Group 1 - Midea Group reported a total revenue of 409.1 billion yuan for 2024, marking a year-on-year increase of 9.5%, and a net profit of 38.5 billion yuan, up 14.3% [3] - The company plans to distribute a cash dividend of 35 yuan per 10 shares, totaling 26.7 billion yuan, which is nearly 30% higher than the previous year, and the dividend payout ratio is close to 70% of net profit [3] - Midea's revenue growth has accelerated, surpassing 400 billion yuan in just three years since reaching 300 billion yuan in 2021 [3] Group 2 - Hisense Home Appliances achieved a revenue of 92.746 billion yuan in 2024, reflecting an 8.35% year-on-year growth, with a net profit of 3.348 billion yuan, up 17.99% [4] - The company plans to distribute a cash dividend of 12.3 yuan per 10 shares, which is a 21.42% increase compared to the previous year [4] - Both companies attribute their strong revenue and profit growth to successful international expansion efforts [5] Group 3 - Hisense's overseas revenue exceeded 35.6 billion yuan, growing by 28%, with significant increases in various regions including Europe and the Americas [5] - Midea's OBM (Own Brand Manufacturer) revenue accounted for 43% of its smart home overseas business, with exports to over 200 countries and regions, making it the top brand in global smart appliance sales for 2024 [5]

Financial Performance - In 2024, Hisense achieved a revenue of 92.746 billion RMB, representing a year-on-year growth of 8.35%[12] - The net profit attributable to shareholders reached 3.348 billion RMB, with a growth rate of 17.99%[12] - The compound annual growth rate (CAGR) for revenue over the past decade was 16%, while the CAGR for net profit was 21%[12] - Hisense Home Appliances reported a revenue of ¥92.75 billion in 2024, an increase of 8.35% compared to ¥85.60 billion in 2023[29] - The net profit attributable to shareholders reached ¥3.35 billion in 2024, reflecting a growth of 17.99% from ¥2.84 billion in 2023[29] - The basic earnings per share increased to ¥2.46 in 2024, up 18.27% from ¥2.08 in 2023[29] - The total operating revenue for 2024 reached ¥92.75 billion, an increase of 8.35% compared to ¥85.60 billion in 2023[100] - The manufacturing sector contributed ¥83.62 billion, accounting for 90.16% of total revenue, with a year-on-year growth of 8.66%[100] - The HVAC segment generated ¥40.28 billion, representing 43.43% of total revenue, with a growth of 4.22% year-on-year[100] - Overseas revenue increased significantly by 27.59% to ¥35.63 billion, while domestic revenue decreased by 2.12% to ¥47.99 billion[100] Dividend and Shareholder Returns - The company implemented a cash dividend of 12.30 RMB per 10 shares, based on a total share capital of 1,385,264,498 shares[3] - The company plans to increase the dividend per share to ¥1.23 in 2024, a year-on-year increase of 21.4%[21] - The company has cumulatively distributed approximately ¥5.05 billion in dividends to shareholders over the past ten years[21] - The company has returned approximately 5.05 billion yuan to minority shareholders over the past decade, increasing the dividend payout ratio from 30% to 50% in 2022[162] - The company has repurchased A-shares worth 550 million yuan by 2024 to support employee stock ownership plans, reinforcing long-term incentives[162] Market Expansion and Sales Growth - Overseas revenue exceeded 35.6 billion RMB, marking a 28% increase year-on-year, with the market share of Hisense refrigerators in Europe reaching 10.3% and in South Africa surpassing 34%[17] - The home air conditioning business achieved online and offline retail sales growth of 10.8% and 21.2% respectively in 2024, surpassing industry growth rates[53] - Hisense's refrigerator retail sales increased by 21% year-on-year in 2024, with market share rising by 0.8 percentage points[58] - In 2024, the overseas white goods revenue of the company increased by 36% year-on-year, with improved sales structure and profitability[74] - In the European region, the white goods business revenue grew by 35% year-on-year, with refrigerator sales up by 23% and market share increasing by 2.3 percentage points to 10.3%[75] - In the Americas, the appliance revenue surged by 46.5% year-on-year, with refrigerator sales increasing by 70.7% and washing machine revenue up by 70%[76] - The