September 3, 2024
As the half-year reports of public companies are released, the home appliances sector is experiencing a surge in popularity, and the low-altitude economy is gaining significant attention. The reports indicate a positive trend in the performance of companies within these sectors, showcasing the impact of government policies and market dynamics.
Home Appliances Sector Heats Up
The Chinese government’s Trade-in for New policy has significantly boosted the home appliances market. This policy, aimed at encouraging consumers to upgrade to more energy-efficient and smart home appliances, has led to a notable increase in sales. According to the half-year reports, the revenue of home appliances companies listed on the stock market exceeded 830 billion yuan, marking a nearly 5.9% year-on-year increase. Additionally, their net profits surpassed 61.8 billion yuan, a growth of over 6.5%.
Government Policy as a Catalyst
The Trade-in for New policy has been a driving force behind the surge in consumer interest. Consumers are increasingly seeking out energy-efficient and smart products. Sales personnel report a consistent rise in the number of inquiries from potential buyers. Consumers are highly focused on low-energy products and are also showing a keen interest in the level of smart technology incorporated into appliances, said Tang Guiping, the Retail Director for Haier Smart Home in China. He added that over 90% of the customers consulting about products are interested in their energy efficiency.
Market Analysis
Analysts specializing in the home appliances sector have noted these positive changes. Direct interactions with listed companies and visits to offline appliance stores show a marked increase compared to the previous year, said Rong Zeyu, the Chief Analyst for the Home Appliances Sector at Great Wall Securities. This upturn in the market is reflected in both online and offline sales channels, indicating a growing consumer base.
Low-Altitude Economy Garners Attention
In addition to the home appliances sector, the low-altitude economy is also gaining significant attention. This emerging field, which includes activities such as drone operations, aerial photography, and other low-altitude services, is poised to become a new growth point in the economy.
Technological Advancements and Regulatory Framework
The development of the low-altitude economy is being driven by technological advancements and a regulatory framework that supports innovation. The sector is expected to benefit from the increasing use of drones in various industries, from agriculture to logistics. The Chinese government has been actively promoting this sector, recognizing its potential to drive economic growth and create new job opportunities.
Market Potential
The market potential for the low-altitude economy is substantial. As technology continues to evolve, more applications for drones and other low-altitude equipment are being discovered. This sector is expected to contribute significantly to the economy in the coming years, with the potential to disrupt traditional industries and create new business models.
Conclusion
The half-year reports of public companies reveal a promising outlook for both the home appliances sector and the low-altitude economy. The Trade-in for New policy has successfully stimulated consumer interest in home appliances, while technological advancements and supportive regulations are driving the growth of the low-altitude economy. As these sectors continue to expand, they are expected to play a crucial role in the overall economic development of the country.
The release of these reports is a testament to the dynamic nature of the Chinese economy, showcasing the adaptability and resilience of its businesses. As the country continues to navigate the complexities of global economic challenges, the growth in these sectors offers a glimpse into the future of China’s economic landscape.
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