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Color TV industry is in a downturn, Konka's performance is growing against the trend
In the home appliance industry, many are familiar with the downturn that has been affecting the sector since last year, especially in the color TV market. With a saturated domestic market and an oversupply of products, numerous brands have struggled with continuous losses. However, recent reports reveal an unexpected success story: Konka, a long-standing Chinese brand, has seen a remarkable 32.49% increase in sales. This achievement stands out in an otherwise challenging environment.
Konka, a household name for decades, has always been known for its quality and reliability. I still remember having a Konka TV at home that has been in use for over ten years without any issues. Its strong brand reputation and durable products have left a lasting impression on consumers.
According to Konka's previous earnings report, the company saw a 32.49% growth in 2017 compared to the previous year, ranking first among listed domestic color TV companies. Despite the overall decline in the color TV market, Konka managed to thrive. The key lies in its diversified strategy—rather than sticking solely to traditional home appliances, Konka has expanded into internet services, financial businesses, and more. These efforts have helped turn performance into profit, enabling significant growth.
Importantly, Konka hasn't abandoned its core home appliance business. Instead, it has used the development of other sectors to drive improvements in its main operations. Today, its internet business complements the color TV segment, creating a synergistic effect. This is evident from the semi-annual report, which shows that despite a 25% overall decline in the industry, Konka’s large-screen TV division achieved a 2.5% growth—an impressive feat in such a tough climate.
While 2.5% might seem modest, it’s a rare achievement in this so-called "cold winter" for the home appliance industry. It’s inspiring to see an old brand like Konka not only survive but also adapt and grow. Their commitment to innovation while maintaining their roots is truly commendable.
Many believe that Konka’s new ventures are strong enough to carry more of the company's performance. This kind of balanced growth is what many companies strive for, but Konka has managed to do it without neglecting its traditional business. They’re continuously upgrading their low-margin products, showing a deep sense of responsibility toward the home appliance industry.
Since 2016, Konka has been developing its financial business, which is closely tied to its color TV operations. By extending the value chain of its TVs, Konka has created a more efficient and profitable system, transforming logistics into capital flow and profit flow. This strengthens the entire color TV supply chain.
The internet business, launched in 2015, has also been a major success. Leveraging its existing user base, Konka has generated over 100 million yuan in annual revenue through this channel. It's clear that Konka is not just focusing on one area—it's building a comprehensive ecosystem.
There are signs that Konka is strengthening its core color TV business while expanding into new areas. From innovative products to fresh ideas around home appliances, the brand is showing a promising future. Let’s hope more domestic brands can follow in Konka’s footsteps, continuing to deliver excellent quality that we all recognize and appreciate.