Middle East and Africa region saw a revenue increase of 27% year-on-year, with refrigerator sales growing by 19.7% and air conditioning revenue up by 27%[77][78] - The Asia-Pacific region's revenue grew by 15% year-on-year, focusing on air conditioning, washing machines, and kitchen appliances[79] - The ASEAN region's revenue increased by 32% year-on-year, with air conditioning revenue up by 45% and washing machine revenue growing by 58.2%[80] Innovation and Technology Development - The company launched a new air conditioning product, the "AI Air Butler," which focuses on personalized indoor air quality, achieving the highest sales and revenue in the industry[14] - Hisense's digital transformation efforts led to a 37.59% reduction in material numbers and a 25.8% decrease in order fulfillment cycle time[18] - The "ECO-B Smart Building System" was developed to enhance green and intelligent living environments[15] - Hisense's Yellow Island factory was recognized as a global "Lighthouse Factory," being the first in the world for multi-connected central air conditioning[20] - The company committed to achieving carbon peak by 2026 and carbon neutrality by 2050, aligning with national dual carbon strategies[20] - The company continues to focus on technology innovation, establishing multiple research centers and achieving breakthroughs in low-carbon, intelligent, and health-oriented technologies[86] - The company achieved a 36% energy efficiency improvement in air conditioning systems through innovative technologies, including precise temperature control and a wide operating temperature range from -36℃ to 66℃[88] - In the refrigerator segment, the company introduced a vacuum magnetic field preservation technology that maintains fresh meat for up to 7 days, while achieving a 30% increase in overall energy efficiency to meet European A-level standards[89] Corporate Governance and Management - The company has implemented 22 leadership principles to enhance the strategic execution capabilities of its management team[97] - The company aims to build a world-class enterprise and brand, driving organizational transformation and employee growth[98] - The company is focusing on enhancing its governance structure with the appointment of new independent directors and financial leadership[171] - The financial head, Sun Changchun, has a background as a senior accountant, indicating a strong focus on financial management[178] - The company is actively restructuring its board to align with strategic goals and improve oversight[171] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 1,968.80 million[186] - The chairman, Gao Yuling, received a pre-tax remuneration of CNY 235.66 million[186] - The president and director, Hu Jianrong, received a pre-tax remuneration of CNY 406.13 million[186] Strategic Initiatives and Future Plans - The company aims to achieve a sustainable and healthy development by advancing its green and low-carbon transformation initiatives[140] - The company plans to implement stock incentive and employee shareholding programs to align the interests of stakeholders and improve operational performance[147] - The company is focusing on expanding its market presence and enhancing product development strategies[195] - The company is set to appoint a new auditing firm for the 2024 fiscal year[196] - The company is revising its articles of association and shareholder meeting rules[196] - The company plans to conduct a risk assessment report for financial business deposits at Hisense Group Financial Co., Ltd.[198] Challenges and Risks - The company recognizes risks such as macroeconomic fluctuations, rising costs, and trade protectionism that could impact its operations and profitability[140]

