Home Appliance Profits Rise 10%, Top Three Giants Take 75%, Over Half of Firms See Decline

The profits of home appliance companies are increasingly concentrated in the hands of industry giants.

In the first three quarters of 2025, over 100 home appliance firms listed on the A-share market reported a combined net profit of 102 billion yuan, up 10% from 92.7 billion yuan in the same period last year.

This growth rate is notable, especially in a saturated market where positive growth is challenging, let alone double-digit expansion.

However, performance varies significantly among companies. The top three giants—Midea Group (37.9 billion yuan), Gree Electric Appliances,Inc.Of Zhuhai (21.5 billion yuan), and Haier Smart Home (17.4 billion yuan)—collectively earned 76.8 billion yuan, accounting for over 75% of the total profit.

The remaining firms, representing more than 97% in number, shared just 25% of the profits, highlighting a stark contrast. Nine companies in the third tier reported profits exceeding 1 billion yuan but below 5.5 billion yuan, while no firms fell into the second tier (5-10 billion yuan).

Not all companies were profitable—12 firms remained in the red, led by Shenzhen Konka Group with a loss of nearly 1 billion yuan. Four others, including Mars Petcare, reported losses exceeding 100 million yuan.

Even among leading firms, profit growth diverged. While Gree Electric Appliances,Inc.Of Zhuhai saw a 2.3% decline, Midea Group and Haier Smart Home maintained solid growth at 19.5% and 14.7%, respectively.

Mid-tier players like Sichuan Changhong and Ecovacs Robotics doubled their profits, albeit from a low base, reaching 1 billion yuan and 1.4 billion yuan, respectively.

Sanhua Intelligent Controls emerged as a standout, posting a 41% profit surge to 3.24 billion yuan, driven by its refrigeration and new energy vehicle thermal management businesses. This propelled its valuation to a 52x P/E ratio, far above Midea (13x), Gree (7x), and Haier (12x).

Year-to-date through October, Sanhua’s stock soared 114%, closing in on Gree’s 220 billion yuan market cap, while Gree’s shares fell 6.7%.

Overall, 46 firms reported profit growth, while 57 (55%) saw declines.

As of November 1, the sector’s total market cap stood at 2.12 trillion yuan, with the top four firms accounting for 1.27 trillion yuan (60%). Midea led at 600 billion yuan, followed by Ecovacs (51.7 billion yuan), while five firms were valued below 2 billion yuan.

(Data source: Wind)