Core Viewpoint - The report highlights a projected decline in the production of household refrigerators in China for the year 2025, indicating a potential shift in market dynamics within the industry [1]. Industry Overview - According to data from the National Bureau of Statistics, the production of household refrigerators in China is expected to reach 8.79 million units in October 2025, representing a year-on-year decrease of 6% [1]. - From January to October 2025, the cumulative production of household refrigerators is projected to be 89.96 million units, showing a slight increase of 0.9% compared to the previous year [1]. Market Research Insights - The report titled "2025-2031 China Smart Refrigerator Industry Market Panorama Research and Development Trend Judgment Report" by Zhiyan Consulting provides an in-depth analysis of the smart refrigerator market in China [1]. - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in comprehensive industry research reports, business plans, feasibility studies, and customized services [1].

Market Overview - The white goods sector increased by 0.04% on December 26, with Aucma leading the gains [1] - The Shanghai Composite Index closed at 3963.68, up 0.1%, while the Shenzhen Component Index closed at 13603.89, up 0.54% [1] Stock Performance - Aucma (600336) closed at 8.97, up 4.91% with a trading volume of 521,000 shares and a turnover of 461 million yuan [1] - Midea Group (000333) closed at 78.87, up 0.36% with a trading volume of 214,100 shares and a turnover of 1.688 billion yuan [1] - Hisense Home Appliances (000921) closed at 25.30, up 0.20% with a trading volume of 57,100 shares and a turnover of 145 million yuan [1] - Whirlpool (600983) closed at 9.65, down 0.21% with a trading volume of 16,400 shares and a turnover of 15.846 million yuan [1] - Gree Electric (000651) closed at 40.76, down 0.37% with a trading volume of 259,200 shares and a turnover of 1.057 billion yuan [1] - Haier Smart Home (600690) closed at 26.74, down 0.52% with a trading volume of 250,600 shares and a turnover of 672 million yuan [1] Capital Flow - The white goods sector experienced a net outflow of 218 million yuan from institutional investors, while retail investors saw a net inflow of 60.15 million yuan [1] - Midea Group had a net inflow of 28.86 million yuan from institutional investors, but a net outflow of 41.76 million yuan from retail investors [2] - Aucma saw a net inflow of 5.70 million yuan from institutional investors, with a slight outflow from retail investors [2] - TCL Smart Home (002668) had a net inflow of 1.57 million yuan from institutional investors, while retail investors contributed a net inflow of 914,500 yuan [2] - Haier Smart Home experienced a significant net outflow of 1.05 billion yuan from institutional investors, but a net inflow of 536.78 million yuan from retail investors [2]

Group 1 - The State Intellectual Property Office of China has granted a patent to Zhuhai Gree Electronic Components Co., Ltd. and Zhuhai Gree Electric Appliances, Inc. for a device and method related to crane cargo positioning and transportation, with the patent number CN118929453B and application date of September 2024 [1] - Zhuhai Gree Electronic Components Co., Ltd. was established in 2022, located in Zhuhai, with a registered capital of 100 million RMB. The company has participated in 29 bidding projects and holds 203 patents, along with 107 administrative licenses [1] - Zhuhai Gree Electric Appliances, Inc. was founded in 1989, also located in Zhuhai, with a registered capital of approximately 6015.73 million RMB. The company has invested in 99 enterprises, participated in 5000 bidding projects, and holds 5000 trademarks and patents, in addition to 908 administrative licenses [1]

Core Viewpoint - The Chinese air conditioning industry is experiencing a shift towards aluminum replacing copper in manufacturing, leading to a complex competitive landscape among major players like Gree, Haier, and Xiaomi [2][5][11]. Group 1: Industry Developments - The China Refrigeration Society released a standard for aluminum tube heat exchangers for air conditioners, with 19 companies, including Haier and Midea, joining a self-regulatory agreement to promote aluminum use [2][5]. - Gree Electric, a major player in the air conditioning sector, has opted not to participate in the aluminum initiative, citing concerns over aluminum's performance compared to copper [5][7]. - The global trend shows a significant shift towards aluminum in air conditioning, with North America and Japan having over 50% and 40% adoption rates, respectively [11]. Group 2: Cost and Material Comparison - Copper constitutes about 20% of the total cost of an air conditioner, while aluminum costs approximately 1/12 of copper, leading to potential cost savings if aluminum is fully adopted [5][12]. - Current copper prices are around 93,000 yuan per ton, while aluminum prices are about 22,000 yuan, creating a price difference of over four times [11][12]. Group 3: Consumer Trust and Market Dynamics - Consumer trust remains a significant issue, with 68% of users concerned about whether Gree's products are fully copper, indicating a strong preference for perceived quality [10][16]. - Past experiences with aluminum in lower-end models have led to consumer skepticism, as many have faced issues like corrosion and leaks [16][18]. - The Chinese Household Electrical Appliances Association suggests that companies should carefully consider the introduction of aluminum products based on regional climate and usage patterns to mitigate risks [19][20].

