Financial Performance - The company's revenue for Q1 2023 reached ¥19,430,480,828.07, representing a 6.16% increase compared to ¥18,303,785,340.27 in the same period last year[3] - Net profit attributable to shareholders was ¥615,296,643.26, a significant increase of 131.11% from ¥266,233,233.32 year-on-year[3] - The net profit after deducting non-recurring gains and losses was ¥520,783,170.28, up 179.80% from ¥186,128,675.02 in the previous year[3] - Operating profit for Q1 2023 was CNY 1.22 billion, up 74.00% from CNY 702.89 million in the same period last year[15] - Comprehensive income for Q1 2023 was CNY 1.10 billion, compared to CNY 539.98 million in Q1 2022, marking an increase of 104.00%[16] - Basic and diluted earnings per share for Q1 2023 were both CNY 0.45, up from CNY 0.20 in the same period last year[16] Assets and Liabilities - The company's total assets increased by 7.40% to ¥59,473,631,308.87 from ¥55,375,550,868.66 at the end of the previous year[3] - The total assets of Hisense Home Appliances Group reached CNY 59.47 billion at the end of the first quarter, up from CNY 55.38 billion at the beginning of the year, representing an increase of approximately 7.6%[11] - Total liabilities increased to CNY 42.74 billion, up from CNY 39.10 billion year-over-year, reflecting a growth of 6.73%[15] - The total liabilities increased to CNY 40.71 billion, compared to CNY 37.63 billion at the beginning of the year, representing a growth of about 8.5%[12] - The company’s total equity increased to CNY 18.77 billion from CNY 18.75 billion, showing a marginal growth of about 0.1%[12] - Total equity attributable to shareholders of the parent company reached CNY 11.99 billion, an increase of 4.16% from CNY 11.52 billion in Q1 2022[15] Cash Flow - Cash flow from operating activities showed a significant improvement, with a net cash inflow of ¥886,463,601.52 compared to a net outflow of ¥202,583,768.60 in the previous year[3] - The net cash flow from operating activities for Q1 2023 was ¥886,463,601.52, a significant improvement from a negative cash flow of ¥202,583,768.60 in the same period last year[18] - Total cash inflow from operating activities reached ¥16,081,473,482.74, compared to ¥15,563,763,794.69 in Q1 2022, indicating a year-over-year increase of approximately 3.3%[18] - Cash outflow from operating activities was ¥15,195,009,881.22, down from ¥15,766,347,563.29 in the previous year, reflecting a decrease of about 3.6%[18] - The company reported a net cash flow from financing activities of ¥626,302,995.69, a recovery from a negative cash flow of ¥481,156,461.28 in Q1 2022[18] - Total cash inflow from financing activities was ¥1,867,599,216.74, compared to ¥855,811,531.59 in the previous year, indicating a year-over-year increase of about 118.5%[18] Investments and Shareholder Information - The company’s investment income rose by 65.52% to ¥236,484,537.13, driven by increased returns from long-term equity investments and financial products[5] - The total number of ordinary shareholders at the end of the reporting period was 18,673[6] - The number of shares held by the largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., is 516,758,670, accounting for 37.92% of the total shares[8] Research and Development - R&D expenses for Q1 2023 amounted to CNY 576.47 million, representing an increase of 12.06% from CNY 514.38 million in Q1 2022[15] Inventory and Receivables - The company reported a significant increase in inventory, which stood at CNY 6.50 billion, down slightly from CNY 6.55 billion, indicating a decrease of about 0.8%[11] - Accounts receivable increased to CNY 8.65 billion from CNY 7.67 billion, reflecting a rise of approximately 12.8%[11] - The company reported a 46.22% increase in accounts receivable financing, reaching ¥7,417,684,272.37, attributed to business growth[5] Borrowings - Short-term borrowings increased by 31.91% to ¥1,928,890,525.46, primarily due to increased borrowings by subsidiaries[5] - Short-term borrowings rose to CNY 1.93 billion from CNY 1.46 billion, marking an increase of approximately 32.1%[12] Cash and Cash Equivalents - The company's cash and cash equivalents decreased to CNY 5.69 billion from CNY 6.00 billion, a decline of about 5.2%[11] - The ending balance of cash and cash equivalents was ¥3,205,383,971.61, up from ¥2,834,959,925.92 at the end of Q1 2022[19] - The company’s cash and cash equivalents increased by ¥727,037,896.21 during the quarter, compared to a decrease of ¥44,216,868.76 in the same period last year[18] Audit Status - The company has not audited the Q1 2023 report, which was released on April 27, 2023[19]

