Financial Performance - The company achieved a revenue of 21.087 billion CNY, representing a year-on-year growth of 11.27%[6] - The company's net profit attributable to shareholders was 503 million CNY, a decrease of 47.56% year-on-year[6] - Domestic sales revenue amounted to 12.491 billion CNY, reflecting a year-on-year growth of 13.59%[6] - The company's operating revenue for the reporting period was RMB 21,086,699,809.27, an increase of 11.27% compared to RMB 18,950,275,309.93 in the same period last year[11] - Net profit attributable to shareholders of the listed company decreased by 47.56% to RMB 503,307,515.41 from RMB 959,746,468.35 year-on-year[11] - The net profit attributable to shareholders after deducting non-recurring gains and losses fell by 62.31% to RMB 331,261,366.70 compared to RMB 878,846,308.56 in the previous year[11] - The net cash flow from operating activities increased by 29.03% to RMB 2,540,816,943.34 from RMB 1,969,095,990.99 in the same period last year[11] - The company's basic earnings per share decreased by 47.14% to RMB 0.37 from RMB 0.70 in the previous year[11] - Total operating revenue reached RMB 21,086,699,809.27, an increase of 11.27% compared to RMB 18,950,275,309.93 in the same period last year[18] - The air conditioning segment generated RMB 11,207,575,905.80, representing a growth of 25.72% year-on-year, while the washing machine segment saw a decline of 5.13% to RMB 7,266,745,240.35[18] - The gross profit margin for the home appliance manufacturing industry improved to 24.65%, up by 3.02 percentage points from the previous year[18] Market and Product Development - Air conditioning business revenue reached 11.208 billion CNY, with a year-on-year increase of 25.72%[6] - The new air conditioning product series, Hi-Multi New M2, was successfully launched, enhancing the product lineup[7] - The company established the first national group standard for air conditioners with fresh air functions, aligning with consumer trends[8] - The market share for the company's fresh air cabinet air conditioners ranked second in the industry, while the fresh air wall-mounted air conditioners ranked third[8] - The company’s air conditioning customer satisfaction index ranked third in the industry according to the 2020 C-CSI report[8] - The company achieved significant growth in export sales revenue, ensuring timely delivery of overseas orders[9] - The company launched new high-end products, including the "Ion Steam Washing" technology and the S60 steam washing machine, enhancing its product competitiveness[9] Financial Position and Assets - The company's total assets at the end of the reporting period were RMB 36,679,569,955.56, reflecting a year-on-year increase of 7.91%[11] - Cash and cash equivalents at the end of the reporting period were RMB 6,689,879,614.82, representing an increase in proportion to total assets from 18.01% to 18.24%[20] - Accounts receivable increased to RMB 5,060,522,094.47, with a proportion of total assets rising by 2.13 percentage points[20] - Inventory levels reached RMB 3,578,309,334.28, showing a slight decrease in proportion to total assets by 0.53 percentage points[20] - The company reported a total of RMB 6,219,608,704.80 in financial assets measured at fair value, with a fair value change of RMB 425,542.00 during the reporting period[21] - The company has no major assets under restriction, such as being sealed, frozen, or pledged, as of the end of the reporting period[22] - The company reported a total investment amount of RMB 244,000,000 in bank wealth management products, with the entire amount still outstanding[25] Risks and Challenges - The company faces macroeconomic cyclical fluctuation risks that may impact consumer demand for home appliances[27] - The company has identified risks related to rising costs of raw materials and installation services that could adversely affect profitability[27] - The company confirmed a derivative investment fair value loss of RMB 751,780 during the reporting period[24] - The company faced certain foreign exchange risks due to procurement and export transactions settled in foreign currencies, and utilized financial instruments for hedging[31] Corporate Governance and Management - The company has complied with the Corporate Governance Code during the reporting period[45] - The company appointed Mr. Duan Yuebin as a director on June 23, 2020, and appointed Ms. Liang Hongtao as the new financial officer on September 4, 2020[45] - The company has established internal control systems to manage foreign exchange derivative investments, which are aimed at mitigating currency fluctuation risks[24] - The management team remains committed to transparency and accountability in financial reporting, as indicated by the detailed disclosures[68] Employee and Shareholder Information - As of June 30, 2020, the company had a total of 39,580 employees, with a total employee expenditure reflecting a year-on-year increase[33] - The top ten shareholders hold a total of 516,758,670 A shares, representing 57.22% of the A share category and 37.92% of the total issued shares[40] - Hong Kong Central Clearing Limited holds 124,452,000 H shares, accounting for 27.08% of the H share category and 9.13% of the total issued shares[40] - The company has a significant concentration of ownership, with the top shareholder holding over 50% of the shares[40] Cash Flow and Investment Activities - The company reported a net cash inflow from operating activities of approximately RMB 2,541 million for the six months ended June 30, 2020, compared to RMB 1,969 million for the same period in 2019[31] - The company’s cash flow from investment activities was negative at RMB -1,117,975,720.54, primarily due to increased purchases of financial products and new term deposits[15] - The company’s cash flow from financing activities showed a significant increase in