Key takeaway

In 2025, Hisense Home Appliances' performance showed a trend of "revenue under pressure, resilient profitability," with overseas high growth and the refrigeration & washing appliance business serving as core supports. Full-year revenue and net profit attributable to shareholders declined year-on-year due to factors such as domestic real estate downturn, while operating cash flow grew against the trend, indicating solid profit quality. Overseas revenue achieved rapid growth, with its proportion significantly increasing. Performance in regions such as Europe, South America, and ASEAN was impressive. The refrigeration & washing appliance business achieved positive growth, and product mix upgrades drove gross margin improvement against the trend. Regarding shareholder returns, the dividend per share reached a new historical high, with the high payout ratio demonstrating confidence in long-term development. Looking ahead to 2026, the company will focus on technology-driven development and deepening globalization, continuously ushering in a new cycle of high-quality development.

Event

Hisense Home Appliances Releases 2025 Annual Performance Report

Full-year 2025 operating revenue reached 87.928 billion yuan (YoY -5.19%); net profit attributable to shareholders was 3.187 billion yuan (YoY -4.82%); Q4 operating revenue was 16.396 billion yuan (YoY -26.03%); Q4 net profit attributable to shareholders was 375 million yuan (YoY -32.46%). The company plans to distribute a cash dividend of 12.65 yuan per 10 shares, with a total planned distribution of approximately 1.751 billion yuan.

Risks: 1. US macro growth below expectations: Home appliance sales are closely related to the US real estate market. If the Fed's interest rate cut progress falls short of expectations or real estate growth slows down, it may significantly impact the company's product sales. 2. Significant fluctuations in raw material prices: Raw material costs account for a large proportion of operating costs. If commodity prices rise again, the company's profitability will weaken. 3. Overseas market risks: Uncertainty in the overseas environment has intensified in recent years. Given the company's high proportion of export sales, any decline in external demand will impact performance accordingly. 4. Intensified market competition: In a weak market environment, industry competition becomes more intense. The company faces the risk of market share loss and low-price competition dragging down profitability.