Shulou(Shulou.com)11/24 Report--

On January 30, Konka Group issued a forecast of its annual performance in 2022. During the reporting period, Konka Group is expected to achieve an income of 28-31.5 billion yuan. In 2022, under the complex background of repeated epidemic situation, declining consumption, supply chain shock and macro policy adjustment, Konka Group took lean management as the core guiding ideology, focused on the development of the main industry, and actively promoted the optimization of industrial structure. Adhere to the three major industrial main lines of "consumer electronics + semiconductors + new energy technology", vigorously promote cost reduction and efficiency, control costs and reduce expenditure, and constantly strengthen scientific and technological innovation. Continue to consolidate professional capacity building to promote the high-quality development of Konka Group.

Centering on the concept of lean management, Konka Group takes physical fitness and steady development as the general tone of operation, by reducing costs and fees, promoting the recovery of receivables, withdrawing losses and subordinates participating in holding enterprises that are not in line with the company's development strategy, and so on. Promote lean management and lay a solid foundation for the high-quality development of Konka Group.

Konka Group insists on being driven by scientific and technological innovation, continuously strengthens the three-level R & D system of "Research Institute-key Laboratories-Product R & D Center", and continues to increase R & D investment in semiconductors, big data, display technology, healthy chilled technology and other fields. Enhance Konka Group's scientific and technological innovation capability.

In terms of core technology research and development, during the reporting period, Konka Group made breakthroughs in a number of key core technologies to accelerate the process of technology industrialization. In the semiconductor field, Konka Group independently developed Micro LED "hybrid mass transfer technology" after the repair of the trichromatic transfer rate reached 99.999%, the good rate of Micro LED chip production reached 99%, and landed on industrialization projects such as MLED direct production line. In the field of white electricity, Konka Group has carried out the application basic research of the project "Development of Cryogenic refrigerator Technology based on inverse Brayton Refrigeration Technology". After developing a civil air refrigeration deep cryogenic-86 ℃ refrigerator, Konka Group has further achieved a refrigeration temperature breakthrough of-120 ℃, opening up the market space of Konka Group's ultra-cryogenic refrigeration products in medical, military, scientific research institutions, laboratories, transportation and other fields. The developed 15-day ecological fresh-keeping technology promotes the shelf life of food in the refrigerator through multi-field coupling fresh-keeping technology.

Konka Group's achievements in scientific and technological innovation have also been highly recognized by the country, inside and outside the industry, and successfully won 1 national award and 4 provincial and ministerial awards. Among them, "parameter separation method intelligent TV and storage media" won the China Patent Excellence Award, and "Intelligent Terminal key Technology with the Integration of Information equipment and Beacon Cooperative Interconnection" won the second prize of Guangdong Science and Technology Progress Award. "temperature correction control method of air-cooled refrigerator" and "a refrigerator noise control method using frequency conversion compressor" won Henan Science and Technology Achievement Award. Konka double 15-day ecological fresh refrigerator won the 2022 China refrigerator Industry Super long fresh leading Product Award.

Based on the main industry of electronic science and technology, Konka Group promotes high-quality development, clearly focuses on the three major industrial lines of "consumer electronics + semiconductors + new energy technology", actively enhances its professional ability, and continues to deepen the optimization of industrial structure. First of all, Konka Group has made every effort to promote the dual-brand operation of "Konka + Xinfei" by strengthening its investment in white power products, and the Shaanxi Konka Industrial Park has entered the stage of mass production, realizing the construction of the manufacturing capacity of the whole category of "ice-washed cold air chefs". Secondly, Konka Group continues to improve its intelligent manufacturing capacity, Ankang Green Intelligent Factory Industrial Internet platform has been successfully delivered for acceptance, the production efficiency has reached the advanced level of the industry, and has won the title of "National Green Intelligent Factory". Realize the transformation from Konka manufacturing to Konka intelligent manufacturing.

In 2022, Konka Group accounted for a large share of storage semiconductor products related to export products, but according to the preliminary statistics of Gartner, global storage semiconductor sales decreased by about 10.4% in 2022 compared with the same period last year. In order to reduce operational risk, Konka Group took the initiative to adjust and shrink the scale of this part of the business, resulting in a sharp decline in the sales of memory chips and other products in the industrial and trade business compared with 2021. At the same time, due to frequent domestic epidemics and weak market consumption, according to statistics from third-party research institutions, the size of the domestic industry related to Konka Group's consumer electronics business decreased by about 10% in 2022 compared with 2021. The domestic sales scale of Konka Group's consumer electronics business decreased to a certain extent in 2022 compared with 2021. During the reporting period, Konka Group focused on the main business, adhered to the three major industrial lines of "consumer electronics + semiconductors + new energy technology", promoted the adjustment of business structure, and took the initiative to optimize some non-core businesses that did not cooperate with the main industry. In addition, Konka Group introduced Yikang Technology Co., Ltd. and Shenzhen Yipingfang Network Technology Co., Ltd. at the end of 2021 through the introduction of strategic investors. Konka Group will no longer merge the operating income of the two companies in 2022.

In 2022, while the scale of consumer electronics business declined, it was affected by factors such as fluctuations in raw material prices, increasingly fierce market competition, continuous decline in retail average prices of consumer electronic products, rising shipping costs and so on. Konka Group consumer electronics business gross profit dropped sharply, and produced a certain amount of losses. While Konka Group semiconductor business R & D investment continued to grow, but still in the small batch industrialization stage, failed to achieve the corresponding revenue and profits in 2022, affecting the overall profit performance of Konka Group. At the same time, in order to effectively invigorate assets and further focus on the main business, Konka Group took the initiative to divest and clear assets that were not strong to the development of the main business and contributed less to the expansion of the industrial chain, and based on the principle of prudence, Konka Group made provision for impairment of some assets such as accounts receivable and inventory that may have credit and asset impairment, resulting in a decline in profitability.

In 2023, Konka Group will be based on the main business, adhere to the professional operation of the platform, implement lean management, advocate long-term value, strive to improve efficiency, continue to promote cost reduction and efficiency improvement, and continue to optimize the industrial structure. For the consumer electronics business, Konka Group will continue to promote the reform and upgrading of the color TV business and expand and strengthen the white TV business, so as to achieve the operational balance of the sustainable development of the core business of consumer electronics in the structural adjustment, and enhance the market voice, industry status and premium level. For semiconductor business, Konka Group will focus on semiconductor core technology breakthroughs, accelerate the pace of semiconductor industrialization and enhance market efficiency.

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