Skyworth Digital Spin


Skyworth Digital Zhang Xuebin CEO recently said the company’s set-top box business is on spin-off listing of the procedures, the end of this year or early next year, this business will be listed on the Shenzhen A share. Separate set-top box business will be listed, which indicates that the number TV And related products will be the focus of future development of Skyworth Digital, one of Skyworth Digital digital television began to occupy the “bridgehead.”

Set-top box industry will benefit first

As China’s economic development, digital television also accelerating the pace of development. In market structure, the current China’s digital TV market has taken shape in terrestrial, cable, satellite transmission of digital television signals round the market. In coverage, the current Beijing, Shanghai has opened high-definition terrestrial digital TV channels. Olympics Council, Beijing, Tianjin, Shanghai, Shenyang, Qingdao, Qinhuangdao six Olympic cities and Guangzhou, Shenzhen, will begin broadcasting high-definition terrestrial television is expected before the end of 37 cities in China will begin broadcasting high-definition terrestrial digital channels. In the number of users, according to the first half of 2008 statistics, the domestic digital TV users has reached 27 million.

The rapid development of digital television-related end-products for a huge space for development. First, the development of digital television and digital terrestrial television is the introduction of national standards, will lead the development of the entire TV industry. Second, set-top box market driven growth. By installing the set-top boxes, people, if not replace digital TV, you can watch digital TV programs. From the current view, as by installing set-top box to watch digital television, more convenient and low cost, many families will be the preferred way through the set-top box to watch digital TV. Because of this, digital TV set-top box industry in the development of the first to benefit.

Urgent need to find new breakthroughs in points

Skyworth Digital recently announced financial results for the 2007 Annual Report. Filing shows Skyworth Digital turnover a new high of 480 million dollar net profit, up 275% over the previous year. Sales in the domestic market increased by 9% to 12.311 billion Hong Kong dollars, 88.3% of total turnover.

TV Still are the most important core business, accounting Skyworth Digital Mainland 92.4% of revenue. Other business was mixed. Gradually enhanced digital set-top box revenues, fiscal year 2007, its sales in China up to 702 million Hong Kong dollars, compared with the previous year increased by 24.9%; while the poor performance of mobile telephone services, mobile telephone service revenues decreased 66.1%.

Can be seen from the financial statements, Skyworth Digital TV business in a considerable proportion of total revenues. Although this is the most stable revenue Skyworth Digital source, but highly competitive TV market, has long been the Red Sea, Skyworth Digital order to further breakthroughs in the future, it is very difficult. Which is considered promising mobile business performance of poor, mainly because the “entry threshold” of the decline, slow product development, sales cycle is short, intense market competition and other factors. Skyworth Digital’s Mobile Product or brand in terms of technology, and even the cost is very difficult to compete with other competitors, therefore, Skyworth Digital decided to sell 80% stake to its suppliers, to make mobile services may lead to financial and operational risks possibility to a minimum.

Home Appliances Diversification and Enterprise is a major trend in home appliance industry, with the home appliance industry profits are diluted to find the breakthrough point has become the urgent needs of household electrical appliance enterprises. Currently, the only TV that Skyworth Digital a “killer”, so to find the breakthrough point of Skyworth Digital has become urgent to solve the problem.

Seize digital TV “bridgehead”

This, Skyworth Digital set-top box business plan to split the market, will help hair strength Skyworth Digital TV market, and seize the opportunity.

First, by set-top box business to enter the digital TV market, Skyworth Digital obvious advantages.

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