Caixin
Apr 30, 2021 04:22 PM
BUSINESS & TECH

Appliance Giant Gree’s Business Rebounds in First Quarter

What’s new: Household appliance giant Gree Electric Appliances Inc. of Zhuhai reported its annual revenue fell 15% to 168 billion yuan ($26 billion) last year, while its profit fell 10% to 22.2 billion yuan.

Despite the annual declines, the company’s performance showed signs of improvement in the fourth quarter of 2020 and first quarter of 2021. During last year’s fourth quarter, the company’s revenue fell by a milder 1.9% to 42.3 billion yuan, while its profit more than tripled to 8.48 billion yuan.

Concurrent with the annual figures, Gree also reported results for this year’s first quarter that showed its revenue jumped 63% to 33.2 billion yuan, while profit rose 121% to 3.44 billion yuan.

Background: Like many other sellers of consumer products, Gree, whose name is synonymous in China with air conditioners, took a big hit in the first half of 2020 when many people were housebound under various forms of lockdown at the height of the country’s Covid-19 outbreak.

The situation improved in the second half of the year, though Gree’s business has yet to return to pre-pandemic levels. Its first-quarter revenue this year was 18% below the 40.5 billion yuan it reported in the first quarter of 2019; and its latest first-quarter profit was about 40% below its 2019 first-quarter profit of 5.67 billion yuan.

Related: Succession Crisis Looms for Chinese Appliance-Maker Gree as CEO Resigns 

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Yang Ge (geyang@caixin.com)

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