Financial Performance - Operating revenue for Q3 2022 reached RMB 18,718,596,599.71, representing a year-on-year increase of 6.09%[3] - Net profit attributable to shareholders was RMB 449,622,342.46, up 44.55% compared to the same period last year[3] - Basic earnings per share for the period was RMB 0.33, reflecting a 43.48% increase year-on-year[4] - The company's net profit after deducting non-recurring gains and losses was RMB 347,348,485.85, reflecting a year-on-year increase of 54.52%[3] - The diluted earnings per share for the period was RMB 0.33, with a return on equity of 4.11%[4] - Investment income for the reporting period was RMB 427,460,084.89, an increase of 86.81% year-on-year[9] Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 55,764,948,014.37, a slight decrease of 0.33% from the previous year[4] - The equity attributable to shareholders of the listed company was RMB 11,163,835,980.94, showing a year-on-year increase of 7.94%[15] - Trading financial assets increased by 32.36% to RMB 7,446,321,415.89 due to the rise in unexpired financial products at the end of the reporting period[20] - Accounts receivable financing rose by 72.42% to RMB 6,327,260,830.08, primarily due to the company's growth in scale[20] Cash Flow - The net cash flow from operating activities for the year-to-date was RMB 4,112,665,147.87, showing a growth of 17.72%[3] - Cash received from tax refunds was RMB 2,329,825,859.86, reflecting a 30.30% increase compared to the previous year[9] - Cash received from investment income increased by 122.76% to RMB 145,424,642.74, due to higher financial product returns during the reporting period[20] - Cash received from borrowings decreased by 65.22% to RMB 1,043,026,866.50, mainly due to reduced bank borrowings by subsidiaries[20] Shareholder Information - The company reported a total of 37,743 common shareholders at the end of the reporting period[6] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the shares[6] - The total number of ordinary shareholders at the end of the reporting period was 37,743, with the top ten shareholders holding a combined 77.99% of the shares[17] - The top ten shareholders include various entities, with no significant shareholding restrictions noted[18] Expenses and Other Income - The company reported a significant increase in management expenses, totaling RMB 1,353,516,016.13, which is up 55.34% due to the consolidation of three subsidiaries[9] - Other operating income increased by 105.08% to RMB 218,507,475.26, mainly due to the consolidation of three subsidiaries[20] - Non-operating income for the period totaled RMB 102,273,856.61, with a significant portion attributed to government subsidies and asset management gains[5] - The government subsidies recognized in the current period amounted to RMB 46,319,495.72, with a total of RMB 173,323,944.48 from the beginning of the year to the end of the reporting period[16]

Market Performance - The domestic central air conditioning market growth was only 1.7% due to factors like raw material price fluctuations and real estate market adjustments[5]. - Retail sales of household air conditioners decreased by 15.3% year-on-year, with retail volume down by 20.9%[5]. - The refrigerator market saw a retail volume decline of 5.5% and a retail value decline of 3.4% in the first half of 2022[6]. - The washing machine market experienced a retail volume drop of 9.2% and a retail value drop of 10.1%[6]. - Exports of refrigerators, washing machines, and household air conditioners fell by 10.8%, 12.9%, and 2.18% respectively due to various global economic factors[9]. Product Development and Innovation - The average price of household air conditioners increased by 6.5% in the first half of 2022, driven by higher demand for new features[5]. - The high-end refrigerator segment saw a retail value share increase of 4.7 percentage points compared to 2021[6]. - The company is focusing on developing energy-efficient, low-carbon, and smart home appliances to meet evolving consumer demands[6]. - The company launched the "Dual Purification" home central air conditioning under the Hitachi brand, achieving over 15% market share in the home decoration retail market in the first half of 