Group 1 - The core viewpoint of the report is a "buy" rating for Haier Smart Home (600690.SH) based on expected growth in both domestic and international sales [1] - The report highlights a projected double-digit growth in overseas sales by the first half of 2025, driven by the brands Casarte and Leader in the domestic market [1] - It anticipates an improvement in profitability by the second quarter of 2025, attributed to the efficiency gains from digital transformation [1] Group 2 - The report mentions potential risks including macroeconomic uncertainties, intensified industry competition, fluctuations in raw material prices, exchange rate volatility, and operational risks in overseas markets [1]

Group 1 - The home appliance sector underperformed the CSI 300 index this week, with the Shenwan household appliance index declining by 0.9% while the CSI 300 index rose by 2.7% [1] - Key companies such as Guangfeng Technology and Ecovacs led the gains with a rise of 6.5%, while companies like Beike and Gree Electric faced declines of 6.2% and 5.6% respectively [1] - The production data for major white goods in September 2025 shows a total output of 27.07 million units, a decrease of 7.2% compared to the same period last year [1] Group 2 - In September 2025, the production of household air conditioners was 10.75 million units, down 12.0% year-on-year; refrigerators produced were 8.21 million units, down 6.3%; and washing machines saw production of 8.11 million units, down 1.1% [1] - Haier Smart Home announced its first mid-term dividend, proposing a cash dividend of RMB 2.69 per 10 shares, totaling over RMB 2.5 billion [1] Group 3 - In July 2025, the online sales volume of hair dryers decreased by 6.44% to 932,200 units, while sales revenue increased by 11.46% to RMB 209 million, with an average price rise of 19.16% to RMB 223.9 per unit [2][3] - The online sales volume of electric shavers increased by 21.32% to 927,700 units, with sales revenue rising by 23.61% to RMB 164 million, and an average price increase of 1.90% to RMB 177.0 per unit [2][3] Group 4 - The investment focus includes the white goods sector, which is characterized by low valuations, high dividends, and stable growth, with expectations for a boost from trade-in policies and rising copper prices [4] - Recommendations include leading companies such as Hisense, Midea, Haier, and Gree, as well as companies like Ousheng Electric and Dechang Co., which are expected to benefit from large customer orders and improved profitability [4] - The demand for core components in the white goods sector is expected to exceed expectations, with recommendations for companies like Huaxiang Co., Shun'an Environment, and Sanhua Intelligent Control, which are positioned to benefit from the industry's growth [4]

Core Viewpoint - The company Haier Smart Home has demonstrated resilience in the face of increasing uncertainties such as tariffs, achieving record-breaking revenue and net profit in the first half of 2025, with revenue reaching 156.49 billion yuan and net profit at 12.03 billion yuan, reflecting year-on-year growth of 10.2% and 15.6% respectively [1] Group 1: Global Market Performance - Haier Smart Home's overseas revenue reached 79.08 billion yuan in the first half of 2025, marking an 11.66% year-on-year increase despite a challenging global market [2] - In North America, while the overall large appliance shipment volume declined by 0.8%, Haier's high-end brand revenue experienced double-digit growth [2] - The European market saw a revenue increase of 24.07% year-on-year, while emerging markets such as South Asia, Southeast Asia, and the Middle East reported significant growth rates of 32.47%, 18.29%, and 65.42% respectively [2] Group 2: Product Differentiation and Market Adaptation - Haier Smart Home has successfully tailored its products to meet the specific needs of different markets, such as introducing smart ice-making refrigerators in Southeast Asia and R32 single cold inverter air conditioners in Egypt, which contributed to a market share increase to 16% in Egypt [4] - The company's ability to understand and respond quickly to diverse regional consumer demands has enabled it to achieve growth even amidst trade protectionism and weak demand in the industry [4] Group 3: Localization and Supply Chain Resilience - Haier Smart Home has established localized production bases in various regions over the past 30 years, enhancing its supply chain resilience and production capacity [5] - The company has implemented a dual-track supply chain system that combines localization and regionalization, improving product delivery efficiency and cost advantages [5] - The Thailand plant is set to supply 30% of its production to the local market while exporting the remainder to ASEAN and European markets, and the Egypt factory will serve both local and regional markets [5] Group 4: Digital Transformation and Operational Efficiency - Haier Smart Home has adopted a digital retail transformation strategy to enhance operational efficiency across its overseas markets, with a 15.4% increase in customer self-ordering through the HeS digital platform [7] - The overall operational efficiency has improved by 30%, and the average output per store has increased by 20% compared to the previous year [7] - The company's performance reflects its ability to dynamically coordinate across global markets, leveraging supply chain capabilities to mitigate market fluctuations and achieve complementary growth [7]

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]