Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Stock Code: 600690 Short Name: Qingdao Haier
Qingdao Haier Co., Ltd
Third Quarterly Report of 2018
Haier Smart Home
Customized for a Better Life
Note: This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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Third Quarterly Report of 2018
Qingdao Haier 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 2018
Qingdao Haier Co., Ltd
I. Important Notice
1.1 The Board of Directors, the Board of Supervisors and directors, supervisors and
senior management of Qingdao Haier 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 Information on absent director from meeting
Name of director absent Position of director Reason for the absence Name of proxy
from meeting absent from meeting of director from
meeting
Tan Lixia Director Business trip Wu Changqi
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
As at the end of last year Increase/decrea
se as at the end
of the reporting
As at the end of the
Period
reporting period After adjustment Before adjustment
compared with
the end of last
year(%)
Total assets 167,626,386,705.18 157,096,764,347.93 151,463,110,707.63 6.70
Net assets
35,675,893,674.02 33,299,500,785.12 32,215,515,201.45 7.14
attributable to
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
shareholders of
the listed
Company
Increase/decrea
From the beginning se compared
From the beginning of last year to the end
of the year to the with the
of the reporting period of last year (January
end of the reporting corresponding
to September)
period (January to period of last
September) year (%)
After adjustment Before adjustment
Net cash flows
from operating 11,049,179,807.06 14,538,013,259.52 14,160,052,998.94 -24.00
activities
Increase/decrea
From the beginning se compared
From the beginning of last year to the end
of the year to the with the
of the reporting period of last year (January
end of the reporting corresponding
to September)
period (January to period of last
September) year（%）
After adjustment Before adjustment
Operating
138,138,774,411.21 122,494,143,062.55 119,189,613,634.20 12.77
revenue
Net profit
attributable to
shareholders of 6,126,787,121.21 5,602,801,883.86 5,682,361,717.64 9.35
the listed
Company
Net profit after
deduction of
non-recurring
profit or loss
5,522,473,377.30 4,695,336,406.07 4,695,336,406.07 17.62
attributable to
shareholders of
the listed
Company
Weighted decreased by
average return on 1.51
17.42 18.93 19.51
net assets（%） percentage
points
Basic earnings
per share (RMB 1.005 0.919 0.932 9.36
per share)
Diluted earnings
per share (RMB 0.987 0.919 0.932 7.40
per share)
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Note:
In 2018, the Company focused on the strategic goal of “becoming a leading provider of
smart home solutions in the era of Internet of Things”. Driven by the Individual and Goal
Combination model, and leveraging on world-class brands cluster and globalized structure,
the Company continually promoted retail transformation and global operation, and
maintained product leadership, channel deepening and marketing optimization, so as to
strengthen the leading advantages in the industry. Facing the opportunities in the era of
Internet of Things, the Company will develop new growth points such as ecological income
by establishing ecological circles, building up eco-brands, promoting mass customization
and iterating the best users experience based on interaction within various communities
through U+ smart life platform, COSMOPlat Smart Manufacturing Industrial Internet
Platform and large Shunguang online and offline community interaction platform.
(1) Domestic market: the Company made great efforts in deepening the establishment of
the operating system with retail business as the core, implementing the transformation of
“from the sale of products to the sale of solutions, from launching to fermentation, from
outlets to contact points, from price to value”, and improving structure of product portfolio
and structure of brands to achieve growth under unfavorable environment. As to
performance of each segment, in the first three quarters, revenue from refrigerator business,
washing machine business, air-conditioner business, water heater business and kitchen
appliance business increased by 15.9%, 16.2%, 15.7%, 14.5% and 18.9%, respectively. ①
During the reporting period, the Company’s market share across the product portfolio has
been increasing. According to the statistics from CMM, the retail sales of Haier
refrigerators, washing machines, air conditioners, water heaters, hoods and stoves increased
by 4.03,3.87,0.49,1.27,0.67,1.07 percentage points respectively from January to September
2018 as compared with the same period of last year. Retail sales of refrigerators and
washing machines maintained the leading position in the industry and the leading edge
continued to grow, with the share of retails sales reaching 35.17% and 33.33%, respectively,
which was 3.13 and 1.87 times of that of the runner-up brand. ② Despite the increasing
downward pressure in the industry in the third quarter, the high-end brand Casarte
continued to maintain its high growth, with the revenue increasing by 49% during the first
three quarters. Products under Casarte maintained an overwhelming advantage in the
high-end market. For example, under this brand, the market share of refrigerators priced
above RMB10,000 reached 36%; the market share of drum washing machines priced above
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
RMB10,000 reached 77%; the market share of air conditioners priced above RMB16,000
reached 42.7%.
