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 - The company's operating revenue for Q1 2021 was CNY 13,934,855,063.93, representing an increase of 83.70% compared to the same period last year[7] - Net profit attributable to shareholders was CNY 218,041,374.16, a significant increase of 400.66% year-on-year[7] - Basic earnings per share rose to CNY 0.16, up 433.33% from CNY 0.03 in the previous year[7] - The weighted average return on equity increased by 1.71 percentage points to 2.21%[7] - Revenue for the period reached ¥13,934,855,063.93, an increase of 83.70% compared to the previous period, primarily due to the low comparison base affected by the pandemic[17] - The total operating revenue for Q1 2021 reached CNY 29,777,059,820.00, an increase from CNY 18,764,556,930.00 in the same period last year, representing a growth of approximately 58.8%[44] - The net profit attributable to shareholders of the parent company reached CNY 218,041,374.16, compared to CNY 43,550,392.57 in Q1 2020, marking a significant increase of 400.4%[42] - The total operating costs amounted to CNY 13,439,205,864.44, up from CNY 7,558,643,797.38, reflecting a rise of 77.5%[44] - The company reported a total profit of CNY 655,565,634.81, significantly higher than CNY 142,297,042.56 in Q1 2020, representing an increase of 360.5%[44] - The operating profit for the quarter was CNY 597,171,634.06, compared to CNY 92,593,326.82 in the same quarter last year, showing an increase of 544.5%[44] Assets and Liabilities - Total assets at the end of the reporting period were CNY 44,993,004,324.42, a 7.61% increase from the end of the previous year[7] - Current liabilities totaled CNY 29.56 billion, an increase of 10.9% from CNY 26.72 billion in the previous year[34] - The total liabilities reached CNY 30.26 billion, up from CNY 27.41 billion, marking an increase of 10.4%[34] - The total equity attributable to shareholders increased to CNY 9.99 billion, compared to CNY 9.78 billion, reflecting a growth of 2.2%[35] - Long-term equity investments amounted to CNY 5.57 billion, slightly up from CNY 5.56 billion year-over-year[37] Cash Flow - The company reported a net cash flow from operating activities of CNY -52,228,509.71, indicating a shift from a positive cash flow of CNY 51,278,516.92 in the same period last year[7] - Cash inflow from operating activities was CNY 11,374,132,470.10, up from CNY 8,192,409,136.55 in Q1 2020, reflecting a growth of 38.8%[47] - Total cash outflow from investing activities was 2,675,704,590.54 CNY, while cash inflow was 1,990,338,456.04 CNY, resulting in a net cash flow of -685,366,134.50 CNY[48] - Cash inflow from financing activities amounted to 517,464,303.78 CNY, with a net cash flow of 340,624,536.97 CNY after outflows[49] - The total cash and cash equivalents at the end of the period were 1,221,352,808.74 CNY, down from 1,515,092,607.37 CNY in the previous period[49] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 22,232[11] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., held 37.92% of the shares[11] Operational Metrics - Accounts receivable increased by 108.51% to ¥1,143,683,217.05 due to increased bill collections during the reporting period[17] - Inventory rose by 41.14% to ¥6,062,191,820.13 as a result of increased sales scale[17] - Research and development expenses increased by 37.61% to ¥379,154,264.86, reflecting increased investment in R&D[17] - Cash received from sales and services amounted to ¥10,618,654,036.04, a 37.15% increase, attributed to improved management and recovery from the pandemic[17] Government Support - The company received government subsidies amounting to CNY 69,109,764.53 during the reporting period[8] Miscellaneous - The company has not reported any violations regarding external guarantees during the reporting period[27] - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[27] - The company has not conducted any research, communication, or interview activities during the reporting period[28]

Financial Performance - In 2020, Hisense Home Appliances achieved a revenue of CNY 48.393 billion and a net profit attributable to shareholders of CNY 1.579 billion, with earnings per share of CNY 1.16[11]. - The company's operating revenue for 2020 was CNY 48.39 billion, an increase of 29.21% compared to CNY 37.45 billion in 2019[21]. - The net profit attributable to shareholders for 2020 was CNY 1.58 billion, a decrease of 11.97% from CNY 1.79 billion in 2019[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 1.10 billion, down 10.63% from CNY 1.23 billion in 2019[21]. - The net cash flow from operating activities increased by 197.34% to CNY 5.96 billion from CNY 2.01 billion in 2019[21]. - The total assets at the end of 2020 were CNY 41.81 billion, a 23.01% increase from CNY 33.99 billion at the end of 2019[22]. - The net assets