Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
S tock Co de : 60 06 90 Sh ort Na me: H aier S mart Ho me
Convertible Bond Code: 110049 Convertible Bond Name: Haier Convertible Bonds
Convertible Stock Code: 190049 Convertible Stock Name: Haier Converted Stocks
Haier Smart Home Co., Ltd.
Third Quarterly Report of
2019
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Contents
I. Important Notice ..........................................................................................................................3
II. Company Profile ....................................................................................... ....................................3
III. Important Events ....................................................................................................................... 11
IV. Appendix ................................................................................................ ....................................21
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
I. Important Notice
1.1 The Board of Directors, the Board of Supervisors and directors, supervisors and senior management
of Haier Smart Home Co., Ltd. (the “Company”) hereby assure that the content set out in the
quarterly report is true, accurate and complete, and free from any false record, misleading
representation or material omission, and are individually and collectively responsible for the
content set out therein.
1.2 All directors of the Company attend the Board Meeting of Directors to review the quarterly report.
1.3 Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of the
Company) and Ying Ke (the person in charge of accounting department) hereby certify that the
financial statement set out in the quarterly report is true, accurate and complete.
1.4 This Third Quarterly Report of the Company has not been audited.
II. Company Profile
2.1 Key financial information
Unit and Currency: RMB
Increase/decrease
As at the end of last year as at the end of the
As at the end of
reporting period
the reporting After Before compared with the
period
adjustment adjustment end of last year
(%)
Total assets 184,273,943,674.56 167,623,755,907.07 166,699,544,243.79 9.93
Net assets attributable to
shareholders of the listed 44,881,019,057.59 39,527,134,756.93 39,402,350,791.68 13.54
company
From the From the beginning of last year Increase/decrease
beginning of the to the end of the reporting period compared with
year to the end of last year (January to the corresponding
of the reporting September) period of last year
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
period (January After Before (%)
to September)
adjustment adjustment
Net cash flows from
9,006,912,568.45 10,902,332,232.22 11,049,179,807.06 -17.39
operating activities
From the From the beginning of last year
beginning of the to the end of the reporting period Increase/decrease
year to the end of last year (January to compared with
of the reporting September) the corresponding
period (January After Before period of last year
to September) (%)
adjustment adjustment
Operating revenue 148,896,109,856.46 138,227,311,459.35 138,138,774,411.21 7.72
Net profit attributable to
shareholders of the listed 7,772,860,902.81 6,161,001,081.50 6,126,787,121.21 26.16
company
Net profit after deduction of
non-recurring profit or loss
5,834,398,305.26 5,522,473,377.30 5,522,473,377.30 5.65
attributable to shareholders
of the listed Company
Weighted average return on
18.17 18.02 17.42 Increased by 0.15 pct
net assets (%)
Basic earnings per share
1.221 1.010 1.005 20.89
(RMB per share)
Diluted earnings per share
1.131 1.010 0.987 11.98
(RMB per share)
Note：
During the reporting period, the Company followed the strategy of smart home leadership. Driven
by the Rendanheyi model, the Company managed to achieve continuous growth against the adverse
economic situation through continued product innovation, deepened retail transformation, global
operation and multibrand operation. The Company also leaded the scenario transformation of eco brand
and accelerated the landing of '5+7+N' smart home, all-scenario, customized and complete-set solutions
and creation of eco-scenario; and promoted the construction from the networked appliances to scenario
to ecology and built an eco brand in the IoT era. In 2019, Haier was listed in “BrandZ Top 100 Most
Valuable Global Brands in 2019” and became the first and only IOT eco brand listed in the Top 100 in
BrandZ’s history.
1. As the logistics business would not be consolidated by the Company in Q3 of 2019, the revenue
increased by 4.6% in this quarter. If we exclude the impact from logistics equity swap, on a LOL basis,
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
the revenue from July to September would increase by 9.1% yoy and 9.5% for the first three quarters
this year. The disposal of logistics business resulted in investment income of RMB1.44 billion.
2. Continuously rising market share of online and offline whole-category products in domestic
market. According to the statistics from China Market Monitor Co., Ltd (CMM), ①Offline market: the
Company's retail sales shares of refrigerators, washing machines, air conditioners, water heaters and
kitchen appliances increased by 1.4, 2.7, 0.7, 1.9 and 0.8 pct from January to September 2019,
respectively. In terms of refrigerators and washing machines, the Company maintained the top 1 in the
industry and continued to expand its leading advantages, with the market share being 3.3 and 2.1 times
as high as that of the second place, respectively. ②Online market: the Company's retail sales shares of
refrigerators, washing machines, air conditioners, water heaters and kitchen appliances have increased
by 1.9, 1.3, 0.1, 1.5 and 1.1 pct, respectively.
3. Accelerating Growth of high-end brand Casarte. Revenue of Casarte brand from January to
September increased by 25%, of which the revenue from July to September increased by 42%; Casarte
refrigerators and washing machines achieved absolute leading advantage in terms of the market share of
products priced over RMB10,000, which amounted to 40.6% and 76.8%, respectively.
4. Air conditioner business achieved breakthrough in high-end market. Casarte’s air
conditioners achieved multiple growth through launching Commander series and expanding the product
lineup with a revenue growth from January to September of 120%; the market share of Casarte air
conditioners priced over RMB10,000 nearly doubled, achieving 10.2%; and the high-end market share
of products priced over RMB15,000 amounted to 41.24%, ranking top among the competitors; in the
overseas market, the Company insisted on self-owned brand, and the self-owned brand of Haier air
conditioner ranked top in terms of export for two consecutive years.
5. Global brand corporate value demonstrated, overall growth in overseas market achieved and
the high-end presence established with remarkable success. The revenue from overseas market
increased by 25%, representing 47% of the total revenue, while nearly 100% of the revenue from
overseas was generated from self-owned brands. The revenue from all regional markets have realized
increase with the North America, Europe, South Asia, Southeast Asia, Japan, Australia and New Zealand
and Mid&East Africa increased by 11.6%, 224.5%, 14.1%, 22.4%, 9.7%, 3.2% and 9.2%, respectively.
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Haier Smart Home Co., Ltd.
The Company merged Italian brand Candy this year, and after 3 quarters of platform integration on
logistics, finance, after sales and human resources, and adopting measures in procurement and R&D
synergy, the results of the third quarter improved significantly, and the fruits on operation have gradually
come into being.
6. Leading the transformation of scenario solution replacing the product. Complete-set smart
home solution gained market recognition. The Company replaced the past single product sales by
providing the whole-house smart scenario solution ‘5+7+N’ to meet the user's personalized
customization needs for smart home. Haier Smart Home 001 Experience Center opened on 6 September
in Shanghai, landing the scene experience of ‘5+7+N’, providing the user with new experience of
solutions including whole-house interactive voice, whole-house fresh air, smart kitchen providing whole
family’ healthy food, whole-house water using, sanitation and security, empowering the sales of Haier
smart home complete-set solutions with its differentiated advantages on all-scenario, complete-set and
smart solutions. The total sales in a single month reached RMB20 million, the average price per
customer of solutions of smart home appliances & household integration is RMB400,000, among which
the average price per customer of solutions of smart home appliances scenario is RMB250,000, and the
highest price per customer reached RMB700,000. The Company realized transformation from selling
single product to providing comprehensive solutions of home appliances & household integration, and
from products interaction to scenario interaction, and achieved iterative upgrades to enhance user’s
value and viscosity with comprehensive premium sets, comprehensive smart sets, process integration of
design, installation and after-sales and Smart Home’s cloud platform.
