Core Viewpoint - The article highlights Haier Smart Home's strong performance in the face of increasing uncertainties in tariffs and global market conditions, showcasing its effective strategies in global market diversification and localization to achieve sustainable growth [2][3]. Group 1: Financial Performance - Haier Smart Home reported record-breaking half-year results for 2025, with revenue and net profit attributable to shareholders reaching 156.49 billion yuan and 12.03 billion yuan, respectively, reflecting year-on-year growth of 10.2% and 15.6% [2]. - The overseas market revenue for Haier Smart Home was 79.08 billion yuan, showing a year-on-year increase of 11.66% [3]. Group 2: Regional Performance - Despite a 0.8% decline in the North American major appliance shipment, Haier Smart Home achieved double-digit growth in high-end brand revenue in that market [3]. - In Europe, the company's revenue grew by 24.07% year-on-year [3]. - Emerging markets showed even more significant growth, with revenue increases of 32.47% in South Asia, 18.29% in Southeast Asia, and 65.42% in the Middle East and Africa [3]. Group 3: Product Differentiation and Localization - Haier Smart Home's success in various regions is attributed to its high-differentiation and competitive products tailored to local market needs, such as the smart ice-making refrigerators for Southeast Asia [5]. - The company launched the R32 single cold inverter air conditioner in Egypt, addressing local climate and energy cost challenges, which helped increase its market share to 16% [6]. Group 4: Supply Chain and Operational Efficiency - The company has established localized production bases to enhance supply chain resilience and reduce external shocks, moving away from traditional ODM models [7][8]. - Haier Smart Home's Thailand factory plans to supply 30% of its production to the local market while exporting to ASEAN and European markets [8]. - The implementation of a direct factory dispatch model in Southeast Asia has reduced logistics costs and improved delivery efficiency [9]. Group 5: Digital Transformation - Haier Smart Home has adopted a digital retail transformation strategy to enhance operational efficiency, with a 15.4% increase in self-ordering by customers through its HeS digital platform [11]. - The overall operational efficiency improved by 30%, and the average output per store increased by 20% compared to the previous year [11].

Group 1 - Haier Smart Home has filed an international patent application titled "Drain Valve, Washing Machine and Washing Method" with application number PCT/CN2025/077941, published internationally on August 28, 2025 [1] - The company has announced a total of 128 international patent applications this year, which represents a decrease of 63.84% compared to the same period last year [5] - In the first half of 2025, Haier Smart Home invested 5.79 billion yuan in research and development, reflecting an increase of 11.73% year-on-year [5]

Core Viewpoint - Haier Smart Home Co., Ltd. plans to distribute a cash dividend of RMB 2.69 per 10 shares (tax included) for the first half of 2025, reflecting a 20.83% payout ratio of the net profit attributable to shareholders [1][2]. Summary by Sections Profit Distribution Plan - The profit distribution will be based on the total share capital after deducting the shares repurchased by the company, which currently stands at 9,382,913,334 shares, with 64,384,670 shares repurchased [1]. - The total cash dividend distribution will remain unchanged even if there are changes in the total share capital before the record date for the dividend [2]. - The retained undistributed profits will be used for projects related to the company's main business, external investments, R&D, and daily operations to ensure sustainable development and better returns for investors [1]. Decision-Making Process - The profit distribution proposal has been approved by the company's audit committee and will be submitted for approval at the 2025 first extraordinary general meeting of shareholders [2].

Core Viewpoint - Haier Smart Home Co., Ltd. plans to change the purpose of repurchased shares from "for equity incentives/employee stock ownership plan" to "for cancellation to reduce registered capital" [1][2] Summary by Sections Repurchase Share Situation - The company initiated a share repurchase plan on March 30, 2022, to buy back A-shares using self-owned funds for employee stock ownership plans or equity incentives [1][2] - As of January 31, 2023, the company repurchased a total of 58,295,455 shares, of which 31,481,400 shares were transferred to the 2025 A-share core employee stock ownership plan [2] Reason and Content of Change in Repurchase Share Purpose - The change in the purpose of repurchased shares is aimed at protecting the interests of investors, with all 1,472,684 shares in the repurchase account to be canceled and the registered capital reduced accordingly [2][3] Expected Changes in Share Capital Structure - Before the cancellation, the total number of shares was 6,254,501,095, which will decrease to 6,253,028,411 after the cancellation of 1,472,684 shares [3] - The overall share structure will remain compliant with listing requirements, with no significant impact on the company's operations or financial status [5] Impact of Change in Repurchase Share Purpose and Cancellation - The change complies with relevant regulations and will not harm the interests of the company or its shareholders, nor will it affect the company's control or listing status [5] Procedures for Change in Repurchase Share Purpose - The change in the purpose of repurchased shares and their cancellation requires approval from the shareholders' meeting, and the board will seek authorization for the management to handle the cancellation procedures [5]