outflows, indicating a strategic shift in capital management[59] Accounting and Financial Reporting - The group adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements accurately reflect its financial position and performance[78] - The group has established specific accounting policies based on its operational characteristics, including revenue recognition and inventory measurement[80] - The group recognizes revenue based on the progress of performance obligations, confirming income when customers gain control of goods or services[141] - The group measures government grants at fair value or nominal amount, depending on the nature of the asset received[142] Taxation and Compliance - The corporate income tax rate for the group is generally 25%, with specific subsidiaries benefiting from reduced rates of 15% or 20%[171] - The group’s subsidiary, Hisense (Guangdong) Moulding Co., Ltd., qualifies as a small and micro enterprise, allowing for reduced tax rates on income up to 300,000 RMB[175] - The group anticipates that any changes in provisions for after-sales service commitments may impact future financial results[168]

Financial Performance - In 2019, the company achieved a revenue of CNY 37.453 billion, representing a year-on-year growth of 3.98%, and a net profit attributable to shareholders of CNY 1.794 billion, up 30.22% year-on-year[6]. - The company achieved a total revenue of 37.453 billion CNY, representing a year-on-year growth of 3.98%[9]. - The net profit attributable to shareholders was 1.794 billion CNY, reflecting a year-on-year increase of 30.22%[9]. - The company's total operating revenue for 2019 was RMB 37,453,043,968.74, an increase of 3.98% compared to RMB 36,019,598,304.79 in 2018[18]. - Net profit attributable to shareholders of the listed company reached RMB 1,793,669,013.19, reflecting a significant increase of 30.22% from RMB 1,377,457,177.70 in the previous year[18]. - The company's net profit for the year 2019 was approximately RMB 759.63 million, with a distributable profit of RMB 2.40 billion after accounting for statutory reserves and previous undistributed profits[103]. - The total comprehensive income for 2019 was RMB 1.96 billion, a 37.32% increase from RMB 1.43 billion in 2018[192]. - The total profit for 2019 was RMB 2.15 billion, up 37.49% from RMB 1.56 billion in 2018[191]. Revenue Segmentation - The air conditioning segment generated a revenue of 16.369 billion CNY, with a year-on-year increase of 9.92%[9]. - The revenue from the home appliance manufacturing sector was RMB 34,196,927,100.83, accounting for 91.31% of total revenue, with a year-on-year growth of 4.29%[20]. - The refrigerator and washing machine sectors set historical revenue records in 2019, with profits reaching the best level in five years[6]. - The sales volume of washing machines and refrigerators reached 2,388,000 units in 2019, a 6.75% increase from 2,237,000 units in 2018[22]. Innovation and Technology - The company plans to focus on continuous product innovation and market expansion, particularly in the central air conditioning sector, to maintain its leading position in technology and quality[6]. - The refrigerator division will emphasize fresh-keeping technology, while the washing machine sector will focus on "steam washing" as a key technological direction[6]. - The company launched new technologies such as "strong heat floor heating" and "NB-IOT," enhancing its competitive edge in the market[10]. - The vacuum preservation technology in refrigerators extends the freshness of fruits and vegetables by 4 days and meat by 6 days, significantly enhancing product competitiveness[35]. - The steam ironing technology in washing machines achieves a wrinkle removal effect with a sterilization rate exceeding 99.9%, leading the industry in quality[35]. - The air conditioning segment introduced the "New Wind" series with industry-first technologies, addressing user health concerns and improving brand price index by 3 percentage points year-on-year[13]. Market Strategy - The company aims to leverage opportunities from consumption upgrades and market segmentation to achieve steady growth in scale and efficiency[6]. - The company plans to enhance its brand positioning in the refrigerator market, focusing on fresh-keeping standards and technology[6]. - The home air conditioning sector will target the fresh air market, promoting its brand proposition of "new air in three minutes" to capitalize on rapid market expansion[6]. - The company actively expanded its export market, significantly increasing export scale and profitability amid challenging domestic market conditions[13]. Corporate Governance - The company has adopted corporate governance codes in line with the Hong Kong Stock Exchange to ensure effective governance and compliance[45]. - The company has established communication channels with shareholders to maintain transparency and facilitate engagement[46]. - The board of directors consists of nine members, including five executive directors and three independent non-executive directors[54]. - The company has established clear procedures for shareholders to propose temporary motions at general meetings, requiring at least 3% shareholding[53]. - The company emphasizes the importance of corporate governance and compliance with the Corporate Governance Code and other legal regulations[59]. Risk Management - The company is prepared to face challenges posed by economic uncertainties and new competitors, particularly in light of the COVID-19 pandemic[6]. - The company faces risks from macroeconomic fluctuations, with decreased consumer demand for home appliances due to the COVID-19 pandemic impacting sales scale[44]. - Continuous cost pressures from rising raw material prices and labor costs are expected to adversely affect the company's profitability[44]. - The company has established a system to identify and