Core Viewpoint - The 2025 China (Shanghai) International Fruit and Vegetable Exhibition showcased the innovative capabilities of Rongsheng Refrigerator, highlighting its transformation from a traditional food storage appliance to a "growth chamber" for fruits and vegetables [1][3]. Group 1: Product Innovation - Rongsheng's WILL series refrigerator features the WILL Natural Fresh-keeping Technology, which simulates a growth environment for fruits and vegetables, extending their lifespan by an additional 7 days and reducing nutrient loss [3]. - The technology incorporates three core elements: light, water, and ions. The SUPL multi-frequency light system allows for photosynthesis, enhancing the retention of nutrients such as lutein, chlorophyll, and vitamin C compared to standard refrigerators [3]. - The smart dynamic water mist system creates a protective layer for fruits and vegetables, locking in moisture and flavor, while the AI negative ion sterilization system ensures food safety by eliminating various contaminants [3][5]. Group 2: Market Positioning and Strategy - Rongsheng Refrigerator positions itself as a crucial guardian of family health, focusing on technological innovation to meet the public's demand for healthier living [5]. - The company has engaged in initiatives like the "Seeking Fresh Journey" to empower local agricultural brands and enhance the reputation of regional agricultural products, contributing to rural revitalization and increasing farmers' income [5][7]. - The collaboration between Rongsheng and local agricultural products at the exhibition exemplifies a complete value chain from production to household fresh-keeping, indicating a future trend of deep integration between home appliances, agriculture, and technology [7].

Core Insights - The event organized by Rongsheng Refrigerator in Changsha JD MALL featured a unique "flash + live" brand experience, showcasing the company's innovative technologies and engaging storytelling [2][4] - The live broadcast highlighted the IDP Dual Purification 2.0 technology and WILL Fresh-keeping technology, emphasizing the brand's commitment to providing a healthy lifestyle through effective food preservation [2][4] Group 1: Event Highlights - The event featured actress He Hongshan as a "super user," who performed in an immersive live drama that creatively integrated ancient and modern themes [2] - The storyline revolved around food preservation challenges, showcasing the capabilities of the Rongsheng Fangtang refrigerator, particularly its 99.9% active odor removal rate and zero cross-contamination effect [2][4] - The live broadcast served as a platform for deep communication of the brand's values, effectively addressing consumer demands for food preservation and quality living [4] Group 2: Product Performance - The Rongsheng 511 WILL refrigerator demonstrated its ability to rejuvenate wilted fruits and vegetables, reinforcing the product's promise of extreme freshness and food safety [4] - The event included a segment where the company president recommended various models from the Fangtang series, highlighting their technical advantages in odor and virus purification [4] - Data from AVC indicated that the Rongsheng Fangtang refrigerator flagship model ranked first in offline new product sales from January to June 2025, while the 515 model topped online sales for French-style four-door refrigerators, showcasing a "dual-line leading" position in the market [4][5] Group 3: Market Impact - As the Double Eleven pre-sale period approaches, the competitive edge of the Fangtang series refrigerators is expected to further intensify, with two models ranking among the top three in market sales during the 41st week of 2025 [5] - The "flash + live" event not only energized sales for Double Eleven but also provided a model for the industry on how to synergize technological innovation with user insights [5]

Core Insights - The "21st China Household Appliance Innovation Achievement Promotion" event was successfully held during the IFA 2025 in Berlin, where the Rongsheng brand was awarded the "Annual Technology Innovation Achievement" for its "WILL Natural Fresh-keeping Technology" [1][4] Group 1: Technology Innovation - Rongsheng's WILL Natural Fresh-keeping Technology integrates three core elements: light, water, and ions, transforming the traditional passive preservation method into an active fresh-keeping approach [4] - The technology simulates a natural ecological environment within the refrigerator, creating a mini "fruit and vegetable growth garden" that maintains or even enhances the nutritional value of stored ingredients [4] - The core breakthroughs of this technology are based on three systems: - The SUPL four-season multi-frequency light system promotes photosynthesis in fruits and vegetables, increasing the content of vitamins and chlorophyll [4] - The smart dynamic water mist system maintains 70% humidity, effectively delaying moisture loss and preserving the texture of fruits and vegetables [4] - The AI negative ion high-energy sterilization and deodorization system releases a high concentration of negative ions, achieving multiple health and quality benefits for stored food [4] Group 2: Market Performance - In the first half of 2025, six models of Rongsheng refrigerators, including the Rongsheng 560 WILL refrigerator, ranked among the top ten in industry sales, demonstrating strong market appeal and consumer recognition [4]

