(Yicai Global) Aug. 23 -- Shares of Gree Electric Appliances jumped after the world’s biggest maker of home air conditioners reported a 49 percent increase in first-half net profit because of a rebounding air-con market and a low base of comparison from last year due to the pandemic.

Gree [SHE:000651] closed 3.9 percent higher today at CNY44.99 (USD6.93), after earlier gaining as much as 4.2 percent. The shares are still down 27 percent this year.

Net profit was CNY9.5 billion (USD1.5 billion) in the six months ended June 30, the Zhuhai-based white goods maker said in an earnings report published yesterday. Revenue jumped 31 percent to CNY91.1 billion (USD14 billion), but still 6.4 percent lower than 2019’s first-half revenue.

China’s air-con industry recovered moderately in the first half, as total sales rose 13.6 percent to 86.4 million units, of which 41.8 million were overseas, up 15.3 percent from a year ago, according to ChinaIOL data.

Gree has an almost 34 percent share of China’s air-con market and just over 16 percent of its central air-con market. The firm is also expanding into refrigerators and washing machines.

Going forward, Gree’s earnings report said the company faces a number of risks, including economic and cost fluctuations, trade protectionism, exchange rate fluctuations, and foreign exchange losses. But Gree entered the second half “with significant momentum as it rapidly gains market share with innovative products and strong sales,” it said in a press release on July 29.

Editor: Futura Costaglione