Core Viewpoint - The report highlights a decline in the production of room air conditioners in China, with a projected decrease of 13.5% in October 2025 compared to the previous year, indicating potential challenges in the air conditioning industry [1]. Industry Overview - According to the National Bureau of Statistics, the cumulative production of room air conditioners in China from January to October 2025 is 23,034.4 million units, reflecting a cumulative growth of 3% [1]. - The report is based on insights from Zhiyan Consulting, a leading industry consulting firm in China, which has been focused on industry research for over a decade [1]. Company Insights - The companies mentioned in the report include Gree Electric Appliances (000651), Midea Group (000333), Haier Smart Home (600690), Hisense Home Appliances (000921), TCL Technology (000100), and Harbin Air Conditioning (600202) [1].

Core Viewpoint - The article highlights the journey and philosophy of Dong Mingzhu, the chairwoman of Gree Electric Appliances, emphasizing her commitment to national industry and technological independence as key drivers for the company's success and future direction [3][11]. Company Development - Gree Electric Appliances transformed from a small air conditioning assembly factory with an annual output value of less than 20 million yuan to a publicly listed company, achieving significant milestones under Dong Mingzhu's leadership [2][6]. - In 2005, Gree's annual revenue surpassed 10 billion yuan, marking a pivotal year for the company as it began to focus on technological innovation [8][9]. Technological Innovation - Dong Mingzhu defined 2005 as a turning point for Gree, initiating a focus on core technology development, particularly in compressors and motors [8]. - By 2012, Gree became the market leader in China's central air conditioning sector with a market share of 14.3%, showcasing the importance of independent technological capabilities [9]. Talent Development - Gree has significantly increased its R&D personnel from over 200 to more than 20,000, emphasizing the importance of nurturing local talent rather than relying on overseas returnees [12][13]. - Dong Mingzhu advocates for a "open platform" approach to talent development, providing opportunities for young Chinese graduates [12]. Industry Positioning - Gree has chosen not to participate in the ongoing "aluminum instead of copper" debate within the industry, prioritizing product quality and reliability over cost-cutting measures [16][17]. - The company has maintained its stance against price wars, resulting in a revenue decline of 6.5% year-on-year in the first three quarters of 2025, reflecting its commitment to quality over quantity [18]. Future Outlook - Gree is focusing on self-sufficiency in chip production, with annual chip procurement costs reaching several billion yuan, as part of its strategy to enhance competitiveness [11]. - The company aims to support the transition of more small and medium-sized enterprises towards intelligent manufacturing, leveraging its technological advancements [10].

Core Viewpoint - The article highlights the journey and philosophy of Dong Mingzhu, the chairwoman of Gree Electric Appliances, emphasizing her commitment to national industry and technological independence as key drivers for the company's success and future direction [3][4][28]. Group 1: Company Development - Gree Electric Appliances transformed from a small air conditioning assembly factory with annual sales of 20 million to a publicly listed company under Dong Mingzhu's leadership [3][7]. - The company was established in 1991, and by 2005, it became the world's largest air conditioning manufacturer, achieving significant milestones in production and sales [8][12]. - In 2012, Gree surpassed Daikin to become the market leader in China's central air conditioning sector, marking a significant achievement for domestic brands [12][14]. Group 2: Technological Independence - Dong Mingzhu emphasized the importance of core technology for the company's survival and growth, leading Gree to invest in research and development, particularly in compressors and motors [11][13]. - Gree's strategic shift towards technological independence included the development of its own CNC machine tools, which are critical for enhancing manufacturing capabilities [14][15]. - The company has also made strides in chip production, with plans to achieve self-sufficiency in chip supply, which is essential for maintaining product quality and competitiveness [17][18]. Group 3: Market Position and Strategy - Gree has chosen not to participate in the ongoing price wars within the home appliance industry, which has resulted in a revenue decline of 6.5% year-on-year in the first three quarters of 2025 [24][26]. - The company maintains a commitment to quality over price, believing that low initial costs can lead to higher long-term expenses for consumers [25][26]. - Dong Mingzhu's leadership style is characterized by a readiness to confront challenges and controversies, reinforcing the company's position as a leader in the industry [27][28].

