Core Viewpoint - Haier Smart Home has shown a stable performance in the home appliance sector, with significant revenue growth and a diversified product portfolio [2][7]. Company Overview - Haier Group was founded in 1984 and has expanded from producing refrigerators to a wide range of products including home appliances, IT digital products, and more, becoming a global leader in providing solutions for a better life [2]. - The company’s main business includes the research, production, and sales of home appliances such as refrigerators, washing machines, air conditioners, and kitchen appliances, along with smart home solutions [3][7]. - As of June 30, 2025, Haier Smart Home achieved a revenue of 156.49 billion yuan, representing a year-on-year growth of 15.39%, and a net profit of 12.03 billion yuan, with a growth of 15.48% [7]. Financial Performance - The company has a market capitalization of 248.08 billion yuan, with a trading volume of 1.22 billion yuan and a turnover rate of 0.74% on September 8 [1]. - The revenue composition includes refrigerators (29.11%), washing machines (22.04%), air conditioners (17.15%), kitchen appliances (14.38%), and other segments [7]. - Haier Smart Home 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]. Shareholder Structure - The top ten circulating shareholders include significant entities such as Central Huijin Asset Management and China Securities Finance Corporation [3][9]. - As of June 30, 2025, the number of shareholders increased to 207,500, with an average of 0 circulating shares per person [7].

Summary of Haier Smart Home Co. (600690.SS) Conference Call Company Overview - **Company**: Haier Smart Home Co. - **Industry**: Home Appliances Key Points 1. Revenue and Profit Growth Outlook - Management expects a revenue growth of **MSD-HSD%** and a profit growth of **DD% CAGR** in the coming years, with plans to increase dividends gradually over the mid to long term [2][10][8] 2. Overseas Expansion Strategy - Management is focusing on further localization in the US market to enhance local manufacturing capabilities, with a **US$3 billion** investment aimed at expanding US manufacturing [6][7] - Anticipated growth and margin improvements in Europe following recent reforms, with sequential improvements in white goods sales continuing into Q3 [10][8] - Emerging markets are expected to see fast growth due to a combination of value-for-money products and technology-driven offerings, particularly in the APAC region [10][8] 3. Domestic Market Performance - Management remains optimistic about the growth and margin expansion of air conditioning (AC) products, attributing this to cost reduction initiatives and efficiency gains despite intense competition [10][8] - The domestic market has shown a decline in pricing for the Leader brand, while the Haier and premium Casarte brands have experienced an increase in average selling price (ASP) driven by product mix improvements [10][8] 4. Competitive Edge - Management believes that their relative competitive edge in the US market stems from local production capabilities compared to most competitors [7][8] 5. Investment Thesis - Haier is recognized as a leader in refrigerators and washing machines in China, with a strong position in the premium segment through its Casarte brand. The company is rated as a "Buy" due to: - Resilient domestic growth driven by market share gains and premiumization - Improving overseas demand and favorable foreign exchange (FX) conditions - Ongoing margin improvement potential from product mix enhancements and operational efficiency gains [8][9] 6. Risks and Challenges - Key risks include: - Potential disruptions to white goods demand due to weaker global macroeconomic conditions - Rising raw material costs - Ineffective marketing and channel expense savings - Challenges in successfully integrating acquisitions [9][10] 7. Valuation and Price Target - The 12-month price targets for Haier's A/H shares are set at **Rmb31/HK$31**, based on a discounted P/E approach applying a **14x exit P/E** to 2027E EPS [9][10] 8. Brand Building and OEM Business - Management emphasizes the importance of brand building in the OEM business, which requires capabilities in product innovation, supply chain management, and after-sales services. They do not foresee large acquisitions in the white goods space but may consider opportunities in other areas like HVAC [6][8] Conclusion Haier Smart Home Co. is positioned for growth through strategic overseas expansion, a focus on premium products, and operational efficiencies. However, the company faces risks from macroeconomic factors and competition in both domestic and international markets.

