Investment Rating - The report maintains a "Positive" outlook on the commerce and retail industry, highlighting the resilience of domestic demand and the ongoing consumption trends driven by promotional events like the "618" sales [1]. Core Insights - The "618" sales event has seen significant consumer engagement, with platforms extending promotional periods to over four weeks, effectively stimulating demand across various categories [4]. - National subsidies have shifted to a limited distribution model, impacting sales dynamics in categories like home appliances and electronics, with notable sales growth reported [11]. - Domestic brands are experiencing rapid growth, driven by increased consumer demand and a shift in preferences towards high-quality, cost-effective local products [12]. Summary by Sections Market Overview - During the week of June 9 to June 13, 2025, the social service index decreased by 0.01%, while the commerce retail index fell by 1.49%, ranking 15th and 25th respectively among the Shenwan first-level industries [18][19]. Sales Performance - Tmall's "618" event reported that 43 brands achieved over 100 million yuan in sales within the first hour, with overall sales growth exceeding 50% year-on-year [7]. - JD's "Heart-Pounding Shopping Season" saw over 5 billion consumers placing orders, with nearly 80,000 brands doubling their sales compared to the previous year [8]. Consumer Trends - The report indicates a strong preference for domestic brands among younger consumers, with significant sales recorded for local skincare brands during promotional events [14]. - The demand for brand-name products has notably increased, particularly in new-tier cities, driven by promotional discounts [14]. Investment Recommendations - The report suggests focusing on e-commerce platforms that are enhancing online consumption through national policies and strategic investments in AI and instant retail markets, including Alibaba, JD, Meituan, and Pinduoduo [1]. - It also highlights opportunities in premium jewelry brands and department stores that are adapting to consumer needs and enhancing their offerings [1].

Core Viewpoint - Huawei's Pura 80 series, including the Pro and Pro+ models, has officially launched and is experiencing a strong initial sales performance, with improved availability compared to previous models [1][5]. Product Launch and Sales - The Pura 80 series was released on June 14, with the Pro and Pro+ models available for purchase, showing no significant stock shortages [1][3]. - The Pro model is priced at 6499 yuan and the Pro+ at 7999 yuan, maintaining the same price points as the previous generation [5]. - Initial sales reports indicate that stores are selling 50 to 60 units daily, reflecting strong consumer interest [3]. Product Specifications - The Pura 80 Pro features a 50MP one-inch main camera and a 12-core processor, while the Pro+ model includes a high-dynamic one-inch main camera [3]. - Both models run on HarmonyOS 5.1, which does not support downgrading [3]. Market Competition - Xiaomi's recent models, particularly the Xiaomi 15 series, are noted for their performance advantages due to the latest Qualcomm processors, although Huawei's Pura 80 series is praised for its superior build quality [5][6]. - Xiaomi has regained the top position in the Chinese smartphone market with an 18.6% share, benefiting significantly from government subsidy policies [8][9]. Market Trends and Predictions - The smartphone market is facing challenges, with IDC lowering global shipment growth forecasts due to tariff fluctuations and extended replacement cycles [11]. - In China, smartphone sales increased by 8.2% year-on-year during the promotional period from May 1 to June 7, driven by government subsidies and promotional activities [11]. - Huawei's ability to maintain growth and capture more high-end market share with the Pura 80 series is critical, especially as it competes against Apple and Xiaomi [11][12].

Core Insights - The company DeShiMan has secured the industry sales champion for the 618 e-commerce promotion, with its flagship product, the DaSheng Q5FPro, achieving multiple top rankings across various e-commerce platforms [1][3][4] Group 1: Sales Performance - DeShiMan's DaSheng Q5FPro ranked first in several official sales lists, including JD's electronic lock popularity list and Douyin's home decoration hot sales list during the 618 event [1][3] - On the first day of the 618 sales, DeShiMan achieved the dual championship in sales volume and sales amount across all platforms, as well as in the high-end smart lock category [3] - The DaSheng Q5FPro has consistently performed well in past promotions, including ranking first in sales during the 2024 Double 11 event on JD [3] Group 2: Product Features - The DaSheng Q5FPro is equipped with advanced technologies such as GPTfinger fingerprint recognition, a high-torque LongTing motor, and the D-Power smart endurance system [3] - It features an AI smart peephole, a 4-inch high-definition screen, and 3D facial recognition, offering nine unlocking methods and a super power-saving mode with a battery life of up to nine months [3] Group 3: Promotional Strategies - DeShiMan has implemented various promotional strategies, including significant discounts and subsidies during the 618 event, such as a 150 yuan discount for purchases over 1500 yuan on Tmall and additional reductions on JD [4] - The company is actively responding to national policies promoting consumption upgrades, providing substantial benefits to consumers [4] - A live-streaming event featuring the company's president is scheduled to offer additional promotions and incentives, enhancing consumer engagement [4]

