Summary of Haier Smart Home Conference Call Company Overview - **Company**: Haier Smart Home - **Industry**: Home Appliances Key Points Financial Performance and Projections - **2025 Global Revenue Growth**: Expected to increase by 5.7%, with overseas growth at 8.3% (Europe 20%, South Asia 23.2%), and China at 3.1% [2][3] - **2026 Net Profit Target**: Aiming for low single-digit growth, with profit growth expected to exceed revenue growth [2][13] - **Q1 2026 Expectations**: Anticipated revenue and net profit to show low single-digit negative growth due to policy adjustments and commodity pressures [2][12] Market Performance - **Q4 2025 Performance**: Global revenue declined, with China down 6.7%. Major declines in washing machines, water heaters, and air conditioning [3] - **Overseas Market Performance**: Americas showed slight growth, while Europe and Asia performed well, with Japan and Africa achieving double-digit growth [3] - **2026 European Market Outlook**: Expected to enter a phase of high-quality growth, with significant improvements in market share and profitability [9] Strategic Initiatives - **Supply Chain Optimization**: Manufacturing capacity shifted to Southeast Asia to mitigate tariff impacts, with collaborative R&D between US and China teams [4][13] - **HVAC Business Integration**: Aimed at providing comprehensive solutions to meet user demands, reducing redundant investments, and enhancing efficiency [5][6] - **Digital Transformation**: Focus on AI and digital tools to improve operational efficiency and customer experience [7][8] Shareholder Returns - **Dividend Policy**: Planned dividend payout ratios of 55% in 2026, 58% in 2027, and at least 60% in 2028 [11] - **Share Buyback Plans**: Aiming to repurchase at least 3 billion CNY in A shares and increase buybacks for undervalued H and D shares [11] Challenges and Responses - **Commodity Price Pressures**: Anticipated increases in commodity prices by 13%-15%, leading to a 6% rise in costs and a 3% decline in gross margin [13] - **Tariff Impacts**: Tariffs expected to rise by 41% in 2026, with strategies in place to offset these costs through production shifts and market focus [13] Brand and Market Strategy - **Casarte Brand Growth**: Positioned as a high-end brand, focusing on premium products and unique customer experiences [14] - **Emerging Markets Strategy**: Targeting high-growth regions like India and Southeast Asia with localized products and marketing strategies [10][11] Operational Efficiency - **O2O Model Implementation**: Aiming for direct customer engagement through a new online-to-offline model, enhancing distribution efficiency [8] - **Logistics and Service Integration**: Establishing a "four-in-one" system for logistics, service, supply chain, and manufacturing to improve operational performance [9][10] Conclusion - **Overall Outlook**: Despite challenges from commodity prices and tariffs, Haier Smart Home is positioned for growth through strategic initiatives, market expansion, and a focus on shareholder returns. The company aims to maintain competitive advantages in both domestic and international markets while enhancing operational efficiencies.

Core Viewpoint - The home appliance industry faces significant challenges in 2025, including rising tariffs and a sharp decline in domestic market demand, yet Haier Smart Home reported record revenue and profit growth, showcasing its resilience and stable operations [1][12]. Group 1: Financial Performance - Haier Smart Home achieved a revenue of 302.347 billion and a profit of 19.553 billion, marking a dual increase and setting new records [1]. - The company’s financial report reflects a robust performance despite a 25% decline in the domestic market during the fourth quarter [1]. Group 2: Strategic Transformation - The company effectively responded to external pressures through continuous transformation, mitigating the impact of tariffs and industry fluctuations while managing growth pressures from strategic investments [3]. - Haier Smart Home's growth is attributed to three main transformation areas: the implementation of a smart home strategy, leading market shares in key product categories, and significant revenue growth in overseas markets [4]. Group 3: Market Leadership - In the domestic market, Haier Smart Home holds leading shares in refrigerators (47.7%), washing machines (47.4%), and water heaters (32.5%), while also achieving a 14.8% increase in global air conditioner sales [4]. - The company has maintained its position as the top high-end brand in the U.S. for four consecutive years, with a 7% revenue increase, and has seen a 19.9% revenue growth in Europe [4]. Group 4: Innovation and Digital Transformation - Embracing AI and digital transformation, Haier Smart Home has developed a comprehensive customer platform that enhances user experience and optimizes overall cost efficiency, resulting in a 0.23 percentage point improvement in expense ratios [5]. - The company is focusing on a full-process efficiency improvement through TC transformation, significantly reducing inventory pressure and enhancing sales revenue for air conditioning products by over 130% [8]. Group 5: Future Growth Strategies - Haier Smart Home plans to integrate its home air conditioning, smart building, and water networking businesses into a unified strategy, aiming to increase the revenue contribution of this segment from one-quarter to one-half of total revenue [8]. - The company is also enhancing its overseas branding capabilities and product pricing strategies, with a goal of further expanding its global market presence [9]. - Future initiatives include entering emerging markets such as home robotics and smart health care, capitalizing on trends like AI and the aging population [10].