2022[11]. - The company introduced the "Photovoltaic Central Air Conditioning" product line, utilizing photovoltaic energy technology to enhance energy efficiency and reduce carbon emissions[11]. - The Hisense brand's "C200" air conditioner became the top-selling model in the industry for 8 consecutive weeks after its launch[12]. - The Hisense brand's vacuum preservation refrigerator series was recognized as a leading product in the vacuum preservation category in 2022[13]. - The company’s washing machine products received the 2022 German iF Design Award, marking the fifth consecutive win for the company in this prestigious international award[14]. Financial Performance - The company achieved operating revenue of 38.307 billion yuan, a year-on-year increase of 18.15%[10]. - The HVAC business generated main operating revenue of 18.947 billion yuan, up 17.47% year-on-year, while the ice washing business saw a decline of 6.30% to 10.427 billion yuan[10]. - Domestic sales revenue reached 20.654 billion yuan, growing by 12.25%, while international sales revenue surged by 34.57% to 14.322 billion yuan[10]. - The net profit attributable to shareholders was 620 million yuan, reflecting a year-on-year growth of 0.79%[10]. - The net cash flow from operating activities decreased significantly by 65.46%, amounting to RMB 720.03 million compared to RMB 2.08 billion in the previous year[19]. - The company reported a decrease of 5.87% in net profit after deducting non-recurring gains and losses, totaling RMB 428.07 million compared to RMB 454.78 million last year[19]. - The company received government subsidies amounting to RMB 127.00 million, contributing positively to its financial performance[20]. Research and Development - The company established R&D centers in the US, Japan, and Europe, focusing on a unified global platform and standards to enhance product quality and competitiveness[17]. - Research and development expenses increased by 27.71% to RMB 1,067,706,086.41 from RMB 836,068,530.36 in the previous year[24]. - The company adjusted its R&D organizational structure to enhance long-term capabilities and improve global R&D resource collaboration[51]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period amounted to RMB 7,798,340,633.53, representing 14.02% of total assets, an increase of 1.47% compared to the previous year[35]. - The company's accounts receivable decreased by 31.27% to RMB 156,881,858.82 from RMB 228,252,631.50 at the beginning of the period[24]. - Short-term borrowings decreased by 43.71% to RMB 1,609,308,315.26 from RMB 2,858,984,229.49 at the beginning of the period[24]. - The total cash flow from investing activities increased by 180.24% to RMB 1,516,440,091.45 from RMB 541,119,116.10 in the previous year[26]. Risk Management - The company faces risks from macroeconomic fluctuations that could impact consumer demand for home appliances, as well as rising costs of raw materials and labor affecting profitability[56]. - Trade protectionism and barriers in certain regions may increase operational costs and affect the competitiveness of the company's export business[56]. - The company has implemented internal control measures to enhance foreign exchange risk management capabilities[41]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period[79]. - The financial report for the half-year period has not been audited[82]. - The company confirmed that all directors have complied with the standard code of conduct during the reporting period[78]. Shareholder Information - The company's share capital structure as of June 30, 2022, included 903,135,562 A shares (66.27%) and 459,589,808 H shares (33.73%), totaling 1,362,725,370 shares[67]. - The top ten shareholders held a total of 1,134,000,000 shares, representing 83.24% of the company's issued share capital as of June 30, 2022[68]. - The board of directors proposed not to distribute an interim dividend for the six months ending June 30, 2022, consistent with the previous year[79]. Taxation - The corporate income tax rate applicable to the group is 25%[184]. - The effective corporate income tax rate for Hisense subsidiaries is 15% for the years 2020, 2021, and 2022 due to high-tech enterprise certification[186].

