Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [5][8]. Core Insights - The company achieved a revenue of 79.12 billion RMB in Q1 2025, reflecting a year-over-year (YOY) growth of 10.0%. The net profit attributable to shareholders was 5.49 billion RMB, with a YOY increase of 15.1% [5]. - The growth in emerging markets is robust, with overseas revenue increasing by 13% YOY. Notably, South Asia, Southeast Asia, and the Middle East and Africa markets saw revenue growth exceeding 30%, 20%, and 50%, respectively [5]. - Domestic sales benefited from national subsidy policies, with a 7.8% YOY growth in Q1 2025, particularly in high-end brands like the Casarte series, which grew over 20% [5]. - The gross margin slightly increased to 25.4%, up by 0.1 percentage points YOY, driven by digital transformation in procurement, R&D, and manufacturing [5]. - The company launched a core employee stock ownership plan to enhance employee motivation, with a target return on equity (ROE) of over 17.7% [5]. Financial Projections - The company forecasts net profits of 21.66 billion RMB, 23.73 billion RMB, and 26.29 billion RMB for 2025, 2026, and 2027, respectively, with YOY growth rates of 15.6%, 9.5%, and 10.8% [7]. - Earnings per share (EPS) are projected to be 2.31 RMB, 2.53 RMB, and 2.80 RMB for the same years, with corresponding growth rates of 14.27%, 9.54%, and 10.81% [7]. - The report indicates that the H-share price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are expected to be 9X, 8X, and 7.59X, respectively, suggesting that the stock is undervalued [5][7]. Market Position - The company has a diversified product portfolio, with refrigerators accounting for 29.3%, washing machines for 22.2%, and air conditioners for 17.2% of its revenue [5]. - The total market capitalization of the company is approximately 185.97 billion RMB, with a share price of 22.90 HKD as of May 6, 2025 [5].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [5][8]. Core Insights - The company achieved a revenue of RMB 79.12 billion in Q1 2025, representing a year-over-year (YOY) growth of 10.0%. The net profit attributable to shareholders was RMB 5.49 billion, with a YOY increase of 15.1% [5]. - Emerging markets are driving rapid growth, with overseas revenue increasing by 13% YOY. Notably, South Asia, Southeast Asia, and the Middle East and Africa saw revenue growth exceeding 30%, 20%, and 50%, respectively [5]. - Domestic sales benefited from national subsidy policies, with a YOY growth of 7.8%, particularly in high-end brands like the Casarte series, which grew over 20% [5]. - The gross margin slightly increased to 25.4%, up by 0.1 percentage points YOY, driven by digital transformation in procurement, R&D, and manufacturing [5]. - The company launched a core employee stock ownership plan to enhance employee motivation, covering a wide range of participants [5]. Financial Summary - The company forecasts net profits of RMB 21.66 billion, RMB 23.73 billion, and RMB 26.29 billion for 2025, 2026, and 2027, respectively, with YOY growth rates of 15.6%, 9.5%, and 10.8% [7]. - Earnings per share (EPS) are projected to be RMB 2.31, RMB 2.53, and RMB 2.80 for the same years, with corresponding growth rates of 14.27%, 9.54%, and 10.81% [7]. - The H-share price-to-earnings (P/E) ratios are expected to be 9X, 8X, and 8X for 2025, 2026, and 2027, indicating a low valuation [5][7]. - The dividend per share (DPS) is projected to be RMB 1.15, RMB 1.26, and RMB 0.98 for the next three years, with a dividend yield of approximately 4.59% [7].

