Core Viewpoint - Hisense is facing challenges in its home appliance segment despite revenue and net profit growth, with a need for strategic adjustments to compete effectively in a highly competitive market [1][2][8] Financial Performance - In the first half of 2025, Hisense Home Appliances reported revenue of 49.34 billion yuan, a slight increase of 1.44% year-on-year, and a net profit of 2.077 billion yuan, up 3.01% year-on-year [4][6] - The air conditioning segment remains the largest revenue contributor, generating 23.69 billion yuan, a growth of 4.1% [10][12] - The washing and refrigeration business saw revenue of 15.39 billion yuan, with a year-on-year growth of 4.8% [6] Market Position and Competition - Hisense is positioned in the second tier of the white goods market, facing intense competition from industry leaders like Midea, Haier, and Gree, which dominate nearly 70% of the air conditioning market [8][13] - The company’s growth rates in revenue and net profit are at their lowest in five years, contrasting sharply with the previous year's growth rates of 13.27% and 34.61%, respectively [8][9] Strategic Leadership Changes - The appointment of Gao Yuling as both Chairman and CEO marks a significant leadership change aimed at revitalizing the company’s growth strategy [15][17] - The introduction of experienced executives from Midea into key positions indicates a strategic shift to enhance operational efficiency and market competitiveness [14][15] International Expansion and Diversification - Hisense is focusing on international markets, with overseas revenue reaching 20.45 billion yuan, a growth of 12.34% year-on-year, particularly strong in Europe and the Americas [7][18] - The company is diversifying its product offerings, including a recent acquisition in the automotive supply chain, to explore new growth avenues [18][19] Technological Innovation - Hisense is investing in smart technology, particularly in air conditioning products, to enhance user experience and capture the younger consumer demographic [19] - The integration of AI technology into product development is seen as a critical factor for Hisense to maintain competitiveness in the evolving market landscape [19]

Group 1: Market Demand and Sales Growth - The overall transaction volume of air conditioners has increased by over 60% year-on-year from June to now, with the number of users placing orders growing by nearly 90% [1] - In July, transaction volume in Jilin, Liaoning, and Heilongjiang provinces increased by 25 times, 10 times, and 8 times respectively, with first-time buyers in these regions increasing by over 800% [1][2] - The demand for air conditioners in northern regions has surged due to high temperatures, breaking the traditional "cooler in the south, warmer in the north" pattern [2] Group 2: Supply Chain and Installation Challenges - Air conditioner manufacturers are facing new challenges in their supply chain and installation services due to the sharp increase in sales [2][3] - Companies have initiated "south-to-north" strategies to dispatch service teams to northern regions for urgent support, with installation requests in some areas increasing from around 2000 to 6000 [3] Group 3: Export Growth and International Demand - China's air conditioner exports reached 46.81 billion yuan in the first seven months of the year, a year-on-year increase of 4.9%, with exports to Europe growing by 28.9% [4] - The demand for Chinese air conditioners in Europe has surged, with Midea's sales in the European market increasing by 35% this year [5] Group 4: Product Innovation and Market Adaptation - Midea has introduced innovative products like the PortaSplit air conditioner, which is easy to install and has gained popularity in Europe, with sales exceeding 80,000 units [6] - Companies are focusing on energy-efficient and AI-driven technologies to meet the growing demand for air conditioning in Europe, where the market is rapidly transitioning to greener products [7] Group 5: Long-term Growth Potential - The International Energy Agency predicts that the number of air conditioners in the EU could double by 2050, presenting significant opportunities for Chinese manufacturers [7] - The ongoing demand for upgrades and technological advancements in air conditioning systems is expected to sustain long-term growth in the industry [7]