7. A leading eco system transformation with full industry coverage. The Company actively
promoted the ecosphere construction of the Internet of Clothing, Internet of Food and Internet of
Air, as well as the empowerment transformation of related industries. Haier’s ecosphere including
the Internet of Clothing, Internet of Food and Internet of Air covering industries like clothing, textile,
washing & dyeing and food with more than 1200 cooperative resource enterprises. During the reporting
period, the ecological revenue of the Internet of Food, Internet of Clothing and Internet of Air increased
by 40%, 46% and 79%, reaching RMB0.73 billion, RMB1.62 billion and RMB0.94 billion, respectively;
the ecological revenue of smart home increased by 55%, reaching RMB3.37 billion; and the ecological
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Haier Smart Home Co., Ltd.
yield was 15%, increased by 3 pct.
The Internet of Clothing of Haier provides users with the best experience throughout the whole
process based on the clothing lifetime cycle management platform of IoT and reliant on the home
appliances of the Internet of Clothing and the IoT technologies. By connecting fields, factories, stores
and homes to label clothes with RFID ‘chip identity card’, and cooperating with clothing and textile
industry, washing and dyeing industry, and the Internet of Clothing technology industry to construct
smart scenario ecology together, the Company achieved digital management of smart clothes, provided
users with lifetime cycle solutions from clothes purchase to washing, caring, management and matching,
and facilitated the transformation and upgrading of industry chain-cluster of clothes in the IoT era. The
Internet of Clothing promoted the application of IoT technologies in the clothing and textile industry,
which enhanced the commodity management efficiency of the ecological resource enterprises, with the
efficiency of receipt and delivery increased tenfold and the labor costs decreased by 50%.
8. We continued to expand the R&D investment of AI and IOT to create a dual-core drive
capability of networked appliances intelligence and data intelligence. The voice interactive portal
covers more than 60 types of networked appliances and more than 3,000 models. From January to
September 2019, the binding amount of networked appliances and activation rate of intelligent white
goods increased by 137% and 92%, respectively and the active users increased by 195% year-on-year.
Leading the formulation of international/national standards: The Smart Home’s cloud platform
fully deployed four major standard organizations including IEC, ISO, IEEE and OCF and realized an
worldwide leading position in standard system of smart home cloud ecology. While leading the
formulation of international standards for the IEEE food traceability; the Internet of Clothing released
national standards for the GB clothing commodities encoding and RFID labels, initiated 4 international
standards, and participated in the formulation of 10 national & international standards.
Transforming from the networked appliances to scenario and to ecology will provide the consumers
a smart & precise life solution and keep iterating. The Company also transforms from current low
frequency sales to high frequency interaction with lifetime users to increase the users marginal revenue
and create value among users and ecosystem stakeholders in a win-win situation. We realized diversified
revenue expansion on the business model, such as revenue from the hardware to revenue from services,
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Haier Smart Home Co., Ltd.
platforms and others.
9. COSMOPlat Industrial Internet Platform: it established ‘1 (main platform) + 7 (modules) +
N (industries) platform’ system, and realized cross-industry and cross-field applications by promoting
platform innovation, technology innovation and ecological innovation. For the time being, it can provide
a comprehensive solution of soft and hard integration for 15 industries such as ceramics, RV and
agriculture, deeply empowering enterprises for transformation and upgrading. The revenue of
COSMOPlat was RMB8.06 billion with an increase of 55%. 15 interconnected factories have been built
by the Company, constructing a large-scale user-oriented customization leading system in the IOT era,
and forming a world's leading benchmark of high-end manufacturing.
Non-recurring Profit or Loss Items and Amount
√Applicable □Not Applicable
Unit and Currency: RMB
Amount from the beginning
Amount for the current period of the year to the end of the
Items
(July-September) reporting period
(January-September)
Profit or loss from disposal of
3,801,616,782.92 3,805,919,840.94
non-current assets
Government grants included in
current profit or loss, except
those closely related to the
normal operating business,
complying with requirements
168,129,964.05 447,385,997.55
of the national policies, and
continuing to be granted with
the amount and quantity
determined under certain
standards
Current net profit or loss of the
subsidiaries from the
consolidation of enterprises
13,950,738.83 13,950,738.83
under common control from
the beginning of the period to
consolidation date
Profit or loss from
contingencies not related to the
ordinary operations of the
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Company
Profit and loss of changes in
fair value arising from holding
of trading financial assets,
derivative financial assets,
trading financial liabilities and
derivative financial liabilities
except for valid straddle
business relevant to normal
-3,644,829.80 152,554,135.11
business of the company, as
well as investment gain
realized from disposal of
trading financial assets,
derivative financial assets,
trading financial liabilities,
derivative financial liabilities
and other debt investments
Other non-operating income
and expenses except for the 139,277,208.60 304,162,252.10
above mentioned
Effect of minority equity
-2,169,874,488.09 -2,263,926,589.46
interests, net of tax
Income tax effect -458,681,521.98 -521,583,777.52
Total 1,490,773,854.53 1,938,462,597.55
2.2 Total number of shareholders, top ten shareholders and top ten shareholders holding circulating
shares (or shareholders not subject to selling restrictions) as of the end of the reporting period
Unit: share
Total number of shareholders 168,418
Shareholdings of top ten shareholders
Number of Status of shares
Number of shares pledged or frozen
Percent
Name of Shareholder shares held at held with Nature of
age
(full name) the end of the selling Statu shareholder
(%) Number
period restriction s
s
Domestic
Haier Electric Appliances non-state-o
1,258,684,824 19.76 Nil 1,258,684,824
International Co., Ltd. wned legal
entity
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Haier Smart Home Co., Ltd.
Domestic
non-state-o
Haier Group Corporation 1,072,610,764 16.84 Nil 1,072,610,764
wned legal
entity
Hong Kong Securities Unkn
763,164,487 11.98 763,164,487 Unknown
Clearing Co., Ltd. own
China Securities Finance Unkn
182,592,697 2.87 182,592,697 Unknown
Corporation Limited own
Qingdao Haier Venture & Domestic
Investment Information Unkn non-state-o
172,252,560 2.70 172,252,560
Co., Ltd. (青岛海尔创业 own wned legal
投资咨询有限公司) entity
Unkn
GIC PRIVATE LIMITED 171,682,422 2.70 171,682,422 Unknown
own
Bank of China Limited- E
Unkn
Fund's small and 94,000,098 1.48 94,000,098 Unknown
own
medium-sized
CLEARSTREAM Unkn
91,222,350 1.43 91,222,350 Unknown
BANKING S.A. (Note) own
Qingdao Haichuangzhi Domestic
Management Consulting non-state-o
73,011,000 1.15 Nil 73,011,000
Enterprise (Limited wned legal
Partnership) entity
National social security Unkn
72,009,282 1.13 72,009,282 Unknown
fund, Portfolio 103 own
Shareholdings of top ten shareholders without selling restrictions
Number of tradable Class and number of shares
Name of shareholder shares held without
Class Number
selling restrictions
Haier Electric Appliances International Co.,
1,258,684,824 RMB ordinary 1,258,684,824
Ltd.
