2023-09-05-海尔-海尔智家股份有限公司2023年半年度报告（英文版）_262页_1mb

Summary of Haier Smart Home Co., Ltd. 2023 Interim Report

Core Content

Haier Smart Home Co., Ltd. (hereafter referred to as the "Company") released its 2023 Interim Report, covering the period from January to June 2023. The report is unaudited and includes key financial data, business performance, and strategic developments. It outlines the Company’s global presence, its business segments, and its key financial indicators, while also addressing corporate governance, environmental and social responsibilities, and risk warnings.

Main Points

1. Corporate Governance and Legal Information

• The Company’s Board of Directors and senior management are responsible for the content of the report.
• The report is certified as true, accurate, and complete by Li Huagang (legal representative), Gong Wei (Chief Financial Officer), and Ying Ke (accounting department head).
• There are no instances of non-operational fund occupation by controlling shareholders or external guarantees provided in violation of procedures.
• No directors are unable to warrant the truthfulness, accuracy, and completeness of the report.

2. Definitions of Key Terms

• CSRC: China Securities Regulatory Commission
• SSE: Shanghai Stock Exchange
• GEA: GE Appliances, a subsidiary of the Company that owns the household appliances assets and business of General Electric Group
• FPA: Fisher & Paykel Appliances, a subsidiary of the Company known as the national appliance brand of New Zealand
• Candy: An Italian international professional appliances manufacturer, now a wholly-owned subsidiary of the Company
• CMM: China Market Monitor Co., Ltd., an authoritative market research institute in the home appliance sector
• Rendanheyi (人单合一): A management model emphasizing the empowerment of employees and value creation for users
• COP: Cooling (heating) capacity to power ratio, a measure of energy efficiency in HVAC systems

3. Company Information

• Chinese Name: 海尔智家股份有限公司
• Chinese Short Name: 海尔智家
• English Name: Haier Smart Home Co., Ltd.
• English Short Name: Haier Smart Home
• Legal Representative: Li Huagang
• Registered Address: Haier Park, Laoshan District, Qingdao City
• Business Address: Haier Science and Technology Innovation Ecological Park, Laoshan District, Qingdao City
• Website: https://smart-home.haier.com/cn/
• Contact Information:
  • Board Secretary: Liu Xiaomei
  • Securities Affairs Representative: Liu Tao
  • Company Secretary (D/H shares): Ng Chi Yin, Trevor
  • Tel: 0532-88931670 (China), +852 2169 0000 (Hong Kong)
  • Email: finance@haier.com (China), ir@haier.hk (Hong Kong)

4. Share Information

• The Company has A-shares, D-shares, and H-shares.
• A-shares: Listed on the Shanghai Stock Exchange, stock code: 600690
• D-shares: Listed on the Frankfurt Stock Exchange, stock code: 690D
• H-shares: Listed on the Hong Kong Stock Exchange, stock code: 6690
• No changes in share structure or related information during the reporting period.

5. Key Financial Data

• Operating Revenue: RMB 131,626,581,506.56 (up 8.21% YoY)
• Net Profit (attributable to shareholders): RMB 8,963,875,999.84 (up 12.62% YoY)
• Net Profit after non-recurring items: RMB 8,603,977,764.58 (up 14.86% YoY)
• Net Cash Flows from Operating Activities: RMB 6,790,530,462.54 (up 13.84% YoY)
• Net Assets (attributable to shareholders): RMB 96,681,175,780.71 (up 3.45% YoY)
• Total Assets: RMB 246,302,105,777.51 (up 4.39% YoY)

6. Key Financial Indicators

• Basic Earnings per Share: RMB 0.97 (up 14.12% YoY)
• Diluted Earnings per Share: RMB 0.96 (up 12.94% YoY)
• Basic Earnings per Share after non-recurring items: RMB 0.93 (up 16.25% YoY)
• Weighted Average Return on Net Assets: 9.16% (down 0.07% YoY)
• Weighted Average Return on Net Assets after non-recurring items: 8.80% (up 0.09% YoY)

