Gree Electric Appliances, Inc. of Zhuhai reported its Q3 2025 financial results on October 30, revealing a mixed performance. The company posted revenue of 137.18 billion yuan for the first three quarters, marking a 6.5% year-on-year decline, while net profit attributable to shareholders dropped 2.27% to 21.46 billion yuan. The third quarter saw sharper declines, with revenue falling 15.09% to 39.86 billion yuan and net profit down 9.92% to 7.05 billion yuan.

Despite the earnings pressure, Gree maintained its reputation for shareholder generosity, proposing an interim dividend of 10 yuan per 10 shares (tax inclusive), totaling 5.59 billion yuan. This payout represents 26.02% of its nine-month net profit. Historically, Gree has distributed 147.64 billion yuan in cumulative dividends since its 1996 listing.

The announcement reignited comparisons with rival Xiaomi Corp., which has never paid dividends since its 2018 IPO. This contrast was highlighted by Gree Chairperson Dong Mingzhu's previous public remarks questioning Xiaomi's shareholder returns. In March, Dong had implicitly criticized companies that "become richest through stock speculation without rewarding investors," prompting speculation about targeting Xiaomi's Lei Jun.

Among China's appliance giants, Gree ranked third in revenue but second in net profit behind Midea Group, while leading with a 28.44% gross margin. The company demonstrated R&D strength with two compressor technologies receiving "internationally leading" certifications and launched innovative products including photovoltaic home ACs and AI-enabled appliances.

Internationally, Gree expanded its Southeast Asian presence, where self-branded exports now account for 80% of sales. Domestically, its "Dong Mingzhu Healthy Home" stores exceeded 1,000 locations nationwide, promoting smart home ecosystems beyond its core AC business.

Analysts attribute Gree's sales pressure to its premium pricing strategy amid intense AC market competition and ongoing channel reforms. The property market slowdown also impacted appliance demand. CICC noted Gree's 60 new regional subsidiaries established in Q3 reflect ongoing distribution network restructuring.

The dividend policy divergence sparked online debates, with some investors praising Gree's commitment to shareholders while others argued growth-stage companies like Xiaomi should reinvest profits. Market observers continue monitoring Gree's balance between brand positioning and market share in China's cooling appliance sector.