Subsidy policy promotes home appliance performance in the first half of the year

This week, a number of home appliance listed companies successively announced their performance in the first half of the year. The performances of listed companies such as Hisense Kelon, Midea Electric Appliances, Qingdao Haier, Wanhe Electric, and Hefei Sanyo have all experienced varying degrees of growth. In addition to the transformation and upgrading of the company itself and the recovery of the industry, the new round of energy-saving and subsidy policies implemented last year all played a leading role.

The semi-annual report released by Hisense Kelon shows that in the first half of the year, the company's main business income was 12.993 billion yuan, up 30.35% year-on-year; and its net profit attributable to it was 707 million yuan, up 86.07% year-on-year. In terms of specific categories, the refrigerator business revenue in the first half of the year was 5.311 billion yuan, an increase of 24.49% year-on-year, and air-conditioning business revenue was 5.057 billion yuan, an increase of 34.60% year-on-year. In particular, the air-conditioning business has become a bright spot.

Guisong Feng, head of Hisense Kelon's air-conditioning marketing department, stated: “In the cold year of 2013, Hisense Kelon has made remarkable achievements in the market through structural and product adjustments.” According to statistics from Yikang, the domestic air-conditioning industry retails from January to July this year. The volume increased by 14.10% year-on-year, and Hisense's air-conditioner increased by 62.47% year-on-year. The growth rate ranked first in the industry's major brands, and Kelon air-conditions increased by 32.02%, ranking the industry leader.

Haier's semi-annual report showed that in the first half of the year, the company achieved revenue of 42.971 billion yuan, an increase of 6.18%, and net profit attributable to listed companies was 2.131 billion yuan, an increase of 15.03% over the same period of last year. The overall gross profit rate reached 24.76%, which was a year-on-year increase. 0.17 percentage points. In terms of sub-sectors, the market share of refrigerators, washing machines, and water heaters continued to be the largest in the industry; the air-conditioning business achieved rapid growth and its market share steadily increased. Qingdao Haier stated in its financial report that the factors such as the need for overdrafts of energy-saving policies and the slowdown in economic growth will have a negative impact on the demand for the white-power industry in the second half of the year. On the other hand, the introduction of new energy efficiency standards will benefit leading home appliance companies with technological reserves and R&D strengths in a dominant position.

Wanhe Electric achieved total operating income of 1.837 billion yuan in the first half of the year, an increase of 26.36% over the same period of the previous year, and the net profit attributable to shareholders of listed companies was 147 million yuan, a year-on-year increase of 15.71%. According to the financial report, the new round of home appliance energy subsidies implemented in June last year included water heaters as subsidies for the first time. Wanhe had 56 models and 112 first-class energy-condensation condensing water heater products won the bid. Under this favorable push, Wanhe Energy Saving Subsidy Water heater product sales increased significantly. According to the latest statistics from China Yikang, from June 2012 to June 2013, the sales volume of Wanhe energy-saving subsidized condensing gas water heaters accounted for 40.84% ​​of the total industry, and the sales proportion accounted for 37.79%, accounting for half of the industry.

The mid-year report released by Midea Electric, which is in the process of swapping stocks for mergers and acquisitions, showed that in the first half of the year, the company realized operating revenue of 46.287 billion yuan, an increase of 18.72% year-on-year, and net profit attributable to shareholders of listed companies was 2.604 billion yuan, an increase of 24.69% year-on-year.

Hefei Sanyo’s semi-annual report, which just announced restructuring news, showed that despite the decline in Japan’s Sanyo orders, export business suffered a contraction, which fell 12.73% year-on-year, but domestic revenue increased by 60.86% year-on-year. The company’s operating income and net profit both increased in the first half. The operating income was 2.538 billion yuan, an increase of 46.17% over the same period of last year; and the net profit was 194 million yuan, an increase of 21.70% over the same period of last year. Hefei Sanyo said that its first-half results achieved and exceeded the half-year target set by the board of directors at the beginning of the year and reached the best level in history.

However, this year's financial report released Jiuyang shares performance data is not so good, the first half of the revenue only slightly increased, net profit has declined. According to the financial data, Jiuyang Co., Ltd. achieved total revenue of RMB 2.487 billion in the first half of the year, an increase of 0.33% year-on-year. The comprehensive gross profit margin decreased by 0.91 percentage points year-on-year to 33.46%, and the net profit attributable to shareholders of listed companies was RMB 254 million, a year-on-year decrease. 3.65%.

However, nine positive performance in e-commerce is more prominent. According to the financial report, in the first half of the year, new types of breadmakers, ultra-thin induction cookers, instant bread makers, and juice makers were released through e-commerce platforms. All of the single products have achieved leading sales performance in the e-commerce industry. Jiuyang expects its net profit for the January-September period to range from 322 million yuan to 483 million yuan, which represents a range of -20% to 20% over the previous year.