Skyworth Digital Co Ltd

The National Radio and Television Administration, together with the Ministry of Industry and Information Technology, has formulated technical standards for integrated TVs, embedding set-top box functions into television sets in software form. Users can switch on and off and access channel programs with one universal remote control at the press of a button. This means a hardware category that once shipped over 100 million units a year will exit the stage. As early as 2025, the National Radio and Television Administration had deployed more than 10 million plug-in mini set-top boxes and universal remote controls nationwide, as well as over 1 million integrated TV terminals. On April 22, 2026, the National Radio and Television Administration, together with the Ministry of Industry and Information Technology, China Broadnet, and the three major telecom operators, officially launched the nationwide promotion of integrated TVs. On June 15, 2026, the industry standard GY/T 428-2026 was officially released and implemented. The set-top box market had been shrinking for years before the policy took effect. According to data from Runto Technology, sales of smart boxes across all channels in China in 2025 totaled 2.406 million units, down 3.4 percent year on year. Companies along the industry chain are in divergent positions. Skyworth Digital reported operating revenue of 5.371 billion yuan in the first half of 2026, up 31.16 percent year on year, with net profit attributable to the parent company of 162 million yuan, up 202.45 percent. Unionman Technology reported operating revenue of 1.442 billion yuan in the first half of 2026, up 30.92 percent year on year, with net profit attributable to the parent company of 35.1102 million yuan, turning from loss to profit. Coship Electronics reported operating revenue of 121 million yuan in the first half of 2026, down 77.53 percent year on year, with net profit attributable to the parent company of 12.8976 million yuan, down 93.65 percent. Skyworth Digital said it will participate in bidding for integrated hardware adapters from the National Radio and Television Administration and the three major telecom operators. Unionman Technology proposed replacing traditional set-top boxes with lightweight terminals such as USB dongles and upgrading toward AI agents with on-device computing power.

Skyworth Digital released its 2026 interim report. Net profit attributable to the parent in the first half was 162 million yuan, up 202.5% year-on-year. Operating revenue was 5.37 billion yuan, up 31.2% year-on-year. Net profit attributable to the parent after deducting non-recurring items was 136 million yuan, up 186.0% year-on-year. Net operating cash flow was negative 2.239 billion yuan, down 1029.8% year-on-year. In the second quarter, operating revenue was 2.88 billion yuan, up 25.3% year-on-year, and net profit attributable to the parent was 79.2 million yuan, up 64.1% year-on-year. As of the end of the second quarter, total assets were 14.864 billion yuan, up 26.5% from the end of the previous year, and net assets attributable to the parent were 6.578 billion yuan, up 1.1% from the end of the previous year. The company said that in the first half it actively expanded domestic and overseas markets. Its smart terminal business achieved operating revenue of 4.4 billion yuan, up 52.45% year-on-year. The NexPlayground motion-sensing game console launched in cooperation with Nex performed prominently in the North American market, with revenue up 63.12% year-on-year. The professional display business achieved operating revenue of 893 million yuan, down 13.31% year-on-year, but the automotive electronics in-vehicle display assembly business made a breakthrough, securing designated projects for more than 40 platform projects in total.

Skyworth Digital has issued an announcement, expecting net profit attributable to the parent for the first half of 2026 to be between 140 million and 180 million yuan, representing a year-on-year increase of 161.24% to 235.88%. The company also expects net profit after deducting non-recurring items to be between 115 million and 150 million yuan, up 141.90% to 215.52% year-on-year. The announcement noted that the profit growth was mainly due to an increase in smart terminal sales volume, revenue scale, and gross profit margin during the reporting period compared with the same period last year. In the first quarter of 2026, Skyworth Digital achieved revenue of 2.494 billion yuan and net profit attributable to the parent of 82.88 million yuan.