Core Viewpoint - The company reported strong financial performance in Q3 2025, with revenue and net profit exceeding expectations, indicating resilience in both domestic and international markets [4]. Group 1: Financial Performance - In Q3 2025, the company achieved revenue of 77.6 billion yuan, a year-on-year increase of 10%, and a net profit attributable to shareholders of 5.3 billion yuan, up 13% year-on-year [4]. - The company's net profit excluding non-recurring items reached 5.2 billion yuan, reflecting a 15% year-on-year growth [4]. Group 2: Overseas Market Growth - The overseas revenue grew by 8.25% year-on-year in Q3 2025, with a cumulative growth of 10.5% for the first three quarters [5]. - In North America, despite a weak real estate market, the company maintained operational resilience through product upgrades and expansion in air and water businesses [5]. - In Europe, the company saw steady market share growth in white goods, with retail market share in refrigerators and washing machines increasing by 1.2 and 0.5 percentage points respectively in key markets [5]. - Emerging markets showed significant growth, with revenue increases of 25%, 15%, and 60% in South Asia, Southeast Asia, and the Middle East and Africa respectively [5]. Group 3: Domestic Market Resilience - The domestic appliance industry faced challenges, with retail sales down 3% year-on-year in Q3 2025, while the company’s domestic revenue grew by 11% [6]. - The air conditioning segment outperformed the industry, with a year-on-year revenue increase of over 30% for household air conditioners [6]. - The company’s high-end brand, Casarte, and the Leader brand saw revenue growth of 18% and 25% respectively in the first three quarters [6]. - Growth resilience is attributed to the development of popular products, competitive product suites, and enhanced operational efficiency through digital transformation [6]. Group 4: Profitability and Cash Flow - The gross margin for the first three quarters of 2025 was 27.2%, an increase of 0.1 percentage points year-on-year, supported by cost focus in the domestic market and a high-end brand strategy overseas [6]. - The sales expense ratio was optimized to 10.6%, a decrease of 0.1 percentage points year-on-year, reflecting digital transformation efforts [6]. - The net operating cash flow for the first three quarters was 17.5 billion yuan, representing a 21% year-on-year increase, indicating robust cash flow generation [6].

Core Viewpoint - Haier Smart Home has demonstrated resilience in overseas markets despite ongoing global uncertainties, as evidenced by its third-quarter report for 2025, which shows significant revenue and profit growth [1] Financial Performance - For the first three quarters of 2025, Haier Smart Home reported revenue of 234.05 billion yuan and a net profit attributable to shareholders of 17.37 billion yuan, representing year-on-year growth of 10% and 14.7% respectively [1] - Overseas market revenue grew by 10.5% year-on-year, outperforming the industry average [1] Market Performance - North America showed stable operations, while market share in Europe expanded steadily [1] - Southeast Asia experienced growth exceeding 15%, South Asia over 25%, and the Middle East and Africa over 60% [1] Localization Strategy - Haier Smart Home has implemented a differentiated product strategy tailored to local market demands, enhancing its high-end product line in North America through GE Appliances [1] - In Europe, the company introduced energy-efficient products that exceed local energy standards, addressing regional energy cost concerns [1] Service Localization - The company has advanced its "four networks integration" strategy (logistics, information, service, and marketing networks) to improve local market responsiveness and service efficiency [2] - In Europe, Haier Smart Home optimized its logistics network, resulting in increased retail market share for refrigerators and washing machines in key markets [2] Supply Chain Localization - Haier Smart Home has adopted a diversified global supply chain strategy, enhancing local supply chain management [2] - The company increased production capacity in North America and launched a new air conditioning manufacturing base in Thailand, which is set to produce 6 million units annually [2] Industry Trends - The home appliance industry is shifting from a "contract manufacturing + shipping" model to a "local supply + long-term operation" model [2] - The adaptability of companies, organizational capabilities, and long-term strategic abilities will become critical evaluation metrics in the new phase of the industry [2]