Acquisition and Expansion - Hisense completed the acquisition of Sanden Corporation, expanding into automotive air conditioning compressors and thermal management systems[5] - The company completed the acquisition of a leading automotive air conditioning compressor manufacturer, expanding into the automotive air conditioning and thermal management systems market[11] - The company completed the acquisition of SanDian Company on May 31, 2021, which contributed to the consolidated financial statements from June to December 2021[22] Revenue and Profitability - The company achieved a revenue of 67.6 billion CNY in 2021, representing a year-on-year growth of 40%[11] - The revenue from the HVAC business reached 30.4 billion CNY, with a year-on-year increase of 30%[14] - The revenue from the ice and washing machine segment was 23.0 billion CNY, showing a year-on-year growth of 23%[14] - The company’s net profit attributable to shareholders was 0.973 billion CNY, a decrease of 38.4% year-on-year, primarily due to losses in the home air conditioning segment[14] - The company’s overseas sales revenue grew by 58.21% year-on-year, reaching 23.16 billion CNY[14] - The company’s operating revenue for 2021 was RMB 67.56 billion, an increase of 39.61% compared to RMB 48.39 billion in 2020[22] - Net profit attributable to shareholders for 2021 was RMB 972.58 million, a decrease of 38.40% from RMB 1.58 billion in 2020[22] - The company’s basic earnings per share for 2021 was RMB 0.71, a decrease of 38.79% from RMB 1.16 in 2020[22] Market Performance - Hisense's refrigerator exports reached a record high, ranking first in the industry for cumulative export value in 2021[5] - The refrigerator export volume reached a record high, with the company ranking first in the industry for cumulative refrigerator export value in 2021[16] - The company reported a 3.2 percentage point increase in the high-end market share of Ronshen refrigerators year-on-year[5] - The high-end product market share for the company’s refrigerator line increased by 3.2 percentage points year-on-year[11] - The commercial cold chain business saw a revenue increase of 54% year-on-year[11] Research and Development - The company is focusing on technology innovation and ESG development, aligning with the "dual carbon" strategy and enhancing its product competitiveness[12] - The company’s R&D investment amounted to RMB 2.15 billion, representing a 40.27% increase from RMB 1.53 billion in the previous year[32] - The number of R&D personnel increased by 71.02% to 2,892 from 1,691 in the previous year[31] - R&D expenses grew by 55% year-on-year, enhancing product competitiveness and supporting steady revenue growth[43] - The company upgraded its HVAC products to meet national carbon neutrality policies, incorporating 5G wireless communication for smart cloud access[43] Corporate Governance - The company’s board consists of nine members, with the executive directors including Dai Huizhong (Chairman and CEO), Lin Lan, Jia Shaoqian, Fei Licheng, Xia Zhangzhu, and Gao Yuling, while independent non-executive directors include Ma Jinqian, Zhong Gengshen, and Zhang Shijie[59] - The company’s board underwent changes, with Duan Yuebin stepping down as Chairman and CEO on October 28, 2021, and Dai Huizhong assuming the roles[59] - The board has adopted a diversity policy, emphasizing the importance of diverse backgrounds, including gender, age, culture, and professional experience, to enhance performance[60] - The company has established a governance structure to ensure compliance with relevant laws and regulations, including the Corporate Governance Code[64] - The board is tasked with overseeing the preparation of financial statements, ensuring they accurately reflect the company's business status and cash flow[60] Financial Management - The company’s cash cycle improved by 1.82 days year-on-year, indicating better cash management[14] - The company’s financing cash inflow increased significantly to RMB 5.92 billion, a 1,337.6% increase from RMB 411.84 million in the previous year[35] - The company’s total assets and liabilities reflect significant changes due to the consolidation of a subsidiary, impacting various asset categories[37] - The company reported a total asset value of RMB 55.95 billion at the end of 2021, an increase of 33.81% from RMB 41.81 billion at the end of 2020[22] - The company’s total liabilities reached CNY 40,357,298,250.20, compared to CNY 27,405,116,775.00 in 