GREE(SZ:000651) Hua Er Jie Jian Wen·2025-10-30 15:51Core Viewpoint - Gree Electric Appliances reported a mixed Q3 financial performance, with both revenue and profit declining year-on-year, but significant improvement in operating cash flow due to cost control and increased sales collection [1][2][4]. Financial Performance - Q3 revenue was 39.86 billion yuan, a year-on-year decrease of 15.09%, while year-to-date revenue reached 137.18 billion yuan, down 6.50% [1][2][6]. - Net profit attributable to shareholders for Q3 was 7.05 billion yuan, down 9.92% year-on-year, with a year-to-date net profit of 21.46 billion yuan, a decrease of 2.27% [1][2][6]. - The basic and diluted earnings per share for Q3 were both 1.26 yuan, reflecting an 11.27% decline [1][6]. Cash Flow - Operating cash flow for the first three quarters surged to 45.73 billion yuan, a remarkable increase of 259.71% year-on-year, driven by improved sales collection and reduced expenses [1][4][6]. - Cash received from sales was 139.99 billion yuan, up 11.1% year-on-year, contrasting with the revenue decline [4][6]. Profitability and Margins - The gross profit margin for the first three quarters was 28.5%, an increase of 0.67 percentage points year-on-year, attributed to cost control and product structure optimization [5][6]. - Operating costs decreased by 5.6% year-on-year, which was greater than the revenue decline, contributing to the improved gross margin [5][6]. Research and Development - R&D expenses totaled 5.62 billion yuan, representing 4.1% of revenue, an increase of 0.45 percentage points compared to the previous year, indicating a commitment to technological upgrades despite revenue challenges [1][5][6]. Inventory and Debt - Inventory decreased from 27.91 billion yuan at the beginning of the year to 25.34 billion yuan, a decline of 9.2%, suggesting reduced pressure on channel inventory [7][6]. - The debt structure worsened, with the debt-to-asset ratio at 62.8% and short-term borrowings increasing by 69.5% to 66.1 billion yuan [6].