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Shares of the leading Chinese air conditioning manufacturer reached their highest point in seven months today after announcing a substantial final dividend of 11.1 billion yuan (approximately $1.6 billion) for 2025. This decision boosts the total annual payout to 16.7 billion yuan, despite the company’s net profit and revenue declining that year due to sluggish demand and other challenges.
This generous dividend announcement, coupled with a broad rally across major stock indices, drove the company’s stock price to its highest since September of the previous year. The stock closed up 5.2%, trading at 40.47 yuan (around $6), while the Shenzhen Composite Index increased by 1.9% to close at 15,120.92 points.
Last year, the company reported a nearly 10% decrease in both net profit and revenue, falling to 29 billion yuan ($4.2 billion) and 170.4 billion yuan ($25 billion), respectively, according to its financial results for 2025 released last night.
Revenue from consumer appliances, including air conditioners, declined by 10.4% to 133.1 billion yuan ($19.4 billion). Meanwhile, revenue from industrial products inched up 0.7% to 17.3 billion yuan ($2.5 billion), and sales of smart equipment surged remarkably by 60.5%, reaching 681 million yuan ($99.6 million). Additionally, the company’s net cash flow from operating activities for the full year jumped 57.9% to 46.3 billion yuan ($6.8 billion).
Despite drops in profit and revenue, the company was able to slightly enhance its gross profit margins, thanks to its dominant position in the industry. The domestic gross margin increased by 0.27 percentage points to 34.52%, while the overseas gross margin improved by 0.53 percentage points to 24.54%.
The decline in performance reflects broader pressures in China’s home appliance market, combined with weaker overseas demand due to a sluggish global economic recovery and high US tariffs, among other factors.
According to ChinaIOL.com, the country’s sales of household air conditioners fell by 1.2% last year compared to the previous year, totaling 198 million units. Domestic shipments rose modestly by 0.7% to 105 million units, while exports declined by 3.3% to 93.1 million units.
This revenue decline has widened the gap between this company and China’s other top white goods manufacturers. Midea Group’s revenue for 2025 soared 12.1% year-over-year to 456.5 billion yuan ($66.8 billion), while Haier Smart Home saw an increase of 5.7%, reaching 302.3 billion yuan.
However, the company’s performance began to rebound as it headed into 2026. In the first quarter, net profit increased 3% year-over-year to 6 billion yuan ($878 million), and revenue grew by 3.5% to 42.9 billion yuan ($6.2 billion), according to its quarterly report released yesterday. Nonetheless, net cash flow from operating activities dropped sharply by 29.1% to 7.7 billion yuan ($1.1 billion).
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