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EXCLUSIVE:Hisense Profits Tumble After Senior Management Exit

Chinese TV and appliance brand Hisense who are struggling to lift their average selling price of their TVs has reported a record $12M loss despite lifting their revenues in Australia.

The Company that was a no show at IFA 2022 reported a profit in 2020 of $10.4M this slumped to a loss of $12.069M in 2021, with management claiming in a report to the Australian Securities and Investment Commission that the response by the Australian Government to COVID “interfered” with the Chinese Companies activities in Australia.

The lift in revenue to $412.962M in 2021 from $397.5M in 2020 was achieved in part due to the expansion of the Companies appliance range and a significant lift in the price of their TVs.
The Company has not said how many TV’s they sold in Australia in 2021.

Currently the brand is under pressure from TCL who according to Australian retailers at IFA 2022 is the brand that is set to seriously challenge Samsung, LG and Sony all brands that reported an increase in profits last year.

In 2021 Hisense management chose to give Harvey Norman a two-finger salute by removing the Toshiba brand from Harvey Norman stores in favour of a deal with The Good Guys. This is despite Harvey Norman growing the brand in Australia.

The deal was cut after Toshiba signed a deal to sell its television subsidiary to China’s Hisense.

The Japanese company sold a 95 percent stake in Toshiba Visual Solutions to Hisense Electric for $113.6 million. Toshiba kept a 5 percent stake.

The deal was cut after US consumers chose TCL TVs over Hisense in the USA market and after Sharp took action to get their brand back from the hands of Hisense management in the USA after accusing them of producing “poor quality” TV in yet another failed licencing deal.

In 2020 Hisense Australia were forced to recruit a new management team after General Manager Tania Garonzi and her husband marketing director Andre Iannuzzi quit after 15 years, with Tania joining The Good Guys as Marketing Director.

Hisense Australia are also still refusing to say, what impact the theft of $3.7M by their customer services manager, has had on the Australian Company or why they failed to report the matter to the Victorian Police Force.

In Australia Hisense has attempted to lift their profile from being a cheap Chinese TV brand running their own VIDAA U OS and Smart TV capability to trying to compete with the likes of Samsung and LG in the premium TV market.

This has led to margin erosion with stock being discounted out at retailers. They are also facing competition with Sharp re-entering the Australian market.

A senior Australian TV buyer at IFA said, “What TCL are delivering across their TV and sound range for 2023 is impressive, this will put a lot of pressure on Hisense as TCL is the number two TV in the world and this helps”.

At CES in January a senior global Hisense executive came out swinging claiming “large screen price wars” was hurting the industry and that there needed to be a bigger focus on processors in the future and not size and price.



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