Group 1 - The China-Europe Railway Express has seen significant growth, with over 110,000 trains operated and a total cargo value exceeding $450 billion [1] - The Shanghai Cooperation Organization (SCO) has facilitated increased trade, with projected trade volume between China and SCO member countries reaching approximately $512.4 billion in 2024, marking a historical high [1] - The Shandong region has enhanced its logistics services through the China-Europe Railway Express, offering specialized cold chain services and supporting over 7,000 foreign trade enterprises with a total cargo value exceeding 47.6 billion yuan [2] Group 2 - The China-Kyrgyzstan-Uzbekistan rail intermodal transport has reduced transportation time by about 5 days and costs by nearly 30%, with a fourfold increase in transport volume this year [3] - The e-commerce and digital retail sectors are emerging as new growth points for SCO member countries, with the online retail market exceeding $3.2 trillion last year, accounting for over half of the global total [3] - China's light industry exports have shown resilience, with a total export value of $373.21 billion from January to May, reflecting a year-on-year growth of 0.5% despite global supply chain adjustments [4]

Core Viewpoint - The new national standard GB 12021.2-2025 for household refrigerators, effective from June 1, 2026, is a significant step towards the green and intelligent transformation of China's refrigerator industry, marking the fifth revision since its initial establishment in 1989 [1] Group 1: Industry Impact - The revision of the standard is based on technological advancements, market demands, and environmental requirements, aiming to promote the green and efficient transformation of the domestic appliance industry [2] - The energy efficiency index for refrigeration and freezing boxes has been raised from ηs≤70% to ηt≤40%, representing a 42.9% increase, which is expected to eliminate approximately 20% of high-energy-consuming refrigerators from the market [2][3] - The current energy efficiency standard has significantly improved the energy efficiency level in the refrigerator market over the past decade, with the proportion of first-level energy efficiency products rising from less than 10% to over 85% [2] Group 2: Corporate Response - Leading companies like Haier have proactively upgraded their products in response to the new regulations, focusing on energy-efficient components and overall energy optimization across the supply chain [3] - Haier's refrigerator series has achieved a volume utilization rate of 61.2%, surpassing the industry average of around 50%, demonstrating that efficiency and aesthetic design can coexist [3] - The implementation of the new standard is expected to accelerate industry consolidation, favoring large enterprises with technological and financial advantages while posing challenges for small and medium-sized enterprises [3][4] Group 3: Consumer Benefits - The new standard introduces smart grid signal response capabilities, allowing refrigerators to operate during off-peak hours, thus transforming them into active components of household energy management [5] - Consumers are encouraged to pay attention to the new energy efficiency labels, which categorize products into five levels, with level 1 being the most efficient [5] - The addition of "volume utilization rate" on the product label indicates that consumers can expect more usable space within the same external dimensions, enhancing the value proposition of new refrigerators [5] Group 4: International Alignment - The revised standard aligns closely with international standards, positioning China's refrigerator industry at the forefront globally, and facilitating easier exports by reducing technical barriers [6] - The new standard is expected to drive technological innovation, increase industry concentration, and promote collaborative efforts across the supply chain towards greener and smarter solutions [6] - Long-term, the Chinese refrigerator industry aims to strengthen its global leadership through innovation and sustainable development practices [6]

