Steady Growth of Net Profit Margin and Further International Expansion

Haier Smart Home with Strong Half-Year Financials: Steady Growth of Net Profit Margin and Further International Expansion

• Total Revenue of RMB 135.62 billion (H1 2023: RMB 131.63 billion)
• Net Cash Flow from operating activities rose by 15.14% to RMB 7.82 billion
• International expansion with strategic focus on local markets

Qingdao / Shanghai / Hong Kong / Frankfurt, 27 August 2024 – Haier Smart Home Co., Ltd. ("Haier Smart Home" or "the Company"), a global leader in smart home solutions (D-share 690D.DE, A-share 600690.SH, H-share 06690.HK), today announced its financial results for the first half year 2024. Haier Smart Home achieved total revenue of RMB 135.62 billion during the first half year 2024, representing a YoY growth of 3.03%. The net profit attributable to the parent company amounted to RMB 10.42 billion, a YoY growth of 16.26%. In the reporting period, the profit exceeded RMB 10 billion with a net profit margin of 7.68%, representing a YoY increase of 0.87percentage points.

Growth in Chinese Market Thanks to Multi-Brand Synergies
Despite the downward trend of the white good market, Haier Smart Home was able to increase its domestic revenue in China and improve its users’ experience by strengthening the synergy between its Haier, Casarte and Leader brands, improving tailormade scenarios and delivering capability of the SAN YI NIAO brand.

With "Nebula Series", "Tranquility Series" and other product lines, the premium brand Casarte has been leading the way in integrating smart home appliance products into the household living style. Casarte´s market share in premium markets continued to grow in the first half year 2024. In China, Casarte´s refrigeration market share in retail sales of products priced above RMB 10,000 was 39.5%; the market share of front-load washing machines in retail sales of products priced above RMB 10,000 was 82.3%, while the one of air conditioners priced above RMB 15,000 was 32%.

Haier´s Innovation Leads to Sustainable Growth
Haier brands offer its users solutions with technological innovation. For example, the noise-reduced washer and dryer set of Yunxi series has increased the share of RMB 4K–8K priced Haier washing machines by 2.6 percentage points. Haier air conditioners, meeting the users´ demand for healthy and smart products, have improved their domestic market share in the reporting period by 0.8 percentage points.

Moreover, Leader brand has captured the needs of young users through product innovation and marketing strategies. Leader has launched popular products such as Vitality Series air conditioners and Cloud Series washing machines. In the first half year 2024, the retail sales of the brand in China increased by 31%.

Haier Smart Home continued its ESG progress during the first half year 2024. Since Q3 2023, Haier Smart Home has been rated with the highest MSCI ESG rating in the domestic industry (ESG Rating of A). In line with the company's sustainability values, Haier Smart Home has actively implemented the national "exchange the old for new one" program to help more families replace their home appliances and promote proper e-waste management.

Present and Future Overseas Expansion
In the first half of 2024, the market dynamics in overseas markets were different. On the one hand, the demand in developed markets such as Europe, the United States and Japan was under pressure due to macroeconomic conditions; meanwhile emerging markets such as Southeast Asia, South Asia and Middle East & Africa sustained a rapid growth. With the launch of high-end products, optimizing supply chain management and promoting organizational transformation, Haier Smart Home was able to achieve a higher share in developed countries and high growth in emerging markets. In the reporting period, Haier Smart Home recorded a total overseas revenue of RMB 70.82 billion, representing a YoY growth of 3.7%.

In the USA, Haier Smart Home’s market share grew by 0.7 percentage points. In Europe, Haier gained 0.1 percentage points, meanwhile the market share in Oceania increased by 2.9 percentage points. In South Asia, revenue increased by 9.9%; In Southeast Asia, revenue was up by 12.4%; In Middle East & Africa, revenue improved by 26.8%.

In May this year, Haier Egypt Ecological Park opened, with a total capacity to produce more than 1.5 million units per year, supporting Haier Smart Home's growth and brand leadership in Egypt, Middle East & African markets. In July, Haier Smart Home announced its intention to acquire Electrolux South Africa´s water heater business, which would help Haier Smart Home expand into the South African market for refrigerators, washing machines and other white appliance goods. In August, Haier Smart Home held a groundbreaking ceremony at the Chonburi Air Conditioning Industrial Park in Thailand, with a planned total annual capacity of 6 million units, which when completed will be the largest air conditioner production base for Chinese brands in Thailand and Southeast Asia. With the completion of these facilities, Haier Smart Home will further expand its overseas market potential.

Expense rate further optimized by 0.8 percentage points
Haier Smart Home's net profit margin increased from 6.54% in the first half of 2022 to 6.81% in the first half of 2023, and then to 7.68% in the first half year 2024.

The achieved improvement in profitability was also a result of Haier Smart Home's continuous efforts to digitize its entire value chain. Through its digital transformation, Haier Smart Home improved its competitiveness in aspects such as user experience, research and development, costs and expenses. For example, Haier Smart Home  upgraded its digital sales operation integrating Douyin (TikTok in China) into its end-user resource platform.

Amidst the dynamic changes in industry demand and the increasingly fierce competitive environment, Haier Smart Home is committed to continuously optimize user experience and improve operational efficiency by relying on its leading advantages in technology, scale and services, actively responding to challenges through change and innovation, and achieving steady performance growth.

The H1 report 2024 as at 30 June 2024 is available online at https://smart-home.haier.com/en/.

IR Contact:
Haier Smart Home Hong Kong
T: +852 2169 0000
Email: ir@haier.hk

Press Contact:
CROSS ALLIANCE communication GmbH
Sara Pinto
Sven Pauly
pi@crossalliance.de
T: +49 (0) 89 1250903 35
 

About Haier Smart Home Co., Ltd.:

Haier is one of the world’s leading manufacturers of household appliances with a focus on smart home solutions and customized production. Haier Smart Home Co., Ltd. develops, produces and distributes a wide range of household appliances. These include refrigerators, freezers, washing machines, air conditioners, water heaters, kitchen appliances, small household appliances, and an extensive range of intelligent household appliances. The Company distributes its products through leading household brands such as Haier, Casarte, Leader, Candy, GE Appliances, AQUA and Fisher & Paykel. Haier Smart Home Co., Ltd. has launched Smart Home Experiential Cloud in the Chinese market, which connects homes, users, enterprises and ecosystem partners, and facilitates the integration of Haier’s online, offline and micro-store businesses and supports user interaction to further optimize the user experience.