GREE(SZ:000651) Xin Jing Bao·2025-08-29 13:36Core Viewpoint - Gree Electric Appliances faces intensified market competition, resulting in a decline in revenue despite an increase in net profit for the first half of 2025, highlighting the challenges in the home appliance sector, particularly in air conditioning [1][2]. Financial Performance - For the first half of 2025, Gree reported total revenue of 973.25 billion yuan, a decrease of 2.46% year-on-year, while net profit attributable to shareholders was 144.12 billion yuan, an increase of 1.95% [2]. - In Q2 2025, Gree's total revenue was 599.80 billion yuan, down 12.11% year-on-year, and net profit was 85.08 billion yuan, down 10.07% [2]. - The consumer electronics segment, primarily air conditioning, generated revenue of 762.79 billion yuan, a decline of 5.09% year-on-year, with a gross margin of 33.20%, down 0.29% [3]. Market Competition - The home air conditioning market is experiencing fierce competition, with low-end models priced below 2100 yuan accounting for over 50% of online sales, putting pressure on mid-to-high-end demand [2][3]. - Gree's market share in the air conditioning sector is 23.62%, a slight decrease of 0.17% year-on-year, while Xiaomi's market share increased to 15.32%, up 4.78% [3]. Strategic Initiatives - Gree launched the "Dong Mingzhu Healthy Home" brand strategy, aiming to establish 1,000 stores by 2025, with a focus on enhancing retail value through data visualization and smart interaction [6]. - The company is expanding its product offerings beyond air conditioning to include innovative products in health-related categories, although the contribution to revenue remains limited [6]. Leadership and Governance - Dong Mingzhu was re-elected as the chairperson of Gree's board, with Zhang Wei appointed as the new president, indicating a continuation of leadership amidst ongoing market challenges [6][7]. - The company is preparing for succession, with several candidates being groomed for future leadership roles [7]. Dividend Policy - Gree announced plans not to distribute cash dividends or issue bonus shares for the current year, contrasting with the previous year's generous dividend policy, which may impact investor sentiment [7].