attributable to shareholders at the end of 2020 were CNY 9.78 billion, up 12.13% from CNY 8.72 billion at the end of 2019[22]. - The company achieved a year-on-year revenue growth of 5.33% when excluding the impact of the acquisition of Hisense Hitachi[22]. Market Position and Strategy - The company maintained a strong market position, ranking second in the refrigerator market with a combined retail market share of its brands[30]. - Hisense actively participated in the formulation and revision of multiple technical standards, enhancing its technological leadership in the industry[12]. - The company plans to accelerate its transformation and upgrade strategy, focusing on high-quality products in the refrigerator, central air conditioning, and home air conditioning sectors[14]. - Hisense aims to deepen its research and development in washing machines, commercial cold chain, and kitchen and bathroom products to achieve comprehensive market coverage[14]. - The company launched a series of high-end new products focusing on "health and comfort" in response to consumer needs during the pandemic[11]. Product Performance - The company’s air conditioning business reported a main operating income of 23.386 billion yuan, an increase of 42.87% year-on-year[44]. - The ice washing business generated a main operating income of 18.709 billion yuan, up 16.00% year-on-year[44]. - Domestic sales contributed 29.205 billion yuan in main operating income, growing by 28.59% year-on-year[44]. - International sales reached 14.639 billion yuan, reflecting a year-on-year increase of 27.47%[44]. - The refrigerator and washing machine segment achieved revenue of ¥18.71 billion, a 16.00% increase from ¥16.13 billion in 2019[51]. Research and Development - The company has a robust R&D team of nearly 1,700 high-level researchers and technical experts, focusing on continuous technological innovation[34]. - The company has established a global R&D innovation system to meet differentiated market demands and enhance its core competitiveness[34]. - R&D expenses increased by 37.50% to ¥1,284,848,949.46, primarily due to increased investment in R&D[61]. - R&D investment amounted to ¥1,532,348,263.57, a 35.04% increase from the previous year, with R&D investment accounting for 3.17% of operating revenue[63]. Dividend and Shareholder Information - The company announced a cash dividend of CNY 3.47 per 10 shares, based on a total of 1,362,725,370 shares[4]. - The cash dividend for 2020 is proposed at 3.47 CNY per 10 shares, totaling approximately 472.87 million CNY[89]. - The company has consistently maintained a cash dividend payout ratio of 30% over the past three years[94]. - The total number of shares for the dividend distribution is based on 1,362,725,370 shares as of December 31, 2020[95]. Risks and Challenges - The company faces risks including macroeconomic fluctuations that may reduce consumer demand for home appliances[86]. - Rising raw material costs and labor expenses could negatively impact the company's profitability[86]. - Trade protectionism and barriers may increase operational costs and affect export competitiveness[86]. - Significant fluctuations in the RMB exchange rate could impact the cost competitiveness of exported products[86]. Corporate Governance and Compliance - The company has not faced any bankruptcy reorganization or major litigation during the reporting period[104][105]. - The audit committee reviewed the 2020 annual financial report and confirmed that it accurately reflects the company's operating conditions[195]. - The company maintained effective communication with the annual audit firm throughout the audit process, ensuring timely completion of the audit work[196]. - The company has not reported any changes in its controlling shareholder during the reporting period[148]. Environmental and Social Responsibility - The company has established wastewater treatment facilities that meet the Class B standards of the "Discharge Standard for Pollutants from Municipal Wastewater Treatment Plants" (CJ343-2010)[131]. - The company has implemented air pollution control measures that comply with the "Comprehensive Emission Standard of Air Pollutants" (GB16297-1996)[131]. - The company has developed an emergency response plan for environmental incidents and conducts regular drills to ensure its effectiveness[131]. Employee Information - The total number of employees in the company is 39,499, with 20,154 in production, 13,350 in sales, and 5,256 in technical roles[177]. - The educational background of employees includes 35 with a doctorate, 1,073 with a master's degree, 5,552 with a bachelor's degree, and 32,839 with education below a bachelor's degree[178]. - The company conducted over 380,000 training hours for employees, covering various levels from frontline production to management[180].