Financial Performance - The total operating revenue for the year 2024 reached RMB 92.75 billion, an increase of 8.5% compared to RMB 85.60 billion in 2023[7]. - The total operating costs for 2024 were RMB 88.81 billion, up from RMB 81.46 billion in 2023, reflecting a growth of 9.5%[7]. - The net profit attributable to the parent company for 2024 was RMB 11.30 billion, up from RMB 9.36 billion in 2023, showing a growth of 20.8%[6]. - Operating profit for the period was RMB 5,679,142,269.33, an increase from RMB 5,248,016,394.49 in the previous period, representing a growth of approximately 8.2%[8]. - Total profit amounted to RMB 5,966,389,023.89, compared to RMB 5,684,557,420.82 in the prior period, reflecting an increase of about 5.0%[8]. - The net profit attributable to shareholders of the parent company reached RMB 3,347,881,773.89, up from RMB 2,837,322,754.58, indicating a growth of approximately 18.0%[9]. - Basic and diluted earnings per share were both RMB 2.46, compared to RMB 2.08 in the previous period, marking an increase of around 18.3%[9]. - The total comprehensive income attributable to the parent company's owners was RMB 3,321,630,998.81, compared to RMB 2,943,053,128.82, showing an increase of about 12.8%[9]. - The company reported a decrease in other comprehensive income after tax, with a net amount of RMB -10,567,861.70 compared to RMB 107,901,029.90 in the previous period[9]. - The net profit for the year was RMB 5.97 billion, a rise from RMB 5.68 billion in 2023, indicating a growth of 5.1%[17]. - The company's total assets increased by 5.69% year-on-year to approximately RMB 69.70 billion by the end of 2024[6]. - The company's debt-to-asset ratio increased to 72.20% as of December 31, 2024, compared to 70.59% in 2023[117]. Research and Development - Research and development expenses increased significantly to RMB 3.45 billion in 2024, compared to RMB 2.78 billion in 2023, marking a rise of 24%[7]. - The company aims to enhance product competitiveness through breakthroughs in core technologies and innovative design[109]. - The company is committed to a digital transformation of its manufacturing processes, utilizing AI to enhance smart manufacturing capabilities and reduce costs[111]. Market Expansion and Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[7]. - The company aims to enhance profitability by aggressively developing overseas markets and leveraging its resources, including overseas R&D centers and talent support[110]. - The company plans to strengthen its brand and marketing capabilities to boost domestic sales, particularly through sponsorship of the World Cup, aiming to increase market share in mid-to-high-end products[110]. - The company is focused on expanding its international marketing efforts through Hisense International Marketing Co., Ltd.[126]. Product Performance and Innovation - The company is engaged in the research, manufacturing, and marketing of various home appliances, including refrigerators and air conditioning systems, indicating a focus on product innovation and market expansion[12]. - Hisense's new air conditioning products achieved the highest sales volume and revenue in the industry for 2024, with the C3 series leading the market[61]. - The washing machine segment achieved a global shipment ranking of third in China and the fastest growth among the top 10 brands[69]. - Hisense's kitchen appliance business achieved a year-on-year growth of 72%, with high-end product sales increasing by 110%[71]. - The "Brilliant" high-end series saw a year-on-year growth of 52%, with a 120% increase driven by the trade-in policy[76]. Financial Management and Risks - The company faces risks from macroeconomic fluctuations, rising costs, currency exchange rate volatility, and trade protectionism, which could impact demand and profitability[112]. - The company has implemented financial instruments to hedge against currency exchange rate risks associated with foreign currency transactions[115]. Dividend and Shareholder Information - The board proposed a cash dividend of RMB 12.30 per 10 shares, subject to approval at the 2024 annual general meeting, with a total distribution of approximately RMB 1,703,875,332.54[113][114]. - Hisense achieved a significant market presence with approximately 37.28% of shares held by Hisense Air Conditioning[126].

摘要 广发证券 新消费主义研究 20250318 Q&A 2025 年 1-2 月份服装家纺终端数据表现如何？整体消费趋势如何？ 2025 年 1-2 月份，限额以上企业服装鞋帽针纺织品零售额同比增长了 3.3%，而 全国实物商品网上零售额则累计下降了 0.6%。这一增长率好于 2024 年 11 月的 下降 4.5%和 12 月的下降 0.3%。相比之下，2024 年同期限额以上企业服装鞋帽 针纺织品零售额同比增长为 1.9%，并非低基数。因此，我们认为服装家纺消费 有所回暖。从结构上看，线下零售表现优于线上。此外，从上市样板公司的情 • 服装家纺消费回暖，线下零售优于线上，轩辕装及童装、专业运动休闲龙 头公司领跑。预计 2025 年受益于低基数，业绩有望逐季加速，多数公司估 值处于历史低位，上游纺织制造板块增速预期不如去年。 • 超高分子量聚乙烯（UHMWPE）需求预计以每年约 20%速度增长，应用场景 持续拓展，国内行业起步晚但发展空间广阔。建议关注涉及 UHMWPE 材料的 公司，如南山智尚、恒辉安防等。 • 呼和浩特市育儿补贴政策对童装市场形成利好，全国已有约 33 个省市县出 台类似政策。2021 ...