Financial Performance - In 2024, Haier Smart Home achieved a global revenue of CNY 285.971 billion, representing a year-on-year growth of 4.3%, and a net profit attributable to shareholders of CNY 18.741 billion, up 12.9% year-on-year[11]. - The net cash flow from operating activities for 2024 was CNY 26.543 billion, which is 1.4 times the net profit[12]. - The company reported a significant increase in revenue, achieving a total of $1.5 billion, representing a 20% year-over-year growth[1]. - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next quarter, aiming for $1.875 billion[3]. - The company achieved a revenue of 285.971 billion yuan in 2024, representing a 4.3% increase compared to the same period in 2023[60]. - The net profit attributable to shareholders of the parent company for 2024 was 18.741 billion yuan, an increase of 12.9% year-on-year[60]. - The adjusted operating profit for 2024 is forecasted at RMB 20,437 million, reflecting a 14.9% increase from RMB 17,793 million in 2023[173]. - The gross profit margin for 2024 was approximately 27.2%, an increase of 0.3 percentage points year-on-year[184]. Market Expansion - In the U.S. market, GE Appliances' HVAC revenue grew by 70%, and the company achieved double-digit growth in RV appliances[15]. - Haier's revenue in India surpassed USD 1 billion for the first time in 2024, with a year-on-year growth of over 30%[17]. - The company completed the acquisition of Kwikot, a leading water heater manufacturer in South Africa, to accelerate the globalization of its water industry[23]. - The company completed the acquisition of Carrier's commercial refrigeration business, expanding into retail refrigeration and cold storage, creating new growth points[25]. - The company is focused on expanding its overseas business operations, achieving notable results in management and operations[39]. - The company plans to enter three new international markets by Q3 2024[6]. - The company has expanded its manufacturing capabilities in Indonesia and Bangladesh, and the efficiency of the Egypt factory has rapidly improved since its launch in March 2024[82]. Product Innovation - The company launched new products such as the Apex oven and a new generation of stainless steel dishwashers, which received widespread recognition[15]. - The company introduced a new washing machine design that quickly pre-sold over 88,000 units within a week, showcasing its engagement with younger consumers[35]. - The company launched innovative products, including the TX refrigerator series with industry-leading preservation technology and a compact 8kg washing machine, which has significantly boosted sales[109]. - The company has successfully integrated advanced technologies from GE Appliances and others, enhancing user experience and energy efficiency in kitchen appliances[70]. - The company has introduced innovative laundry solutions, including a washing machine that combines washing, drying, and garment care[136]. Sustainability and ESG - The company launched numerous energy-saving and carbon-reducing green products globally in 2024, enhancing its commitment to sustainable development[31]. - The company was recognized as one of the "World's Best Employers" by Forbes for eight consecutive years and achieved an MSCI ESG rating upgrade to AA[32]. - Haier is committed to a "6 Green" strategy for sustainable development, integrating low-carbon and circular economy principles into its operations[161]. - The company is focusing on upgrading its smart heating and cooling solutions, enhancing its global market competitiveness in the HVAC sector[164]. Digital Transformation - The company has implemented a digital transformation strategy, enhancing operational efficiency and optimizing costs[39]. - The company aims to enhance its global supply chain resilience and efficiency by optimizing its supply chain network and establishing a diversified supplier system[168]. - The company has established a digital transformation strategy, enhancing operational efficiency and user experience, with a 24.7% conversion rate for new media marketing[110]. - The company is leveraging digital inventory systems to improve product turnover and reduce operational costs, enhancing overall business competitiveness[167]. Awards and Recognition - The company has won 17 national science and technology progress awards, with its home preservation technology recognized as the only award-winning technology in its category in 40 years[27]. - The company has received multiple awards for leadership and contributions to the home appliance industry, enhancing its brand reputation[39]. - The company has been recognized in multiple rankings, including Fortune's Global 500 and BrandZ's Top 100 Most Valuable Global Brands, highlighting its influence and leadership in the industry[142]. Strategic Acquisitions - The company completed a strategic acquisition of a tech startup for $100 million, enhancing its product offerings[7]. - The company has completed the acquisition of Electrolux's leading water heater business in South Africa, which will enhance its market presence in the region[108]. - The acquisition of the century-old South African water heater brand Kwikot expanded the company's market presence in Africa, significantly increasing brand awareness and market share[147]. Consumer Engagement - The Leader brand's market retail sales increased by 26% year-on-year in 2024, driven by innovative product design and marketing strategies targeting young consumers[26]. - The company has seen significant growth in both online and offline business revenues due to marketing channel reforms and the high-end brand strategy[39]. - A new marketing strategy was introduced, focusing on digital channels, which is expected to increase customer engagement by 30%[8]. Operational Efficiency - The company’s management expense ratio is expected to improve by 0.1 percentage points to 8.6% in 2024, benefiting from digital tools that enhance organizational efficiency[62]. - The company aims to optimize its supply chain with an agile response model, improving order response time by 13% and reducing customer capital occupation time by 7 days[111]. - The company has established a financial shared service center, pioneering a "cloud + end" financial management innovation model[42].

