Market Performance - In the first half of 2023, the central air conditioning market experienced a slight growth of 1.4%, while the multi-split system's market share slightly decreased [6]. - The retail sales of household air conditioners surged by 29.49%, with online and offline growth rates of 36.01% and 7.57% respectively [7]. - The refrigerator market's retail sales grew by 5.2%, while the cold storage market saw a decline of 7.0% [8]. - The washing machine market's retail volume decreased by 4.9%, with a retail sales drop of 1.2% [10]. - The kitchen appliance market's retail sales increased by 3.8%, driven by steady growth in categories like range hoods and water heaters [11]. - Global automobile sales reached 42.43 million units, marking an 11% increase, with new energy vehicle sales growing by 54% to 9.54 million units [12]. - The global smart home market is projected to grow from $117.6 billion in 2022 to $222.9 billion by 2027, indicating significant market potential [13]. Company Financial Performance - The company achieved operating revenue of RMB 42.944 billion, a year-on-year increase of 12.10% [16]. - Net profit attributable to shareholders reached RMB 1.498 billion, up 141.45% year-on-year [16]. - The net cash flow from operating activities was RMB 3.812 billion, a significant increase of 429.43% year-on-year [16]. - The HVAC business generated revenue of RMB 21.160 billion, growing 11.68% year-on-year [17]. - Domestic sales revenue was RMB 24.466 billion, reflecting an 18.45% year-on-year increase [17]. - The company's home air conditioning retail sales increased by 66.7% online and 16.6% offline, outperforming industry growth by 30.7 and 9.0 percentage points respectively [23]. - The washing machine sales volume grew by 34.5% year-on-year, indicating strong market demand [28]. - The kitchen appliance segment saw a 42% growth in scale, with overseas sales doubling [29]. Product Development and Innovation - The company is focusing on the development of energy-efficient and environmentally friendly products in line with the national "dual carbon" strategy [6]. - The demand for smart home appliances is expected to rise, supported by government measures promoting smart home technology development [13]. - The company achieved a 106% year-over-year increase in new orders for thermal management systems and core components, leading the industry in high pressure, miniaturization, new refrigerants, and low vibration noise [30]. - The company launched the first "home doctor" system for central air conditioning, enhancing service standards [19]. - The company has established an industry-leading platform for the next generation of electric compressors, enhancing competitive advantages in the market [86]. - The company has made significant advancements in AI technology for home appliances, improving user experience and product intelligence [84]. International Operations and Exports - In the first half of 2023, the refrigerator export volume increased by 7.2%, while washing machine exports rose by 32.5% [15]. - The overseas market for Hisense central air conditioning saw a 42% increase in self-owned brand revenue, with heat pump export revenue growing by 106% [32]. - The sales structure of overseas air conditioning improved, with light commercial scale increasing by 21% year-over-year, and self-owned brand revenue share rising by 4 percentage points [32]. - The washing machine business experienced a 57.9% year-over-year increase in export revenue, driven by customized product strategies for different regional user needs [32]. Operational Efficiency - The company improved procurement efficiency, with a 10% decrease in the quantity of purchased materials, while the standard output per hour improved by 14.3% year-over-year [37]. - Cash flow from operating activities increased significantly by 429% year-over-year, with accounts receivable turnover improving by 14.3% and inventory turnover improving by 24.6% [38]. - The company plans to enhance R&D efficiency and quality, focusing on user-centered product upgrades and key technology research [40]. - The company aims to improve manufacturing levels by advancing factory and integrated supply chain construction, enhancing delivery capabilities and manufacturing quality [40]. Financial Position and Assets - The total assets at the end of the reporting period were ¥63,914,563,349.11, reflecting a 15.42% increase from ¥55,375,550,868.66 at the end of the previous year [42]. - The net assets attributable to shareholders increased by 6.43% to ¥12,259,008,649.98 from ¥11,518,257,281.54 [42]. - The company's accounts receivable increased to ¥9.66 billion, accounting for 15.11% of total assets, up from 13.84% the previous year [58]. - The company's cash and cash equivalents decreased to ¥4.56 billion, representing 7.14% of total assets, down from 10.84% [58]. - The inventory level was reported at ¥6.08 billion, which is 9.52% of total assets, down from 11.83% [58]. Shareholder and Equity Information - The company reported a basic earnings per share of ¥1.09, up 136.96% from ¥0.46 in the previous year [42]. - The company approved a final dividend of RMB 5.171314 per 10 shares for the year ending December 31, 2022, totaling approximately RMB 717 million distributed to shareholders [132]. - The company repurchased 11,699,989 shares from January 16 to March 16, 2023, accounting for 0.86% of the total share capital, with a total transaction amount of RMB 211,401,111.66 [129]. - The shareholding