GREE(SZ:000651) Sou Hu Cai Jing·2025-08-28 15:36Core Insights - Gree Electric's revenue declined in the first half of 2025, with total revenue at 976.19 billion yuan, a year-on-year decrease of 2.66%, while net profit attributable to shareholders increased slightly by 1.95% to 144.12 billion yuan [1] - The second quarter saw a more significant decline, with revenue at 599.8 billion yuan, down 12.11%, and net profit at 85.08 billion yuan, down 10.07% [1][2] - This marks the first quarter in 2023 where Gree's net profit has declined year-on-year [2] Revenue Breakdown - Consumer electronics account for nearly 80% of Gree's revenue, totaling 762.79 billion yuan, but this segment saw a decline of 5.09% year-on-year [2] - The air conditioning market remains competitive, with Midea leading online sales with a market share of 19.98%, followed by Gree at 16.41% and Xiaomi at 13.5% [2] Competitive Landscape - Gree and Xiaomi have engaged in public disputes regarding market rankings, with Xiaomi's representatives questioning the reliability of data sources [3] - Gree's industrial products and green energy segments saw revenue growth, with industrial products and green energy revenue at 95.91 billion yuan, up 17.13%, and smart equipment revenue at 3.14 billion yuan, up 20.9% [3] Regional Performance - Domestic sales revenue decreased, accounting for over 70% of total revenue at 711.6 billion yuan, down 5.27%, while overseas sales increased by 10.19% to 163.35 billion yuan [3] Cost Management - Gree has implemented cost-cutting measures, with sales expenses down 11.49% to 62.02 billion yuan and management expenses down 4.83% to 31.45 billion yuan [3] Cash Flow Analysis - The net cash flow from operating activities increased significantly by 453.06% to 283.29 billion yuan, driven by increased cash receipts from sales and reduced cash payments [4] - Total cash inflow rose by 14.71% to 1,035.99 billion yuan, while cash outflow from purchasing goods decreased by 2.93% to 570.2 billion yuan [5] Investment Activities - Gree's net cash flow from investment activities showed a significant outflow of 342.75 billion yuan, an increase of 1366.95% year-on-year, attributed to increased cash payments related to investments [5] - The balance of other debt investments increased by 95.26% to 137 billion yuan, and trading financial assets rose by 19.95% to 197.7 billion yuan [5]