Skyworth lowers TV sales targets amid slowdown
Leading mainland television maker Skyworth Digital revised down its sales target for the domestic market to 9.5 million sets from 10 million for the financial year to March in view of the economic slowdown.
Leading mainland television maker Skyworth Digital revised down its sales target for the domestic market to 9.5 million sets from 10 million for the financial year to March in view of the economic slowdown.
Nevertheless, the new target still represents a 9 per cent rise from the previous year.
The sales target for overseas markets has also been lowered to 3.5 million sets from four million, with the new target representing a 29 per cent increase from the previous year.
The mainland market contributed more than four-fifths of Skyworth's revenue in the first half of this financial year, according to its financial report. The firm sold 4.2 million televisions on the mainland during the period.
"Benefiting from the increase in sales of high-end products as well as the replacement demand in China, the overall average selling price has increased," said chief executive Yang Dongwen, adding the 9.5 million target included 3 million 3-D cloud TVs, a year-on-year jump of 89 per cent.
"The total sales target is 13 million sets, representing a year-on-year gain of 14 per cent."
Liu Tangzhi, president of the television business unit, said a continuous improvement in the mainland economy had meant strong demand for liquid-crystal displays.
Meanwhile, Skyworth has teamed with e-commerce giant Alibaba to launch three series of Coocaa smart TV, which is embedded with Alibaba's applications such as Alipay.
Yang said 62,000 Coocaa TVs were sold on the "Double 11" online shopping festival on November 11. Of these, 56,000 were sold on Tmall. "Revenue from Coocaa TVs at our shop on Tmall reached 180 million yuan [HK$227.6 million] on that day," he said.
Skyworth posted a 22.2 per cent year-on-year increase in revenue in the six months to September to HK$20 billion. Gross profit rose 16.1 per cent to HK$3.8 billion.