Haier Group Corporation 1,072,610,764 RMB ordinary 1,072,610,764
Hong Kong Securities Clearing Co., Ltd. 763,164,487 RMB ordinary 763,164,487
China Securities Finance Corporation Limited 182,592,697 RMB ordinary 182,592,697
Qingdao Haier Venture & Investment
Information Co., Ltd. (青岛海尔创业投资咨 172,252,560 RMB ordinary 172,252,560
询有限公司)
GIC PRIVATE LIMITED 171,682,422 RMB ordinary 171,682,422
Bank of China Limited- E Fund's small and
94,000,098 RMB ordinary 94,000,098
medium-sized
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Overseas
listed
CLEARSTREAM BANKING S.A. 91,222,350 91,222,350
foreign
shares
Qingdao Haichuangzhi Management
73,011,000 RMB ordinary 73,011,000
Consulting Enterprise (Limited Partnership)
National social security fund, Portfolio 103 72,009,282 RMB ordinary 72,009,282
（1）Haier Electric Appliances International Co., Ltd. is a
holding subsidiary of Haier Group Corporation. Haier Group
Corporation holds 51.20% of its equity. Qingdao Haier
Related parties or parties acting in concert Venture & Investment Information Co., Ltd. (青岛海尔创业
投 资 咨 询 有 限 公 司 ) and Qingdao Haichuangzhi
among the aforesaid shareholders Management Consulting Enterprise (Limited Partnership) is
a party acting in concert with Haier Group Corporation; (2)
The Company is not aware of the existence of any
connections of other shareholders.
Explanation of preferential shareholders with
restoration of voting rights and their N/A
shareholdings
Note: This account is the Clearstream Banking collection account for the Company's D shares,
which is the original data provided by the German securities registration agency to the Company after
the merger according to local market practices and technical settings, not representing the ultimate
shareholder.
2.3 Table of total number of preferential shareholders, top ten preferential shareholders, top ten
preferential shareholders without selling restrictions by the end of the reporting period
□Applicable√ Not Applicable
III. Important Events
3.1 The major changes and reasons for the items of accounting statement and financial indicators
√Applicable □Not Applicable
Reasons for the changes with the amount of variation exceeding ±30% are as follows:
1) Financial assets held for trading decreased by 53.97% as compared to the beginning of the period,
mainly due to the decrease of wealth management products during the current period;
2) Prepayments increased by 54.03% as compared to the beginning of the period, mainly due to the
increase of prepayments for materials.
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Haier Smart Home Co., Ltd.
3) Assets held for sale decreased by 98.46% as compared to the beginning of the period, mainly due
to the finished disposal of the assets to be disposed;
4) Long-term equity investments increased by 42.81% as compared to the beginning of the period,
mainly due to the equity changes in the subsidiaries of Haier Electronics;
5) Development expenses decreased by 71.93% as compared to the beginning of the period, mainly
due to the transfer to intangible assets upon completion;
6) Short-term borrowings increased by 43.78% as compared to the beginning of the period, mainly
due to the increase of loans resulted from merging candy;
7) Financial liabilities held for trading decreased by 71.31% as compared to the beginning of the
period, mainly due to the expiration of forward foreign exchange contacts during the current period;
8) Receipts in advance decreased by 100% as compared to the beginning of the period, mainly due
to the completion of contract performance during the last period;
9) Liabilities held for sale decreased by 57.37% as compared to the beginning of the period, mainly
due to the equity changes in the subsidiaries of Haier Electronics;
10) Non-current liabilities due within one year increased by 222.09% as compared to the beginning
of the period,mainly due to the reclassification of long-term loans due within one year;
11) Lease liabilities increased by 100% as compared to the beginning of the period, mainly due to
the lease liabilities recognized pursuant to the new lease standard;
12) Long-term payable increased by 103.09 % as compared to the beginning of the period, mainly
due to the increase of subsidiary’s items long-term payable.
13) Deferred income tax liabilities increased by 352.14% as compared to the beginning of the
period, mainly due to the liabilities brought in by candy merged during the current period and the
equity changes in the subsidiaries of Haier Electronics;
14) Other non-current liabilities decreased by 94.66% as compared to the beginning of the period,
mainly due to the equity changes in the subsidiaries of Haier Electronics;
15) Capital reserve decreased by 39.95% as compared to the beginning of the period, mainly due to
the 1169 logistics business moved off the financial statements;
16) Other comprehensive income increased by 110.99% as compared to the beginning of the period,
mainly due to the contribution from candy merged during the current period;
17) Other income increased by 32.40% as compared to the same period of last year, mainly due to
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Haier Smart Home Co., Ltd.
the increase in the government grants during the current period;
18) Investment income increased by 275.83% as compared to the same period of last year, mainly
due to the equity changes in the subsidiaries of Haier Electronics;
19) Losses and gains on change of fair value increased by 116.48% as compared to the same period
of last year, mainly due to the change of fair value in forward foreign exchange contracts during the
current period;
20) Gains on asset disposal decreased by 111.91% as compared to the same period of last year,
mainly due to the gains on asset disposal from the same period of the last year (current period: nil);
21) Non-operating income increased by 51.03% as compared to the same period of last year, mainly
due to the increase in one-off income during the current period;
22) Non-operating expenses increased by 125.45% as compared to the same period of last year,
mainly due to the increase in one-off expenses during the current period;
23) Income tax expenses increased by 56.42% as compared to the same period of last year, mainly
due to the equity changes in the subsidiaries of Haier Electronics.
3.2 Analysis on the progress of significant events and their impacts and solutions
√Applicable □Not Applicable
(1) External Guarantees：As of the end of the reporting period, the external guarantees of the
Company and its subsidiaries are all guarantees among the Company and its subsidiaries, and the
balance of the external guarantees amounted to RMB29.255 billion in total (the balance of guarantees
for the loan funds used to acquire GEA amounted to RMB7.875 billion, and the balance of guarantees
for daily business amounted to RMB21.380 billion), representing 65.2% of the net assets of the
Company for the latest period, and 15.9% of the total assets for the latest period.
(2) Foreign Exchange Derivatives：As of the end of the reporting period, the balance of the
Company’s Foreign Exchange Derivatives amounted to approximately US$1.442 billion in total.
(3) Entrusted wealth management: By the end of the reporting period, the balance of the
Company’s entrusted wealth management amounted to RMB3.695 billion, including three parts: ①
temporarily-idle fundraising wealth management: at the end of December 2018, the Company’s
proceeds for the issuance of convertible corporate bonds were fully landed. In order to improve the yield
of temporarily-idle funds, the Company intends to carry out cash management with the amounts not
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Haier Smart Home Co., Ltd.
exceed RMB1.5 billion after approved by the Board of Directors. By the end of the reporting period, the
balance of the entrusted wealth management amounted to RMB0.728 billion; ② wealth management of
the Company’s Hong Kong listed subsidiary: Haier Electronics Group Co., Ltd. (hereinafter referred
to as “Haier Electronics” , stock code “01169.HK”), the holding subsidiary of the Company, has
purchased some short-term principal-protected wealth management and structural deposits from the
large commercial banks as an independently operating Hong Kong listed company in order to increase
the efficiency of the use of idle funds within the authorities of the management and on the premise of
safeguarding funds security. In the purchase process, all the necessary board reports were subject to the
procedures such as filling and management’ s review according to the regulations requirements for Hong
Kong listed company, so as to ensure sufficient funds for the day-to-day operations of the main business
and improve the shareholders' returns. By the end of the reporting period, the balance of the entrusted
wealth management amounted to RMB2.962 billion. ③Some subsidiaries of the Company use
temporarily-idle funds to manage their finances: In order to increase the yield of temporarily-idle
funds, some subsidiaries of the Company use temporarily-idle funds to conduct cash management within
the authority of the general manager's office. By the end of the reporting period, the balance of the
entrusted wealth management amounted to RMB5 million.
