3 6 Ke·2025-11-13 00:00Core Viewpoint - The competition between Gree Electric and Xiaomi in the air conditioning market is intensifying, with Gree facing declining revenues and profits while Xiaomi is making significant inroads into the market [1][3][20]. Financial Performance - Gree Electric reported a revenue of 1376.54 billion yuan for the first three quarters, a year-on-year decline of 6.62%, and a net profit of 214.61 billion yuan, down 2.27% [3]. - In Q3, Gree's revenue was 98.55 billion yuan, with a year-on-year decline of 15.09%, and a net profit of 70.49 billion yuan, down 9.92% [4]. - Gree's reliance on its air conditioning business is significant, with projections indicating that by mid-2025, this segment will account for 78.38% of its revenue [5]. Market Position and Competition - Xiaomi has entered the air conditioning market aggressively, briefly surpassing Gree in online sales in June [3][20]. - Gree's market share in the air conditioning sector is currently at 17%, ranking second behind Midea, which holds 29% [20]. Diversification Efforts - Gree has attempted diversification into mobile phones and electric vehicles, but these efforts have not yet yielded significant results [9]. - The company has invested in high-end machine tools and chips, but these sectors have not yet contributed meaningfully to revenue [9]. Channel Strategy - Gree is undergoing a channel reform to adapt to the changing retail landscape, moving from a traditional dealer model to a more integrated online and offline retail approach [12][15]. - The company has launched new retail formats and is transitioning to a flatter, more digital sales structure [16]. Product Strategy - Gree has introduced lower-priced products to compete in the mid-range market, such as the "Jinghong" brand air conditioner priced at 1899 yuan [18]. - Despite these efforts, Gree does not hold a leading position in the AIoT or mid-range product segments [18]. R&D and Innovation - Gree has increased its R&D spending, with expenditures rising from 54 billion yuan to 56.2 billion yuan year-on-year [20]. - The company aims to better translate its R&D outcomes into marketable products that meet consumer demand [20]. Dividend Policy - Despite declining revenues and profits, Gree Electric maintains a high dividend payout, proposing a cash dividend of 10 yuan per 10 shares, totaling 55.85 billion yuan [21].