Core Viewpoint - Leader's Lazy Three-Tub Washing Machine has rapidly gained market traction, achieving over 10,000 units sold within 48 minutes and exceeding 100 million yuan in sales within 16 hours, marking a significant milestone for the company [1] Company Insights - The success of the Lazy Three-Tub Washing Machine is attributed to two main factors: the company's commitment to co-creation with users and its robust global R&D platform, which allows for quick transformation of user needs into technological innovations [3] - The introduction of the Lazy Three-Tub Washing Machine has created a new product category for the company, positioning Haier's washing machines at the forefront of global technology and providing consumers with innovative lifestyle choices [3][4] Industry Trends - The launch of the Lazy Three-Tub Washing Machine has set a new trend in the washing machine industry, following Haier's previous introduction of the dual-tub "partition washing" machine, which has been emulated by competitors, thus driving technological upgrades across the industry [4] - The continuous evolution of the product is expected to further enhance the company's market position, with plans for ongoing iterations based on user feedback and expanding capacity to meet growing demand [6][8] Market Expansion - The Lazy Three-Tub Washing Machine is set to expand from China to Europe, with successful delivery of 100,000 units domestically and plans for entry into European markets such as the UK and Italy by the end of the year [8]

Core Insights - The most profitable listed companies in Qingdao for the first half of the year include Haier Smart Home, Qingdao Beer, and Hisense, with a total of 53 companies reporting profits, representing over 82% of the listed firms [1][2] - Haier Smart Home achieved the highest net profit of 12.033 billion yuan, a year-on-year increase of 15.6%, while Qingdao Beer reported a net profit of 3.9 billion yuan, up 7.2% [2] - The combined revenue of the three major companies (Haier, Hisense, and Qingdao Beer) accounted for approximately 29.5% of Qingdao's GDP, highlighting their significant role in the local economy [2][3] Group 1: Company Performance - Haier Smart Home reported revenue of 156.494 billion yuan, with a net profit of 12.033 billion yuan, marking a 10.2% and 15.6% increase respectively [4] - Qingdao Beer achieved revenue of 20.49 billion yuan and a net profit of 3.9 billion yuan, reflecting a 2.1% and 7.2% growth [4] - Hisense's subsidiaries, Hisense Visual and Hisense Home Appliances, also showed positive growth, with Hisense Visual's revenue at 27.231 billion yuan and a net profit of 1.056 billion yuan, up 26.63% [2][5] Group 2: Market Structure - The profitability is highly concentrated among a few companies, with four firms (Haier, Qingdao Beer, Hisense Home Appliances, and Hisense Visual) accounting for approximately 60% of the total net profit of 32 billion yuan reported by Qingdao listed companies [5][6] - The market structure in Qingdao shows a significant disparity in company sizes, with a few large firms dominating the market while smaller companies struggle to achieve similar profitability [6] Group 3: International Expansion - Nearly 40 companies reported overseas business income exceeding 120 billion yuan, representing about 30% of total revenue for Qingdao listed companies [7] - Major companies like Haier and Hisense are actively expanding internationally, with Haier establishing production bases in Egypt and Thailand, and Hisense building a manufacturing facility in Egypt [7] Group 4: Economic Impact and Consumer Trends - The national strategy to boost consumption has significantly benefited Qingdao, particularly in the home appliance sector, which is a key focus of government policy [9] - The home appliance retail market in China saw a 9.2% year-on-year increase, with Qingdao being a major production hub for appliances, contributing to the strong performance of local companies [9]

Group 1 - Hisense officially announced as the global official sponsor for the 2026 World Cup, marking its third sponsorship after the 2018 and 2022 World Cups [2] - Haier Europe signed long-term strategic partnerships with Liverpool FC and Paris Saint-Germain, becoming their global official partner [2] - Midea Group entered a long-term cooperation agreement with FC Barcelona, with its logo to appear on the team's match and training jerseys starting from the 2026/2027 season [2] Group 2 - TCL signed as a global partner for the Olympics, reflecting a trend of Chinese home appliance companies increasing their sponsorship of international sports events [3] - Midea's overseas revenue reached 107.2 billion yuan in the first half of 2025, a 17.7% year-on-year increase, with OBM revenue accounting for over 45% of its smart home business overseas [2] - Hisense's sponsorship of the 2025 FIFA Club World Cup aims to enhance its brand presence in five major overseas regions, contributing to a 70% overall revenue growth and a 156% increase in brand value by 2024 [3] Group 3 - TCL has been involved in top-tier sports and entertainment IP for over 30 years, utilizing a "global localization" marketing strategy across various sports [4] - TCL's partnership with the Olympics will provide comprehensive technical, product, and service support in smart terminals and display panels [4] - The company aims to create an immersive viewing experience for global audiences through innovative display technology [4]

