Haier and Gree decent profits

Gree Electric Appliances and Haier Smart Home, two leading Chinese white goods makers, both logged decent profit in the first three quarters despite a slump in the overall market.

Gree reported a 17 percent jump in net profit in the first nine months from the same period a year ago to CNY18.3 billion (USD2.5 billion), while revenue advanced 6.8 percent to CNY147.5 billion (USD20.3 billion), according to the Zhuhai, southern Guangdong province-based company’s latest financial report released yesterday.

Haier posted a 17.3 percent gain in net profit over the period to CNY11.7 billion (USD1.6 billion) while revenue surged 8.9 percent to CNY184.7 billion (USD25.3 billion), the Qingdao, eastern Shandong province-based company said the same day.

This is despite China’s home appliance market slumping 6.1 percent in the nine months ended Sept. 30 year on year to CNY510.3 billion (USD70.4 billion), according to Beijing-based market research agency All View Cloud. The sales of major home appliances such as refrigerators, air conditioners and washing machines have tumbled while that of emerging products such as cleaning robots and dishwashers have picked up.

Haier was able to increase its share of the global market in the first three quarters by improving its overseas market layout through more new high-end brands, it said. The company’s continuous digitization has improved the user experience and operational efficiency, enabling steady growth despite a tricky external environment.

Gree’s profit growth was boosted by the acquisition of a 30 percent stake in Zhejiang DunAn Artificial Environment, a core component supplier for air conditioners, earlier this year. Dun’An’s net profit doubled in the first three quarters year on year to CNY702 million (USD96.6 million).

But other major home appliance manufacturers are seeing growth stall. Midea Group’s net profit climbed 4.3 percent over the same period to CNY24.5 billion (USD3.3 billion) while revenue gained 3.4 percent to CNY271.8 billion (USD37.3 billion), the Foshan, Guangdong province-headquartered company said on Oct. 28.

The Canton Fair is online until April 24, 2022

China Import and Export Fair, also known as Canton Fair, started its 131st edition that will be also online on April 24, 2022. As Xu Bing, spokesperson of the Fair, deputy director general of China Foreign Trade Centre, explained in the opening cerimony, Themed facilitating the “dual circulation” of domestic and overseas markets, the event is held from April 15-24 online. The exhibition offers an online display platform, business matchmaking services, and a cross-border e-commerce zone.

The electronic and home appliances exhibition zone hosts about 2,600 companies with 140,000 products. Among the protagonist brands, the event was attended by Haier, Hisense, Gree, Midea, Changhong, TCL, and others.