BRIEF: Skyworth Digital profit tumbles 64% in first three quarters

Electronics manufacturer Skyworth Group Ltd. (0751.HK) announced on Sunday that its non-wholly-owned Skyworth Digital Co. Ltd. (000810.SZ) subsidiary recorded revenue of 6.46 billion yuan ($906 million) in the first three quarters of this year, down 2.45% year-on-year. The unit’s net profit fell 63.69% to 85.86 million yuan for the period.

During the nine-month period, Skyworth Digital’s R&D spending reached 339 million yuan, about 10% lower than a year earlier. The company’s inventories rose to 2.12 billion yuan, up 39.4% from the beginning of the year, due to strategic stockpiling and other factors involving early orders. The company’s operating cash flow turned negative, with a net outflow of 83.63 million yuan for the nine-month period, compared with an inflow of 453 million yuan a year earlier.

Skyworth Digital provides intelligent system solutions, mainly for smart terminals, broadband equipment, and professional display products. Its business has also expanded into smart home, smart city, and Internet-of-Vehicles (IoV) applications.

Hong Kong-listed Skyworth Group’s shares opened higher on Monday but later turned lower, closing down 1.43% at HK$4.14 by the midday break. The stock has gained about 31.43% over the past six months.

By Lee Shih Ta

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