Securities Times｜Shanghai Stock Exchange Investigates Household Appliance Industry, Listed Companies Expect Consumption Boosting Policies to Be Refined

In 2024, the overseas business of several home appliance companies on the Shanghai Stock Exchange (SSE) grew steadily. The trade-in policy for old consumer goods activated the renewal of rigid demand. How to "advance" the home appliance industry in 2025? Home appliance companies on the SSE expressed that they are looking for refined policies to boost consumption, a more relaxed financing environment, and better policies to support their global expansion.

Impressive performance in overseas expansion and expectation for smoother paths to "go global"

In 2024, "going global" was a highlight for the home appliance industry. Whirlpool China's new overseas projects were put into production and led to an increase in export orders. Anhui Higasket Plastics accelerated its transfer of production capacity and achieved its international strategic goal of "1515" (building 15 overseas production bases in 15 years). The plant in Thailand (1st phase) of Zhejiang Biyi Electric Appliance is to be completed, and the trial production is expected to start in March 2025. Ningbo Fujia Industrial tried to avoid trade risks by opening factories abroad.

How to "go global" more smoothly? Ningbo Dechang Electrical Machinery Made is looking for policies that facilitate the promotion of products abroad and the construction of international production capacity, such as subsidizing overseas subsidiaries to purchase domestic equipment and materials and guiding financial institutions to serve enterprises to do business abroad. Other enterprises hope that the domestic capital market should strengthen international cooperation and exchanges to support cross-border M&A.

In addition to domestic sales policies, enterprises hope to see a "more relaxed" financing environment

Thanks to the trade-in policy for old consumer goods, home appliance enterprises achieved excellent domestic sales in 2024, with a rebound in average sales prices and scales. The effect is expected to last until 2025, but competition will also be intensified. Anhui Higasket Plastics expects more favorable policies with broader coverage. Whirlpool China believes that full coverage of subsidies can stimulate demand and drive upgrading. Listed companies have been developing growth drivers. For example, Zhejiang Biyi Electric Appliance uses intelligence technologies and AI to improve cooking effects and develop new categories; Ningbo Fujia Industrial has expanded energy storage, tapped into new segments featuring new quality productive forces by exploring application scenarios with robots, promoted domestic sales, and diversified risks.

Some private home appliance companies are concerned about the financing environment and are looking for optimized refinancing conditions and processes and broader channels. The traditional manufacturing industry is encouraged to conduct cross-industry M&A investment, promote transformation, upgrading, and innovative development, cultivate new growth points and competitive advantages, so as to achieve better development in 2025.

The above information is provided for reference purposes only and does not constitute investment advice.