Financial Performance - Haier Smart Home reported a revenue of RMB 285,971 million for the year ended December 31, 2024, representing a 4.3% increase from RMB 274,198 million in 2023[2]. - The gross profit for the same period was RMB 77,843 million, up 5.7% from RMB 73,641 million in the previous year[2]. - Adjusted operating profit increased by 14.9% to RMB 20,437 million compared to RMB 17,793 million in 2023[2]. - Net profit attributable to shareholders rose by 12.9% to RMB 18,741 million from RMB 16,597 million in 2023[2]. - Basic earnings per share increased by 12.8% to RMB 2.02, compared to RMB 1.79 in the previous year[2]. - The company proposed a dividend of RMB 9.65 per 10 shares, up from RMB 8.04 in 2023[2]. - Total revenue for the year ended December 31, 2024, reached RMB 372,070 million, an increase from RMB 356,766 million in the previous year, representing a growth of approximately 4.3%[27][28]. - The pre-tax profit for the year ended December 31, 2024, was RMB 22,733 million, compared to RMB 20,211 million in the previous year, reflecting an increase of approximately 12.5%[27][28]. - The total assets as of December 31, 2024, amounted to RMB 290,114 million, an increase from RMB 261,068 million, showing a growth of around 11.1%[29][30]. - The total liabilities as of December 31, 2024, were RMB 171,725 million, compared to RMB 153,538 million in the previous year, representing an increase of approximately 11.8%[29][30]. Market Expansion and Strategy - The company is focused on expanding its market presence and enhancing its product offerings in the smart home sector[12]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[27]. - The company is actively addressing risks related to tariffs and trade measures that could impact supply chain costs and market demand[174]. - The company is enhancing supply chain resilience and efficiency by optimizing network layout and establishing a diversified supplier system[173]. - The company is focusing on high-end brand development in overseas markets, tailoring strategies to meet diverse consumer needs[170]. - The company is expanding into emerging industries such as smart elderly care and household service robots, aligning with trends in aging and low-carbon economies[171]. Product Development and Innovation - Research and development expenses increased to RMB 10,740 million, compared to RMB 10,380 million in 2023, indicating a focus on innovation[39]. - The company aims for over 50% of its new products to be launched by 2025, enhancing its product iteration speed[53]. - The company launched innovative products in 2024, including a refrigerator with a 98% nutrient retention rate and a washing machine with a global leading design, enhancing its competitive edge in the market[161]. - The company utilizes a global collaborative platform for product development, significantly enhancing product quality and development precision through shared resources and expertise[157]. - The company has implemented a unified model for training young engineers, fostering talent development and improving product innovation capabilities[158]. Acquisitions and Partnerships - A voting rights entrustment agreement was established, allowing the company to control 100% of the voting rights of Youjin, which holds 55% of the shares, effective from December 20, 2024[18]. - The company completed the acquisition of Kwikot, a leading water heater manufacturer in South Africa, to accelerate its global expansion in the water industry[54]. - The acquisition of Carrier's commercial refrigeration business will expand the company's presence in retail and cold storage refrigeration, creating new growth points[55]. - The company expanded its market presence through strategic acquisitions, including the commercial refrigeration business of Carrier and the South African water heater leader Kwikot[180]. Financial Position and Assets - Total assets increased to RMB 160,427 million in 2024 from RMB 151,762 million in 2023, reflecting a growth in both current and non-current assets[6][7]. - The company's net asset value increased to RMB 118,389 million in 2024, up from RMB 107,530 million in the previous year[9]. - The company's overseas assets amounted to RMB 139,690 million, representing 48.2% of total assets as of December 31, 2024[179]. Operational Efficiency - The company reported a cash and cash equivalents balance of RMB 54,981 million as of December 31, 2024, compared to RMB 56,683 million in the previous year[29][30]. - The net cash flow from operating activities in 2024 was RMB 26.543 billion, which is 1.4 times the net profit[49]. - The company is managing inventory levels to avoid excess or shortages, which could impact sales opportunities[176]. - The company is focusing on capital expenditure risk management by optimizing capacity layout and improving utilization efficiency in response to macroeconomic changes[176]. Sustainability and ESG Efforts - The company is committed to sustainable development and has received an AA rating from MSCI for its ESG efforts, leading the domestic home appliance industry[150]. - The company has implemented a global ESG governance framework, enhancing its organizational structure to support sustainable development initiatives[167]. Market Share and Competitive Position - The company has maintained its position as the global leader in large home appliance retail volume for 16 consecutive years[141]. - The company holds the leading market share in major home appliance categories in China, with the Casarte brand capturing 49% in high-end refrigerators, 34% in air conditioners, and 88% in washing machines priced above 15,000 yuan[151]. - The company achieved a global market share of 25.9% in Asia, 24.5% in North America, 15.9% in Australia and New Zealand, and 8% in Western Europe for major home appliances[148].

Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (6690 HK) with a target price of HK$34.10, indicating a potential upside of +30% from the current price of HK$26.20 [1]. Core Views - The report anticipates a low double-digit growth in net profit for 2025, driven by continued digital transformation in both domestic and overseas markets [6][7]. - Domestic revenue is expected to grow approximately 4% year-on-year in 2025, while overseas revenue is projected to increase by around 5% [6][7]. - The overall revenue growth for 2025 is estimated at about 4%, with a focus on product innovation and market expansion strategies [4][5][6]. Summary by Sections Financial Performance - For 2025, the estimated revenue is projected to be RMB 283.4 billion, with a year-on-year growth of 4.4% [7][9]. - The net profit for 2025 is expected to reach RMB 21.2 billion, reflecting a growth of 10.7% compared to 2024 [7][9]. - Earnings per share (EPS) for 2025 is forecasted at RMB 2.26, with a corresponding P/E ratio of 10.5 [6][7]. Revenue Breakdown - Domestic sales are projected to grow by approximately 4%, with specific growth in the refrigerator and washing machine segments [4]. - The air conditioning segment is expected to see a revenue increase of around 8% due to improved sales strategies and market conditions [4]. - Overseas revenue growth is anticipated at about 5%, with significant contributions from North America and Europe [5]. Valuation - The target price of HK$34.10 corresponds to a P/E ratio of 14 times the estimated earnings for 2025, indicating a favorable valuation compared to current market prices [6][7]. - The report maintains a 10% discount rate for Haier's A/H shares, reinforcing the target price stability [6].

Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (6690 HK) with a target price of HKD 37.59, indicating a potential upside of 26.1% from the current closing price of HKD 29.80 [1][3][8]. Core Insights - Haier's overseas business continues to drive revenue growth, with a 3.8% year-on-year increase in Q3, while domestic sales declined by 3% [2][3]. - The company has improved its localization in the U.S. market, increasing its self-manufacturing and sales ratio to 98%, which enhances its ability to mitigate potential tariff risks [2]. - The overall profit outlook for the year remains positive, with expectations of a 15% growth in net profit [3]. Financial Performance Summary - For the first three quarters of 2024, Haier's revenue and net profit grew by 2.2% and 15.3% year-on-year, reaching RMB 203 billion and RMB 15.1 billion, respectively [1]. - In Q3 alone, revenue and net profit showed a slight increase of 0.5% and 13.2% year-on-year, with a gross margin improvement to 31.3% [1][2]. - The company has optimized its expense ratios, with sales and management expense ratios improving by 0.5% and 0.1% year-on-year in Q3 [1]. Revenue and Profit Forecast - Revenue projections for Haier are set to increase from RMB 261.4 billion in 2023 to RMB 273.3 billion in 2024, reflecting a growth rate of 4.5% [5]. - Net profit is expected to rise from RMB 16.6 billion in 2023 to RMB 19.6 billion in 2024, indicating a growth rate of 17.9% [5]. - The earnings per share (EPS) is forecasted to grow from RMB 1.79 in 2023 to RMB 2.11 in 2024 [5].