Core Viewpoint - The article highlights the ongoing "6.18" online shopping promotion and the regulatory measures taken by the National Market Supervision Administration to prevent fraudulent activities related to government subsidies for consumer vouchers [1][10]. Group 1: Regulatory Actions - The National Market Supervision Administration issued compliance guidelines specifically addressing the prevention of fraudulent claims related to government subsidies during the "6.18" promotion [1]. - The guidelines emphasize the need to regulate promotional activities and prevent behaviors that exploit government subsidies [1]. Group 2: Fraud Cases - A notable case involved a restaurant manager who was sentenced to three years in prison (with a three-year probation) for fraudulently cashing out 137,000 yuan (approximately 20,000 USD) using consumer vouchers [8][10]. - The manager exploited the "乐品上海" consumer voucher program by creating fictitious transactions to redeem multiple vouchers, ultimately defrauding the government [10]. - Similar fraudulent activities have been reported in other regions, such as a case in Zhuhai where a shop owner was sentenced for using consumer vouchers to illegally obtain government subsidies [11]. Group 3: Legal Risks - The article outlines the legal risks associated with fraudulent activities related to consumer vouchers, indicating that collusion between individuals and businesses to defraud government subsidies can lead to severe legal consequences [11]. - The Shanghai court noted that individuals involved in the resale of consumer vouchers may face restrictions from participating in future promotional activities due to violations of honesty and integrity principles [11]. Group 4: Broader Context - The article mentions that various regions are actively combating fraudulent claims related to government subsidies, with specific examples of companies being penalized for violating subsidy rules [12]. - The government aims to ensure that consumer vouchers serve their intended purpose of promoting consumption and supporting industry development, especially during peak shopping seasons like "6.18" [12].

Group 1 - The "618" shopping festival is experiencing significant sales growth, driven by national subsidy policies that stimulate consumer spending [1][2] - Major e-commerce platforms report impressive sales figures, with categories like smartphones, computers, and smart devices seeing over 100% year-on-year growth [1] - Brands such as Huawei, Xiaomi, and Midea have reported sales increases exceeding 200% during the initial phase of the "618" event [1][2] Group 2 - The participation in national subsidies has led to a 283% increase in total sales for home appliances and digital products compared to last year's "Double 11" event [2] - Live streaming sales, particularly in small appliances, have become a significant growth driver, with emerging domestic brands performing exceptionally well [2] - The demand for air conditioners and cleaning appliances is expected to surge in the second quarter, with intensified competition in these categories [2] Group 3 - The continuation of national subsidies is anticipated to positively impact domestic demand for home appliances, benefiting leading brands with strong financial capabilities and comprehensive distribution channels [3] - The implementation of "old for new" policies has significantly boosted consumer spending, with substantial sales figures reported in various regions [3][4] - As of early June, the "old for new" program has led to the sale of millions of home appliances and digital products, contributing to a notable increase in overall sales [3][4]

