Haier Smart Home (600690) investor relations material

Executive summary

• Operating revenue for H1 2026 was RMB152.1 billion, down 2.8% year-over-year, with net profit attributable to shareholders at RMB10.3 billion, down 14.3%.

• Gross profit margin improved to 27.2%, up 0.4 percentage points year-over-year, despite revenue decline.

• Overseas revenue remained broadly stable, offsetting U.S. market weakness with growth in Europe, South Asia, and Southeast Asia.

• The company advanced digital transformation, AI-driven product innovation, and supply chain localization.

Financial highlights

• Operating revenue: RMB152.1 billion (down 2.8% YoY); net profit: RMB10.3 billion (down 14.3% YoY).

• Net profit after deduction of non-recurring items: RMB9.3 billion (down 20.5% YoY).

• Net cash flow from operating activities: RMB9.75 billion (down 12.5% YoY).

• Basic EPS: RMB1.12 (down 13.9% YoY); gross profit margin: 27.2% (up 0.4pp YoY).

• Exchange losses of RMB911 million impacted profit; excluding FX, profit before tax decline would have been smaller.

Outlook and guidance

• Domestic market expected to stabilize in H2 2026, with replacement demand and product upgrades driving growth.

• Overseas markets face ongoing trade policy uncertainty and commodity price pressures; premium, energy-efficient products to drive growth in mature markets, while emerging markets remain priority for expansion.

• Continued focus on AI-driven transformation, digital upgrades, and localized operations to improve profitability and efficiency.