· Total Revenue of RMB 68.98 billion, a 6.01% increase year-over-year (Q1 2023: RMB 65.07)
· Net Cash Flow from operating activities rose by 27.31% to RMB 1.72 billion
· Enhanced process efficiency and cost reductions through digitalization
Qingdao / Shanghai / Hong Kong / Frankfurt, April 29, 2024 – Haier Smart Home Co., Ltd. ("Haier Smart Home" or "the Company"), a global leader in smart home solutions (D-share 690D.DE, A-share 600690.SH, H-share 06690.HK), today announced its financial results for the first quarter of 2024.
Building on the momentum from its 2023 annual report, Haier Smart Home delivered a strong start to 2024, achieving a notable increase in total revenue and profit. Revenue reached RMB 68.98 billion, marking a 6.01% increase compared to the same period of the previous year. Net profit attributable to the owners of the parent company climbed to RMB 4.77 billion, up 20.16% year-over-year, while net profit after adjusting for non-recurring items grew by 25.41% to RMB 4.64 billion.
Innovation-driven growth with Casarte Brand
Casarte, the company's premium appliance brand, continues to lead in China’s high-end market, surpassing 20 million customers. At the recent Appliance & Electronics World Expo 2024, Asia's largest and one of the world's three largest international consumer electronics and smart home exhibitions, Casarte unveiled a strategic partnership with Boloni, a home furnishing company. At Milan’s International Furniture Fair (Salone del Mobilie Milano) Casarte blended design and technology showing fashionable combinations of refrigerators and kitchen cabinets, as well as refrigerators and wine cabinets, reflecting Haier´s commitment to luxury and performance.
Accelerating growth with technology
Responding to consumer demands for efficiency and convenience, Haier introduced the new "Lingxi Series" of air conditioners. These units feature advanced technologies such as a cool core bridge, heat flow defrosting, and smart offline voice systems, quickly becoming the top-selling models in China's direct sales channels.
Haier´s commitment to Sustainability
Haier Smart Home remains dedicated to integrating sustainability into its product lineup, aiming to provide consumers with healthy, green, smart, and aesthetically pleasing living solutions. This commitment is exemplified by the "Boguan refrigerators," which are designed to be over 15% more energy-efficient than traditional models. Additionally, the "Essence Wash" washing machine utilizes air-washing technology to save 38% of water and reduce electricity usage by 29%. Similarly, Haier's air conditioners are engineered to reduce electricity consumption by up to 29%, supporting the company’s goal of enabling a low-carbon lifestyle for its users.
Further success in overseas markets
In the first quarter of 2024, Haier Smart Home achieved a 4% increase in overseas revenue, with a double-digit operating profits rising year-over-year. Regionally, the company made notable gains in the European and American markets, where, according to GfK China Market Monitor, Haier Europe's market share expanded by 0.9 percentage points to 9% between January and February.
Facing softening demand in the major home appliance sectors of Europe and America, the company has proactively developed and introduced flagship products tailored to local consumer needs. These efforts were supported by enhancements in local supply chains and sales networks, alongside the utilization of global R&D, procurement, supply chain, and logistics synergies. At the Spring Canton Fair in April 2024, Haier Smart Home unveiled the “X11 washing machine,” a direct response to European energy constraints. Engineered through collaborative efforts across R&D centers in Europe, Australia, and China, the X11 washing machine achieves 50% greater energy efficiency than the highest European Class-A standards, underscoring the company´s commitment to innovation and sustainability in appliance technology.
Expanding SAN YI NIAO Brand
SAN YI NIAO is pioneering the integration of home appliances and home furnishings, offering differentiated solutions that cater to the evolving needs of consumers. Since its inception three years ago, the brand has been at the forefront of combining smart-home technology with customized furnishing solutions, leading to sustained growth in its retail footprint and user engagement.
In the first quarter of 2024, SAN YI NIAO delivered remarkable progress across key performance indicators. Daily active users of its scenario-based solutions surged by 32%, the number of retail locations expanded by 85%, and retail sales grew by 30% year-over-year. These achievements underscore SAN YI NIAO's successful strategy in merging cutting-edge technology with functional design, thereby setting new industry standards and enhancing consumer experiences.
Enhancing efficiency through Digital Transformation
Haier Smart Home has effectively embraced digital transformation, significantly optimizing its expense ratios. This shift has led to improved efficiencies across marketing, logistics, and warehouse operations, resulting in a reduced selling expense ratio of 13.1% in Q1 2024. This corresponds to a decrease of 0.5 percentage points year-over-year. Furthermore, the strategic adoption of digital tools has also refined the administrative expense ratio, which decreased by 0.3 percentage points compared to Q1 2023, achieving a new low of 3.2%. These enhancements reflect Haier Smart Home's commitment to leveraging digital advancements to streamline operations and reduce costs.
Sustained growth
Despite escalating competition and a volatile external environment, Haier Smart Home's performance in the first quarter of 2024 has notably exceeded public expectations, demonstrating robust resilience and significant growth potential. Looking ahead, the company is committed to continuous improvements in cost reduction and operational efficiency through ongoing digitalization efforts. Additionally, by expanding its global presence, Haier Smart Home is poised to seize further development opportunities, paving the way for sustained high-quality growth across its markets.
The Q1 report 2024 as at 31 March 2024 is available online at https://smart-home.haier.com/en/.
IR Contact:
Haier Smart Home Hong Kong
T: +852 2169 0000
Email: ir@haier.hk
Press Contact:
CROSS ALLIANCE communication GmbH
Sara Pinto
Sven Pauly
pi@crossalliance.de
T: +49 (0) 89 1250903 35
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 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, small 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 in the Chinese market, 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.
