Core Viewpoint - The smart home industry is entering a rapid development phase, driven by advancements in big data, cloud computing, and artificial intelligence, leading to a projected market size of approximately 784.8 billion yuan in 2024 and expected to exceed 800 billion yuan in 2025 [1] Group 1: Industry Development - The Ministry of Industry and Information Technology, along with five other departments, has introduced a plan to enhance the adaptability of consumer goods supply and demand, positioning smart home technology as a new growth area [1] - The transition from smart individual products to whole-home smart solutions aims to create an immersive, proactive, and interconnected smart living experience [1] Group 2: Technological Advancements - Current smart home products are evolving towards autonomous control through "perception + reasoning, decision-making + execution," integrating new technologies like large models into the smart home process [2] - The Huawei HarmonyOS smart home solution exemplifies this trend by actively monitoring air quality and automatically adjusting systems to maintain optimal conditions [2] Group 3: Market Potential - The complete supply chain in China's smart home industry supports robust production capabilities, meeting both domestic and global market demands [3] - Despite the growing popularity of whole-home smart solutions, over 60% of users lack systematic understanding, and 80% have not established clear purchasing pathways, indicating significant untapped market potential [3] - Future advancements in smart home technology are expected to enhance user experience through seamless integration of hardware, software, and services, focusing on areas like elderly care and energy management [3]

Core Insights - The 2026 Beijing International Consumer Electronics Expo will take place from June 10 to 12, 2026, focusing on "full-scenario technology coverage, empowering global outbound" [2] - The expo will feature eight core exhibition areas, covering smart home, whole-home intelligence, low-altitude economy, artificial intelligence, outdoor intelligence, and pet technology, creating a comprehensive display platform for the consumer electronics industry [2][3] - The event aims to facilitate global resource linkage and international market expansion for participating companies [2] Exhibition Areas - The smart home area will showcase innovations in smart lighting, security, and kitchen products, addressing consumer needs for convenience in home life [2] - The whole-home intelligence area will highlight system integration and collaborative interaction, demonstrating an immersive smart living experience through unified control [2] - The low-altitude economy area will feature electric vertical takeoff and landing vehicles, drones, and low-altitude traffic management systems, exploring commercial applications in low-altitude travel and logistics [3] - The artificial intelligence area will focus on AI model deployment, multimodal interaction, and smart algorithms, showcasing products like AI smartphones and intelligent driving assistance systems [3] - The outdoor intelligence area will include portable energy storage, smart sports equipment, and environmental monitoring devices for outdoor activities [3] - The pet technology area will present smart wearables and health monitoring devices for pets, catering to the trend of refined pet care [3] Market Opportunities - The expo will provide a platform for 36,000 paid professional visitors and over 50 international purchasing groups, enabling efficient connections between exhibitors and global market demands [4] - The global consumer electronics market reached $1.2 trillion in 2025, with the Asia-Pacific region accounting for over 40%, indicating significant growth potential for participating companies [4] - The organizing committee is optimizing exhibition area functions and service systems to enhance synergy and resource aggregation, supporting companies in technology exchange, business cooperation, and brand internationalization [4]

Core Insights - The partnership between Kunming Anju Group and Huawei marks a significant step towards integrating technology into housing and urban development, aiming to enhance living standards through smart solutions [1][6]. Group 1: Collaboration Overview - The signing of the cooperation agreement signifies a deep consensus between the two companies in upgrading urban living and empowering real estate with technology [1]. - Both parties will leverage their respective resources and technological advantages to accelerate the development of smart buildings and digital home ecosystems [3]. Group 2: Business Focus Areas - The collaboration will focus on five key business areas: affordable housing development and operation, market-oriented asset operation, market-oriented real estate development, property management, and related community services [3]. - The goal is to transition from merely providing housing to ensuring quality living, emphasizing safety, comfort, sustainability, and intelligence in housing standards [3]. Group 3: Technological Empowerment - Kunming Anju Group, as the largest residential service provider in the province, has extensive experience in housing project management, serving nearly 60,000 families and 150,000 residents [5]. - Huawei, a global technology leader, offers mature solutions in smart home ecosystems and has successfully implemented its "1+2+N" smart home architecture in various urban projects [5]. Group 4: Strategic Significance - This partnership aligns with national strategies to deepen smart city development and promote digital transformation across urban areas [6]. - The agreement aims to enhance the quality of life for residents and contribute to the construction of smart cities, showcasing the integration of technology and housing [6].

