DGAP-News: Haier Smart Home: Revenue up 9.1% against the unfavorable trend in the first half of 2022 - Q2 results beyond expectations

Haier Smart Home: Revenue up 9.1% against the unfavorable trend in the first half of 2022 - Q2 results beyond expectations

Qingdao / Shanghai / Hong Kong / Frankfurt, 29 August 2022 - Haier Smart Home Co., Ltd. ("Haier Smart Home" or "the Company", stock code: 690D.DE, 600690.SH, 6690.HK), today published its figures for the first six months and the second quarter of financial year 2022.

• Revenue of RMB 121.86 billion (H1 2021: RMB 111.73 billion)
• Growth of profit attributable to parent company outperformed revenue growth
• Gross profit margin increased by 0.2 pp compared to H1 2021

The first half of 2022 was characterized by tough market conditions due to the resurgence of the COVID-19 pandemic, geopolitical instability, and volatile prices for raw materials. Nevertheless, Haier Smart Home recorded a robust revenue growth and a double-digit growth in net profit attributable to the parent company.

The Company generated revenue of RMB 121.86 billion, representing an increase of 9.1% over the same period last year. Net profit attributable to the owners of the parent company amounted to RMB 7.95 billion. This represents an increase of 15.9% compared to the same period last year. Net profit after deducting non-recurring profit or loss attributable to the parent company amounted to RMB 7.49 billion, up 19.5% YoY.

In the second quarter of 2022, the growth of revenue and profit was faster than in Q1 2022 with a revenue increase of 8.2% and profit growing by 16.5% compared to Q2 2021. This reflects the Company's strategic flexibility of its competitive advantage in coping with the complex market situation and its rapid adaptation to digital transformation.

Further reduction of expense ratio by 0.9 pp thanks to ongoing digital transformation

Haier Smart Home enhanced its efficiency by further focusing on its digital operation system characterized by end-to-end processes as the foundation, data as the core of the system, and value creation as the orientation. Specifically in terms of the digital operation system for users, in the reporting period, the Company was able to increase the number of users with retained data by 219% (11.4 million) compared to 2021. In terms of the digital R&D platform, Haier Smart Home accurately captured user needs and translated them into product definitions through innovative user research tools and methods, improving product differentiated competitiveness and user experience.

Benefiting from continuous digitalization during the year, selling expense ratio and administrative expense ratio amounted to 14.4% and 4.2%, representing a year-on-year optimization of 0.6 pp (percentage points) and 0.3 pp respectively. This also led to an increase of the Company's gross profit margin to 30.2%, up 0.2 pp YoY.

Casarte: air conditioner and kitchen appliance businesses maintained momentum of high growth

In the first half of 2022, Casarte, the Company's high-end brand, reported revenue growth of 20.8%. Casarte continued to rank first in China in the retail sales of refrigerators, washing machines and air conditioners in the high-end segment. Offline sales and distribution were actually affected by the pandemic control measures especially in the months of April and May but resumed in June, as restriction measures gradually relieved.

Casarte's kitchen appliance revenue increased by 46% compared with the same period of last year, and the proportion of Casarte's kitchen appliance revenue in domestic kitchen appliance revenue increased by 6.0 pp, reaching 27.1%.

According to AVC (All View Cloud: Chinese provider of big data applications and solutions in vertical fields), despite the fact that the volume and amount of air conditioners market both declined in the first half of 2022, Haier Smart Home was the only Company to record a growth among the TOP 3, and the highest growth in the industry. Moreover, the share of air conditioners in high-end market reached 31.2%, ranking first in the industry.

Overseas business grew against a downward trend: operating profit up 13.0% and revenue of high-end brand in North America up by more than 40%

Despite numerous challenges such as high inflation and high energy prices, the Company focused on the acceleration of the expansion of the local supply chain and was able to realize in the overseas market revenue of RMB 61.48 billion in the first half of 2022, representing an increase of 8.0% compared to H1 2021. Operating profit amounted to RMB 3.63 billion, up 13.0% compared to H1 2021, while the operating profit margin recorded an increase of 0.2 pp over H1 2021.

Haier Smart Home's performance in revenue was outstanding among regional markets around the world. In the European market, Haier Smart Home seized the opportunities of the energy crisis and launched high-end and energy-saving products with differentiation, contributing to an increase of 12.7% in RMB revenue YoY, which reflected the strong adaptability of the Company and its competitiveness in a volatile market.

The upgrade of Three-Winged Bird led to an increase of 4.65 pp in the proportion of sales of high-end sets

In the first half of 2022, the sales volume of Haier Smart Home Internet Appliance increased by 14.5% YoY, while the number of scenario-based daily active users increased from 1.5 million to 2.8 million, representing a year-on-year increase of 88%.

In the first half of 2022, Haier Smart Home continued to focus on tailor-made products and continuously expanded the sales outlets, providing users with comprehensive and one-stop service solutions. In the reporting period, the Company opened more than 200 new Three-Winged Bird sales outlets.

The Management of Haier Smart Home stays positive about the further business development in the second half of the current year. The recent initiatives of the Chinese Government to promote green smart home appliances will create favorable conditions for the future development of the home appliance industry. Counting on strengths like the loyalty of its customers, especially for the high-end brand Casarte, and the strong adaptability of the Company even in challenging market conditions, Haier Smart Home is ready to further unleash its growth potential and surprising its customers with tailor-made digitized and more innovative products.

IR Contact:
Haier Smart Home Hong Kong
T: +852 2169 0000
Email: [email protected]

Press Contact:
CROSS ALLIANCE communication GmbH
Sara Pinto
Sven Pauly
[email protected]
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.