Financial Performance - In 2021, Haier Smart Home achieved a revenue of RMB 227.53 billion, representing a year-on-year growth of 15.8% after excluding the impact of disposed businesses[11]. - The net profit for 2021 was RMB 13.217 billion, an increase of 16.7% compared to 2020, while the profit attributable to shareholders rose by 47.1% to RMB 13.067 billion[11]. - In 2021, the company achieved revenue of RMB 227.53 billion, an increase of 8.5% compared to 2020 and 14.9% compared to 2019[65]. - The company's net profit for 2021 was RMB 13.217 billion, up 16.7% from 2020 and 7.2% from 2019; profit attributable to shareholders was RMB 13.067 billion, an increase of 47.1% from 2020 and 59.2% from 2019[65]. - The adjusted operating profit for 2021 was RMB 13,551 million, up 37.0% from RMB 9,893 million in 2020, driven by profit growth in both domestic and overseas smart home businesses[180]. - The overall gross margin for 2021 was 30.5%, an increase of 1.5 percentage points from 29.0% in 2020, primarily due to a higher proportion of high-end products[183]. - The net cash inflow from operating activities for 2021 was RMB 23,130 million, a 31.4% increase from the previous year, driven by rapid profit growth and improved operational efficiency[197]. Market Position and Growth - The company operates in over 160 countries and regions, maintaining its position as a global leader in the home appliance industry for 13 consecutive years[4]. - Haier's cooling and washing appliances ranked first in global retail volume for 14 and 13 consecutive years respectively[4]. - The company achieved a 203% revenue increase in the dryer business in China, securing the top market share[16]. - The company holds over 40% market share in the electric water heater segment in China, with gas water heater revenue increasing by 51% year-over-year[16]. - The company ranked third in the Chinese household air conditioning market in 2021, with a market share increase of over 2 percentage points[17]. - The company achieved a 25.1% overall market share in the Chinese home appliance market, an increase of 2.3 percentage points[88]. - The high-end brand Casarte saw revenue growth of over 40% year-on-year, reaching 12.9 billion yuan, with market shares of 73.9% and 36.2% in the washing machine and refrigerator segments, respectively[90]. Product Innovation and Development - The company is committed to global branding, scenario-based innovation, and digital efficiency improvements[10]. - Haier Smart Home is a pioneer in smart home solutions, leveraging its comprehensive range of home appliance products[4]. - The company has introduced innovative products such as the "zero-distance embedded refrigerator" and the "one machine with three functions" Casa Di washing and care machine[22]. - The company launched the Casarte Homey 505 and 506 series, securing the top market share in the online segment for products priced above 10,000 yuan[69]. - The company launched new high-capacity refrigerators and washing machines in India, increasing the high-end product revenue share to 34%[104]. - The company’s new product launches, such as the UV sterilization washing machine, contributed to a 33% increase in kitchen appliance revenue in the Australian market[102]. Operational Efficiency and Digital Transformation - The integration of Haier Appliances has begun to show synergy effects, optimizing operational efficiency[11]. - The company aims to enhance operational efficiency through digital transformation, focusing on end-to-end digital inventory sharing in the supply chain as a key project for 2022[23]. - The company reported a significant focus on digital transformation and smart manufacturing strategies, leveraging expertise in industrial 4.0[51]. - The company's digital transformation initiatives improved operational efficiency, with 50% of factories capable of quickly responding to orders using advanced algorithms[95]. Global Expansion and Market Strategy - The company plans to invest in the small appliance division, focusing on emerging categories such as cleaning appliances and personal care products[17]. - The company will leverage globalization benefits, integrating market growth opportunities across various regions, including strong development in the U.S. real estate and infrastructure sectors[19]. - Haier Smart Home Co., Ltd. has invested over $2 billion in the local supply chain and created 3,000 jobs in the U.S. over the past five years[21]. - The company aims to enhance its global market share through high-end product launches and optimizing its global supply chain[159]. Challenges and Risks - The company faces risks from macroeconomic slowdowns affecting market demand, which could negatively impact user purchasing power and industry growth[160]. - Price wars due to intensified industry competition and product homogeneity pose a risk, necessitating increased investment in R&D to maintain brand influence[161]. - Fluctuations in raw material prices, particularly metals and plastics, could pressure the company's production operations[161]. - The company is exposed to foreign exchange risks due to its global operations, which could impact its financial condition and increase costs[163]. Management and Governance - The management team is aligned with the founder's vision to provide consumers with an extraordinary home life experience[24]. - The supervisory board includes professionals with extensive backgrounds in finance and law, ensuring robust governance and compliance[57]. - The management team includes Mr. Gong Wei, who has been the CFO since January 2010, recognized as one of China's top CFOs in 2012[58]. Sustainability and Social Responsibility - The company is committed to sustainable economic development and fulfilling greater social responsibilities as expected by stakeholders[21]. - The company's "people-oriented" philosophy emphasizes maximizing employee value while creating user value, fostering a culture of innovation and entrepreneurship[128].

