Haier Smart Home announces financial results for Q1 2023: revenue and profit growth driven by strong performance in overseas market and digitalization

Haier Smart Home announces financial results for Q1 2023: revenue and profit growth driven by strong performance in overseas market and digitalization

• Total revenue increases by around 8.0% YoY
• Revenue in overseas markets records growth of 11.3% YoY
• Casarte maintains market leadership in high-end brand in China

Qingdao / Shanghai / Hong Kong / Frankfurt, 27 April 2023 - 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 figures for the first quarter 2023.

Haier Smart Home achieved total revenue of RMB 65.1 billion, representing an increase of around 8.0% YoY. Net profit attributable to the owners of the parent company was RMB 4.0 billion, representing a YoY increase of 12.6%. Haier was able to further optimize its expense ratios due to further digitalization with a YoY decrease of 0.4 percentage points of the sales expense ratio (Q1 2023: 13.6%) and of 0.1 percentage points of the administrative expense ratio (Q1 2023: 3.6%). Moreover, in the reporting period, the Three-Winged Bird digital platform reported increase in orders by 40.9% YoY.

Casarte's rapid expansion in overseas market

With its scenario-based marketing strategy and expanding overseas market share, Casarte has gradually established its influence in the global high-end home appliance market. In the Chinese market, Casarte's market share for refrigerators and washing machines priced over RMB 10,000 reached an impressive 40.0% and 86.3%, respectively, meanwhile the market share for air conditioners priced over RMB 15,000 reached 29.2%.

The brand Casarte also expedited its efforts to diversify its product portfolio with new product categories such as dishwashers and dryers, aimed at driving new growth opportunities for the company. In addition, Casarte has been actively expanding into new markets: after Europe and Thailand, the brand entered also Pakistan in January 2023.

Launch of more high-end products in the overseas market drives double-digit growth

In the reporting period, the Company achieved double-digit growth in the overseas market by launching more high-end products, outperforming its peers despite declining industry demand since the beginning of 2023. This growth can be attributed to various measures implemented by the Company, such as a high-end brand building strategy, establishment of a digital terminal network system, and provision of smart home solutions tailored to local users' needs. In Europe, revenue from high-end brands increased by 42.0%. In North America, the Company won the IoT Breakthrough award "Annual Smart Home Appliance Company" for the fifth year in a row thanks to smart-product transformation. In Australia and New Zealand, the Fisher & Paykel  (FPA – New Zealand high-end white goods manufacturer, Haier´s subsidiary) brand built-in refrigerator has achieved a market share of over 50.0%, consistently ranking as the TOP 1 through high-end and scenario-based transformation. Furthermore, Haier Smart Home has been actively strengthening its new industry layout in the overseas market to create new opportunities for growth. In the North American market, the Company has formed a professional team for developing new businesses such as recreational vehicles, air conditioners, pipeline machines, and multi-connected machines.

Haier's Three-Winged Bird has fueled growth through competitiveness

Haier's Three-Winged Bird, the exclusive smart home scenario brand, has experienced accelerated growth through its pioneering use of a complete set of home appliance design tools, digital store capabilities, and digital platforms. The upgraded Three-Winged Bird digital store system has provided intelligent and scenario-based design options. On the digital platform, Haier's Three-Winged Bird offers users a convenient one-stop scenario solution, resulting in a significant 33.0% increase in Q1 2023 in terms of interactive users on the Smart Home App. The availability of over 70,000 localized scenario solutions in national stores has enabled personalized services and contributed to a YoY increase of 40.9% in orders.

Strengthening global business operations and enhancing core supply chain design

In China, the layout of the core supply chain competitiveness was enhanced to boost Company´s competitive advantage. The air conditioner compressor production in Zhengzhou, for example, is set to manufacture the industry's most advanced frequency conversion compressor in the future, which will be applied in Haier's world-class variable flow air conditioning products, accelerating Haier's product upgrade in the air conditioning sector. In the reporting period, the Company continued to add manufacturing capabilities to support overseas business and facilitate the continuous development of global high-end brands. The Company is bolstering its capacity for conducting business worldwide and will stick to the localized production and sales to meet user demands with customized products.

Haier is poised to enter a new stage of development by improving global business operations with sustained digitization enhancing production efficiency and high-end and global layout expanding into new scenarios.

The Q1 report 2023 as at 31 March 2023 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.