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].

Summary of Key Points from Conference Call Industry Overview - The conference call primarily discusses the **apparel and home textile industry** in China, with a focus on retail performance and emerging trends in consumer behavior [2][4][6]. Core Insights and Arguments - **Retail Performance**: In January-February 2025, retail sales of clothing, shoes, and textiles from key enterprises increased by **3.3% year-on-year**, showing improvement compared to declines of **4.5%** in November 2024 and **0.3%** in December 2024. This indicates a recovery in the apparel and home textile consumption [2][3]. - **Online vs. Offline Sales**: Offline retail is outperforming online sales, suggesting a shift in consumer preference towards physical shopping experiences [2]. - **Children's Apparel Market**: The introduction of child-rearing subsidies in Hohhot is expected to positively impact the children's clothing market, with approximately **33 provinces and cities** implementing similar policies. In 2021, clothing and footwear accounted for **26%** of the maternal and infant consumption market, indicating significant growth potential in children's apparel [6]. - **Discount Retail Sector**: The discount retail sector is thriving, with strategic partnerships, such as that between **Hailan Home** and **JD.com**, expected to drive growth. The government’s consumer stimulus policies are also beneficial for the apparel and home goods sectors [7][9]. - **Investment Recommendations**: Companies like **Semir Apparel**, which leads in the children's clothing market, are recommended due to their strong brand positioning and expansion strategies. Other notable companies include **Anta Sports**, **Li Ning**, and **361 Degrees**, which have significant children's apparel lines [8]. Emerging Trends - **Demand for UHMWPE**: The demand for **Ultra-High-Molecular-Weight Polyethylene (UHMWPE)** is projected to grow at approximately **20% annually**, with applications expanding across various sectors. Companies involved in UHMWPE production, such as **Nanshan Zhishang** and **Henghui Security**, are recommended for investment [4][5]. - **Consumer Behavior**: There is a notable trend towards value-for-money products, with consumers increasingly seeking high-quality items at lower prices, particularly in the apparel sector [9]. - **Social Consumption Trends**: The total retail sales of consumer goods in January-February 2025 grew by about **4% year-on-year**, indicating a stabilization in consumer spending [2][10]. Additional Important Insights - **Market Dynamics**: The apparel and home textile industry is expected to see a gradual acceleration in performance due to low base effects from previous years, despite potential fluctuations in end-demand [4]. - **Investment Strategy**: The focus should be on companies that can adapt to changing consumer preferences, particularly those that emphasize quality and affordability. The potential for growth in the children's apparel segment is significant, driven by demographic policies and changing consumer habits [6][8]. - **Discount Retail Viability**: The discount retail model is positioned to thrive in economic downturns, as consumers become more price-sensitive. This sector is expected to benefit from existing inventory pressures among apparel brands [9]. This summary encapsulates the key points discussed in the conference call, highlighting the current state and future outlook of the apparel and home textile industry in China.

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].

1 | 上市公司名称：海信家电集团股份有限公司 | | | | | | | | | | 单位：人民币万元 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 非经营性资金占 | 资金占用方 | 占用方与上市 | 上市公司核算的 | 2024年1-6月占用 | 2024年1-6月占 | 2024年1-6 月占用资 | 2024年1-6月 | 2024年期末 | 占用形成 | | | | | 公司的关联关 | | | 用累计发生金 | | 偿还累计发 | 占用资金余 | | 占用性质 | | 用 | 名称 | | | | | | | | 原因 | | | | | 系 | 会计科目 | 资金余额 | 额（不含利息） | 金的利息 (如有） | 生金额 | 额 | | | | 不适用 | 不适用 | 不适用 | 不适用 | | | | | | 不适用 | 不适用 | | 小计 | - | - | - | - | - | - | - | - | - | - | | 总计 | - | - | - | - | - | - | - | ...