Company Overview - Hisense Home Appliances' stock price as of August 11, 2025, is 25.45 yuan, with a slight decrease of 0.01 yuan, representing a drop of 0.04% from the previous trading day [1] - The company reported a trading volume of 129,400 hands and a transaction value of 329 million yuan on the same day [1] Business Operations - Hisense Home Appliances specializes in the research, manufacturing, and sales of home appliances, including air conditioners, refrigerators, and washing machines [1] - The company holds a significant position in the home appliance manufacturing industry, particularly in the Guangdong region [1] Financial Performance - In the first half of 2025, Hisense Home Appliances ranked among the top ten listed companies in terms of net profit scale based on disclosed interim reports [1] - In the second quarter, the company saw new holdings from pension accounts amounting to 4.5961 million shares, which constitutes 0.50% of the circulating shares [1] Market Activity - On August 11, the net inflow of main funds into Hisense Home Appliances was 20.0563 million yuan, with a cumulative net inflow of 12.3702 million yuan over the past five trading days [1]

Investment Rating - The report maintains a recommendation for the home appliance industry [2] Core Viewpoints - The report analyzes the impact of the USMCA (United States-Mexico-Canada Agreement) and the potential risks posed by the U.S. government's tariff policies on Chinese home appliance companies operating in Mexico [6][8] - It emphasizes that the concerns regarding the USMCA's risks are primarily focused on two aspects: the potential for the U.S. government to invoke national security clauses and the upcoming review of the agreement in 2026 [6][8] - The report suggests that the short-term impact of the USMCA's implementation is limited, as many leading Chinese home appliance companies have already established significant production capacities in Mexico that comply with the agreement's rules [6][7] Summary by Sections Industry Basic Data - The home appliance industry consists of 80 listed companies with a total market value of 185.1 billion yuan and a circulating market value of 165.1 billion yuan [2] Relative Index Performance - The absolute performance of the industry over the past 1 month, 6 months, and 12 months is 0.3%, 1.1%, and 21.4% respectively, while the relative performance is -3.2%, -5.6%, and 3.0% [3] USMCA Agreement Analysis - The USMCA is designed to encourage regional production and supply chain integration, with specific rules for determining the origin of products [12][14] - The agreement provides trade benefits only to goods certified as originating from the USMCA region [12][14] - The report outlines two potential scenarios for the future of the USMCA: the continuation of the current tariff framework and the tightening of origin certification rules [55][58] Company Strategies - Leading Chinese home appliance companies like Haier, Midea, Hisense, and TCL have established substantial production capacities in Mexico, which allows them to mitigate tariff risks effectively [6][7][56] - The report highlights that these companies have the capability to meet the USMCA's origin certification requirements, thus reducing potential tariff impacts [6][7][57] - The white goods sector, particularly Haier, is expected to strengthen its market position in North America due to its localized production and supply chain flexibility [7][60] Market Dynamics - The report notes that while black goods manufacturers face challenges due to the concentration of LCD panel supply chains in Asia, they can still expand their market share through product upgrades [7][61] - The overall competitive landscape for Chinese home appliance companies has shifted from relying on cost advantages to focusing on brand development, operational efficiency, and product innovation [60]

Core Insights - Pension accounts have shown a significant investment presence in the capital market during the second quarter, appearing in the top ten shareholders of six stocks with a total holding of 51 million shares valued at 1.344 billion yuan [1][3]. Pension Holdings Distribution and Scale Characteristics - The holding structure of pension accounts at the end of the second quarter displayed a clear concentration, with Hongfa Co., Ltd. being the most held stock, where two pension fund combinations held a total of 28.22 million shares, accounting for 1.93% of the circulating shares [3]. - Other notable stocks favored by pension accounts include Jerry Holdings, Dongmu Co., Ltd., Hisense Home Appliances, Rongzhi Rixin, and Guomai Culture, with holdings of 6.27 million shares, 4.60 million shares, 3.50 million shares, and 1.93 million shares respectively [3]. - Five stocks held by pension accounts had a market value exceeding 100 million yuan, indicating a preference for sectors related to the real economy, such as power equipment, machinery, and home appliances [3]. Investment Strategy Adjustments and Changes in Holdings - Pension accounts demonstrated an active strategy of adjusting holdings in the second quarter, with three new entries and two increased holdings among the six stocks [4]. - New entries included Jerry Holdings, Hisense Home Appliances, and Guomai Culture, reflecting a positive outlook on these companies' growth prospects [4]. - Increased holdings were noted in Hongfa Co., Ltd. and Dongmu Co., Ltd., with share quantities growing by 64.93% and 43.23% respectively, indicating confidence in their long-term value [4]. - Rongzhi Rixin, the longest-held stock by pension accounts, maintained a holding of 3.50 million shares despite a 5.41% decrease from the previous quarter, representing the highest holding ratio at 4.04% of circulating shares [4]. - The distribution of the six stocks held by pension accounts included four from the main board and one each from the Sci-Tech Innovation Board and the Growth Enterprise Market, showcasing a balanced approach between stability and growth potential [4].