Core Viewpoint - Haier Smart Home achieved record high revenue and profit in 2025, reaching 302.35 billion yuan and 19.55 billion yuan respectively, despite facing significant external pressures such as increased tariffs and a 25% decline in the domestic market [1][2][4] Group 1: Performance Highlights - In 2025, Haier Smart Home's revenue and profit both reached new highs, supported by three major transformations: smart home strategy, localized branding overseas, and AI and digital transformation [2][6] - The company maintained leading market shares in key domestic appliances: refrigerators (44.5%), washing machines (46.5%), and water heaters (40.9%) [2] - Global sales of home air conditioners increased by 14.8%, with commercial air conditioning holding the top market share [2] Group 2: Strategic Investments and Challenges - Haier Smart Home faced significant industry pressures, including increased tariffs in the U.S. and a 25% decline in domestic demand in Q4 2025 [4][6] - The company invested nearly 8.9 billion yuan in global supply chain and R&D, including projects in the U.S., Egypt, and Thailand, which may exert short-term pressure on performance [4][5] - Despite these challenges, Haier Smart Home successfully achieved revenue and profit growth, demonstrating resilience [4][6] Group 3: Future Growth Strategies - The company aims to enhance efficiency through TC transformation and AI integration, with air conditioning dealer revenue increasing over 130% year-on-year [5] - Haier Smart Home plans to restructure its HVAC business to create a new growth curve, targeting a revenue share increase from 25% to 50% in the future [5] - The company is focusing on expanding its overseas branding capabilities and launching new products in the family robotics and smart health sectors to capture emerging market opportunities [5][7]

Haier Smart Home Co., Ltd.* 海爾智家股份有限公司 （於中華人民共和國註冊成立之股份有限公司） 股份代號：6690 海外監管公告 本公告乃根據《香港聯合交易所有限公司證券上市規則》第13.10B條由海爾智家股份 有限公司作出。 以下公告的中文版本已於上海證券交易所網站(www.sse.com.cn)刊登，僅供參閱。 特此公告。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 承董事會命 海爾智家股份有限公司 董事長 李華剛 中國青島 2026年3月26日 於本公告日期，本公司執行董事為李華剛先生及Kevin Nolan先生；非執行董事為 宮偉先生、俞漢度先生、錢大群先生及李少華先生；獨立非執行董事為王克勤先 生、李世鵬先生、吳琪先生及汪華先生；及職工董事為孫丹鳳女士。 * 僅供識別 海尔智家股份有限公司2025 年年度报告 公司代码：600690 公司简称：海尔智家 海尔智家股份有限公司 2025 年年度报告 1 / 245 ...

Core Viewpoint - The company, Haier Smart Home, is navigating a challenging environment in the home appliance industry, with a focus on adapting to market changes and enhancing its product offerings to maintain leadership in the sector. Group 1: Company Overview - Haier Smart Home is a leading global player in the home appliance industry, consistently ranked first in retail volume for large home appliances for 17 consecutive years [19] - The company has a diverse brand portfolio, including Haier, Casarte, Leader, GE Appliances, Candy, Fisher & Paykel, and AQUA [19] - The company aims to provide comprehensive smart home solutions, focusing on customized and professional offerings [19] Group 2: Industry Analysis - The home appliance market in China is projected to see a retail value of 893.1 billion yuan in 2025, reflecting a year-on-year decline of 4.3% [4] - The industry is experiencing a shift from basic functionality to creating value through brand building and user engagement, as online traffic costs rise [5] - The aging population in China is creating a new market for age-friendly appliances, with the market size exceeding 100 billion yuan by 2025 [6] Group 3: Financial Performance - The company plans to distribute cash dividends of 8.867 yuan per 10 shares, totaling approximately 8.25 billion yuan, which represents 55% of the net profit attributable to shareholders [3] Group 4: Market Trends - The global home appliance market is expected to grow steadily, with retail sales reaching $298.3 billion in 2025, a 3.3% increase year-on-year [7] - The Chinese central air conditioning market is projected to reach 138.68 billion yuan in 2025, with domestic sales declining by 7.4% [9] - The commercial refrigeration market is entering a structural growth phase driven by technological advancements and regulatory policies [11] Group 5: Strategic Initiatives - The company is expanding its overseas operations through acquisitions and local adaptations, enhancing its market presence in various regions [25][26] - The company is focusing on digital tools to improve inventory sharing and customer response efficiency, adapting to the trend of omnichannel retail [6] Group 6: Future Outlook - The home appliance industry is expected to face challenges in growth due to high market saturation, but structural opportunities remain, particularly in energy-efficient and smart products [13] - The central air conditioning market is shifting towards stock upgrades, with a focus on energy-saving renovations and new demand from AI and data centers [17]