Core Viewpoint - Gree Electric's Zhuhai Jinwan Factory has been recognized as a "leading intelligent factory" by the Ministry of Industry and Information Technology, showcasing a new paradigm of "Chinese manufacturing" through advanced automation and AI integration [1][2]. Group 1: Intelligent Manufacturing - The factory employs advanced robotic technology that mimics human movements, enhancing efficiency and precision in tasks such as packaging [2]. - Automated welding equipment operates with precise temperature control, allowing robots to adapt welding parameters in real-time based on material specifications, marking a first in the industry [3]. - Quality control is enhanced through a digital system that monitors vacuum processes and visual inspections, ensuring that any impurities lead to automatic halting of production [4]. Group 2: Workforce Transformation - The workforce has been reduced from over 70 to 20, focusing on skilled workers who manage technology rather than performing manual labor [4]. - The company encourages employees to obtain certifications in robotics and programming, providing financial support for training [4]. Group 3: Data Integration and AI - An "industrial brain" integrates data across the entire production process, improving efficiency and reducing errors in production planning [5]. - AI models are deployed at both the device level and cloud level, allowing for real-time processing and coordination across thousands of devices and suppliers [6]. Group 4: Industry Solutions and Collaboration - The factory aims to produce not only air conditioning units but also replicable standards and models for intelligent manufacturing [7]. - Gree Electric connects over 20,000 suppliers through an industrial internet platform, enhancing supply chain efficiency and production capabilities [8]. - The company offers modular solutions for small and medium enterprises to facilitate gradual upgrades in their smart manufacturing processes [8][9]. Group 5: Future Directions - Gree Electric is exploring further advancements in hardware intelligence and software ecosystems to achieve a data-driven transformation in manufacturing [10].

Group 1 - The home appliance industry has shown a cumulative increase of 8.06% in 2025, underperforming the CSI 300 index by 10.43 percentage points, ranking 21st among 31 sub-industries [11] - The performance of various sub-sectors in the home appliance industry varies significantly, with white goods, black goods, small appliances, kitchen and bathroom appliances, lighting equipment, and appliance components showing respective changes of -1.12%, 12.55%, 9.52%, -0.74%, 11.87%, and 64.69% [11] - The industry is experiencing a high base effect from previous government subsidies, leading to a slowdown in growth rates [11] Group 2 - The home appliance sector's operating performance in 2025 has shown a trend of high performance in the first half of the year followed by a decline, with revenue and net profit growth rates of 7.34% and 10.17% respectively in the first three quarters [17] - The white goods sector remains stable, while the small appliances sector shows signs of stabilization; kitchen and lighting appliances are struggling due to a lack of growth momentum linked to the real estate market [18] - The overall market is witnessing a structural decline in product prices, with increased concentration in the industry as leading brands capture more market share [49][56] Group 3 - The government subsidy policy's marginal effect is diminishing, with retail sales of home appliances showing a year-on-year increase of 20.10% from January to October 2025, but a significant drop to -14.60% in October [37] - The sales of air conditioners and washing machines have shown steady growth, with respective online and offline retail sales growth rates of 10.00% and 8.00% for air conditioners [41] - Emerging categories like cleaning appliances are expected to perform well, with significant growth in sales for products like robotic vacuum cleaners and washing machines [44] Group 4 - The current valuation of the home appliance sector is at a low point, with a PE ratio of 16.09, which is in the 27.20th percentile of the past decade, indicating potential for upward adjustment [25] - The fluctuation in raw material prices has a limited impact on profitability, with the overall gross margin for the industry at 24.28% and net margin at 8.19% as of Q3 2025 [33] - The industry is adapting to rising costs through product structure upgrades and supply chain management, maintaining a strong profitability despite cost pressures [36]

Core Viewpoint - The white goods sector experienced a slight decline of 0.02% on December 25, with Aucma leading the drop, while the Shanghai Composite Index rose by 0.47% and the Shenzhen Component Index increased by 0.33% [1] Group 1: Market Performance - The closing price for TCL Smart Home was 10.81, with an increase of 1.12% and a trading volume of 108,700 shares, amounting to 117 million yuan [1] - Snowball Electric closed at 14.34, up by 0.91%, with a trading volume of 31,400 shares [1] - Changhong Meiling's closing price was 6.60, reflecting a 0.76% increase with a trading volume of 60,100 shares [1] - Hisense Home Appliances closed at 25.25, up by 0.44%, with a trading volume of 45,300 shares [1] - Gree Electric Appliances closed at 40.91, increasing by 0.37% with a trading volume of 264,100 shares [1] - Whirlpool closed at 9.67, up by 0.21%, with a trading volume of 15,500 shares [1] - Haier Smart Home closed at 26.88, reflecting a 0.15% increase with a trading volume of 201,200 shares [1] - Midea Group closed at 78.59, down by 0.27%, with a trading volume of 226,800 shares [1] - Deep Konka A closed at 5.11, down by 0.58%, with a trading volume of 166,500 shares [1] - Aucma closed at 8.55, leading the decline with a drop of 1.84% and a trading volume of 302,900 shares [1] Group 2: Capital Flow - The white goods sector saw a net outflow of 289 million yuan from main funds, while retail investors contributed a net inflow of 228 million yuan [1] - TCL Smart Home experienced a net inflow of 1.38 million yuan from main funds, while retail investors had a net inflow of 589,560 yuan [2] - Changhong Meiling had a net inflow of 4.08 million yuan from main funds, but saw outflows from both retail and speculative funds [2] - Aucma faced a significant net outflow of 33.82 million yuan from main funds, while retail investors contributed a net inflow of 13.64 million yuan [2] - Gree Electric Appliances had a net outflow of 68.64 million yuan from main funds, with retail investors contributing a net inflow of 41.71 million yuan [2]