structure as of June 30, 2023, showed that Qingdao Hisense Air Conditioning Co., Ltd. held 37.23% of the issued share capital [114]. - The top ten shareholders held a total of 55.65% of the issued share capital as of June 30, 2023 [115]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period [131]. - The company has established a comprehensive integrity culture, promoting high standards of business conduct among employees and partners [88]. - The company did not experience any major litigation or arbitration matters during the reporting period [123]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, rising costs of raw materials, trade protectionism, and currency exchange rate volatility [91]. - The company has not engaged in any significant asset or equity sales during the reporting period [66]. Research and Development - Research and development expenses for the first half of 2023 were ¥1,244,057,032.04, up from ¥1,067,706,086.41 in the first half of 2022, indicating a focus on innovation [165]. - The company is focusing on user-centered research to enhance operational quality and is committed to strengthening R&D capabilities and cost control measures [90].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 HISENSE HOME APPLIANCES GROUP CO., LTD. 海信家電集團股份有限公司 （在中華人民共和國註冊成立的股份有限公司） （ 股份代號： 00921） 二零二三年中期業績公告 海信家電集團股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司 及其附屬公司（統稱「本集團」）截至2023年6月30日止六個月（「本報告期」）未 經審計之中期業績，及2022年同期的比較數字，本未經審計之中期業績已經本公司 第十一屆董事會審計委員會審閱。 按照中國企業會計準則編制的財務數據 （除特別注明外，金額單位為人民幣元） 合併資產負債表 2023年6月30日 2023年1月1日 項 目 附注 （未經審計） （經審計） 流動資產： 貨幣資金 4,563,538,891.74 6,001,295,427.37 結算備付金 ...

Financial Performance - The company's operating revenue for the first half of 2023 was approximately CNY 42.94 billion, representing a 12.10% increase compared to CNY 38.31 billion in the same period last year[12]. - Net profit attributable to shareholders of the listed company reached approximately CNY 1.50 billion, a significant increase of 141.45% from CNY 620.23 million in the previous year[12]. - The net profit after deducting non-recurring gains and losses was approximately CNY 1.26 billion, up 195.10% from CNY 428.07 million year-on-year[12]. - The net cash flow from operating activities was approximately CNY 3.81 billion, a substantial increase of 429.43% compared to CNY 720.03 million in the same period last year[12]. - Basic earnings per share rose to CNY 1.09, a 136.96% increase from CNY 0.46 in the previous year[12]. - Total assets at the end of the reporting period were approximately CNY 63.91 billion, reflecting a 15.42% increase from CNY 55.38 billion at the end of the previous year[12]. - The net assets attributable to shareholders of the listed company were approximately CNY 12.26 billion, an increase of 6.43% from CNY 11.52 billion at the end of the previous year[12]. Market Trends - The central air conditioning market in China grew by 1.4% year-on-year in the first half of 2023, with multi-split units experiencing a slight decline in market share[19]. - The retail sales of household air conditioners increased by 29.49% in the first half of 2023, driven by high temperatures and consumer recovery, with online and offline growth rates of 36.01% and 7.57% respectively[20]. - The refrigerator market saw a retail sales growth of 5.2% year-on-year, while the freezer market declined by 7.0% in the first half of 2023[21]. - The washing machine market experienced a retail volume decline of 4.9% and a retail sales decline of 1.2% in the first half of 2023, indicating a slow market recovery[23]. Business Strategy and Development - The company plans to focus on high-quality development, enhancing product, brand, marketing, and manufacturing capabilities to ensure sustainable growth[18]. - The company aims to enhance R&D efficiency and quality, focusing on key technology research to support product innovation[44]. - The company plans to optimize supply chain layout and improve flexibility to enhance cost and delivery competitiveness[44]. - The company is transitioning to a comprehensive thermal management system supplier for electric vehicles, focusing on energy-saving and environmentally friendly operations[48]. Environmental Initiatives - The company has created 5 national-level "green factories" and 1 national-level "green supply chain" as part of its response to the "dual carbon" strategy[86]. - The company improved its energy consumption per ten thousand yuan of output by 6.4% year-on-year in the first half of 2023[86]. - The company has established an ISO 14001 environmental management system, which has passed re-certification audits, ensuring ongoing compliance with environmental standards[81]. - The company invested a total of 2.926 million yuan in environmental governance and protection in the first half of 2023, establishing wastewater treatment stations and exhaust gas treatment equipment[84]. Shareholder and Equity Information - The company does not plan to distribute cash dividends or issue bonus shares for this reporting period[2]. - A total of 5,511 individuals were granted restricted stock under the 2022 A-share incentive plan, with a total of 25.422 million shares granted, accounting for 1.87% of the company's total share capital, at a grant price of 6.64 CNY per share[75]. - The employee stock ownership plan includes 59 employees holding a total of 10,810,000 shares, representing 0.78% of the company's total share capital[76]. - The company reported a total of 11,642,273.36 CNY in