Group 1 - The core viewpoint of the articles highlights Haier Smart Home's significant financial performance in 2025, with global revenue surpassing 300 billion RMB for the first time, reaching 302.33 billion RMB, a year-on-year increase of 5.71% [1] - The net profit attributable to the parent company for 2025 was 19.55 billion RMB, reflecting a year-on-year growth of 4.39% [1] - The company generated a net cash flow from operating activities of 26.00 billion RMB, which is 1.33 times the net profit [1] Group 2 - Haier Smart Home maintained its leading position in the Chinese market, with market shares in key categories such as refrigerators at 47.7%, washing machines at 47.4%, and water heaters at 32.5% [1] - The air conditioning business showed strong performance, with online and offline market shares increasing by 0.6 and 1.8 percentage points year-on-year, respectively, and domestic revenue achieving double-digit growth [1] - The company leveraged its integrated logistics and service system to enhance direct engagement with retail points and consumers, enabling dealers to operate with lower assets and shortening the distance to users, resulting in counter-cyclical growth [1] Group 3 - The company implemented a digital inventory transformation that upgraded the supply chain order model and logistics distribution capabilities, resulting in shorter product delivery paths and lower costs [1] - By the end of 2025, the average daily delivery volume reached 100,000 units, with the proportion of TC delivery orders increasing to 57% [2] - The coverage of 24-hour delivery service in the Chinese market expanded to 1,944 counties, an increase of 357 counties since the beginning of 2025 [2]

Group 1 - The core viewpoint of the articles highlights Haier Smart Home's significant financial performance in 2025, with global revenue surpassing 300 billion RMB for the first time, reaching 302.33 billion RMB, a year-on-year increase of 5.71% [1] - The net profit attributable to the parent company for 2025 was 19.55 billion RMB, reflecting a year-on-year growth of 4.39% [1] - The company generated a net cash flow from operating activities of 26.00 billion RMB, which is 1.33 times the net profit [1] Group 2 - Haier Smart Home maintained its leading position in the Chinese market, with market shares in core categories such as refrigerators at 47.7%, washing machines at 47.4%, and water heaters at 32.5% [1] - The air conditioning business showed strong performance, with online and offline market shares increasing by 0.6 and 1.8 percentage points year-on-year, respectively, and domestic revenue achieving double-digit growth [1] - The company leveraged its integrated logistics and service system to enhance direct engagement with retail points and consumers, enabling dealers to operate with lower assets and achieve growth against market trends [1] Group 3 - The company initiated a TC model transformation in its specialty store channel in April 2025 and expanded it across all channels in July, optimizing its delivery system and enhancing direct-to-consumer capabilities [2] - By the end of 2025, the average daily delivery volume reached 100,000 units, with the proportion of TC delivery orders increasing to 57%, indicating the effectiveness of the new model [2] - The coverage of 24-hour delivery service in the Chinese market expanded to 1,944 counties, an increase of 357 counties since the beginning of 2025 [2]