2020, reflecting a growth of 47.0%[180] Environmental and Social Responsibility - The company established a comprehensive environmental management system, achieving ISO14001 certification renewal in December 2021[18] - The company has created four national-level "green factories" and one national-level "green supply chain," actively responding to the national "dual carbon" strategy[19] - The company is committed to developing high-voltage new energy products to meet the growing demand in the new energy vehicle sector[50] Risks and Challenges - The company faces risks from macroeconomic fluctuations, rising costs of raw materials, supply chain disruptions, currency exchange rate volatility, and trade protectionism[51] - The company has identified significant uncertainties regarding its ability to continue as a going concern, which may impact future financial stability[177] Employee Management - The company employed 48,263 staff members, with total employee expenses amounting to RMB 5.34 billion in 2021, up from RMB 4.28 billion in 2020[102] - The company has implemented a three-tier training system, providing over 410,000 training hours to enhance employee skills and capabilities[103] Related Party Transactions - The independent non-executive directors confirmed that the ongoing related transactions are part of the company's daily operations and are conducted under fair and reasonable terms[111] - The auditors did not identify any issues regarding the approval of ongoing related transactions or compliance with pricing policies[112] - The total amount of related party transactions for purchasing finished products from Hisense Group is RMB 193.90 million, accounting for 0.00% of similar transactions[140] Future Outlook - The strategic focus for 2022 includes improving the intelligence level of home appliances and increasing the proportion of connected smart products[49] - The company plans to strengthen its brand strategy and leverage its sponsorship of the 2022 FIFA World Cup to expand its overseas market presence[50]

Financial Performance - The company's operating revenue for Q1 2022 was RMB 18,303,785,340.27, representing a 31.35% increase compared to RMB 13,934,855,063.93 in the same period last year[4] - Net profit attributable to shareholders was RMB 266,233,233.32, up 22.10% from RMB 218,041,374.16 year-on-year[4] - The net profit after deducting non-recurring gains and losses was RMB 186,128,675.02, reflecting a 39.46% increase from RMB 133,465,991.53 in the previous year[4] - Basic and diluted earnings per share were both RMB 0.20, a 25.00% increase from RMB 0.16 in the same period last year[5] - The weighted average return on net assets is 2.54%, up 0.33 percentage points from 2.21% in the previous year[16] Assets and Liabilities - The total assets at the end of the reporting period were RMB 54,995,101,447.47, a decrease of 1.70% from RMB 55,948,549,486.98 at the end of the previous year[5] - Net assets attributable to shareholders of the listed company are RMB 10,596,107,827.23, reflecting a 2.45% increase from RMB 10,342,355,185.33 at the end of the previous year[16] - Total assets due within one year increased by 32.22% to RMB 2,923,372,666.66, mainly due to an increase in time deposits[18] Cash Flow - The company's cash flow from operating activities showed a net outflow of RMB 202,583,768.60, compared to a net outflow of RMB 52,228,509.71 in the same period last year[4] - The net cash flow from operating activities is negative at RMB -202,583,768.60, compared to RMB -52,228,509.71 in the same period last year[15] Research and Development - Research and development expenses increased by 35.66% to RMB 514,377,492.05 from RMB 379,154,264.86 year-on-year[8] - Research and development expenses increased by 35.66% year-on-year to RMB 514,377,492.05, reflecting higher R&D investments[19] Investment and Income - The company reported a significant increase in investment income, which rose by 321.35% to RMB 142,873,766.63 from RMB 33,908,652.85 in the previous year[8] - Non-operating income totaled RMB 80,104,558.30 after tax effects and minority interests[17] Sales and Revenue - Cash received from sales of goods and services was RMB 14,742,829,243.10, a 38.84% increase from RMB 10,618,654,036.04 in the same period last year[8] - Operating revenue increased by 31.35% year-on-year to RMB 18,303,785,340.27, driven by company growth and consolidation of San Dian Co., Ltd.