Summary of Haier Smart Home Conference Call Company Overview - **Company**: Haier Smart Home - **Date**: September 18, 2025 Key Points Industry Performance - **Overseas Business Growth**: Haier's overseas business showed steady growth, with emerging markets like South Asia, Southeast Asia, and the Middle East and Africa achieving double-digit growth. The U.S. market experienced low single-digit growth, aligning with the company's plans for high single-digit to double-digit growth overall [2][3] Financial Impact of Subsidy Policies - **Subsidy Policy Changes**: The impact of national subsidy policy adjustments on Haier was limited. Despite some regions suspending subsidies, the refrigerator and washing machine categories maintained low single-digit growth, while the air conditioning category benefited from high temperatures, exceeding 15% growth [2][4] Market Expansion Strategies - **HVAC Market Expansion**: Haier is actively expanding its HVAC market in Europe and the U.S., with European HVAC business growing over 20% in the first half of the year and the U.S. market achieving double-digit growth. The company plans to strengthen its overseas HVAC market presence and seek acquisition opportunities [2][8] Digital Transformation - **Operational Efficiency**: Haier is enhancing operational efficiency through digital transformation, including creating popular products, reducing SKU numbers, increasing the self-manufacturing ratio of core components, and advancing digital inventory management, which effectively lowered sales and management expense ratios [2][13] Product Innovation - **New Product Launches**: Haier continues to drive product innovation, such as launching the "Lazy Wash" series of washing machines aimed at younger consumers and promoting embedded technology in refrigerators to meet consumer demands and maintain market competitiveness [2][14][15] Sales Performance Trends - **Sales Trends**: Since the third quarter, domestic and overseas sales have maintained the overall trend from the first half of the year, with domestic revenue growth reaching high single-digit to double-digit levels, and air conditioning continuing to grow over 15% [3][5] Future Outlook - **Revenue and Profit Growth Goals**: Haier aims to maintain high single-digit revenue growth and double-digit profit growth for the upcoming years, with a commitment to a dividend payout ratio of no less than 50% for 2025 and 2026 [4][20][21] Market Share Strategy - **Air Conditioning Market Share**: Haier plans to enhance its air conditioning market share through strategies such as creating popular products, improving online retail capabilities, and utilizing digital inventory management. The company has seen a nearly one percentage point increase in overall market share compared to last year [12] Supply Chain Management - **Local Production Strategy**: Approximately 60% of Haier's revenue in the U.S. comes from local production, with plans to build a new washing machine factory by 2027 to further reduce tariff impacts [4][18] Competitive Landscape - **Response to Competitors**: Haier views the high-end appliance rental business launched by Samsung and LG in Southeast Asia as not yet mainstream and does not plan to compete directly in this segment for the time being [10] Capital Expenditure Plans - **Investment Plans**: Haier's capital expenditure budget for the coming years is set at 8 to 10 billion RMB, focusing on global capacity expansion projects, including new factories in Thailand and the U.S. [20] Market Entry in Brazil - **Brazil Market Strategy**: Haier currently has no specific progress in the Brazilian market but plans to negotiate with local partners for potential breakthroughs in the second half of 2025 [19]