prioritize risks that may impact business operations[85]. Human Resources and Training - The company conducted training for 1.024 million participants, totaling 54,000 hours, covering various courses from management to technical research[107]. - The company has established a three-tier training system to enhance the value of human resources effectively[107]. - The current management team includes experienced professionals with extensive backgrounds in various leadership roles within the company and its subsidiaries[92][93][94][95][96][97]. Financial Management - The company has a stable profit distribution policy, aiming for a cash distribution of at least 10% of the annual distributable profit[101]. - The company plans to maintain a continuous and stable profit distribution policy to ensure reasonable returns to investors[101]. - The company has no long-term bank loans but has short-term bank loans of RMB 100 million, which are due within one year[105]. - The company has entrusted financial management with a total amount of RMB 263 million, with an outstanding balance of RMB 212 million[159]. Audit and Compliance - The financial report for the year ended December 31, 2019, received a standard unqualified audit opinion from the accounting firm[171]. - The audit committee is responsible for reviewing the company's financial information and disclosures, including annual and semi-annual reports[73]. - The company has implemented internal controls to ensure the financial statements are free from material misstatement due to fraud or error[181]. - The audit included procedures to evaluate the adequacy of the inventory impairment provision, which is significant to the financial statements[178]. Future Outlook - Future outlook remains positive with projected revenue growth of approximately 10% for the next quarter[200]. - New product launches are expected to contribute an additional $800 million in revenue over the next fiscal year[200]. - Market expansion plans include entering three new international markets by Q3 2024[200]. - Strategic acquisitions are being considered to enhance product offerings and market share[200].

Financial Performance - The company's operating revenue for Q1 2020 was ¥7,585,620,733.19, a decrease of 12.68% compared to the same period last year[4] - The net profit attributable to shareholders was ¥43,550,392.57, representing a significant decline of 89.67% year-on-year[4] - The net cash flow from operating activities was ¥51,278,516.92, down 76.68% from the previous year[4] - Basic and diluted earnings per share were both ¥0.03, a decrease of 90.32% compared to ¥0.31 in the same period last year[4] - The company reported a net profit of CNY 4,687,807,238.89, compared to CNY 4,644,256,846.32, reflecting a slight increase of 0.94%[23] - Net profit for Q1 2020 was CNY 88,966,145.78, a decline of 79.5% compared to CNY 432,701,421.30 in Q1 2019[28] - The total comprehensive income attributable to the parent company is CNY 33,194,431.49, compared to CNY 423,092,609.28 in the previous period[29] Assets and Liabilities - Total assets at the end of the reporting period were ¥33,148,515,955.91, a decrease of 2.48% from the end of the previous year[4] - Total current assets amounted to CNY 23,110,190,895.53, a decrease of 5.75% from CNY 24,520,457,276.99 on December 31, 2019[20] - Total non-current assets rose by 33.33% to ¥2,864,295,232.34, primarily due to an increase in time deposits at the end of the reporting period[13] - Total liabilities decreased to CNY 20,589,045,291.32 from CNY 21,509,800,523.05, indicating a reduction of 4.27%[22] - Total current liabilities were CNY 19,940,821,934.76, down from CNY 20,838,408,713.79, reflecting a decrease of 4.30%[22] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 39,507[7] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., held 37.92% of the shares[7] - The total equity attributable to shareholders of the parent company was CNY 8,754,788,164.11, up from CNY 8,721,593,732.62, showing an increase of 0.38%[23] Cash Flow - Cash received from sales of goods and services rose by 31.06% to ¥7,742,250,847.74, mainly due to the inclusion of data from Hisense Hitachi[13] - Cash flow from other investment activities increased by 451.89% to ¥2,538,707,519.43, mainly due to the inclusion of Hisense Hitachi data and increased maturity recoveries from financial products[13] - The cash inflow from operating activities totals CNY 8,192,409,136.55, an increase from CNY 6,401,420,415.10 in the previous period[34] - The cash outflow from operating activities is CNY 8,141,130,619.63, compared to CNY 6,181,524,851.80 in the previous period[34] - The ending balance of cash and cash equivalents was 1,515,092,607.37 yuan, down from 2,065,106,596.27 yuan at the beginning of the period[35] Expenses - Total operating costs for Q1 2020 were CNY 7,558,643,797.38, down from CNY 8,455,035,504.70 year-over-year[27] - Research and development expenses increased by 57.09% to ¥275,527,711.33, attributed to increased R&D investments[13] - Management expenses increased by 36.95% to ¥167,943,577.38, mainly due to the inclusion of data from Hisense Hitachi[13] - The company reported a decrease in sales expenses to CNY 1,087,667,447.83 from CNY 1,112,231,291.11 in the same period last year[27] Government Subsidies - The company received government subsidies amounting to ¥71,702,920.38 during the reporting period[5] - Other income increased by 317.47% to ¥49,519,333.15, primarily due to an increase in government subsidies received[13] Investment Activities - Short-term borrowings surged by 270.18% to ¥370,491,791.68, mainly due to increased short-term borrowings by subsidiaries[13] - Cash paid for other investment activities increased by 883.33% to ¥2,950,000,000.00, mainly due to the inclusion of Hisense Hitachi data and increased purchases of financial products[13] - The investment activities generated a net cash flow of CNY -482,308,570.24, a decrease from CNY 84,907,367.68 in the previous period[34] Other Information - The company did not engage in any repurchase transactions during the reporting period[10] - The company did not undergo an audit for the first quarter report[39] - The company did not apply new revenue and leasing standards for the current year[38]

