[2025 Semi-Annual Key Financial Data](index=1&type=section&id=2025%20%E5%B9%B4%E5%8D%8A%E5%B9%B4%E5%BA%A6%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) Presents a comprehensive overview of the company's key financial performance and position for the first half of 2025 Overview of 2025 Semi-Annual Key Financial Data | Item | Current Period (RMB) | Prior Period (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 11,477,500,800.41 | 10,964,777,968.45 | +4.68% | | Operating Profit | 1,171,798,428.07 | 1,169,947,290.55 | +0.16% | | Total Profit | 1,171,672,419.93 | 1,171,229,382.77 | +0.04% | | Net Profit Attributable to Shareholders of Listed Company | 939,913,794.13 | 940,593,117.65 | -0.07% | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Items | 907,672,958.11 | 922,655,960.65 | -1.62% | | Basic Earnings Per Share (RMB) | 1.180 | 1.181 | -0.08% | | Weighted Average Return on Net Assets | 15.30% | 15.45% | Decrease of 0.15 percentage points | | **Period-End Data** | **Current Period-End (RMB)** | **Period-Start (RMB)** | **Change (%)** | | Total Assets | 11,625,215,477.44 | 13,265,856,724.52 | -12.37% | | Shareholders' Equity Attributable to Shareholders of Listed Company | 5,118,520,351.62 | 6,424,414,343.69 | -20.33% | | Share Capital | 801,359,733.00 | 801,359,733.00 | 0.00% | | Net Assets Per Share Attributable to Shareholders of Listed Company (RMB) | 6.39 | 8.02 | -20.32% | - All financial data presented are based on the company's consolidated financial statements[5](index=5&type=chunk) [Brief Explanation of Operating Performance and Financial Position](index=2&type=section&id=%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E5%92%8C%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E7%9A%84%E7%AE%80%E8%A6%81%E8%AF%B4%E6%98%8E) Explains key changes in the company's operating performance and financial position, including revenue, net profit, and balance sheet items [Explanation of Total Operating Revenue Growth](index=2&type=section&id=%E8%90%A5%E4%B8%9A%E6%80%BB%E6%94%B6%E5%85%A5%E5%A2%9E%E9%95%BF%E8%AF%B4%E6%98%8E) Explains the **4.68%** year-on-year increase in total operating revenue, driven by stable domestic sales and increased export orders - From January to June 2025, the company achieved operating revenue of **RMB 11.478 billion**, an increase of **4.68%** compared to the same period last year[6](index=6&type=chunk) - Domestic sales business achieved stable revenue growth through continuous innovation and strong channel competitive advantages in a complex market environment, with sustained improvement in online and offline market share for core product categories[6](index=6&type=chunk) - Export business achieved favorable revenue growth due to increased orders from major export customers compared to the same period[6](index=6&type=chunk) [Explanation of Decline in Net Profit Attributable to Shareholders](index=2&type=section&id=%E5%BD%92%E6%AF%8D%E5%87%80%E5%88%A9%E6%B6%A6%E4%B8%8B%E9%99%8D%E8%AF%B4%E6%98%8E) Explains the **0.07%** year-on-year decline in net profit attributable to shareholders, primarily due to export business impacts and lower investment income - Net profit attributable to shareholders of the listed company was **RMB 940 million**, a decrease of **0.07%** compared to the same period last year[6](index=6&type=chunk) - The primary reasons for the net profit decline were the comprehensive impact of export business and a decrease in investment income due to lower interest rates[6](index=6&type=chunk) - The company is actively implementing measures including increasing resource allocation to core product categories, optimizing product structure to maintain stable gross profit margins, continuously improving marketing efficiency, strictly controlling expenses, and increasing investment in R&D innovation to enrich product offerings and launch more competitive products[6](index=6&type=chunk) [Explanation of Decline in Total Assets and Shareholders' Equity](index=2&type=section&id=%E6%80%BB%E8%B5%84%E4%BA%A7%E5%8F%8A%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E4%B8%8B%E9%99%8D%E8%AF%B4%E6%98%8E) Explains the decline in total assets and shareholders' equity, primarily due to the 2024 profit distribution plan - Total assets decreased by **12.37%** from the beginning of the period, and shareholders' equity attributable to shareholders of the listed company decreased by **20.33%**[7](index=7&type=chunk) - The primary reason for the decline is the implementation of the 2024 annual profit distribution plan during the current period, which reduced total assets and shareholders' equity attributable to shareholders at the end of the period compared to the beginning of the period[7](index=7&type=chunk) [Documents for Reference](index=2&type=section&id=%E5%A4%87%E6%9F%A5%E6%96%87%E4%BB%B6) Lists essential financial and audit documents available for inspection - Documents for reference include the comparative balance sheet and income statement, signed and sealed by the company's current legal representative, chief financial officer, and head of the accounting department[8](index=8&type=chunk) - Documents for reference also include the internal audit report on Zhejiang Supor Co., Ltd.'s 2025 semi-annual financial statements, issued by the company's internal audit institution[8](index=8&type=chunk)

