2023-09-01 16:00Financial Performance - Haier Smart Home reported operating revenue of RMB 131.63 billion for the first half of 2023, an increase of 8.21% compared to the same period last year[17]. - Net profit attributable to shareholders reached RMB 8.96 billion, reflecting a growth of 12.62% year-on-year[17]. - Net cash flows from operating activities amounted to RMB 8.60 billion, up 14.86% from the previous year[17]. - Total assets as of the end of the reporting period were RMB 246.30 billion, representing a 4.39% increase compared to the previous year[17]. - The net assets attributable to shareholders of the listed company were RMB 96.68 billion, showing a 3.45% increase year-on-year[17]. - Basic earnings per share increased to RMB 0.97, a 14.12% rise compared to the same period last year[19]. - The weighted average return on net assets after deducting nonrecurring profit or loss was 8.80%, showing a slight increase of 0.09% year-on-year[19]. - The Company's gross profit margin reached 30.4%, up 0.2 percentage points year-on-year, benefiting from lower commodity prices and increased in-house manufacturing[83]. - Net profit attributable to shareholders increased by 12.6% to RMB 8.964 billion, with a net profit margin of 6.8%[83]. Market Performance - The retail sales of home appliances in China reached RMB 398.2 billion in the first half of 2023, marking a 4.4% year-on-year increase[40]. - The air conditioning category saw retail sales of RMB 130.16 billion, up 19.5% year-on-year, with a retail volume of 37.265 million units, an 18.8% increase[40]. - The refrigerator industry experienced retail sales of RMB 47.95 billion, a 5.2% year-on-year increase, despite a 2.6% drop in retail volume[40]. - The tumble dryer industry maintained rapid growth with retail sales reaching RMB 4.97 billion, a year-on-year increase of 14.7%[41]. - The water heater segment's retail sales reached RMB 22.36 billion, reflecting a 6.0% year-on-year increase[42]. - The cumulative export of the home appliance industry from January to June 2023 was USD 43.1 billion, a 2.0% decrease year-on-year, while exports in RMB terms totaled RMB 296.7 billion, up 5.2% year-on-year[47]. - In North America, core appliances shipment dropped by 3.3% in the first half of 2023 due to lingering inflation and demand exceeding capacity[48]. - The retail volume of the home appliance industry in Europe decreased by 8.1% year-on-year in the first half of 2023, influenced by inflationary pressures and the Russia-Ukraine conflict[49]. - In Southeast Asia, Thailand saw a 15% increase in sales volume, driven by strong air conditioner performance during hot weather[50]. Innovation and Development - Haier Smart Home continues to focus on innovation and market expansion strategies, including new product development[4]. - The Company launched the Casarte F2 washer & dryer combo, which features industry-first 3D vision technology, enhancing energy efficiency and user-friendliness[97]. - The Company developed over 1,360 air conditioner franchise stores, achieving a 30% store conversion rate[104]. - The Company launched the industry's first whole house water solution online design platform, enhancing user experience across 265 outlets[113]. - The Company has accumulated over 97,000 patent applications globally, including more than 62,000 invention patents, leading the industry in patent quality[76]. - The Company received 16 State Science and Technology Progress Awards in the first half of 2023, highlighting its commitment to innovation[75]. Strategic Initiatives - The company has not proposed any profit distribution or capital reserve conversion for this reporting period[2]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[2]. - The company plans to strengthen its three-level brand strategy transformation and enhance digitalisation for operational efficiency in the second half of the year[142]. - The company introduced the 2023 H Share Core Employee Stock Ownership Plan to enhance governance and promote its IoT smart home ecological brand strategy[176]. - The company aims to enhance shareholder value through its employee stock ownership plans and strategic initiatives in the smart home sector[176]. Environmental Responsibility - The company reported a total pollutant discharge of 37.55 tons for COD, 4.93 tons for ammonia nitrogen, 11.69 tons for total nitrogen, and 0.87 tons for total phosphorus in 2022[181]. - The concentration of COD discharge was 99.95 mg/L, while ammonia nitrogen was 12.59 mg/L, and total nitrogen was 30.28 mg/L, all within approved limits[181]. - The company has implemented wastewater quality standards for discharge to municipal sewers, ensuring compliance with environmental regulations[192]. - The company is committed to improving its environmental protection measures and has reported on its pollutant discharge status to local environmental protection departments[179]. - The Company complies with national and local environmental laws, ensuring all wastewater discharge is monitored and treated according to prescribed standards[197]. Risks and Challenges - The Company faces risks from decreasing market demand due to macroeconomic slowdown, which could negatively impact sales of durable consumer appliances[163]. - Intense competition in the white goods industry may lead to price wars, necessitating increased investment in R&D to maintain profitability[164]. - The Company is exposed to fluctuations in raw material prices, particularly for metals and plastics, which could pressure production and operations[165]. - Operational risks in overseas markets are increasing as the Company expands globally, with potential impacts from political and economic changes[166]. - Exchange rate fluctuations pose a risk to the Company's financial position as it engages in international trade[167]. - Changes in macroeconomic policies and regulations could affect product demand and sales performance[168].