On January 11, Hisense Group Vice President, Hisense Vision (600060.SH) President Yu Zhitao said at the launch of China's first self-developed 8K AI picture quality chip.
Yu Zhitao emphasized that over the decades, Chinese, Japanese and South Korean companies have been engaged in a fierce battle around display technology and the industrial chain, and Hisense has always stood at the forefront of this war, especially in the core track of chip technology.
He believes that as the global TV competition enters an inflection point, the core technology of image quality represented by the 8K image quality chip will become a new round of "winning weapons".
The successful development of China's first 8K AI picture quality chip further reflects Hisense's ambition for a large display industry layout.
The chip is known as the country's "industrial food", is the heart of the machine equipment. Chip technology is a symbol of the technical level of the machine, reflecting the core intellectual property rights of the product and the main added value.
Hisense has accumulated more than 20 years of experience in chip research and development.
In June 2005, Hisense developed China's first digital video processing chip with independent intellectual property rights and industrialization.
Since 2015, Hisense has released 5 picture quality chips, constantly refreshing China's display picture quality ceiling.
From the perspective of enterprise development, Hisense has been increasing its investment in chip research and development with the aim of occupying the high ground of competition. on January 11, Yu Zhitao emphasized in his keynote speech that "the chip is the core underlying technology of Hisense's big display strategy".
From the perspective of industrial upgrading, it is significant to make breakthroughs in domestic chip research and development.
In response to the current state of the industry, Xu Wenli, deputy director of the Electronic Information Division of the Ministry of Industry and Information Technology, said, "China has achieved the world's largest scale in the field of consumer electronics, color TV shipments for many years, ranking high in the global market first, the display panel has also achieved the world's first, but the constraints on the industry's high-quality development of the bottleneck is still the chip."
In Xu Wenli's view, the current industry supporting chips still need to be imported in large quantities, which to some extent affects the industrial upgrading and popularization of high-end products.
In the high-end chip track, Hisense is undoubtedly one of the enterprises with high hopes.
According to Yu Zhitao's introduction, under the "assist" of the chip upgrade, the attributes of Hisense's display products have undergone tremendous changes, from the original single display attribute to the current development of the picture quality, sound quality, content, interaction and AIoT as the five core elements of positioning.
Within these five core elements, how to provide users with a better product experience? How to make the product always have a good differentiated competitive ability?
"For a single product, the core is the chip. The specifications of the chip and the performance of the chip will determine the competitiveness of the terminal individual products in the market, determining the profit and operational efficiency of the enterprise." Yu Zhitao responded.
In Zhitao's view, it is the synergy between chip R&D and the whole machine industry that has enabled Hisense to achieve today's results.
He pointed out that Hisense has a natural vertical industry chain advantage; has TV machine, commercial display, medical display and other needs, for Hisense chip R & D provides an industrial base. 50 years of accumulation of picture quality capabilities also provides a guarantee for the picture quality chip design, industrialization.
Yu Zhitao pointed out that, for the TV industry, only manufacturing to high-quality development, industry to the high-end leap, the price of the fight to the value of the fight, will gain vitality and future.
It is reported that Hisense Group owns three listed companies, Hisense Home Appliances (000921.SZ), Hisense Video, and Sanpower Holdings (6444.JP), and operates through a number of brands, such as Hisense, Toshiba, gorenje, Kolon, Rongsheng, Vidda, and so on. Among them, Hisense Vision focuses on TV-related business.
Relying on its unique advantages in the chip field, Hisense Vision has successively created highly competitive and technologically advanced products such as stacked-screen TVs, U7 TVs, and broadcast-quality benchmark monitors, forming a complete and vertical industrial chain from chips to complete sets.
By adhering to the big display strategy, Hisense has continued to broaden the new track to meet the increasingly diversified scenarios of consumer demand, rediscovered the value of the screen and connectivity, and found a new space for growth.
According to the CICC research report on January 9, the CICC maintains Hisense video outperforms the industry rating, target price of 17.5 yuan, and predicts that Hisense video 2021 net profit of 1.41 billion yuan, a year-on-year growth of 17.95%.
It is worth noting that Hisense Vision's share price has been oscillating upward since September 2021, and as of the close of January 12, Hisense Vision's share price closed at 14.93%, with a total market capitalization of 19.536 billion yuan.
Yu Zhitao said, "Starting from 2020, Hisense Vision has reformulated its development strategy, and will become a global first-class system display provider in the next 5 to 10 years."
On the one hand, Hisense video will develop from the original single picture presentation to "display everywhere"; on the other hand, the competition faced by Hisense in the future will be the deepening of R & D, product productization and industrial ecology.
From Hisense's "report card" point of view, it has formed a complete series of chip products, before the introduction of four generations of picture quality chip and are to achieve mass production, in the picture quality track to form a unique advantage, get rid of the homogenization of competition.
It is understood that Hisense Vision has completed the industrial restructuring, the formation of "1 + 4" diversified business layout.
Financial data show that in the first three quarters of 2021, Hisense Vision realized operating income of 33.921 billion yuan, an increase of 23.44% year-on-year; net profit of 626 million yuan, an increase of 8.79% year-on-year; withholding net profit of 370 million yuan, an increase of 319.9% year-on-year.
From the product structure point of view, Hisense Vision's business mainly consists of intelligent display terminal and new display new business two plates. Currently, Hisense Vision has a solid market leadership in the TV business, and the new display new business segment is also in a period of rapid growth.
According to Aowei data, in the third quarter of 2021, Hisense Vision ranked first in both offline and online market share (sales caliber). In terms of internal and external sales, the increase in the average price of the product promoted the domestic sales volume to maintain growth, and the marketing investment in the European Cup also drove the external sales to be good.
In addition to color TVs, the development trend of Hisense's new display business segment is also positive, with laser TVs benefiting from the cost advantage brought by large-screen displays, and product penetration and market share continuing to rise.
In addition, in recent years, under the background of consumer upgrading, people's demand for immersive large-screen movie viewing and entertainment experience is growing. Hisense is also responding to this trend by increasing its investment in research and development.
With the recent successful development of the 8K AI picture quality chip, not only has Hisense formed a comprehensive strength covering display chips, smart chips and optical chips, but also Hisense has the ability to further develop smart TV SoC chips.
For the future development plan, Yu Zhitao has said that Hisense large display industry 2025 revenue will be raised to 100 billion. He also predicted that "2022 will be the year of the inflection point of the global TV competition: out of the decades of price-performance ratio of the fight, completely into the picture quality of the fight, the quality of the fight."
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