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3.3 The undertakings that have been past due and not been performed during the reporting period
□Applicable √Not applicable
By the end of the reporting period, the Company has no undertakings that have past due but not performed. The undertakings that are still in the performance
period are as follows:
Wheth
er it is
Whether perfor
Cove it has a med in
Backgr Time and
Type nante Content term for a
ound term
r perform timely
ance and
strict
manner
During the period from September 2006 to May 2007, the Company issued shares to Haier Group
Undert Corporation (“Haier Group”) to purchase the controlling equity in its four subsidiaries, namely Qingdao
aking Elimin
Haier Air-Conditioner Electronics Co., Ltd. (青岛海尔空调电子有限公司), Hefei Haier Air-conditioning
related ate the Haier
to propert Grou Co., Limited (合肥海尔空调器有限公司), Wuhan Haier Electronics Co., Ltd. (武汉海尔电器股份有限 27
signifi y right p September
公司), Guizhou Haier Electronics Co., Ltd. (贵州海尔电器有限公司). With regard to the land and YES YES
cant defects Corp 2006, long
assets in land oratio property required in the operation of Qingdao Haier Air-Conditioner Electronics Co., Ltd. (青岛海尔空调 term
reorga and n
电子有限公司) , Hefei Haier Air-conditioning Co., Limited (合肥海尔空调器有限公司), Wuhan Haier
nizatio etc.
n Electronics Co., Ltd. (武汉海尔电器股份有限公司) (the “Covenantees”), Haier Group made an
undertaking (the “2006 Undertaking”). According to the content of 2006 Undertaking and current
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
condition of each Covenantee, Haier Group will constantly assure that Covenantees will lease the land and
property owned by Haier Group for free. Haier Group will make compensation in the event that the
Covenantees suffer loss due to the unavailability of such land and property.
Haier Group Corporation undertakes that it will assure Haier Smart Home and its subsidiaries of the
constant, stable and unobstructed use of the leased property. In the event that Haier Smart Home or any of
its subsidiaries suffers any economic loss due to the fact that leased property has no relevant ownership
certificate, Haier Group Corporation will make compensation to impaired party in a timely and sufficient
way and take all reasonable and practicable measures to support the impaired party to recover to normal
Elimin
operation before the occurrence of loss. Upon the expiration of relevant leasing period, Haier Group
Undert ate the Haier
aking propert Grou Corporation will grant or take practicable measures to assure Haier Smart Home and its subsidiaries of 24
related y right p December
priority to continue to lease the property at a price not higher than the rent in comparable market at that YES YES
to defects Corp 2013, long
refinan in land oratio time. Haier Group Corporation will assure Haier Smart Home and its subsidiaries of the constant, stable, term
cing and n
free and unobstructed use of self-built property and land of the Group. In the event that Haier Smart Home
etc.
or any of its subsidiaries fails to continue to use self-built property according to its own will or in original
way due to the fact that self-built property has no relevant ownership certificate, Haier Group Corporation
will take all reasonable and practicable measures to eliminate obstruction and impact, or will support Haier
Smart Home or its affected subsidiary to obtain alternative property as soon as possible, if Haier Group
Corporation anticipates it is unable to cope with or eliminate the external obstruction and impact with its
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
reasonable effort. For details, please refer to the Announcement of Qingdao Haier Co., Ltd. on the
Formation, Current Situation of the Defective Property, the Influence on Operation of Issuer Caused by
Uncertainty of Ownership, Solution for the Defect and Guarantee Measures (L 2014-005) published by the
Company on the four major securities newspapers and the website of Shanghai Stock Exchange on 29
March 2014.
The Company undertakes that it will eliminate the property defects of the Company and main subsidiaries
within five years with reasonable business effort since 24 December 2013, so as to achieve the legality and
compliance of the Company and main subsidiaries in terms of land and property. For details, please refer
to the Announcement of Qingdao Haier Co., Ltd. on the Formation, Current Situation of the Defective
Elimin
Haier Property, the Influence on Operation of Issuer Caused by Uncertainty of Ownership, Solution for the
ate the
Smar
propert Defect and Guarantee Measures (L2014-005) published by the Company on the four major securities 24
t
y right December
Hom newspapers and the website of Shanghai Stock Exchange on 29 March 2014. During the aforesaid period, YES YES
defects 2013,
e
in land the Company has formulated relevant performance guarantee measures, including the re-application by the eight years
Co.,
and
Ltd. Company and its main subsidiaries to the competent government department for the property ownership
etc.
certificate and to procure Haier Group Corporation to make guarantee undertakings in respect of the
defective property owned by it and its subsidiaries. As of the expiration date, the Company has resolved
the property defects of itself and its eight major subsidiaries, while that of the other remaining five major
subsidiaries is in process. The Company will make reasonable business efforts to resolve the property
17 / 37
Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
defects of these five major subsidiaries. Because of historical issues and other reasons, the approval
procedure involved in solving some defective property problems is complicated, including that of multiple
government departments, and it takes a long time to handle and coordinate related matters. Due to the
above external factors, the Company was unable to complete the above undertakings within the original
undertaking period. Therefore, after the approval of the board meeting held by the Company on 5
November 2018 and the general meeting held on 21 December 2018, the term of the above undertakings
were extended for three years on the basis of the original deadline.
Inject the assets of Haier Photoelectric to the Company or dispose such assets through other ways
Haier
Grou according to the requirements of the domestic supervision before June 2020. For details, please refer to the
Other Asset December
p Announcement of Qingdao Haier Co., Ltd. on the Changes of Funding Commitment of Haier Group
undert injecti 2015 to YES YES
Corp
akings on Corporation (L2015-063) published by the Company on the four major securities newspapers and the June 2020
oratio
n website of Shanghai Stock Exchange on 23 December 2015.
Haier
On August 2018, Guan Mei (Shanghai) Enterprise Management Co., Ltd. (贯美（上海）企业管理有限公
Elect
Profit
ric 司) (hereinafter referred to as the “Guan Mei Company”), an indirectly controlled subsidiary of the
Other forecas
Appli By 30
undert t and Company swapped the 55% equity interest held by it in Bing Ji (Shanghai) Enterprise Management Co., YES YES
ances April 2021
akings compe
Inter Ltd. (冰戟（上海）企业管理有限公司) for the 51% equity interests held by Haier Electric Appliances
nsation
natio
International Co., Ltd. (hereinafter referred to as the “Haier International”) in Qingdao HSW Water
nal
18 / 37
Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Co., Appliance Co., Ltd. (hereinafter referred to as the “Water Appliance”). In this regard, Haier International
Ltd.
has made a commitment that the accumulated actual net profit realized by the Water Appliance during the
three fiscal years of the profit compensation period shall not be lower than its accumulated forecasted net
profit in the corresponding year. Otherwise, Haier International shall be required to make performance
compensation to Guan Mei Company according to the Asset Replacement Agreement. For details, please
refer to the Announcement of Qingdao Haier Co., Ltd. on Related-party Transaction of Planning to
Conduct Equity Replacement by Holding Subsidiary and Haier Electronics International Co., Ltd.
