GREE(SZ:000651) Sou Hu Cai Jing·2025-08-31 23:57Core Viewpoint - Gree Electric's diversification strategy has not been as successful as that of its competitors, Midea and Haier, with manufacturing revenue accounting for 89.9% of total revenue, and only 10.1% from other businesses [1] Financial Performance - For the first half of 2025, Gree Electric reported revenue of 97.33 billion yuan, a year-on-year decrease of 2.46%, while net profit attributable to shareholders was 14.41 billion yuan, an increase of 1.95% [3] - In Q2 2025, total revenue was 59.98 billion yuan, down 12.11% year-on-year, and net profit was 8.51 billion yuan, down 10.07% [3][5] - The company announced no cash dividends or stock bonuses due to declining performance, leading to a 5.88% drop in stock price the following day [5] Market Competition - Gree Electric faces intense competition in the air conditioning market, particularly from Xiaomi, which aims to become a top player by 2030 [6] - Gree's market share in the online air conditioning market was 23.62%, a decrease of 0.17%, while Xiaomi's market share increased to 15.32%, a growth of 4.78% [7] Diversification Challenges - Gree Electric has struggled with diversification efforts, with investments in sectors like new energy and small appliances not yielding significant results [8] - In contrast, Midea and Haier have successfully diversified their revenue streams, with Midea generating 66.85% of its revenue from smart home products and Haier having a more balanced revenue structure across various appliances [9] Future Outlook - Analysts suggest that Gree Electric must pursue diversification to overcome market challenges, recommending a reduction in dividend payouts and a focus on expanding into small appliances and related new energy markets [10]