Financial Performance - The company's revenue reached CNY 74.115 billion, a year-on-year increase of 9.7%[12] - Net profit attributable to shareholders was CNY 1.435 billion, a significant year-on-year growth of 47.54%[12] - The company achieved operating revenue of RMB 74.115 billion, a year-on-year increase of 9.70%[29] - Net profit attributable to shareholders reached RMB 1.435 billion, reflecting a significant year-on-year growth of 47.54%[29] - The net cash flow from operating activities for 2022 was RMB 4.03 billion, a decrease of 6.52% compared to RMB 4.31 billion in 2021[41] - The basic earnings per share for 2022 was RMB 1.05, up 47.89% from RMB 0.71 in 2021[41] - The company's net profit for the fiscal year 2022 was approximately RMB 2,036.32 million, with a total distributable profit of RMB 4,986.24 million after accounting for previous undistributed profits and dividends paid[145] - The total amount allocated for the proposed dividend is approximately RMB 717.39 million, expected to be distributed around August 15, 2023, pending shareholder approval[146] Market Share and Product Performance - The online market share of Ronshen refrigerators was 12.5%, up 0.4 percentage points year-on-year[12] - The offline market share of Hisense fresh air conditioners was 26.3%, an increase of 2.5 percentage points year-on-year[12] - Hisense's share in the multi-split air conditioning market approached 20%, ranking first in the industry[12] - The company reported a year-on-year increase of over 30% in both export volume and export value for its home air conditioning products in 2022[18] - The refrigerator market saw a retail volume decline of 6.3% and a retail value decline of 4.7% in 2022, with offline sales dropping by 20.0%[24] - The washing machine market experienced a retail volume decline of 9.0% and a retail value decline of 10.4% in 2022, while mini washing machines saw a retail value increase of 10.5%[25] - The company’s new product, the C200 cabinet air conditioner, topped the industry sales chart for over 30 weeks, priced above RMB 20,000[14] Innovation and Product Development - The company launched a new high-end washing and drying care set, enhancing user experience[4] - The company introduced the "KELON Sleep Air Conditioner" series targeting younger consumers[4] - The company launched the "WILL3.0" refrigerator, which addresses traditional embedded refrigerator pain points, achieving a unique design with no protrusions and no gaps[14] - The company’s "Aijia Platform" integrates smart home solutions across five themes and nine spaces, enhancing user experience[15] - The company’s new air source heat pump products have been launched in multiple European markets, capitalizing on the shift from fossil fuels[18] - The company introduced new generation products in key markets such as Europe and North America, focusing on energy efficiency and smart connectivity[31] - The company has made breakthroughs in smart washing machine technologies, achieving industry-leading performance in garment care[65] Corporate Governance and Management - The company has established a nomination committee under the board to recommend candidates for directorships[90] - The board consists of nine members, including six executive directors and three independent non-executive directors[90] - The company has established four specialized committees: Compensation and Assessment Committee, Nomination Committee, Strategy Committee, and Audit Committee[99] - The board has adopted a diversity policy, currently including one female director, Gao Yuling, appointed on January 19, 2022[92] - The company has established a risk management strategy that includes identifying, assessing, and prioritizing risks[125] - The company has a structured governance framework with independent non-executive directors contributing to oversight and strategic guidance[132] Sustainability and Corporate Social Responsibility - The company was recognized as a "2022 Model Enterprise for Carbon Neutrality" at the International Green Zero Carbon Festival[8] - The company has created four national-level "green factories" and one national-level "green supply chain," improving energy consumption by 6.9% year-on-year[19] - The company actively responded to green manufacturing and low-carbon policies by developing new industry standards for air conditioning products[31] - The company focuses on energy conservation and emission reduction, integrating these efforts with its business strategy[139] Talent and Human Resources - The company hired 103 leading and core talents, an increase of 52 year-on-year[13] - The company implemented an equity incentive plan to enhance its long-term incentive system[11] - The company introduced an equity incentive plan covering over 600 core management and key employees to enhance long-term capabilities[20] - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 1,979.96 million[199] Shareholder Engagement and Financial Policies - The company proposed to increase the dividend payout ratio to 50% in 2022, reflecting a commitment