(L2018-047) published by the Company on the four major securities newspapers and the website of
Shanghai Stock Exchange on 31 August 2018.
19 / 37
Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
3.4 Warning and explanation on reasons for accumulated net profit for the period from the beginning of
the year to the end of the next reporting period to be at a loss or expected to have material change
as compared to that of the corresponding period of last year
□ Applicable √Not Applicable
Name of company Haier Smart Home Co., Ltd.
Legal representative Liang Haishan
Date 29 October 2019
20 / 37
Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
IV. Appendix
4.1 Financial Statements
Consolidated Balance Sheet
30 September 2019
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items 30 September 2019 31 December 2018
Current Assets:
Monetary capital 35,856,337,564.34 38,158,102,172.38
Provision of settlement funds
Placements with banks
Trading financial assets 817,293,602.82 1,775,648,387.76
Financial assets measured at fair
value and changes of which included in
current profit and loss
Derivative financial assets 99,546,069.86 96,723,164.37
Bills receivable 14,650,736,013.47 14,220,937,323.02
Accounts receivable 13,204,139,379.93 10,495,278,842.04
Financing receivables
Prepayments 910,259,648.49 590,980,171.13
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 1,434,336,096.31 1,636,778,239.70
Including: interests receivables
dividends receivables
Financial assets purchased under resale
agreements
Inventories 25,080,406,390.86 22,404,245,381.62
Contract assets 477,276,371.01 456,781,406.54
Assets held for sale 2,217,741.47 144,091,213.39
Non-current assets due within one year
Other current assets 4,821,325,942.71 5,079,878,909.67
Total current assets 97,353,874,821.27 95,059,445,211.62
Non-current assets:
Loans and advances granted
Debt investments
Available-for-sale financial assets
Other debt investments
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Held-to-maturity investments
Long-term receivables 297,211,749.56 245,791,343.37
Long-term equity investments 19,945,696,979.72 13,966,481,596.07
Investments in other equity instruments 1,384,953,324.55 1,400,316,460.34
Other non-current financial assets 297,154,021.76 327,358,825.57
Investment properties 30,275,677.92 30,879,147.42
Fixed assets 19,036,592,854.99 17,321,414,060.72
Construction in progress 4,102,243,059.68 3,873,492,230.24
Biological assets for production
Fuel assets
Right-of-use assets 2,321,431,186.89
Intangible assets 10,648,632,131.33 9,245,145,461.56
Development expenses 151,144,366.25 538,382,288.33
Goodwill 23,572,632,908.06 21,238,727,027.17
Long-term deferred expenditures 255,397,223.75 230,763,172.48
Deferred income tax assets 2,208,623,545.82 1,819,870,099.62
Other non-current assets 2,668,079,823.01 2,325,688,982.56
Total non-current assets 86,920,068,853.29 72,564,310,695.45
Total assets 184,273,943,674.56 167,623,755,907.07
Current liabilities:
Short-term borrowings 9,055,915,599.35 6,298,504,892.57
Borrowings from central bank
Placements from banks
Trading financial liabilities 62,765,149.64 218,748,280.33
Financial liabilities measured at fair
value and changes of which included in
current profit and loss
Derivative financial liabilities 43,501,550.19 35,603,754.54
Bills payable 18,461,702,634.57 19,968,443,915.65
Accounts payable 29,705,955,855.01 27,796,822,200.51
Receipts in advance 14,681,466.58
Disposal of repurchased financial assets
Absorbing deposit and deposit in
inter-bank market
Customer deposits for trading in
securities
Amounts due to issuer for securities
underwriting
Payables for staff’s remuneration 2,724,912,733.60 2,663,184,629.15
Taxes payable 2,233,732,585.46 1,843,147,094.27
Other payables 14,666,728,149.38 12,772,914,813.88
Including: interests payable
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
dividends payable
Fees and commissions payable
Reinsurance accounts payable
Contract liabilities 5,609,586,733.28 5,484,483,418.15
Liabilities held for sale 13,797,499.41 32,362,267.88
Non-current liabilities due within 9,711,065,124.20 3,015,060,105.58
one year
Other current liabilities 464,624,078.32 423,638,804.62
Total current liabilities 92,754,287,692.41 80,567,595,643.71
Non-current liabilities:
Deposits for insurance contracts
Long-term borrowings 12,259,244,217.02 15,541,466,325.22
Debentures payable 9,596,777,288.62 9,191,896,302.70
Including: preference shares
perpetual bonds
Lease liabilities 2,091,697,133.96
Long-term payable 216,828,987.86 106,763,243.99
Long-term payable for staff’s
1,069,153,829.26 934,974,735.49
remuneration
Estimated liabilities 2,813,252,681.93 2,846,762,176.35
Deferred income 609,023,725.49 643,551,987.30
Deferred income tax liabilities 1,832,730,126.06 405,343,787.76
Other non-current liabilities 97,468,826.91 1,823,866,693.93
Total non-current liabilities 30,586,176,817.11 31,494,625,252.74
Total liabilities 123,340,464,509.52 112,062,220,896.45
Owners’ equity（or shareholder’s
equity）
Paid-in capital (or share capital ) 6,368,482,759.00 6,368,416,700.00
Other equity instruments 904,334,798.56 904,485,788.71
Including: preference shares
perpetual bonds
Capital reserve 1,353,668,636.95 2,254,405,808.81
Less: treasury stock
Other comprehensive income 1,630,175,147.24 772,632,347.35
Special reserve
Surplus reserve 2,288,301,317.10 2,288,301,317.10
General risk provisions
Undistributed profits 32,336,056,398.74 26,938,892,794.96
Total equity attributable to owners
44,881,019,057.59 39,527,134,756.93
(or shareholder) of the parent company
Minority interests 16,052,460,107.45 16,034,400,253.69
Total owners’ equity (or shareholders’ 60,933,479,165.04 55,561,535,010.62
23 / 37
Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
equity)
Total liabilities and owners’ equities
184,273,943,674.56 167,623,755,907.07
(or shareholders’ equity)
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Balance Sheet of the Parent Company
30 September 2019
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items 30 September 2019 31 December 2018
Current Assets:
Monetary Capital 6,273,438,237.00 7,068,899,574.96
Trading financial assets
Financial assets measured at fair value
and changes of which included in current
profit and loss
Derivative financial assets
Bills receivable
Accounts receivable 253,995,942.79 222,622,017.43
Financing receivables
Prepayments 12,994,199.46 28,809,797.43
Other receivables 2,236,872,809.17 2,082,767,166.58
Including: interests receivable
dividends receivable
Inventories 43,452,612.14 124,773,163.23
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 977,519,031.53 109,865,313.53
Total current assets 9,798,272,832.09 9,637,737,033.16
Non-current assets:
Debt investments
Available-for-sale financial assets
Other debt investments
Held-to-maturity investments
Long-term receivables
Long-term equity investments 35,173,766,050.97 33,844,234,315.30
Other equity instruments investments 5,262,480.92 5,262,480.92
Other non-current financial assets
Investment properties
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Fixed assets 135,828,593.84 119,546,157.40