Summary of Conference Call on Home Appliance Industry Industry Overview - The conference call primarily discusses the home appliance industry in the context of recent government policies aimed at boosting consumer spending in 2025 [2][3][12]. Key Points and Arguments 1. **Government Policies**: The Chinese government has introduced measures to stabilize the stock and real estate markets, increase minimum wage standards, and allocate 300 billion yuan for long-term mergers and acquisitions to support home appliance subsidies [2][4]. 2. **Support for Home Appliance Sector**: The home appliance industry will receive 300 billion yuan in special government bonds in 2025, doubling the amount from 2024, with the addition of four new product categories [2][4]. 3. **Market Performance**: The home appliance sector showed strong performance in January and February 2025, with air conditioning installation growth rates of 6%-8%, surpassing the normal growth of 3%-5% [5][7]. 4. **Sales Improvement**: March 2025 saw significant month-on-month sales improvements, aided by effective two-wheeler subsidies, with average subsidies ranging from 600 to 800 yuan [5][6]. 5. **Price Increases**: There has been a noticeable increase in the price range for standard products, with prices rising by approximately 10%-20% [6][12]. 6. **Performance of Leading Companies**: Major white goods companies like Midea are expected to achieve double-digit growth in Q1 2025, indicating positive consumer sentiment and stable end-consumer demand [7][9]. 7. **Valuation Insights**: Midea has the highest certainty in performance, while Gree Electric and Hisense have significant potential for valuation recovery, with Gree's valuation currently below 7 times earnings [9][11]. 8. **Investment Recommendations**: The call suggests actively investing in leading white goods companies due to their strong performance and recovery potential, particularly Midea, Gree, and Hisense [9][12]. 9. **Two-Wheeler Market Growth**: Leading two-wheeler companies like Yadea and Aima are projected to grow by 25%-30% in 2025, benefiting from new policies and market conditions [10][15]. 10. **Consumer Confidence**: The introduction of consumer promotion policies is expected to restore consumer confidence, positively impacting spending and market dynamics [12][16]. Other Important Insights - **Long-term Growth Potential**: The home appliance and two-wheeler industries are seen as relatively mature, with stable market structures and continuous performance growth expected [11][12]. - **Focus on Innovation**: Companies like Anker Innovations are highlighted for their strong global presence and AI product development, indicating a trend towards technological advancement in the industry [13][14]. - **Market Trends**: The call emphasizes the importance of monitoring consumer sentiment and market conditions, as these factors will significantly influence investment strategies in the home appliance sector [12][16]. This summary encapsulates the key insights and recommendations from the conference call regarding the home appliance industry and its investment landscape for 2025.

Financial Performance - The company's operating revenue for Q3 2024 was ¥21,937,415,143.08, a decrease of 0.08% compared to the same period last year[3] - Net profit attributable to shareholders was ¥777,159,401.39, down 16.29% year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥586,117,603.68, a decline of 26.67% compared to the previous year[3] - Total operating revenue for Q3 2024 reached CNY 70.58 billion, an increase of 8.6% compared to CNY 64.90 billion in Q3 2023[14] - Net profit attributable to the parent company for Q3 2024 was CNY 1.42 billion, compared to CNY 1.25 billion in Q3 2023, marking a growth of 13.6%[14] - The total operating profit for Q3 2024 was approximately CNY 4.57 billion, an increase from CNY 4.45 billion in Q3 2023, reflecting a growth of about 2.6%[15] - Net profit attributable to shareholders of the parent company reached CNY 2.79 billion, up from CNY 2.43 billion in the same period last year, representing an increase of approximately 15.1%[15] - The total comprehensive income for Q3 2024 was CNY 4.06 billion, compared to CNY 3.99 billion in Q3 2023, indicating a growth of about 1.9%[15] Assets and Liabilities - Total assets at the end of the reporting period reached ¥68,561,423,626.50, an increase of 3.97% from the end of the previous year[3] - The total assets of the company increased to CNY 68.56 billion in Q3 2024, up from CNY 65.95 billion in Q3 2023, representing a growth of 3.4%[13] - The total liabilities rose to CNY 50.24 billion in Q3 2024, compared to CNY 46.55 billion in Q3 2023, indicating an increase of 7.3%[13] Shareholder Information - Shareholders' equity attributable to the parent company was ¥14,791,920,303.42, up 8.92% year-on-year[3] - The total number of common shareholders at the end of the reporting period is 28,738[8] - Qingdao Hisense Air Conditioning Co., Ltd. holds 37.28% of shares, totaling 516,758,670 shares[9] - The company has a total of 33.11% shares held by Hong Kong Central Clearing Limited (agent), totaling 458,957,527 shares[9] - The company has a total of 0.98% shares held by the National Social