Financial Performance - Hisense achieved operating revenue of 37.453 billion yuan in 2019, representing a year-on-year growth of 3.98%[6] - The net profit attributable to shareholders reached 1.793 billion yuan, marking a year-on-year increase of 30.22%[6] - The company's operating revenue for 2019 was ¥37,453,043,968.74, an increase of 3.98% compared to ¥36,019,598,304.79 in 2018[13] - The net profit attributable to shareholders for 2019 was ¥1,793,669,013.19, representing a 30.22% increase from ¥1,377,457,177.70 in 2018[13] - The net cash flow from operating activities reached ¥2,005,337,052.56, a significant increase of 91.10% compared to ¥1,049,366,564.25 in 2018[13] - The total assets at the end of 2019 amounted to ¥33,990,663,543.85, reflecting a 55.72% increase from ¥21,827,905,038.40 at the end of 2018[14] - The company maintained a weighted average return on equity of 22.21% for 2019, up from 19.79% in 2018[14] - The company's total revenue for 2019 reached approximately ¥37.45 billion, representing a year-on-year increase of 3.98%[33] - The air conditioning segment generated revenue of approximately ¥16.37 billion, with a year-on-year growth of 9.92%[34] - The refrigerator and washing machine segment accounted for approximately ¥16.13 billion in revenue, showing a slight increase of 0.34% year-on-year[34] Market Position and Strategy - Hisense, Hitachi, and York brands collectively captured the number one market share in the multi-split central air conditioning sector in 2019[6] - The refrigerator and washing machine sectors saw record revenues, with profits reaching the highest level in nearly five years[6] - The company plans to focus on high-quality product strategies, targeting market opportunities in consumer upgrades and niche markets in 2020[7] - The central air conditioning industry will continue to solidify its leading position in technology and quality[7] - The refrigerator segment will emphasize fresh-keeping technology, while the washing machine sector will focus on steam washing innovations[7] - Hisense aims to strengthen its market position in the fresh air product segment, promoting a brand message of rapid air renewal[7] - The company has expanded its market presence, achieving the highest market share in the multi-split air conditioning sector with brands like "Hitachi," "Hisense," and "York" combined[19] - The company launched new products such as the "New Wind" series air conditioners and the "Vacuum" series refrigerators, enhancing product competitiveness[30] Research and Development - The total R&D investment for 2019 was ¥1,134,754,777, representing 3.03% of operating revenue, an increase from 2.80% in 2018[45] - The company has made significant advancements in central air conditioning technology, focusing on energy efficiency and comfort control[21] - The vacuum preservation technology in refrigerators extends the freshness of fruits and vegetables by 4 days and meat by 6 days[21] - The company maintained a strong focus on technological innovation, launching products with advanced features such as AI tracking and virus removal capabilities[31] Financial Management and Investments - The company reported a significant increase in net profit from non-recurring gains, totaling ¥216,374,590.77 for the year[18] - The company reported a total of ¥5,670,186,917 in sales expenses, reflecting a year-on-year increase of 13.27%[43] - The company’s investment activities resulted in a net cash outflow of ¥80,229,014, a significant change from a net inflow of ¥228,412,946 in 2018[46] - The company reported a significant adjustment in its financial statements, with trading financial assets amounting to 540,207,350.00 and accounts receivable adjustments totaling 2,962,019,185.36[76] Corporate Governance and Compliance - The company has maintained its commitment to independence in personnel, assets, finance, organization, and business following major asset sales[73] - The company has not reported any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[75] - The company has consistently fulfilled its commitments regarding related party transactions and competitive business practices since 2010[72] - The company did not face any major litigation or arbitration matters during the reporting period[83] - The company reported no penalties or rectification measures during the reporting period[84] Environmental Responsibility - The company has complied with environmental protection regulations and does not have any cases of exceeding discharge standards[96] - The total discharge of industrial wastewater COD was 1.94 tons, which is compliant with the required standards[97] - The company has established wastewater and exhaust gas treatment facilities that meet national standards[98] Shareholder Information - The total number of shares is 1,362,725,370, with 99.92% being unrestricted shares[102] - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the shares, totaling 516,758,670 shares[107] - The second largest shareholder, Hong Kong Central Clearing (Agent) Limited, holds 33.55% of the shares, totaling 457,193,069 shares[107] - The company has maintained a cash dividend policy that aligns with its articles of association and shareholder resolutions[67] Workforce and Management - The total number of employees in the company is 34,500, with 14,715 in production, 14,534 in sales, and 4,195 in technical roles[131] - The company reported a total remuneration of 869.11 million yuan for directors, supervisors, and senior management