securities investments, with a fair value change gain of 2,026,066.75 CNY during the period[61]. Risks and Challenges - The company faced risks including macroeconomic fluctuations, rising costs of raw materials, and trade protectionism, which could impact consumer demand and profitability[67]. - The company emphasizes enhancing R&D capabilities and optimizing cost management to mitigate risks and improve operational quality[68]. Financial Management - The company reported a significant increase in contract liabilities to ¥1.88 billion, reflecting a rise in merchant repayments during the reporting period[55]. - The total financial assets at fair value reached ¥20.29 billion, with a notable increase in trading financial assets to ¥11.41 billion[57]. - The company has no overdue financial management amounts or other situations that may lead to impairment[105]. - The company has not engaged in any derivative investments for hedging or speculative purposes during the reporting period[62][63]. Operational Efficiency - The company's accounts receivable turnover improved by 14.3% year-on-year, while inventory turnover saw a significant improvement of 24.6%[43]. - The company achieved a 10% reduction in procurement material quantity, enhancing procurement efficiency through supplier optimization and shared measures[42]. - The company reported a significant increase in cash received from other operating activities, totaling 286,049,782.28 CNY, compared to 84,216,962.06 CNY in the previous year[141]. Research and Development - Research and development expenses rose to ¥1.24 billion, marking a 16.52% increase from the previous year, indicating a continued focus on innovation[51]. - The company has made significant breakthroughs in air conditioning technology, achieving international leading levels in multi-split intelligent predictive control systems[46]. - The company launched the first ultra-small capacity multi-split central air conditioning system, aligning with the national dual carbon strategy to reduce energy consumption[30]. Corporate Governance - The company emphasizes integrity as a core value, implementing various regulations to promote high standards of business conduct among employees and partners[50]. - The company has not experienced any major litigation or arbitration matters during the reporting period[89]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[88].

Financial Performance - The total operating revenue for the first half of 2023 reached RMB 42,943,975,619.38, an increase of 12.5% compared to RMB 38,307,238,698.85 in the same period of 2022[7]. - Total operating revenue for the period reached 40,473,806,340.24, an increase from 37,092,626,365.51 in the previous period, reflecting a growth of approximately 6.4%[8]. - Net profit for the period was 2,486,477,361.90, compared to 1,363,087,296.35 in the previous period, representing a significant increase of about 82.5%[8]. - The total profit reported was 2,958,668,525.30, compared to 1,734,465,058.13 in the previous period, marking an increase of approximately 71%[8]. - The total comprehensive income for the period was 2,550,911,602.50, compared to 1,396,347,858.68 in the previous period, indicating a growth of about 82.5%[9]. - The company's operating profit was 2,777,082,984.18, up from 1,647,128,259.12, reflecting an increase of approximately 68.6%[8]. - The company achieved operating revenue of 42.944 billion RMB, a year-on-year increase of 12.10%[52]. - Net profit attributable to shareholders reached 1.498 billion RMB, up 141.45% year-on-year[52]. - The total profit for the first half of 2023 was RMB 2,958,668,525.30, compared to RMB 1,497,562,724.59 for the same period in 2022, reflecting a significant increase in net profit attributable to shareholders of the parent company[41]. Assets and Liabilities - Current assets as of June 30, 2023, totaled RMB 45,044,030,262.59, up from RMB 36,629,189,836.92 at the beginning of the year, reflecting a growth of 23%[5]. - The total liabilities as of June 30, 2023, amounted to RMB 46,899,307,012.77, compared to RMB 39,096,785,837.42 at the beginning of the year, indicating a rise of 20%[6]. - The total assets increased to RMB 63,914,563,349.11 from RMB 55,375,550,868.66, representing a growth of 15.5%[6]. - The company's equity attributable to shareholders rose to RMB 12,259,008,649.98, compared to RMB 11,518,257,281.54 at the beginning of the year, an increase of 6.4%[6]. - The company's debt-to-asset ratio as of June 30, 2023, was 73.38%, an increase from 70.98% on June 30, 2022[89]. Cash Flow and Financial Management - The company's cash and cash equivalents decreased to RMB 4,563,538,891.74 from RMB 6,001,295,427.37, a decline of approximately 24.0%[4]. - The net cash flow from operating activities was 3,812 million RMB, a significant increase of 429.43% year-on-year[53]. - The company's financial expenses showed a net income of -284,866,150.49, compared to -66,804,674.09 in the previous period, indicating improved financial management[8]. - The company’s financial expenses for the first half of 2023 were reported at RMB -284.87 million, worsening from RMB -66.80 million in the same period of 2022[32]. Revenue Growth and Market Performance - Domestic revenue for the first half of 2023 was RMB 24.47 billion, up from RMB 20.65 billion in the same period of 2022, indicating a growth of 18.5%[20]. - The HVAC business generated main operating revenue of 21.160 billion RMB, a year-on-year growth of 11.68%[53]. - The