Group 1: Market Trends - The sales of "cooling" appliances have surged due to high temperatures across the country, with sales of cooling fans with humidifying functions and air circulation fans increasing by over 62% and 89% year-on-year, respectively [1] - Air conditioner sales and installations have also seen significant growth, with a store manager reporting weekend sales reaching 300-350 units and weekday sales around 100-150 units, leading to a 2.3 times increase in average installation volume [1] - The demand for ice has rapidly increased, with ice production in Zhengzhou reaching nearly 300 tons daily, and sales doubling [1] Group 2: Product Performance - Ice-making refrigerators, home ice makers, and ice-making drinking machines have gained popularity, with Bosch reporting over 200% year-on-year growth in sales and revenue for its ice-making products in Q2 [2] - A store manager noted a 60% increase in customer inquiries for refrigerators with ice-making capabilities, with over 150 units sold in just one week [2] - Small Bear Electric reported a 20% year-on-year increase in ice maker sales from April to June, along with strong performance in other related products [2] Group 3: Industry Insights - The surge in ice-making appliances is attributed to the previous year's exposure of ice demand in cold drink scenarios and the entry of leading brands enhancing product experience and awareness [3] - Despite the rapid growth in the first half of the year, there is still room for continued expansion in the ice-making appliance market, with expectations of price reductions as leading brands increase their presence [3] - Other companies such as Midea and Supor are also entering the market for home ice makers and ice-making drinking machines [3]

Core Viewpoint - The foot massage device industry is experiencing growth driven by increasing health awareness, an aging population, and technological advancements, with the market size expected to reach 446 million yuan in 2024, a year-on-year increase of 6.01% [1][11]. Industry Overview - Foot massage devices are designed to stimulate and relax foot muscles and acupoints, improving fatigue relief, sleep quality, and blood circulation [3][11]. - The industry is supported by a growing elderly population in China, providing a substantial user base for foot massage devices [1][11]. Market Dynamics - The rapid development of e-commerce has made online sales channels a significant direction for foot massage device sales, with platforms like JD.com, Tmall, and Douyin being major contributors [9]. - The e-commerce transaction volume in China is projected to grow from 33.87 trillion yuan in 2019 to 46.41 trillion yuan in 2024, benefiting the foot massage device industry [9]. Competitive Landscape - The foot massage device industry features a diverse competitive landscape, including international brands like Panasonic and domestic leaders such as Beileisong, Aojiahua, and Rongtai Health, alongside numerous small and medium enterprises [13][14]. Industry Chain - The industry chain consists of upstream suppliers providing components and materials, midstream manufacturers producing various types of foot massage devices, and downstream sales channels including online platforms and physical stores [6]. Development Trends - Future trends in the foot massage device industry include the integration of smart features for personalized health monitoring and remote medical guidance [18]. - Customization services are emerging to meet the diverse needs of different consumer groups, enhancing user satisfaction and product competitiveness [19]. Market Demand - There is a growing recognition of proactive health management, leading to increased demand for foot massage devices as tools for muscle relaxation and blood circulation improvement [21].