Company Performance - Haier Smart Home has maintained its position as the global leader in major appliances for 12 consecutive years, according to Euromonitor data[4]. - The retail volume of Haier's refrigeration and washing equipment has ranked first among global major appliance brands for 13 and 12 years respectively[4]. - Revenue for the six months ended June 30, 2021, was RMB 111,613 million, representing a 16.6% increase from RMB 95,723 million in the same period of 2020[11]. - Gross profit for the same period was RMB 32,934 million, up 25.5% from RMB 26,227 million year-on-year[11]. - Profit before tax increased to RMB 8,461 million, a 98.5% rise compared to RMB 4,273 million in the previous year[11]. - Net profit for the period was RMB 6,938 million, which is a 92.5% increase from RMB 3,612 million in 2020[11]. - Basic earnings per share rose to RMB 0.74, compared to RMB 0.42 in the same period last year, reflecting a 76.2% increase[12]. - The company reported a total comprehensive income of RMB 6,642 million for the period, significantly higher than RMB 3,351 million in the previous year, representing a 98.3% increase[12]. - The company reported a pre-tax profit of RMB 8,461 million for the six months ended June 30, 2021, compared to RMB 4,273 million in the same period of 2020, representing a year-over-year increase of 98.5%[22]. - The company reported a net profit attributable to shareholders of RMB 6,852 million, representing a 146.4% growth compared to RMB 2,781 million in the first half of 2020[136]. Financial Metrics - Non-current assets totaled RMB 90,103 million as of June 30, 2021, slightly up from RMB 89,196 million at the end of 2020[14]. - Inventory increased to RMB 33,508 million from RMB 29,447 million at the end of 2020, indicating a 13.9% rise[14]. - Trade receivables and notes receivable reached RMB 32,108 million, up from RMB 30,066 million, marking a 6.8% increase[14]. - Current liabilities totaled RMB 113,476 million, compared to RMB 109,474 million at the end of 2020, reflecting a 3.7% increase[14]. - The company's equity increased to RMB 75,200 million as of June 30, 2021, compared to RMB 68,111 million at the end of 2020, marking an increase of about 10.3%[15]. - The total issued equity reached RMB 6,580 million, with a notable increase in reserves to RMB 64,453 million from RMB 57,788 million, reflecting an increase of approximately 11.5%[15]. - The company reported a significant increase in retained earnings, which rose to RMB 32,469 million, indicating a strong performance in profit retention[17]. - The company’s interest-bearing borrowings decreased to RMB 9,627 million from RMB 11,858 million, a reduction of approximately 18.8%[15]. - The total liabilities were reported at RMB 131,047 million, indicating a manageable debt level relative to assets[39]. - The total assets of the company amounted to RMB 206,247 million, showcasing a solid financial position[39]. Market Presence and Strategy - The company operates in over 160 countries and regions, including North America, Europe, and Southeast Asia[4]. - Haier is a pioneer in smart home solutions, leveraging its comprehensive range of home appliance products and the Haier Smart Home Experience Cloud platform[4]. - The company aims to provide integrated smart home solutions that cater to various life scenarios, enhancing user experience[4]. - Future outlook includes expanding market presence and exploring potential mergers and acquisitions to drive growth[4]. - The company continues to invest in new product development and technology to enhance its market position[4]. - The company is focusing on enhancing its smart home solutions through the development of small home appliances and channel distribution services[97]. - The company is actively expanding its product offerings and market presence, leveraging its established distribution channels to support third-party brands[97]. - The company has successfully expanded its overseas business through acquisitions, including GE Appliances in 2016 and Fisher & Paykel in 2018, enhancing its global footprint[96]. Sustainability and Governance - The company emphasizes the importance of sustainability and governance in its operational strategies[4]. - The company has implemented revised International Financial Reporting Standards, which did not significantly impact its financial position or performance[28]. - The company’s financial statements are prepared in accordance with International Financial Reporting Standards and reflect historical cost accounting[27]. - The report was approved by the board of directors on August 30, 2021, indicating a commitment to transparency and regulatory compliance[26]. - The company has established a risk management framework and internal audit discussions with no disagreements noted[182]. - The company complied with the corporate governance code as per the listing rules from January 1 to June 30, 2021[179]. Research and Development - The company continues to innovate and launch new