Core Viewpoint - Hisense Group is reportedly considering the integration of its consumer electronics and home appliance businesses, including a potential acquisition of Hisense Home Appliances by Hisense Visual Technology, although the company has denied these rumors [1][2]. Group 1: Business Integration and Market Position - Hisense is exploring a potential business integration plan that may involve Hisense Visual Technology acquiring Hisense Home Appliances, with the possibility of a dual listing on the Hong Kong Stock Exchange [1]. - Hisense has established a diversified industrial layout, including smart living, smart energy, semiconductors, and automotive electronics, positioning itself as a leader in the global home appliance industry [2]. Group 2: Financial Performance - In 2024, Hisense achieved a revenue of 215.3 billion yuan, representing a year-on-year growth of 6.5%, with overseas revenue accounting for 46.3% of total revenue at 99.6 billion yuan [2]. - As of the end of Q3 this year, Hisense holds 30.08% of Hisense Visual Technology and 37.29% of Hisense Home Appliances, making it the controlling shareholder of both companies [2]. - Hisense Visual Technology reported a revenue of 42.83 billion yuan in the first three quarters, a year-on-year increase of 5.36%, and a net profit of 1.63 billion yuan, up 24.27% [2]. - Hisense Home Appliances achieved a revenue of 71.53 billion yuan during the same period, with a year-on-year growth of 1.35%, and a net profit of 2.81 billion yuan, increasing by 0.67% [2]. Group 3: Industry Trends - The trend in the home appliance industry is moving towards optimizing business structures and enhancing synergy to improve overall competitiveness, especially in the context of increasing competition [3]. - Hisense's strategic adjustments are expected to have significant implications for the entire industry, highlighting the importance of monitoring its future development strategies [3].

Core Viewpoint - The 2025 China (Shanghai) International Fruit and Vegetable Exhibition showcased the innovative capabilities of Rongsheng Refrigerator, highlighting its transformation from a traditional food storage appliance to a "growth chamber" for fruits and vegetables [1][3]. Group 1: Product Innovation - Rongsheng's WILL series refrigerator features the WILL Natural Fresh-keeping Technology, which simulates a growth environment for fruits and vegetables, extending their lifespan by an additional 7 days and reducing nutrient loss [3]. - The technology incorporates three core elements: light, water, and ions. The SUPL multi-frequency light system allows for photosynthesis, enhancing the retention of nutrients such as lutein, chlorophyll, and vitamin C compared to standard refrigerators [3]. - The smart dynamic water mist system creates a protective layer for fruits and vegetables, locking in moisture and flavor, while the AI negative ion sterilization system ensures food safety by eliminating various contaminants [3][5]. Group 2: Market Positioning and Strategy - Rongsheng Refrigerator positions itself as a crucial guardian of family health, focusing on technological innovation to meet the public's demand for healthier living [5]. - The company has engaged in initiatives like the "Seeking Fresh Journey" to empower local agricultural brands and enhance the reputation of regional agricultural products, contributing to rural revitalization and increasing farmers' income [5][7]. - The collaboration between Rongsheng and local agricultural products at the exhibition exemplifies a complete value chain from production to household fresh-keeping, indicating a future trend of deep integration between home appliances, agriculture, and technology [7].

Market Overview - The white goods sector experienced a decline of 0.74% on November 14, with Hisense Appliances leading the drop [1] - The Shanghai Composite Index closed at 3990.49, down 0.97%, while the Shenzhen Component Index closed at 13216.03, down 1.93% [1] Stock Performance - Aokema (600336) saw a significant increase in its closing price to 7.70, up by 5.62% with a trading volume of 668,600 shares [1] - Whirlpool (600983) closed at 10.35, up 0.78%, with a trading volume of 52,000 shares [1] - Midea Group (000333) closed at 79.23, down 0.46%, with a trading volume of 273,100 shares [1] - Gree Electric (000651) closed at 40.62, down 0.93%, with a trading volume of 351,200 shares [1] - Hisense Appliances (000921) closed at 26.74, down 1.76%, with a trading volume of 81,800 shares [1] Capital Flow - The white goods sector experienced a net outflow of 164 million yuan from institutional investors, while retail investors saw a net inflow of 129 million yuan [1] - Aokema had a net inflow of 52.74 million yuan from institutional investors, while retail investors had a net outflow of 27.33 million yuan [2] - Midea Group had a net inflow of 10.00 million yuan from institutional investors, but retail investors experienced a net outflow of 20.38 million yuan [2] - Hisense Appliances faced a net outflow of 31.43 million yuan from institutional investors, while retail investors had a net inflow of 23.60 million yuan [2]