Financial Performance - The company achieved a revenue of 21.087 billion CNY, representing a year-on-year growth of 11.27%[6] - The company's net profit attributable to shareholders was 503 million CNY, a decrease of 47.56% year-on-year[6] - Domestic sales revenue amounted to 12.491 billion CNY, reflecting a year-on-year growth of 13.59%[6] - The company's operating revenue for the reporting period was RMB 21,086,699,809.27, an increase of 11.27% compared to RMB 18,950,275,309.93 in the same period last year[11] - Net profit attributable to shareholders of the listed company decreased by 47.56% to RMB 503,307,515.41 from RMB 959,746,468.35 year-on-year[11] - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 62.31% to RMB 331,261,366.70 compared to RMB 878,846,308.56 in the previous year[11] - The net cash flow from operating activities increased by 29.03% to RMB 2,540,816,943.34 from RMB 1,969,095,990.99 in the same period last year[11] - The company's basic earnings per share decreased by 47.14% to RMB 0.37 from RMB 0.70 in the previous year[11] - Total operating revenue reached RMB 21,086,699,809.27, an increase of 11.27% compared to RMB 18,950,275,309.93 in the same period last year[18] - The air conditioning segment generated RMB 11,207,575,905.80, representing a growth of 25.72% year-on-year, while the washing machine segment saw a decline of 5.13% to RMB 7,266,745,240.35[18] - The gross profit margin for the home appliance manufacturing industry improved to 24.65%, up by 3.02 percentage points from the previous year[18] Market and Product Development - Air conditioning business revenue reached 11.208 billion CNY, with a year-on-year increase of 25.72%[6] - The new air conditioning product series, Hi-Multi New M2, was successfully launched, enhancing the product lineup[7] - The company established the first national group standard for air conditioners with fresh air functions, aligning with consumer trends[8] - The market share for the company's fresh air cabinet air conditioners ranked second in the industry, while the fresh air wall-mounted air conditioners ranked third[8] - The company’s air conditioning customer satisfaction index ranked third in the industry according to the 2020 C-CSI report[8] - The company achieved significant growth in export sales revenue, ensuring timely delivery of overseas orders[9] - The company launched new high-end products, including the "Ion Steam Washing" technology and the S60 steam washing machine, enhancing its product competitiveness[9] Financial Position and Assets - The company's total assets at the end of the reporting period were RMB 36,679,569,955.56, reflecting a year-on-year increase of 7.91%[11] - Cash and cash equivalents at the end of the reporting period were RMB 6,689,879,614.82, representing an increase in proportion to total assets from 18.01% to 18.24%[20] - Accounts receivable increased to RMB 5,060,522,094.47, with a proportion of total assets rising by 2.13 percentage points[20] - Inventory levels reached RMB 3,578,309,334.28, showing a slight decrease in proportion to total assets by 0.53 percentage points[20] - The company reported a total of RMB 6,219,608,704.80 in financial assets measured at fair value, with a fair value change of RMB 425,542.00 during the reporting period[21] - The company has no major assets under restriction, such as being sealed, frozen, or pledged, as of the end of the reporting period[22] - The company reported a total investment amount of RMB 244,000,000 in bank wealth management products, with the entire amount still outstanding[25] Risks and Challenges - The company faces macroeconomic cyclical fluctuation risks that may impact consumer demand for home appliances[27] - The company has identified risks related to rising costs of raw materials and installation services that could adversely affect profitability[27] - The company confirmed a derivative investment fair value loss of RMB 751,780 during the reporting period[24] - The company faced certain foreign exchange risks due to procurement and export transactions settled in foreign currencies, and utilized financial instruments for hedging[31] Corporate Governance and Management - The company has complied with the Corporate Governance Code during the reporting period[45] - The company appointed Mr. Duan Yuebin as a director on June 23, 2020, and appointed Ms. Liang Hongtao as the new financial officer on September 4, 2020[45] - The company has established internal control systems to manage foreign exchange derivative investments, which are aimed at mitigating currency fluctuation risks[24] - The