(Yicai) Sept. 18 -- Home appliance exports from China jumped 14.7 percent in the first eight months from a year ago, driven mainly by Chinese companies' global expansion and higher external demand, which, however, may weaken.

Outbound shipments of home appliances reached USD581 million in the eight months ended Aug. 31, according to data from China's General Administration of Customs. In comparison, such exports rose 3.8 percent last year from 2022.

Revenue from overseas markets has become a significant source of income for several Chinese home appliance manufacturers in the first six months of this year, according to their earnings reports.

Haier Smart Home's net profit jumped 16.3 percent to CNY10.4 billion (USD1.5 billion) in the first half from a year ago, while its operating revenue rose 3 percent to CNY135.6 billion (USD18.8 billion). Its overseas income climbed 3.7 percent to account for more than half of its total, while that from the domestic market rose only 2.3 percent.

Xinbao Electrical Appliances, a leading exporter of small home appliances, saw its net profit rise 11.2 percent to CNY442 million (USD62.3 million), while its operating revenue jumped 22 percent to CNY7.7 billion (USD1.1 billion). Its income from overseas markets surged more than 70 percent.

Besides overseas markets entering a restocking cycle this year, Guangdong Bangze Chuangke's core growth driver was its factory in Vietnam, which has helped it secure more external orders, Chairman Xu Ning told Yicai. 

While the home appliance market appears relatively normal, the boost from external demand for domestic manufacturers may weaken, Xu pointed out. Tariff risks and fluctuation in the Chinese yuan exchange rate are the main concerns, he noted.

Export growth to Europe and the United States was insignificant in the first half, Shi Yonghong, vice president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, previously said to Yicai. 

However, exports to major developing markets went on growing, especially in regions where Chinese home appliance makers have invested, such as Vietnam, India, and Mexico, Shi noted, adding that in these markets, China exports a significant amount of intermediate goods like components.

According to many industry insiders, the peak seasons for home appliances have shortened due to pressures caused by global economic downturns.

The Shanghai Containerized Freight Index fell 7.9 percent to 2,510.95 points, figures released by the Shanghai Shipping Exchange showed on Sept. 13. This continues a downward trend after an 8 percent drop on Sept. 6, indicating a relatively weak demand.

Exporters of home appliances without overseas factories will face increasing challenges, Xu said. Christmas typically boosts orders in the fourth quarter, but some peers have already felt that the market is slightly weaker than a year ago, he added.

Editor: Martin Kadiev