Core Insights - The white goods sector experienced a slight increase of 0.02% on November 13, with Xueqi Electric leading the gains [1] - The Shanghai Composite Index closed at 4029.5, up 0.73%, while the Shenzhen Component Index closed at 13476.52, up 1.78% [1] Stock Performance - Xueqi Electric (001387) closed at 14.36, with a gain of 1.06% and a trading volume of 28,100 shares, amounting to a transaction value of approximately 40.23 million yuan [1] - Haier Smart Home (600690) closed at 27.34, up 0.51%, with a trading volume of 314,000 shares and a transaction value of about 854 million yuan [1] - Midea Group (000333) closed at 79.60, with a slight increase of 0.14%, trading 333,400 shares for a total of approximately 2.64 billion yuan [1] - Gree Electric (000651) closed at 41.00, down 0.36%, with a trading volume of 441,600 shares and a transaction value of around 1.81 billion yuan [1] Capital Flow - The white goods sector saw a net outflow of 329 million yuan from institutional investors, while retail investors contributed a net inflow of approximately 67.13 million yuan [1] - Xueqi Electric had a net inflow of 1.76 million yuan from institutional investors, while it faced a net outflow of 1.18 million yuan from speculative funds [2] - Midea Group experienced a net outflow of 41.77 million yuan from institutional investors, but saw a net inflow of 64.27 million yuan from speculative funds [2]

Core Insights - Hisense's washing machine business has shown steady growth, with domestic revenue increasing by over 30% year-on-year and market share in the mid to high-end segments doubling [1] - The company achieved significant sales growth during the "618" shopping festival, with e-commerce sales rising by 83% year-on-year [1] - Hisense's overseas market performance has also been strong, with a market share of over 11% in the UK and exceeding 30% in countries like Croatia, Serbia, and South Africa [1] Product Innovation - Hisense launched the 4-in-1 heat pump washing and drying machine, the Hisense Cotton Candy Ultra, which features an integrated heat pump drying system and precise temperature control for gentle drying at 42 degrees [3] - The Hisense Cotton Candy Ultra has received multiple industry awards, including the "Best Design Award" at IFA and recognition as the top-selling model in its price segment [3] - The E8Q model, released in late September, has optimized space utilization while maintaining high drying efficiency, quickly becoming the second best-selling product within two weeks of its launch [3] Industry Recognition - Hisense washing machines have received various accolades, including being named a "Leading Brand in Healthy Laundry Care" and one of the "Top Ten Brands in the Washing Machine Industry," highlighting the company's comprehensive strength and leadership position in the sector [5]

Core Insights - The white goods sector experienced a rise of 2.01% on November 12, with Midea Group leading the gains [1] - The Shanghai Composite Index closed at 4000.14, down 0.07%, while the Shenzhen Component Index closed at 13240.62, down 0.36% [1] Company Performance - Midea Group (000333) closed at 79.49, up 2.93%, with a trading volume of 737,800 shares and a transaction value of 5.857 billion [1] - Hisense Home Appliances (000921) closed at 27.71, up 2.82%, with a trading volume of 228,500 shares and a transaction value of 628 million [1] - TCL Smart Home (002668) closed at 11.36, up 2.34%, with a trading volume of 251,600 shares and a transaction value of 285 million [1] - Gree Electric Appliances (000651) closed at 41.15, up 0.56%, with a trading volume of 580,200 shares and a transaction value of 2.39 billion [1] Capital Flow - The white goods sector saw a net inflow of 457 million from institutional investors, while retail investors experienced a net outflow of 278 million [1] - Midea Group had a net inflow of 210 million from institutional investors, while retail investors had a net outflow of 92.32 million [2] - Gree Electric Appliances had a net inflow of 177 million from institutional investors, with retail investors experiencing a net outflow of 77.13 million [2]

Group 1 - Hisense Home Appliances (00921.HK) shares increased by over 6%, specifically rising by 6.11% to reach 26.4 HKD [1] - The trading volume for Hisense Home Appliances was reported at 116 million HKD [1]

Core Viewpoint - Hisense Electric is considering merging its electronics and home appliance businesses, which has led to a significant stock price increase of over 6% [1] Financial Performance - For the first three quarters, Hisense Electric reported a revenue of 71.5327 billion yuan, representing a year-on-year growth of 1.35% [1] - The net profit attributable to shareholders for the same period was 2.8118 billion yuan, showing a year-on-year increase of 0.67% [1] - In the third quarter alone, the company achieved a revenue of 22.19 billion yuan, which is a year-on-year increase of 1.16% [1] - The net profit for the third quarter was 740 million yuan, reflecting a year-on-year decrease of 5.4% [1] Market Analysis - Huatai Securities noted that the company's performance in the third quarter was under pressure primarily due to weak central air conditioning sales and fluctuations in exports [1]

