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In the first half of the year, the company achieved record-breaking results, driven by its focus on premium products and expanding its presence overseas. The home appliance manufacturer also promoted 48-year-old Vice President Wang Jianguo to the role of executive president as part of a leadership refresh aimed at integrating younger talent into top management.
Both revenue and net profit reached new heights for the period. Net income increased by 25 percent year-over-year to CNY26 billion (approximately USD3.6 billion), while total revenue grew by 16 percent to CNY252.3 billion (around USD35.4 billion), according to a financial report published on August 29.
Alongside the earnings announcement, Wang Jianguo, who joined the company in 1999 and currently serves on its board of directors, was appointed as executive president. He previously held the position of vice president since 2017, responsible for international operations and the smart home division.
Wang has long been considered a potential future leader for the company, often seen as a successor to current Chairman and President Fang Hongbo. Fang, 58, assumed leadership from the company’s founder, He Xiangjian, in 2012. Earlier this year, Fang mentioned that he is actively nurturing the next generation of leadership.
Revenue from the smart home division—which encompasses appliances such as air conditioners, refrigerators, and washing machines—rose 13 percent to CNY167.2 billion (USD23.4 billion) in the first half. Meanwhile, income from the commercial and industrial solutions segment, including fields like new energy, smart building technologies, and robotics, increased by 21 percent to CNY64.5 billion.
Overseas sales grew 18 percent to CNY107.2 billion (USD15 billion), surpassing domestic growth. By June 30, the company had established 41 manufacturing bases abroad, with products available in over 200 countries and regions. The firm also owns several international brands, including Japan’s Toshiba and Italy’s Clivet.
Domestic demand for home appliances picked up during the first half, fueled by government trade-in incentives encouraging consumers to replace old appliances with new ones. Nonetheless, competition within China remains fierce, and internationally, the company faces obstacles such as trade protectionism, currency exchange rate volatility, and geopolitical tensions, the company stated.
To maintain its competitive edge, the company is launching a premium brand strategy and transitioning toward a direct-to-consumer sales approach within China. It is also accelerating investment in local manufacturing facilities and supply chains overseas, the company added.
Thanks to its outstanding performance, the company announced its first-ever interim dividend. It plans to pay a cash dividend of CNY5 (about USD0.70) per 10 shares, totaling approximately CNY3.8 billion (around USD533 million).
Shares of the company closed up 0.4 percent today at CNY74.03 (USD10.38), valuing the firm at CNY568.2 billion (approximately USD79.7 billion).
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