Summary of Conference Call Notes Industry Overview - **Industry**: China Internet and E-commerce - **Key Policy**: Extension of the National Trade-In Program into 2026 Core Insights - **Policy Support**: The extension of the trade-in program is seen as a potential positive for e-commerce platforms, helping to mitigate the high-base effect in the first half of 2026 [1][2] - **Subsidy Details**: The initial batch of subsidies for 2026 amounts to RMB 62.5 billion, which is lower than the RMB 81 billion issued in the first batch of 2025 [3] - **Eligible Products**: The number of eligible home appliance categories has decreased from 12 in 2025 to 6 in 2026, which includes refrigerators, washing machines, televisions, air conditioners, computers, and water heaters [4] - **Subsidy Amounts**: Consumers purchasing eligible home appliances will receive a subsidy of 15% of the selling price, with a maximum of RMB 1,500 per unit. This is a reduction from the maximum subsidy of RMB 2,000 per unit in 2025 [4] - **Digital Products Subsidy**: For digital and smart products, including mobile phones, tablets, smartwatches, and newly added smart glasses, consumers will receive a 15% subsidy on products priced up to RMB 6,000, with a maximum subsidy of RMB 500 per unit [5][6] Additional Considerations - **Adoption Rate Concerns**: Despite the inclusion of smart glasses in the subsidy program, the expected adoption rate may be limited, indicating potential challenges for e-commerce platforms like JD.com [1] - **Overall Impact**: The overall benefit to major e-commerce platforms is expected to be limited due to the high base of comparison and the smaller subsidy size compared to previous years [1]

Sam Altman wants artificial intelligence to cure cancer. China is focused on something more prosaic: making better washing machines. https://t.co/FbA9AjFMV0 ...

29 August 2025 | 7:04AM CST Haier Smart Home Co. (600690.SS): 2Q25 First Take: Margins and interim dividends positive surprises; Buy Haier Smart Home reported 2Q25 results post market close of Aug 28 where revenue was in-line with our estimates but profits and dividends came as positive surprises. Total revenue/net profit in 1H25 was Rmb156bn/Rmb12bn, growing by +10%/+16% yoy (on LFL basis), and implying +10%/+16% yoy in 2Q (0%/+4% vs. GSe). Operating cash flows also improved, growing by 45% yoy in 2Q25. Me ...

Core Insights - Whirlpool reported Q2 2025 results with ongoing earnings per share (non-GAAP) of $1.34, missing the consensus estimate of $1.68, and revenue of $3,773 million, below the expected $3,846.88 million [1][2] - Both ongoing earnings per share and revenue showed declines compared to Q2 2024, with ongoing earnings per share down 43.9% and revenue down 5.4% year over year [1][2] - Management attributed the quarter's performance to competition from Asian imports and weak consumer demand, while maintaining its full-year outlook [1] Financial Performance - Ongoing earnings per share (non-GAAP) fell from $2.39 in Q2 2024 to $1.34 in Q2 2025, a decrease of 43.9% [2][5] - GAAP net earnings dropped by 70.5% year-over-year, with operating cash flow (GAAP) and free cash flow (non-GAAP) both negative, at ($856 million) for the first half of 2025 compared to ($713 million) in the prior year [2][5][6] - The ongoing EBIT margin remained stable at 5.3%, but net earnings were significantly impacted by a $19 million loss from a Beko Europe equity investment [6] Business Strategy - The company focuses on reshaping its business portfolio, accelerating product innovation, and optimizing costs, including divesting low-margin operations and launching over 100 new products in 2024 [4][7] - The company has exited its European major appliance operations and continues to prioritize portfolio simplification despite legacy costs affecting results [7] - New product launches, such as the KitchenAid induction cooktop and JennAir built-in wall oven, have supported direct-to-consumer sales growth, particularly in small appliances [7] Market Performance - North American major appliance sales declined by 4.7%, with EBIT down 11.7% year-over-year, while Latin America saw a 10.0% sales decline [6] - In Asia, sales fell by 5.9% year-over-year, but profits increased by 11.2% year-over-year, indicating a mixed performance across regions [6] Capital Structure and Outlook - The company refinanced $1.2 billion in term debt at an interest rate of approximately 6.3%, with net debt remaining elevated and cash reserves at $1.07 billion [8] - Management reaffirmed FY2025 guidance for ongoing earnings per share between $6.00 and $8.00, ongoing EBIT margin of approximately 5.7%, and free cash flow guidance set at $400 million for the full year [10] - The company plans to monitor cash flow, debt repayment, and inventory normalization as the year progresses [11]