Gree Electric Appliances (000651) H2 2025 earnings summary

Executive summary

• Operating revenue for 2025 was CNY170.45 billion, down 9.89% year-over-year; net profit attributable to shareholders was CNY29.00 billion, down 9.89% year-over-year; net cash flow from operating activities rose 57.93% to CNY46.38 billion.

• Gross margin improved slightly to 29.8% from 29.4% in 2024; basic and diluted EPS were CNY5.20, down from CNY5.83 in 2024.

• The company maintained leading market share in core product categories, with central air conditioners holding over 15% market share for 14 consecutive years and residential air conditioners ranking first in online retail sales at 24.31%.

• The board proposed a cash dividend of CNY20 per 10 shares, with no bonus shares or capital reserve conversion.

Financial highlights

• Total assets at year-end were CNY391.37 billion, up 6.34% year-over-year; net assets attributable to shareholders were CNY145.93 billion, up 6.19%.

• Net cash flows from operating activities increased 57.93% year-over-year, while net cash flows from investing activities decreased by 212.38% due to higher investment outflows.

• R&D investment was CNY6.44 billion, representing 3.78% of operating revenue.

• Non-recurring profit and loss items contributed CNY2.08 billion to net profit.

Outlook and guidance

• The company aims to optimize its business layout, enhance core competitiveness, and expand both domestic and international markets in 2026.

• Plans include strengthening digital transformation, quality risk prevention, and AI-driven efficiency improvements.

• The company will continue to focus on innovation, green manufacturing, and talent development to drive sustainable growth.