Core Viewpoint - Gree Electric Appliances reported a decline in revenue for the first half of 2025, with a total revenue of 97.32 billion yuan, down 2.46% year-on-year, while net profit increased by 1.95% to 14.41 billion yuan [1][2]. Financial Performance - Revenue for the first half of 2025: 97.32 billion yuan, a decrease of 2.46% compared to 99.78 billion yuan in the same period last year [2]. - Net profit attributable to shareholders: 14.41 billion yuan, an increase of 1.95% from 14.14 billion yuan year-on-year [2]. - Deducted non-recurring gains and losses net profit: 13.95 billion yuan, a slight increase of 0.59% from 13.86 billion yuan [2]. - Comparison with Q1 2025: Revenue and net profit grew by 13.78% and 26.29% respectively, indicating a significant decline in Q2 performance [2][3]. Segment Performance - Consumer electronics, primarily air conditioning, which accounts for nearly 80% of revenue, experienced a decline of 5.09% [4][5]. - Industrial products and green energy saw a growth of 17.13%, contributing about 10% to total revenue [4][5]. - Other segments like smart equipment (mainly industrial robots) grew by 20%, but their contribution to total revenue is minimal, less than 1% [4]. Market Context - Overall market performance for home appliances in China showed positive growth, with air conditioners, refrigerators, and washing machines increasing by 8.3%, 3.7%, and 8.8% respectively in the first half of 2025 [4]. - The competition in the home air conditioning market is intensifying, with low-end models (priced below 2100 yuan) accounting for over 50% of online sales in Q2 [4]. Competitor Comparison - Haier Smart Home reported consistent growth, with revenue and net profit growth rates around 10% and 15% respectively for the same period [6][7]. - Gree Electric Appliances is currently ranked second in the online air conditioning market with a share of 16.41%, closely followed by Xiaomi at 13.5% [8]. Stock Performance - Gree Electric Appliances' stock has shown modest performance in 2025, with a year-to-date increase of less than 7%, lagging behind the home appliance index which rose by 12.48% [8].