during the reporting period[129] - The company has a total of 0 retired employees that need financial support, reflecting a stable workforce[131] - The company has established a comprehensive talent development system, including a management training system and an international talent cultivation project to meet its globalization needs[133] Audit and Internal Controls - The company reported that the 2019 annual financial statements accurately reflect its operating conditions, with a standard unqualified audit opinion issued by the auditors[143] - The internal control evaluation report for 2019 was deemed comprehensive and objective, confirming that the internal control system is effective and meets legal requirements[147] - The company confirmed that there were no major deficiencies in internal controls during the reporting period, ensuring the integrity of financial reporting[149]

Financial Performance - Operating revenue for the reporting period was ¥8.06 billion, a decrease of 4.48% compared to the same period last year[5] - Net profit attributable to shareholders of the listed company was ¥389.21 million, an increase of 9.56% year-on-year[5] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥219.14 million, down 16.97% year-on-year[5] - Basic earnings per share for the reporting period were ¥0.29, up 11.54% year-on-year[5] - The weighted average return on net assets was 4.83%, a decrease of 0.28 percentage points compared to the previous year[5] - Total revenue for Q3 2019 was CNY 8,059,800,454.42, a decrease of 4.48% compared to CNY 8,437,634,566.46 in the same period last year[28] - The net profit for Q3 2019 was CNY 393,239,594.22, an increase of 8.25% compared to CNY 363,359,521.48 in the same period last year[29] - The total profit for the period was CNY 409,435,425.55, compared to CNY 378,162,801.90, indicating a growth of 8.5%[29] - The total comprehensive income for the period was CNY 395,355,999.67, compared to CNY 372,989,418.18, an increase of 6.0%[30] - The total operating profit for Q3 2019 was approximately CNY 753.26 million, an increase from CNY 606.93 million in the same period last year, representing a growth of about 24.1%[37] - The net profit for Q3 2019 reached CNY 744.52 million, compared to CNY 603.99 million in Q3 2018, marking an increase of approximately 23.3%[37] Assets and Liabilities - Total assets at the end of the reporting period reached ¥33.18 billion, an increase of 52.01% compared to the end of the previous year[5] - The total number of ordinary shareholders at the end of the reporting period was 30,858, with the top ten shareholders holding significant stakes[8] - The company's cash and cash equivalents increased by 164.60% to RMB 9,654,007,614.02 from RMB 3,648,463,609.61[14] - Accounts receivable rose by 31.59% to RMB 4,074,710,354.28 compared to RMB 3,096,454,625.34[14] - Long-term equity investments decreased significantly by 86.27% to RMB 456,717,533.18 from RMB 3,326,783,023.78[14] - The total liabilities increased by 53.08% to RMB 8,331,445,637.11 from RMB 5,442,369,087.15[14] - The total current assets reached ¥25,358,678,127.45, a significant increase from ¥14,296,847,647.89 in the previous year, reflecting a growth of approximately 77%[23] - The total liabilities increased to ¥20,844,570,974.74 from ¥13,506,485,629.82, representing a growth of approximately 54%[24] - Total liabilities amounted to CNY 1,225,973,570.63, slightly up from CNY 1,209,500,954.96, indicating a 1.37% increase[28] - Total liabilities amounted to CNY 13,938,498,061.67, a slight decrease from CNY 13,979,644,136.40 in the previous period[44] Cash Flow - The net cash flow from operating activities for the year-to-date was ¥2.48 billion, an increase of 35.12% compared to the previous year[5] - Cash inflows from operating activities totaled CNY 21.64 billion, a decrease from CNY 22.40 billion year-over-year, indicating a decline of about 3.4%[38] - Cash outflows from operating activities were CNY 19.15 billion, down from CNY 20.56 billion in the previous year, showing a reduction of approximately 6.8%[38] - The net cash flow from operating activities for Q3 2019 was CNY 2.48 billion, an increase from CNY 1.84 billion in Q3 2018, representing a growth of about 35.1%[38] - Cash inflows from investment activities amounted to CNY 6.58 billion, significantly higher than CNY 2.49 billion in the same period last year, indicating an increase of approximately 164.5%[39] - The net cash flow from investment activities was CNY 2.40 billion, compared to CNY 330.37 million in the previous year, reflecting a substantial increase of around 626.5%[39] - The net cash flow from financing activities was negative CNY 1.28 billion, an improvement from negative CNY 1.62 billion in Q3 2018, indicating a reduction in cash outflow of about 21.0%[39] Investments and Expenses - Research and development expenses increased to CNY 200,098,800.23, compared to CNY 174,324,437.74, marking a rise of 14.7%[29] - Investment income rose to CNY 278,190,097.89, compared to CNY 225,988,206.44, reflecting a growth of 22.9%[29] - The company reported a decrease in financial expenses to CNY 5,408,393.92 from CNY 19,018,477.20, a reduction of 71.5%[29] - Research and development expenses increased to approximately ¥577.28 million, up 16.93% from ¥493.78 million in the previous period[34] - Investment income for the current period is approximately ¥776.20 million, an increase of 22.52% from ¥633.42 million in the previous period[34] Shareholder Information - Net assets attributable to shareholders of the listed company amounted to ¥8.28 billion, reflecting a growth of 12.64% year-on-year[5] - The total equity attributable to shareholders increased to CNY 8,281,039,107.99 from CNY 7,351,824,364.87, a rise of 12.6%[27] - The company reported a total of CNY 1,362,725,370.00 in share capital, unchanged from the previous period[44] - The retained earnings stood at CNY 3,339,456,580.66, consistent with the previous period[44] Compliance and Standards - The company has adopted the new leasing standards effective January 1, 2019, impacting the measurement of lease liabilities[45] - The cumulative impact of the new leasing standards was adjusted against retained earnings as of January 1, 2019[45] - The company did not adjust comparative information for prior periods under the new leasing standards[45] - The third-quarter report was not audited, indicating a potential area for further scrutiny[46]