to shareholder returns[21] - The company has approved a share repurchase plan with a total amount adjusted to between RMB 1.2285 billion and RMB 2.4570 billion[77] - The company repurchased 11,699,989 shares for a total amount of RMB 211.4 million from January 16 to March 16, 2023[78] - The profit distribution policy emphasizes a minimum cash dividend of 10% of the distributable profit for the year, with a cumulative distribution of at least 30% of the average annual distributable profit over the last three years[143] Supply Chain and Procurement - The company has strengthened its supply chain management, achieving over 30% improvement in efficiency and reducing procurement costs significantly[19] - The company maintains a strong relationship with suppliers, ensuring no significant shortages or delays in supply during the reporting period[141] - The total procurement amount from the top five suppliers was RMB 6,209,323,495.69, which accounted for 10.57% of the annual procurement[172] Related Party Transactions - The company has not entered into any significant contracts or agreements with its controlling shareholders during the reporting period, aside from those disclosed in the related party transactions section[159] - The total amount of related party transactions during the reporting period includes RMB 1.6 billion for sales of finished products to Hisense International Marketing, accounting for 21.58% of similar transactions[186] - The independent non-executive directors confirmed that the ongoing related party transactions during the reporting period were conducted in the ordinary course of business and were fair and reasonable[160]

Financial Performance - The company's operating revenue for Q1 2023 was RMB 19,430,480,828.07, representing a 6.16% increase compared to RMB 18,303,785,340.27 in the same period last year[3] - Net profit attributable to shareholders reached RMB 615,296,643.26, a significant increase of 131.11% from RMB 266,233,233.32 year-on-year[4] - The net cash flow from operating activities was RMB 886,463,601.52, compared to a negative cash flow of RMB -202,583,768.60 in the previous year, indicating a substantial improvement[4] - Basic earnings per share rose to RMB 0.45, up 125.00% from RMB 0.20 in the same period last year[4] Assets and Liabilities - Total assets increased by 7.40% to RMB 59,473,631,308.87 from RMB 55,375,550,868.66 at the end of the previous year[4] - The company's net assets attributable to shareholders grew by 4.15% to RMB 11,996,579,413.35 from RMB 11,518,257,281.54 at the end of the previous year[4] - Short-term borrowings increased by 31.91% to RMB 1,928,890,525.46, primarily due to increased borrowings by subsidiaries[6] Receivables and Investments - The company reported a 46.22% increase in receivables financing, amounting to RMB 7,417,684,272.37, attributed to business growth[6] - The company received investment income of RMB 236,484,537.13, reflecting a 65.52% increase from RMB 142,873,766.63 in the previous period[7] - Cash received from investment activities increased by 56.29% to RMB 4,010,048,509.51, driven by the maturity of financial products[7] Shareholder Information - Qingdao Hisense Air Conditioning Co., Ltd. holds 516,758,670 shares, accounting for 37.92% of total shares[9] - Hong Kong Central Clearing (Agent) Co., Ltd. holds 457,828,567 shares, representing 33.60% of total shares[9] - The top ten shareholders collectively hold significant stakes, with the largest shareholder owning 37.92%[10] - The company has a total of 12,445,200 H shares held by its controlling shareholder, accounting for 9.13% of total shares[10] - The report indicates no related party transactions among the top shareholders, except for Qingdao Hisense Air Conditioning Co., Ltd. and Hisense (Hong Kong) Co., Ltd.[10] Corporate Governance - The company’s board of directors includes six executive directors and three independent non-executive directors[11] - The financial report is prepared in both Chinese and English, with Chinese being the authoritative version in case of discrepancies[11] - The company is based in Foshan, Guangdong Province, China[11]

