Gree Electric Appliances Inc of Zhuhai – 2025 Annual Report Highlights and Market Context
2025 Financial Performance
| Item | 2025 (CNY bn) | YoY Change |
|---|---|---|
| Revenue | 170.447 | –9.89 % |
| Net profit attributable to equity holders | 29.003 | –9.89 % |
| Net profit excluding non‑recurring items | 27.706 | –7.95 % |
| Operating cash‑flow | 46.383 | +57.93 % |
| Total assets at year‑end | 391.372 | +6.34 % |
| Equity attributable to shareholders | 145.929 | +6.19 % |
| Weighted average ROE | 20.30 % | –5.12 pp |
| Basic earnings per share | 5.20 CNY | — |
Operating cash flow rose by more than half a percent, reflecting effective management of working capital and disciplined cost control. Sales, management and research expenses all declined in the same period, with sales costs falling 13.76 % and management costs 14.48 %. The company’s research expenditure fell 6.39 %, indicating a shift toward efficiency.
Core Product Strength
- Central air‑conditioning – Maintained the first‑place market share in China’s central air‑conditioning market for the fourteenth consecutive year, with a market‑share rate above 15 %.
- Household air‑conditioners – Online retail volume accounted for 24.31 % of the industry, ranking first among competitors.
- Air‑purifiers – Expanded alongside the air‑conditioner portfolio, reinforcing the company’s position in household durables.
The company’s product mix includes window, split, floor, mobile, mobile‑split and ceiling air‑conditioners, as well as air‑purifiers.
Cost‑Control and R&D
- Sales cost: 8.411 bn (‑13.76 % YoY).
- Management cost: 5.180 bn (‑14.48 % YoY).
- R&D cost: 6.463 bn (‑6.39 % YoY).
These reductions contributed to the robust operating cash flow and helped preserve margin.
International Expansion
- Export profile – The proportion of self‑branded products in total exports increased to 70 %; in “Belt and Road” countries the share exceeded 85 %.
- Key projects – The SilenzX series of quiet air‑conditioners secured the heating‑ventilation‑air‑conditioning project at the Serbia World Expo.
- Silicon‑carbide (SiC) semiconductor – The company has completed a fully automated SiC chip plant with a core‑equipment domestic‑sourcing rate above 70 %.
- Smart equipment – A 3‑D‑printed CNC machine tool won the Gold Award at the 50th Geneva International Exhibition of Inventions.
Market‑Specific Highlights
- Dividend and cash‑flow focus – Gree appears in the top‑ten holdings of the Shanghai‑Shenzhen 300 Low‑Volatility Dividend ETF (515300) and the China Securities Free Cash‑Flow ETF (159235).
- In the 300 Low‑Volatility Dividend index, Gree’s weight is 7.9 % of the top ten constituents, underscoring its standing among high‑dividend, low‑volatility firms.
- The Free Cash‑Flow index emphasizes companies with robust free cash‑flow generation, a category Gree has demonstrated through its operating cash‑flow growth.
- Sector positioning – The company’s inclusion in indices that filter out financial and real‑estate sectors positions it within the core manufacturing and household appliance subsector, which remains resilient under cyclical pressure.
Stock Performance Snapshot
| Metric | Value (CNY) | Notes |
|---|---|---|
| Close (2026‑05‑17) | 39.71 | Trading on the Shenzhen Stock Exchange |
| 52‑Week High (2025‑07‑22) | 48.47 | Highest price since July 2025 |
| 52‑Week Low (2026‑03‑03) | 36.60 | Lowest price since March 2026 |
| Market Capitalisation | 225.19 bn | Reflects investor confidence in the company’s fundamentals |
| P/E Ratio | 7.73 | Indicates a relatively attractive valuation compared with the broader consumer‑durables sector |
Summary
Gree Electric Appliances Inc of Zhuhai reported a 9.89 % decline in revenue and net profit for 2025, yet its operating cash flow grew by nearly 58 %. The company maintained leading market shares in both central and household air‑conditioning, while expanding its export footprint and advancing its silicon‑carbide semiconductor capabilities. Cost reductions in sales, management and R&D further strengthened its cash‑flow position.
In the broader market context, Gree’s presence in both dividend‑focused and free‑cash‑flow‑oriented ETFs underscores its perceived stability and attractiveness to investors seeking defensive exposure within the consumer‑durables sector.
