Industry insiders have suggested the company's move to diversify its product range has been to offset losses and stalled sales in its core air conditioner business.

Sources close to the company have indicated Gree's sales were down 13.4 percent year-on-year to 50.1 billion yuan in the first half of the year, with net profits only marginally up by 0.05 percent from a year earlier, to 5.7 billion yuan.

Sales of the company's air conditioners, the backbone of the business since launching in 1991, dropped 17.22 percent year-on-year to 41.9 billion yuan in the first six months, according to the company's latest figures.

Dong attributed the drop to an adjustment in air conditioner pricing and large rebates being offered to its sales agents.

"The prices of our products were cut by more than 10 percent, and for some high-end varieties they were even reduced by more than 20 percent," Dong said.

The rising cost of raw materials, too, contributed significantly to the weaker results, she said.

"But we are still optimistic about the market. Our strong core technologies and increased investment in research and development will help us produce more smart products," Dong said.

Liu Shuwei, a researcher with the Beijing-based Central University of Finance and Economics, said Gree's transformation from relying on a single product for business growth to manufacturing more will help it meet the growing demand for smarter electrical products in the future.

"The losses were mainly due to a downsized air conditioner market," Liu said.

"The company now needs to expand its newest technologies into other products which will integrate well with its main product lines."