Core Viewpoint - The Shenzhen Municipal Bureau of Housing and Urban-Rural Development and the Shenzhen Municipal Bureau of Industry and Information Technology have jointly issued an action plan to accelerate the promotion and industrial development of whole-house smart applications from 2026 to 2028, aiming to enhance living quality and improve the urban environment in Shenzhen [1][2] Group 1: Action Plan Objectives - The action plan focuses on advancing the construction of "good houses," expanding multi-scenario applications, and creating a new industrial cluster for whole-house smart technology [1] - By the end of 2026, the core competitiveness of the whole-house smart industry is expected to be further enhanced, with a basic industrial ecosystem formed and improved foundational support such as operating systems and chips [1] - By the end of 2028, significant achievements in the development of the whole-house smart industry are anticipated, with a mature industrial ecosystem and broader application scenarios in smart city construction [1] Group 2: Key Tasks - The action plan outlines three main tasks: strengthening technological breakthroughs and foundational capability supply, enhancing high-quality development momentum in the industry, and improving the multi-scenario application level of whole-house smart products [2]

Core Viewpoint - The Shenzhen government has approved an action plan to accelerate the promotion and development of smart home applications and industries from 2026 to 2028, focusing on pilot projects and regional initiatives [1] Group 1: Action Plan Details - The action plan includes the implementation of various pilot demonstration projects [1] - The Longgang District will be a key area for the first batch of national digital home pilot projects [1] - Each district is encouraged to promote unique district-level pilot projects tailored to local conditions [1] Group 2: Project Development - The plan aims to create benchmark applications at the project level [1] - There will be organized on-site observation activities for smart home pilot projects [1]

Core Viewpoint - The Shenzhen government has approved an action plan to accelerate the promotion and development of the whole-house smart application industry from 2026 to 2028, aiming to enhance core competitiveness and establish a mature industrial ecosystem [1] Group 1: Industry Development Goals - By the end of 2026, the core competitiveness of the whole-house smart industry is expected to be further enhanced, with a basic industrial ecosystem formed and improved foundational support such as operating systems and chips [1] - The plan emphasizes the deep application and promotion of whole-house smart solutions in new buildings and renovations of existing structures, as well as in public services and urban governance within smart city construction [1] Group 2: Long-term Vision - By the end of 2028, significant achievements in the development of the whole-house smart industry are anticipated, with a mature industrial ecosystem and a more integrated innovation ecosystem [1] - The foundational support, including operating systems and chips, is expected to be more mature, with broader application scenarios in smart city construction, ultimately aiming to establish Shenzhen as a leading city in whole-house smart development both domestically and internationally [1]

Group 1 - The renovation and building materials sector experienced a slight decline, closing at 16,145.05 points with a drop of 0.22% [1] - Yong'an Forestry led the decline in the sector, closing at 8.99 CNY per share with a decrease of 10.01% [1] - Huaci Co. and *ST Yazhen followed, closing at 16.73 CNY per share with a drop of 7.98% and 43.23 CNY per share with a drop of 4.99% respectively [1] Group 2 - Meike Home led the gains in the sector, closing at 2.65 CNY per share with an increase of 9.96% [1] - Leizhi Group and *ST Nachuan also saw gains, closing at 6.85 CNY per share with an increase of 9.95% and 2.64 CNY per share with an increase of 6.02% respectively [1] Group 3 - According to a report by EIU Think Tank, the robust development of technology markets supports the stable growth of China's whole-home smart industry [1] - The smart home market in China is projected to exceed 1 trillion CNY by 2025, driven by the increasing maturity of technology and the expansion of product supply [1] - Major players in the internet, home appliances, and traditional hardware sectors are actively entering the smart home market, leading to a diversified development of the industry [1]

Core Insights - The Chinese whole-home smart industry is experiencing a growth trend in revenue, with a projected revenue of 211.85 billion in 2024, reflecting a growth rate of 10.6% [1] - The industry's sales gross margin shows a fluctuating trend, peaking at 34.8% in 2023 before declining to 33.5% in 2024 [2] - Inventory turnover rates are on a downward trend, decreasing from 5.14 times in 2020 to 4.64 times in 2024, attributed to changing consumer demands and rapid product updates [6] - Accounts receivable turnover rates have also shown a declining trend, from 17.53 times in 2020 to 15.23 times in 2024, indicating increasing management pressure [9] - The asset-liability ratio has fluctuated, decreasing to a low of 42.1% in 2022, then rising to 44.4% in the first half of 2025, reflecting dynamic adjustments in capital structure [11] Revenue Trends - The average revenue of representative companies in the Chinese whole-home smart industry is expected to grow significantly, reaching 211.85 billion in 2024, with a notable increase in the first half of 2025 at 116.69 billion [1] Profitability Analysis - The sales gross margin for the industry has shown volatility, starting at 33.9% in 2020, dropping to 32.2% in 2021, and then rising to 34.8% in 2023 before falling to 33.5% in 2024 [2] Inventory Management - The inventory turnover rate has decreased from 5.14 times in 2020 to 4.64 times in 2024, influenced by diverse consumer preferences and concerns over product depreciation [6] Accounts Receivable Management - The accounts receivable turnover rate has declined from 17.53 times in 2020 to 15.23 times in 2024, reflecting increased challenges in managing receivables [9] Capital Structure - The asset-liability ratio has shown a downward trend to 42.1% in 2022, followed by a rise to 44.4% in the first half of 2025, indicating changes in the industry's capital structure [11]