Construction in progress 38,778,876.61 37,655,076.18
Biological assets for production
Oil and gas assets
Right-of-use assets
Intangible assets 16,296,591.72 17,186,540.33
Development expenses
Goodwill
Long-term prepaid expenses 5,791,081.40 5,779,229.64
Deferred income tax assets 81,511,748.07 81,511,748.07
Other non-current assets 28,632,829.14
Total non-current assets 35,457,235,423.53 34,139,808,376.98
Total assets 45,255,508,255.62 43,777,545,410.14
Current liabilities:
Short-term borrowings 1,500,000,000.00
Trading financial liabilities
Financial liabilities measured at fair
value and changes of which included in
current profit and loss
Derivative financial liabilities
Bills payable
Accounts payable 329,194,017.09 334,747,358.40
Receipts in advance
Contract liabilities 2,617,231,872.09 2,391,211,509.89
Payables for staff’s remuneration 55,566,564.83 65,387,056.03
Taxes payable 12,909,943.06 67,279,606.39
Other payables 26,706,442,400.01 21,834,869,774.34
Including: interests payable
dividends payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 1,736,229.06 2,089,282.56
Total current liabilities 29,723,081,026.14 26,195,584,587.61
Non-current liabilities:
Long-term borrowings
Debentures payable 2,586,527,376.29 2,510,530,062.86
Including: preference shares
perpetual bonds
Leasing liabilities
Long-term payable 20,000,000.00 20,000,000.00
Long-term payable for staff’s
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
remuneration
Estimated liabilities
Deferred income 37,820,000.00 67,360,000.00
Deferred income tax liabilities 31,441,449.14 29,485,678.28
Other non-current liabilities
Total non-current liabilities 2,675,788,825.43 2,627,375,741.14
Total liabilities 32,398,869,851.57 28,822,960,328.75
Owners’ equity (or shareholders’ equity)
Paid-in capital (or share capital) 6,368,482,759.00 6,368,416,700.00
Other equity instruments 472,910,274.49 473,061,264.64
Including: preference shares
perpetual bonds
Capital reserve 4,150,363,429.02 4,182,825,672.98
Less: treasury stock
Other comprehensive income 12,245,064.39 7,791,344.47
Special reserve
Surplus reserve 1,683,155,091.65 1,683,155,091.65
Undistributed profits 169,481,785.50 2,239,335,007.65
Total owners’ equity (or shareholders’
12,856,638,404.05 14,954,585,081.39
equity)
Total liabilities and owners’ equity
45,255,508,255.62 43,777,545,410.14
(or shareholders’ equity)
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Income Statement
January-September 2019
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Third First three First three
Third quarter
quarter of quarters of quarters of
of 2019
Items 2018 2019 2018
(July-Septemb
(July-Septem (January-Sept (January-Sept
er)
ber) ember) ember)
I. Total operating revenue 49,916,316,735.30 47,739,189,253.04 148,896,109,856.46 138,227,311,459.35
Including: operating revenue 49,916,316,735.30 47,739,189,253.04 148,896,109,856.46 138,227,311,459.35
Interest income
Insurance premiums
earned
Fee and commission
income
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
II. Total cost of operations 48,373,543,771.69 46,137,567,319.73 141,321,760,011.83 130,898,654,759.16
Including: operating cost 35,409,192,783.07 33,911,506,512.21 105,584,046,741.98 97,969,456,536.24
Interest expenses
Fee and commission
expenses
Insurance withdrawal
payment
Net payment from
indemnity
Net provisions for
insurance liability
Insurance policy
dividend paid
Reinsurance cost
Taxes and surcharge 282,495,267.19 245,701,371.99 683,425,767.84 653,678,813.51
Selling expenses 8,186,738,161.90 8,010,386,549.26 22,783,073,275.91 21,533,318,294.90
Administrative expenses 2,349,642,938.22 2,137,761,829.86 6,875,429,007.45 6,171,434,088.05
R&D expenses 1,718,648,297.19 1,557,183,175.74 4,460,212,113.00 3,809,813,731.12
Financial expenses 426,826,324.12 275,027,880.67 935,573,105.65 760,953,295.34
Including: interest
462,949,083.66 304,546,395.79 1,348,633,037.94 988,211,900.04
expenses
Interest income 148,627,273.92 98,782,891.00 402,594,564.74 333,241,702.03
Add: other income 184,441,529.00 272,064,355.41 657,183,385.55 496,356,767.43
Investment income
4,231,473,916.77 459,606,206.41 4,987,525,354.22 1,327,065,195.37
(losses are represented by “-”)
Including: investment
income of associates and joint
ventures
Derecognition
income on financial assets
measured at amortized cost
Exchange gain (losses
are represented by “-”)
Gains on net exposure
hedges (losses are represented
by “-”)
Income from change in
fair value (losses are -42,821,065.32 -125,212,550.50 14,588,891.48 -88,550,629.00
represented by “-”)
Credit impairment loss
-72,795,938.53 -88,495,545.44 -35,020,333.14 -47,956,263.17
(losses are represented by “-”)
Impairment loss on
101,352.89 15,050,686.33 -257,646,552.31 -220,852,351.25
assets (losses are represented by
27 / 37
Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
“-”)
Gains on disposal of
assets (losses are represented by -26,845,448.82 113,220,554.73 -14,138,765.95 118,726,042.63
“-”)
III. Operating profit (losses are
5,816,327,309.60 2,247,855,640.25 12,926,841,824.48 8,913,445,462.20
represented by “-”)
Add: non-operating income 201,041,445.23 93,349,629.54 470,639,594.05 311,624,408.41
Less: non-operating expenses 61,764,236.63 28,647,585.13 175,970,944.55 78,052,030.82
IV. Total profit (total losses are
5,955,604,518.20 2,312,557,684.66 13,221,510,473.98 9,147,017,839.79
represented by “-”)
Less: income tax expense 918,909,482.84 282,349,549.53 1,953,829,571.45 1,249,128,996.17
V. Net profit (net losses are
5,036,695,035.36 2,030,208,135.13 11,267,680,902.53 7,897,888,843.62
represented by “-”)
(I) Classification by
continuous operation
1.Net profit from
continuous operation (net losses 1,724,566,022.73 1,794,560,157.49 7,955,551,889.90 7,662,240,865.98
are represented by “-”)
2. Net profit from
discontinuous operation (net 3,312,129,012.63 235,647,977.64 3,312,129,012.63 235,647,977.64
losses are represented by “-”)
(II) Classification by
ownership of the equity
1. Net profit attributable
to owners of the parent
2,621,991,344.79 1,373,057,256.34 7,772,860,902.81 6,161,001,081.50
company (net losses are
represented by “-”)
2. Profit or loss of
minority shareholders (net 2,414,703,690.57 657,150,878.79 3,494,819,999.72 1,736,887,762.12
losses are represented by “-”)
VI. Other comprehensive
671,163,493.94 585,583,691.47 877,244,401.03 1,013,158,337.47
income, net of tax
Other comprehensive income
attributable to owners of the 623,918,532.71 530,340,096.74 857,542,799.89 833,824,709.33
parent company, net of tax
(I) Other comprehensive
income that can not be -3,931,545.48 -8,226,800.44 -16,174,504.60 32,404,205.47
reclassified to profit or loss
1.Changes arising from
re-measurement of defined 655,808.28 -1,045,223.32 255,491.10 -7,997,491.05
benefit plans
2. Other comprehensive
income that cannot be
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
transferred into profit or loss
under equity method
3. Changes in fair value
of investments in other equity -4,587,353.76 -7,181,577.12 -16,429,995.70 40,401,696.52
instruments
4. Changes in fair value
of credit risks of the enterprise
(II) Other comprehensive