products, maintaining its leadership in the smart home solutions market[94]. - Research and development costs increased to RMB 3,739 million in 2021 from RMB 2,940 million in 2020, marking a rise of 27.2%[54]. - The company established the first international standard for refrigerator preservation, IEC63169, and filed 449 new patent applications in the first half of 2021[107]. Sales and Revenue Growth - Total revenue for the first half of 2021 reached RMB 157,548 million, with a significant contribution from the smart home solutions segment[34]. - The revenue from external customers in the smart home solutions segment was RMB 111,613 million, indicating a strong market demand[34]. - The smart home solutions segment generated RMB 56,669 million in revenue, highlighting its importance to overall performance[34]. - Revenue from the China market was RMB 53,585 million, up from RMB 48,725 million year-over-year, indicating a growth of about 3.7%[44]. - North America contributed RMB 35,324 million in revenue, a significant increase from RMB 29,494 million, reflecting a growth of approximately 19.3%[44]. - The company achieved revenue of 111.613 billion yuan in the first half of 2021, a year-on-year increase of 16.6% and an increase of 11.6% compared to the same period in 2019[105]. - The company’s revenue from the Casarte brand increased by 74.4% in the first half of the year, with 2,589 new touchpoints established in key commercial areas[122]. Challenges and Risks - The company anticipates potential impacts on sales due to macroeconomic slowdowns and changes in consumer demand[134]. - The company is actively managing risks related to currency fluctuations and has implemented hedging tools to minimize financial impacts[135]. - The company plans to invest more in R&D to mitigate risks associated with intensified industry competition and rising raw material costs[135]. Shareholder Information - The company approved an ordinary share dividend of RMB 3.421 billion for the six months ended June 30, 2021, compared to RMB 2.467 billion for the same period in 2020, representing a 38.7% increase[58]. - The company repurchased shares amounting to RMB 2,594 million during the reporting period, with no repurchases recorded in the previous year[23]. - The company repurchased a total of 32,352,800 H-shares at a total cost of HKD 1,000 million during the six months ended June 30, 2021[174]. - The company repurchased 63,076,566 A-shares at a total cost of RMB 1,767 million during the same period[175].

Financial Performance - In 2020, Haier achieved a record sales revenue of RMB 209.7 billion and a net profit attributable to shareholders of RMB 8.88 billion, with operating cash flow of RMB 17.6 billion[9]. - The company reported a significant increase in user data, with a focus on expanding its market presence and enhancing product offerings[34]. - The company achieved a market share of 18.6% in the Asian major appliance market in 2020, ranking first[42]. - The company ranked second in North America with a market share of 22.0% in 2020[42]. - The company reported a net cash flow from operating activities of CNY 17.6 billion, an increase of 16.68%[50]. - The overall gross profit margin for the year was 29.01%, a decrease of 0.59 percentage points year-on-year, but improved by 0.3 percentage points in the second half of the year[50]. - The company reported a significant increase in user data, with a focus on expanding its market presence and enhancing product offerings[34]. - The company achieved a total revenue of CNY 209.7 billion, representing a growth of 5.9%, with Q4 revenue reaching CNY 55.3 billion, up 9.5%[50]. - The net profit attributable to shareholders for the year was CNY 8.88 billion, an increase of 8.17%, with Q4 net profit reaching CNY 2.58 billion, the highest for the same period in history[50]. Market Position and Strategy - Haier has maintained its position as the global leader in major appliances for 12 consecutive years, with the highest retail volume in refrigeration and laundry equipment for 13 and 12 years respectively[6]. - The company has established a strong presence in high-end markets in China and has successfully executed overseas acquisitions[9]. - Haier aims to enhance operational efficiency and user experience over the next three years to achieve growth that surpasses industry standards and create greater value for shareholders[9]. - The company aims to leverage its experience in the Chinese online market to capture opportunities in overseas online appliance sales, which are expected to increase[10]. - The company is focusing on the development of new technologies, including smart home solutions and IoT integration, with an investment of 5 billion RMB in R&D for the upcoming year[12]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market reach, with a budget of 10 billion RMB allocated for strategic investments[12]. - The company aims to enhance international business competitiveness and improve overseas profitability over