Core Insights - Hisense Visual Technology Co., Ltd. reported a revenue of 27.231 billion yuan for the first half of 2025, representing a year-on-year growth of 6.95%, and a net profit attributable to shareholders of 1.056 billion yuan, up 26.63% [1] - The company is advancing its globalization and high-end strategies while promoting digital transformation, achieving significant breakthroughs in core display technologies [1][2] - Hisense holds a 47.7% market share in the global market for televisions 100 inches and above, and a 70.0% share in the laser television segment, both ranking first globally [1] Financial Performance - The weighted average return on equity increased by 0.84 percentage points year-on-year [1] - Operating cash flow increased by 48.59% to 1.802 billion yuan [1] Technological Advancements - The company successfully developed RGB-Mini LED technology, overcoming challenges in chip and algorithm efficiency, marking a significant advancement in liquid crystal display technology [2] - Hisense launched the RGB color control AI picture quality chip H7, enhancing its competitive edge in the mid-to-high-end television market [4] Market Position and Strategy - Hisense's global shipment of 98-inch and larger products increased by 85.29%, while Mini LED product shipments grew by 108.24% [3] - The company is expanding its presence in the commercial display sector and has increased its overseas market reach to over 60 countries, with overseas revenue growing by 43% [4] AI and Future Growth - The AI television market presents significant growth opportunities, with Hisense leading through self-developed chips and algorithms [5] - The company is also exploring AI/AR smart terminal products and has initiated research on intelligent robots in collaboration with Fuyao Technology University [6]

Core Viewpoint - Hisense Visual reported a significant increase in revenue and net profit for the first half of 2025, driven by advancements in AI technology and self-developed chips, positioning itself as a leader in the AI television market [1][2]. Financial Performance - The company's revenue for the first half of 2025 reached 27.231 billion yuan, a year-on-year increase of 6.95% - Net profit for the same period was 1.056 billion yuan, reflecting a year-on-year growth of 26.63% - The net profit after deducting non-recurring items increased by 26.56% to 0.812 billion yuan - The net cash flow from operating activities rose by 48.59% to 1.802 billion yuan [1]. Quarterly Performance - In Q2 2025, revenue grew by 8.59% to 13.855 billion yuan, with net profit increasing by 36.82% to 0.502 billion yuan - The net profit after deducting non-recurring items in Q2 rose by 36.67% to 0.360 billion yuan - In Q1 2025, revenue, net profit, and net profit after deducting non-recurring items increased by 5.31%, 18.61%, and 19.52% respectively [1]. Technological Advancements - The company has established an integrated AI capability system through self-developed chips, large model algorithms, and scenario-based applications, transitioning televisions from mere display devices to smart home hubs [1]. - Hisense Visual aims for comprehensive coverage in large-size display chips, focusing on high-end quality chip development and accelerating domestic chip production [2]. - The self-developed RGB color control AI quality chip H7 has been successfully mass-produced and applied in several mid-to-high-end television models, creating a differentiated market advantage [2]. Market Position - The company maintains a global leadership position in the television Tcon chip segment and has entered the top tier in the display Tcon chip segment [2]. - Hisense Visual is also expanding into the notebook computer Tcon chip market, high refresh rate and high resolution driver markets, OLED display market, and display SoC market [2]. LED Chip Industry - The company has made significant strides in the LED chip industry, with self-developed high-performance RGB-Mini LED backlight chips applied in RGB-Mini LED televisions, resulting in a revenue increase of approximately 400% in the backlight chip business [2]. - The Micro MIP chip has received mass production certification from leading companies in the display industry, while the Micro COG chip has achieved significant technological breakthroughs and is undergoing international customer certification [2].

Core Insights - The smart home industry is accelerating towards intelligence, greenness, and globalization, driven by AI technology [1][3] Group 1: AI Empowerment Across Industries - The smart terminal industry is undergoing a profound transformation driven by AI technology, with companies like Hisense leading the way in integrating display technology and AI interaction [3] - Hisense has developed RGB Mini LED liquid crystal modules and AI quality chips, enhancing color coverage and reducing energy consumption [3] - Rongtai Health integrates AI throughout its health services, using AI algorithms in massage chairs to create personalized experiences and improving production efficiency through AI industrial systems [3] - Sichuan Changhong is implementing AI across product development, manufacturing, and management, enhancing operational efficiency and reducing costs [4] - Jinhai High-Tech is advancing digital transformation through a comprehensive digital workshop management system and predictive maintenance using IoT technology [4] - Wanlong Magnetic Plastic is embracing the transformation in the home appliance industry by increasing R&D investment to enhance innovation capabilities [4] Group 2: Global Expansion Strategies - The globalization of China's home appliance industry presents opportunities for suppliers with international layouts, as highlighted by Wanlong Magnetic Plastic's expansion into 10 countries with 16 production bases by the end of 2024 [5] - Rongtai Health is enhancing global supply chain resilience with a new factory in Thailand expected to be operational by the end of 2025, while also strengthening partnerships with clients in the U.S. and other regions [5] - Sichuan Changhong has established R&D bases in the U.S., Spain, and the Czech Republic, and manufacturing bases in Mexico and Vietnam, aiming for coordinated development across the entire value chain [5] - Jinhai High-Tech has set up R&D and marketing centers in Thailand and Japan, achieving overseas revenue of 459 million yuan in 2024, a year-on-year increase of 16.99% [6] - Hisense is advancing its global strategy by enhancing product quality and brand influence through major sporting events and collaborations with various brands [6]