Investment Rating - The report maintains a "BUY" rating for Haier Smart Home and raises the target price to HK$ 36.41, reflecting a 22.2% upside from the current price of HK$ 29.80 [1][4]. Core Insights - Haier's 3Q24 results were in line with expectations, with a 1% YoY sales increase to RMB 67.3 billion and a 13% YoY net profit growth to RMB 4.7 billion. The company is expected to see a decent pickup in 4Q24 due to favorable macroeconomic conditions and internal efficiency improvements [1][6]. - The management has set a net profit growth target of 15% per annum, supported by various cost-saving initiatives and operational efficiency gains [1][6]. - The report highlights significant sales growth drivers, including improved sales trends in China, strong demand for the Casarte brand, and positive developments in the US and European markets [1][6]. Financial Summary - Revenue is projected to grow from RMB 271.8 billion in FY24E to RMB 304.8 billion in FY26E, with a CAGR of 5.4% [2][11]. - Net profit is expected to increase from RMB 19.8 billion in FY24E to RMB 24.5 billion in FY26E, reflecting a strong growth trajectory [2][11]. - The report revises FY24E/25E/26E net profit forecasts upward by 1%/3%/2% to account for efficiency gains and cost savings [1][7]. Operational Efficiency - Haier is implementing a series of reforms aimed at enhancing operational efficiency, including digitalization efforts and structural changes in procurement and R&D processes [1][6]. - The acquisition of Goodday, a logistics provider, is expected to yield significant synergies, including a 20-30% reduction in inventory levels and a 10% decrease in total logistics costs [1][6]. Market Position - Haier's stock is currently trading at 13x/11x FY24E/FY25E P/E, which is below its 5-year average of 15x, indicating potential undervaluation [1][4]. - The company is focusing on expanding its direct-to-consumer (DTC) business model and enhancing brand equity through value-added products and services [1][6].

Market Position and Growth - Haier Smart Home Co., Ltd. has maintained its position as the global leader in major appliance retail for 15 consecutive years, with significant market presence in over 160 countries[2]. - The company reported a continuous top position in global retail sales of refrigeration and laundry appliances for 16 and 15 years respectively[2]. - The company is actively expanding its market presence and product offerings, focusing on smart home solutions to meet diverse consumer needs[2]. - The management discussion highlights future growth prospects and performance guidance, focusing on expanding market share in emerging regions[2]. - The company plans to continue expanding its market presence and investing in new technologies[18]. - The company completed the acquisition of 100% equity in Zhengzhou Haiyong New Enterprise Management Co., Ltd. for approximately RMB 25 million in December 2023, using the merger accounting method[30]. - The company completed the acquisition of Electrolux South Africa, enhancing its strategic deployment in the African market[140]. Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 135,621 million, an increase of 3.8% from RMB 131,616 million in the same period of 2023[11]. - Gross profit for the same period was RMB 40,784 million, up from RMB 39,216 million, reflecting a gross margin improvement[11]. - Net profit attributable to the company's owners was RMB 10,420 million, a significant increase of 16.2% compared to RMB 8,963 million in the prior year[12]. - Basic earnings per share increased to RMB 1.13 from RMB 0.96, representing a growth of 17.7%[12]. - Total comprehensive income for the period was RMB 10,272 million, compared to RMB 9,180 million in the previous year, marking a 11.9% increase[11]. - For the six months ended June 30, 2024, the company reported a pre-tax profit of RMB 12,739 million, an increase of 14.6% compared to RMB 11,114 million for the same period in 2023[21]. - The company reported a total comprehensive income of RMB 108,584 million for the period[19]. - The company’s interest income increased to RMB 798 million from RMB 411 million, reflecting a growth of 94% year-over-year[21]. Assets and Liabilities - Non-current assets totaled RMB 127,733 million as of June 30, 2024, up from RMB 120,759 million at the end of 2023[14]. - Current assets amounted to RMB 134,517 million, an increase from RMB 132,621 million at the end of 2023[14]. - Total liabilities increased to RMB 153,666 million from RMB 144,468 million, indicating a rise in financial obligations[15]. - The company's net asset value was RMB 108,584 million, up from RMB 105,912 million, reflecting a solid equity position[15]. - Total equity reached RMB 105,912 million, an increase of 10,607 million compared to the previous period[19]. - The group’s interest-bearing borrowings amounted to RMB 30,067 million as of June 30, 2024, compared to RMB 28,396 million as of December 31, 2023, reflecting an increase of approximately 5.89%[92]. Cash Flow and Investments - The net cash generated from operating activities was RMB 7,818 million, compared to RMB 6,790 million in the same period last year, representing an increase of 15.1%[22]. - The company experienced a net cash outflow from investing