2025-11-26 14:15Summary of Hisense Home Appliances Conference Call Industry Overview - The domestic home appliance market is influenced by subsidy policies, with a year-on-year decline expected in 2025, but normal growth anticipated in the following year. The continuation of national subsidy policies in 2026 is expected, with potential adjustments in details, highlighting the importance of monitoring policy changes on the market [2][4][5]. Company Performance - Hisense's overseas business has shown a fluctuating trend due to Trump's tariffs, but the overall outlook remains optimistic. Emerging markets are seeing increased penetration, while mature markets maintain stability. Future overseas sales revenue is expected to grow over 10% in the next three years [2][6][16]. - The central air conditioning business faces challenges from the real estate sector's downturn, but growth is expected from the consumer and public construction channels. Hisense Hitachi is expanding into the large chiller market and accelerating overseas business development [2][7][8]. Market Dynamics - The European heat pump market is recovering after a destocking phase, indicating potential for growth. Hisense plans to increase investment in overseas markets to enhance brand influence and accelerate expansion in emerging markets [2][9][10]. - The new water machine factory in Changsha is expected to contribute approximately 20% annual revenue growth over the next 3-5 years, with a projected market share increase of about 1% annually in 2026 [2][11][12]. Financial Metrics - The overall net profit margin is expected to remain around 16% through 2026, despite pressure on gross margins from the increasing share of Hisense and York brands in the central air conditioning business [2][14]. - The company anticipates domestic sales revenue growth in the mid-single digits for 2026, while overall performance growth could reach double digits, factoring in the impact of subsidy reductions [3][26]. Strategic Initiatives - Hisense is focusing on enhancing its overseas market presence, with over 50% of revenue from overseas sales in processing and washing products. The company aims to leverage sports marketing to boost brand influence and expand into emerging markets [2][10][24]. - The company plans to streamline its product offerings by reducing SKUs by over 50% to improve operational efficiency and gradually enhance profit margins [3][28]. Challenges and Opportunities - The central air conditioning sector is experiencing pressure from the real estate market, with a 24% year-on-year decline in revenue from the refined decoration segment. However, new applications in agriculture, energy storage, and data centers are showing growth potential [2][7][8]. - The company is also addressing the competitive landscape in domestic channels by enhancing its self-owned channel strategy and reducing reliance on online platforms [2][27]. Conclusion - Hisense Home Appliances is navigating a complex market landscape with a focus on overseas growth, product efficiency, and strategic partnerships. The company is well-positioned to capitalize on emerging market opportunities while managing domestic challenges and maintaining profitability [2][10][26].