Financial Performance - The company's operating revenue reached RMB 74.115 billion, a year-on-year increase of 9.7%[8] - The net profit attributable to shareholders was RMB 1.435 billion, a significant year-on-year growth of 47.54%[8] - The net profit margin improved by 0.5 percentage points compared to the previous year[8] - The company's operating revenue for 2022 was approximately ¥74.12 billion, representing a year-on-year increase of 9.70% compared to ¥67.56 billion in 2021[24] - The net profit attributable to shareholders for 2022 was approximately ¥1.43 billion, a significant increase of 47.54% from ¥972.58 million in 2021[24] - The net profit after deducting non-recurring gains and losses was approximately ¥905.50 million, up 35.94% from ¥666.13 million in 2021[24] - The weighted average return on equity increased to 13.13% in 2022, up 3.49 percentage points from 9.64% in 2021[25] - The company's operating revenue for Q1 to Q4 of 2022 was 18.30 billion, 20.00 billion, 18.72 billion, and 17.09 billion yuan respectively, showing a decline in the fourth quarter[28] - The net profit attributable to shareholders for Q1 to Q4 of 2022 was 266.23 million, 354.00 million, 449.62 million, and 365.05 million yuan respectively, indicating a strong performance in the third quarter[28] Market Share and Product Innovation - The online market share of Rongsheng refrigerators increased to 12.5%, up 0.4 percentage points year-on-year[8] - The offline market share of Hisense fresh air conditioners reached 26.3%, an increase of 2.5 percentage points year-on-year[8] - The company introduced innovative products such as the "WILL3.0" refrigerator and the C200 air conditioner, leading their respective market segments[10] - The company launched high-end washing and drying sets, C2 and CC, featuring a nano steam generation system and AI sensing technology, enhancing user experience and product innovation[43] - The company launched the Ai Home Central Air Conditioning system, integrating 5G IoT technology, enhancing user experience[39] Strategic Initiatives and Growth Plans - The company proposed to increase the dividend payout ratio to 50% in 2022, reflecting its commitment to shareholder returns[18] - The company aims to capitalize on market opportunities related to energy-saving, health, comfort, and smart products as consumer preferences evolve[32] - The company is focusing on technological innovation and high-quality products to enhance consumer trust and satisfaction[31] - The company plans to enhance user experience by focusing on smart home solutions and improving product interaction scenarios[85] - The company aims to achieve a revenue growth target of 10% for the upcoming fiscal year, reflecting its optimistic outlook[97] Operational Efficiency and Cost Management - The company improved its supply chain efficiency, achieving a reduction in BOM costs for air conditioning and refrigerator businesses by over 30%[16] - The company has implemented advanced manufacturing strategies, optimizing supplier teams and enhancing procurement cost competitiveness through talent acquisition and process improvements[49] - The company's total operating costs rose by 10.03% year-on-year, with raw materials accounting for 90.26% of total costs[58] Talent Acquisition and Management - The company recruited 103 key talents, a year-on-year increase of 52, to enhance team capabilities[9] - The company has established over 20 national and provincial-level technology innovation platforms, enhancing its R&D capabilities[50] - The number of R&D personnel increased by 6.05% to 3,067, with a higher proportion of master's degree holders[67] Environmental and Social Responsibility - The company has established 4 national-level "green factories" and 1 national-level "green supply chain" as part of its commitment to sustainable development[16] - The company has increased investments in environmental protection equipment, including wastewater and air treatment facilities[140] - The company actively engages in social responsibility initiatives, including educational support and environmental projects, such as the "Sandy Tree Public Welfare Forest Project" in the Tengger Desert[141] Governance and Compliance - The company maintains complete independence in business, personnel, assets, organization, and finance from its controlling shareholder[91] - The company has a strict assessment system for remuneration based on annual performance and operational goals[103] - The company has established a system for managing and controlling its subsidiaries through various governance measures[131] Financial Management and Related Party Transactions - The company reported a total of RMB 1,027.23 million in procurement transactions with its indirect controlling shareholder, Hisense Group[154] - The procurement amount for materials from Hisense Group was RMB 48,621.93 million, accounting for 83% of similar transactions[154] - The total expected amount for related party transactions in 2022 was CNY 2,664.685 million, with actual performance at CNY 1,799.310 million (67.5% fulfillment) for sales and services[156] Challenges and Risks - The domestic central air conditioning market experienced a 2.6% decline in capacity in 2022 due to factors such as a slowdown in domestic demand and a sluggish real estate market[32] - Key risks identified include macroeconomic fluctuations, rising costs, exchange rate volatility, and trade protectionism impacting overseas operations[86]