management team remains committed to transparency and accountability in financial reporting, as indicated by the detailed disclosures[68] Employee and Shareholder Information - As of June 30, 2020, the company had a total of 39,580 employees, with a total employee expenditure reflecting a year-on-year increase[33] - The top ten shareholders hold a total of 516,758,670 A shares, representing 57.22% of the A share category and 37.92% of the total issued shares[40] - Hong Kong Central Clearing Limited holds 124,452,000 H shares, accounting for 27.08% of the H share category and 9.13% of the total issued shares[40] - The company has a significant concentration of ownership, with the top shareholder holding over 50% of the shares[40] Cash Flow and Investment Activities - The company reported a net cash inflow from operating activities of approximately RMB 2,541 million for the six months ended June 30, 2020, compared to RMB 1,969 million for the same period in 2019[31] - The company’s cash flow from investment activities was negative at RMB -1,117,975,720.54, primarily due to increased purchases of financial products and new term deposits[15] - The company’s cash flow from financing activities showed a significant increase in outflows, indicating a strategic shift in capital management[59] Accounting and Financial Reporting - The group adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements accurately reflect its financial position and performance[78] - The group has established specific accounting policies based on its operational characteristics, including revenue recognition and inventory measurement[80] - The group recognizes revenue based on the progress of performance obligations, confirming income when customers gain control of goods or services[141] - The group measures government grants at fair value or nominal amount, depending on the nature of the asset received[142] Taxation and Compliance - The corporate income tax rate for the group is generally 25%, with specific subsidiaries benefiting from reduced rates of 15% or 20%[171] - The group’s subsidiary, Hisense (Guangdong) Moulding Co., Ltd., qualifies as a small and micro enterprise, allowing for reduced tax rates on income up to 300,000 RMB[175] - The group anticipates that any changes in provisions for after-sales service commitments may impact future financial results[168]

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 operating revenue for Q1 2020 was ¥7,585,620,733.19, a decrease of 12.68% compared to the same period last year[4] - The net profit attributable to shareholders was ¥43,550,392.57, representing a significant decline of 89.67% year-on-year[4] - The net cash flow from operating activities was ¥51,278,516.92, down 76.68% from the previous year[4] - Basic and diluted earnings per share were both ¥0.03, a decrease of 90.32% compared to ¥0.31 in the same period last year[4] - The company reported a net profit of CNY 4,687,807,238.89, compared to CNY 4,644,256,846.32, reflecting a slight increase of 0.94%[23] - Net profit for Q1 2020 was CNY 88,966,145.78, a decline of 79.5% compared to CNY 432,701,421.30 in Q1 2019[28] - The total comprehensive income attributable to the parent company is CNY 33,194,431.49, compared to CNY 423,092,609.28 in the previous period[29] Assets and Liabilities - Total assets at the end of the reporting period were ¥33,148,515,955.91, a decrease of 2.48% from the end of the previous year[4] - Total current assets amounted to CNY 23,110,190,895.53, a decrease of 5.75% from CNY 24,520,457,276.99 on December 31, 2019[20] - Total non-current assets rose by 33.33% to ¥2,864,295,232.34, primarily due to an increase in time deposits at the end of the reporting period[13] - Total liabilities decreased to CNY 20,589,045,291.32 from CNY 21,509,800,523.05, indicating a reduction of 4.27%[22] - Total current liabilities were CNY 19,940,821,934.76, down from CNY 20,838,408,713.79, reflecting a decrease of 4.30%[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,507[7] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., held 37.92% of the shares[7] - The total equity attributable to shareholders of the parent company was CNY 8,754,788,164.11, up from CNY 8,721,593,732.62, showing an increase of 0.38%[23] Cash Flow - Cash received from sales of goods and services rose by 31.06% to ¥7,742,250,847.74, mainly due to the inclusion of data from Hisense Hitachi[13] - Cash flow from other investment activities increased by 451.89% to ¥2,538,707,519.43, mainly due to the inclusion of Hisense Hitachi data and increased maturity recoveries from financial