Gree Electric Appliances (000651) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥170.45 billion, down 9.89% year-over-year; net profit attributable to shareholders was ¥29.00 billion, down 9.89% year-over-year; operating cash flow increased 57.93% to ¥46.38 billion.

• Core product market share remained industry-leading, with central air conditioning holding over 15% market share for the 14th consecutive year.

• The company maintained a strong position in home air conditioners, leading online retail sales with a 24.31% share.

Financial highlights

• Gross margin for consumer appliances was 35.28%, up 0.37 percentage points year-over-year.

• Total assets at year-end were ¥391.37 billion, up 6.34% from the previous year; net assets attributable to shareholders were ¥145.93 billion, up 6.19%.

• Basic and diluted EPS were ¥5.20, down 10.81% year-over-year.

• Operating cash flow margin improved significantly, with net cash from operations at ¥46.38 billion.

• R&D investment was ¥6.44 billion, accounting for 3.78% of revenue.

Outlook and guidance

• The company plans to deepen multi-market strategies, expand international presence, and enhance product competitiveness in 2026.

• Focus areas include channel ecosystem optimization, product innovation, and digital transformation.

• Risks identified include macroeconomic volatility, raw material price fluctuations, intensified competition, overseas market uncertainties, and exchange rate risks.