activities of RMB 7,334 million, compared to RMB 4,333 million in the previous year, indicating a significant increase in investment expenditures[22]. - The company reported a decrease in financing cash flow net amounting to RMB (191) million, compared to RMB (1,269) million in the previous year, indicating improved financing management[22]. - The group acquired properties, plants, and equipment amounting to RMB 3,052 million for the six months ended June 30, 2024, compared to RMB 2,845 million for the same period in 2023[79]. Segment Performance - The segment revenue from the refrigerator and freezer business was RMB 41.128 billion, showing a growth from RMB 40.405 billion in the previous year, while the air energy solution segment generated RMB 29.235 billion, up from RMB 28.176 billion[37][39]. - The company reported segment performance with the home food preservation and cooking solutions generating a profit of RMB 3.539 billion, while the home laundry solutions segment reported a profit of RMB 3.090 billion[37]. - Revenue from the home food preservation and cooking solutions segment, specifically refrigerators/freezers, increased by 1.8% to RMB 41,128 million from RMB 40,405 million in the previous year[191]. - Revenue from air energy solutions, particularly air conditioning, rose by 3.8% to RMB 29,235 million from RMB 28,176 million in the previous year[193]. - Revenue from the home laundry solutions segment, specifically washing machines, increased by 5.0% to RMB 29,737 million from RMB 28,314 million in the previous year[194]. Innovation and Product Development - Haier's smart home solutions are supported by the Haier Smart Home Experience Cloud platform, integrating various smart appliances and user scenarios[2]. - The company emphasizes its commitment to sustainability and innovation in product development, aligning with global trends in smart home technology[2]. - The company continues to invest in research and development to advance its product lines and maintain competitive advantage in the appliance market[2]. - The company launched a new generation of dishwashers in North America, investing USD 118 million to upgrade production lines[128]. - The company introduced innovative products such as the Casa Di refrigerator series, achieving a 98% year-on-year sales growth in the first half of 2024[124]. Market Trends and Challenges - The overall white goods market in China saw a retail value decline of 6.2% in the first half of 2024, with a volume drop of 2.4%[164]. - The company faces risks from macroeconomic slowdown, which could negatively impact market demand for durable consumer goods[181]. - The company aims to enhance profitability through product upgrades, local supply chain layout, and digital transformation across all processes[180]. - The company will manage inventory levels to avoid excess stock and lost sales opportunities, regularly assessing inventory impairment[183].

Investment Rating - The report maintains a "BUY" rating for Haier Smart Home with a target price (TP) of HK$ 31.58, reflecting an upside potential of 31.3% from the current price of HK$ 24.05 [2][3]. Core Insights - The sales growth slowdown in 2Q24 was unexpected, but margin improvements were notable. The outlook for 2H24 is positive, driven by government subsidies, potential interest rate cuts, new product launches, and margin recovery in the EU [2][6]. - The "old for new" trade subsidies initiated in August 2024 are expected to favor high-end products, with significant sales growth observed in home appliances, particularly in Hubei province, where sales increased by 30% YoY [2][6]. - Haier's FY24E guidance remains unchanged, targeting mid-single-digit sales growth in China and over 10% growth overseas, with specific categories like air-conditioners and kitchen appliances expected to perform well [2][6]. Financial Summary - Revenue projections for FY24E are set at RMB 273.7 billion, with a YoY growth of 4.7%. Net profit is expected to reach RMB 19.6 billion, reflecting a 15.2% growth [3][12]. - The report indicates a fine-tuning of net profit forecasts for FY24E, FY25E, and FY26E by +1%/-1%/-1% respectively, accounting for slower sales growth but improved operating leverage and efficiency gains [2][7]. - The earnings summary shows a consistent increase in revenue and net profit over the forecast period, with net profit margins improving from 7.1% in FY24E to 7.7% in FY26E [3][12]. Market Position and Competitive Advantage - Haier is positioned to benefit from the ongoing subsidy programs, with a significant portion of local sales companies and distributors engaged in discussions with the government [2][6]. - The company is expected to leverage its market leadership to capture more high-end demand, with Casarte brand products showing exceptional sales growth [2][6]. - The report highlights Haier's strategic focus on high-end product sales and operational efficiencies, which are anticipated to enhance gross and operating margins in the upcoming periods [6][7].