Konka TV has not entered the top ten in the world, and efforts are needed to restore the color TV business to its former glory

A few days ago, Qunzhi Consulting released relevant data on global color TVs in the first half of 2018. According to statistics, global color TV shipments reached 106 million units in the first half of 2018. Samsung, LG, TCL, Hisense, Skyworth, Sony, Sharp, Philips, Changhong and Xiaomi ranked the top ten in terms of volume. Compared with previous years, the biggest change this time is that Xiaomi TV finally squeezed into the top ten in the world. In contrast, the veteran color TV giant Konka fell behind and ranked 11th. .

Konka TV has not entered the top ten in the world, and efforts are needed to restore the color TV business to its former glory

Shipment data of global color TV brands in the first half of the year

Konka TV used to be a well-deserved leader in the industry. The domestic retail market share of color TVs ranked first for 6 consecutive years. However, in 2015, Konka’s high-level personnel changes and shareholder turmoil caused the daily business of Konka’s color TVs to be completely shut down, and the normal operating rhythm was Completely broken, it also suffered a huge loss of hundreds of millions of yuan in 2015, and has since fallen out of the first echelon of domestic color TV. Subsequent high-level executives changed their blood and adjusted the product structure in time, and Konka took a sigh of relief and got out of the quagmire of losses.

The 2017 Shenzhen Konka A annual report shows that the net profit attributable to the parent company is 5 billion yuan, but at the same time the company's recurring profit and loss amount is 5.154 billion yuan, mainly due to the company's transfer of 70% of Shenzhen Kangqiaojiacheng Vocational Investment Co., Ltd. The income generated, that is, after deducting this part of the income, Konka's net profit is still negative, and the improvement of its main business is not obvious.

In order to get rid of this predicament, in May 2018, Konka Group announced a strategic transformation and independent operation of the color TV business. In January this year, Shenzhen Konka Electronic Technology Co., Ltd. (Konka Electronics) was formally established to fully operate Konka’s TV business and proposed 2020 Achieve a revenue target of 30 billion yuan. At the same time, Konka Electronics is also actively looking for strategic investments. Zhou Bin, President of Konka Group, said that after the independent operation of the color TV business, it will actively promote mixed ownership reform, including the introduction of strategic investors, employee stock ownership, etc., and re-optimize assets. The mixed reform will provide new impetus to the leap-forward development of Konka's color TV business.

In terms of products, Konka Electronics has re-established the layout of AI+Super Display, 5G+Super HD, User+Super Eco. In terms of OLED, 8K, artificial intelligence, etc., Konka also launched products such as OLED55V1 and new inverter R2 TVs this year. Artificial intelligence technology has also been upgraded from full-time artificial intelligence speech to a new three-dimensional frequency conversion technology, returning to the essence of color TV products such as sound quality, image quality, and interactive experience.

In order to maintain the competitiveness of the color TV business, Konka Electronics will increase R&D investment in the three major areas of semiconductors, Internet of Things, and artificial intelligence. "The intelligent development of core technologies can achieve the Internet of Things. The Internet of Things is a new technical field, and The tradition is not the same. Konka Electronics is committed to the Internet of Things, and chip overtaking will also be its first choice for reform." Chang Dong, Chairman and President of Konka Electronics Technology Co., Ltd. introduced.

Konka in transition has also achieved good results. In July, Shenzhen Konka A released the 2018 semi-annual performance forecast announcement. During the reporting period, it achieved operating income of approximately 17.6 billion yuan, an increase of approximately 54% over the same period last year; during the reporting period The net profit attributable to shareholders of listed companies was 320 to 350 million yuan, an increase of 10 times compared to the same period last year. The positive change in performance is due to the mid-to-long-term development strategic plan established by Konka.

Multiple positive factors have given the industry confidence in the recovery of Konka's color TV business. However, after being squeezed out of the top ten in the world by the Internet brand Xiaomi, Konka still needs to make more efforts to restore the color TV business to its former glory.

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