washing and refrigeration business achieved main operating revenue of 11.587 billion RMB, increasing by 11.12% year-on-year[53]. - The company’s home air conditioning retail sales increased by 66.7% online and 16.6% offline, outperforming industry growth by 30.7 and 9.0 percentage points respectively[56]. - The refrigerator segment's online and offline retail market shares reached 15.09% and 17.46%, respectively, with increases of 1.56 and 0.43 percentage points[58]. Research and Development - Research and development expenses amounted to 1,244,057,032.04, an increase from 1,067,706,086.41, reflecting a growth of about 16.5%[8]. - The company aims to enhance R&D efficiency and quality, focusing on key technology research to support product innovation and improve user experience[71]. - The company is committed to optimizing supply chain layout and enhancing flexibility to improve cost and delivery competitiveness[71]. - R&D expenses for the period amounted to RMB 1.24 billion, an increase of 16.52% compared to RMB 1.07 billion in the previous year[78]. Market Trends and Industry Insights - The central air conditioning market in China saw a 1.4% year-on-year growth in overall industry capacity during the first half of 2023[43]. - The retail sales of household air conditioners grew by 29.49% in the first half of 2023, with online and offline growth rates of 36.01% and 7.57%, respectively[45]. - The refrigerator market's retail sales increased by 5.2% year-on-year in the first half of 2023, while the freezer market experienced a decline of 7.0%[46]. - The global automotive market showed a recovery trend with total sales of 42.43 million units in the first half of 2023, representing an 11% year-on-year increase[49]. - The production of compressors in the global automotive industry reached approximately 42.53 million units in the first half of 2023, marking a 9.26% increase compared to the previous year[49]. Corporate Governance and Shareholder Information - The company has not declared an interim dividend for the six months ending June 30, 2023, consistent with the previous year[42]. - The company has adhered to the corporate governance code as per the Hong Kong Listing Rules throughout the reporting period[98]. - The 2023 interim report will be sent to shareholders and can be accessed on the company's website and the Hong Kong Stock Exchange website[100]. - The company is a subsidiary of Hisense Group, with approximately 37.23% of its issued shares held by Hisense Air Conditioning[101]. - Hisense Hong Kong holds about 8.97% of the company's issued shares as of the announcement date[101]. Strategic Initiatives - The company plans to continue expanding its market presence and invest in new product development to drive future growth[3]. - The company plans to strengthen overseas operations and improve market management, emphasizing the strategy of independent overseas branding[72]. - The company is actively addressing operational risks by enhancing R&D capabilities, optimizing sales structure, and improving cost management to alleviate cost pressures[86]. - The company is utilizing financial instruments such as import and export financing and forward contracts to hedge against currency fluctuation risks[87].

Financial Performance - The company's revenue for Q1 2023 reached ¥19,430,480,828.07, representing a 6.16% increase compared to ¥18,303,785,340.27 in the same period last year[3] - Net profit attributable to shareholders was ¥615,296,643.26, a significant increase of 131.11% from ¥266,233,233.32 year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥520,783,170.28, up 179.80% from ¥186,128,675.02 in the previous year[3] - Operating profit for Q1 2023 was CNY 1.22 billion, up 74.00% from CNY 702.89 million in the same period last year[15] - Comprehensive income for Q1 2023 was CNY 1.10 billion, compared to CNY 539.98 million in Q1 2022, marking an increase of 104.00%[16] - Basic and diluted earnings per share for Q1 2023 were both CNY 0.45, up from CNY 0.20 in the same period last year[16] Assets and Liabilities - The company's total assets increased by 7.40% to ¥59,473,631,308.87 from ¥55,375,550,868.66 at the end of the previous year[3] - The total assets of Hisense Home Appliances Group reached CNY 59.47 billion at the end of the first quarter, up from CNY 55.38 billion at the beginning of the year, representing an increase of approximately 7.6%[11] - Total liabilities increased to CNY 42.74 billion, up from CNY 39.10 billion year-over-year, reflecting a growth of 6.73%[15] - The total liabilities increased to CNY 40.71 billion, compared to CNY 37.63 billion at the beginning of the year, representing a growth of about 8.5%[12] - The company’s total equity increased to CNY 18.77 billion from CNY 18.75 billion, showing a marginal growth of about 0.1%[12] - Total equity attributable to shareholders of the parent company reached CNY 11.99 billion, an increase of 4.16% from CNY 11.52 billion in Q1 2022[15] Cash Flow - Cash flow from operating activities showed a significant improvement, with a net cash inflow of ¥886,463,601.52 compared to a net outflow of ¥202,583,768.60 in the previous year[3] - The net cash flow from operating activities for Q1 2023 was ¥886,463,601.52, a significant improvement from a negative cash flow of ¥202,583,768.60 in the same period last year[18] - Total cash inflow from operating activities reached ¥16,081,473,482.74, compared to ¥15,563,763,794.69 in Q1 2022, indicating a year-over-year