outstanding performance in China and overseas

Haier Smart Home publishes figures for financial year 2023: outstanding performance in China and overseas

• Total Revenue of RMB 261.43 billion (previous year: RMB 243.58 billion (restated))
• Net Cash Flow increased by 24.7% to RMB 25.26 billion
• Proposal to increase the dividend payout ratio for financial year 2023 to 45%

Qingdao / Shanghai / Hong Kong / Frankfurt, 27 March 2024 - Haier Smart Home Co., Ltd. ("Haier Smart Home" or "the Company", D-share 690D.DE, A-share 00690.SH, H-share 06690.HK), today published its annual report for the year 2023. The Company continued its positive performance in the reporting year and achieved a YoY growth in revenue of 7.3% with revenue amounting to RMB 261.43 billion. Net profit attributable to the owners of the parent company amounted to RMB 16.60 billion, which corresponds to an increase of 12.8% compared to the previous year. The net cash flow arising from operating activities was at RMB 25.26 billion, representing a YoY growth of 24.7%.

Casarte continues to increase its market shares thanks to innovation in brand and products

Haier´s premium brand Casarte maintained its leading position in the high-end appliance market also in 2023. Casarte increased its market shares in China in various business segments in the premium market: according to GfK China Market Monitor, Casarte recorded a retail sales share of 50% in the market of refrigerators priced above RMB 15,000, of 84% in the market of washing machines priced above RMB 10,000 and of 28% in the market of air conditioners priced above RMB 15,000.

Moreover, Haier Smart Home continued to increase its market shares of its top ranked refrigerator and washing machine segments regardless that the home appliance market did not fully recover in 2023 as expected. In China, Haier´s market share of refrigerators increased in fact to 45.2%, meanwhile the market share of washing machines climbed up to 47.5%. Also Haier’s air conditioning segment achieved an increase in revenue and profit in the reporting year with a market share in China of 37% for high-end products priced RMB 10,000 or above. Furthermore, the air-conditioning business reported an increase of the operating profit margin by 1.4 percentage points thanks to a 20% growth of heat pump business, in which the Company has also been unleashing its potential.

Haier Smart Home has incorporated Sustainability and ESG into its Corporate Strategy and production, aiming to be an active part of the “green revolution”. That´s why the Company, in the reporting year, further developed its business in the smart building sector by providing smart low-carbon building products such as solutions for heat pump energy, energy management and building intelligent control.

Company’s overseas business grew by 7.6% 

Haier Smart Home's overseas revenue amounted to RMB 136.41 billion in 2023, achieving better growth than the industry average in many countries thanks to its ongoing successful premium branding strategy.

In the European market, Haier Smart Home reported the fastest market growth for eight consecutive years with a YoY revenue growth of 23.93% in 2023 notwithstanding the industry’s decline of 4%.

As already announced in Q3 2023, Haier Smart Home laid out the eco-park in Egypt and the kitchen appliance factory in Pakistan in the reporting year. With the completion of such layouts, Haier Smart Home will have more production capacity, create more product solutions that better meet the needs of local users, and further expand the potential of overseas markets.

Dividend distribution ratio to be increased to 45%

For financial year 2023, the Board of Directors proposed to increase the dividend payout ratio to 45%. The Company also formulated a shareholder return plan for financial years 2024-2026, which will gradually increase the payout ratio to 50% and more (particularly for financial years 2025 and 2026). This proposal is still subject to the approval of the forthcoming Annual General Meeting in June. It underscores the Company´s stable business operations, its profitability and the great importance that Haier attaches to its shareholders, thereby enhancing the market's confidence in the Company.

Expense rate further optimized by 0.23 percentage points

Digital transformation has become an important means for Haier Smart Home to enhance its development momentum, effectively improving the Company's marketing capability, R&D efficiency, cost competitiveness and turnover efficiency. Taking marketing capability as an example, Haier Smart Home has improved the efficiency in distribution management, inventory management, and store operation by using digital tools in distribution and store operation systems. The overall increase of retail sales for the stores that completed the digitalization of their marketing system was 22% in the reporting year.

Smart Home Living segment further expanded with premium brand SAN YI NIAO (former Three-Winged Bird)

In September 2020, Haier Smart Home launched its exclusive smart home scenario brand SAN YI NIAO. After only three years, SAN YI NIAO was able to add nearly 1,500 new stores in China, enhancing the sales efficiency of complete product sets through localized scenario customization and professional delivery services. In 2023, the retail sales of SAN YI NIAO increased by 84% YoY, with complete scenario sets accounting for over 60% of the sales.

Haier Smart Home has been able to become a first-class smart home appliance enterprise worldwide by using a strong global branding and introducing smart home technologies to create new business opportunities, like smart buildings. The Company is well prepared for its future development through the implementation of different strategic measures such as the development of product R&D, enhancement and integration of industrial chain, and expansion of sales channels, with a view to laying a solid foundation for its long-term and stable development.

The annual report 2023 as at 27 March 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 as well as 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, 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.