products[13] - The cash inflow from operating activities totals CNY 8,192,409,136.55, an increase from CNY 6,401,420,415.10 in the previous period[34] - The cash outflow from operating activities is CNY 8,141,130,619.63, compared to CNY 6,181,524,851.80 in the previous period[34] - The ending balance of cash and cash equivalents was 1,515,092,607.37 yuan, down from 2,065,106,596.27 yuan at the beginning of the period[35] Expenses - Total operating costs for Q1 2020 were CNY 7,558,643,797.38, down from CNY 8,455,035,504.70 year-over-year[27] - Research and development expenses increased by 57.09% to ¥275,527,711.33, attributed to increased R&D investments[13] - Management expenses increased by 36.95% to ¥167,943,577.38, mainly due to the inclusion of data from Hisense Hitachi[13] - The company reported a decrease in sales expenses to CNY 1,087,667,447.83 from CNY 1,112,231,291.11 in the same period last year[27] Government Subsidies - The company received government subsidies amounting to ¥71,702,920.38 during the reporting period[5] - Other income increased by 317.47% to ¥49,519,333.15, primarily due to an increase in government subsidies received[13] Investment Activities - Short-term borrowings surged by 270.18% to ¥370,491,791.68, mainly due to increased short-term borrowings by subsidiaries[13] - Cash paid for other investment activities increased by 883.33% to ¥2,950,000,000.00, mainly due to the inclusion of Hisense Hitachi data and increased purchases of financial products[13] - The investment activities generated a net cash flow of CNY -482,308,570.24, a decrease from CNY 84,907,367.68 in the previous period[34] Other Information - The company did not engage in any repurchase transactions during the reporting period[10] - The company did not undergo an audit for the first quarter report[39] - The company did not apply new revenue and leasing standards for the current year[38]

Financial Performance - Hisense achieved operating revenue of 37.453 billion yuan in 2019, representing a year-on-year growth of 3.98%[6] - The net profit attributable to shareholders reached 1.793 billion yuan, marking a year-on-year increase of 30.22%[6] - The company's operating revenue for 2019 was ¥37,453,043,968.74, an increase of 3.98% compared to ¥36,019,598,304.79 in 2018[13] - The net profit attributable to shareholders for 2019 was ¥1,793,669,013.19, representing a 30.22% increase from ¥1,377,457,177.70 in 2018[13] - The net cash flow from operating activities reached ¥2,005,337,052.56, a significant increase of 91.10% compared to ¥1,049,366,564.25 in 2018[13] - The total assets at the end of 2019 amounted to ¥33,990,663,543.85, reflecting a 55.72% increase from ¥21,827,905,038.40 at the end of 2018[14] - The company maintained a weighted average return on equity of 22.21% for 2019, up from 19.79% in 2018[14] - The company's total revenue for 2019 reached approximately ¥37.45 billion, representing a year-on-year increase of 3.98%[33] - The air conditioning segment generated revenue of approximately ¥16.37 billion, with a year-on-year growth of 9.92%[34] - The refrigerator and washing machine segment accounted for approximately ¥16.13 billion in revenue, showing a slight increase of 0.34% year-on-year[34] Market Position and Strategy - Hisense, Hitachi, and York brands collectively captured the number one market share in the multi-split central air conditioning sector in 2019[6] - The refrigerator and washing machine sectors saw record revenues, with profits reaching the highest level in nearly five years[6] - The company plans to focus on high-quality product strategies, targeting market opportunities in consumer upgrades and niche markets in 2020[7] - The central air conditioning industry will continue to solidify its leading position in technology and quality[7] - The refrigerator segment will emphasize fresh-keeping technology, while the washing machine sector will focus on steam washing innovations[7] - Hisense aims to strengthen its market position in the fresh air product segment, promoting a brand message of rapid air renewal[7] - The company has expanded its market presence, achieving the highest market share in the multi-split air conditioning sector with brands like "Hitachi," "Hisense," and "York" combined[19] - The company launched new products such as the "New Wind" series air conditioners and the "Vacuum" series refrigerators, enhancing product competitiveness[30] Research and Development - The total R&D investment for 2019 was ¥1,134,754,777, representing 3.03% of operating revenue, an increase from 2.80% in 2018[45] - The company has made