increase of approximately 3.3%[18] - Cash outflow from operating activities was ¥15,195,009,881.22, down from ¥15,766,347,563.29 in the previous year, reflecting a decrease of about 3.6%[18] - The company reported a net cash flow from financing activities of ¥626,302,995.69, a recovery from a negative cash flow of ¥481,156,461.28 in Q1 2022[18] - Total cash inflow from financing activities was ¥1,867,599,216.74, compared to ¥855,811,531.59 in the previous year, indicating a year-over-year increase of about 118.5%[18] Investments and Shareholder Information - The company’s investment income rose by 65.52% to ¥236,484,537.13, driven by increased returns from long-term equity investments and financial products[5] - The total number of ordinary shareholders at the end of the reporting period was 18,673[6] - The number of shares held by the largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., is 516,758,670, accounting for 37.92% of the total shares[8] Research and Development - R&D expenses for Q1 2023 amounted to CNY 576.47 million, representing an increase of 12.06% from CNY 514.38 million in Q1 2022[15] Inventory and Receivables - The company reported a significant increase in inventory, which stood at CNY 6.50 billion, down slightly from CNY 6.55 billion, indicating a decrease of about 0.8%[11] - Accounts receivable increased to CNY 8.65 billion from CNY 7.67 billion, reflecting a rise of approximately 12.8%[11] - The company reported a 46.22% increase in accounts receivable financing, reaching ¥7,417,684,272.37, attributed to business growth[5] Borrowings - Short-term borrowings increased by 31.91% to ¥1,928,890,525.46, primarily due to increased borrowings by subsidiaries[5] - Short-term borrowings rose to CNY 1.93 billion from CNY 1.46 billion, marking an increase of approximately 32.1%[12] Cash and Cash Equivalents - The company's cash and cash equivalents decreased to CNY 5.69 billion from CNY 6.00 billion, a decline of about 5.2%[11] - The ending balance of cash and cash equivalents was ¥3,205,383,971.61, up from ¥2,834,959,925.92 at the end of Q1 2022[19] - The company’s cash and cash equivalents increased by ¥727,037,896.21 during the quarter, compared to a decrease of ¥44,216,868.76 in the same period last year[18] Audit Status - The company has not audited the Q1 2023 report, which was released on April 27, 2023[19]

Financial Performance - The company's revenue reached CNY 74.115 billion, a year-on-year increase of 9.7%[12] - Net profit attributable to shareholders was CNY 1.435 billion, a significant year-on-year growth of 47.54%[12] - The company achieved operating revenue of RMB 74.115 billion, a year-on-year increase of 9.70%[29] - Net profit attributable to shareholders reached RMB 1.435 billion, reflecting a significant year-on-year growth of 47.54%[29] - The net cash flow from operating activities for 2022 was RMB 4.03 billion, a decrease of 6.52% compared to RMB 4.31 billion in 2021[41] - The basic earnings per share for 2022 was RMB 1.05, up 47.89% from RMB 0.71 in 2021[41] - The company's net profit for the fiscal year 2022 was approximately RMB 2,036.32 million, with a total distributable profit of RMB 4,986.24 million after accounting for previous undistributed profits and dividends paid[145] - The total amount allocated for the proposed dividend is approximately RMB 717.39 million, expected to be distributed around August 15, 2023, pending shareholder approval[146] Market Share and Product Performance - The online market share of Ronshen refrigerators was 12.5%, up 0.4 percentage points year-on-year[12] - The offline market share of Hisense fresh air conditioners was 26.3%, an increase of 2.5 percentage points year-on-year[12] - Hisense's share in the multi-split air conditioning market approached 20%, ranking first in the industry[12] - The company reported a year-on-year increase of over 30% in both export volume and export value for its home air conditioning products in 2022[18] - The refrigerator market saw a retail volume decline of 6.3% and a retail value decline of 4.7% in 2022, with offline sales dropping by 20.0%[24] - The washing machine market experienced a retail volume decline of 9.0% and a retail value decline of 10.4% in 2022, while mini washing machines saw a retail value increase of 10.5%[25] - The company’s new product, the C200 cabinet air conditioner, topped the industry sales chart for over 30 weeks, priced above RMB 20,000[14] Innovation and Product Development - The company launched a new high-end washing and drying care set, enhancing user experience[4] - The company introduced the "KELON Sleep Air Conditioner" series targeting younger consumers[4] - The company launched the "WILL3.0" refrigerator, which addresses traditional embedded refrigerator pain points, achieving a unique design with no protrusions and no gaps[14] - The company’s "Aijia Platform" integrates smart home solutions across five themes and nine spaces, enhancing user experience[15] - The company’s new air source heat pump products have been launched in multiple European markets, capitalizing on the shift from fossil fuels[18] - The company introduced new generation products in key markets such as Europe and North America, focusing on energy efficiency and smart connectivity[31] - The company has made breakthroughs in smart washing machine technologies, achieving industry-leading performance in garment care[65] Corporate Governance and Management - The company has established a nomination committee