Core Viewpoint - Hisense Home Appliances is considering merging its electronic products and home appliance businesses, which has led to a significant increase in its stock price by over 6% [1] Financial Performance - For the first three quarters, the company achieved an operating revenue of 71.5327 billion yuan, representing a year-on-year growth of 1.35% [1] - The net profit attributable to shareholders for the same period was 2.8118 billion yuan, showing a year-on-year increase of 0.67% [1] - In the third quarter alone, the company reported revenue of 22.19 billion yuan, an increase of 1.16% year-on-year [1] - The net profit attributable to shareholders in the third quarter was 740 million yuan, reflecting a year-on-year decrease of 5.4% [1] Market Impact - The stock price of Hisense Home Appliances rose by 6.11%, reaching 26.4 Hong Kong dollars, with a trading volume of 116 million Hong Kong dollars [1] - Huatai Securities noted that the company's performance in the third quarter was under pressure due to weak central air conditioning sales and fluctuations in exports [1]

Summary of Hisense Home Appliances Conference Call Company Overview - **Company**: Hisense Home Appliances - **Industry**: Home Appliances, specifically focusing on white goods like refrigerators, washing machines, and air conditioning systems Key Points and Arguments Revenue Growth Challenges - Fourth-quarter revenue growth is facing challenges, with domestic sales of air conditioners, refrigerators, and washing machines under pressure due to high base effects [2][3] - Positive growth is expected in overseas orders for refrigerators and washing machines, while processing orders are anticipated to recover gradually by the end of December [2][4] Market Demand and Strategy - Demand in the European and American markets is stable, with Hisense steadily increasing its market share [2][7] - Emerging markets show potential for growth but are subject to significant volatility [2][7] - The company aims to enhance the price index of white goods to compete with brands like Samsung, leveraging superior manufacturing and production capabilities [2][9][10] Central Air Conditioning Business - The export of central air conditioning systems is slowing due to the impact of the European market, with plans to expand into the Middle East, Africa, and ASEAN markets [2][11] - A focus on promoting water system central air conditioning and improving self-manufacturing capabilities for core components is planned for next year [2][11] Impact of Tariffs - Tariffs have a minimal overall impact on Hisense, with the U.S. business maintaining a slight profit margin [2][11] - Future pricing may fluctuate with costs and tariffs, but improvements in sales structure are expected to enhance overall average prices [2][11] Domestic Sales Performance - The performance during the Double Eleven shopping festival was average, attributed to a high base from the previous year [2][12] - High-end models received some promotional support, although the impact was not substantial [2][12][14] Profitability Insights - External sales profit margins are expected to improve, while domestic profit margins are relatively low [2][15] - The company is focusing on cost reduction, efficiency improvements, and structural enhancements to optimize expense ratios [2][15] Store Expansion Plans - Hisense has reached approximately 10,000 specialty stores and plans to steadily expand next year, targeting an increase of several hundred to 1,000 new stores [2][16] - The majority of stores are performing well, with a focus on improving profitability in lower-performing channels [2][16] Online vs. Offline Sales - Offline sales have higher profit margins compared to online sales, which account for about 40% of domestic sales [2][17] Competitive Landscape - The domestic market is expected to remain competitive, with new entrants like Xiaomi intensifying competition [2][18] - The company aims to enhance product efficiency and profitability to counter price wars [2][18] Water Machine Business - Hisense's water machine business is focused on the B-end market, with significant potential for domestic replacement [2][26] - The goal is to increase market share to double digits within two to three years, currently holding a single-digit share [2][26] Future Outlook - The central air conditioning business is expected to return to growth, albeit at a modest rate, with a focus on product type diversification and channel expansion [2][20] - The company is optimistic about the long-term demand in emerging markets, driven by economic growth and changing consumer attitudes [2][7] SKU Reduction Strategy - The SKU reduction process for the Kelon brand is ongoing, aiming to improve efficiency and profitability [2][27] South America Market Strategy - In South America, Hisense plans to leverage sports marketing, particularly around the upcoming World Cup, to enhance brand visibility and market share [2][28] New Product Launches - The introduction of new heat pump products has shown improved order intake, although their contribution to overall revenue remains limited [2][29] Legal and Regulatory Considerations - Ongoing discussions regarding the rights protection base plan are influenced by macroeconomic and industry uncertainties [2][30]