Core Viewpoint - Hisense Home Appliances reported disappointing half-year results, marking the lowest revenue growth in six years and the lowest net profit growth in three years, raising concerns about the company's performance under the new leadership of Gao Yuling [1][2][12]. Financial Performance - In the first half of 2025, Hisense Home Appliances achieved revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit attributable to shareholders of 2.077 billion yuan, up 3.01% year-on-year [1]. - The air conditioning segment, which contributed 48.02% of total revenue, saw revenue growth slow to 4.07% from 7.59% in the previous year, with product gross margin declining by 1.56% [1][5]. Management Changes - Gao Yuling was appointed as the new chairman of Hisense Home Appliances, taking over from Dai Huizhong, and also assumed the role of president following the resignation of Hu Jianrong [4][5]. - The company announced several key personnel changes, including the appointment of Yin Bitong and Fang Xueyu to the new management team [4]. Market Competition - The home appliance market is becoming increasingly competitive, with Hisense facing challenges from both established brands like Gree and Midea and emerging players like Xiaomi, particularly in the online sales channel [7][8]. - Hisense's online market share for air conditioning products has declined, while its offline market share has improved, indicating a significant gap in e-commerce performance compared to competitors [7][8]. Regional Performance - In the first half of 2025, domestic revenue decreased by 0.31% year-on-year, while international revenue grew by 12.34%, but at a slower rate than the previous year [9]. - The gross margin for domestic sales fell by 0.06%, reflecting broader challenges in both domestic and international markets [9]. Investor Sentiment - Following the release of the half-year report, Hisense's stock price dropped by 5.5%, with several major shareholders reducing their stakes in the company, indicating a shift in market confidence [11][12].

Core Viewpoint - Hisense Home Appliances has reported disappointing financial results for the first half of 2025, with the lowest revenue growth in six years and the lowest net profit growth in three years, raising concerns about the company's future under the leadership of its new chairwoman, Gao Yuling [2][3]. Financial Performance - In the first half of 2025, Hisense Home Appliances achieved revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit attributable to shareholders of 2.077 billion yuan, up 3.01% year-on-year [2]. - The air conditioning segment, which contributed 48.02% of total revenue, saw a revenue growth of 4.07%, down from 7.59% in the same period last year, with product gross margin declining by 1.56% [6][11]. Management Changes - Following the resignation of former chairman Dai Huizhong, Gao Yuling was appointed as the new chairman and also took on the role of president, amidst significant management changes including the resignation of other key executives [5][12]. - The appointment of new management, including former Midea Group vice president Yin Bitong, aims to enhance the company's strategic direction and operational efficiency [5][8]. Market Challenges - The competitive landscape in the home appliance market has intensified, with Hisense struggling to keep pace with rivals like Gree and Midea, particularly in online sales channels [11][12]. - Data indicates that while Hisense's offline market share increased, its online market share decreased by 0.33% in the first half of 2025, highlighting a significant weakness in e-commerce performance [9][11]. Shareholder Sentiment - Following the release of the half-year report, Hisense's stock price fell by 5.5%, reflecting a negative market sentiment, with several major shareholders reducing their stakes in the company [12][13]. - Notable reductions in shareholdings were reported from entities such as Hong Kong Central Clearing Limited and the National Social Security Fund, indicating a lack of confidence in the company's future performance [12][14].

