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Important Notice:
The board of directors (the “Board”), the board of supervisors, directors, supervisors, and senior management of
the Company hereby assure that the content set out in the quarterly report is true, accurate and complete, and free from
any false record, misleading representation or material omission, and are individually and collectively responsible for
the content set out therein.
The legal representative of the Company, chief financial officer of the Company and person in charge of accounting
department hereby certify that the financial information set out in the quarterly report is true, accurate and complete.
□Yes √No
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
At the end of the Reporting At the end of last year the Reporting Period compared to
Note: “Reporting Period” refers to the three-month period commencing from the beginning of this quarter to the end
of this quarter.
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
In the first quarter of 2023, the Company completed the acquisition of the equity in Shanghai Haier Smart Technology
Co., Limited (上海海爾智能科技有限公司). The transaction was accounted for as a business combination under
common control in accordance with relevant accounting standards in the consolidated financial statements and
accordingly, the comparative figures for the corresponding period were adjusted and restated.
During the reporting period, the Company leveraged its diverse range of brands to capitalize on growth opportunities
across various market segments. It gained market share in overseas markets through its high-end brand strategy and the
expansion of distribution networks. The Company prioritized end-to-end digitalization to enhance operational efficiency.
During the reporting period, the Company’s revenue steadily increased, and profitability continued to improve.
In the first three quarters of 2023, the Company achieved revenue of RMB 198.657 billion, net profit attributable to the
owners of the parent company of RMB 13.149 billion, and net profit attributable to owners of the parent company after
deduction of non-recurring profit or loss of RMB 12.721 billion, representing growth of 7.5%, 12.7% and 13.4%
respectively as compared to the corresponding period of 2022.
In the third quarter alone, the Company realized revenue of RMB 67.030 billion, net profit attributable to the owners of
the parent company of RMB 4.185 billion, and net profit attributable to owners of the parent company after deduction
of non-recurring profit or loss of RMB 4.117 billion, representing an increase of 6.1%, 12.9% and 10.4% respectively
as compared to the corresponding period of 2022.
In the third quarter, the Company continues to grow market share in refrigerators, washing machines and water heater
& purifier, while maintaining solid performance in air conditioners, smart buildings, and kitchen appliances.
The refrigerator business led the industry in the integration of home appliance with furnishing by launching F+ and
550L series of flat built-in refrigerators, along with the seamless 603 built-in series, all of which helped grow high-end
sales revenue. The washing machine business accelerated retail transformation to boost operation efficiency.
Casarte's Zhongzi (中子) F2 washer-dryer combo and Gemini T5 (T5 双子分区洗) washer were introduced to create
innovative laundry experience with flat built-in designs. Water heater and purifier business developed leading
product platform with cutting-edge technologies such as electric crystal tanks, hybrid gas heating, and zinc-strontium
mineral water purification. It also implemented digital management across the entire product life cycle to increase the
output of individual model.
The kitchen appliance business launched Nebula (星雲) and Tranquility (致境) set to enhance Casarte's product lineup.
It also developed partnerships from cabinet and home improvement industries, and accelerated e-commerce revenue
growth by expanding offerings online. The residential air conditioning business underwent transformations in R&D,
distribution network, retail capability, supply chain cost management and organizational efficiency to improve users’
and distributors’ recognition and realized solid growth. Leveraging advantages in Heating Ventilation and Air
Conditioning(HVAC) industry, the smart building business developed growth opportunities in heat pump and smart
building management. In order to develop its one-stop low-carbon energy solutions business, the Company completed
the acquisition of Tongfang Energy Technology Development Company in September 2023, whose technical expertise
and experience in heat supply solutions could enhance the Company's integrated heating and cooling services, clean
energy and waste heat recovery solutions.
SAN YI NIAO focused on improving its design and delivery capabilities. By providing online design tools for home
appliance product suites and introducing "Delivery on Wings" scenario delivery tool, it improved user experience during
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
transaction, interaction, design, and delivery process, which drove the sales of home appliance product suites with
enhanced user value.
During the reporting period, the Company strengthened its high-end brand strategy and achieved steady growth through
enhancing brand images, launching best-selling products, and pursuing opportunities in new categories.
In the North American region, the Company continues to expand its innovation leadership by launching new, high-
end products such as a multi-door refrigerator with an internal water dispenser and the next-generation stainless steel
dishwasher with Microban® Antimicrobial Technology and Smart Assist features. The Company also introduced
ClearViewTM Smart Ultra Quiet window air conditioner, RV air conditioner, ducted units, and a variety of commercial
air conditioners, expanding the AIR and Water unit to unlock new business opportunities. At the same time, cross-
functional teams continue to collaborate and aspire to be best in class on order-to-cash processes and operation
efficiencies, which in return could better serve our customers and consumers. The company's innovative vitality earned
it a spot in Fortune Magazine's "Best Places to Work in Manufacturing and Production" and Fast Company's "Best
Places to Work for Innovators" during the reporting period.