[18] - Cash received from sales and services increased by 38.84% year-on-year to RMB 14,742,829,243.10, attributed to company growth and consolidation of San Dian Co., Ltd.[19] Operating Costs - Operating costs rose by 35.00% year-on-year to RMB 14,912,770,352.34, primarily due to company expansion and consolidation of San Dian Co., Ltd.[18] - Cash paid for purchasing goods and services rose by 48.10% year-on-year to RMB 11,766,765,713.43, reflecting company expansion[19] Contract Liabilities - The company's contract liabilities increased by 34.12% to RMB 1,538,519,406.67 from RMB 1,147,112,513.32 year-on-year, indicating growth in business scale[7] - Contract liabilities grew by 34.12% to RMB 1,538,519,406.67, driven by company scale growth[18] Shareholder Information - The company has a significant shareholder structure, with Qingdao Hisense Air Conditioning Co., Ltd. holding 37.92% of the shares[10] - The top shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the total issued shares[20]

Hisense 海信家電 海 信 家 電 集 團 股 份 有 限 公 司 Hisense Home Appliances Group Co., Ltd. 股份代號：000921 ( A 股 ) 00921 (H股) 126551 Hisense | EURO2020 2020欧洲杯全球官方合作伙伴 2021 中期報告 目 錄 | --- | --- | |----------------------------------|-------| | | | | | | | | | | 公司资料 | 2 | | 管理層討論與分析 | 3 | | 其他資料 | 21 | | 釋愈. | 30 | | 按中國企業會計準則編製的財務報表 | 32 | | 財務報表附註. | 50 | 1 公司資料 海信家電集團股份有限公司（「本公司或公司」，連同其附屬公司「本集團」）主營業務涵蓋冰箱、中央空調、家用空調、冷櫃、洗衣機、商用冷 鏈、廚衛等電器產品的研發、製造和營銷，報告期內，本公司完成了對三電控股的併購，實現向汽車空調壓縮機、汽車空調產業拓展。 中國註冊辦事處 中國廣東省佛山市順德區容桂街道容港路8號 香港辦事處 香港干諾 ...

Financial Performance - Hisense achieved a revenue of CNY 48.393 billion and a net profit attributable to shareholders of CNY 1.579 billion in 2020, with earnings per share of CNY 1.16[9]. - The company achieved operating revenue of 48.393 billion yuan, a year-on-year increase of 29.21%[12]. - The net profit attributable to shareholders was 1.579 billion yuan, a decrease of 11.97% year-on-year, primarily due to losses in the home air conditioning segment[12]. - The company’s cash flow from operating activities was 5.963 billion yuan, reflecting a significant increase of 197.34% year-on-year[12]. - The company reported a total revenue of 1,362,725,570.00, with a significant increase in user data to 2,156,157,145.37[191]. - The net income for the period was 26,508,501.35, reflecting a strong performance compared to previous quarters[191]. - The company reported a significant increase in investment income, reaching CNY 195,655,206.20 in 2020, compared to CNY 1,122,348,640.53 in 2019, reflecting a substantial decrease[178]. Market Position and Product Development - The market share of Hisense's mid-to-high-end refrigerator products increased by 2.9 percentage points year-on-year in 2020[10]. - Hisense's new air conditioning products captured the second position in online retail market share and third position in offline retail market share in 2020[10]. - The company launched high-end new products focusing on "health and comfort" in response to consumer needs during the pandemic[9]. - The company launched a series of high-end products featuring vacuum preservation technology and RFID technology for food management[13]. - The company aims to become a world-leading high-end smart appliance manufacturer, focusing on technological innovation to improve the quality of human life[42]. - The company plans to enhance its digital marketing strategies to increase brand visibility and customer acquisition[192]. Research and Development - The company plans to deepen research and development in washing machines, commercial cold chain, and kitchen appliances to accelerate market expansion[10]. - Research and development expenses rose by 37.50% to RMB 1,284,848,949.46 in 2020, reflecting the company's increased investment in R&D[24]. - The company has a research and development team of nearly 1,700 high-level researchers and technical experts, focusing on technology innovation and high-quality products as core competitive advantages[19]. - The company has established a research and development system that includes "one generation in research, one generation in reserve, and one generation in development" to enhance its innovation capabilities[19]. Corporate Governance - The board of directors held a total of 15 meetings in 2020 to discuss significant operational matters[55]. - The board consists of nine members, including six executive directors and three independent non-executive directors[52]. - The company adopted a board diversity policy, considering factors such as gender, age, and