Leading Chinese home appliance manufacturers Haier Smart Home, Supor, and Robam Appliances all reported declines in both profit and revenue during the first half of the year, with profits experiencing nearly a 20 percent drop amid rising costs and mounting external pressures, including geopolitical tensions in the Middle East.
Haier Smart Home, a subsidiary of the large home appliance group Haier Group, announced a 14.2 percent decrease in net profit for the six months ending June 30, amounting to 10.3 billion yuan ($1.5 billion). Operating revenue slightly declined by 2.8 percent, totaling 152.1 billion yuan ($22.6 billion). The strengthening of the Chinese yuan led to a foreign exchange loss of 704 million yuan ($100 million), contrasting with a foreign exchange gain of 882 million yuan ($131 million) during the same period last year.
Kitchen appliance manufacturer Supor saw its net profit decline by 7.7 percent to 868 million yuan ($129 million), while revenue dropped by 0.6 percent to 11.4 billion yuan ($1.7 billion). The company attributed the profit decrease mainly to reduced export sales and higher raw material costs. Additionally, lower market interest rates resulted in decreased returns on its cash holdings.
Robam Appliances experienced an 18.7 percent decrease in net profit, which fell to 578 million yuan ($86 million), alongside a 13.7 percent drop in revenue, now totaling 3.9 billion yuan ($590 million). The company cited reduced government subsidies for consumer purchases and ongoing challenges in the real estate sector as key factors impacting its first-half results.
The overall retail sales of non-electronic home appliances across China declined by 9.9 percent in the first half compared to the previous year, reaching 425 billion yuan ($63.2 billion), according to industry analytics. International markets also faced difficulties influenced by geopolitical tensions, notably the conflict in the Middle East, leading to regional differences in the global home appliance industry. Rising raw material costs, such as copper and plastics, along with yuan appreciation, further increased operational difficulties for manufacturers.
It is expected that China will begin a household replacement cycle between 2029 and 2030, with potential industry focus shifting toward specific use cases like air and energy management, leisure and entertainment, and household cleaning solutions.