Group 1 - The company reported a revenue of RMB 302.33 billion for the year ending December 31, 2025, representing a year-on-year growth of 5.7% [1] - Shareholders' profit reached RMB 19.55 billion, an increase of 4.39% year-on-year, with basic earnings per share at RMB 2.12 [1] - The company proposed a final dividend of RMB 8.867 per 10 shares [1] Group 2 - The company maintained its leading position in the Chinese market, with market shares of 47.7% in refrigerators, 47.4% in washing machines, and 32.5% in water heaters [1] - The air conditioning business showed significant performance, with online and offline market shares increasing by 0.6 and 1.8 percentage points year-on-year, respectively, and domestic revenue achieving double-digit growth [1] - The company leveraged its integrated logistics and service system to enhance direct engagement with retail points, enabling light-asset operations for distributors and achieving growth against market trends [1] Group 3 - The company initiated a TC model transformation in its specialty store channel in April 2025 and expanded it across all channels in July 2025, optimizing its delivery system and enhancing direct-to-consumer capabilities [2] - By the end of 2025, the average daily delivery volume reached 100,000 units, with the proportion of TC delivery orders increasing to 57% [2] - The company achieved 24-hour delivery coverage in 1,944 districts and counties, an increase of 357 from the beginning of 2025 [2]

Core Insights - Haier Smart Home reported a revenue of 302.347 billion yuan for 2025, representing a year-on-year growth of 5.72% [1][4] - The net profit attributable to shareholders was 19.553 billion yuan, up 4.33% year-on-year, while the net profit excluding non-recurring items was 18.604 billion yuan, increasing by 4.49% [1][4] - Basic earnings per share stood at 2.12 yuan [1][4] Financial Performance - The gross profit margin for 2025 was 26.66%, a decrease of 1.14 percentage points year-on-year; the net profit margin was 6.67%, down 0.18 percentage points from the previous year [1][5] - In Q4 2025, the gross profit margin was 24.79%, a decline of 5.08 percentage points year-on-year and 3.09 percentage points quarter-on-quarter; the net profit margin was 3.40%, down 1.87 percentage points year-on-year and 3.51 percentage points quarter-on-quarter [5][6] Expense Analysis - Total operating expenses for 2025 were 57.685 billion yuan, an increase of 276 million yuan compared to the previous year; the expense ratio was 19.08%, down 1.00 percentage points year-on-year [2][6] - Sales expenses grew by 0.87% year-on-year, while management expenses increased by 13.64%; R&D expenses decreased by 6.00%, and financial expenses saw a significant reduction of 105.24% [2][6] Shareholder Information - As of the end of 2025, the total number of shareholders was 156,500, a decrease of 34,100 from the end of Q3, representing a decline of 17.90%; the average market value per shareholder increased by 25.38% from 1.247 million yuan to 1.5636 million yuan [2][6] Company Overview - Haier Smart Home, established on March 31, 1994, and listed on November 19, 1993, is located in Qingdao, Shandong Province [2][6] - The company's main business includes the research, production, and sales of smart home appliances such as refrigerators, washing machines, air conditioners, water heaters, kitchen appliances, and small home appliances [2][6] - The revenue composition includes: refrigerators (27.17%), air conditioners (20.94%), washing machines (20.22%), kitchen appliances (13.10%), equipment and channel services (11.97%), water appliances (6.11%), and others (0.48%) [2][6] Industry Classification - Haier Smart Home is classified under the household appliances sector, specifically in white goods and refrigeration [7] - The company is associated with various concept sectors including e-commerce, value growth, consumer selection, and capital management [7]

Core Viewpoint - Haier Smart Home has shown a slight increase in stock price and has a significant market capitalization, indicating stable investor interest in the company [1] Group 1: Company Overview - Haier Group was established in 1984 and has expanded from producing refrigerators to a wide range of sectors including home appliances, IT, logistics, and biopharmaceuticals, becoming a global leader in providing solutions for a better life [2] - The company’s main business includes the research, production, and sales of home appliances such as refrigerators, air conditioners, washing machines, and smart home solutions [3][7] - As of September 30, Haier Smart Home reported a revenue of 2340.54 billion yuan, a year-on-year increase of 15.31%, and a net profit of 173.73 billion yuan, up 14.64% year-on-year [7] Group 2: Shareholder and Market Activity - The top ten circulating shareholders include significant entities such as Central Huijin Asset Management and China Securities Finance Corporation, indicating institutional interest [3][9] - The company has distributed a total of 486.62 billion yuan in dividends since its A-share listing, with 242.73 billion yuan distributed in the last three years [8] Group 3: Financial Metrics - The average trading cost of the stock is 25.81 yuan, with the current price approaching a support level of 25.00 yuan, suggesting potential volatility [6] - The main capital inflow for the day was negative, indicating a reduction in major shareholder positions over the past two days [4][5]