Haier Smart Home (600690) H1 2024 earnings summary

Executive summary

• Achieved RMB135.62 billion in revenue for H1 2024, up 3.0% year-over-year, with net profit attributable to shareholders rising 16.3% to RMB10.42 billion and gross margin improving to 30.6%.

• Domestic revenue grew 2.3% despite weak white goods demand; overseas revenue increased 3.7%, with strong growth in South Asia, Southeast Asia, and Middle East & Africa.

• Maintained global leadership in major appliances, with top market shares in Asia, Australia/New Zealand, and strong positions in America and Europe.

• Continued focus on high-end brand strategy, digital transformation, and global supply chain optimization to drive profitability and market share.

Financial highlights

• Operating revenue: RMB135.62 billion, up 3.0% year-over-year.

• Net profit attributable to shareholders: RMB10.42 billion, up 16.3% year-over-year.

• Net profit after non-recurring items: RMB10.16 billion, up 18.1% year-over-year.

• Basic EPS: RMB1.13, up 17.7% year-over-year; gross margin: 30.6%, up 0.2 percentage points.

• Net cash flow from operating activities: RMB7.82 billion, up 15.1% year-over-year.

Outlook and guidance

• Plans to leverage national trade-in policies and innovative marketing to stimulate domestic demand in H2 2024.

• Overseas focus on profitability through product upgrades, supply chain localization, and digital transformation.

• Expects steady growth in emerging markets and gradual recovery in developed markets as interest rates ease.