Performance of two days, household appliances enterprises need to be transformed

The first-quarter earnings disclosure of domestic home appliance listed companies is nearing completion. Among the 11 black power companies that have disclosed data, only 3 net profits have increased year-on-year; and of the 56 white companies that disclosed first-quarter earnings, 34 net profits have increased year-on-year. Growth, accounting for 60.7%. Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, pointed out that the poor business climate caused related companies to experience a decline in profits in the first quarter, some products were sold poorly, and the pressure for transformation and innovation escalated.

The income is not optimistic. The decline in the performance of black power companies is not optimistic. On April 14, Shenzhen Konka released a quarterly report. In the first quarter, operating income was 4.05 billion yuan, a year-on-year decrease of 15.7%; net profit was 9.52 million yuan, a year-on-year decrease of 33%. On April 21st, Sichuan Changhong released its first quarterly report for 2014: its operating income for the first quarter was 12.53 billion yuan, a year-on-year decrease of 3.53%; net profit attributable to shareholders of listed companies was 9.232 million yuan, a year-on-year decline of 93.75%. Skyworth Digital’s TV sales announcement for the first three months of this year shows that in January, February and March, Skyworth’s color TV division’s sales decreased by 25%, 32%, and 9% year-on-year, respectively. In the first quarter of 2014, Hisense’s revenue increased by 0.5%, but the net profit of its parent company decreased by 7.9%.

At the same time, statistics released by Aowei Consulting show that in the first quarter of this year, the total domestic retail sales volume of domestic color TV market was 10.9 million units, a year-on-year decrease of 10.5%, with sales of 36.6 billion yuan, a year-on-year decrease of 13.3%.

"On the one hand, the sales volume of the entire industry has dropped sharply. On the other hand, the competition in the industry has intensified." According to Lu Jiebo, deputy secretary-general of the China Electronics Chamber of Commerce. In addition to the withdrawal of the subsidy policy, Internet companies have entered the color TV market across borders, breaking the traditional hardware-based profit model of traditional color TV companies. This industry needs to re-clear its thinking and deploy new business models in the era of hardware recovery.

The growth was significant. The difference between the white market and the decline in TV sales was that the growth rate of white electricity was slightly higher than expected. In the first quarter, Gree Electric Appliances realized operating income of 24.67 billion yuan, an increase of 11.62% year-on-year; net profit attributable to shareholders of listed companies was 2.255 billion yuan, an increase of 68.86% year-on-year. Midea Group achieved operating revenue of 38.35 billion yuan, a year-on-year increase of 22%, and a net profit attributable to parent company of 2.54 billion yuan, a year-on-year increase of 148.53%.

In addition, net profits of white-washed companies such as Chunlan, Meiling, and Qingdao Haier increased by 86.66%, 21.12%, and 20.28%, respectively.

According to data from Ovid Consulting, in the first quarter of 2014, the proportion of inverter air conditioner retail sales exceeded 70%, retail volume of over 7 kg of pulsator and drum washing machines accounted for more than 50%, and retail sales of open refrigerators reached 11.2%. , a year-on-year increase of 1.6 percentage points.

Fang Hongbo, chairman of Midea Group, said that the first quarter growth was mainly attributed to the improvement of product structure. This year, the United States will return to the track of re-growth and attach importance to scale and profit growth.

According to Lu Jiebo, deputy secretary-general of the China Electronic Chamber of Commerce, the main reason for the "stunning" performance of white-chip companies in the first quarter was twofold: First, Internet companies did not enter the white-electronics field, and leading companies did not initiate price wars; Changes in the structure and the transformation of refrigerators, washing machines, and air-conditioning products into more profitable products provide an opportunity for business revenue and profit growth.