Investment Rating - The report maintains an "Outperform" rating for the home appliance industry [4] Core Views - The home appliance industry is experiencing internal growth while external sales are under pressure, with a stable outlook for the second quarter [4][13] - Domestic sales are benefiting from national subsidy policies, leading to positive retail and shipment growth, while external sales face challenges due to high base effects and tariff disruptions [13][14] - The overall performance of listed home appliance companies is expected to remain stable with revenue growth driven by structural upgrades and efficiency improvements [13] Summary by Sections White Goods - Domestic sales growth is accelerating, while external sales are declining due to high base effects and tariff disruptions [2][14] - In April and May, air conditioner shipments increased by 2.6% year-on-year, with domestic sales up 9.5% and external sales down 6.3% [2][14] - Revenue growth for white goods companies is expected to be around double digits, with profit margins showing slight improvement [2][22] Kitchen Appliances - Kitchen appliance demand is improving due to national subsidy policies, with online retail sales growth for range hoods and gas stoves between 10%-20% [2][38] - However, the real estate sector continues to exert pressure, particularly on integrated stove companies [38] - Traditional kitchen appliance companies are expected to see improved profit margins due to declining raw material prices [38] Black Goods - The black goods segment is experiencing structural upgrades, with television sales and revenue increasing by 9.7% and 14.5% respectively during the 618 shopping festival [3][49] - Panel prices have begun to decline, which is expected to improve profitability for black goods companies [49] Small Appliances - The small appliance sector is seeing a recovery in kitchen small appliances, with online retail sales for kitchen small appliances growing by 25% during the 618 period [4][57] - However, external sales are facing short-term pressure due to tariffs and overseas factory setups [57] - Companies like Roborock and Ecovacs are expected to see significant revenue growth, with Roborock projected to grow by 40% [72]

Investment Rating - The report maintains a "Positive" outlook on the home appliance industry for the mid-2025 performance forecast [3] Core Insights - The home appliance sector is expected to benefit from domestic sales policies and the "old-for-new" program, which is driving demand for major appliances and kitchen appliances [4][5] - The air conditioning industry saw a cumulative production of 101.54 million units from January to May 2025, representing an 8% year-on-year increase, while sales reached 103.49 million units, up 9% year-on-year [4][17] - The report identifies three main investment themes: 1. **White Goods**: The reversal of real estate policies and the "old-for-new" program are expected to catalyze growth in the white goods sector, which is characterized by low valuations, high dividends, and stable growth [5][6] 2. **Exports**: Companies like Ousheng Electric are recommended due to stable income growth driven by large customer orders, while Dechang shares are highlighted for their expanding automotive parts business [6] 3. **Core Components**: The report suggests that the demand for core components will exceed expectations due to the strong performance of white goods, recommending companies like Huaxiang and Shun'an Environment for their competitive advantages [6] Summary by Sections 1. Air Conditioning and Major Appliances - The air conditioning sector is experiencing high growth in exports, with a 11% year-on-year increase in external sales from January to May 2025 [4][17] - The "old-for-new" policy is expected to enhance the average price of white goods, with major companies like Midea and Gree projected to see revenue growth of 8% and 5% respectively in Q2 2025 [4][29] 2. Kitchen Appliances - The kitchen appliance market is recovering due to real estate policies and the "old-for-new" program, with online sales of range hoods and gas stoves increasing by 17.5% and 16.5% respectively [40] - Companies like Boss Appliances are maintaining strong market shares in the kitchen appliance sector, with expected revenue growth of 5% in Q2 2025 [41] 3. Small Appliances - The small appliance sector is benefiting from high growth in domestic sales and exports, with companies like Supor and Joyoung expected to see revenue increases of 5% and 120% respectively in Q2 2025 [4][41] - The "old-for-new" policy is set to include small appliances, which is anticipated to significantly boost sales [5][20] 4. New Displays and Lighting - The emerging display market is at a turning point, with companies like Hisense and Jimi Technology expected to see revenue growth of 5% in Q2 2025 [4][5] 5. Investment Highlights - The report emphasizes the potential for a rebound in the home appliance sector driven by favorable policies and market conditions, recommending a combination of leading companies such as Midea, Haier, and Gree for investment [5][6]