Group 1: Event Overview - The 2025 IFA (International Consumer Electronics Fair) is being held in Berlin from September 5 to 9, showcasing a wide range of smart, digital, and sustainable solutions for home, travel, and lifestyle [1] - IFA is one of the largest and most comprehensive consumer electronics exhibitions in the world, with over 100 years of history [1] Group 2: Company Highlights - TCL has participated in IFA for 15 consecutive years, presenting a winter Olympic-themed exhibition and showcasing its leading products in large screen displays, QD-Mini LED, AI technology, and a full range of smart terminal solutions [1] - TCL introduced the TCL NXTHOME future lifestyle area and the groundbreaking sustainable material TCL ECORA, defining a "sustainable" future lifestyle [1] - TCL's AI platform, Honghu Turing, empowers various products like air conditioners, refrigerators, and washing machines, enhancing user experience with smarter and more intuitive AI capabilities [1] Group 3: Other Exhibitors - Hisense showcased its latest technological innovations under the theme "AI Your Life," including smart living and energy solutions, and introduced the next-generation RGB-Mini LED TV U7S Pro [2] - Hisense also presented AI applications in various fields, including AI air, AI laundry, AI cuisine, AI energy, and AI services, along with a new smart energy exhibition area [2] - DJI displayed its core consumer and agricultural drones, along with handheld and professional imaging products, emphasizing its role in the digital and intelligent transformation of various industries [3] - Hertz introduced its innovative "no-suction cleaning technology" and aims to create a complete cleaning ecosystem, changing user perceptions of home care [3][4]

Core Insights - The event showcased Haier's innovative smart kitchen appliances at the IFA in Berlin, highlighting the company's commitment to technology and sustainability [1][2] Product Highlights - Haier's oven features "AI Eye" technology, which utilizes a built-in high-definition camera to monitor food status and automatically adjust temperature and time for optimal baking and roasting [1] - The A-50% energy-saving dishwasher employs a heat pump system that extracts heat from the air to heat wash water, achieving 50% lower energy consumption compared to European A-rated standards while maintaining strong cleaning power [1] Brand Engagement - Former French football star Claude Makélélé actively engaged with the product details during his visit, enhancing Haier's brand visibility and interaction with potential customers at the IFA [2]

Core Insights - The article highlights the growing ambition of Chinese home appliance companies to conquer overseas markets, particularly in Europe, as showcased at the IFA 2025 event [1][3] - It emphasizes the challenges faced by Chinese brands in penetrating the European market, which has a long history and established competitors [4][6] Market Overview - Europe is a significant market for home appliances, with a retail share of approximately 20% in Western Europe and a projected CAGR of 5.52% for Eastern Europe from 2018 to 2024 [4] - The complexity of the European market, with over 40 countries and diverse consumer habits, poses a challenge for Chinese companies seeking to expand [4][8] Consumer Preferences - European consumers prioritize high-quality and innovative products over low prices, making it essential for Chinese brands to focus on product differentiation rather than competing solely on price [6][8] - Localized product adaptations are crucial, as direct transfers of products from China may not meet European consumer needs [8] Successful Strategies - High-end branding and technological innovation are key strategies for Chinese companies to succeed in Europe, as demonstrated by Haier's approach [9][11] - Haier has effectively combined product innovation with local market understanding, achieving significant market share and consumer acceptance [9][12] Performance Metrics - Haier's overseas revenue grew by 11.7% in the first half of the year, with a remarkable 24.07% growth in Europe [11] - The company has maintained its position as the world's largest home appliance brand for 16 consecutive years, indicating the effectiveness of its global strategy [12]