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 135,621 million, a 3.0% increase from RMB 131,616 million in the same period of 2023[3]. - Gross profit for the same period was RMB 40,784 million, reflecting a 4.0% increase from RMB 39,216 million year-over-year[3]. - Adjusted operating profit rose by 18.8% to RMB 11,375 million compared to RMB 9,577 million in the previous year[3]. - Net profit for the period was RMB 10,607 million, up 17.3% from RMB 9,044 million in the prior year[3]. - Basic earnings per share increased to RMB 1.13, a 17.7% rise from RMB 0.96 in the same period last year[3]. - Total comprehensive income for the period was RMB 10,272 million, compared to RMB 9,180 million in the previous year[6]. - Other income for the six months ended June 30, 2024, amounted to RMB 1,844 million, compared to RMB 1,690 million in the same period of 2023, reflecting an increase of about 9.1%[24]. - Financing costs for the six months ended June 30, 2024, totaled RMB 1,217 million, up from RMB 884 million in the same period of 2023, indicating a rise of approximately 37.7%[26]. - Income tax expense for the six months ended June 30, 2024, was RMB 2,132 million, compared to RMB 2,070 million in the same period of 2023, showing an increase of about 3.0%[27]. - The company reported a pre-tax profit of RMB 12,739 million for the six months ended June 30, 2024, compared to RMB 11,114 million for the same period in 2023, marking a growth of around 14.6%[17]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled RMB 127,733 million, an increase from RMB 120,759 million at the end of 2023[7]. - Current assets amounted to RMB 134,517 million, up from RMB 132,621 million at the end of the previous year[7]. - Total non-current liabilities amounted to RMB 27,949 million, up from RMB 27,385 million, indicating a growth of 2.1%[8]. - The company's total equity reached RMB 108,584 million, an increase of 2.0% from RMB 105,912 million[8]. - The total assets of the company as of June 30, 2024, amounted to RMB 262,250 million, an increase from RMB 220,031 million reported previously[19]. - The total liabilities stood at RMB 153,666 million, reflecting a slight increase from the previous reporting period[19]. - The company's net asset value increased by 2.5% from RMB 105,912 million on December 31, 2023, to RMB 108,584 million on June 30, 2024[111]. Market and Segment Performance - The segment revenue from the Refrigerators and Freezers business was RMB 41,128 million, up from RMB 40,405 million, indicating a growth of about 1.8% year-over-year[18]. - The Air Energy Solutions segment reported revenue of RMB 29,235 million, compared to RMB 28,176 million in the previous year, reflecting an increase of approximately 3.8%[18]. - The kitchen appliance segment achieved global revenue of RMB 20.275 billion, a 0.3% increase year-on-year[42]. - The laundry care segment reported global revenue of RMB 29.737 billion, a 5.0% increase compared to the same period in 2023[45]. - The company’s overseas revenue maintained rapid growth, benefiting from long-term strategic investments in product iteration and professional channel network construction[51]. - In the North American market, the company achieved revenue of 39.079 billion yuan, outperforming the industry despite a decline in the overall market demand[63]. - The European market generated revenue of 14.505 billion yuan, reflecting a 9.2% year-on-year growth, with a market share increase of 0.1 percentage points[65]. - The South Asia market achieved a revenue of 6.542 billion yuan, with a year-on-year growth of 9.9%, and over 25% growth in the Indian market[68]. Strategic Initiatives - The company is focused on expanding its product offerings in smart home solutions, including refrigerators, kitchen appliances, and air conditioning systems[9]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[17]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[17]. - The company plans to leverage the old-for-new exchange program in the domestic market to drive retail growth in the second half of 2024[90]. - The company aims to enhance profitability through product upgrades and supply chain localization in overseas markets[90]. - The company is focusing on digital transformation across its production, procurement, and quality systems to improve cost competitiveness[91]. Operational Efficiency - The company reported a net cash flow from operating activities of RMB 7.818 billion, an increase of RMB 1.028 billion compared to the same period in 2023[37]. - The inventory turnover days improved by 3 days to 79 days in the first half of 2024, attributed to effective inventory management[112]. - The accounts receivable and notes turnover days increased to 41 days in the first half of 2024, up by 3 days compared to the end of 2023, due to increased sales revenue[112]. Challenges and Risks - The company faces risks from macroeconomic slowdowns, intensified industry competition, and fluctuations in raw material prices[92]. - The company anticipates that the second half of 2024 will see a recovery in demand in developed countries as interest rates decrease, benefiting the appliance market[87]. Employee and Governance - The total number of employees decreased by 2.3% from 112,458 on December 31, 2023, to 109,925 on June 30, 2024[127]. - The board did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[130]. - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing financial reporting matters without any objections[133].