--- title: "GREE's Q3 revenue fell 15% year-on-year, net profit declined by over 6% year-on-year, effective cost reduction and gross margin improvement | Financial report insights" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/263572092.md" description: "GREE's Q3 performance is under pressure, with a year-on-year revenue decline of 15% for the quarter. However, the company has improved its gross margin through cost-cutting measures, and the decrease in inventory reflects reduced channel inventory pressure. Notably, operating cash flow for this quarter has increased significantly by 259.71% year-on-year, mainly due to increased sales collections and effective control of various expense expenditures" datetime: "2025-10-30T15:51:35.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/263572092.md) - [en](https://longbridge.com/en/news/263572092.md) - [zh-HK](https://longbridge.com/zh-HK/news/263572092.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/263572092.md) | [English](https://longbridge.com/en/news/263572092.md) # GREE's Q3 revenue fell 15% year-on-year, net profit declined by over 6% year-on-year, effective cost reduction and gross margin improvement | Financial report insights GREE Electric Appliances submitted a mixed third-quarter report, with both revenue and profit declining year-on-year in Q3. Revenue decreased by 15% year-on-year, and net profit fell by nearly 10% year-on-year. Despite the weak performance growth, the company achieved an increase in gross profit margin through cost reduction. Notably, due to increased sales collections and reduced expenses, operating cash flow surged by 259.71% year-on-year. At the same time, the company continues to invest in research and development, with R&D expenditure of 5.62 billion yuan, accounting for 4.1% of revenue, an increase of 0.45 percentage points year-on-year. On October 30, GREE Electric Appliances released its third-quarter financial report. The core financial data is as follows: > - Q3 single-quarter revenue of 39.86 billion yuan, a year-on-year decrease of 15.09%; revenue for the first three quarters was 137.18 billion yuan, a year-on-year decline of 6.50% > > - Q3 net profit attributable to shareholders of 7.05 billion yuan, a year-on-year decrease of 9.92%; net profit for the first three quarters was 21.46 billion yuan, a year-on-year decline of 2.27% > > - Operating cash flow of 45.73 billion yuan, a year-on-year surge of 259.71%, mainly due to increased sales collections and reduced expenses > > - Debt-to-asset ratio of 62.8%, short-term borrowings surged by 69.5% to 66.1 billion yuan, with a significant deterioration in debt structure > > - Gross profit margin for the first three quarters was 28.5%, an increase of 0.67 percentage points year-on-year > > - Inventory decreased to 25.34 billion yuan, down 9.2% from the beginning of the year > > - R&D expenditure of 5.62 billion yuan, accounting for 4.1% of revenue, an increase of 0.45 percentage points year-on-year > > > ## Growth Stalls, Q3 Decline Expands Revenue for the first three quarters was 137.18 billion yuan, a year-on-year decline of 6.50%, but the revenue for the third quarter alone was 39.86 billion yuan, a significant drop of 15.09%, with the decline expanding compared to the first half of the year. From the profit side, net profit attributable to shareholders for the first three quarters was 21.46 billion yuan, a year-on-year decrease of 2.27%, while Q3 net profit was 7.05 billion yuan, a year-on-year decline of 9.92%, with the decline also expanding. Notably, the net profit excluding non-recurring items was 20.58 billion yuan, a year-on-year decrease of 2.73%, slightly higher than the net profit attributable to shareholders, indicating that non-recurring gains and losses contributed 876 million yuan, providing some support to profits. The weighted average ROE for the first three quarters was 15.16%, a year-on-year decline of 2.64 percentage points; the Q3 single-quarter ROE was 5.06%, a year-on-year decrease of 1.37 percentage points. ## Cash Flow Surges **One of the biggest highlights of this financial report is the surge in operating cash flow.** The net cash flow generated from operating activities for the first three quarters reached 45.73 billion yuan, a year-on-year surge of 259.71%. Cash received from sales of goods was 139.99 billion yuan, a year-on-year increase of 11.1%, which stands in stark contrast to the 6.5% decline in revenue, indicating that the company has strengthened its collection efforts, possibly related to channel destocking and compressed payment terms. Notably, "cash received from other operating activities" reached 15.21 billion yuan, a year-on-year surge of 868.8% At the same time, "cash paid for other operating activities" was only 7.37 billion yuan, a year-on-year decrease of 36.2%. **The improvement in cash flow is more a result of cost control and accelerated collections, rather than growth driven by business expansion.** ## Gross Margin Improvement, Increased R&D Investment In the first three quarters, the gross margin was 28.5%, an increase of 0.67 percentage points year-on-year, indicating that the company is controlling costs and optimizing its product structure. **Operating costs were 98.17 billion yuan, a year-on-year decrease of 5.6%, with the decline greater than that of revenue, which is the direct reason for the improvement in gross margin.** In terms of R&D investment, R&D expenses in the first three quarters were 5.62 billion yuan, a year-on-year increase of 5.0%, accounting for 4.1% of revenue, an increase of 0.45 percentage points compared to 3.6% in the same period last year. Increasing R&D investment against the backdrop of declining revenue reflects the company's emphasis on technological upgrades. In addition, inventory decreased from 27.91 billion yuan at the beginning of the year to 25.34 billion yuan, a decrease of 9.2%, alleviating the company's pressure on channel inventory ### 相關股票 - [GREE (000651.CN)](https://longbridge.com/zh-HK/quote/000651.CN.md) ## 相關資訊與研究 - [A C-Suite executive at Pop Mart's biggest Chinese competitor explains what goes into making a hit toy like Labubu](https://longbridge.com/zh-HK/news/281606541.md) - [Midea Soars After Chinese Home Appliance Giant Unveils Record Share Buyback Plan](https://longbridge.com/zh-HK/news/281150788.md) - [Midea Unveils the H-Pack at MCE 2026: A Major Step Forward in Affordable Compact Heat Pump Technology and Service](https://longbridge.com/zh-HK/news/281210504.md) - [11:33 ETFitness, Health and Wellness Experts Team Up to 'Get Fit for No Kid Hungry' with New On-Demand Initiative](https://longbridge.com/zh-HK/news/281213207.md) - [13:17 ETAn InventHelp 123Invent Client Develops Protective Accessory for Tape Measures (OSK-1239)](https://longbridge.com/zh-HK/news/281405990.md)