On the evening of April 29, the three major giants of the White Power Group, Midea Group (000333), Gree Electric Appliances (000651), and Haier Zhijia (600690), released the first quarterly report this year. Among them, Midea was the least affected by the epidemic, with revenue and profits falling by about 20%; Gree was the hardest hit, with revenue falling by 50% and profits by about 70%.


Prompt the impact of the epidemic on performance

In specific aspects, Midea Group ’s first quarter revenue was 58 billion yuan, a decrease of 22.86% compared with the same period of the previous year; Net profit was 4.8 billion yuan, 21.51% less than the same period last year.

Gree Electric ’s announcement shows that revenue in the first quarter of this year was 20.3 billion yuan, a decrease of 49.70% from the same period of the previous year; net profit was 1.55 billion yuan, a decrease of 72% .

Haier Zhijia’s announcement shows that revenue in the first quarter of this year was 43.1 billion yuan, down 11.09%; net profit was 1.07 billion yuan, down 50.16%.

The three major white power giants are all alerting to the risk of the new coronary pneumonia epidemic on the company ’s future performance. Midea Group said that due to the impact of the new coronary pneumonia epidemic in early 2020, domestic consumption and production will be affected in the short term. The company’s offline retail passenger flow will decrease in the short term, and the epidemic situation in overseas regions is also showing an increasing trend. If the impact of the new coronary pneumonia epidemic lasts longer, it may pose challenges to the company’s business development in 2020.

Gree Electric said that the impact of the new coronavirus pneumonia may lead to a slowdown in macroeconomic or consumer demand growth, and the growth of the company ’s home appliance market will also follow Slowing down; under the influence of the new coronavirus pneumonia, the “inverse globalization” and trade protectionism in some countries or regions have become more prominent, and the uncertainty of the global economy has further increased, which has brought new development to the company’s overseas market. Challenges and risks of increasing operating costs.

Haier Zhijia said that in the first quarter of 2020, the new coronary pneumonia epidemic had an impact on the domestic consumer electronics consumer market. In overseas markets, with the rapid spread of the epidemic worldwide, it is expected to have a large negative impact on the demand for home appliances in overseas markets in the second quarter. Faced with the challenge of the epidemic, the company adhered to the landing of the IoT ecological brand strategy, focused on leading smart home scenario solutions, accelerated transformation, seized opportunities, and popularized the company’s health appliances with advantages, and performed better than the industry.


2019 has the most revenue in the United States and Gree is still the most profitable

On April 29, the three giants disclosed their full-year 2019 results at the same time. Midea Group has the largest revenue among the three companies, followed by Haier Zhijia and Gree Electric Appliances. Haier Zhijia surpassed Gree Electric for the first time in 2019. In terms of profit, Gree Electric is still the highest among the three giants, followed by Midea Group and Haier Zhijia.

Midea Group ’s revenue in 2019 was 278.2 billion yuan, an increase of 7.14% over the same period last year, and net profit was 24.2 billion yuan, an increase of 19.68%. Earnings per share is 3.60 yuan.

Gree ’s annual revenue was 198.1 billion yuan, an increase of 0.02%; net profit was 24.6 billion yuan, a decrease of 5.75%. Earnings per share was 4.11 yuan.

Haier Zhijia ’s annual revenue was RMB 20.7 billion, an increase of 9.05%; net profit was RMB 8.2 billion, an increase of 9.66%. Earnings per share was 1.28 yuan.

However, the three major giants are facing growth problems, revenue growth is in single digits, Gree almost does not grow.

Midea ’s online channel sales in 2019 are outstanding. In 2019, Midea’s entire network sales scale was close to 70 billion, with a year-on-year increase of more than 30%. It continued to maintain the industry’s first position in the home appliance category in mainstream e-commerce platforms such as JD.com, Tmall, and Suning.com.

Secondly, Midea ’s air-conditioning business performed better than the general trend in 2019. According to relevant data from Aoweiyun.com, the share of the major home appliance categories in the Chinese market in 2019 has increased to varying degrees, of which household air-conditioning products have increased significantly in all channels, with an online market share of 30% and offline The share is close to 29%.

Announcement: Midea ’s HVAC business revenue was 119.6 billion yuan, an increase of 9.34%; consumer electronics revenue was 109.4 billion yuan, an increase of 6.31%, robots Business revenue was 25.1 billion yuan, down 1.89%.

Midea has invested more than 10 billion yuan in R & D in 2019 and has 28 research centers in 11 countries including China. The past 5 yearsInvestment in research and development is close to 40 billion yuan.

Gree Electric Appliances saw a stagnation of growth and a decline in net profit in 2019. The main reason is that Gree air-conditioning business accounted for as much as 70%. Gree air-conditioning revenue during the period was 138.6 billion yuan, down 10.93%.

From the report, Gree Electric ’s massive tens of billions of subsidies launched in the fourth quarter of last year did not bring Gree a very high income return, which lowered profits. which performed.

Gree Electric ’s revenue in the fourth quarter was approximately 43.1 billion yuan, lower than in the second and third quarters. The price war spurred by this subsidy led to a sharp decline in the company’s profit in the fourth quarter.

Gree ’s annual R & D investment was 5.89 billion yuan, a decrease of 15.7% from the same period last year.

Haier Zhijia ’s overseas revenue performance was outstanding last year. In 2019, Haier’s overseas market achieved revenue of 94.1 billion yuan, an increase of 22% year-on-year; the total pre-tax profit margin of overseas markets increased by 0.3 percentage points. In terms of products, in addition to the decline in the air-conditioning business, other refrigerator businesses, kitchen appliances business and washing machine business have maintained good growth.

The announcement shows: Haier ’s refrigerator business revenue was 58.4 billion yuan, an increase of 7.54%; kitchen appliance business revenue was 29.5 billion yuan, an increase of 18.27%. The revenue of the washing machine business was 44.7 billion yuan, an increase of 23.29%. Air-conditioning business revenue was 29 billion yuan, a decline of 8.32%. Haier’s annual R & D investment is 6.7 billion yuan.