Financial Performance - Total operating revenue for 2022 reached RMB 74.12 billion, a 9.3% increase from RMB 67.56 billion in 2021[6]. - Total operating costs for 2022 were RMB 71.26 billion, up from RMB 65.69 billion in 2021, reflecting a 8.5% increase[6]. - Net profit for 2022 was RMB 3.07 billion, representing a 30.9% increase compared to RMB 2.34 billion in 2021[7]. - The company reported a total profit of RMB 3.82 billion for 2022, a 31.1% increase from RMB 2.92 billion in 2021[7]. - The company’s total comprehensive income for 2022 was RMB 3.09 billion, compared to RMB 2.42 billion in 2021, an increase of 27.6%[8]. - Basic earnings per share for 2022 were RMB 1.05, compared to RMB 0.71 in 2021, indicating a 48.6% increase[8]. - The net profit for 2022 was RMB 3,823,809,728.21, up from RMB 2,916,537,004.54 in 2021, representing a growth of 31.1%[15]. - The company’s domestic sales revenue was 42.624 billion RMB, showing a year-on-year increase of 13.36%[41]. - The net profit attributable to shareholders reached 1.435 billion RMB, marking a significant year-on-year growth of 47.54%[41]. Assets and Liabilities - The total assets of Hisense Home Appliances Group as of December 31, 2022, amounted to RMB 55.38 billion, a decrease from RMB 55.95 billion in 2021, reflecting a decline of approximately 1.03%[2]. - The total liabilities of the company as of December 31, 2022, were RMB 39.10 billion, down from RMB 40.36 billion in 2021, a decrease of about 3.1%[4]. - The equity attributable to the owners of the parent company increased to RMB 11.52 billion from RMB 10.34 billion, reflecting a growth of approximately 11.5%[5]. - The company's non-current assets totaled RMB 18.75 billion, up from RMB 16.25 billion, marking an increase of approximately 15.4%[3]. - The asset-liability ratio improved to 70.60% from 72.13% in the previous year[70]. Cash Flow - The net cash flow from operating activities for 2022 was approximately RMB 4.03 billion, a decrease of 6.52% from RMB 4.31 billion in 2021[53]. - Operating cash inflow totaled RMB 66.77 billion, an increase of 10.13% compared to RMB 60.63 billion in 2021[58]. - Operating cash outflow amounted to RMB 62.74 billion, reflecting an increase of 11.40% from RMB 56.32 billion in the previous year[58]. - Investment cash inflow increased by 28.15% to RMB 22.48 billion, compared to RMB 17.54 billion in 2021[58]. Market Performance - The company reported a significant increase in domestic trading revenue, reaching RMB 42,624,208,014.02 in 2022, compared to RMB 37,601,996,641.67 in 2021, marking a growth of 13.5%[17]. - The domestic central air conditioning market capacity declined by 2.6% in 2022, influenced by a slowdown in domestic demand and a sluggish real estate market[32][33]. - The refrigerator market experienced a retail volume decline of 6.3% and a retail value decline of 4.7% in 2022, with offline sales dropping by 20.0%[35]. - The washing machine market saw a retail volume decrease of 9.0% and a retail value decrease of 10.4%, while mini washing products experienced a 10.5% increase in online retail sales[36]. - The export volume of refrigerators decreased by 21.6% year-on-year in 2022, indicating challenges in the overseas market[40]. Research and Development - Research and development expenses increased to RMB 2.29 billion in 2022, up from RMB 1.99 billion in 2021, marking a 15.3% rise[6]. - Focus will be placed on advancing R&D to improve technological and product competitiveness[63]. - The company is committed to enhancing product quality through advanced manufacturing strategies[63]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance product offerings in the upcoming fiscal year[1]. - The company launched new high-quality products focusing on health, low carbon, and environmental protection, aligning with consumer preferences[41]. - The company has initiated the production line for refrigerators in its Monterrey appliance park in Mexico, enhancing its strategic presence in the Americas[51]. - The company secured multiple key project orders from global customers, including orders for the 800V 60CC large electric compressor, marking a successful expansion into international markets[48]. Shareholder Returns - The company proposed a cash dividend of RMB 5.31 per 10 shares, compared to RMB 2.14 per 10 shares in 2021, after repurchasing 11,699,989 shares[31]. - The company plans to distribute a cash dividend of RMB 5.31 per 10 shares, totaling approximately RMB 717.39 million, pending shareholder approval[66]. Corporate Governance - The company has complied with the Corporate Governance Code during the reporting period[74]. - The company’s auditor confirmed that the financial statements for the reporting period are consistent with the audited consolidated financial statements[73]. - The company will hold an extraordinary general meeting on April 19, 2023, to approve the appointment of new executive directors[79].