the next three years[17]. Innovation and Technology - Haier's smart home solutions are supported by the Haier Smart Home Experience Cloud platform, integrating offline experience centers and specialized stores[6]. - A significant portion of Haier's products now possess IoT capabilities, enhancing user interaction and data collection for better service[11]. - The company emphasizes continuous innovation in products and service upgrades to meet user needs in various living scenarios[9]. - The company is focusing on digital transformation across user experience, operational processes, and support model innovation to enhance customer engagement[12]. - The company has developed numerous health, environmentally friendly, and smart personal appliances in response to market demands[17]. - The company is actively pursuing new product development and technological advancements in the home appliance sector[35]. Corporate Governance and Social Responsibility - Haier was recognized as one of the most admired companies by Fortune magazine in 2021, highlighting its commitment to social responsibility and long-term value[14]. - An ESG committee was established in March 2021 to enhance the company's focus on environmental and social governance standards[14]. - The company emphasizes social responsibility over short-term economic benefits, as demonstrated during the pandemic[15]. - The company has implemented a digital reform in the Chinese market, achieving a 23% optimization in market organization[130]. - The company has established a corporate governance framework to ensure proper environmental management and compliance with laws and regulations[195]. - The company is committed to minimizing significant negative impacts on the environment and creating a safe environment for employees and communities[194]. Operational Efficiency and Supply Chain - The company implemented end-to-end production process reconstruction in 2020, effectively mitigating the impact of rising raw material costs[13]. - The company enhanced its global supply chain efficiency by deepening partnerships with local strategic partners and optimizing the supply chain system[53]. - The company implemented large-scale centralized production and localized module manufacturing to effectively reduce procurement costs and improve delivery speed and production efficiency[55]. - The company has established 16 interconnected factories, enhancing production efficiency and receiving multiple industry recognitions for smart manufacturing capabilities[75]. - The company has maintained stable relationships with major distributors and retailers, ensuring no significant breaches of agreements[131]. Customer Engagement and Market Trends - The company is implementing new strategies to enhance customer engagement, aiming for a 25% improvement in customer satisfaction scores by the end of 2021[12]. - The pandemic has reshaped consumer behavior, increasing demand for large-capacity appliances and health-oriented products, driving upgrades in product functionality[45]. - The global home appliance market is experiencing a shift towards online channels, with a growing trend of channel diversification[47]. - The company's e-commerce sales have surged, accounting for 40% of total sales, driven by a 50% increase in online transactions[12]. - The average daily active users on the Haier Smart Home App reached 1.206 million, a year-on-year increase of 546%, while monthly active users reached 24.8 million, up 803%[72]. Financial Management and Investment - The company has no major investment or capital asset plans for the future as of December 31, 2020, focusing instead on smart factory layouts and improving employee work environments in the Chinese market[120]. - The company plans to maintain stable liquidity for operational needs and strategic investment opportunities in 2021[119]. - The company has implemented hedging tools to manage foreign exchange risks due to its global operations[88]. - The company has pledged certain assets as collateral for bank loans, including accounts receivable valued at RMB 12,562 million[128]. - The company aims to continue utilizing remaining net proceeds for investment projects, including the Haier kitchen appliance new factory project[123]. Board and Management Structure - The board consists of two executive directors, three non-executive directors, and three independent non-executive directors, ensuring compliance with listing rules[138]. - The company has established a nomination committee to oversee board diversity and ensure the recruitment of diverse talent[139]. - The board held nine meetings during the year ended December 31, 2020, to review and approve annual and interim results, including strategic transactions and asset restructuring plans[147]. - The company has implemented training programs for newly appointed directors to enhance their understanding of their responsibilities under applicable regulations[146]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[144].