In the European market, the Company continued to pursue brand premiumization: Haier brand launched new range of
high-end built-in products and raise its price index to 115. The Company also unveiled New Candy series at IFA Berlin
in September 2023. This lineup featured high-end products including Fresco smart refrigerator and Rapidò dishwasher,
both with class A energy efficiency grade, along with a new range of smart ovens. The Company also made efforts to
raise its profile by becoming the official partner of the prestigious Roland-Garros Tournament and the ATP (Association
of Tennis Professionals)Tour.
The gross profit margin in the first three quarters of 2023 reached 30.7%, up 0.2 percentage points compared to the same
period in 2022. Of which, the domestic market recorded a year-on-year increase in gross profit margin, driven by lower
commodity prices, digitalization in procurement and R&D, a digitalized production and sales coordination system, and
an increased proportion of in-house manufacturing. In overseas markets, while ongoing product mix optimization and
increased production capacity utilization had positive impacts on gross margins, they were offset by intensified
competition in major regional markets. Overseas gross profit margin in the first three quarters declined year-on-year as
a result, but as high-cost inventory was being cleared, the gross profit margin for the third quarter has shown a year-on-
year increase.
1. The selling expense ratio in the first three quarters of 2023 was 14.7%, an improvement of 0.2 percentage points
compared to the same period in 2022. In the domestic market, the implementation of digitalization improved efficiency
in marketing resource allocation, logistics distribution, and warehousing operations, resulting in a year-on-year
improvement in the selling expense ratio. On the other hand, overseas markets experienced intensified competition,
which demanded increased spending on expanding retail channels, promoting new product launches, and enhancing
store appearance, resulting in a higher selling expense ratio year-on-year.
2. The administrative expense ratio in the first three quarters of 2023 was 4.1%, representing an improvement of 0.1
percentage points compared to the same period in 2022. In particular, the domestic market reduced the expense ratio
year-on-year through adopting digital tools to streamline business processes and enhance organizational efficiency,
whereas the overseas market increased investment in information technology, leading to a rise in its expense ratio year-
on-year.
3. The research and development expense ratio in the first three quarters of 2023 was 4.1%, largely unchanged compared
to the same period in 2022. The research and development expense was primarily dedicated for strengthening the
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
Company’s core capabilities in smart home technologies, driving product innovation across various industries, and
advancing the digital platforms of the SAN YI NIAO scenario brand.
4. The financial expense ratio in the first three quarters of 2023 was -0.1% (“+” as expenses, “-” as income), representing
a deterioration of 0.3 percentage points compared to the same period in 2022. The deterioration was mainly due to the
additional interest expenses incurred overseas as a result of interest rate hikes, which offset the Company's higher interest
income achieved through improved capital management efficiency.
The trade and bill receivable turnover days for the first three quarters of 2023 was 40 days, a decrease of 0.1 days
compared to the end of 2022, hence remained largely unchanged.
The inventory turnover for the first three quarters of 2023 was 84.2 days, a decrease of 4.6 days compared to the end of
2022. The improvement was mainly due to effective inventory management and optimized stock levels.
The trade and bill payable turnover days for the first three quarters of 2023 was 142 days, a decrease of 3 days compared
to the end of 2022.
1. Net cash inflow from operating activities in the first three quarters of 2023 amounted to RMB 13.203 billion, an
increase of RMB 1.952 billion compared to the corresponding period in 2022. The growth was mainly driven by
increased operating profit and enhanced operational efficiency in the current period.
2. Net cash outflow from investing activities in the first three quarters of 2023 amounted to RMB 8.820 billion, an
increase of RMB 1.558 billion compared to the corresponding period in 2022. This was mainly due to an increase in
cash payments for the purchase of long-term fixed deposits, acquisition of fixed assets, intangible assets, and other long-
term assets during the current period.
3. Net cash outflow from financing activities in the first three quarters of 2023 amounted to RMB 6.778 billion, an
increase of RMB 3.582 billion compared to the corresponding period in 2022. This was mainly due to the decrease in
net new borrowings and the increase in cash payments for dividend distribution, profits, or interest payments during the
current period.
The Company assesses its capital expenditure and investments in each segment in China and overseas from time to time.
The capital expenditure in the first three quarters of 2023 amounted to RMB 6.077 billion, of which RMB 2.773 billion
and RMB 3.304 billion were used in China and overseas respectively, primarily for plants and equipment construction
and digital infrastructure.