Investment Rating - The investment rating for the home appliance industry is "Strongly Recommended" for key companies such as Midea Group, Gree Electric Appliances, Hisense Home Appliances, Supor, and others [2]. Core Insights - The recent trade agreement between the US and Vietnam is expected to benefit companies with production capacity in Vietnam, as tariffs on Vietnamese exports to the US have significantly decreased from 46% to 20% [1]. - The US labor market data indicates a mixed outlook, with a decrease in ADP employment numbers and a slight drop in the unemployment rate, which may increase the probability of a rate cut by the Federal Reserve in September [1]. Industry Scale - The home appliance industry consists of 88 listed companies, with a total market capitalization of 1,835.5 billion and a circulating market capitalization of 1,748.9 billion [3]. Key Company Financials - Midea Group: Market Cap 563.3 billion, 2024 EPS 5.03, 2025 EPS 5.61, 2025 PE 13.1, PB 2.5, Investment Rating: Strongly Recommended [2]. - Gree Electric Appliances: Market Cap 261.8 billion, 2024 EPS 5.75, 2025 EPS 6.25, 2025 PE 7.5, PB 1.8, Investment Rating: Strongly Recommended [2]. - Hisense Home Appliances: Market Cap 36.5 billion, 2024 EPS 2.42, 2025 EPS 2.71, 2025 PE 9.7, PB 2.2, Investment Rating: Strongly Recommended [2]. - Supor: Market Cap 42.0 billion, 2024 EPS 2.80, 2025 EPS 3.03, 2025 PE 17.3, PB 6.1, Investment Rating: Strongly Recommended [2]. - Other companies such as Zhaochi Co., Juxing Technology, and Stone Technology also received a "Strongly Recommended" rating [2]. Market Performance - The absolute performance of the home appliance sector over 1 month, 6 months, and 12 months is 4.9%, 10.1%, and 30.3% respectively, indicating a strong upward trend [5]. - The relative performance against the benchmark index (CSI 300) is 2.0%, 4.6%, and 14.8% for the same periods [5]. Supply Chain and Production Insights - Major appliance manufacturers like Hisense and TCL are primarily sourcing from Mexico and Vietnam, mitigating tariff impacts [6]. - The shift in TV imports to the US shows that Vietnam's share has increased to 36%, while China's has decreased to 5% [8]. - Companies in the smart home sector, such as Stone Technology, are also benefiting from reduced uncertainties in supply chains due to the Vietnam agreement [6]. Future Outlook - The anticipated rate cut by the Federal Reserve is expected to boost demand in the tools market, with a 66% probability of a 25 basis point cut in September [9][10]. - Companies are advised to focus on production in Vietnam to meet local origin requirements and capitalize on the upcoming peak season for orders [6].

Core Viewpoint - The Shandong Provincial Market Supervision Administration has released the results of the first batch of quality supervision inspections for household gas stoves in 2024, revealing that 8 out of 110 batches tested did not meet relevant standards [3][4]. Inspection Results - A total of 110 batches of household gas stoves were inspected, including 15 from production, 85 from sales, and 10 from online sales [3]. - The inspection was based on standards GB 16410-2020 and GB 30720-2014, focusing on parameters such as gas tightness, thermal efficiency, thermal load, structural requirements, and combustion conditions [3]. - Seven sellers were found to have 8 batches of products that failed to meet the standards, with non-compliance in areas such as thermal load, structural requirements, and combustion conditions [3][4]. Compliance Measures - The Shandong Provincial Market Supervision Administration has instructed relevant departments to handle the non-compliance results according to the Product Quality Law and related regulations [4]. Consumer Guidance - Consumers are advised to choose gas stoves with the CCC mark, from reputable manufacturers, and with flame failure safety devices [5][6]. - It is recommended to select products with high energy efficiency ratings and to have them installed by professional services [7].