Security Fund 101 Portfolio, totaling 13,590,932 shares[9] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥5,207,590,143.69, down 40.15% year-on-year[7] - Cash flow from operating activities amounted to CNY 61.62 billion, an increase from CNY 56.52 billion in the previous year, showing a growth of approximately 9.4%[17] - Cash flow from investing activities resulted in a net outflow of CNY 1.25 billion, an improvement from a net outflow of CNY 8.86 billion in the same period last year[17] - Cash flow from financing activities showed a net outflow of ¥4,518,823,224.07, primarily due to increased repayments of loans and stock buybacks[7] - Cash flow from financing activities showed a net outflow of CNY 4.52 billion, compared to a net outflow of CNY 0.18 billion in Q3 2023, indicating a significant increase in cash outflow[18] Expenses - The basic and diluted earnings per share were both ¥0.57, a decrease of 17.39% compared to the same period last year[3] - Research and development expenses for Q3 2024 were CNY 2.47 billion, significantly higher than CNY 1.92 billion in Q3 2023, reflecting a year-on-year increase of 28.8%[14] - The company reported a decrease in tax expenses to CNY 319.76 million in Q3 2024 from CNY 446.45 million in Q3 2023, a reduction of 28.4%[14] Current Assets - The total current assets amount to 49,243,705,036.80 RMB, an increase from 45,139,919,481.27 RMB at the beginning of the period[11] - Cash and cash equivalents decreased to 4,760,576,869.76 RMB from 4,939,273,198.62 RMB[11] - Trade receivables increased to 10,221,764,046.37 RMB from 9,225,321,882.07 RMB[11] - Inventory decreased to 5,645,993,412.86 RMB from 6,774,603,438.00 RMB[11] - Long-term equity investments increased to 1,837,045,383.94 RMB from 1,671,365,117.46 RMB[11] - The company reported a significant increase in trading financial assets to 15,540,453,733.72 RMB from 13,192,025,535.87 RMB[11] Other Comprehensive Income - The company experienced a decrease in other comprehensive income, with a net amount of CNY -105.39 million compared to CNY 24.03 million in the previous year[15]

Financial Performance - The operating revenue for the third quarter of 2024 was RMB 21,937,415,143.08, representing a decrease of 0.08% compared to the same period last year[4]. - The net profit attributable to shareholders was RMB 777,159,401.39, down 16.29% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 586,117,603.68, a decrease of 26.67% compared to the previous year[4]. - The basic earnings per share for the quarter was RMB 0.57, reflecting a decline of 17.39% year-on-year[4]. - The weighted average return on equity was 5.37%, down 1.94 percentage points from the previous year[4]. Assets and Equity - The total assets at the end of the reporting period amounted to RMB 68,561,423,626.50, an increase of 3.97% from the end of the previous year[4]. - The equity attributable to shareholders was RMB 14,791,920,303.42, up 8.92% compared to the end of the previous year[4]. Cash Flow - The net cash flow from operating activities for the year-to-date was RMB 5,207,590,143.69, showing a significant decrease of 40.15% year-on-year[4]. - Cash flow from operating activities decreased by 40.15% to approximately ¥5.21 billion, influenced by inventory stocking patterns and increased performance bonuses[8]. - Cash received from other investment activities increased by 84.39% to approximately ¥25.62 billion, mainly due to the maturity of financial products[8]. - Cash flow from financing activities showed a net outflow of approximately ¥4.52 billion, primarily due to loan repayments and stock buybacks[8]. Receivables and Investments - Accounts receivable decreased by 32.23% to approximately ¥502.63 million due to a reduction in commercial acceptance bills[7]. - Financing receivables increased by 30.14% to approximately ¥6.04 billion, primarily due to an increase in bank acceptance bills[7]. - Other receivables surged by 167.59% to approximately ¥390.15 million, mainly due to increased dividend receivables from subsidiaries[7]. - Investment properties rose by 51.74% to approximately ¥270.07 million, attributed to an increase in apartments rented out by subsidiaries[7]. Shareholder Information - The total number of common shareholders at the end of the reporting period was 28,738, with the top ten shareholders holding significant stakes[9]. - Qingdao Hisense Air Conditioning Co., Ltd. held 37.28% of shares, while Hong Kong Central Clearing (Agent) Ltd. held 33.11%[9]. - The controlling shareholder, Hisense (Hong Kong) Co., Ltd., holds 124.45 million H shares, accounting for 8.98% of the total shares of the company[11]. - There were no changes in the participation of major shareholders in the securities lending business compared to the previous period[12]. Corporate Governance - The company has not made any retrospective adjustments or restatements of previous years' accounting data[3]. - The company’s board of directors includes six executive directors and three independent non-executive directors as of the announcement date[13]. Future Plans - The company plans to continue expanding its investment in long-term assets, as indicated by a 64.29% increase in cash paid for fixed assets and intangible assets[8].