professional experience for board member selection[53]. - The company has established a compliance organizational structure and system to adhere to corporate governance codes and relevant laws[57]. - The company has implemented a training program for directors to enhance corporate governance standards[74]. Risk Management - The company has implemented a robust internal control and risk management system, which was reviewed during the reporting period[57]. - The internal control and risk management system aims to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[78]. - The company faces risks from macroeconomic fluctuations that could impact consumer demand for home appliances[43]. - Rising raw material prices and labor costs pose a risk to the company's product cost and profitability[43]. Shareholder Information - Shareholders holding more than 3% of shares can propose temporary motions 16 days before the shareholders' meeting[51]. - The company ensures smooth communication channels for shareholders to raise inquiries and suggestions[50]. - The board proposed a cash dividend of RMB 3.47 per 10 shares, subject to approval at the annual general meeting, with an expected total distribution of RMB 472,865,703.39[91]. Related Party Transactions - The company entered into several significant related party transactions, including agreements with Hisense Group and its subsidiaries[123]. - The annual cap for sales of electrical products to Hisense Group is set at RMB 41 million, while sales to Hisense International Marketing is capped at RMB 1,539.298 million[128]. - The company has established financial service agreements with Hisense Financial Company and Hisense Financial Holdings[125]. Future Outlook - Future guidance indicates an expected revenue growth of approximately 5% for the next quarter, targeting 69,000,000,000.38[192]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[178]. - The company has initiated a strategic acquisition plan, aiming to enhance its market position and diversify its product offerings[192].

Financial Performance - In 2019, the company achieved a revenue of CNY 37.453 billion, representing a year-on-year growth of 3.98%, and a net profit attributable to shareholders of CNY 1.794 billion, up 30.22% year-on-year[6]. - The company achieved a total revenue of 37.453 billion CNY, representing a year-on-year growth of 3.98%[9]. - The net profit attributable to shareholders was 1.794 billion CNY, reflecting a year-on-year increase of 30.22%[9]. - The company's total operating revenue for 2019 was RMB 37,453,043,968.74, an increase of 3.98% compared to RMB 36,019,598,304.79 in 2018[18]. - Net profit attributable to shareholders of the listed company reached RMB 1,793,669,013.19, reflecting a significant increase of 30.22% from RMB 1,377,457,177.70 in the previous year[18]. - The company's net profit for the year 2019 was approximately RMB 759.63 million, with a distributable profit of RMB 2.40 billion after accounting for statutory reserves and previous undistributed profits[103]. - The total comprehensive income for 2019 was RMB 1.96 billion, a 37.32% increase from RMB 1.43 billion in 2018[192]. - The total profit for 2019 was RMB 2.15 billion, up 37.49% from RMB 1.56 billion in 2018[191]. Revenue Segmentation - The air conditioning segment generated a revenue of 16.369 billion CNY, with a year-on-year increase of 9.92%[9]. - The revenue from the home appliance manufacturing sector was RMB 34,196,927,100.83, accounting for 91.31% of total revenue, with a year-on-year growth of 4.29%[20]. - The refrigerator and washing machine sectors set historical revenue records in 2019, with profits reaching the best level in five years[6]. - The sales volume of washing machines and refrigerators reached 2,388,000 units in 2019, a 6.75% increase from 2,237,000 units in 2018[22]. Innovation and Technology - The company plans to focus on continuous product innovation and market expansion, particularly in the central air conditioning sector, to maintain its leading position in technology and quality[6]. - The refrigerator division will emphasize fresh-keeping technology, while the washing machine sector will focus on "steam washing" as a key technological direction[6]. - The company launched new technologies such as "strong heat floor heating" and "NB-IOT," enhancing its competitive edge in the market[10]. - The vacuum preservation technology in refrigerators extends the freshness of fruits and vegetables