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text｜han xiang

hisense visual technology, the world's second largest tv sales company, has seen its good growth momentum in the past two years come to an abrupt halt, and recently submitted an unsatisfactory semi-annual report.

data shows that hisense visual achieved revenue of 25.461 billion yuan in the first half of the year, a year-on-year increase of 2.36%; net profit attributable to the parent company was 834 million yuan, a year-on-year decrease of 19.56%. non-net profit was 641 million yuan, a year-on-year decrease of 24.29%.

after such a financial report was issued, hisense visual technology's stock price immediately fell to the limit.

"digital intelligence research society" found that hisense visual's stock price has nearly halved in less than three months, falling from 27.91 yuan per share on june 6 to 14.28 yuan per share on august 27, a drop of 48.8%, and its market value has evaporated by nearly 17.787 billion yuan.

it is worth noting that the share price of hisense home appliances, another listed company under hisense, has also seen a large decline recently. on may 13, the share price of hisense home appliances was 41.50 yuan per share, a 52-week high, but until august 30, hisense home appliances has been in a correction and fell, hitting a low of 22.82 yuan per share during the session, a range of decline of 45%.

as listed companies under hisense, hisense home appliances focuses on white appliances, while hisense visual focuses on black appliances. the continued decline in the share prices of the two listed companies means that the market's expectations for the performance growth of listed companies have changed.

the tv cycle is over

in recent years, china's tv sales have continued to decline. according to data released by luotu technology, domestic tv brand shipments reached 16.39 million units in the first half of 2024, a year-on-year decrease of 4.2%.

at the same time, data from avic cloud network showed that the average price of the color tv market rose sharply in the first half of the year, but the retail volume fell by nearly 8 percentage points.

however, judging from the revenue structure of hisense visual, the intelligent display terminal laser tv and new display (commercial display) still achieved year-on-year growth of 6.3% and 14.61%. this data seems to be quite gratifying, but the growth rate has obviously slowed down.

the general trend is irreversible. the sluggish real estate market has spread to the black electronics industry, and the downgrade of consumption has affected residents' consumption sentiment, so the tv market has slowed down significantly.

more importantly, the "2024 china smart tv interaction new trends report" shows that the tv power-on rate in my country has dropped from 70% in 2016 to less than 30% in 2022, and sales have also declined for five consecutive years.

at present, the consumption of products such as televisions is affected by asset prices, but in the long run, the total population has reached its peak. under such a trend, if income and expectations cannot be improved, consumption will inevitably face more challenges.

from the perspective of the industry structure, the top five tv brands in the world in the first half of the year were samsung, hisense, tcl, lg electronics and xiaomi. hisense is undoubtedly the dominant player in the domestic market, but its leading advantage over tcl is not obvious. xiaomi specializes in the home appliance market through internet channels, and its core strategy is low prices. interestingly, in 2019, xiaomi topped the list of domestic market shipments with its extreme cost-performance ratio, putting pressure on traditional manufacturers such as hisense and tcl. in the competition for inventory, hisense still has a lot to do to maintain its leading position in the industry.

rely on high-end and overseas

while both shipments and sales of color tvs have shrunk significantly, hisense visual is also facing an increase in the average price of tvs due to rising panel prices. in addition, in an already mature market, hisense has not been able to create a clear gap with tcl and xiaomi behind it.

especially low-price competition, the model that relies on cost-effectiveness is definitely not conducive to the long-term development of the brand. in addition, the market has entered the era of inventory, and tvs are no longer a rigid demand for consumers.

the color tv field in which hisense vision operates seems to be very unfavorable, both in terms of current and future prospects.

demand is shrinking, but market competition is becoming increasingly fierce. under such circumstances, hisense visual had to transform, and hisense under jia shaoqian started the high-end transformation.

data shows that in the first half of 2023, hisense visual occupied 36.4% of china's offline high-end market share, an increase of 5.7% year-on-year. in the first half of 2024, high-end tvs accounted for 40.11% and 27.69% of retail sales offline and online respectively.

in addition to high-end development, going overseas is also an important direction for hisense visual technology to develop. especially in the field of football, hisense visual technology has made a very active layout.

as early as 2016, hisense had officially launched the slogan "no. 1 in china, no. 2 in the world", and continued to penetrate the minds of users through the sky-high sponsorship fees of 40-60 million euros. on august 28, 2024, hisense officially became the official sponsor of real madrid.

it is worth noting that sponsoring top global events is very effective in promoting the development of overseas markets, but at the same time hisense visual has also seen an increase in revenue but not in profits.

today, hisense seems to have found a new path to enter the automotive electronics market. at present, the business is expanding, and the determination and ambition are also growing. however, in the current complex macro environment, if you want to see the development of hisense, you still need full confidence.