Investment Rating - The report recommends investment in the home appliance sector, particularly in companies with stable performance and increasing dividend rates [8]. Core Viewpoints - The home appliance industry is expected to benefit from long-term stability due to its essential nature and competitive advantages globally, despite facing short-term pressures from market competition and external factors like tariffs [7][8]. - The report highlights the importance of government subsidy policies, particularly the "old-for-new" program, which is anticipated to continue supporting consumer demand in 2024 and 2025 [7][8]. - The report identifies key investment opportunities in the white goods sector, emphasizing the significance of companies' performance stability and dividend yield in the current low-risk interest rate environment [7][8]. Summary by Sections 1. Industry Performance Review - The home appliance sector has outperformed the market since 2023, with the SW home appliance index showing increases of 3.8% in 2023, 25.4% in 2024, and 1.93% in 2025 YTD [7][12]. - The sector's performance is attributed to the essential nature of large appliances and the benefits from government subsidy policies [7][12]. 2. Domestic Sales Supported by Policies - The "old-for-new" policy has effectively stimulated the market, with retail sales expected to grow significantly due to government support [42][44]. - The retail market for home appliances is projected to reach CNY 1,030.7 billion in 2024, a year-on-year increase of 12.3% [42]. 3. Overseas Market Dynamics - The report notes a shift in the global supply chain, with Chinese home appliance companies expected to benefit from increased order concentration in the U.S. market by 2026 [7][8]. - Exports of home appliances are projected to grow by 3.8% in 2023 and 14.1% in 2024, with significant increases in air conditioning exports [7][8]. 4. White Goods Market Insights - The air conditioning market is expected to remain strong in 2024, driven by government subsidies, although competition in the online market is intensifying [7][8]. - The report emphasizes the importance of product upgrades in the refrigerator and washing machine segments, which are expected to maintain stable sales due to their essential nature [7][8]. 5. Investment Recommendations - The report recommends investing in leading companies such as Midea Group, Haier Smart Home, Hisense Visual, and Gree Electric, focusing on their stable earnings and high dividend yields [8]. - The black goods sector presents opportunities due to improved global competitiveness, while the cleaning appliance segment is highlighted for its growth potential following industry consolidation [7][8].

Core Viewpoint - Supor has experienced a decline in stock price for six consecutive trading days, with a cumulative drop of -4.79% [1] Group 1: Company Overview - Zhejiang Supor Co., Ltd. is a leading brand in cookware and small appliances, listed on the Shenzhen Stock Exchange in 2004 (stock code 002032), and is the first listed company in China's cookware industry [1] Group 2: Shareholder Activity - Three funds under Zhongtai Securities (Shanghai) Asset Management have entered Supor's top ten shareholders. Zhongtai Xingyuan Flexible Allocation Mixed A reduced its holdings in Q1 2023, while Zhongtai Yuheng Value Preferred Mixed A increased its holdings, and Zhongtai Xingwei Value Selected Mixed A entered as a new shareholder in Q1 2023 [1] - Zhongtai Xingyuan Flexible Allocation Mixed A has a year-to-date return of 0.72%, ranking 1235 out of 2262 in its category. Zhongtai Yuheng Value Preferred Mixed A has a year-to-date return of -0.01%, ranking 1475 out of 2262, while Zhongtai Xingwei Value Selected Mixed A has a year-to-date return of 5.06%, ranking 1796 out of 4369 [1] Group 3: Fund Management - The fund manager for Zhongtai Xingyuan Flexible Allocation Mixed A, Zhongtai Yuheng Value Preferred Mixed A, and Zhongtai Xingwei Value Selected Mixed A is Jiang Cheng, who has a background in finance from Tsinghua University and Shanghai University of Finance and Economics [6] - Jiang Cheng has held various positions in asset management and has been managing multiple funds since 2018, including Zhongtai Xingyuan Value Preferred Flexible Allocation Mixed Fund and Zhongtai Yuheng Value Preferred Flexible Allocation Mixed Fund [6][8]

Group 1: Market Dynamics - The 618 promotional event combined with national subsidies has significantly boosted the small home appliance market, leading to increased sales both online and offline [1][2] - Online platforms like JD.com and Tmall reported substantial growth in small appliance sales, with specific products like portable fans and ice-making water purifiers seeing sales increases of 300% and 350% respectively [2] - Offline sales at stores like Suning have also surged, with a reported 69% year-on-year increase in sales of cleaning appliances since the start of the 618 promotion [2] Group 2: Consumer Trends - Young consumers are driving the demand for smart and health-oriented small appliances, with products like smart vacuum cleaners and health-focused cooking devices gaining popularity [3][5] - The sales of cleaning appliances, particularly vacuum robots and washing machines, accounted for 70% of total small appliance sales in stores, indicating a strong consumer preference for these products [4] - The trend towards health-conscious products is evident, with sales of water purifiers increasing by 195% and microwave ovens by 76% during the promotional period [5] Group 3: Product Innovation and Quality Upgrade - The small appliance market is experiencing a quality upgrade, with brands focusing on product innovation and higher quality offerings, as indicated by rising average prices for various kitchen appliances [7] - Companies like Bear Electric and Supor are implementing strategies to enhance product quality and brand image, with a focus on mid-to-high-end flagship products [7] - There is a growing market opportunity for small appliances targeting specific demographics such as the elderly and single-person households, highlighting the industry's shift towards specialization [8]