Produced by Leida Finance Text by Zhou Hui Edited by Meng Shuai

With sluggish growth in its core business and pressure in overseas markets, Gree Electric Appliances, a leading home appliance company, delivered a lackluster semi-annual performance report on the evening of August 26.

According to the financial report, in the first half of this year, Gree Electric Appliances achieved a total operating revenue of RMB 89.673 billion, a year-on-year decrease of 8.14%; net profit attributable to shareholders was RMB 13.278 billion, a year-on-year decrease of 7.87%.

The decline in overseas revenue emerged as the primary factor dragging down the company's performance. During the reporting period, Gree Electric Appliances' revenue from its core overseas business was RMB 12.744 billion, a year-on-year decrease of 21.98%. Meanwhile, although the company's revenue from its core domestic business rose to RMB 72.512 billion during the same period, it only saw a slight year-on-year increase of 1.9%.

Overall, in the first half of this year, Gree Electric Appliances' core business contributed RMB 85.256 billion in revenue, a year-on-year decrease of 2.56%. Due to its continued focus on its core business and the contraction of non-core operations, Gree Electric Appliances' revenue from other businesses was "halved" to RMB 4.142 billion.

However, through measures such as adjusting business strategies, improving quality and efficiency, and market expansion, Gree Electric Appliances enhanced its profitability. Its comprehensive gross profit margin in the first half of the year reached 28.81%, a year-on-year increase of 0.32 percentage points.

Notably, shortly before the disclosure of this interim report, Zhuhai Gree Technical School, founded by Gree Electric Appliances, officially commenced its first enrollment. Dong Mingzhu, the chairwoman of Gree Electric Appliances, will personally serve as the school's principal.

It is reported that Gree Technical School's first enrollment drive aimed to recruit 300 students and attracted more than 8,000 applicants, meaning 27 applicants vied for each available spot.

Pressure in Overseas Markets Leads to Declines in Revenue and Net Profit

According to Gree Electric Appliances' latest financial report disclosed on August 26, in the first half of this year, the company achieved a total operating revenue of RMB 89.673 billion, a year-on-year decrease of 8.14%; net profit attributable to shareholders was RMB 13.278 billion, a year-on-year decrease of 7.87% compared to RMB 14.412 billion in the same period last year, reflecting a awkward (awkward) situation of declines in both revenue and net profit.

Gree Electric Appliances stated that in the first half of 2026, the company's profit growth was hindered by multiple factors, including a decline in overseas sales and high raw material prices.

However, through measures such as adjusting business strategies, improving quality and efficiency, and market expansion, Gree Electric Appliances continuously enhanced its operational quality, achieving a steady increase in its net profit margin and demonstrating resilience in profitability.

Specifically, influenced by factors such as the external market environment and internal business strategies, in the first half of this year, Gree Electric Appliances' revenue from overseas operations was RMB 12.744 billion, a year-on-year decrease of 21.98%.

Gree Electric Appliances admitted in its financial report that its business in the Middle East declined significantly, dragging down its overall performance in overseas markets. At the same time, the company's overseas market strategy, which pursues brand value and quality premiums, also impacted the scale of overseas shipments to a certain extent.

Despite overall pressure in overseas markets, Gree Electric Appliances actively explored market opportunities and achieved some breakthroughs through strategies such as brand independence, localized channels, product diversification, and localized operations.

According to Gree Electric Appliances, in the first half of this year, the company's revenue from independent brands accounted for 70% of its total export volume, with its brand's international influence and recognition steadily increasing.

Notably, the market share of independent brands in markets such as Brazil, Indonesia, and Canada exceeded 20%. In the Iberian-French region, by implementing refined local operations and seizing market opportunities, the company's overall revenue increased by 22% year-on-year, with sales of independent brands rising by 55% year-on-year. In Northwest European countries such as Norway, Denmark, Finland, and the Netherlands, sales increased by 92% year-on-year.

Compared to the "setbacks" in its overseas business, Gree Electric Appliances' core domestic business showed steady growth, contributing RMB 72.512 billion in revenue during the reporting period. However, its year-on-year growth rate was only 1.9%, making it difficult to completely reverse the downward trend in the company's overall revenue.

Notably, in its semi-annual report, Gree Electric Appliances announced that it would temporarily not distribute cash dividends. The company stated that it would consider factors such as its strategic plan, operating performance, cash flow status, and future capital requirements to decide on interim profit distribution matters separately.

Leida Finance noted that in its 2025 semi-annual report, Gree Electric Appliances also stated that it would not distribute dividends temporarily. However, in October of the same year, the company disclosed an interim profit distribution plan: based on 5.585 billion shares, it would distribute a cash dividend of RMB 10 per 10 shares to all shareholders, totaling RMB 5.585 billion in cash dividends.

In fact, since its listing, Gree Electric Appliances has maintained a long-standing tradition of substantial dividends. Data from Tonghuashun iFinD shows that as of 2025, Gree Electric Appliances has distributed cash dividends 33 times, with a cumulative cash dividend amount of RMB 158.841 billion.

"Slowdown" in Core Business Growth, Revenue from Other Businesses "Halved"

According to information from Tianyancha, Zhuhai Gree Electric Appliances Co., Ltd. (hereinafter referred to as "Gree Electric Appliances") was registered and established in 1989 and listed on the main board of the Shenzhen Stock Exchange in 1996.

In its early days, Gree Electric Appliances mainly relied on assembling and producing household air conditioners. Today, it has developed into a diversified, technology-driven global industrial manufacturing group, covering two major fields: consumer and industrial.

