(Yicai) Aug. 28 -- Leading Chinese home appliance manufacturers Haier Smart Home, Supor and Robam Appliances all reported declines in both profit and revenue in the first six months, with the sharpest drop in profit approaching 20 percent, amid escalating costs and other pressures, including the conflict in the Middle East.

Haier Smart Home, a subsidiary of home appliance giant Haier Group, posted a 14.2 percent drop in net profit in the six months ended June 30 from the year before to CNY10.3 billion (USD1.5 billion), while operating revenue edged down 2.8 percent to CNY152.1 billion (USD22.6 billion), according to the Qingdao-based company’s semi-annual report. The appreciation of the Chinese yuan resulted in a foreign exchange loss of CNY704 million (USD100 million), compared with a CNY882 million (USD131 million) foreign-exchange gain in the same period last year.

Kitchen appliance maker Supor’s net profit tumbled 7.7 percent over the period to CNY868 million (USD129 million) while revenue dipped 0.6 percent to CNY11.4 billion (USD1.7 billion). The decline in profit was primarily due to a weaker export business and rising raw material costs, the Hangzhou-based firm said. Lower market interest rates also led to a decrease in returns on its monetary funds.

Robam’s net profit sank 18.7 percent to CNY578 million (USD86 million), while revenue fell 13.7 percent to CNY3.9 billion (USD590 million).

The kitchen appliance manufacturer’s first-half performance was mainly affected by the scaling back of government subsidies for consumer purchases and continued pressure in the real estate market, the Hangzhou-based company said.

Retail sales across China’s home appliance sector, excluding consumer electronics, slumped 9.9 percent in the first half from a year earlier to CNY425 billion (USD63.2 billion), according to industry research website All View Cloud. Overseas markets were also affected by geopolitical developments, including the conflict in the Middle East, resulting in regional disparities in the global home appliance market. At the same time, high prices of raw materials such as copper and plastics, along with the appreciation of the yuan, have added to companies’ operating pressures.

China is expected to enter a household replacement cycle between 2029 and 2030, Guo Meide, president of AVC, told Yicai. The industry could focus on specific household-use scenarios, including air and energy management, leisure and entertainment and household cleaning.

Editor: Kim Taylor