Subsidies leverage demand+profit to guarantee the core consumer electronics standard ushered in dual catalysis

The Zhitong Finance App learned that on December 30, the National Development and Reform Commission and the Ministry of Finance issued a notice on implementing large-scale equipment renewal and consumer goods trade-in policies in 2026.

According to the notice, trade-in of home appliances is supported. Individual consumers buy products with Class 1 energy efficiency or water efficiency standards in 6 categories of household appliances, such as refrigerators, washing machines, televisions, air conditioners, computers, and water heaters, and are subsidized at 15% of the product's sales price. Each consumer can subsidize 1 item of each type of product, and the subsidy is not more than 1,500 yuan per item. Support the purchase of new digital and smart products. Individual consumers buy 4 types of products such as mobile phones, tablets, smart watches, bracelets, and smart glasses (the sales price of each item is no more than 6,000 yuan) and are subsidized at 15% of the sales price of the product. Each consumer can subsidize 1 item of each type of product, and the subsidy for each item is no more than 500 yuan. Support subsidies for the purchase of new smart home products (including home products suitable for aging). Specific subsidy categories and subsidy standards are independently and reasonably determined by the local authorities in line with actual conditions.

Industry insiders analyzed that judging from the economic effects, this is undoubtedly a dual engine for activating consumption and promoting industrial upgrading. Specifically, the subsidy policy favors Class 1 energy efficiency products and smart terminals, forcing enterprises to increase investment in R&D. For example, home appliance companies need to improve the efficiency of core components such as compressors and chips to meet energy efficiency standards, while digital manufacturers need breakthroughs in AI algorithms and sensor integration to enhance product competitiveness. This virtuous cycle of “subsidies - innovation - market expansion” will drive the transformation of Chinese manufacturing to high-end and intelligent manufacturing.

The Changjiang Securities electronics team believes that the consumer electronics sector has been affected by recent increases in storage prices, and the expectations for sales volume and profitability in '26 are too pessimistic. The continuation of the subsidy policy boosts terminal demand on the one hand, and gives brand customers room for price adjustments, which is conducive to safeguarding profits in the parts sector.

Key recommendations:

Terminal brands: Xiaomi Group (01810), Lenovo Group (00992), Voice Holdings (688036 .SH)

AI glasses: Goertek (002241 .SZ), Longqi Technology (603341 .SH), Hengxuan Technology (688608.SH), Baiwei Storage (688525 .SH), Haopeng Technology (001283 .SZ)

Fruit chain innovation: Lixun Precision (002475.SZ), Lansi Technology (06613), Lingyi Intelligent Manufacturing (002600 .SZ), BYD Electronics (00285), Xinwei Communications (300136.SZ)