Market Performance - In the first half of 2024, the central air conditioning market in China saw a decline of 5% in overall market capacity, with multi-split systems accounting for nearly 50% of the market share [5]. - The retail volume of the air conditioning market decreased by 10.8% year-on-year, while the retail value dropped by 13.7% in the same period [6]. - The domestic refrigerator market experienced a retail volume increase of 0.8% and a retail value increase of 0.4% in the first half of 2024 [7]. - The washing machine market saw a retail volume growth of 6.2% and a retail value growth of 3.8% in the first half of 2024 [8]. - The export volume of refrigerators increased by 23%, washing machines by 22%, and air conditioners by 30% in the first half of 2024 compared to the previous year [12]. Smart Home Appliances - The smart home appliance market showed significant growth, with retail sales of smart major appliances, smart kitchen appliances, and smart environmental appliances increasing by 5.3%, 4.8%, and 15.7% respectively [11]. - The penetration rate of offline fresh air air conditioners reached 8.6%, marking a year-on-year increase of 0.6% [6]. - The online retail volume of refrigerators on Douyin e-commerce grew by 52.5% year-on-year, indicating a rapid growth in new online channels [7]. - The demand for embedded refrigerators has been increasing, with offline retail volume penetration rising from 9.5% in 2021 to 37.8% in 2024 [7]. Financial Performance - The company's revenue for the reporting period reached ¥48.64 billion, a year-on-year increase of 13.27% compared to ¥42.94 billion in the same period last year [43]. - Net profit attributable to shareholders was ¥2.02 billion, reflecting a significant year-on-year growth of 34.61% from ¥1.50 billion [43]. - The company achieved a 48% year-on-year revenue growth in the high-end product series during the first half of 2024, with 383 new experiential zones established [30]. - The company's gross margin improved by 2.5 percentage points year-on-year in the first half of 2024 [29]. - The company reported a significant increase in R&D expenses, totaling CNY 1.64 billion, which is a 32.2% rise from CNY 1.24 billion in the previous year [116]. Operational Efficiency - The company improved manufacturing efficiency, with a 5.3% year-on-year increase in UPPH and a 4.4% reduction in manufacturing costs per unit [29]. - The company’s inventory turnover improved by 12% in the first half of 2024, enhancing capital efficiency [29]. - The company has automated operations, replacing over 1,700 positions, and improved labor costs by 11% year-on-year [39]. - The company aims to improve operational efficiency and reduce costs in the upcoming quarters [125]. Research and Development - The company is transitioning from a compressor supplier to a comprehensive thermal management system supplier for new energy vehicles, with continuous improvements in product development [27]. - The company has established over 20 provincial and national-level technology innovation platforms, including a national-level enterprise technology center and a post-doctoral research workstation [68]. - The company has achieved international leadership in noise control technology for household air conditioners, enhancing user experience [69]. - The company has been actively involved in the research and development of smart home solutions, enhancing its product offerings in the HVAC and home appliance sectors [132]. Market Expansion and Strategy - The company plans to enhance its global supply chain and expand overseas markets, focusing on integrating R&D centers and local business operations [42]. - The company aims to leverage its strong capital reserves for potential acquisitions to enhance its market share [132]. - The company is exploring potential mergers and acquisitions to strengthen its market position [125]. - The market expansion strategy includes targeting emerging markets, which is expected to contribute to a 25% increase in overall sales [128]. Shareholder and Governance - The company has a total of 25,399 shareholders as of June 30, 2024 [87]. - The company repurchased 13,915,968 shares from January 17, 2024, to July 23, 2024, accounting for 1.00% of the total share capital, with a total transaction amount of RMB 343,418,332.75 [96]. - The company has adopted a 2024 A-share employee stock ownership plan involving up to 13,916,000 shares, with 735,918 A-shares available for future grants [102]. - The company confirmed that all directors and supervisors adhered to the securities trading code during the reporting period [95]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, rising costs, trade protectionism, and exchange rate volatility [74]. - The company reported a decrease in cash and cash equivalents by RMB 127,424,266.33, compared to an increase of RMB 138,885,445.53 in the previous year, indicating cash flow challenges [47]. - The company has not engaged in any asset or equity acquisitions or disposals during the reporting period [76]. Accounting and Financial Reporting - The financial statements are prepared in accordance with Chinese accounting standards [107]. - The group follows the principle of materiality in preparing and disclosing financial statements [139]. - The group recognizes revenue when control of goods or services is transferred to customers, primarily through sales of products [198]. - The group assesses credit risk for financial assets at each reporting date to determine if there has been a significant increase in credit risk since initial recognition [161].