Financial Performance - Operating revenue for Q3 2022 reached RMB 18,718,596,599.71, representing a year-on-year increase of 6.09%[3] - Net profit attributable to shareholders was RMB 449,622,342.46, up 44.55% compared to the same period last year[3] - Basic earnings per share for the period was RMB 0.33, reflecting a 43.48% increase year-on-year[4] - The company's net profit after deducting non-recurring gains and losses was RMB 347,348,485.85, reflecting a year-on-year increase of 54.52%[3] - The diluted earnings per share for the period was RMB 0.33, with a return on equity of 4.11%[4] - Investment income for the reporting period was RMB 427,460,084.89, an increase of 86.81% year-on-year[9] Assets and Liabilities - Total assets at the end of the reporting period amounted to RMB 55,764,948,014.37, a slight decrease of 0.33% from the previous year[4] - The equity attributable to shareholders of the listed company was RMB 11,163,835,980.94, showing a year-on-year increase of 7.94%[15] - Trading financial assets increased by 32.36% to RMB 7,446,321,415.89 due to the rise in unexpired financial products at the end of the reporting period[20] - Accounts receivable financing rose by 72.42% to RMB 6,327,260,830.08, primarily due to the company's growth in scale[20] Cash Flow - The net cash flow from operating activities for the year-to-date was RMB 4,112,665,147.87, showing a growth of 17.72%[3] - Cash received from tax refunds was RMB 2,329,825,859.86, reflecting a 30.30% increase compared to the previous year[9] - Cash received from investment income increased by 122.76% to RMB 145,424,642.74, due to higher financial product returns during the reporting period[20] - Cash received from borrowings decreased by 65.22% to RMB 1,043,026,866.50, mainly due to reduced bank borrowings by subsidiaries[20] Shareholder Information - The company reported a total of 37,743 common shareholders at the end of the reporting period[6] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the shares[6] - The total number of ordinary shareholders at the end of the reporting period was 37,743, with the top ten shareholders holding a combined 77.99% of the shares[17] - The top ten shareholders include various entities, with no significant shareholding restrictions noted[18] Expenses and Other Income - The company reported a significant increase in management expenses, totaling RMB 1,353,516,016.13, which is up 55.34% due to the consolidation of three subsidiaries[9] - Other operating income increased by 105.08% to RMB 218,507,475.26, mainly due to the consolidation of three subsidiaries[20] - Non-operating income for the period totaled RMB 102,273,856.61, with a significant portion attributed to government subsidies and asset management gains[5] - The government subsidies recognized in the current period amounted to RMB 46,319,495.72, with a total of RMB 173,323,944.48 from the beginning of the year to the end of the reporting period[16]

Market Performance - The domestic central air conditioning market growth was only 1.7% due to factors like raw material price fluctuations and real estate market adjustments[5]. - Retail sales of household air conditioners decreased by 15.3% year-on-year, with retail volume down by 20.9%[5]. - The refrigerator market saw a retail volume decline of 5.5% and a retail value decline of 3.4% in the first half of 2022[6]. - The washing machine market experienced a retail volume drop of 9.2% and a retail value drop of 10.1%[6]. - Exports of refrigerators, washing machines, and household air conditioners fell by 10.8%, 12.9%, and 2.18% respectively due to various global economic factors[9]. Product Development and Innovation - The average price of household air conditioners increased by 6.5% in the first half of 2022, driven by higher demand for new features[5]. - The high-end refrigerator segment saw a retail value share increase of 4.7 percentage points compared to 2021[6]. - The company is focusing on developing energy-efficient, low-carbon, and smart home appliances to meet evolving consumer demands[6]. - The company launched the "Dual Purification" home central air conditioning under the Hitachi brand, achieving over 15% market share in the home decoration retail market in the