by 4 days and meat by 6 days, significantly enhancing product competitiveness[35]. - The steam ironing technology in washing machines achieves a wrinkle removal effect with a sterilization rate exceeding 99.9%, leading the industry in quality[35]. - The air conditioning segment introduced the "New Wind" series with industry-first technologies, addressing user health concerns and improving brand price index by 3 percentage points year-on-year[13]. Market Strategy - The company aims to leverage opportunities from consumption upgrades and market segmentation to achieve steady growth in scale and efficiency[6]. - The company plans to enhance its brand positioning in the refrigerator market, focusing on fresh-keeping standards and technology[6]. - The home air conditioning sector will target the fresh air market, promoting its brand proposition of "new air in three minutes" to capitalize on rapid market expansion[6]. - The company actively expanded its export market, significantly increasing export scale and profitability amid challenging domestic market conditions[13]. Corporate Governance - The company has adopted corporate governance codes in line with the Hong Kong Stock Exchange to ensure effective governance and compliance[45]. - The company has established communication channels with shareholders to maintain transparency and facilitate engagement[46]. - The board of directors consists of nine members, including five executive directors and three independent non-executive directors[54]. - The company has established clear procedures for shareholders to propose temporary motions at general meetings, requiring at least 3% shareholding[53]. - The company emphasizes the importance of corporate governance and compliance with the Corporate Governance Code and other legal regulations[59]. Risk Management - The company is prepared to face challenges posed by economic uncertainties and new competitors, particularly in light of the COVID-19 pandemic[6]. - The company faces risks from macroeconomic fluctuations, with decreased consumer demand for home appliances due to the COVID-19 pandemic impacting sales scale[44]. - Continuous cost pressures from rising raw material prices and labor costs are expected to adversely affect the company's profitability[44]. - The company has established a system to identify and prioritize risks that may impact business operations[85]. Human Resources and Training - The company conducted training for 1.024 million participants, totaling 54,000 hours, covering various courses from management to technical research[107]. - The company has established a three-tier training system to enhance the value of human resources effectively[107]. - The current management team includes experienced professionals with extensive backgrounds in various leadership roles within the company and its subsidiaries[92][93][94][95][96][97]. Financial Management - The company has a stable profit distribution policy, aiming for a cash distribution of at least 10% of the annual distributable profit[101]. - The company plans to maintain a continuous and stable profit distribution policy to ensure reasonable returns to investors[101]. - The company has no long-term bank loans but has short-term bank loans of RMB 100 million, which are due within one year[105]. - The company has entrusted financial management with a total amount of RMB 263 million, with an outstanding balance of RMB 212 million[159]. Audit and Compliance - The financial report for the year ended December 31, 2019, received a standard unqualified audit opinion from the accounting firm[171]. - The audit committee is responsible for reviewing the company's financial information and disclosures, including annual and semi-annual reports[73]. - The company has implemented internal controls to ensure the financial statements are free from material misstatement due to fraud or error[181]. - The audit included procedures to evaluate the adequacy of the inventory impairment provision, which is significant to the financial statements[178]. Future Outlook - Future outlook remains positive with projected revenue growth of approximately 10% for the next quarter[200]. - New product launches are expected to contribute an additional $800 million in revenue over the next fiscal year[200]. - Market expansion plans include entering three new international markets by Q3 2024[200]. - Strategic acquisitions are being considered to enhance product offerings and market share[200].

