Haier Smart Home (600690) Q3 2024 earnings summary

Executive summary

• Revenue for the first three quarters of 2024 reached RMB202.97 billion, up 2.2% year-over-year; net profit attributable to shareholders was RMB15.15 billion, up 15.3% year-over-year.

• Q3 2024 revenue was RMB67.35 billion, up 0.5% year-over-year; net profit attributable to shareholders was RMB4.73 billion, up 13.2% year-over-year.

• Domestic market saw steady retail improvement, leveraging premium brands and digital transformation; Casarte brand outperformed.

• Overseas, sales in South Asia grew over 30% in Q3; commercial air conditioners grew 70% globally.

• Completed acquisition of Carrier's commercial refrigeration business on October 1, 2024.

Financial highlights

• Gross profit margin for the first three quarters was 30.8%, up 0.1 percentage points year-over-year.

• Selling expense ratio improved to 14.2% (down 0.5 pts), administrative expense ratio to 3.8% (down 0.3 pts), while financial expense ratio rose to 0.1% (up 0.1 pts) due to overseas interest rate hikes.

• Net cash flow from operating activities was RMB13.88 billion, up RMB0.67 billion year-over-year.

• Asset-liability ratio at quarter-end was 56.2%, down 2 percentage points from end-2023.

• Total assets at quarter-end were RMB256.13 billion, up 1.09% from end-2023; equity attributable to shareholders was RMB109.30 billion, up 5.59%.

Outlook and guidance

• Company aims to expand B2B customized products and services, advance global cold chain development, and reinforce ESG commitments following Carrier acquisition.

• Focus remains on technological innovation, digital transformation, and cost competitiveness for sustainable growth.