Gree Electric Appliances (000651) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥97.32 billion, down 2.46% year-over-year; net profit attributable to shareholders rose 1.95% to ¥14.41 billion.

• Operating cash flow surged 453.06% to ¥28.33 billion, driven by increased cash from sales and lower outflows.

• Gross margin for manufacturing was 31.48%, a slight decrease of 0.93 percentage points year-over-year.

• The company maintained its leadership in central air conditioning and expanded its presence in smart appliances and industrial equipment.

Financial highlights

• Revenue: ¥97.32 billion (-2.46% YoY); net profit: ¥14.41 billion (+1.95% YoY); EPS: ¥2.60 (+1.56% YoY).

• Operating cash flow: ¥28.33 billion (+453.06% YoY); total assets: ¥401.19 billion (+9.01% from year-end 2024).

• Net assets attributable to shareholders: ¥135.40 billion (-1.47% from year-end 2024).

• R&D expenses: ¥3.92 billion (+10.9% YoY); sales expenses: ¥6.20 billion (-11.49% YoY).

• Non-recurring gains: ¥466 million, mainly from government subsidies and financial asset gains.

Outlook and guidance

• The company will continue to focus on green, low-carbon, and smart product innovation, and expand its global market share.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2025.

• Management expects continued pressure from raw material costs and market competition but aims to mitigate risks through innovation and cost control.