Financial Performance - The company's revenue for the first half of 2024 reached ¥48.64 billion, representing a year-on-year increase of 13.27% compared to ¥42.94 billion in the same period last year[11]. - The net profit attributable to shareholders increased by 34.61% to ¥2.02 billion, up from ¥1.50 billion in the previous year[11]. - The net profit after deducting non-recurring gains and losses rose by 34.82% to ¥1.70 billion, compared to ¥1.26 billion in the same period last year[11]. - The basic earnings per share rose by 35.78% to ¥1.48, up from ¥1.09 in the same period last year[11]. - The total operating revenue for the first half of 2024 reached ¥48.64 billion, an increase of 13.5% compared to ¥42.94 billion in the same period of 2023[146]. - Net profit for the first half of 2024 was ¥3.03 billion, up 21.9% from ¥2.49 billion in the first half of 2023[147]. - The company's operating profit increased to ¥3.36 billion, representing a growth of 20.9% from ¥2.78 billion in the previous year[147]. - The total profit for the first half of 2024 was ¥3.50 billion, an increase of 18.3% from ¥2.96 billion in the first half of 2023[147]. Cash Flow and Investments - The net cash flow from operating activities was ¥2.10 billion, a decrease of 44.91% from ¥3.81 billion in the previous year[11]. - Cash inflows from operating activities amounted to CNY 38,661,525,910.61, up from CNY 35,178,301,202.15 in the first half of 2023, indicating a growth of about 7.1%[150]. - The net cash flow from operating activities decreased to CNY 2,099,973,482.47, down from CNY 3,812,044,169.34 in the previous year, reflecting a decline of approximately 45.0%[151]. - Cash inflows from investment activities totaled CNY 15,132,625,993.90, significantly higher than CNY 8,037,634,541.84 in the first half of 2023, marking an increase of about 88.5%[151]. - The net cash flow from investment activities improved to CNY 493,052,678.68, a recovery from a negative cash flow of CNY 4,588,662,285.55 in the same period last year[151]. - The ending balance of cash and cash equivalents was CNY 2,749,716,134.21, slightly up from CNY 2,617,231,520.93 at the end of the first half of 2023[151]. Market Trends and Performance - The overall market capacity of the central air conditioning sector is expected to decline by 5% year-on-year in the first half of 2024, with multi-split systems accounting for nearly 50% of the market share[17]. - The retail volume of the air conditioning market decreased by 10.8% year-on-year, while retail value fell by 13.7% in the first half of 2024[18]. - The domestic refrigerator market saw a retail volume increase of 0.8% and a retail value increase of 0.4% year-on-year in the first half of 2024[19]. - The washing machine market experienced a retail volume growth of 6.2% and a retail value growth of 3.8% year-on-year in the first half of 2024[20]. - The kitchen appliance market's retail volume grew by 0.5%, but retail value declined by 2.3% year-on-year in the first half of 2024[21]. - Global automobile sales reached 43.9 million units in the first half of 2024, marking a year-on-year increase of 3.46%, with new energy vehicle sales growing by 21%[22]. Product Development and Innovation - The company plans to continue enhancing the intelligence and digitalization of home appliances while advancing its globalization strategy[16]. - The company launched the first domestic integrated 5G air conditioning and heating product, which combines air conditioning, underfloor heating, fresh air, and humidification systems, receiving over 100 pre-orders in the initial month[28]. - The company launched the new generation commercial multi-split M3 series, achieving pre-sales breakthroughs in various applications such as cold storage and dehumidification[29]. - The ECO-B smart building and energy management system won the "Innovative Product" award at the 2024 China Refrigeration Exhibition, achieving over 30% energy savings[30]. - The company's Hi-Power energy products, part of a detailed system with heat pumps and home appliances, showed significant advantages in energy savings and maintenance convenience[30]. Strategic Initiatives and Market Expansion - The company plans to enhance overseas market development, aiming for rapid growth in international business through global talent supply chain and local integration[58]. - The company achieved a 338% sales increase in the second quarter through innovative online and offline marketing strategies, particularly via Douyin[38]. - The company has established a comprehensive brand matrix with eight brands, enhancing its market presence and brand recognition globally[65]. - The company expanded its store network by adding 3,408 new points, with Tmall's premium channel revenue growing by 20.1%[54]. Environmental and Social Responsibility - The company emphasizes its commitment to long-termism and ESG principles to achieve steady growth in performance[16]. - The company has established 7 national-level "green factories" and 2 "zero carbon factories" as part of its commitment to sustainable development[102]. - The company has actively responded to the "dual carbon" strategy, contributing to carbon peak and carbon neutrality goals[103]. - The company has engaged in significant community activities, including planting thousands of trees in the Gobi Desert as part of its green initiatives[105]. - The company has expanded its old-for-new appliance program to cover 300 models across various categories, including air conditioners, refrigerators, and washing machines, enhancing consumer convenience and promoting energy-saving products[104]. Compliance and Governance - The company has maintained compliance with all regulatory requirements, with no violations or penalties reported during the period[108]. - The company did not engage in speculative or hedging derivative investments during the reporting period[81][82]. - The company has not provided any external guarantees during the reporting period, with a total approved external guarantee amount of 0[121]. - The company has no significant litigation or arbitration matters reported during the reporting period, indicating a stable legal standing[108].

