DGAP-News: Haier Smart Home announces first quarter 2022 financial results: solid operating business continues previous year's growth trend

Haier Smart Home announces first quarter 2022 financial results: solid operating business continues previous year's growth trend

- Revenue increased by 10% YoY

- Gross profit margin of 28.5%, up 0.05 pp YoY

- Casarte remains the leading high-end brand in China. Revenue up 32.3% YoY

Qingdao / Shanghai / Hong Kong / Frankfurt, 28 April 2022 - Haier Smart Home Co., Ltd. ("Haier Smart Home" or "the Company", stock code: 690D.DE, 600690.SH, 6690.HK), today published its Q1 2022 report.

Haier Smart Home reported a stable growth despite a challenging market environment, confirming the positive trend reported in the financial report 2021, published on 30 March this year. The Company achieved a revenue of RMB 60.25 billion in Q1 2022, up 10% YoY. The net profit attributable to the owners of the Company was RMB 3.52 billion. This reflects a growth of 15.1% compared to Q1 2021.

Casarte recorded high-growth trend with revenue increase by 32.3%

The home appliance market in China has shown great potential for expansion due to the increase of household purchasing power and a general positive sentiment on the market. This has led to more growth opportunities for high-quality home appliance products. In this context, Casarte, the high-end brand of Haier Smart Home for home appliances, continued to develop its competitive advantages from its products, distribution channels and marketing.

The high-end brand reported in Q1 2022 an increase in revenue of 32.3% compared to Q1 2021. Particularly, the business of kitchen appliances, air conditioners and washing machines achieved good results. In the first quarter of 2022, the revenue from the kitchen appliance business increased by 70.3% compared to Q1 2021. The market share of Casarte's air conditioner business was 24.3% in Q1 2022, up 4.8 percentage points (pp) compared to the same period of the previous year.

Overseas business still profitable with increase in high-end brands in North America by 30%

In the reporting period, the overseas market was still affected by the coronavirus pandemic and new international geopolitical uncertainties. Anyway, the overseas business still represents a solid driving force for the future revenue and profit growth of the Company.

Leveraged on the local presence of R&D, manufacturing and sales teams, the Company was able to mitigate pressures from the challenging international market and achieved an increase of 4.2% in revenue from overseas business compared to Q1 2021. The profit margin from operating activities increased by 0.1 pp.

Particularly, the market share of home appliances in North America continued to increase in the first quarter of 2022, and the revenue from high-end appliances such as Monogram, Café and GE Profile increased by more than 30%.

In the European market, Haier Smart Home adhered to a high-end transformation strategy and promoted the localization of the business operation capability.

Investment in digitalization led to increased efficiency and cost reduction

To deal with the constraints caused by the pandemic and rising raw material prices, Haier Smart Home focused on the digital transformation and continued to optimize the operational efficiency of its work processes such as digitalization of R&D, rebuilding of logistics and service workflows, and smart factories.

The Company's expense ratio was further reduced by 0.6 pp to 17.6% in Q1 2022 compared to Q1 2021.

Haier Smart Home continued to invest in key technologies to remain at the edge of smart home scenarios. In January 2022, Haier Smart Home became the only Chinese member of the Home Collectivity Alliance (HCA), an international initiative of leading home-appliance manufacturers to enable connected device interoperability across brands and therefore expand consumer choice.

Gross Profit Margin increased to 28.5%. Further focus on product innovation

In Q1 2022, gross profit margin increased to 28.5% (up 0.05 pp YoY) despite a challenging white goods industry characterized by the rise of raw materials price and the decline in overseas exports. This was enabled by the Company's long-term focus on product innovation, the construction of a world-class R&D division, as well as the development of high-end brands. In addition, the Company continued to promote lean manufacturing to achieve low-cost manufacturing and efficient delivery and continued to optimize the supply chain in overseas markets.

Accelerated implementation of Three-Winged Bird

Nowadays companies must focus on users' needs and provide tailor-made products. In this context, differentiation and personalization are important means for fulfilling the demand of consumers.

In this regard, Three-Winged Bird, the scenario brand of Haier Smart Home, provides users with one-stop customized smart home services of home appliances, home furnishing, home decoration and home life, significantly enhancing user value and enterprise value. Three-Winged Bird provide the customers with multiple solutions. In the reporting period the Company opened 120 Three-Winged Bird stores.

Capitalizing on the brand awareness of the Three-Winged Bird scenario solutions and the three-in-one user platform (including sales, design and service), home air conditioner segment provided users with professional and convenient one-stop solutions, achieving revenue growth of over 70%.

Under the trend of increasing competitiveness in the industry, continuously high costing of raw materials and recurring coronavirus infections, Haier Smart Home shows a positive signal with its first quarter 2022 figures, with strong resilience and potential in its performance. In the long run, the Company will continue to focus on cost optimization and increased efficiency growth through digitalization empowerment, high-end transformation, and global presence. Haier Smart Home is ready to welcome a new development stage of smart home solutions.

The report for the first quarter of 2022 is available at https://smart-home.haier.com/en/.

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.