Summary of Hisense Home Appliances Conference Call Industry Overview - The air conditioning market is highly competitive, with significant price pressure on flow models and cost-effective models. The national subsidy policy is being utilized quickly in coastal eastern regions, although some areas face funding shortages, which are expected to be resolved later. The policy has a significant positive effect on consumer demand [2][3][7] - The home appliance industry is experiencing single-digit growth in domestic sales, particularly after the 618 shopping festival began on May 13. Online sales growth has significantly improved in May, with a notable change in sales structure for refrigerators, air conditioners, and washing machines compared to the same period last year [3][21] Company Performance - Hisense's air conditioning installation card growth in May was in the high single digits, with new air conditioning installations exceeding 50% growth, accounting for over 20% of domestic sales. The company is actively expanding online channels for its flow models [4][5] - Hisense employs a K-shaped pricing strategy, improving the average price of high-end products while reducing prices for flow models due to intense competition [6] - The company anticipates that the effects of the national subsidy policy will become evident in the second quarter, with expectations for additional government funding to stimulate consumption [7][8] Market Dynamics - The central air conditioning market is expected to remain weak in the second quarter, with inventory levels around 90 days. The C-end and public construction sectors are expected to maintain single-digit growth, with profit margins stabilizing around 17% [9][10][11] - The overseas market, particularly in emerging regions like ASEAN, is expected to see strong growth, with overseas revenue growth and profit margin improvements being more certain than in the domestic market [12][13][14] Challenges and Strategies - Issues with the national subsidy policy include regional funding shortages and irregularities, which may lead to localized market disruptions. However, the overall impact is expected to be positive as more funds are anticipated to be allocated [7][19] - Hisense's strategy in response to the national subsidy policy involves requiring dealers to pre-finance, which may affect promotional activities during the 618 shopping festival [8][18] - The company plans to leverage the 618 shopping festival for marketing, with strategies tailored to optimize sales performance based on current trends [21][23] Future Outlook - Hisense aims to continue pushing for high-end product offerings, with plans to launch more products priced above 10,000 yuan. The company is also focusing on energy efficiency upgrades in the refrigerator sector [22] - The overseas marketing strategy includes sponsorship of major sports events like the World Cup and NBA, with a focus on expanding into new markets in the Middle East, Africa, ASEAN, and Latin America [25] Conclusion - Hisense Home Appliances is navigating a competitive landscape with strategic pricing and marketing initiatives while responding to government policies and market demands. The company is optimistic about growth in both domestic and international markets, particularly in emerging regions, despite facing challenges related to funding and competition.

Core Viewpoint - The article emphasizes that Xiaomi has emerged as the biggest winner from the recent national subsidy policy, significantly boosting its market position and sales performance in the smartphone sector [4][11]. Group 1: National Subsidy Impact - The national subsidy policy, which provided consumers with a 15% subsidy on eligible digital products, led to a substantial increase in smartphone sales, with a 65% year-on-year growth in the week following its implementation [2][3]. - In the first quarter of 2025, the total shipment of smartphones in China reached 70.9 million units, a 5% increase year-on-year, with Xiaomi reclaiming the top position in market share for the first time in ten years [3][6]. - The subsidy policy has accelerated the competition among smartphone brands, with Xiaomi's performance being particularly strong, as it capitalized on the subsidy to enhance its market share and sales [3][4]. Group 2: Xiaomi's Financial Performance - Xiaomi's total revenue for the first quarter of 2025 reached 111.3 billion yuan, a 47.4% increase year-on-year, with adjusted profits rising by 64.5% to 10.7 billion yuan [6][9]. - The average selling price (ASP) of Xiaomi smartphones hit a record high of 1,211 yuan, reflecting a 5.8% year-on-year increase, while the market share of high-end models rose to 25% [6][7]. - Xiaomi's smartphone shipments in China reached 13.3 million units, a 39.9% increase compared to the same period last year, solidifying its market leadership [7][9]. Group 3: Competitive Advantages - Xiaomi's success is attributed to its strong product capabilities, brand strength, channel efficiency, and ecosystem integration, which have collectively enhanced its market competitiveness [11][12]. - The company has effectively utilized its extensive product line to increase consumer engagement and shopping experience, leading to higher brand exposure and sales [12][13]. - Xiaomi's automotive business, although not directly involved in the subsidy, has significantly boosted the brand's visibility and market presence, contributing to its overall growth [14][26]. Group 4: Future Outlook - The article suggests that while the national subsidy has provided a temporary boost, its long-term effects may diminish, leading to increased market competition and potential risks for manufacturers [24][25]. - Xiaomi is expected to continue leveraging its ecosystem strategy and technological advancements to maintain its competitive edge, with plans for significant R&D investments in the coming years [29][28]. - The company aims to expand its user base to over 200 million by 2026, indicating a strong growth trajectory despite potential market fluctuations [29].