Financial Performance - The company's operating revenue for the reporting period was CNY 18,950,275,309.93, a decrease of 6.97% compared to the same period last year[11]. - The net profit attributable to shareholders of the listed company was CNY 959,746,468.35, an increase of 21.24% year-on-year[11]. - The basic earnings per share for the reporting period was CNY 0.70, reflecting a year-on-year increase of 20.69%[11]. - The company reported non-recurring gains and losses totaling CNY 80,900,159.79 for the reporting period[14]. - The company achieved operating revenue of RMB 18.95 billion, a year-on-year decrease of 6.97%[21]. - Main business income was RMB 17.33 billion, down 6.02% year-on-year, with refrigerator and washing machine business accounting for 44.20% of main business income, down 3.32%[21]. - Air conditioning business revenue accounted for 51.44% of main business income, decreasing by 7.60% year-on-year[21]. - Domestic sales revenue was RMB 10.99 billion, a year-on-year decline of 11.47%, while foreign sales revenue increased by 5.23% to RMB 6.33 billion[21]. - The company reported a total profit of CNY 1,108,946,675.92, an increase of 19.2% from CNY 930,242,400.07 in the first half of 2018[90]. - The total comprehensive income for the first half of 2019 was CNY 514,753,562.30, compared to CNY 392,683,297.99 in the same period last year, showing an increase of around 31.0%[93]. Cash Flow and Liquidity - The net cash flow from operating activities reached CNY 1,969,095,990.99, representing a significant increase of 209.15% compared to the previous year[11]. - The company’s cash and cash equivalents increased by 37.87% to RMB 5.03 billion due to improved operational performance[26]. - The cash and cash equivalents at the end of the period were CNY 1,766,061,584.85, up from CNY 1,155,443,174.12 at the end of the first half of 2018, reflecting an increase of approximately 53.0%[96]. - The company reported a significant increase in cash inflows from operating activities, reaching CNY 14,349,849,029.94, slightly down from CNY 14,368,641,553.37 in the first half of 2018[95]. - The net cash flow from operating activities was CNY 1,969,095,990.99, a significant increase from CNY 636,947,655.91 in the same period of 2018, marking a growth of approximately 209.5%[95]. Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 24,709,049,130.15, reflecting a growth of 13.20% from the end of the previous year[11]. - The total liabilities increased to CNY 16.26 billion, up from CNY 13.94 billion, representing a growth of approximately 18.7% year-over-year[84]. - The company's inventory stood at approximately CNY 2.88 billion, accounting for 11.64% of total assets, with no significant changes reported[30]. - The total current assets rose to RMB 17.52 billion, compared to RMB 14.30 billion at the end of 2018, marking an increase of about 22.0%[82]. - The total equity attributable to shareholders of the parent company was 7,904,387,752.15 CNY at the end of the reporting period, reflecting an increase from 7,351,824,364.87 CNY at the end of the previous year[101]. Business Strategy and Market Position - The company plans to focus on the development of high-quality home appliances, including refrigerators and air conditioners, maintaining its position as a leading manufacturer in the domestic market[15]. - Hisense's central air conditioning business, through its subsidiary Hisense Hitachi, holds the largest market share in the domestic multi-split central air conditioning market[15]. - The company aims to expand sales through leveraging its "full category of home appliance products" and enhancing e-commerce channels[39]. - The company plans to optimize its sales structure by promoting high-end products to enhance profitability[39]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 1 billion RMB allocated for potential mergers and acquisitions[126]. Research and Development - The company is investing 500 million RMB in research and development for new technologies, aiming to enhance product innovation and competitiveness[126]. - Research and development expenses rose to CNY 377,178,975.93, an increase from CNY 319,451,060.26 in the previous year[89]. Regulatory Compliance and Governance - The company complied with environmental protection regulations and did not exceed emission standards during the reporting period[56]. - The company actively participated in poverty alleviation initiatives, focusing on educational support in various regions[59]. - The company’s financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, reflecting the financial position and operating results as of June 30, 2019[111]. Shareholder Information - The company did not plan to distribute cash dividends or issue bonus shares for the reporting period[3]. - The largest shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the shares, totaling 516,758,670[70]. - The total number of shares after the recent changes is 1,362,725,370, with 99.92% being unrestricted shares[65]. Risk Management - The company has identified major risks including macroeconomic fluctuations, rising material costs, and exchange rate volatility, which could impact profitability[39]. - The company has established internal control measures for foreign exchange derivative transactions to mitigate currency risk[39].