At the end of the third quarter in 2023, the Company’s asset-liability ratio was 58.7%, down 1.1 percentage points
compared to the end of 2022, which was mainly due to the growth in net profits which increased total assets.
Description on categorizing the non-recurring profit or loss items listed in the Interpretative Announcement No. 1
of the Information Disclosure of the Companies Public Offering Securities — Non-recurring Profit or Loss (公開發行
證券的公司信息披露解釋性公告第 1 號—非經常性損益) as recurring profit or loss item
(III) Changes in major accounting data and financial indicators and reasons
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
(I) Total number of ordinary shareholders and the number of preferential shareholders with restored voting rights and
the shareholdings of the top 10 shareholders
Unit: share
Total number of ordinary Total number of preferential shareholders with
shareholders as of the end of the 137,875 restored voting rights as of the end of the Reporting N/A
Reporting Period Period (if any)
Shareholdings of the top 10 shareholders
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
ALIBABA INVESTMENT
83,823,993 Overseas listed foreign shares 83,823,993
LIMITED
National Social Security Fund
61,298,139 RMB ordinary shares 61,298,139
Portfolio 113
Explanation of associations or actions in (1) Haier COSMO Co., Ltd. is a holding subsidiary of Haier Group Corporation. Haier
concert among the above shareholders Group Corporation holds 51.20% of its equity. Each of Qingdao Haier Venture &
Investment Information Co., Ltd., HCH (HK) INVESTMENT MANAGEMENT CO.,
LIMITED and Qingdao Haichuangzhi Management Consulting Enterprise (Limited
Partnership) is a party acting in concert with Haier Group Corporation;
(2) The Company is not aware of the existence of any associations of other shareholders.
Explanation of the top 10 shareholders and
the top 10 shareholders not subject to
trading moratorium engaging in the None
margin trading and short selling and
refinancing business (if any)
Note: (1) HKSCC NOMINEES LIMITED is the collective nominee account for the shareholders of H shares of the
Company, which is the original data provided by China Hong Kong securities registration agency to the Company after
consolidation of figures according to local market practices and technical settings, not representing the ultimate
shareholder; (2)As of the end of the reporting period, the Company’s repurchase account held a total of 102,298,195
shares.
IX. Miscellaneous
Other significant information regarding the Company’s operations during the Reporting Period should be brought
to the attention of investors
(1) External guarantees: As at the end of the Reporting Period, the external guarantees provided by the Company
and its subsidiaries were guarantees between the Company and its subsidiaries, the total balance of which
amounted to RMB13.427 billion, accounting for 13.4% of the Company’s latest net assets and 5.5% of the latest
total assets.
(2) Foreign exchange derivative: As at the end of the Reporting Period, the aggregate balance of the Company’s
foreign exchange derivative transaction amounted to approximately US$1.363 billion.
(3) Entrusted wealth management: As at the end of the Reporting Period, the balance of the Company’s entrusted
wealth management amounted to RMB1.429 billion, including two parts: ①Temporary-idle funds wealth
management by certain subsidiaries of the Company: Under the premise of ensuring sufficient capital for the
principal operating activities and daily operations, some subsidiaries of the Company purchased some short-
term principal-guaranteed wealth management products and structured deposits from major commercial banks
to improve the yield of temporarily-idle funds and the return for shareholders within the authority of the general
manager’s office meeting and under the condition of ensuring fund safety. As at the end of the Reporting Period,
the balance of the entrusted wealth management amounted to RMB1.414 billion; ②Idle funds in the asset
management account of the Employee Stock Ownership Plans: the asset management institution purchased cash
products such as money funds according to the liquidity of the products with some idle funds in the asset
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
management accounts of the Employee Stock Ownership Plans of the Company. The balance of cash assets
amounted to RMB15 million.
(4) Employee Stock Ownership Plans and Share Option Incentive Scheme:
A. Progress of Employee Stock Ownership Plans:
① Completion of shares pool building of the A-share and H-share Employee Stock Ownership Plans
(2023): The Company introduced the H-share Core Employee Stock Ownership Plan of Haier Smart Home Co.,
Ltd. for year 2023 (Draft) (“2023 H-share ESOP”), A-share Core Employee Stock Ownership Plan of Haier
Smart Home Co., Ltd. for year 2023 (Draft) (“2023 A-share ESOP”) upon the approval by the 2022 Annual
General Meeting convened on 26 June 2023. During the Reporting Period, the Company completed opening of
accounts, and shares pool building and other related work of the A-share and H-share ESOPs for year 2023. For
details, please refer to the Announcement of Haier Smart Home Co., Ltd. on the Completion of the Non-trading
Transfer of Shares for the 2023 A-share Core Employee Stock Ownership Plan and Announcement of Haier
Smart Home Co., Ltd. on the Completion of Share Purchase under the 2023 H-share Core Employee Stock
Ownership Plan disclosed on 19 July 2023 and 26 July 2023 respectively.