Summary of the Asset Valuation Report Core Viewpoint The asset valuation report assesses the total equity value of Qingdao Haiyunlian Industrial Development Co., Ltd. in relation to the proposed equity acquisition by Qingdao Haier Carrier Refrigeration Equipment Co., Ltd. The valuation is based on the asset-based approach, with a determined market value of RMB 68,316,905.46 as of June 30, 2025. Group 1: Company Overview - Qingdao Haier Carrier Refrigeration Equipment Co., Ltd. is the acquirer, established on February 26, 2001, with a registered capital of USD 26.048 million [7]. - Qingdao Haiyunlian Industrial Development Co., Ltd. is the target company, established on November 27, 2017, with a registered capital of RMB 10 million [7][8]. - The target company is a wholly-owned subsidiary of Qingdao Haier Industrial Development Co., Ltd. and operates in the construction, leasing, and management of industrial properties [8]. Group 2: Financial Overview - As of June 30, 2025, the total assets of Qingdao Haiyunlian amounted to RMB 81,310,160.50, while total liabilities were RMB 67,185,067.00, resulting in total equity of RMB 14,125,093.50 [4][10]. - The financial performance for the years 2023 and 2024 shows total assets of RMB 90,050,500 and RMB 84,473,700 respectively, with total liabilities of RMB 45,284,700 and RMB 33,041,400 [8]. Group 3: Valuation Methodology - The valuation was conducted using the asset-based approach, which is suitable given the nature of the assets involved [14][16]. - The market value determined for the total equity of the target company is RMB 68,316,905.46, reflecting the fair market conditions as of the valuation date [4][10]. - The valuation report emphasizes that the assessed value does not guarantee realizable prices and should be interpreted within the context of the provided assumptions and limitations [2][6]. Group 4: Special Considerations - The report notes that the investment properties and land included in the assessment are currently leased, with specific rental agreements in place [5][6]. - The valuation does not account for potential impacts from the leasing arrangements on the assessed value, and users of the report are advised to consider these factors [5][6].

Group 1 - The company Haier Smart Home Co., Ltd. will hold its first extraordinary general meeting of shareholders on October 16, 2025, which will include the second A-share class meeting, second D-share class meeting, and second H-share class meeting [2][9] - The voting for the meetings will be conducted through the Shanghai Stock Exchange's network voting system, with specific time slots for both trading and internet voting [1][2] - The agenda includes a proposal to change the purpose of part of the repurchased shares and to cancel them, which has been approved by the company's board of directors [5][7] Group 2 - The meetings will take place at 14:00 on October 16, 2025, at Haier's Innovation Ecological Park in Qingdao [2][9] - Shareholders must register to attend the meetings, with specific requirements for both domestic and foreign shareholders [8][9] - The company will utilize a reminder service to ensure that minority investors are informed about the meetings and can participate in the voting process [7][9]

Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690) with a target price based on the last closing price of 26.00 [1][10] Core Views - Haier Smart Home's Q2 2025 performance exceeded expectations, with the company announcing its first interim dividend, enhancing investor confidence [1][10] - The company reported a revenue of 156.49 billion yuan for H1 2025, representing a year-on-year growth of 10.22%, and a net profit of 12.03 billion yuan, up 15.59% [4][5] - The report highlights strong growth in both domestic and international markets, driven by high-end brands like Casarte and Leader [5][6] Financial Performance Summary - H1 2025 revenue breakdown: Refrigerators 42.52 billion yuan (+4.06%), Air Conditioners 32.77 billion yuan (+12.97%), Washing Machines 31.65 billion yuan (+7.54%), Kitchen Appliances 20.51 billion yuan (+1.92%), and Equipment & Services 18.73 billion yuan (+148.65%) [5] - H1 2025 revenue from international markets was 79.08 billion yuan (+11.7%), while domestic revenue was 77.41 billion yuan (+8.8%) [5] - Q2 2025 gross margin was 28.39%, a slight decrease of 3.94 percentage points, while net margin improved to 8.85% (+0.22 percentage points) [6] Earnings Forecast and Financial Indicators - Projected revenues for 2025-2027 are 309.15 billion yuan, 328.62 billion yuan, and 347.03 billion yuan, with corresponding net profits of 21.44 billion yuan, 23.83 billion yuan, and 26.41 billion yuan [9][12] - Expected EPS for 2025-2027 are 2.28 yuan, 2.54 yuan, and 2.81 yuan, with PE ratios of 11.38, 10.24, and 9.24 respectively [9][12]

