GREE(SZ:000651) Zhong Guo Ji Jin Bao·2025-08-28 23:13Core Viewpoint - Gree Electric Appliances reported a significant decline in revenue and net profit for the second quarter of 2025, contrasting with strong growth in the first quarter, indicating challenges in the consumer electronics market, particularly in air conditioning sales [2][5]. Financial Performance - For the first half of 2025, Gree Electric achieved operating revenue of 97.32 billion yuan, a year-on-year decrease of 2.46% [3]. - The net profit attributable to shareholders was 14.41 billion yuan, reflecting a year-on-year increase of 1.95%, while the net profit excluding non-recurring items was 13.95 billion yuan, a slight increase of 0.59% [3]. - In the second quarter alone, Gree's operating revenue fell by 12.11% and net profit decreased by 10.07% compared to the same period last year [4]. Product Segment Performance - The consumer electronics segment, which accounts for nearly 80% of Gree's revenue, experienced a decline of 5.09% [5][6]. - The industrial products and green energy segment saw a growth of 17.13%, while other segments like smart equipment grew by 20%, but their overall contribution to total revenue remains minimal [5][6]. Market Context - Despite Gree's struggles, the overall market for household appliances in China showed positive growth, with air conditioning sales increasing by 8.3% in the first half of 2025 [6]. - The competition in the air conditioning market is intensifying, with low-end models gaining significant market share [6]. Comparison with Competitors - Haier Smart Home, another major player in the industry, reported consistent growth in revenue and net profit, with increases around 10% and 15% respectively, contrasting Gree's performance [7][8]. - Gree and Xiaomi have been involved in a public dispute regarding their market positions, with Gree currently holding the second position in online air conditioning sales, just ahead of Xiaomi [9]. Stock Performance - Gree's stock performance has been relatively stable, with a year-to-date increase of less than 7%, lagging behind the overall home appliance index which rose by 12.48% [9].