Electronics

On April 28, Konka Group (SZ 000016) released its financial report for the first quarter of 2021. According to data, Konka Group's revenue in the first quarter increased by 25.8% year-on-year, and its net profit increased by 133% year-on-year. Behind the dual-core growth of revenue and profit, Konka has found the certainty of growth in the changing environment of the technology industry.

Grasping the quantification of variables, the layout of the technology industry "has a strong starting point and a well-established strategy."

Big changes unseen in a century are the main theme of today's era. For technology companies, it means finding quantification from variables: the "potential" in the big chess game in the era of technology.

In the science and technology industry, the variable lies in the increasingly fierce competition in the field of science and technology, and the rapid development of new technologies; the quantitative lies in the policy certainty of the development of the science and technology industry under the "14th Five-Year Plan" and the strategy of making the country a strong country.

Konka's growth in the first quarter of 2021 lies in its grasp of certainty.

On the one hand, the group's business is growing steadily and the business layout is starting to take off.

In the first quarter, both revenue and profit increased, setting the beginning of the "14th Five-Year Plan" for Konka Group. The report shows that Konka implements the long-term development strategy of "Technology + Industry + Park", continues to increase R&D investment and technological innovation, vigorously implements high-quality projects, closely focuses on market demand, and accelerates product optimization and upgrading. At present, Konka promotes the coordinated development of multiple businesses with the main line of development of "semiconductor technology + new consumer electronics + technology park".

On the other hand, the scientific and technological strategy is well established, aiming at cutting-edge fields, and strengthening investment in key technologies. Reflected in the financial report, Konka's R&D investment in the first quarter increased by 33% year-on-year.

The significance of the high-speed landing of the semiconductor industry in Konka is to solve the "stuck neck" problem. It is reported that the first phase of the Chongqing Konka Optoelectronics Technology Research Institute was officially put into production in Bishan District, actively carrying out the research and development, production and sales of Micro LED display technology in the core key area of the next generation of new semiconductor displays.

In the cross-cycle development of an enterprise, the winner lies in the "cross-cycle technology". Konka is behind the financial report. On the one hand, it promotes the development of C-end business with technological innovation. On the other hand, Laozi Semiconductor also aims to grasp the apex of value in the field of science and technology and realize its own "cross-cycle growth."

The success of a technology company is inseparable from market demand, its own genes, and external restrictions.

Market demand is changing, and product intelligence and technology have become the main directions. This requires companies not only to have forward-looking business layout capabilities, but also to have strong technology accumulation.

In terms of corporate genes, from the technological innovation of sterilization and fresh-keeping of white goods products to the mass production of Konka's first storage master chip, Konka's technical genes deep into the bone marrow are actually behind it.

In terms of external restrictions, the predicament of the science and technology industry is that technological innovation is becoming more and more difficult. Konka’s corresponding solution is to emancipate the mind, introduce high-end talents, and increase R&D investment. The ecological closed loop from technology to talents to industry.

Behind the malleability of the strategy landing is the characterization of innovation ability

Judging from the information in Konka's financial report, Konka's development over the years reveals a kind of malleability of strategic landing. The ability to extend its own technology and business capabilities from the strategic end to the industrial layout end, and finally to the product strength, reveals the understanding of technology, industry, and the market.

For example, on April 12, Konka won the third prize of Anhui Science and Technology Progress Award for its innovative breakthroughs in food preservation technology. Behind it is Konka's precise grasp of the demands of the C-end market:

In the context of the new era, home appliances are not just tools, but technological products that can enhance the happiness of delicate life.

After identifying the user's demands, Konka's explosive product logic is: explosive product growth = technology X supply chain X category.

At the technical level, we will accumulate technology, deepen innovation, and use technology to satisfy users' cool points. At the supply chain level, Konka + Xinfei dual brands coordinated to build a full industrial chain of white goods, strategically cooperate with core suppliers, and increase supply chain barriers. In terms of categories, the entire category developed coordinatedly, with explosive growth increasing, which detonated category growth.

For example, in 2019, through a combination of direct cooling product lines to direct air cooling, Konka created 10 explosive products, with product sales increasing by 53% and revenue by 62% year-on-year. For another example, in 2020, the annual sales volume of single-product four-door refrigerators reached 65,000 units, and the annual sales volume of 780 series products reached 348,000 units.

Behind the growth of explosive products is also the logical representation of Konka's user-centered logic from product thinking to industrial thinking.

Everyone is talking about user-centricity, but few manufacturers can really do this. What is needed behind is the accumulation of technology, industry and business.

To make better products, it is not only necessary to have a user-centered product thinking, but also to implement the product through the commercial coordination ability of the industrial layout, technology research and development chain, which is actually a kind of innovation ability:

The strategic layout has an impact on product innovation by 1% or 80%, which determines whether it can innovate better products and better services.

This is also the connotation of Konka's strategic landing and extension capabilities.

At present, competition in the technology industry is becoming more and more fierce. Only companies with real technological innovation and landing capabilities can continue to build competitive advantages.

Behind the financial report for the first quarter of 2021, Konka's capabilities in technological innovation and industrial landing are revealed. Under the 14th Five-Year Plan and the strategy of building a strong country through science and technology, it is quite worth looking forward to whether these advantages can be transformed into a victory in the future.