under the board to recommend candidates for directorships[90] - The board consists of nine members, including six executive directors and three independent non-executive directors[90] - The company has established four specialized committees: Compensation and Assessment Committee, Nomination Committee, Strategy Committee, and Audit Committee[99] - The board has adopted a diversity policy, currently including one female director, Gao Yuling, appointed on January 19, 2022[92] - The company has established a risk management strategy that includes identifying, assessing, and prioritizing risks[125] - The company has a structured governance framework with independent non-executive directors contributing to oversight and strategic guidance[132] Sustainability and Corporate Social Responsibility - The company was recognized as a "2022 Model Enterprise for Carbon Neutrality" at the International Green Zero Carbon Festival[8] - The company has created four national-level "green factories" and one national-level "green supply chain," improving energy consumption by 6.9% year-on-year[19] - The company actively responded to green manufacturing and low-carbon policies by developing new industry standards for air conditioning products[31] - The company focuses on energy conservation and emission reduction, integrating these efforts with its business strategy[139] Talent and Human Resources - The company hired 103 leading and core talents, an increase of 52 year-on-year[13] - The company implemented an equity incentive plan to enhance its long-term incentive system[11] - The company introduced an equity incentive plan covering over 600 core management and key employees to enhance long-term capabilities[20] - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 1,979.96 million[199] Shareholder Engagement and Financial Policies - The company proposed to increase the dividend payout ratio to 50% in 2022, reflecting a commitment to shareholder returns[21] - The company has approved a share repurchase plan with a total amount adjusted to between RMB 1.2285 billion and RMB 2.4570 billion[77] - The company repurchased 11,699,989 shares for a total amount of RMB 211.4 million from January 16 to March 16, 2023[78] - The profit distribution policy emphasizes a minimum cash dividend of 10% of the distributable profit for the year, with a cumulative distribution of at least 30% of the average annual distributable profit over the last three years[143] Supply Chain and Procurement - The company has strengthened its supply chain management, achieving over 30% improvement in efficiency and reducing procurement costs significantly[19] - The company maintains a strong relationship with suppliers, ensuring no significant shortages or delays in supply during the reporting period[141] - The total procurement amount from the top five suppliers was RMB 6,209,323,495.69, which accounted for 10.57% of the annual procurement[172] Related Party Transactions - The company has not entered into any significant contracts or agreements with its controlling shareholders during the reporting period, aside from those disclosed in the related party transactions section[159] - The total amount of related party transactions during the reporting period includes RMB 1.6 billion for sales of finished products to Hisense International Marketing, accounting for 21.58% of similar transactions[186] - The independent non-executive directors confirmed that the ongoing related party transactions during the reporting period were conducted in the ordinary course of business and were fair and reasonable[160]

Financial Performance - The company's operating revenue for Q1 2023 was RMB 19,430,480,828.07, representing a 6.16% increase compared to RMB 18,303,785,340.27 in the same period last year[3] - Net profit attributable to shareholders reached RMB 615,296,643.26, a significant increase of 131.11% from RMB 266,233,233.32 year-on-year[4] - The net cash flow from operating activities was RMB 886,463,601.52, compared to a negative cash flow of RMB -202,583,768.60 in the previous year, indicating a substantial improvement[4] - Basic earnings per share rose to RMB 0.45, up 125.00% from RMB 0.20 in the same period last year[4] Assets and Liabilities - Total assets increased by 7.40% to RMB 59,473,631,308.87 from RMB 55,375,550,868.66 at the end of the previous year[4] - The company's net assets attributable to shareholders grew by 4.15% to RMB 11,996,579,413.35 from RMB 11,518,257,281.54 at the end of the previous year[4] - Short-term borrowings increased by 31.91% to RMB 1,928,890,525.46, primarily due to increased borrowings by subsidiaries[6] Receivables and Investments - The company reported a 46.22% increase in receivables financing, amounting to RMB 7,417,684,272.37, attributed to business growth[6] - The company received investment income of RMB 236,484,537.13, reflecting a 65.52% increase from RMB 142,873,766.63 in the previous period[7] - Cash received from investment activities increased by 56.29% to RMB 4,010,048,509.51, driven by the maturity of financial products[7] Shareholder Information - Qingdao Hisense Air Conditioning Co., Ltd. holds 516,758,670 shares, accounting for 37.92% of total shares[9] - Hong Kong Central Clearing (Agent) Co., Ltd. holds 457,828,567 shares, representing 33.60% of total shares[9] - The top ten shareholders collectively hold significant stakes, with the largest shareholder owning 37.92%[10] - The company has a total of 12,445,200 H shares held by its controlling shareholder, accounting for 9.13% of total shares[10] - The report indicates no related party transactions among the top shareholders, except for Qingdao Hisense Air Conditioning Co., Ltd. and Hisense (Hong Kong) Co., Ltd.[10] Corporate Governance - The company’s board of directors includes six executive directors and three independent non-executive directors[11] - The financial report is prepared in both Chinese and English, with Chinese being the authoritative version in case of discrepancies[11] - The company is based in Foshan, Guangdong Province, China[11]