first half of 2022[11]. - The company introduced the "Photovoltaic Central Air Conditioning" product line, utilizing photovoltaic energy technology to enhance energy efficiency and reduce carbon emissions[11]. - The Hisense brand's "C200" air conditioner became the top-selling model in the industry for 8 consecutive weeks after its launch[12]. - The Hisense brand's vacuum preservation refrigerator series was recognized as a leading product in the vacuum preservation category in 2022[13]. - The company’s washing machine products received the 2022 German iF Design Award, marking the fifth consecutive win for the company in this prestigious international award[14]. Financial Performance - The company achieved operating revenue of 38.307 billion yuan, a year-on-year increase of 18.15%[10]. - The HVAC business generated main operating revenue of 18.947 billion yuan, up 17.47% year-on-year, while the ice washing business saw a decline of 6.30% to 10.427 billion yuan[10]. - Domestic sales revenue reached 20.654 billion yuan, growing by 12.25%, while international sales revenue surged by 34.57% to 14.322 billion yuan[10]. - The net profit attributable to shareholders was 620 million yuan, reflecting a year-on-year growth of 0.79%[10]. - The net cash flow from operating activities decreased significantly by 65.46%, amounting to RMB 720.03 million compared to RMB 2.08 billion in the previous year[19]. - The company reported a decrease of 5.87% in net profit after deducting non-recurring gains and losses, totaling RMB 428.07 million compared to RMB 454.78 million last year[19]. - The company received government subsidies amounting to RMB 127.00 million, contributing positively to its financial performance[20]. Research and Development - The company established R&D centers in the US, Japan, and Europe, focusing on a unified global platform and standards to enhance product quality and competitiveness[17]. - Research and development expenses increased by 27.71% to RMB 1,067,706,086.41 from RMB 836,068,530.36 in the previous year[24]. - The company adjusted its R&D organizational structure to enhance long-term capabilities and improve global R&D resource collaboration[51]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period amounted to RMB 7,798,340,633.53, representing 14.02% of total assets, an increase of 1.47% compared to the previous year[35]. - The company's accounts receivable decreased by 31.27% to RMB 156,881,858.82 from RMB 228,252,631.50 at the beginning of the period[24]. - Short-term borrowings decreased by 43.71% to RMB 1,609,308,315.26 from RMB 2,858,984,229.49 at the beginning of the period[24]. - The total cash flow from investing activities increased by 180.24% to RMB 1,516,440,091.45 from RMB 541,119,116.10 in the previous year[26]. Risk Management - The company faces risks from macroeconomic fluctuations that could impact consumer demand for home appliances, as well as rising costs of raw materials and labor affecting profitability[56]. - Trade protectionism and barriers in certain regions may increase operational costs and affect the competitiveness of the company's export business[56]. - The company has implemented internal control measures to enhance foreign exchange risk management capabilities[41]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period[79]. - The financial report for the half-year period has not been audited[82]. - The company confirmed that all directors have complied with the standard code of conduct during the reporting period[78]. Shareholder Information - The company's share capital structure as of June 30, 2022, included 903,135,562 A shares (66.27%) and 459,589,808 H shares (33.73%), totaling 1,362,725,370 shares[67]. - The top ten shareholders held a total of 1,134,000,000 shares, representing 83.24% of the company's issued share capital as of June 30, 2022[68]. - The board of directors proposed not to distribute an interim dividend for the six months ending June 30, 2022, consistent with the previous year[79]. Taxation - The corporate income tax rate applicable to the group is 25%[184]. - The effective corporate income tax rate for Hisense subsidiaries is 15% for the years 2020, 2021, and 2022 due to high-tech enterprise certification[186].

