LeTV.com said that in the first two months of 2017, due to the negative impact of the liquidity of related companies, the company's performance growth has slowed down; as the company introduced strategic investors, China and the second largest shareholder, especially After its funds were gradually put in place, the company's operations and performance have started to pick up in March. In addition, the performance of the first quarter will not have a significant impact on the company's 2017 annual growth. LeTV is the leader of China's Internet TV new army. In April last year, it used the “hardware free†marketing propaganda to drastically increase sales. At the end of last year, the growth rate slowed down due to the tight financial crisis of affiliated companies, and once said that it abandoned the hardware subsidy model. . Now that the performance of the major shareholder LeTV is getting warmer, will its hardware free mode continue? Analysts believe that the LeTV hardware free model will shrink this year. During the LeTV TV new product launch conference on March 29 this year, LeTV's new president Liang Jun and other executives emphasized the expansion of high-end products, offline channels and B2B in the media interview. Liang Jun said at the time that LeTV locked the city's white-collar consumers. "When it comes to pricing, we still don't rely on hardware to make money in the next three-year strategy. The future profits will depend on ecological operations, and the ecological operations will be fast. The development and the large amount of income come in, the hardware changes, from the past losses to the gradual reduction of losses." This means that LeTV's subsidies on TV hardware will be reduced this year. In fact, the price of LeTV's 40- and 43-inch TVs has increased slightly due to the increase in upstream panel prices. Dong Wei, vice president of Aowei Cloud Network, told the First Financial Reporter that LeTV is LeTV's high-quality business. “Compared with the tight capital chain, the price of TV panels for 11 months has risen unilaterally, and supply and demand are scarce. The impact on LeTV will be even greater." "From the current point of view, the sales volume of LeTV in March increased by more than 30% from the previous month, and it has stabilized to a certain extent. At present, most of the funds are in place, and the supply and demand situation of the panel has changed. In addition, companies such as Xinli and Compal Through the 'debt-to-equity swap', the company's shares have been revitalized, and in general, LeEco's internal and external funds have been eased, and the operating environment has improved." Dong Min said. Dong Min believes that hardware profitability and operating profitability are two business models of the color TV industry. They can be independent and complementary, but they are not necessary trade-offs. Of course, the industry is tilting and developing from a single hardware profit to operational profitability. In addition, "Lesson's previously launched hardware is free, just a promotional tool, not a business model." Ovi predicts that the chance of subverting the color TV industry will become greater this year. Dong Min said that this is mainly due to the diversification of the competitive dimension, the contest of new technologies, the contest of marketing models, the contest of channel cooperation, and the contest of supply resources. New products are just one of the aspects of competition, and many aspects of intensive work can seize the opportunity. Zhang Bing, director of R&D at IHS China, believes that last year, LeTV's TV sales totaled more than 5 million units, slightly lower than the original target of 6 million units, mainly due to the impact of LeTV's tight financial situation in the fourth quarter. LeTV is still in the adjustment period in the first three months of 2017. LeTV's acquisition of VIZIO in the United States has been rumored to be aborted. Domestic "4.14" promotion this year is not as strong as last year's marketing efforts. In Zhang Bing's view, unlike the low price of speculation last year, this year's LeTV's release pays more attention to high-end products and brands. Therefore, in the first half of this year, LeTV can stabilize the sales of color TVs last year. "Hardware free is just a promotion method." Zhang Bing said that whether the color TV is hardware or content, it must cost, and someone must pay the bill. At present, color TV hardware is free. In the future, the cost of membership services will be recovered annually, and now it is necessary to pay TV manufacturers to the upstream suppliers. This requires a strong capital capability. "LeTV will shrink this mode." Zhang Bing expects that the overall sales of emerging Internet TV brands will remain stable or slightly increase this year. The growth rate of LeTV and Xiaomi will slow down, while micro-whales, PPTVs and storms will increase. This year, the overall domestic color TV market sales will increase slightly, and the overall sales of traditional color TV brands will be good.
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LeTV's first-quarter results pre-increased over 100 million TV hardware free mode will shrink
Electronic enthusiasts eight o'clock: At noon on April 10, LeTV (300104.SZ) released its first-quarter results forecast, expecting net profit attributable to shareholders of listed companies in the first quarter of this year to be about 103 million to 132 million yuan. The change in the same period last year was -10% to 15%.