Core Insights - The automatic ice-making function is evolving from a high-end feature to a standard configuration in mid-to-high-end refrigerators, driven by the rising "ice culture" in consumer trends [1][2] - Rongsheng brand refrigerator has received the industry's first technical certification for automatic ice-making, marking a significant step towards standardization in the refrigerator industry [1][3] - The certification addresses long-standing issues such as low ice-making efficiency and hygiene concerns, providing a framework for improved consumer experience and industry standards [1][2][3] Industry Trends - The demand for ice has become a new necessity in family life, with applications expanding from beverages to food preservation and creative cooking [2] - 90% of consumers are willing to pay a premium for refrigerators with automatic ice-making capabilities, leading to a significant increase in sales of such products [2] - Despite market growth, there are notable gaps in user experience, with some products taking over 80 minutes to produce ice, highlighting the need for improved efficiency [2][3] Technological Advancements - Rongsheng has developed a comprehensive clean system to address hygiene concerns, utilizing high antibacterial materials and advanced AI technology [3] - The company has achieved a new level of ice-making efficiency, completing a cycle in 60 minutes under rapid mode, which enhances user satisfaction [3] - The technical certification sets a new benchmark for the industry, indicating a shift towards differentiated competition and the potential for automatic ice-making to become a new value driver in the refrigerator market [3]

Core Viewpoint - The rise of homemade coffee and ice drink culture has led to an increased demand for refrigerators with ice-making functions, marking the beginning of the "ice-making era" in the industry [1][4]. Group 1: Industry Trends - The demand for ice cubes has grown significantly as consumers increasingly prefer homemade beverages, leading to a diversification in the need for refrigerators equipped with ice-making capabilities [1][4]. - The introduction of the first "automatic ice-making performance certification" by Rongsheng Refrigerator signifies a major advancement in the technical standards and quality assurance systems within the ice-making function of refrigerators [1][4]. Group 2: Consumer Needs and Challenges - Current challenges in the automatic ice-making process include slow ice-making speed, melting ice cubes, small storage capacity, hygiene issues related to water storage, and the potential for cross-contamination of flavors [2][3]. - Consumers are demanding cleaner and higher-quality ice cubes, which has prompted companies to innovate and improve their ice-making technologies [3][4]. Group 3: Company Innovations - Rongsheng Refrigerator has increased its R&D investment in ice-making technology, with the W60 series capable of producing ice in just 60 minutes and featuring antibacterial designs and easy-to-clean components [3][4]. - The automatic ice-making technology developed by Rongsheng covers four key advantages: cleanliness, efficiency, quality assurance, and user convenience, addressing core consumer needs [4]. Group 4: Industry Impact - The certification of Rongsheng's automatic ice-making technology sets a new technical benchmark for the refrigerator industry, indicating the formal arrival of the "ice-making era" and outlining future development directions [4].

Core Insights - The rising trend of homemade ice drinks has significantly boosted the sales of high-end refrigerators with automatic ice-making functions, despite consumers facing challenges with manual ice-making processes [1][3] Industry Overview - Consumers are increasingly demanding efficiency, cleanliness, durability, and convenience from automatic ice-making refrigerators, leading to a market response that includes these features as standard in mid-to-high-end models [3][4] - The lack of industry standards has been a bottleneck for consumer choice and healthy industry development, highlighting the need for unified and authoritative evaluation standards [4] Certification Standards - A new stringent certification standard focusing on hygiene safety, ice-making efficiency, and ice quality has been established, requiring strict control of bacterial counts and specific performance metrics for ice production [6] - The standard mandates that rapid ice-making must be completed within 60 minutes and that the daily ice production should not be less than 0.9 kg [6] Company Innovations - Rongsheng's automatic ice-making technology meets these rigorous standards, featuring an AI negative ion sterilization system that achieves a 99.9999% sterilization rate throughout the refrigerator [7][9] - The company has introduced a one-button self-cleaning function and uses special antibacterial materials in key components to ensure the purity of ice, addressing cleanliness concerns effectively [7][9] Product Offerings - Rongsheng has integrated its leading automatic ice-making technology into several flagship products, including the WILL series and the stylish Fangtang series, enhancing user experience with convenient, clean, and efficient ice-making capabilities [9][10] - The company emphasizes that its ice-making technology not only sets a benchmark for the industry but also reflects a deep understanding of consumer needs, promising a worry-free ice experience [10]

