(Yicai) April 29 -- Shares in Gree Electric Appliances soared to a seven-month high today after the Chinese air conditioner manufacturer said it will dish out a final dividend of CNY11.1 billion (USD1.6 billion) for 2025, bringing the total annual payout to CNY16.7 billion, despite declines in both net profit and revenue that year due to weak demand and other factors.

The announcement of the generous payout, together with a broad rally in major stock indices, propelled Gree’s share price [SHE:000651] to its highest level since September last year. The stock closed up 5.2 percent at CNY40.47 (USD6), while the market benchmark, the Shenzhen Component Index, ended the day up 1.9 percent at 15,120.92.

Gree posted a 9.89 percent drop in both net profit and revenue last year from the year before to CNY29 billion (USD4.2 billion) and CNY170.4 billion (USD25 billion) respectively, according to its 2025 financial report released last night.

Of its businesses, revenue from consumer appliances, including air conditioners, tumbled 10.4 percent to CNY133.1 billion (USD19.4 billion), revenue from industrial products advanced 0.7 percent to CNY17.3 billion (USD2.5 billion), while that from smart equipment soared 60.5 percent to CNY681 million (USD99.6 million), according to the report. Net cash flow from operating activities for the full year surged 57.9 percent to CNY46.3 billion.

Despite the slump in profit and revenue, Gree managed to slightly improve its gross profit margin, supported by its leading position in the industry. The Zhuhai-based firm’s domestic gross margin edged up 0.27 percentage point over the period to 34.52 percent, while its overseas gross margin climbed 0.53 percentage point to 24.54 percent.

The decline in Gree’s performance reflects broader pressure in China’s home appliance market, as well as weaker overseas demand due to a sluggish global economic recovery and factors such as high US tariffs.

China’s sales of household air conditioners dipped 1.2 percent last year from the year before to 198 million units, according to data from ChinaIOL.com. Of this, domestic shipments climbed 0.7 percent to 105 million units, while exports tumbled 3.3 percent to 93.1 million units.

The drop in revenue caused the gap between Gree and China’s other two leading white goods makers to widen. Midea Group’s 2025 revenue soared 12.1 percent year on year to CNY456.5 billion (USD66.8 billion), while Haier Smart Home’s revenue jumped 5.7 percent to CNY302.3 billion.

However, Gree’s performance downturn reversed as the company entered 2026. First-quarter net profit was up 3 percent from a year earlier to CNY6 billion (USD878 million) while revenue climbed 3.5 percent to CNY42.9 billion (USD6.2 billion), according to its first-quarter report released yesterday. Net cash flow from operating activities, though, plunged 29.1 percent to CNY7.7 billion (USD1.1 billion).

Editors: Tang Shihua, Kim Taylor