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].

Core Insights - Haier Smart Home reported a revenue of 156.49 billion yuan for the first half of 2025, a year-on-year increase of 10.2%, and a net profit attributable to shareholders of 12.03 billion yuan, up 15.6% year-on-year [1] - The company plans to distribute a cash dividend of 2.69 yuan per 10 shares, totaling 2.51 billion yuan, which accounts for 20.8% of the net profit for the first half of the year [1] Revenue Growth - In Q2 2025, Haier achieved a revenue of 77.38 billion yuan, a year-on-year increase of 10.4%, and a net profit of 6.55 billion yuan, up 16.0% year-on-year [1] - Domestic revenue grew by 8.8% and overseas revenue by 11.7% in H1 2025, with Q2 showing an acceleration in domestic growth and a slight deceleration in overseas growth [1] - The company benefited from government subsidies and leveraged its multi-brand strategy, with brands like Casarte and Leader seeing revenue growth rates exceeding 20% and 15%, respectively [1] Profitability and Margins - Haier's gross margin in Q2 was 28.4%, an increase of 0.1 percentage points year-on-year, with improvements in both domestic and overseas business margins [2] - The net profit margin for Q2 was 8.5%, up 0.4 percentage points year-on-year, with stable operating expense ratios contributing to enhanced profitability [2] Cash Flow and Operational Efficiency - Operating cash flow for Q2 increased by 37.5% year-on-year, reaching 8.85 billion yuan, driven by revenue growth and improved operational efficiency [3] - Cash received from sales and services grew by 20.2% year-on-year, indicating strong operational performance [3] Investment Outlook - The company is expected to see continued growth in domestic revenue due to trade-in incentives and potential acceleration in overseas revenue during the interest rate reduction cycle [2] - Haier's management and employee motivation are improving, with significant growth potential in overseas markets, particularly in segments like dryers, air conditioners, and small appliances [3] - EPS estimates for 2025, 2026, and 2027 are projected at 2.29, 2.54, and 2.76 yuan, respectively, with a target price of 32.08 yuan based on a 14x PE valuation for 2025 [3]

Core Insights - Haier Smart Home achieved a net profit attributable to shareholders of 12.033 billion yuan in H1 2025, representing a year-on-year growth of 15.59% [1] - In Q2 2025, the net profit attributable to shareholders was 6.546 billion yuan, with a year-on-year increase of 16.02% [1] - The company implemented its first interim dividend, distributing over 2.5 billion yuan, which accounts for 20.83% of the net profit in H1 2025 [1] Domestic Performance - The domestic brand Casarte saw revenue growth exceeding 20% [1] - The leader brand experienced revenue growth of over 15% [1] International Performance - Overall revenue growth in overseas markets was 11.7% [1] - South Asia recorded a growth of 32.47%, Southeast Asia 18.29%, and the Middle East and Africa 65.42% [1] Future Projections - The company is expected to achieve net profits attributable to shareholders of 21.087 billion yuan, 23.723 billion yuan, and 26.446 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 12.5%, 12.5%, and 11.5% [1] - The investment rating is maintained at "Buy" based on the performance and industry environment [1]

Core Insights - Haier Smart Home achieved a net profit attributable to shareholders of 12.033 billion yuan in H1 2025, representing a year-on-year growth of 15.59% [1] - In Q2 2025, the net profit attributable to shareholders was 6.546 billion yuan, with a year-on-year increase of 16.02% [1] - The company implemented its first interim dividend, amounting to over 2.5 billion yuan, which accounts for 20.83% of the H1 2025 net profit [1] Domestic Performance - The domestic brand Casarte saw revenue growth exceeding 20% [1] - The leader brand experienced revenue growth of over 15% [1] International Performance - Overall revenue growth in overseas markets was 11.7% [1] - South Asia recorded a growth of 32.47%, Southeast Asia 18.29%, and the Middle East and Africa 65.42% [1] Future Projections - The company is expected to achieve net profits attributable to shareholders of 21.087 billion yuan, 23.723 billion yuan, and 26.446 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 12.5%, 12.5%, and 11.5% [1] - The investment rating is maintained at "Buy" [1]

Investment Rating - The investment rating for Haier Smart Home is "Buy" (maintained) [1] Core Views - Haier Smart Home's H1 2025 performance slightly exceeded expectations, with total revenue of 156.49 billion yuan, a year-on-year increase of 10%, and a net profit attributable to shareholders of 12.03 billion yuan, up 16% year-on-year. The company announced its first-ever interim dividend, proposing a distribution of 2.69 yuan per 10 shares, totaling over 2.5 billion yuan, with a dividend payout ratio of 21% [6][5] - The company aims to maintain a stable and gradually increasing dividend payout ratio as a long-term goal [6] - The domestic revenue growth for H1 2025 was 8.8%, while overseas revenue grew by 11.7%, with significant growth in emerging markets [6] Financial Data and Profit Forecast - The total revenue forecast for Haier Smart Home is projected to be 305.13 billion yuan in 2025, with a year-on-year growth rate of 6.7% [5] - The net profit attributable to shareholders is expected to reach 21.55 billion yuan in 2025, reflecting a 15% year-on-year increase [5] - The earnings per share (EPS) is forecasted to be 2.30 yuan in 2025, with a gross margin of 28.2% [5] - The company is expected to achieve net profits of 24.78 billion yuan and 28.50 billion yuan in 2026 and 2027, respectively, maintaining a consistent growth rate of 15% [6][5]