Recently, Sichuan Changhong disclosed the report for the first half of 2018. The report shows that from January to June, Sichuan Changhong achieved operating income of 38.402 billion yuan, up 10.47% year-on-year; net profit attributable to mothers was 169 million yuan, up 9.26% year-on-year. From the perspective of income structure, Sichuan Changhong’s growth is mainly due to the supply chain business in the middle product category, and the main revenue increment contributed by the consumer electronics business centered on color TV, refrigerator and air conditioner.
From the perspective of profit structure, the color TV business has strengthened. The report shows that the net profit of color TV business increased by 110 million yuan year-on-year, while the refrigerator business was affected by factors such as the settlement of the chain, e-commerce customers settlement and the online sales structure was not expected. The refrigerator compressor business was affected by factors such as rising raw material prices and fierce competition in terminal prices. Net profit decreased by about RMB 68 million year-on-year; the set-top box business was greatly affected by the price of components such as chips, capacitors and resistors, and the B2B sales contract was lacking. The role of price elasticity change mechanism and other factors, net profit decreased by 35 million yuan.
In fact, the strength of color TVs and the weakening of white electricity are inseparable from fluctuations in raw material prices. Among the production costs of white electricity, copper, aluminum, steel, and crude oil-related plastic pellets, foaming materials and other bulk raw materials account for a large proportion, of which compressors and plastics account for 25% and 20%, respectively, and compressors. The main raw materials are copper and steel. Although the compressor manufacturers themselves will digest some of the raw material price increases, they will also have a certain transmission to the downstream costs.
Among them, steel prices have risen since the end of 2015 and have more than doubled so far, which has a greater impact on the cost of the refrigerator industry. Copper’s global inventories are at a low level, while global demand for copper has increased, leading to a rise in copper prices since last year. And maintain a high rate of increase, while the price of plastics also began to rise in 2016, and affect the gross profit of the refrigerator industry.
In contrast, the price of panels that account for more than 60% of the cost of TV sets experienced a decline after the price began to rise in July this year. In the second quarter of this year, the panel industry strengthened its stocking in the first quarter and the second quarter panel presented. The overall imbalance between supply and demand, the global TV panel supply and demand ratio in the second quarter reached 9.7% far above the 5% balance point, resulting in a second-quarter panel price decline. According to Ovi Cloud data, in June 2018, the prices of 65-inch, 55-inch, 50-inch, 49-inch, 43-inch, and 40-inch ultra-high-definition panels decreased by 41%, 27%, 42%, 39%, and 45, respectively. %, 49%.
In addition, the Sichuan Changhong semi-annual report revealed that in the first half of the year, Sichuan Changhong faced the complex and ever-changing external environment, adhered to the concept of “high-quality development”, and coordinated the promotion of “short, medium and long” business initiatives, such as “enhancing cash flow security”. Controlling, accelerating industrial optimization and integration, deepening the reform of resource allocation, building risk prevention dams, enhancing technological innovation capabilities, and trying to systematically reduce costs have achieved basic and stable structural improvement.
It is worth noting that Sichuan Changhong has the ability to cooperate with global production, research and research resources to form a unique leading edge in the field of industrial technology frontier technology and product competitive technology. According to the report, Changhong focuses on building a global R&D layout and a three-tier R&D system with Changhong features, and has several national-level technology centers including Changhong Technology Center, Meiling Technology Center and Huayi Technology Center. At the same time, Tsinghua University, MIT, Northwest University and other international top universities have established long-term and stable cooperative relations and successively obtained a series of major technological innovations.
In addition, in the global layout, Sichuan Changhong continued to promote the layout of the backbone of the global economic and trade network of the operating institutions, R&D centers and manufacturing bases, and realized the going out of Changhong products, Changhong manufacturing, Changhong technology and Changhong brands. Faster than yearly.
Based on the above measures, Sichuan Changhong’s comprehensive competitiveness has continued to increase, and the market position of major product categories ranks first in the industry. Among them, in terms of color TV, Changhong actively participated in the global market and technology competition, and its market share increased rapidly. However, there is still room for growth in overseas brand business. Sichuan Changhong said that it plans to rank among the top eight in the world by 2020. In the domestic market, Sichuan Changhong’s color TV business has developed and precipitated for many years, and has strong competitiveness in supply chain management, lean manufacturing, technology research and development and innovation, consumer demand insight, and O2O marketing promotion.
In the white electricity industry, the significant growth of the domestic refrigerator market has turned into erosive growth, and the trend of oligopoly has become more apparent. The Changhong Meiling under Sichuan Changhong is in the leading position of the industry. Based on years of cultivation and development, Sichuan Changhong The refrigerator also has strong product innovation capabilities, and the technologies of intelligent, fresh-keeping, frequency conversion, cryogenic, and frost-free maintain the leading level in the industry.
In the second half of the year, Sichuan Changhong will strengthen the resource constraints, ensure cash security, and enhance the various derivative risks brought about by the short-term deterioration of the macroeconomic environment; promote various industries to comprehensively focus on design, procurement, manufacturing, sales and logistics. System cost reduction; adhere to product leadership strategy, adhere to the promotion of high-margin products profit and break; accelerate the pace of industrial optimization, and stop the blood to stop losses; strengthen the operation of the entire value chain, use new information tools and methods to reshape the manufacturing, research and development, marketing system And the process, build a new competitive advantage; continue to promote the transformation of manufacturing-oriented services, actively cultivate a series of initiatives for service-oriented manufacturing new business for third parties, continue to move toward the annual business goals set at the beginning of the year, achieve a healthy growth in revenue scale, and achieve Significant increase in sustainable profitability.