significant advancements in central air conditioning technology, focusing on energy efficiency and comfort control[21] - The vacuum preservation technology in refrigerators extends the freshness of fruits and vegetables by 4 days and meat by 6 days[21] - The company maintained a strong focus on technological innovation, launching products with advanced features such as AI tracking and virus removal capabilities[31] Financial Management and Investments - The company reported a significant increase in net profit from non-recurring gains, totaling ¥216,374,590.77 for the year[18] - The company reported a total of ¥5,670,186,917 in sales expenses, reflecting a year-on-year increase of 13.27%[43] - The company’s investment activities resulted in a net cash outflow of ¥80,229,014, a significant change from a net inflow of ¥228,412,946 in 2018[46] - The company reported a significant adjustment in its financial statements, with trading financial assets amounting to 540,207,350.00 and accounts receivable adjustments totaling 2,962,019,185.36[76] Corporate Governance and Compliance - The company has maintained its commitment to independence in personnel, assets, finance, organization, and business following major asset sales[73] - The company has not reported any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[75] - The company has consistently fulfilled its commitments regarding related party transactions and competitive business practices since 2010[72] - The company did not face any major litigation or arbitration matters during the reporting period[83] - The company reported no penalties or rectification measures during the reporting period[84] Environmental Responsibility - The company has complied with environmental protection regulations and does not have any cases of exceeding discharge standards[96] - The total discharge of industrial wastewater COD was 1.94 tons, which is compliant with the required standards[97] - The company has established wastewater and exhaust gas treatment facilities that meet national standards[98] Shareholder Information - The total number of shares is 1,362,725,370, with 99.92% being unrestricted shares[102] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the shares, totaling 516,758,670 shares[107] - The second largest shareholder, Hong Kong Central Clearing (Agent) Limited, holds 33.55% of the shares, totaling 457,193,069 shares[107] - The company has maintained a cash dividend policy that aligns with its articles of association and shareholder resolutions[67] Workforce and Management - The total number of employees in the company is 34,500, with 14,715 in production, 14,534 in sales, and 4,195 in technical roles[131] - The company reported a total remuneration of 869.11 million yuan for directors, supervisors, and senior management during the reporting period[129] - The company has a total of 0 retired employees that need financial support, reflecting a stable workforce[131] - The company has established a comprehensive talent development system, including a management training system and an international talent cultivation project to meet its globalization needs[133] Audit and Internal Controls - The company reported that the 2019 annual financial statements accurately reflect its operating conditions, with a standard unqualified audit opinion issued by the auditors[143] - The internal control evaluation report for 2019 was deemed comprehensive and objective, confirming that the internal control system is effective and meets legal requirements[147] - The company confirmed that there were no major deficiencies in internal controls during the reporting period, ensuring the integrity of financial reporting[149]

Financial Performance - Operating revenue for the reporting period was ¥8.06 billion, a decrease of 4.48% compared to the same period last year[5] - Net profit attributable to shareholders of the listed company was ¥389.21 million, an increase of 9.56% year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥219.14 million, down 16.97% year-on-year[5] - Basic earnings per share for the reporting period were ¥0.29, up 11.54% year-on-year[5] - The weighted average return on net assets was 4.83%, a decrease of 0.28 percentage points compared to the previous year[5] - Total revenue for Q3 2019 was CNY 8,059,800,454.42, a decrease of 4.48% compared to CNY 8,437,634,566.46 in the same period last year[28] - The net profit for Q3 2019 was CNY 393,239,594.22, an increase of 8.25% compared to CNY 363,359,521.48 in the same period last year[29] - The total profit for the period was CNY 409,435,425.55, compared to