Skyworth Digital’s H1 2021 Revenue Increased by 23% Year-on-Year, Plans to Split Into Two Listed Firms

skyworth
(Source: Sohu)

Shenzhen-based high-tech enterprise Skyworth Digital Co., Ltd. released its semi-annual report for 2021 on Tuesday. During the reporting period, the company achieved operating income of 4.575 billion yuan ($707 million), a year-on-year increase of 23.37%.

The impact of price increases for home appliance raw materials is reflected in the financial report. Skyworth Digital’s net cash flow from operating activities in the current period turned negative, while the inventory increased by 45% year-on-year. The company said that this was due to the increase in raw material procurement and reserves during this period.

Since the beginning of the year, the price of raw materials needed for the manufacturing of home appliances has been rising continuously, and many companies have therefore prepared to purchase materials in advance.

Skyworth Digital mainly covers three businesses: Terminal products and broadband connection, commercial displays, and value-added and operations businesses. Skyworth’s TV business is not included in the scope of the listed company.

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Skyworth Digital’s stock price has not fluctuated much this year, with the highest level reported at 9.9 yuan per share and the lowest reported at 6.7 yuan per share. As of August 24th, the firm reported 7.91 yuan per share, with a total market value of 8.41 billion yuan.

According to Jiemian News, the parent company Skyworth Group intends to split the firm and go public. At the end of last year, Skyworth’s smart TV brand COOCAA received advice from CICC and began to prepare for listing. On August 23, Skyworth Group announced that it had proposed to split Skyworth Electric Co., Ltd., a subsidiary specializing in white household electronic appliances such as refrigerators.

If the listing process goes smoothly, Skyworth Group, which was established 33 years ago, will get new financing opportunities in the capital market.