7. Non-Recurring Profit or Loss Items

• The total non-recurring profit or loss for the reporting period is RMB 359,898,235.26.
• Key non-recurring items include:
  • Profit and loss on disposal of non-current assets: -RMB 21,886,978.96
  • Government subsidies: +RMB 409,863,390.47
  • Fair value changes of financial assets: +RMB 31,271,562.35
  • Other non-operating income and expenses: +RMB 30,661,194.26
  • Reduction by income tax: -RMB 77,663,165.02
  • Effect of minority equity interest (after tax): -RMB 12,347,767.84

Business Segments and Market Performance

1. Smart Home Business in China

• The Company provides a full range of smart home solutions through Haier Smart Home APP and SAN YI NIAO APP, supported by offline experience centers.
• Key segments:
  • Internet of Food: Refrigerators, freezers, kitchen appliances, and smart kitchen solutions.
  • Internet of Clothing: Washing machines, tumble dryers, and smart laundry care services.
  • Internet of Air: Air conditioners, fresh air systems, and comprehensive air quality solutions.
  • Internet of Water: Electric and gas water heaters, water purifiers, and smart water management systems.

2. Overseas Home Appliance and Smart Home Business

• The Company operates in over 200 countries and regions, including North America, Europe, South Asia, Southeast Asia, Australia and New Zealand, Japan, and the Middle East and Africa.
• Key acquisitions:
  • Sanyo Electric Co., Ltd. (Japan and Southeast Asia) in 2015
  • GE Appliances in the US in 2016
  • Fisher & Paykel in 2018
  • Candy in 2019
• The overseas business has entered a promising growth phase, with a global multi-brand, cross-product, and cross-regional presence.
• Market Share (2021):
  • Asia: 21.4%
  • America: 15.6%
  • Australia and New Zealand: 12.8%
  • Middle East and Africa: 7.5%
  • Europe: 8.3%

3. Other Businesses

• Includes small home appliances, channel distribution, and other related services.
• Small home appliances are designed by the Company and produced by third-party manufacturers.
• Channel distribution services support the sale of televisions and user electronics for Haier Group and third-party brands.

Industry Overview (First Half of 2023)

• China Home Appliance Market:

  • Marginal growth in the first half of 2023, with total retail sales reaching RMB 398.2 billion, up 4.4% YoY.
  • Air Conditioning Industry: Growth led the market, with retail volume up 18.8% and sales up 19.5%.
  • Refrigerator Industry: Retail volume down 2.6%, but sales up 5.2% due to product mix upgrades.
  • Washing Machine Industry: Retail volume down 6%, sales down 3.2% due to replacement demand lag.
  • Tumble Dryer Industry: Rapid growth with sales up 14.7%.
  • Kitchen Appliance Industry: Sales up 1.90% with integrated stoves showing slight decline (0.40%).
  • Water Heater Industry: Sales up 6.0% due to increased demand for gas water heaters.
  • Water Purifier Industry: Sales up 8.0% due to offline traffic recovery and product upgrades.

• Market Trends:

  • Commodity prices declined compared to the same period last year.
  • Market competition became more rational with stable pricing.
  • The high-end market grew due to quality consumption and indulgent spending, while the low-end market also expanded.

ESG Recognition and Awards

• Haier Smart Home was listed among the Top 500 World's Companies in August 2023.
• Ranked as the 2023 World's Most Admired Companies by Fortune Magazine.
• Recognized as the only non-US incorporated company in the home appliance industry and the only IoT ecosystem brand in the BrandZtm Top 100 Most Valuable Global Brands in 2022.
• Included in the Fortune's first China ESG Impact list and ranked top in the industry.
• Recognized by MSCI ESG rating BBB and Wind ESG rating AAA, both leading in China.
• Selected into the three major ESG indices of the Hang Seng Index: HSI ESG Enhanced Index, HSI ESG Enhanced Select Index, and HSCEI ESG Enhanced Index.

Conclusion

Haier Smart Home continues to lead in the global home appliance industry, leveraging its Rendanheyi (人单合一) model to drive innovation and user-centric value. With a strong presence in both domestic and international markets, the Company has shown steady growth in operating revenue and net profit, supported by its diverse product portfolio and strategic acquisitions. The report highlights the Company's commitment to sustainability, ESG performance, and smart home solutions, reinforcing its position as a global leader in the industry.