Hisense Home Appliances Group Co., Ltd. (Hisense HA) reported unaudited interim results for the six months ended 30 June 2026, highlighting softer sales and lower profitability amid a challenging global appliance market.

Financial Highlights • Operating revenue fell 5.22% year-on-year to RMB 46.77 billion. • Net profit attributable to shareholders declined 20.16% to RMB 1.66 billion. • Basic and diluted EPS both stood at RMB 1.21 (-20.39% YoY). • Gross profit margin slipped 2.30 ppts to 20.36%, reflecting intensified price competition and higher costs. • Operating profit was RMB 3.03 billion, down 10.5% from the prior-year period. • Net margin (attributable) narrowed to 3.5% from 4.2%.

Segment Performance • HVAC revenue: RMB 22.35 billion (-5.66% YoY), gross margin 24.24% (-2.88 ppts). • Refrigerators & washing machines: RMB 17.38 billion (+12.88% YoY), gross margin 16.81% (-1.93 ppts). • Other appliances: RMB 6.53 billion (-1.22% YoY). Geographically, domestic sales contributed RMB 24.88 billion (-1.47% YoY), while overseas markets delivered RMB 21.38 billion (+4.56% YoY).

Cost & Expense Dynamics • Operating costs eased 4.05% to RMB 37.17 billion, slightly lagging the sales decline. • Sales and management expenses fell 11.73% and 8.24%, respectively, aided by cost controls. • Financial expenses surged 256.62% to RMB 148.49 million, driven mainly by foreign-exchange losses. • R&D spending moderated 8.25% to RMB 1.54 billion, maintaining a 3.3% share of revenue. • Other income dropped 30.54% following lower VAT rebates on embedded software.

Balance Sheet & Liquidity • Total assets increased 11.60% to RMB 78.10 billion; cash and cash equivalents rose 50.60% to RMB 5.27 billion, reflecting maturing fixed-term deposits. • Total liabilities climbed 16.36% to RMB 56.40 billion, but the gearing ratio improved to 72.21% (30 June 2025: 73.91%). • Receivables financing expanded 57.89% to RMB 7.27 billion, while other current assets fell 34.70% to RMB 1.86 billion due to lower term deposits.

Cash Flow • Net cash from operating activities decreased 39.21% to RMB 3.24 billion on softer sales. • Investing outflow narrowed to RMB 0.89 billion (H1 2025: RMB 3.62 billion) as purchases of wealth-management products eased. • Financing outflow was RMB 0.60 billion, reflecting dividend payments and reduced use of bill-related financing.

Capital Return & Dividends • A final dividend of RMB 12.65 per ten shares (total RMB 1.75 billion) for FY 2025 was paid in June 2026. • The board does not propose an interim dividend for H1 2026.

Operational Notes • The company maintained its domestic leading share of 26.6% in the multi-connected central AC market. • Overseas revenue rose on growth in Europe (+20%), North America (+11%) and other emerging regions despite Middle-East disruptions. • Sanden compressor subsidiary booked RMB 6.2 billion in new orders and improved gross margin by 0.86 ppt through cost optimisation.

Risk Factors Management cited macroeconomic softness, raw-material inflation, currency volatility and rising trade barriers as ongoing challenges. Measures include strategic raw-material hedging, global supply-chain optimisation and use of FX hedging instruments.

Corporate Governance & Compliance The Audit Committee reviewed the interim results with no disagreements reported. The company stated compliance with the Hong Kong Corporate Governance Code, and no share repurchases occurred during the period.

Outlook Hisense HA targets further premiumisation, overseas localisation and cost-efficiency initiatives to navigate industry headwinds and support sustainable growth in the second half of 2026.