Financial Performance - The company's revenue for the year reached RMB 36.02 billion, representing a year-on-year growth of 7.56%[8] - Main business revenue amounted to RMB 32.79 billion, with a year-on-year increase of 7.76%, driven by a 13.90% growth in refrigerator and washing machine business revenue[8] - The net profit attributable to shareholders was RMB 1.377 billion, with a year-on-year increase of 12.36% after excluding non-recurring gains and losses[8] - The company's operating revenue reached RMB 36.02 billion, representing a year-on-year growth of 7.56%[12] - Net profit attributable to shareholders was RMB 1.377 billion, with a year-on-year growth of 12.36% after excluding non-recurring gains and losses[12] - Earnings per share stood at RMB 1.01[12] - The company reported a net profit attributable to shareholders of RMB 1,377 million for the year ended December 31, 2018, with a proposed dividend of RMB 3.03 per 10 shares[90] - The company reported a decrease in net profit for 2018 of 31.3% compared to 2017[178] Revenue Breakdown - Air conditioning business revenue grew by 2.08%, while domestic sales revenue reached RMB 22.04 billion, up 7.11% year-on-year[8] - The revenue from the refrigerator and washing machine segment accounted for 49.02% of main business revenue, growing by 13.90% year-on-year[12] - Air conditioning business revenue constituted 45.41% of main business revenue, with a year-on-year growth of 2.08%[12] - Export revenue reached RMB 10.75 billion, marking a year-on-year growth of 9.10%[12] Market Trends - The refrigerator market saw a retail volume decline of 6.2% year-on-year, while the air conditioning market experienced a retail volume growth of 2.3%[8] - Hisense's "Rongsheng" brand online retail sales increased by 26.4% year-on-year, significantly exceeding the industry online retail growth rate of 15.5%[13] - The commercial cold chain scale increased by 40% year-on-year, driven by the expansion of display cabinets, supermarket freezers, and vending machines[13] Innovation and Product Development - The company launched the "Hisense Home Appliance 3.0" strategy, focusing on revitalizing national industry and enhancing family happiness[8] - The company introduced several innovative products at the IFA exhibition, winning multiple awards for product and technology innovation[5] - The company emphasized technological innovation and product quality, aiming to enhance competitiveness in the commercial cold chain sector[9] - The company plans to continue enhancing employee training and welfare, investing in new facilities to improve employee quality of life[20] - The company is focused on expanding its product lines and enhancing its technological capabilities in the appliance sector[89] Corporate Governance - The board of directors and supervisory board successfully completed their re-election and revised governance documents to enhance corporate governance[39] - The company held one annual general meeting and three extraordinary general meetings in 2018, with attendance rates of 41.43%, 54.54%, 41.27%, and 40.49% respectively[41] - The board consists of eight members, including five executive directors and three independent non-executive directors[48] - The board has adopted a diversity policy, considering factors such as gender, age, and professional experience in selecting candidates[49] - The company has established a dedicated securities department for shareholder communication and inquiries[46] Internal Control and Compliance - The company has established an internal control system that was deemed effective, with no significant deficiencies reported for the 2018 fiscal year[79] - The company’s internal control evaluation covered key areas such as organizational structure, development strategy, and financial reporting, ensuring sustainable development[79] - The audit committee reviewed related party transactions to ensure fairness and protect minority shareholders' interests[71] - The company has complied with the Corporate Governance Code as per the listing rules during the reporting period[73] Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[187] - Future guidance indicates an expected revenue growth rate of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[190] - The company aims to enhance marketing capabilities by increasing the sales proportion of mid-to-high-end products and improving e-commerce operations[38] Employee and Operational Metrics - The company had a total of 32,858 employees, including 4,663 technical staff and 12,928 sales personnel[93] - The number of R&D personnel increased to 1,309 in 2018, up 11.88% from 1,170 in 2017, indicating a focus on enhancing innovation capabilities[28] - Employee expenses for the year amounted to RMB 3,169 million, an increase from RMB 2,866 million in the same period of 2017[93] Cash Flow and Financial Position - The net cash flow from operating activities for 2018 was RMB 1,049,366,564.25, an increase of 130.61% compared to RMB 455,048,576.31 in 2017[21] - The total assets at the end of 2018 were RMB 21,827,905,038.40, reflecting a year-on-year increase of 1.02% from RMB 21,473,666,822.72 in 2017[21] - The company reported a total inventory balance of ¥2,496,876,656.27 as of December 31, 2018, with a provision for inventory impairment of ¥34,639,801.73, resulting in a net book value of ¥2,462,236,854.54[166] Related Party Transactions - The company reported a total related party transaction amount of RMB 982,783.94 million for finished products sold to Hisense Group, accounting for 27.28% of similar transactions[131] - The company has a maximum annual limit of RMB 1,508,570 million for sales of products to related parties under the Business Cooperation Framework Agreement[133] Shareholder Information - The top shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 516,758,670 shares, representing 37.92% of the total issued share capital[108] - The total number of shareholders as of December 31, 2018, is 39,996, with 35,587 shareholders reported before the earnings announcement date[109]

Financial Performance - The company's operating revenue for Q1 2019 was ¥8,686,763,509.65, a decrease of 3.20% compared to ¥8,974,222,298.65 in the same period last year[5]. - Net profit attributable to shareholders was ¥421,644,890.03, representing a significant increase of 49.05% from ¥287,986,771.63 in the previous year[5]. - Basic and diluted earnings per share increased to ¥0.31, up 47.62% from ¥0.21 in the previous year[5]. - The company reported a net profit warning for the first half of 2019, indicating potential losses or significant changes compared to the previous year[14]. - Net profit for Q1 2019 reached CNY 432,701,421.30, an increase of 43.5% compared to CNY 300,955,479.17 in Q1 2018[29]. - The total profit for the current period is ¥165,986,309.35, compared to ¥119,632,058.71 in the previous period, indicating a strong performance[32]. Cash Flow and Liquidity - The net cash flow from operating activities improved to ¥219,895,563.30, a recovery from a negative cash flow of ¥676,019,105.62 in the same period last year[5]. - Cash received from other financing activities decreased by 56.24% to CNY 96,070,145.90 due to a reduction in guarantee deposits[12]. - The cash flow from operating activities for the current period is ¥219,895,563.30, a recovery from a negative cash flow of -¥676,019,105.62 in the previous period[34]. - The cash flow from investing activities shows a net inflow of ¥84,907,367.68, compared to a net outflow of -¥63,022,164.22 in the previous period[35]. - The cash flow from financing activities has a net inflow of ¥91,924,541.55, down from ¥419,513,924.23 in the previous period[35]. - The company's cash and cash equivalents stood at CNY 64.69 million, slightly down from CNY 66.00 million[24]. Assets and Liabilities - Total assets at the end of the reporting period were ¥22,929,363,294.26, reflecting a growth of 5.05% from ¥21,827,905,038.40 at the end of the previous year[5]. - Current liabilities totaled CNY 14.12 billion, an increase from CNY 13.51 billion, reflecting a rise of about 4.43%[22]. - The total liabilities amounted to CNY 14.61 billion, up from CNY 13.94 billion, which is an increase of approximately 4.81%[22]. - The total equity of the company reached CNY 8.32 billion, compared to CNY 7.89 billion, marking an increase of around 5.53%[23]. - The total assets increased to 21,869,051,113.13 CNY, up from 21,827,905,038.40 CNY at the end of the previous year[39]. Shareholder Information - The top shareholder, Qingdao Hisense Air Conditioning Co., Ltd., holds 37.92% of the shares, while the second largest shareholder, Hong Kong Central Clearing Limited, holds 33.56%[8]. - Net assets attributable to shareholders increased to ¥7,774,916,974.15, a rise of 5.75% from ¥7,351,824,364.87 at the end of the previous year[5]. Operational Changes - There were no significant changes in the company's strategy regarding mergers and acquisitions or new product developments mentioned in the report[9]. - The company has implemented new financial and revenue recognition standards, which may impact future financial reporting[38]. - The company has implemented new leasing standards effective January 1, 2019, impacting accounting policies[44]. Research and Development - Research and development expenses for Q1 2019 were CNY 175,400,225.39, an increase from CNY 151,782,330.71 in Q1 2018[28]. Other Financial Metrics - The company reported a significant increase in investment income, reaching CNY 196,479,330.06 in Q1 2019, compared to CNY 151,753,577.77 in the previous year[28]. - The company reported non-operating income from government subsidies amounting to ¥34,452,420.19 during the reporting period[6].