income to be reclassified into 627,850,078.19 538,566,897.18 873,717,304.49 801,420,503.86
profit or loss
1. Other comprehensive
income that can be transferred
51,040,731.98 74,779,420.86 70,870,344.63 161,496,158.75
into profit or loss under equity
method
2. Changes in fair value
of other debt investments
3. Profit or loss from
changes in fair value of
available-for-sale financial
assets
4. Reclassified financial
assets that are credited to other
comprehensive income
5. Profit or loss arising
from reclassification from
held-to-maturity investments to
available-for-sale financial
assets
6. Credit impairment
provision for other debt
investments
7. Reserve for cash flow
hedging (effective portion of
-10,608,611.29 -3,980,007.63 -36,007,555.07 42,876,348.23
profit or loss arising from cash
flow hedging)
8. Exchange differences
on translation of financial
587,417,957.50 467,767,483.95 838,854,514.93 597,047,996.88
statements denominated in
foreign currencies
9. Others
Other comprehensive income
attributable to minority 47,244,961.23 55,243,594.73 19,701,601.14 179,333,628.14
shareholders, net of tax
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Ⅶ. Total comprehensive
5,707,858,529.30 2,615,791,826.60 12,144,925,303.56 8,911,047,181.09
income
Total comprehensive income
attributable to the owners of 3,245,909,877.50 1,903,397,353.08 8,630,403,702.70 6,994,825,790.83
parent company
Total comprehensive income
attributable to the minority 2,461,948,651.80 712,394,473.52 3,514,521,600.86 1,916,221,390.26
shareholders
Ⅷ . Earnings per share:
(I) Basic earnings per share
0.412 0.225 1.221 1.010
(RMB/share)
(II) Diluted earnings per
0.353 0.225 1.131 1.010
share (RMB/share)
The party being absorbed in the business combination under common control incurred in the current
period recorded a net profit of RMB13,950,738.83 before the combination.
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Income Statement of the Parent Company
January-September 2019
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
First three First three
Third quarter Third quarter
quarters of quarters of
of 2019 of 2018
Items 2019 2018
(July-Septem (July-Septemb
(January-Sept (January-Sept
ber) er)
ember) ember)
Ⅰ. Operating revenue 903,401,779.64 792,884,921.23 2,234,271,154.27 2,417,038,949.69
Less: Operation cost 665,370,343.10 555,280,503.90 1,615,752,876.42 1,675,343,056.16
Taxes and surcharge 5,324,414.17 6,419,524.05 14,118,655.09 16,393,690.67
Selling expenses 63,131,879.39 85,400,691.99 190,089,788.56 210,441,579.93
Administrative expenses 179,457,329.72 160,040,452.74 320,496,657.73 345,344,601.02
R&D expenses 54,550,067.46 64,104,050.19 156,533,395.84 166,500,505.81
Financial expenses 11,752,125.45 45,410,592.26 111,189,066.25 107,226,850.25
Including: interest
25,477,118.45 80,070,880.63 139,021,578.60 210,180,419.77
expenses
Interest income 12,873,607.27 28,915,355.12 30,581,562.15 101,898,989.53
Add: other income 4,501,688.94 25,076,709.08 56,974,198.19 34,586,901.99
Investment income
8,374,916.12 306,404,376.82 253,943,029.70 525,924,446.67
(losses are represented by “-”)
Including: investment
income of associates and joint
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
ventures
Derecognition
income on financial assets
measured at amortized cost
Gains on net exposure
hedges (losses are represented
by “-”)
Income from change in
fair value (losses are
represented by “-”)
Credit impairment loss
-7,920.79 86,152,801.78 979,217.15 -10,058,187.90
(losses are represented by “-”)
Impairment loss on
assets (losses are represented by
“-”)
Gains on disposal of
assets (losses are represented by 25,693.17 51,118.46 25,693.17
“-”)
II. Operating profit (losses are
-63,315,695.38 293,888,686.95 138,038,277.88 446,267,519.78
represented by “-”)
Add: non-operating income 3,590,569.68 6,536,549.52 13,003,372.98 34,283,951.35
Less: non-operating expenses 1,007,999.99 58,667.36 2,971,024.42 311,781.90
III. Total Profit (total losses are
-60,733,125.69 300,366,569.11 148,070,626.44 480,239,689.23
represented by “-”)
Less: income tax expense -123,118.24 -4,749,277.12 -17,410,712.14 -8,231,021.09
IV. Net Profit (net losses are
-60,610,007.45 305,115,846.23 165,481,338.58 488,470,710.32
represented by “-”)
(I) Net profit from continuous
operation (net losses are -60,610,007.45 305,115,846.23 165,481,338.58 488,470,710.32
represented by “-”)
(II) Net profit from
discontinuous operation
(net losses are represented by
“-”)
V. Other comprehensive
5,204,966.29 39,894.27 4,453,719.92 14,706,726.13
income, net of tax
(I) Other comprehensive
income that can not be -67,243.43 39,894.27 -410,391.76
reclassified to profit or loss
1.Changes arising from
re-measurement of defined
benefit plans
2. Other comprehensive
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
income that cannot be
transferred into profit or loss
under equity method
3. Changes in fair value of
investments in other equity -67,243.43 39,894.27 -410,391.76
instruments
4. Changes in fair value of
credit risks of the enterprise
(II) Other comprehensive
income to be reclassified into 5,272,209.72 4,453,719.92 15,117,117.89
profit or loss
1. Other comprehensive
income that can be transferred
4,453,719.92 15,117,117.89
into profit or loss under equity
method
2. Changes in fair value of
other debt investments
3. Profit or loss from
changes in fair value of
available-for-sale financial
assets
4. Reclassified financial
assets that are credited to other
comprehensive income
5. Profit or loss arising
from reclassification from
held-to-maturity investments to
available-for-sale financial
assets
6. Credit impairment
provision for other debt
investments
7. Reserve for cash flow
hedging (effective portion of
profit or loss arising from cash
flow hedging)
8. Exchange differences on
translation of financial
statements denominated in
foreign currencies
9. Others
VI. Total comprehensive
-55,405,041.16 305,155,740.50 169,935,058.50 503,177,436.45
income
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per
share (RMB/share)
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Cash Flow Statement
January-September 2019
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items First three quarters of First three quarters of
2019 2018
(January-September) (January-September)
I. Cash flows from operating activities:
Cash received from the sale of goods and 147,718,346,195.03 136,441,116,163.62
rendering of services
Net increase in customer and interbank
deposits
Net increase in borrowing from PBOC
Net cash increase in borrowing from
other financial institutes
Cash received from premiums under
original insurance contract
Net cash received from reinsurance
business
Net increase in deposits of policy holders
and investment
Cash paid for interest, bank charges and
commissions
Net increase in cash borrowed
Net increase in cash received from
repurchase operation
Net cash received from customer deposits
for trading in securities
Refunds of taxes 1,048,233,743.88 963,420,315.42
Cash received from other related 1,012,063,934.60 701,885,605.50
operating activities
Sub-total of cash inflows from 149,778,643,873.51 138,106,422,084.54
operating activities