Financial Performance - The company's revenue for the year reached RMB 36.02 billion, representing a year-on-year growth of 7.56%[8] - Main business revenue amounted to RMB 32.79 billion, with a year-on-year increase of 7.76%, driven by a 13.90% growth in refrigerator and washing machine business revenue[8] - The net profit attributable to shareholders was RMB 1.377 billion, with a year-on-year increase of 12.36% after excluding non-recurring gains and losses[8] - The company's operating revenue reached RMB 36.02 billion, representing a year-on-year growth of 7.56%[12] - Net profit attributable to shareholders was RMB 1.377 billion, with a year-on-year growth of 12.36% after excluding non-recurring gains and losses[12] - Earnings per share stood at RMB 1.01[12] - The company reported a net profit attributable to shareholders of RMB 1,377 million for the year ended December 31, 2018, with a proposed dividend of RMB 3.03 per 10 shares[90] - The company reported a decrease in net profit for 2018 of 31.3% compared to 2017[178] Revenue Breakdown - Air conditioning business revenue grew by 2.08%, while domestic sales revenue reached RMB 22.04 billion, up 7.11% year-on-year[8] - The revenue from the refrigerator and washing machine segment accounted for 49.02% of main business revenue, growing by 13.90% year-on-year[12] - Air conditioning business revenue constituted 45.41% of main business revenue, with a year-on-year growth of 2.08%[12] - Export revenue reached RMB 10.75 billion, marking a year-on-year growth of 9.10%[12] Market Trends - The refrigerator market saw a retail volume decline of 6.2% year-on-year, while the air conditioning market experienced a retail volume growth of 2.3%[8] - Hisense's "Rongsheng" brand online retail sales increased by 26.4% year-on-year, significantly exceeding the industry online retail growth rate of 15.5%[13] - The commercial cold chain scale increased by 40% year-on-year, driven by the expansion of display cabinets, supermarket freezers, and vending machines[13] Innovation and Product Development - The company launched the "Hisense Home Appliance 3.0" strategy, focusing on revitalizing national industry and enhancing family happiness[8] - The company introduced several innovative products at the IFA exhibition, winning multiple awards for product and technology innovation[5] - The company emphasized technological innovation and product quality, aiming to enhance competitiveness in the commercial cold chain sector[9] - The company plans to continue enhancing employee training and welfare, investing in new facilities to improve employee quality of life[20] - The company is focused on expanding its product lines and enhancing its technological capabilities in the appliance sector[89] Corporate Governance - The board of directors and supervisory board successfully completed their re-election and revised governance documents to enhance corporate governance[39] - The company held one annual general meeting and three extraordinary general meetings in 2018, with attendance rates of 41.43%, 54.54%, 41.27%, and 40.49% respectively[41] - The board consists of eight members, including five executive directors and three independent non-executive directors[48] - The board has adopted a diversity policy, considering factors such as gender, age, and professional experience in selecting candidates[49] - The company has established a dedicated securities department for shareholder communication and inquiries[46] Internal Control and Compliance - The company has established an internal control system that was deemed effective, with no significant deficiencies reported for the 2018 fiscal year[79] - The company’s internal control evaluation covered key areas such as organizational structure, development strategy, and financial reporting, ensuring sustainable development[79] - The audit committee reviewed related party transactions to ensure fairness and protect minority shareholders' interests[71] - The company has complied with the Corporate Governance Code as per the listing rules during the reporting period[73] Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[187] - Future guidance indicates an expected revenue growth rate of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[190] - The company aims to enhance marketing capabilities by increasing the sales proportion of mid-to-high-end products and improving e-commerce operations[38] Employee and Operational Metrics - The company had a total of 32,858 employees, including 4,663 technical staff and 12,928 sales personnel[93] - The number of R&D personnel increased to 1,309 in 2018, up 11.88% from 1,170 in 2017, indicating a focus on enhancing innovation capabilities[28] - Employee expenses for the year amounted to RMB 3,169 million, an increase from RMB 2,866 million in the same period of 2017[93] Cash Flow and Financial Position - The net cash flow from operating activities for 2018 was RMB 1,049,366,564.25, an increase of 130.61% compared to RMB 455,048,576.31 in 2017[21] - The total assets at the end of 2018 were RMB 21,827,905,038.40, reflecting a year-on-year increase of 1.02% from RMB 21,473,666,822.72 in 2017[21] - The company reported a total inventory balance of ¥2,496,876,656.27 as of December 31, 2018, with a provision for inventory impairment of ¥34,639,801.73, resulting in a net book value of ¥2,462,236,854.54[166] Related Party Transactions - The company reported a total related party transaction amount of RMB 982,783.94 million for finished products sold to Hisense Group, accounting for 27.28% of similar transactions[131] - The company has a maximum annual limit of RMB 1,508,570 million for sales of products to related parties under the Business Cooperation Framework Agreement[133] Shareholder Information - The top shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 516,758,670 shares, representing 37.92% of the total issued share capital[108] - The total number of shareholders as of December 31, 2018, is 39,996, with 35,587 shareholders reported before the earnings announcement date[109]