Core Viewpoint - Gree Electric Appliances reported a decline in total revenue for 2024, marking the first annual revenue drop since 2020, while net profit increased year-on-year [1] Group 1: Financial Performance - In 2024, Gree achieved total revenue of 1900.38 billion, a decrease of 7.31% year-on-year, while net profit reached 321.85 billion, an increase of 10.91% [1] - For Q1 2025, Gree reported total revenue of 416.4 billion, an increase of 13.78% year-on-year, and net profit of 59.04 billion, up 26.29% [1] - The revenue decline in 2024 was attributed to a drop in various product segments, particularly consumer appliances, which saw a decrease of 67 billion [2] Group 2: Revenue Breakdown - Gree's revenue is categorized into five main product segments: consumer appliances (78.54%), industrial products and green energy (9.12%), smart equipment (0.22%), other main businesses (1.84%), and other businesses (10.28%) [2] - The revenue growth rates for these segments were -4.29% for consumer appliances, 0.80% for industrial products, -36.68% for smart equipment, 122.29% for other main businesses, and -33.88% for other businesses [2] Group 3: Market Context - The overall retail sales of household appliances in China reached 10307 billion in 2024, growing by 12.3% year-on-year, indicating a strong market performance compared to Gree's decline [3] - Competitors such as Midea Group and Haier also reported revenue growth, with Midea achieving 4090.84 billion (up 9.47%) and Haier 2859.81 billion (up 4.29%) in 2024 [3] Group 4: Diversification Challenges - Gree's diversification efforts have not significantly contributed to revenue, with diversified business accounting for only about 10% of total revenue [3][4] - The company has ventured into various sectors, including semiconductors and automation, but these segments have yet to translate into substantial revenue [5] - The consumer appliances segment's revenue share increased from 76.09% in 2023 to 78.54% in 2024, indicating a growing reliance on this core business [5]

Core Viewpoint - Gree Electric's stock has seen an increase of over 4% since April 8, 2023, attributed to the impact of tariffs and strong domestic demand [1] Financial Performance - In Q1 2024, Gree Electric reported a revenue of 416.39 billion yuan, a year-on-year increase of 13.78%, and a net profit of 59.04 billion yuan, up 26.29% [4] - For the full year 2023, Gree Electric's revenue was 1900.38 billion yuan, a decrease of 7.31%, while the net profit was 321.85 billion yuan, an increase of 10.91% [4] - The revenue for Q4 2023 was 426.22 billion yuan, down 13.38% year-on-year, with a net profit of 102.24 billion yuan, up 14.55% [4] Business Segments - The consumer electronics segment is projected to generate 1485.6 billion yuan in revenue for 2024, a decline of 4.29% [5] - The industrial products and green energy segment is expected to see a slight increase in revenue to 172.46 billion yuan, up 0.8% [5] - The smart equipment segment is forecasted to decline significantly, with revenue of 4.24 billion yuan, down 36.68% [5] - Domestic revenue from main business operations fell by 5.45%, while overseas revenue grew by 13.25% [6] Dividend Policy - Gree Electric plans to distribute a cash dividend of 20 yuan per 10 shares, totaling 111.7 billion yuan, which represents 52.06% of the net profit attributable to shareholders [10] - The total cash dividend for 2024 is projected to be 167.55 billion yuan, reflecting a significant increase from previous years [11] Market Outlook - The "old-for-new" policy is expected to drive growth in home appliance sales, with sales exceeding 720 billion yuan this year [12] - Analysts have raised profit expectations for 2025-2026, anticipating net profits of 339 billion yuan and 366 billion yuan, respectively, reflecting growth rates of 10% and 8% [12] - Gree Electric is viewed as a strong defensive stock, with ongoing operational changes expected to enhance performance [12]