Financial Performance - Total operating revenue for the first half of 2024 reached RMB 48.64 billion, a 13.5% increase from RMB 42.94 billion in the same period of 2023[6]. - Total operating costs increased to RMB 46.21 billion, up 14.1% from RMB 40.47 billion year-over-year[7]. - Operating profit for the first half of 2024 was RMB 3.36 billion, representing a 20.9% increase compared to RMB 2.78 billion in the first half of 2023[7]. - Net profit for the first half of 2024 was RMB 3.03 billion, a 21.9% increase from RMB 2.49 billion in the same period of 2023[7]. - Basic earnings per share for the first half of 2024 were RMB 1.48, compared to RMB 1.09 in the first half of 2023, reflecting a 36% increase[8]. - The company's profit for the period was RMB 3.50 billion, compared to RMB 2.96 billion in the previous year, marking a growth of 17.9%[14]. - Net profit attributable to shareholders was ¥2,015,831,383.14, reflecting a growth of 34.61% from ¥1,497,562,724.59 year-on-year[73]. Assets and Liabilities - As of June 30, 2024, the total assets of Hisense Home Appliances Group amounted to RMB 70.72 billion, an increase from RMB 65.95 billion as of January 1, 2024, representing a growth of approximately 7.5%[4]. - The total current assets reached RMB 49.93 billion, up from RMB 45.14 billion, indicating a growth of about 10.5%[4]. - The total liabilities increased to RMB 51.71 billion from RMB 46.55 billion, which is an increase of about 11.6%[5]. - The company's equity attributable to shareholders reached RMB 14.16 billion, up from RMB 13.58 billion, showing a growth of approximately 4.3%[5]. - The company's debt-to-asset ratio as of June 30, 2024, is 73.12%, slightly down from 73.38% on June 30, 2023[85]. Revenue Breakdown - The company's main business income was RMB 43.53 billion, up from RMB 38.70 billion year-on-year, reflecting a growth of 12.3%[20]. - Domestic revenue for the first half of 2024 was RMB 25.33 billion, compared to RMB 24.47 billion in the same period of 2023, indicating a growth of 3.5%[16]. - Overseas revenue increased significantly to RMB 18.21 billion, up 28.0% from RMB 14.24 billion year-on-year[16]. - The overseas white goods business generated revenue of 14.78 billion yuan, a year-on-year increase of 36.91%[61]. Market Trends - The domestic central air conditioning market saw a 5% decline in overall market capacity in the first half of 2024, indicating a shift from growth to upgrading in the industry[32]. - The retail volume of the home air conditioning market decreased by 10.8% year-on-year in the first half of 2024, with retail sales value down by 13.7%[33]. - The domestic refrigerator market experienced a retail volume increase of 0.8% and a retail value increase of 0.4% in the first half of 2024, indicating a slight recovery in demand[35]. - The washing machine market in China saw a retail volume increase of 6.2% year-on-year, with retail sales growing by 3.8%[36]. - The kitchen appliance market experienced a retail volume growth of 0.5% year-on-year, but retail sales declined by 2.3%[37]. Research and Development - Research and development expenses rose to RMB 1.64 billion, up 32.2% from RMB 1.24 billion in the first half of 2023[7]. - The company is actively involved in the development of new technologies and products, enhancing its competitive edge in the market[96]. - The company aims to enhance operational quality by focusing on user needs, strengthening R&D capabilities, and optimizing sales structure[82]. Strategic Initiatives - The company has plans for market expansion and new product development, although specific figures were not disclosed in the report[2]. - The company is focusing on energy-saving renovation projects as a new development opportunity in the central air conditioning sector, driven by government initiatives[32]. - The company is committed to advancing its manufacturing strategy, enhancing lean production systems, and improving automation levels across factories[72]. - The company is poised for future growth, leveraging its strong market position and innovative product pipeline[96]. Shareholder Returns - The company approved a final dividend of RMB 10.13 per 10 shares for the year ending December 31, 2023, totaling approximately RMB 1.4 billion distributed to shareholders[31]. - The company did not declare an interim dividend for the reporting period, consistent with the previous year[31]. Risks and Challenges - The company faces risks from macroeconomic fluctuations and rising costs of raw materials, which could impact consumer demand for home appliances[81]. - The company faced risks from rising labor and shipping costs, which could negatively impact profitability[82]. Operational Efficiency - The company improved manufacturing efficiency, with a 2.3% year-on-year reduction in absolute work hour losses and a 10% improvement in accounts receivable turnover[58]. - The company improved its inventory turnover days by 6.5% year-on-year, enhancing supply chain efficiency amid increasing credit risks[71].