(Yicai Global) May 4 -- Shares of Gree Electric Appliances plunged by the exchange-imposed daily trading limit after the leading Chinese maker of home appliances reported weak earnings for the first quarter of this year and last year.

Gree [SHE: 000651] closed 10 percent down at CNY35.42 (USD5.13) a share today, paring the stock’s gain so far this year to 9.6 percent.

Net profit rose 2.7 percent to CNY4.1 billion (USD590 million) in the three months ended March 31 from a year earlier, the Zhuhai-based firm announced on April 28, before the five-day Labor Day holiday. Revenue edged up 0.6 percent to CNY35.5 billion (USD5.1 billion).

For the full year of 2022, Gree reported a net profit of CNY24.5 billion, up 6.3 percent from the previous year. Revenue rose 0.6 percent to CNY188 billion (USD27.4 billion).

The second and third quarters are usually the industry’s peak season, so Gree will likely improve its performance then, a source at the company told Yicai Global, adding that the company is still quite confident about the second half.

Midea Group, another Chinese home appliances giant, also reported sluggish performances for the two periods. First-quarter net profit rose 12 percent to CNY8 billion, according to the Guangdong-based firm’s earnings report released on April 28. Revenue gained 6.5 percent to CNY96.3 billion.

In the year ended Dec. 31, Midea’s net profit rose 3.4 percent to CNY29.6 billion from 2021, while revenue grew 0.7 percent to CNY345.7 billion.

Midea’s shares [SHE: 000333] ended little changed today, down 0.4 percent at CNY56.58. It has gained 9.2 percent to date in 2023.

“Gree and Midea achieved performance growth last year, reflecting their resilience,” Securities Daily reported, citing Zhang Jianfeng, secretary general of the China Household Electrical Appliance Association. “This year, the home appliance industry will usher in a recovery cycle, especially in the second quarter when white appliances enter the peak season.”

Editor: Futura Costaglione