Financial Performance - The company's operating revenue reached RMB 74.115 billion, a year-on-year increase of 9.7%[8] - The net profit attributable to shareholders was RMB 1.435 billion, a significant year-on-year growth of 47.54%[8] - The net profit margin improved by 0.5 percentage points compared to the previous year[8] - The company's operating revenue for 2022 was approximately ¥74.12 billion, representing a year-on-year increase of 9.70% compared to ¥67.56 billion in 2021[24] - The net profit attributable to shareholders for 2022 was approximately ¥1.43 billion, a significant increase of 47.54% from ¥972.58 million in 2021[24] - The net profit after deducting non-recurring gains and losses was approximately ¥905.50 million, up 35.94% from ¥666.13 million in 2021[24] - The weighted average return on equity increased to 13.13% in 2022, up 3.49 percentage points from 9.64% in 2021[25] - The company's operating revenue for Q1 to Q4 of 2022 was 18.30 billion, 20.00 billion, 18.72 billion, and 17.09 billion yuan respectively, showing a decline in the fourth quarter[28] - The net profit attributable to shareholders for Q1 to Q4 of 2022 was 266.23 million, 354.00 million, 449.62 million, and 365.05 million yuan respectively, indicating a strong performance in the third quarter[28] Market Share and Product Innovation - The online market share of Rongsheng refrigerators increased to 12.5%, up 0.4 percentage points year-on-year[8] - The offline market share of Hisense fresh air conditioners reached 26.3%, an increase of 2.5 percentage points year-on-year[8] - The company introduced innovative products such as the "WILL3.0" refrigerator and the C200 air conditioner, leading their respective market segments[10] - The company launched high-end washing and drying sets, C2 and CC, featuring a nano steam generation system and AI sensing technology, enhancing user experience and product innovation[43] - The company launched the Ai Home Central Air Conditioning system, integrating 5G IoT technology, enhancing user experience[39] Strategic Initiatives and Growth Plans - The company proposed to increase the dividend payout ratio to 50% in 2022, reflecting its commitment to shareholder returns[18] - The company aims to capitalize on market opportunities related to energy-saving, health, comfort, and smart products as consumer preferences evolve[32] - The company is focusing on technological innovation and high-quality products to enhance consumer trust and satisfaction[31] - The company plans to enhance user experience by focusing on smart home solutions and improving product interaction scenarios[85] - The company aims to achieve a revenue growth target of 10% for the upcoming fiscal year, reflecting its optimistic outlook[97] Operational Efficiency and Cost Management - The company improved its supply chain efficiency, achieving a reduction in BOM costs for air conditioning and refrigerator businesses by over 30%[16] - The company has implemented advanced manufacturing strategies, optimizing supplier teams and enhancing procurement cost competitiveness through talent acquisition and process improvements[49] - The company's total operating costs rose by 10.03% year-on-year, with raw materials accounting for 90.26% of total costs[58] Talent Acquisition and Management - The company recruited 103 key talents, a year-on-year increase of 52, to enhance team capabilities[9] - The company has established over 20 national and provincial-level technology innovation platforms, enhancing its R&D capabilities[50] - The number of R&D personnel increased by 6.05% to 3,067, with a higher proportion of master's degree holders[67] Environmental and Social Responsibility - The company has established 4 national-level "green factories" and 1 national-level "green supply chain" as part of its commitment to sustainable development[16] - The company has increased investments in environmental protection equipment, including wastewater and air treatment facilities[140] - The company actively engages in social responsibility initiatives, including educational support and environmental projects, such as the "Sandy Tree Public Welfare Forest Project" in the Tengger Desert[141] Governance and Compliance - The company maintains complete independence in business, personnel, assets, organization, and finance from its controlling shareholder[91] - The company has a strict assessment system for remuneration based on annual performance and operational goals[103] - The company has established a system for managing and controlling its subsidiaries through various governance measures[131] Financial Management and Related Party Transactions - The company reported a total of RMB 1,027.23 million in procurement transactions with its indirect controlling shareholder, Hisense Group[154] - The procurement amount for materials from Hisense Group was RMB 48,621.93 million, accounting for 83% of similar transactions[154] - The total expected amount for related party transactions in 2022 was CNY 2,664.685 million, with actual performance at CNY 1,799.310 million (67.5% fulfillment) for sales and services[156] Challenges and Risks - The domestic central air conditioning market experienced a 2.6% decline in capacity in 2022 due to factors such as a slowdown in domestic demand and a sluggish real estate market[32] - Key risks identified include macroeconomic fluctuations, rising costs, exchange rate volatility, and trade protectionism impacting overseas operations[86]

