2025-06-06 02:37Summary of Hisense Home Appliances Conference Call Industry Overview - The air conditioning market is highly competitive, with significant price pressure on flow models and cost-effective models. The national subsidy policy is being utilized quickly in coastal eastern regions, although some areas face funding shortages, which are expected to be resolved later. The policy has a significant positive effect on consumer demand [2][3][7] - The home appliance industry is experiencing single-digit growth in domestic sales, particularly after the 618 shopping festival began on May 13. Online sales growth has significantly improved in May, with a notable change in sales structure for refrigerators, air conditioners, and washing machines compared to the same period last year [3][21] Company Performance - Hisense's air conditioning installation card growth in May was in the high single digits, with new air conditioning installations exceeding 50% growth, accounting for over 20% of domestic sales. The company is actively expanding online channels for its flow models [4][5] - Hisense employs a K-shaped pricing strategy, improving the average price of high-end products while reducing prices for flow models due to intense competition [6] - The company anticipates that the effects of the national subsidy policy will become evident in the second quarter, with expectations for additional government funding to stimulate consumption [7][8] Market Dynamics - The central air conditioning market is expected to remain weak in the second quarter, with inventory levels around 90 days. The C-end and public construction sectors are expected to maintain single-digit growth, with profit margins stabilizing around 17% [9][10][11] - The overseas market, particularly in emerging regions like ASEAN, is expected to see strong growth, with overseas revenue growth and profit margin improvements being more certain than in the domestic market [12][13][14] Challenges and Strategies - Issues with the national subsidy policy include regional funding shortages and irregularities, which may lead to localized market disruptions. However, the overall impact is expected to be positive as more funds are anticipated to be allocated [7][19] - Hisense's strategy in response to the national subsidy policy involves requiring dealers to pre-finance, which may affect promotional activities during the 618 shopping festival [8][18] - The company plans to leverage the 618 shopping festival for marketing, with strategies tailored to optimize sales performance based on current trends [21][23] Future Outlook - Hisense aims to continue pushing for high-end product offerings, with plans to launch more products priced above 10,000 yuan. The company is also focusing on energy efficiency upgrades in the refrigerator sector [22] - The overseas marketing strategy includes sponsorship of major sports events like the World Cup and NBA, with a focus on expanding into new markets in the Middle East, Africa, ASEAN, and Latin America [25] Conclusion - Hisense Home Appliances is navigating a competitive landscape with strategic pricing and marketing initiatives while responding to government policies and market demands. The company is optimistic about growth in both domestic and international markets, particularly in emerging regions, despite facing challenges related to funding and competition.