Skyworth Group (751) H2 2024 earnings summary

Executive summary

• Revenue declined by 5.8% year-over-year to RMB65.01 billion, with profit for the year down 34.3% to RMB1.16 billion.

• Gross profit margin slightly decreased to 13.5% from 13.6% in 2023.

• The group fully implemented strategies of smartisation, refinement, and internationalisation, with business spanning over 120 countries.

• No final dividend was declared for 2024 to preserve cash for development and corporate planning.

• The group faced operational pressures from weak consumer confidence and a downturn in China's real estate market.

Financial highlights

• Operating profit (EBIT) dropped 22.0% year-over-year to RMB2.22 billion.

• Basic and diluted EPS both fell 43.0% year-over-year to RMB24.59 cents.

• Cash position at year-end was RMB11.79 billion, down 6.3% from the previous year.

• Net current assets increased 10.1% to RMB12.39 billion.

• Debt to equity ratio increased to 70.5%.

Outlook and guidance

• Focus on high-quality, innovative, and technologically advanced products to sustain market appeal.

• Plans to increase investment and R&D for breakthroughs in smart industrialisation and product transformation.

• Continued expansion in new energy and energy storage, with a globalisation strategy for overseas growth.