Core Viewpoint - Haier Smart Home has shown a positive performance with a 1.00% increase in stock price, reaching a market capitalization of 246.395 billion yuan [1] Company Overview - Haier Group, founded in 1984, has expanded from producing refrigerators to a wide range of sectors including home appliances, IT, logistics, finance, real estate, and biopharmaceuticals, becoming a global leader in providing solutions for a better life [2] - The company is recognized as the world's largest home appliance brand, holding a global retail market share of 10.2% in 2014, maintaining this position for six consecutive years [2] Shareholder Structure - Among the top ten circulating shareholders, Central Huijin Asset Management and China Securities Finance Corporation are included [3] - The controlling shareholder, Haier Group, has invested in wireless charging technology and has been involved in setting national industry standards for wireless energy transmission [3] Business Operations - Haier Smart Home's main business includes the research, production, and sales of home appliances such as refrigerators, kitchen appliances, air conditioners, washing machines, and smart home solutions [3][7] - The revenue composition of the company includes: refrigerators 29.11%, washing machines 22.04%, air conditioners 17.15%, kitchen appliances 14.38%, and other segments [7] Financial Performance - For the first half of 2025, Haier Smart Home achieved a revenue of 156.494 billion yuan, representing a year-on-year growth of 15.39%, and a net profit attributable to shareholders of 12.033 billion yuan, up 15.48% year-on-year [7] - The company has distributed a total of 46.155 billion yuan in dividends since its A-share listing, with 21.766 billion yuan distributed in the last three years [8] Institutional Holdings - As of June 30, 2025, Hong Kong Central Clearing Limited is the fifth largest circulating shareholder with 450 million shares, a decrease of 131 million shares from the previous period [9] - The top ten circulating shareholders also include Huaxia SSE 50 ETF and Huatai-PineBridge CSI 300 ETF, with changes in their holdings noted [9]

Core Insights - The global home appliance market is experiencing significant differentiation due to trade barriers and supply chain restructuring, with varying performance across regions [1] - Haier Smart Home reported a 11.66% growth in overseas revenue for the first half of 2025, successfully expanding its market share in both mainstream and emerging markets [1][3] Group 1: Market Performance - The global home appliance market in the first half of 2025 shows a complex landscape with mainstream markets under pressure and emerging markets exhibiting mixed results [2] - In North America, the major appliance shipment volume decreased by 0.8% due to high interest rates and a sluggish real estate market [2] - The European market is slowly recovering, with a 2% increase in white goods sales in four countries, although the average price dropped by €7.1 [2] - Japan's cold and washing machine sales fell by 1.4% and revenue decreased by 1.3% [2] - Emerging markets like Southeast Asia saw declines of 6%-10%, with specific countries like Thailand and Indonesia down by 7.4% and 6.6% respectively, while the Middle East and Africa markets showed growth [2] Group 2: Company Performance - Haier Smart Home achieved a high growth rate of 11.66% in overseas revenue for the first half of 2025, building on a 5.43% increase in 2024 [3] - In North America, Haier Smart Home managed a 2.4% growth by optimizing product combinations and adjusting production capacity [3] - The company experienced a remarkable 24.07% growth in Europe due to brand positioning upgrades and management reforms [3] - Emerging markets saw significant growth with South Asia at 32.47%, Southeast Asia at 18.29%, and the Middle East and Africa at 65.42% [3] Group 3: Strategic Support - Haier Smart Home's global growth is supported by a diversified and balanced layout across Europe, North America, and emerging markets, enhancing its dynamic collaboration capabilities [4] - The company has established a "China + N" and "localization + regionalization" dual-track supply chain system to improve resilience against global tariff policies and supply chain uncertainties [4] - Haier Smart Home has built 35 industrial parks and 163 manufacturing centers globally, with 61 located overseas, creating a self-circulating system that supports its global operations [4]

Investment Rating - The report maintains an "Outperform" rating for Haier Smart Home with a target price of RMB 36.16, based on a current price of RMB 26.00 [2][18]. Core Insights - Haier Smart Home reported excellent performance in the first half of 2025, achieving revenue of RMB 156.49 billion, a year-on-year increase of 10.2%, and a net profit of RMB 12.03 billion, up 15.6% [5][12]. - The company's gross profit margin for the first half of 2025 reached 26.9%, an increase of 0.1 percentage points year-on-year, while the net profit margin improved to 7.69%, up 0.36 percentage points [6][14]. - Domestic revenue for the first half of 2025 was RMB 77.42 billion, growing 8.8% year-on-year, with notable brand performance from Leader and Casarte [6][15]. - The overseas revenue reached RMB 79.08 billion, a year-on-year increase of 11.7%, with emerging markets showing rapid growth [6][16]. Summary by Sections Financial Performance - Revenue for 2025 is projected to be RMB 303.47 billion, with a net profit of RMB 21.18 billion, reflecting growth rates of 6% and 13% respectively [4][11]. - The diluted EPS is expected to increase from RMB 2.00 in 2024 to RMB 2.26 in 2025, with a consistent growth forecast for the following years [4][11]. Market Analysis - The report highlights Haier's strong position in both domestic and international markets, benefiting from national subsidy policies and increasing market share in mature markets [7][17]. - Emerging markets, particularly in South Asia, Southeast Asia, and the Middle East, have shown significant revenue growth rates of 33%, 18%, and 65% respectively [6][16]. Valuation - The report assigns a PE ratio of 16x for 2025, reflecting a positive outlook on Haier's earnings growth and market positioning [7][18]. - The target price of RMB 36.16 represents a potential upside from the current trading price, reinforcing the "Outperform" rating [2][18].