Acquisition and Expansion - Hisense completed the acquisition of Sanden Corporation, expanding into automotive air conditioning compressors and thermal management systems[5] - The company completed the acquisition of a leading automotive air conditioning compressor manufacturer, expanding into the automotive air conditioning and thermal management systems market[11] - The company completed the acquisition of SanDian Company on May 31, 2021, which contributed to the consolidated financial statements from June to December 2021[22] Revenue and Profitability - The company achieved a revenue of 67.6 billion CNY in 2021, representing a year-on-year growth of 40%[11] - The revenue from the HVAC business reached 30.4 billion CNY, with a year-on-year increase of 30%[14] - The revenue from the ice and washing machine segment was 23.0 billion CNY, showing a year-on-year growth of 23%[14] - The company’s net profit attributable to shareholders was 0.973 billion CNY, a decrease of 38.4% year-on-year, primarily due to losses in the home air conditioning segment[14] - The company’s overseas sales revenue grew by 58.21% year-on-year, reaching 23.16 billion CNY[14] - The company’s operating revenue for 2021 was RMB 67.56 billion, an increase of 39.61% compared to RMB 48.39 billion in 2020[22] - Net profit attributable to shareholders for 2021 was RMB 972.58 million, a decrease of 38.40% from RMB 1.58 billion in 2020[22] - The company’s basic earnings per share for 2021 was RMB 0.71, a decrease of 38.79% from RMB 1.16 in 2020[22] Market Performance - Hisense's refrigerator exports reached a record high, ranking first in the industry for cumulative export value in 2021[5] - The refrigerator export volume reached a record high, with the company ranking first in the industry for cumulative refrigerator export value in 2021[16] - The company reported a 3.2 percentage point increase in the high-end market share of Ronshen refrigerators year-on-year[5] - The high-end product market share for the company’s refrigerator line increased by 3.2 percentage points year-on-year[11] - The commercial cold chain business saw a revenue increase of 54% year-on-year[11] Research and Development - The company is focusing on technology innovation and ESG development, aligning with the "dual carbon" strategy and enhancing its product competitiveness[12] - The company’s R&D investment amounted to RMB 2.15 billion, representing a 40.27% increase from RMB 1.53 billion in the previous year[32] - The number of R&D personnel increased by 71.02% to 2,892 from 1,691 in the previous year[31] - R&D expenses grew by 55% year-on-year, enhancing product competitiveness and supporting steady revenue growth[43] - The company upgraded its HVAC products to meet national carbon neutrality policies, incorporating 5G wireless communication for smart cloud access[43] Corporate Governance - The company’s board consists of nine members, with the executive directors including Dai Huizhong (Chairman and CEO), Lin Lan, Jia Shaoqian, Fei Licheng, Xia Zhangzhu, and Gao Yuling, while independent non-executive directors include Ma Jinqian, Zhong Gengshen, and Zhang Shijie[59] - The company’s board underwent changes, with Duan Yuebin stepping down as Chairman and CEO on October 28, 2021, and Dai Huizhong assuming the roles[59] - The board has adopted a diversity policy, emphasizing the importance of diverse backgrounds, including gender, age, culture, and professional experience, to enhance performance[60] - The company has established a governance structure to ensure compliance with relevant laws and regulations, including the Corporate Governance Code[64] - The board is tasked with overseeing the preparation of financial statements, ensuring they accurately reflect the company's business status and cash flow[60] Financial Management - The company’s cash cycle improved by 1.82 days year-on-year, indicating better cash management[14] - The company’s financing cash inflow increased significantly to RMB 5.92 billion, a 1,337.6% increase from RMB 411.84 million in the previous year[35] - The company’s total assets and liabilities reflect significant changes due to the consolidation of a subsidiary, impacting various asset categories[37] - The company reported a total asset value of RMB 55.95 billion at the end of 2021, an increase of 33.81% from RMB 41.81 billion at the end of 2020[22] - The company’s total liabilities reached CNY 40,357,298,250.20, compared to CNY 27,405,116,775.00 in 2020, reflecting a growth of 47.0%[180] Environmental and Social Responsibility - The company established a comprehensive environmental management system, achieving ISO14001 certification renewal in December 2021[18] - The company has created four national-level "green factories" and one national-level "green supply chain," actively responding to the national "dual carbon" strategy[19] - The company is committed to developing high-voltage new energy products to meet the growing demand in the new energy vehicle sector[50] Risks and Challenges - The company faces risks from macroeconomic fluctuations, rising costs of raw materials, supply chain disruptions, currency exchange rate volatility, and trade protectionism[51] - The company has identified significant uncertainties regarding its ability to continue as a going concern, which may impact future financial stability[177] Employee Management - The company employed 48,263 staff members, with total employee expenses amounting to RMB 5.34 billion in 2021, up from RMB 4.28 billion in 2020[102] - The company has implemented a three-tier training system, providing over 410,000 training hours to enhance employee skills and capabilities[103] Related Party Transactions - The independent non-executive directors confirmed that the ongoing related transactions are part of the company's daily operations and are conducted under fair and reasonable terms[111] - The auditors did not identify any issues regarding the approval of ongoing related transactions or compliance with pricing policies[112] - The total amount of related party transactions for purchasing finished products from Hisense Group is RMB 193.90 million, accounting for 0.00% of similar transactions[140] Future Outlook - The strategic focus for 2022 includes improving the intelligence level of home appliances and increasing the proportion of connected smart products[49] - The company plans to strengthen its brand strategy and leverage its sponsorship of the 2022 FIFA World Cup to expand its overseas market presence[50]