Cash paid on purchase of goods and 104,960,738,805.82 93,872,519,963.32
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
services
Net increase in loans and advances of
customers
Net increase in deposits in the PBOC and
inter-bank
Cash paid for compensation payments
under original insurance contact
Net increase in cash lent
Cash paid for interest, bank charges and
commissions
Cash paid for insurance policy dividend
Cash paid to and on behalf of employees 16,460,484,438.59 14,389,104,685.38
Cash paid for all types of taxes 6,235,299,504.77 6,417,113,647.40
Cash paid to other operation related 13,115,208,555.88 12,525,351,556.22
activities
Sub-total of cash outflows from 140,771,731,305.06 127,204,089,852.32
operating activities
Net cash flows from operating 9,006,912,568.45 10,902,332,232.22
activities
II. Cash flows from investing activities:
Cash received from disposal of
1,534,282,960.18 603,931,463.05
investments
Cash received from return on investments 457,787,685.48 284,197,818.40
Net cash received from the disposal of
fixed assets, intangible assets and other long 200,940,694.81 312,264,347.04
term assets
Net cash received from disposal of 689,985,192.70
subsidiaries and other operating entities
Cash received from other investment
279,515,688.66 95,500,810.35
related activities
Sub-total of cash inflows from
2,472,527,029.13 1,985,879,631.54
investing activities
Cash paid on purchase of fixed assets,
4,579,987,246.71 4,448,216,757.39
intangible assets and other long term assets
Cash paid for investments 3,646,257,901.57 6,715,502,945.49
Net increase in secured loans
Net cash paid on acquisition of
2,641,246,363.38 2,083,893,029.63
subsidiaries and other operating entities
Cash paid on other investment related
1,167,045,427.42 22,762,249.49
activities
Sub-total of cash outflows from
12,034,536,939.08 13,270,374,982.00
investing activities
Net cash flows from investing -9,562,009,909.95 -11,284,495,350.46
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
activities
III. Cash flows from financing activities:
Cash received from investment 14,318,688.54 692,072,695.51
Including: cash received by subsidiaries
from minority shareholders’ investment
Cash received from borrowings 12,084,841,424.81 12,010,235,777.28
Cash received from other financing
7,139,182.47 1,914,860.72
related activities
Sub-total of cash inflows from
12,106,299,295.82 12,704,223,333.51
financing activities
Cash paid on repayment of borrowings 9,252,731,650.03 10,654,594,243.09
Cash paid on distribution of dividends,
3,074,473,283.20 2,762,302,769.13
profits, or interest expenses
Including: dividend, profit paid to
minority shareholders by subsidiaries
Cash paid on other financing related
1,020,361,634.10 659,367,060.70
activities
Sub-total of cash outflows from
13,347,566,567.33 14,076,264,072.92
financing activities
Net cash flows from financing
-1,241,267,271.51 -1,372,040,739.41
activities
IV. Effect of fluctuations in exchange
585,698,697.12 372,251,814.37
rates on cash and cash equivalents
V. Net increase in cash and cash
-1,210,665,915.89 -1,381,952,043.28
equivalents
Add: balance of cash and cash
36,044,777,414.04 35,094,902,336.87
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents
34,834,111,498.15 33,712,950,293.59
at the end of the period
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Cash Flow Statement of the Parent Company
January-September 2019
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items First three quarters of Amount in the first three
2019 quarters of 2018
(January-September) (January-September)
I. Cash flows from operating activities:
Cash received from the sale of goods and
1,219,703,551.51 1,318,190,025.50
rendering of services
Refunds of taxes 31,329,360.51 95,543,006.48
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Cash received from other related
182,304,374.25 173,528,179.29
operating activities
Sub-total of cash inflows from
1,433,337,286.27 1,587,261,211.27
operating activities
Cash paid on purchase of goods and
57,147,717.08 458,713,553.43
services
Cash paid to and on behalf of employees 701,565,276.87 647,354,793.69
Cash paid for all types of taxes 116,443,799.11 139,250,644.36
Cash paid to other operation related
456,381,806.73 374,617,434.69
activities
Sub-total of cash outflows from
1,331,538,599.79 1,619,936,426.17
operating activities
Net cash flows from operating activities 101,798,686.48 -32,675,214.90
II. Cash flows from investing activities:
Cash received from disposal of
505,207,895.00
investments
Cash received from return on investments 1,513,456,657.45 1,153,009,979.01
Net cash received from the disposal of
fixed assets, intangible assets and other long
term assets
Net cash received from disposal of
subsidiaries and other operating entities
Cash received from other investment
1,431,977,000.00
related activities
Sub-total of cash inflows from
2,945,433,657.45 1,658,217,874.01
investing activities
Cash paid on purchase of fixed assets,
30,442,256.39 46,367,088.81
intangible assets and other long term assets
Cash paid for investments 3,521,662,503.09 73,572,235.00
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment related
246,801,379.00
activities
Sub-total of cash outflows from
3,798,906,138.48 119,939,323.81
investing activities
Net cash flows from investing
-853,472,481.03 1,538,278,550.20
activities
III. Cash flows from financing activities:
Cash received from investment
Cash received from borrowings 1,500,000,000.00
Cash received from issuing bonds 424,802,503.30
Cash received from other financing
3,728,909,076.12
related activities
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Third Quarterly Report of 2019
Haier Smart Home Co., Ltd.
Sub-total of cash inflows from
3,728,909,076.12 1,924,802,503.30
financing activities
Cash paid on repayment of borrowings 1,500,000,000.00
Cash paid on distribution of dividends,
2,262,440,498.23 2,106,817,045.14
profits, or interest expenses
Cash paid on other financing related
8,419,159.30
activities
Sub-total of cash outflows from
3,770,859,657.53 2,106,817,045.14
financing activities
Net cash flows from financing
-41,950,581.41 -182,014,541.84
activities
IV. Effect of fluctuations in exchange
-1,836,962.00 2,417.25
rates on cash and cash equivalents
V. Net increase in cash and cash
-795,461,337.96 1,323,591,210.71
equivalents
Add: balance of cash and cash equivalents
7,068,899,574.96 2,070,527,802.97
at the beginning of the period
VI. Balance of cash and cash equivalents
6,273,438,237.00 3,394,119,013.68
at the end of the period
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
4.2 Status in relation to adjustments to the first implementation of relevant items in financial statements
at the beginning of the year for implementation of New Financial Instruments Standard, New
Income Standards and New Lease Standards for the first time
□Applicable √Not Applicable
4.3 Explanation on retroactive adjustments of previously comparative data for implementation of New
Financial Instruments Standards and New Lease Standards for the first time
□Applicable √Not Applicable
4.4 Audit Report
□Applicable √Not Applicable
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