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Haier Smart Home Driven by Outstanding Premium and Overseas Performance with Strong Revenue and Profit Increase in 9M 2021

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DGAP-News: Haier Smart Home Co.,Ltd. / Key word(s): 9 Month figures/Quarterly / Interim Statement
29.10.2021 / 16:36
The issuer is solely responsible for the content of this announcement.

Haier Smart Home Driven by Outstanding Premium and Overseas Performance with Strong Revenue and Profit Increase in 9M 2021

- Group Revenue and Profit increased by 20.4% and 60.2% respectively in 9M 2021

- Cash Flow from operating activities more than doubled compared to 9M 2020

- Expense Ratio improved by 1.7 pp in 9M 2021


Qingdao / Shanghai / Frankfurt / Hongkong, 29 October 2021 - Haier Smart Home Co., Ltd. (the "Company" or "Haier Smart Home", D-share 690D.DE, A-share 600690.SH, H-share 06690.HK) recorded revenue of about RMB 170.0 billion in the nine-month period 2021, representing a 10.1% increase over the comparable period in 2020. Adjusted for the divestment of COSMOPlat in 2020, revenue growth amounted to 20.4%. Net profit attributable to the owners of the parent company increased by 57.7% to RMB 9.9 billion (60.2% adjusted for COSMOPlat). Profit growth outpacing sales growth underscores the continuous improvement in profitability. Cash flow from operating activities more than doubled, increasing by 134,0% to RMB 13.4 billion compared to the same period in 2020.

Adjusted for the divestment of COSMOPlat in 2020, revenue and net profit attributable to owners of the parent company increased by 9.2% and 14.6% respectively in Q3 2021 compared with the same period of the previous year.

Improvement of expense ratio by 1.7 pp
Benefiting from continuous digital transformation, Haier Smart Home further improved the operational efficiency along the entire value chain and actively promoted the continuous optimization of the Company's expense ratio as well as product mix. With an increase of market share in all categories, the further growing success of the Casarte premium brand, in particular, contributed to effectively compensating for the challenge of rising raw material costs.

Haier Smart Home's overall expense ratio improved in the nine-month period by 1.7 pp over the same period of last year, with the sales expense ratio and the administrative expense ratio (adjusted for the divestment of COSMOPlat in 2020) decreasing by 1.1 pp and 0.6 pp respectively.

Casarte's growth rate at 57.0% - Air-conditioning market share at record high
Casarte continued to grow rapidly in the nine-month period 2021 with sales growth almost at 57.0%. According to China Market Monitor (CMM), Casarte achieved a market share of 37.4% for refrigerators priced above RMB 10,000, 77.2% for front-loading washing machines priced above RMB 10,000 and 36.5% for air conditioners priced above RMB 15,000. Consequently, Casarte is the undisputed market leader in high-end products.

At the same time, Haier Smart Home's high-end air-conditioning business continued to rank first with its market share of 25.0% in Q3 2021, hitting a new high. In the nine-month period 2021, Haier's overall revenue growth rate of air-conditioning reached 20.0%, while the revenue growth rate of Casarte's high-end air-conditioning increased to 68.6%. Haier's air conditioner market share has been growing for the past five consecutive years.

In the kitchen appliance business, Haier Smart Home also achieved rapid growth by targeted investments in high-end markets and its transformation into a scenario ecosystem brand. Haier's kitchen appliance business revenue increased by 31.0% in the nine-month period 2021. The corresponding revenues increase from Casarte high-end kitchen appliances by 123.0% offers further growth potential.

With the introduction of new products, revenue from washer-dryers grew by more than 260.0% in the nine-month period.

Continued double-digit growth overseas with an increase in operating profit margin of 1.7 pp
In its overseas markets, Haier Smart Home leveraged the advantages of localized high-end innovative brands and adopted product mix optimization measures to effectively compensate for the challenges of rising raw material prices and logistics costs. In addition, Haier Smart Home successfully increased its online share in overseas markets and recorded a double-digit revenues growth of 16.8% in the nine-month period. With an increase in the operating profit margin of 1.7 pp, Haier Smart Home's profitability exceeded the industry average of OEMs.

Based on market potential of around USD 24.6 billion estimated by Euromonitor, overseas markets will continue to be an important growth area for Haier Smart Home's sustainable development.

Haier Smart Home is giving full play to the power of the whole industry, in order to provide users with high-quality customized smart home services. Haier Smart Home's growth momentum remains strong. This is inseparable from its long-term investment and firm implementation of high-end, smart, and global strategies.


About Haier Smart Home Co., Ltd.:
Haier is one of the world's leading manufacturers of household appliances with a focus on smart home solutions and customized mass production. Haier Smart Home Co., Ltd. develops, produces and distributes a wide range of household appliances. These include refrigerators, freezers, washing machines, air conditioners, water heaters, kitchen appliances as well as smaller household appliances and an extensive range of intelligent household appliances. The Company distributes its products through leading household brands such as Haier, Casarte, Leader, Candy, GE Appliances, AQUA and Fisher & Paykel. Haier Smart Home Co., Ltd. has launched Smart Home Experiential Cloud, which connects homes, users, enterprises and ecosystem partners, and facilitates the integration of Haier's online, offline and micro-store businesses and supports user interaction to further optimize the user experience.

IR Contact:
Haier Smart Home Hongkong
T: +852 2169 0000
Email: ir@haier.hk

Contact Press:
CROSS ALLIANCE communication GmbH
Sven Pauly
Sara Pinto
sp@crossalliance.de
T: +49 (0) 89 1250903 35


29.10.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Haier Smart Home Co.,Ltd.

Haier Industrial Park, Laoshan District

266101 Qingdao

China

Phone:

+49 6172 9454 143

Fax:

+49 6172 9454 42143

E-mail:

ir@haier.hk

Internet:

smart-home.haier.com

ISIN:

CNE1000031C1, CNE000000CG9 (A-share),

WKN:

A2JM2W

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1244904


 

End of News

DGAP News Service

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