction of photovoltaic glass lightweight panel production line and related facilities production base; In September, it reached a strategic cooperation with Shenggao Energy to jointly develop the domestic photovoltaic storage distributed business; In October, the wholly-owned subsidiary established Konka Photovoltaic Technology Co., Ltd. as a joint venture with Zhejiang Hemai Clean Energy Co., Ltd. Wu Yongjun, secretary of Konka, said in an exchange with investors on November 9 that Konka is currently relying on photovoltaic glass and other projects to actively expand to the upstream and downstream of the photovoltaic industry in a variety of ways.
It is not new for home appliance companies to enter the photovoltaic track across industries. Tianfeng Securities Research Report believes that it is reasonable for home appliance companies to turn across industries and seize the photovoltaic track. On the one hand, the layout of the photovoltaic industry can meet the needs of home appliance enterprises to achieve green and sustainable development, and low-energy consumption products are expected to become a new round of transformation direction in the home appliance industry in the future; On the other hand, the layout of the photovoltaic industry is expected to bring new growth points to enterprises and drive scale effects. At the same time, the photovoltaic market involves large-scale manufacturing, retail and services, and is the same as the home appliance industry on the energy-using side, and the leading enterprises of home appliances have marketing, logistics and service networks scattered in the national and global markets, superimposed on the brand reputation formed by the development for many years, and are expected to find a breakthrough in the process of "home appliances + photovoltaic" combination to open up user resources.
However, industry insiders believe that from the current performance of listed home appliance companies and their affiliates, the photovoltaic industry is increasingly competitive, and it may not necessarily bring huge profits in the short term. In addition, with more and more players, the market is changing from a "blue ocean" to a "red ocean". As a home appliance company, how to create differentiated competitiveness in cross-border fields such as photovoltaics and energy storage is still a challenge.
Written by: Nandu Bay Finance Agency reporter Chen Peijun Yan Zhaoxin