Group 1 - MSCI China Index added 14 new stocks, including companies like 3SBio (01530), CITIC Financial Assets (02799), Horizon Robotics (09660), and others, reflecting strong performance in sectors such as technology, innovative pharmaceuticals, and new consumption [1][2] - The changes will take effect after the market closes on August 26, with 17 stocks being removed from the index, including Hisense Home Appliances (00921) and Zhongsheng Holdings (00881) [2][5] - The new additions are expected to attract more incremental capital to the related listed companies [1] Group 2 - The MSCI Global Standard Index added 42 stocks and removed 56 stocks, with the largest new additions in developed markets being Rocket Lab (USA), SoFi Technologies (USA), and Affirm Holdings (USA) [8] - In the emerging markets index, the top three new constituents include CITIC Bank, Dian Swastatika Sentosa, and Laopuhuangjin [8]

Core Viewpoint - MSCI announced the results of its August index quarterly review, which includes the addition and removal of several stocks in the MSCI China Index, reflecting recent strong performance in sectors such as technology, innovative pharmaceuticals, and new consumption [1]. Summary by Category Additions to MSCI China Index - 14 stocks were added to the MSCI China Index, including notable companies such as: - Lao Pu Gold (06181) - WuXi AppTec (02268) - Meitu (01357) - NetEase Cloud Music (09899) - 3SBio (01530) - Horizon Robotics (09660) - Global Data (09698) - Kintor Pharmaceutical (06990) - 5 additional A-shares including: - Zhinan (300803.SZ) - CITIC Bank (601998.SH) - Giant Network (002558.SZ) - Ailis (688578.SH) - Jingwang Electronics (603228.SH) [1][3][5]. Removals from MSCI China Index - 17 stocks were removed from the MSCI China Index, including: - Hisense Home Appliances (00921) - Zhongsheng Holdings (00881) - Yingjia Wine (603198.SH) - Oriental Yuhong (002271.SZ) - 13 additional stocks including: - Supor (002032.SZ) - Chihong Zn & Ge (600497.SH) - Morning Light Co. (603899.5H) - and others [1][3][5]. Global Index Changes - The MSCI Global Standard Index added 42 stocks and removed 56 stocks, with the largest new additions being Rocket Lab (USA), SoFi Technologies (USA), and Affirm Holdings (USA) [5]. - The top three new additions to the MSCI Emerging Markets Index include CITIC Bank, Dian Swastatika Sentosa, and Lao Pu Gold [5].

Core Viewpoint - The announcement details the cash dividend distribution plan for the fiscal year 2024 of Hisense Home Appliances Group Co., Ltd, confirming a fixed cash dividend of 12.30 yuan per 10 shares for eligible A-share shareholders [1][2][3]. Summary by Sections Dividend Distribution Plan - The profit distribution plan approved at the 2024 annual general meeting includes only cash dividends, with no stock dividends or capital reserves being converted into share capital [2][6]. - The total number of shares eligible for the dividend distribution is 924,525,456 A-shares, calculated from the total A-share capital of 925,271,363 shares minus 745,907 shares held in the repurchase account [2][5]. Dividend Amounts - The total cash dividend amount to be distributed is 1,137,166,310.88 yuan, calculated as 924,525,456 shares multiplied by 12.30 yuan per 10 shares [2][6]. - The per-share cash dividend, based on the total A-share capital, is approximately 1.2290084 yuan per share [2][6]. Key Dates - The record date for the dividend distribution is set for August 14, 2025, and the ex-dividend date is August 15, 2025 [8][9]. Dividend Distribution Method - Cash dividends will be distributed through the China Securities Depository and Clearing Corporation Limited, Shenzhen Branch, directly into the accounts of eligible shareholders [10][11]. - The company will bear all legal responsibilities for any discrepancies in the cash dividends due to changes in shareholders' accounts before the record date [12]. Additional Information - The announcement confirms that the dividend distribution plan aligns with the principles approved at the annual general meeting, ensuring that the per-share distribution amount remains fixed [6][7].