Financial Performance - Total operating revenue for 2022 reached RMB 74.12 billion, a 9.3% increase from RMB 67.56 billion in 2021[6]. - Total operating costs for 2022 were RMB 71.26 billion, up from RMB 65.69 billion in 2021, reflecting a 8.5% increase[6]. - Net profit for 2022 was RMB 3.07 billion, representing a 30.9% increase compared to RMB 2.34 billion in 2021[7]. - The company reported a total profit of RMB 3.82 billion for 2022, a 31.1% increase from RMB 2.92 billion in 2021[7]. - The company’s total comprehensive income for 2022 was RMB 3.09 billion, compared to RMB 2.42 billion in 2021, an increase of 27.6%[8]. - Basic earnings per share for 2022 were RMB 1.05, compared to RMB 0.71 in 2021, indicating a 48.6% increase[8]. - The net profit for 2022 was RMB 3,823,809,728.21, up from RMB 2,916,537,004.54 in 2021, representing a growth of 31.1%[15]. - The company’s domestic sales revenue was 42.624 billion RMB, showing a year-on-year increase of 13.36%[41]. - The net profit attributable to shareholders reached 1.435 billion RMB, marking a significant year-on-year growth of 47.54%[41]. Assets and Liabilities - The total assets of Hisense Home Appliances Group as of December 31, 2022, amounted to RMB 55.38 billion, a decrease from RMB 55.95 billion in 2021, reflecting a decline of approximately 1.03%[2]. - The total liabilities of the company as of December 31, 2022, were RMB 39.10 billion, down from RMB 40.36 billion in 2021, a decrease of about 3.1%[4]. - The equity attributable to the owners of the parent company increased to RMB 11.52 billion from RMB 10.34 billion, reflecting a growth of approximately 11.5%[5]. - The company's non-current assets totaled RMB 18.75 billion, up from RMB 16.25 billion, marking an increase of approximately 15.4%[3]. - The asset-liability ratio improved to 70.60% from 72.13% in the previous year[70]. Cash Flow - The net cash flow from operating activities for 2022 was approximately RMB 4.03 billion, a decrease of 6.52% from RMB 4.31 billion in 2021[53]. - Operating cash inflow totaled RMB 66.77 billion, an increase of 10.13% compared to RMB 60.63 billion in 2021[58]. - Operating cash outflow amounted to RMB 62.74 billion, reflecting an increase of 11.40% from RMB 56.32 billion in the previous year[58]. - Investment cash inflow increased by 28.15% to RMB 22.48 billion, compared to RMB 17.54 billion in 2021[58]. Market Performance - The company reported a significant increase in domestic trading revenue, reaching RMB 42,624,208,014.02 in 2022, compared to RMB 37,601,996,641.67 in 2021, marking a growth of 13.5%[17]. - The domestic central air conditioning market capacity declined by 2.6% in 2022, influenced by a slowdown in domestic demand and a sluggish real estate market[32][33]. - The refrigerator market experienced a retail volume decline of 6.3% and a retail value decline of 4.7% in 2022, with offline sales dropping by 20.0%[35]. - The washing machine market saw a retail volume decrease of 9.0% and a retail value decrease of 10.4%, while mini washing products experienced a 10.5% increase in online retail sales[36]. - The export volume of refrigerators decreased by 21.6% year-on-year in 2022, indicating challenges in the overseas market[40]. Research and Development - Research and development expenses increased to RMB 2.29 billion in 2022, up from RMB 1.99 billion in 2021, marking a 15.3% rise[6]. - Focus will be placed on advancing R&D to improve technological and product competitiveness[63]. - The company is committed to enhancing product quality through advanced manufacturing strategies[63]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance product offerings in the upcoming fiscal year[1]. - The company launched new high-quality products focusing on health, low carbon, and environmental protection, aligning with consumer preferences[41]. - The company has initiated the production line for refrigerators in its Monterrey appliance park in Mexico, enhancing its strategic presence in the Americas[51]. - The company secured multiple key project orders from global customers, including orders for the 800V 60CC large electric compressor, marking a successful expansion into international markets[48]. Shareholder Returns - The company proposed a cash dividend of RMB 5.31 per 10 shares, compared to RMB 2.14 per 10 shares in 2021, after repurchasing 11,699,989 shares[31]. - The company plans to distribute a cash dividend of RMB 5.31 per 10 shares, totaling approximately RMB 717.39 million, pending shareholder approval[66]. Corporate Governance - The company has complied with the Corporate Governance Code during the reporting period[74]. - The company’s auditor confirmed that the financial statements for the reporting period are consistent with the audited consolidated financial statements[73]. - The company will hold an extraordinary general meeting on April 19, 2023, to approve the appointment of new executive directors[79].