Core Insights - The China Household Electrical Appliances Research Institute has awarded the first "Automatic Ice Making Performance Certification" to Rongsheng refrigerators, marking a significant advancement in the technical standards and quality assurance system for automatic ice-making functions in the industry [1][3]. Industry Trends - With the rising demand for quality of life among domestic consumers, refrigerators with automatic ice-making capabilities are transitioning from primarily export-oriented products to emerging domestic market demands, particularly among younger consumers [3]. - The certification by the China Household Electrical Appliances Research Institute is seen as a crucial step towards standardizing technology and quality in the home appliance industry, indicating a shift towards higher quality and smarter products [7]. Company Developments - Rongsheng refrigerators have implemented multiple hygiene measures in key components related to automatic ice-making, achieving an antibacterial rate of 99.99% in ice storage boxes, water storage boxes, and ice-making pipelines [5]. - The refrigerators are equipped with an AI negative ion sterilization and deodorization system, which can achieve a sterilization rate of 99.9999%, ensuring cleanliness during the ice-making process [5]. - Rongsheng's ice-making efficiency is notable, with a rapid ice-making mode capable of producing ice within 60 minutes and a standard mode yielding 1.29 kg of ice within 24 hours, catering to both daily household needs and gatherings [5]. - The W60 series and Fangtang series of Rongsheng refrigerators have models that feature the automatic ice-making function, showcasing the integration of this technology with existing strengths in freshness preservation and purification [7]. - The successful certification of Rongsheng's automatic ice-making technology is expected to strengthen its competitive position in the market and drive innovation in the refrigerator industry, enhancing consumer convenience and quality of life [7].

Core Viewpoint - Hisense is facing challenges in its home appliance segment despite revenue and net profit growth, with a need for strategic adjustments to compete effectively in a highly competitive market [1][2][8] Financial Performance - In the first half of 2025, Hisense Home Appliances reported revenue of 49.34 billion yuan, a slight increase of 1.44% year-on-year, and a net profit of 2.077 billion yuan, up 3.01% year-on-year [4][6] - The air conditioning segment remains the largest revenue contributor, generating 23.69 billion yuan, a growth of 4.1% [10][12] - The washing and refrigeration business saw revenue of 15.39 billion yuan, with a year-on-year growth of 4.8% [6] Market Position and Competition - Hisense is positioned in the second tier of the white goods market, facing intense competition from industry leaders like Midea, Haier, and Gree, which dominate nearly 70% of the air conditioning market [8][13] - The company’s growth rates in revenue and net profit are at their lowest in five years, contrasting sharply with the previous year's growth rates of 13.27% and 34.61%, respectively [8][9] Strategic Leadership Changes - The appointment of Gao Yuling as both Chairman and CEO marks a significant leadership change aimed at revitalizing the company’s growth strategy [15][17] - The introduction of experienced executives from Midea into key positions indicates a strategic shift to enhance operational efficiency and market competitiveness [14][15] International Expansion and Diversification - Hisense is focusing on international markets, with overseas revenue reaching 20.45 billion yuan, a growth of 12.34% year-on-year, particularly strong in Europe and the Americas [7][18] - The company is diversifying its product offerings, including a recent acquisition in the automotive supply chain, to explore new growth avenues [18][19] Technological Innovation - Hisense is investing in smart technology, particularly in air conditioning products, to enhance user experience and capture the younger consumer demographic [19] - The integration of AI technology into product development is seen as a critical factor for Hisense to maintain competitiveness in the evolving market landscape [19]

