Haier Smart Home publishes financial figures for HY 2023: continued revenue and profit growth – Overseas business outperforms industry

Haier Smart Home publishes financial figures for HY 2023: continued revenue and profit growth – Overseas business outperforms industry

• Total revenue of RMB 131.63 billion (H1 2022: RMB 121.64 billion (restated))
• Net Profit growth of 12.6% YoY
• More sustainable smart solutions on offer

Qingdao / Shanghai / Hong Kong / Frankfurt, 30 August 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 financial report for the first half year 2023. The Company was able to maintain its revenue and profit growth pace by improving its operational efficiency and enhancing its digital transformation. In the first half of 2023, Haier Smart Home achieved a revenue of RMB 131.63 billion, representing an increase of 8.2% YoY. Net profit attributable to the shareholders of the parent company amounted to RMB 8.96 billion, up 12.6% YoY.

Increased market share in many product categories – Casarte as leader of the high-end market

Haier Smart Home has continued to grow in various product categories by remaining user-oriented, continuing to focus on retail transformation and expanding market channels. Haier’s refrigerators and washing machines have consistently increased their offline market share. In the first half of 2023, the market share of refrigerator raised to 45.1% YoY and that of washing machines increased to 47.1% YoY. Meanwhile the market share of air conditioners experienced a net increase of 0.6 percentage points. Moreover, Haier’s kitchen appliances have steadily expanded their market share to become one of the top 3 brands in the industry (according to China Market Monitor Co., Ltd.).

In the reporting period, Casarte's offline retail market share increased from 12.8% to 14.2%, maintaining its leading position in the high-end market, with a market share of 39.4% and 82.9% respectively for refrigerators and washing machines priced above RMB 10,000 and a market share of 29.2% for air conditioners priced above RMB 15,000, in the Chinese market.

SAN YI NIAO 's transaction volume boosted by scenario-based solutions

Haier´s SAN YI NIAO (former Three-Winged Bird), the exclusive smart home scenario brand, has launched the “Nest for Thousands of Families” initiative, providing one-stop smart home solutions to 2,149 residential districts across China. At the core of its success is the “Nesting Design Platform”, an interior design tool developed by SAN YI NIAO for Haier´s designers and clients for home appliance product suites. The platform offers functions such as smart quick mix-and-match, 3D rendering design, and VR for water and electricity pipelines. In the first half of 2023, the “Nesting Design Platform” has introduced 105 new sets of scenario-based solutions which have been implemented in 2,131 SAN YI NIAO stores across the country, leading to a surge in scenario-driven transaction volume.

Besides offering users one-stop solutions for smart home customisation, Haier Smart Home has also created a range of ecosystem brands worldwide, such as the AQUA community laundry, the Internet of Clothing, and the Internet of Food, thereby providing global users with tailored smart living solutions for clothing, food, housing, and entertainment. In overseas markets, AQUA community laundry has enhanced cross-sector collaboration with resource providers to foster mutually beneficial and environmentally sustainable outcomes. Currently, AQUA community laundry holds the largest market share in Japan, and has established presence in countries such as Thailand, Vietnam, and China, with nearly 12,000 stores across the globe.

Overseas business achieved growth of 8.8% and outperformed the industry

Despite challenges such as the slowdown in overseas demand, Haier Smart Home recorded revenue in overseas markets of RMB 66.92 billion, in the first half of 2023. This represents a growth of 8.8% compared to the same period of the previous year and is the result of leveraging local advantages such as local R&D, capitalising on opportunities for energy-efficient products, and accelerating the expansion into new growth hubs.

Haier´s performance in various overseas markets outpaced the industry. Specifically, despite a 3.3% decline in core appliance shipments in the American market, Haier Smart Home's revenue grew by 4.5%. In the European market, Haier Smart Home achieved revenue growth of 29.6% despite an 8.1% decline in industry sales volume. Revenue also grew by 23.5% in South Asia and 6.3% in Southeast Asia. In the Japanese market, where the freezers, refrigerators and washing machines sector declined by 9.5%, Haier Smart Home achieved a revenue increase of 6.0%.

Enhancing efficiency through digital transformation: expense ratio further optimised by 0.3 percentage points

In the first half of 2023, Haier Smart Home has continued to strengthen its digital transformation across all business processes including R&D, manufacturing, supply chain, and logistics, leading to increased operational efficiency and reduced costs. The Company reduced its expense ratio by 0.3 percentage points, in the first half of 2023. Over the past three years, Haier Smart Home has achieved an overall expense ratio optimisation of 1.6 percentage points.

The positive figures reported in the half-year report 2023 confirm Haier´s strong business resilience and growth potential. Moreover, the Company was listed in the Fortune Global 500, the annual list of the world’s largest companies, for the sixth year in a row. Haier Smart Home's ability to accelerate the adoption of smart homes worldwide by focusing on a tailored offering provides the Company with a competitive advantage and increased profitability.

The half-year report 2023 as at 30 June 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.