Core Viewpoint - The recent suspension of national subsidies for old-for-new appliance exchanges has sparked significant discussion, primarily due to the depletion of funds in various regions, leading to concerns about the future of these subsidy programs [1][10][12]. Summary by Sections Suspension of Subsidies - Several regions, including Chongqing, have announced the suspension of old-for-new appliance subsidies due to the exhaustion of available funds, with Chongqing being the first to completely deplete its budget as of June 4 [1][9]. - Other areas, such as Gansu and Jiangsu, have also halted their subsidy programs, indicating a broader trend of funding shortages across the country [9][10]. Reasons for Suspension - The suspension in Jiangsu was attributed not only to fund depletion but also to significant market imbalances and fraudulent activities by some merchants exploiting the subsidy system [6][7]. - Issues such as online platforms undercutting brick-and-mortar stores have led to customer loss for physical retailers, resulting in some businesses closing and contributing to local unemployment [7][8]. Future of Subsidies - Despite the current suspensions, local authorities in regions like Chongqing and Jiangsu have indicated that new rounds of subsidies are being planned, with expectations for re-launching the programs soon [12][13]. - The Chongqing Commerce Commission is drafting a second phase of the subsidy policy, expected to be released in early June, which will continue to support consumer upgrades to green and smart appliances [13][14]. Impact of Subsidies - The national subsidy policy has significantly stimulated consumer demand, as evidenced by a 21.5% year-on-year increase in the tablet market in Q1 2025, attributed to these subsidies [15]. - The core objectives of the subsidy program include promoting consumption upgrades, facilitating industrial transformation, and improving living standards, which require ongoing policy support for maximum effectiveness [15].

Group 1: Investor Relations Activity - The investor relations activity took place on June 4, 2025, at 14:00 in Chengdu Jinjiang Chunxi Road Store [1] - Participants included representatives from Changjiang Securities and company executives [1] Group 2: Key Discussion Points - Investors expressed interest in the implementation of the national subsidy policy post-2025 and its impact on sales [1] - The visit included an overview of various product categories and brands related to national subsidies, as well as online and offline sales conditions [1] - The discussion highlighted the role of additional subsidies for 3C digital products and regional development plans [1] Group 3: Compliance and Disclosure - The company adhered to the "Information Disclosure Management System" to ensure the accuracy and timeliness of information shared [1] - No significant undisclosed information was leaked during the meeting, and a commitment letter was signed as per the Shenzhen Stock Exchange requirements [1]

Summary of Conference Call Records Industry Overview - The records primarily discuss the impact of the suspension of national subsidies (国补) on the black electrical appliances market, particularly in regions like Chongqing, Guangdong, and Jiangsu, which are significant for sales and production [1][2][3]. Key Points and Arguments 1. **Impact of Subsidy Suspension**: The suspension of national subsidies in regions like Chongqing and Guangdong has significantly affected the black electrical appliances market, leading to a decline in sales [1][2][3]. 2. **Market Dynamics**: The cross-province subsidy policy allowed companies registered in specific cities to sell nationwide while enjoying local government subsidies. This policy has been disrupted, causing market disorder [1][5]. 3. **E-commerce Competition**: In 2025, JD.com’s advantage in self-operated business through national subsidies is diminishing as platforms like Tmall and Douyin enter the competition [1][6]. 4. **Sales Growth**: During the subsidy period, major appliances saw significant growth, particularly in kitchen and bathroom appliances, with 70% of GMV contributed by subsidized products [1][7]. 5. **Sales Performance**: JD.com’s growth rate for major appliances in Q1 2025 was only 13%, falling short of the 20% target, indicating a slowdown in demand [1][21]. 6. **Consumer Behavior**: Consumers are willing to purchase appliances from other regions to take advantage of subsidies, especially when the subsidy amount is substantial [14]. 7. **Real Estate Market Influence**: The lack of explosive growth in appliance demand is attributed to the weak real estate market and demand being pulled forward in late 2024 due to subsidy rumors [15]. 8. **Future of Subsidy Policies**: The national subsidy policy is expected to continue beyond one year, despite local government financial pressures, as the overall goal is to stimulate consumption [16][18]. Additional Important Content 1. **Subsidy Usage**: The specific reasons for the suspension of subsidies include significant funding gaps in local governments, rather than system upgrades [2][4]. 2. **Product Performance**: Categories like kitchen appliances and air conditioners showed notable growth during the subsidy period, with average prices for kitchen appliances increasing from 2,200 yuan to approximately 2,800 yuan [10]. 3. **Online vs. Offline Sales**: Despite rumors of a shift towards offline sales, online platforms like JD.com and Tmall continue to dominate, with significant sales through online channels [12][23]. 4. **Sales Events**: The pre-sale period for JD.com’s 618 event in 2025 did not yield significant sales increases, only achieving 1.2 to 1.3 times the usual sales [19][22]. 5. **Government Settlement Processes**: The settlement cycle for subsidies varies by province, typically taking one to three months [8]. This summary encapsulates the critical insights from the conference call records, highlighting the challenges and dynamics within the black electrical appliances market amid changing subsidy policies and competitive pressures.