As we all know, Hisense Video’s main business is display products, while Hisense Home Appliances’ main business is air conditioners, refrigerators, washing machines and other home appliances. The product business scope of the two companies is different.
In October 2018, Hisense Kelon officially changed its name to Hisense Home Appliances; in December 2019, Hisense Appliances also changed its name to Hisense Video. The company believes that it can well reflect the company's actual main business and strategy. Positioning to meet the company's brand management and brand development needs. With the impact of the epidemic and the downturn of the real estate industry, its own revenue has been affected.
Hisense Home Appliances’ financial report for the first quarter of 2020 shows that it achieved revenue of 7.586 billion yuan, a year-on-year decrease of 12.68%; it achieved a net profit attributable to shareholders of listed companies of 43.5504 million yuan, a year-on-year decrease of 89.67%. Hisense Video achieved operating income of 6.764 billion yuan in the first quarter of 2020, a year-on-year decrease of 11.26%; it achieved a net profit of 51.37 million yuan, a year-on-year increase of 91.79%.
In the first quarter of 2021, Hisense home appliance revenue was 13.935 billion yuan, a year-on-year increase of 83.70%; net profit was 218 million yuan, a year-on-year increase of 400.66%; Hisense Video achieved revenue of 10.378 billion yuan, a year-on-year increase of 53.43%; The net profit attributable to shareholders of listed companies was 203 million yuan, a year-on-year increase of 294.87%.
Except for the impact of the epidemic, the market size of my country's home appliance industry has shown a trend of slow growth or even decline. After years of development, my country's home appliance market has already moved from an incremental market to a stock market.
Hisense Home Appliances’ business scope covers the entire white goods industry, so its business volume is relatively large. However, from the perspective of revenue ratio of each product, its air conditioner and ice washing business are its two main businesses.
The company’s air-conditioning business has a compound revenue growth rate of 16.2% in the past four years, which is in the medium-speed growth range. Specifically, each year has experienced a cycle of negative growth, medium-speed growth, high-speed growth and low-speed growth. The gross profit margin of this business is relatively stable.
The compound growth rate of the company's ice and washing business in the past four years has been 8.7%, which is in the low-speed growth range. Specifically, it has experienced a cycle of negative growth, medium-speed growth, and low-speed growth in each year. The gross profit margin of this business fell first and then rose in the past five years.
In general, Hisense Video and Hisense Home Appliances are in fierce competition. Both the consumer electronics and home appliance industries are occupied by leading companies. The performance of Hisense Home Appliances is indeed slightly better than Hisense Video. .