CNY 378,162,801.90, indicating a growth of 8.5%[29] - The total comprehensive income for the period was CNY 395,355,999.67, compared to CNY 372,989,418.18, an increase of 6.0%[30] - The total operating profit for Q3 2019 was approximately CNY 753.26 million, an increase from CNY 606.93 million in the same period last year, representing a growth of about 24.1%[37] - The net profit for Q3 2019 reached CNY 744.52 million, compared to CNY 603.99 million in Q3 2018, marking an increase of approximately 23.3%[37] Assets and Liabilities - Total assets at the end of the reporting period reached ¥33.18 billion, an increase of 52.01% compared to the end of the previous year[5] - The total number of ordinary shareholders at the end of the reporting period was 30,858, with the top ten shareholders holding significant stakes[8] - The company's cash and cash equivalents increased by 164.60% to RMB 9,654,007,614.02 from RMB 3,648,463,609.61[14] - Accounts receivable rose by 31.59% to RMB 4,074,710,354.28 compared to RMB 3,096,454,625.34[14] - Long-term equity investments decreased significantly by 86.27% to RMB 456,717,533.18 from RMB 3,326,783,023.78[14] - The total liabilities increased by 53.08% to RMB 8,331,445,637.11 from RMB 5,442,369,087.15[14] - The total current assets reached ¥25,358,678,127.45, a significant increase from ¥14,296,847,647.89 in the previous year, reflecting a growth of approximately 77%[23] - The total liabilities increased to ¥20,844,570,974.74 from ¥13,506,485,629.82, representing a growth of approximately 54%[24] - Total liabilities amounted to CNY 1,225,973,570.63, slightly up from CNY 1,209,500,954.96, indicating a 1.37% increase[28] - Total liabilities amounted to CNY 13,938,498,061.67, a slight decrease from CNY 13,979,644,136.40 in the previous period[44] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥2.48 billion, an increase of 35.12% compared to the previous year[5] - Cash inflows from operating activities totaled CNY 21.64 billion, a decrease from CNY 22.40 billion year-over-year, indicating a decline of about 3.4%[38] - Cash outflows from operating activities were CNY 19.15 billion, down from CNY 20.56 billion in the previous year, showing a reduction of approximately 6.8%[38] - The net cash flow from operating activities for Q3 2019 was CNY 2.48 billion, an increase from CNY 1.84 billion in Q3 2018, representing a growth of about 35.1%[38] - Cash inflows from investment activities amounted to CNY 6.58 billion, significantly higher than CNY 2.49 billion in the same period last year, indicating an increase of approximately 164.5%[39] - The net cash flow from investment activities was CNY 2.40 billion, compared to CNY 330.37 million in the previous year, reflecting a substantial increase of around 626.5%[39] - The net cash flow from financing activities was negative CNY 1.28 billion, an improvement from negative CNY 1.62 billion in Q3 2018, indicating a reduction in cash outflow of about 21.0%[39] Investments and Expenses - Research and development expenses increased to CNY 200,098,800.23, compared to CNY 174,324,437.74, marking a rise of 14.7%[29] - Investment income rose to CNY 278,190,097.89, compared to CNY 225,988,206.44, reflecting a growth of 22.9%[29] - The company reported a decrease in financial expenses to CNY 5,408,393.92 from CNY 19,018,477.20, a reduction of 71.5%[29] - Research and development expenses increased to approximately ¥577.28 million, up 16.93% from ¥493.78 million in the previous period[34] - Investment income for the current period is approximately ¥776.20 million, an increase of 22.52% from ¥633.42 million in the previous period[34] Shareholder Information - Net assets attributable to shareholders of the listed company amounted to ¥8.28 billion, reflecting a growth of 12.64% year-on-year[5] - The total equity attributable to shareholders increased to CNY 8,281,039,107.99 from CNY 7,351,824,364.87, a rise of 12.6%[27] - The company reported a total of CNY 1,362,725,370.00 in share capital, unchanged from the previous period[44] - The retained earnings stood at CNY 3,339,456,580.66, consistent with the previous period[44] Compliance and Standards - The company has adopted the new leasing standards effective January 1, 2019, impacting the measurement of lease liabilities[45] - The cumulative impact of the new leasing standards was adjusted against retained earnings as of January 1, 2019[45] - The company did not adjust comparative information for prior periods under the new leasing standards[45] - The third-quarter report was not audited, indicating a potential area for further scrutiny[46]