Guolian Minsheng Securities 25H1 Home Appliance Industry Financial Report Overview: White Goods Domestic Sales Prosperity Rising, Leading Cleaners High Growth

According to the Zhitong Finance APP, Guolian Minsheng Securities released a research report stating that in Q2 2025, the home appliance sector's revenue is expected to increase by 4.78% year-on-year to 431.5 billion yuan, and the net profit attributable to the parent company is expected to rise by 3.38% year-on-year to 38.1 billion yuan, showing steady growth. During the quarter, the domestic sales of white goods showed an upward trend, the impact of export tariffs became apparent, but the resilience of leading companies was prominent; leading cleaning brands experienced high growth, and spending on discretionary categories increased, leading to a decline in profitability. Looking ahead, the old-for-new policy will support domestic demand, and the contributions from leading self-owned brands and emerging categories going overseas will add incremental growth. The quality of leading companies' financial statements is expected to support performance that is not weaker than revenue growth, progressing steadily, and the investment value is worth noting.

The main points of Guolian Minsheng Securities are as follows:

The home appliance sector's mid-year report for 2025 has been disclosed

In Q2 2025, the home appliance sector's revenue is expected to increase by 4.78% year-on-year to 431.5 billion yuan, and the net profit attributable to the parent company is expected to rise by 3.38% year-on-year to 38.1 billion yuan, showing steady growth. The old-for-new policy drives domestic demand, the domestic sales of white goods are on the rise, leading cleaning brands continue to grow rapidly, the impact of export tariffs is becoming apparent, and the resilience of leading companies is prominent; spending on discretionary categories has increased, leading to a slight decline in profitability.

White Goods: Domestic sales are on the rise, overseas resilience is prominent

In Q2 2025, the revenue of the white goods sector is expected to increase by 4.64% year-on-year to 303.2 billion yuan, with domestic sales policies continuing, high temperatures driving air conditioning demand, leading retailers continuing to transform, competitive strategies being proactive, and high-end brands showing strong growth; during the quarter, the impact of tariffs became apparent, and export sales weakened slightly compared to the previous quarter. The business of leading brands in emerging markets continues to grow rapidly, and localized operations in North America outperform the industry, demonstrating resilience. In Q2 2025, the net profit attributable to the parent company in the white goods sector is expected to increase by 6.08% year-on-year to 30.6 billion yuan, with net operating cash flow increasing by 48.18% year-on-year; the net profit margin attributable to the parent company increased by 0.14 percentage points year-on-year to 10.09%, continuing to improve.

Black Goods: Revenue continues to grow, profitability shows differentiation

In Q2 2025, the revenue of the black goods sector is expected to increase by 5.81% year-on-year to 50.779 billion yuan, showing steady growth. During the quarter, the leading color TV brands improved their domestic product structure, and the cost environment for LCD TV panels was relatively mild, but the changes in U.S. tariff policies were significant, putting pressure on external demand, and the negative scale effects of OEM companies weakened profitability. As a result, the financial performance of leading self-owned brands and overseas OEM leaders showed differentiation. Overall, in Q2 2025, the gross profit margin of the black goods sector improved slightly by 0.08 percentage points year-on-year, while the net profit margin attributable to the parent company declined slightly by 0.14 percentage points year-on-year, with the net profit attributable to the parent company in Q2 down by 1.04% year-on-year to 1.033 billion yuan.

Kitchen Appliances: Revenue under pressure year-on-year, profitability declines

In Q2 2025, the revenue of the kitchen appliance sector is expected to decrease by 6.95% year-on-year to 12.4 billion yuan, mainly due to the drag from the real estate market and increased difficulty in applying for subsidies. Among them, the traditional smoke and stove leader ROBAM achieved growth and performed the best, while integrated stove companies saw a significant decline in revenue, and leading lighting and electrical companies also faced pressure. During the quarter, leading companies actively improved their product structure, but sales expenses also increased, leading to a decline in profitability, with the net profit attributable to the parent company in the kitchen appliance sector down by 16.75% year-on-year to 1.96 billion yuan.

Smart Home: Revenue grows rapidly, marketing investment increases In Q2 2025, smart home revenue increased by 32.09% year-on-year to 12.564 billion yuan, with revenue growth accelerating compared to Q1 2025 due to domestic promotions and overseas economic conditions. Smart home companies, represented by leading cleaning appliance brands, actively captured market share both domestically and internationally with new products, but marketing expenditures also significantly increased. Additionally, some leading companies' expansion into new business growth curves also involved certain marketing investments, dragging down the net profit attributable to the parent company for smart homes in Q2 2025, which decreased by 12.95% year-on-year to 1.026 billion yuan.

Traditional Small Appliances: Revenue Growth Turns Negative, Profitability Under Pressure

In Q2 2025, traditional small appliance revenue decreased by 0.69% year-on-year to 23.1 billion yuan, with growth turning negative. Companies focused on exports saw a slowdown in revenue, while some domestic sales-oriented companies experienced negative revenue growth. Changes in tariff policies, weakened external demand, and increased difficulty in claiming subsidies may have all contributed. Some companies improved their product structure during the quarter, but changes in tariff policies and increased marketing expenditures may still have dragged down industry profitability, with net profit attributable to the parent company for traditional small appliances in Q2 2025 decreasing by 12.44% year-on-year to 1.344 billion yuan.

Risk Warning

Policy implementation may fall short of expectations, raw material costs may rise sharply, and uncertainties regarding external demand and tariffs