Group 1 - Hisense Home Appliances Group Co., Ltd. reported a steady growth in core business driven by technological innovation in its 2025 semi-annual report [1] - The multi-split central air conditioning system from Hisense holds over 20% market share, ranking first in the industry [3] - Hisense's new air conditioning products achieved a sales revenue market share of 43.9% in the fresh air segment, an increase of 12.3 percentage points year-on-year [3] Group 2 - The refrigerator business showed robust performance with a retail sales revenue growth of 9.5% year-on-year, and market share increased by 1.64 percentage points [3] - Hisense's washing machine domestic main business revenue grew by 37.58%, leading the industry, with a doubling of market share in the mid-to-high-end segment [5] - The launch of the world's first 4-in-1 heat pump washing and drying machine, the Cotton Candy Ultra, showcases Hisense's innovation in washing technology [5] Group 3 - Hisense's kitchen appliances saw a 52% year-on-year increase in offline retail revenue, reflecting product strength and channel synergy [5] - The company accelerated its overseas business expansion, achieving overseas revenue of 20.451 billion yuan, a year-on-year growth of 12.34% [5] - Revenue growth in Europe, the Middle East, and Africa exceeded 22.7%, while the Americas saw a 26.2% increase [5] Group 4 - Hisense washing machines achieved the highest market share in the UK, with over 30% market share in several European countries [7] - Hisense refrigerators ranked first in sales volume or revenue share in 12 countries, marking a historical high [7] - The company’s products gained significant recognition among overseas users, enhancing its brand presence globally [7]

Investment Rating - The investment rating for Hisense Home Appliances is "Accumulate" [1] Core Views - The company achieved revenue of 49.34 billion yuan in H1 2025, a year-on-year increase of 1.44%, and a net profit attributable to shareholders of 2.08 billion yuan, up 3.01% year-on-year. However, in Q2 2025, revenue was 24.50 billion yuan, down 2.60% year-on-year, and net profit was 949 million yuan, down 8.25% year-on-year [2] Summary by Sections Business Performance - External sales revenue showed steady growth, while domestic sales faced short-term pressure. In H1 2025, the HVAC segment generated revenue of 23.69 billion yuan, up 4.07% year-on-year, with the central air conditioning business affected by the real estate renovation market, leading to a decline in Hisense Hitachi's revenue by 6.0% year-on-year. The new air conditioning segment saw rapid growth, with a 48% increase in revenue for the high-end series [3] - The washing and refrigeration segment achieved revenue of 15.39 billion yuan, up 4.76% year-on-year, with retail sales of Rongsheng refrigerators and Hisense refrigerators increasing by 9.7% and 8.6% respectively. Hisense washing machines focused on technological upgrades and scenario-based innovations, with domestic revenue up 37.6% year-on-year [3] - Other main businesses generated revenue of 6.61 billion yuan, up 8.89% year-on-year, with the three electric companies achieving a 3% year-on-year revenue increase and new business rights of 6.9 billion yuan, laying a foundation for future order growth [3] - By region, domestic revenue in H1 2025 was 25.25 billion yuan, down 0.31% year-on-year, while overseas revenue was 20.45 billion yuan, up 12.34% year-on-year, with significant growth in Europe (22.7%), the Americas (26.2%), and the Middle East and Africa (22.8%) [3] Profitability Analysis - The gross margin for H1 2025 was 21.48%, up 0.2 percentage points year-on-year. The HVAC segment's gross margin was 27.12%, down 1.56 percentage points, while the washing and refrigeration segment's gross margin was 18.74%, up 2.12 percentage points. The gross margin for other main businesses was 15.80%, up 0.99 percentage points [4] - Domestic gross margin was 31.02%, down 0.06 percentage points, while overseas gross margin was 12.33%, up 1.35 percentage points, attributed to scale effects and product improvements [4] - The net profit margin for H1 2025 was 6.06%, down 0.17 percentage points, and for Q2 2025, it was 5.53%, down 0.41 percentage points, influenced by exchange losses and increased operational costs due to organizational restructuring [5] Strategic Initiatives - The company is focusing on smart living strategies and technological innovation, with a diverse brand matrix including Hisense, Rongsheng, Kelon, Hitachi, and York, catering to differentiated customer needs. Hisense's brand value and recognition continue to rise, supported by sponsorship of major international sports events, enhancing its global brand influence [6] Financial Forecast - The company adjusted its profit forecast, expecting revenues of 99.2 billion yuan, 106.8 billion yuan, and 114.2 billion yuan for 2025-2027, with net profits of 3.72 billion yuan, 4.21 billion yuan, and 4.66 billion yuan respectively. The corresponding EPS is projected to be 2.68 yuan, 3.04 yuan, and 3.36 yuan, maintaining a PE ratio of 10, 8, and 8 times for the respective years [8]