This August, for the vast majority of Chinese color TV enterprises should be a celebration in August. Including TCL, Konka, Changhong color TV enterprises, including publishing companies in the first half of 2007 performance report, these companies have achieved an overall profit, some enterprises have even achieved a 50% profit growth.

Traditional CRT TVs to flat-panel TV great transition, the Chinese color TV enterprises have to hand in a good investor report card, it seems unmistakably completed, but some of the domestic color TV industry phenomenon to them sounded the alarm.

Xoceco sounded the alarm

Chosen August 8 days in advance of this interim financial report, Li Dongsheng, TCL Group, is certainly expect the figure as mid-year report as auspicious. Sure enough, after two years of losses, TCL Group, welcomed its first profits, reported a net profit of 45.093 million yuan the whole group.

Followed by TCL Group announced mid-year report is Konka, Konka interim report released by the first half of 2007, the company said the net profit of 42.47 million yuan; then Changhong has announced in the first half net profit of 190 million yuan.

Recently, several other major domestic TV maker Hisense, Skyworth, Xiamen Overseas Chinese have announced their annual mid-year report based on market expectations, Hisense and Skyworth loss is unlikely, but Xoceco said that operating loss last year 520 million yuan, the first half of this year, the company still faces the possibility of consecutive losses.

Xoceco become the first age of television in the flat TV business overall loss. However, the status of Xoceco for other domestic color TV enterprises sounded the alarm, the domestic color TV market, many factors are sufficient to trigger a chain reaction color TV enterprises.

Three major risks affecting the market

Export aggressively cut nearly 50%

According to Customs statistics, export data in the overall performance of optimistic scenario, China’s color TV exports of price and volume are “Let’s drop.” This year from January to June, China’s total exports of 22.55 million color TV sets, down 48.7% year on year.

The first half of this year, exports of domestic color TV enterprises have shown a downward trend. Qingdao Municipal Bureau of Statistics data which shows, Hisense color TV exports in the month of the year 1-4 only 28 million TV sales, compared to 56 million units, TCL, Skyworth also fell sharply, Konka, Changhong also declined to certain extent. Serious decline in exports is to main the main reason for loss of TV’s Xiahua.

Part of the analysis of industry professionals, domestic color TV exports have fallen sharply, except for revaluation of the RMB in recent years, the upstream raw material costs and other factors, the important thing is subject to the constraints of foreign royalties. In addition, the core TV products is the lack of competitiveness of the domestic color TV class companies decline in exports cause.

Foreign investment in China to suppress

China Video Industry Association released the “Blue Book of Chinese color TV industry?? Inventory during the first half of 2007,” shows that the second quarter of this year, LCD TV’s impact by foreign and domestic brand sales of liquid crystal shrinkage to 45%, sales also reduced to 45% volume share of state-owned brand LCD market is being eroded by foreign brands.

According to the China Video Industry Association data, in the domestic LCD market, while still maintaining the first domestic LCD brand position, but at present, Samsung and Philips LCD TV in China has been ranked second, third name, the other domestic LCD brands behind.

Domestic TV business before the usual price war has already been adopted by foreign brands. Repeatedly had launched a price war for profits to the domestic color TV enterprises unprepared.

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