Core Viewpoint - Midea has implemented a policy prohibiting its after-sales service providers from simultaneously collaborating with Xiaomi or Gree, primarily targeting Xiaomi due to its significant sales growth in air conditioning this year, which has posed a competitive threat to Midea [1][5] Group 1: Industry Competition - The competition among major home appliance brands is intensifying, with Midea's policy change quickly becoming a trending topic on social media [1] - Midea has denied any forced collaboration restrictions, indicating a potential discrepancy in reports from various media outlets [1][4] - The relationship dynamics between Xiaomi and Gree are complex, with historical factors influencing public perception of their rivalry [5] Group 2: Market Position and Performance - In July, the top five air conditioning brands in China were Midea, Gree, Haier, Xiaomi, and Aux, with Midea experiencing a 1% decline and Xiaomi emerging as a notable competitor [6] - During the recent Double Eleven shopping festival, the sales rankings for air conditioning brands were Gree, Midea, Xiaomi, Hualing, and Haier, indicating Xiaomi's strong market presence [7] - Price competition is escalating, with average prices for air conditioning units dropping significantly, reflecting the aggressive strategies of leading brands [8] Group 3: Financial Insights - Xiaomi's air conditioning segment has a net profit margin of approximately 2%, while Midea's and Haier's margins are significantly higher, indicating a challenging financial landscape for Xiaomi [8] - Despite a 5.6% year-on-year revenue growth in Xiaomi's IoT and lifestyle products segment, there was a noticeable decline compared to the previous quarter, highlighting the competitive pressures in the home appliance sector [8] Group 4: International Expansion - Midea's overseas revenue reached 107.2 billion yuan in the first half of 2025, marking a 17.7% year-on-year increase, establishing it as a significant growth driver [9] - Haier's overseas revenue accounted for over 50% of its total revenue, showcasing its strong international presence [9] - Gree's overseas revenue reached 16.78% of its total, indicating room for growth in international markets [9] Group 5: Technological Advancements - The leading home appliance brands are heavily investing in technology and innovation, with Haier holding the highest number of smart home invention patents globally [10] - Xiaomi is pursuing a comprehensive ecosystem strategy, integrating its products with smart home technology, which may provide a competitive edge [10][11] - The smart home market in China is projected to reach 1.36 trillion yuan by 2030, indicating significant growth potential for all major players [11]

Core Insights - The smart home sector is witnessing an influx of players, with companies like Honor officially entering the market by adapting to Home Assistant and supporting the Matter protocol, while Xiaomi's AIoT platform has connected over 1 billion IoT devices for the first time, marking a year-on-year growth of over 20% [1][3][8]. Group 1: Company Strategies - Xiaomi has evolved from a mobile phone manufacturer to a comprehensive consumer electronics brand with a complete ecosystem of home appliances and IoT products, including smart speakers, air conditioners, and more, all integrated under the Mi Home app [5][8]. - Huawei's strategy focuses on creating a unified operating system, HarmonyOS, which integrates various devices into a distributed system, aiming to transform homes into "super devices" [9][11]. - Apple maintains a strong user experience with its HomeKit but is limited by its ecosystem, relying on third-party manufacturers for device compatibility, which restricts its market reach compared to competitors [12][15]. - Honor aims to be a coordinator of smart devices rather than a manufacturer of home appliances, focusing on interoperability through industry-standard protocols like Home Assistant and Matter [16][18]. Group 2: Competitive Landscape - Traditional home appliance giants like Midea, Haier, and Gree are shifting their focus to whole-home smart solutions, leveraging their hardware expertise and understanding of user needs to maintain a competitive edge [19][21]. - The competition is evolving from single smart products to system collaboration, allowing mobile manufacturers to re-enter the market, but traditional appliance manufacturers still hold significant advantages in hardware performance and user experience [22][25]. - New entrants in the smart home market, such as Euribot and Green米, are focusing on foundational smart home components, while emerging players like Chasing are rapidly expanding their product offerings across various categories [23][24]. Group 3: Future Outlook - The future of the smart home market is expected to be characterized by coexistence among various players, with mobile manufacturers offering flexible product choices and traditional appliance manufacturers providing reliable performance and integrated solutions [25][27].