② Vesting of the 2021/2022 A-share/H-share ESOPs: According to relevant arrangement of the 2021 Plan
under the A-share Core Employee Stock Ownership Plan of Haier Smart Home Co., Ltd. (2021-2025) (Draft)
(“2021 A-share ESOP”), the 2021 Plan under the H-share Core Employee Stock Ownership Plan of Haier Smart
Home Co., Ltd. (2021-2025) (Draft) (“2021 H-share ESOP”), 2022 A-share Core Employee Stock Ownership
Plan of Haier Smart Home Co., Ltd. (Draft) And Its Summary(“2022 A-share ESOP”) and 2022 H-share Core
Employee Stock Ownership Plan of Haier Smart Home Co., Ltd. (Draft) And Its Summary ( ‘‘2022 H-share
ESOP’’), during the Reporting Period, the Company has completed relevant vesting of interests in the
abovementioned Employee Stock Ownership Plans:
1) 1,417 participants under the 2021 A-share ESOP vested 8,572,937 shares (and the dividends received in
respect of corresponding shares) in accordance with the 2022 annual results and the results of their individual
appraisals. The Company has processed the transfer of the relevant shares at the China Securities Depository
and Clearing Corporation Limited Shanghai Branch on 28 July 2023 in accordance with the abovementioned
resolution; and 27 participants under the 2021 H-share ESOP vested 834,283 shares in accordance with the
2022 annual results and the results of their individual appraisals. The Industrial Securities Asset Management
Co., Ltd., the asset management authority, will dispose of H shares held by the Industrial Securities Asset
Management Xinzhong Haier Smart Home No. 6 Employee Stock Ownership Single Asset Management Plan
in due course based on the aforesaid resolution, and allocate cash to the participants after taking into account
the dividends received in respect of H-share Stock Ownership Plan.
2) 2,122 participants under the 2022 A-share ESOP vested 6,281,446 shares (and the dividends received in
respect of corresponding shares) in accordance with the 2022 annual results and the results of their individual
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
appraisals. The Company has processed the transfer of the relevant shares at the China Securities Depository
and Clearing Corporation Limited Shanghai Branch on 28 July 2023 in accordance with the resolution; and 31
participants under the 2022 H-share ESOP vested 635,116 shares in accordance with the 2022 annual results
and the results of their individual appraisals. The Industrial Securities Asset Management Co., Ltd., the asset
management authority, will dispose of H shares held by the Industrial Securities Asset Management Xinzhong
Haier Smart Home No. 8 Employee Stock Ownership Single Asset Management Plan in due course based on
the aforesaid resolution, and allocate cash to the participants after taking into account the dividends received in
respect of 2022 H-share ESOP.
Please refer to the announcement on Vesting of Interests in Core Employee Stock Ownership Plans of Haier
Smart Home Co., Ltd. disclosed by the Company on 1 August 2023 for details.
B. Progress of Share Option Incentive Scheme: During the Reporting Period, since there was no suitable
exercise window period during the exercise period, the Company cancelled the 9,047,052 share options granted
but not yet exercised for the First Exercise Period of the 2021 A Share Option Incentive Scheme. For details,
please refer to the announcement on Cancellation of Certain Share Options Granted under The First Grant of the 2021
A Share Option Incentive Scheme of Haier Smart Home Co., Ltd. disclosed by the Company on 31 August 2023.
(5) A-share repurchases: On 27 April 2023, the Company convened the 5th meeting of the 11th session of the
Board, which considered and approved the Resolution in Relation to the Repurchase Plan of a Portion of Public
A Shares of Haier Smart Home Co., Ltd. It allowed the Company to use its own funds to repurchase a portion
of A shares of the Company by way of centralised bidding. The repurchase price is no more than RMB32 per
share and the proposed total repurchase amount is no more than RMB3.0 billion and no less than RMB1.5
billion. The period of this repurchase is within 12 months from the date the Board considered and approved the
resolution of repurchase of shares. As at the end of the Reporting Period, the Company had repurchased a total
of 40,409,552 shares cumulatively. The highest price purchased was RMB 24.50 per share and the lowest price
was RMB 21.20 per share, and the amount paid was RMB 921,834,098.71. For details, please refer to the
relevant announcements on monthly progress.
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
For the business combinations under common control in the Period, the net profit of the parties consolidated before
consolidation was: RMB0 and the net profit of the parties consolidated in the Previous Period was: RMB2,513,646.83.
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Haier Smart Home Co., Ltd. 2023 Third Quarter Report
The adjustments of the relevant items of the financial statements at the beginning of the year due to the first
implementation of new accounting standards or interpretations to accounting standards since 2023
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