Hisense Home Appliances Group Co.,Ltd. (00921) saw its share price decline nearly 4% in Hong Kong trading, last down 3.73% at HK$21.68 with turnover reaching HK$12.67 million.

The drop follows the company's release of its 2026 interim results, which showed total operating revenue of RMB 46.77 billion, a year-on-year decrease of 5.22%. Net profit attributable to parent company shareholders came in at RMB 1.66 billion, down 20.16% compared to the same period last year.

Breaking down the business segments, the HVAC (heating, ventilation, and air conditioning) division, which accounts for nearly half of the company's revenue, generated RMB 22.35 billion in income, a 5.66% decline year-on-year. Its gross margin stood at 24.24%, down 2.88 percentage points from the prior year. Meanwhile, the refrigerator and washing machine segment achieved 12.88% growth to reach RMB 17.38 billion, but its gross margin was only 16.81%, representing a 1.93 percentage point decrease.

In its interim report, the company acknowledged that its ability to respond to external pressures, including geopolitical disruptions and rising raw material prices, still requires further improvement.

According to a research note from Huatai Securities, the earnings pressure was primarily attributed to weak domestic demand, higher raw material costs, and foreign exchange losses. However, the brokerage noted several positive highlights, including growth in the refrigerator and washing machine segment, breakthroughs in high-value central air conditioning applications, and operational improvements at its SANVO (three-electric) business.