According to Gree Electric Appliances' financial report, in the consumer field, it mainly provides full-category smart home appliances and intelligent building system solutions for household and commercial scenarios.

In the industrial field, Gree Electric Appliances covers business segments such as CNC machine tools, industrial robots, precision molds, motors, compressors, capacitors, semiconductors, precision casting, basic materials, and industrial energy storage.

However, in the first half of this year, Gree Electric Appliances' performance in these two major fields was lackluster.

Among them, the consumer electronics segment, which is the main contributor to the company's revenue, contributed RMB 74.074 billion in revenue, a year-on-year decrease of 2.89%. Its gross profit margin also decreased by 1.43 percentage points year-on-year to 31.77%.

Gree Electric Appliances stated in its financial report that in the first half of 2026, influenced by factors such as declining consumption and consumption downgrading, the home appliance industry as a whole faced pressure. Both the household and commercial air conditioning industries showed a downward trend, and industry competition further intensified.

Data from AVC (All View Cloud) shows that in the first half of this year, the overall retail sales of domestic home appliances were RMB 425 billion, a year-on-year decrease of 9.9%. In the first and second quarters, they decreased by 6.2% and 12.4% year-on-year, respectively, with the air conditioning category dragging down industry performance.

Facing industry challenges, Gree Electric Appliances optimized its product mix based on market demand, continuously upgraded its air conditioning products, expanded its range of household appliances, and enriched its full-scenario product matrix.

According to data cited by Gree Electric Appliances from AVC, in the first half of the year, Gree's brand's household air conditioners accounted for a 25.8% retail market share across all channels, remaining at the forefront of the industry.

Gree Electric Appliances' household appliances segment also achieved sales growth of over 20% year-on-year in the first half of the year.

During the same period, Gree Electric Appliances' industrial products and green equipment segment achieved revenue of RMB 8.652 billion, a year-on-year decrease of 9.79%.

Although revenue from smart equipment and other core businesses increased by 19.02% and 64.5% year-on-year to RMB 374 million and RMB 2.156 billion, respectively, their combined revenue accounted for less than 3% of the total, failing to play a significant role.

In addition, due to its continued focus on its core business and the contraction of non-core operations during the reporting period, Gree Electric Appliances' revenue from other businesses in the first half of the year was "halved" year-on-year to RMB 4.142 billion. In contrast, revenue from this segment reached RMB 9.83 billion in the same period last year, making it the second-largest contributor to revenue after the consumer electronics segment.

However, Tonghuashun iFinD shows that in the first half of this year, Gree Electric Appliances' overall gross profit margin increased from 28.49% in the same period last year to 28.81%, a year-on-year increase of 0.32 percentage points.

"Crossover" into Technical Education: Gree Launches "Talent Cultivation" Plan

Shortly before the disclosure of this interim report, Zhuhai Gree Technical School (hereinafter referred to as "Gree Technical School"), founded by Gree Electric Appliances and approved by the Zhuhai Municipal Human Resources and Social Security Bureau, officially commenced its first enrollment.

Notably, Dong Mingzhu will personally serve as the principal of Gree Technical School.

According to the enrollment brochure, the enrollment targets are national junior high school graduates aged 15-18, whether they are current or previous students. The first enrollment plan aims to recruit 300 students, with tuition fees ranging from RMB 9,000 to RMB 15,000 per academic year.

In terms of major offerings, in its first year, Gree Technical School will offer nine majors across three fields: intelligent manufacturing, electrical technology, and information technology. These majors include refrigeration equipment operation and maintenance, mold manufacturing, intelligent equipment operation and maintenance, mechatronics technology, electrical automation equipment installation and maintenance, mechatronic product testing technology application, Internet of Things application technology, multimedia production, and computer application and maintenance.

According to media reports, on August 21, Gree Technical School officially closed its enrollment application channel for 2026.

According to the school, its first enrollment drive attracted more than 8,000 applicants, but only 300 spots were available, meaning 27 applicants vied for each spot.

The enthusiastic enrollment situation may be related to the direct pathway established by Gree Technical School, which connects students to enterprise resources upon enrollment and provides priority internship and employment opportunities at Gree Electric Appliances and related industrial chain companies after graduation.

According to Kuaikeji, many parents who accompanied their children to interviews stated that they trusted Dong Mingzhu and the Gree team's ability to run the school. They believed that sending their children here would provide them with practical skills training and eliminate concerns about future employment.

Leida Finance noted that this is not Gree Electric Appliances' first foray into vocational education. As early as 2015, Gree planned to establish Guangdong Gree Vocational College. In 2018, Gree Electric Appliances collaborated with Zhuhai City Polytechnic to jointly establish Gree Mingzhu Industrial College.

The frequent "crossovers" into education by Gree Electric Appliances may stem from its "anxiety" over the shortage of technical talent. Dong Mingzhu, the chairwoman of Gree Electric Appliances, also publicly stated not long ago: "As machines upgrade, people must upgrade too."

According to China Business Network, there is a massive shortage of nearly 30 million highly skilled workers in China. However, the training models of many vocational colleges remain focused on "theory over practice," preventing students from accessing the industry's most cutting-edge production equipment during their studies and ultimately leading to a "disconnection upon graduation."

Some believe that Gree's independent establishment of a technical school and its focus on enrolling junior high school graduates aim to shift talent cultivation from "recruitment after graduation" to "cultivation after enrollment," breaking down the "wall between campuses and industries" from the root and achieving effective alignment between education and employment.