(2) Overseas markets: focusing on localized branding and leadership, continuing to push
ahead with the “triple strategy” for manufacturing, marketing and R&D, strengthening
competitiveness in end-user market, and achieving the transformation to high-end brands.
① In the first three quarters of 2018, the Company maintained rapid growth in the North
American market, with revenue denominated in US dollar growing by 11.83%, while the
accumulated growth of home appliance industry in the U.S. was flat in the first three
quarters. ②Each region focuses on high-end brand building, while enhancing
competitiveness in brands, products and marketing, with the aim of promoting the steady
growth of business. The South Asian market recorded a growth in revenue of 24%, the
European market recorded a growth in revenue of 21%, the Latin American market
recorded a growth in revenue of 55%, and the Japanese market recorded a growth in
revenue of 10%. ③ In the third quarter of 2018, the Company completed the acquisition of
the home appliance assets and business of Fisher & Paykel in New Zealand, thus achieving
leading market position in Oceania: the dual brands of Fisher & Paykel and Haier ranked
No.2 in terms of market share in Australia, and ranked No.1 in terms of that in New
Zealand, representing a ratio of over 40%; as to brand, on top of Haier, Casarte, AQUA,
GE Appliance and Leader, the Company acquired Fisher & Paykel, the world’s top
high-end home appliance brand, and continues to expand its portfolio of global brands;
Revenue of Fisher& Paykel (dominated in New Zealand Dollar) increased by 7% in the
first three quarters of 2018, and 12% in the third quarter. In September 2018, the Company
announced its intention to acquire 100% equity interests in Candy S.p.A, an Italian
company. The transaction was intended to strengthen the expansion in the European market,
improve the product portfolio and the network of local brands, while consolidating the
coverage of different customer groups, and further enhancing the position in the European
market. Upon the completion of the acquisition, the market share of the Company in
Europe will leap to top 5.
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
(3) The Company has been committed to creating a smart home community in the era of
Internet of Things to create an ecological platform. ① Strengthening the experience of the
4+7+N smart home solutions (note), iteratively integrating online and offline delivery
system, while creating a global interconnecting platform, and continuing to upgrade the
application in AI artificial intelligence scenarios. From January to September 2018, the
amount of activation of the Company’s smart home appliances increased by 85% YoY, the
sales of the comprehensive household appliance solutions increased by 134% YoY, and the
number of smart home users increased by 23% YoY. The revenue from its IoT ecological
systems amounted to RMB2.095 billion, representing a year-on-year growth of over 200%.
In terms of the creation of ecological circle, based on the life scenes of users, Haier’s
Internet of Clothing offer Internet of Things solutions for the whole life-cycle covering
washing, care, storage, dressing and purchase, while integrating ecological cooperation
resources of clothing associations and home textile associations, quickly gathering clothing
resources and rapidly copying the innovative model factories, stores and homes; it also
played a leading role in drafting the world’s first IEEE international standard for the
Internet of Clothing; the platform has gathered over 2,400 clothing resources, and the
Internet of Clothing achieved an YoY increase of 10 times in ecological revenue in the first
three quarters of 2018. Building on the leading position in terms of market share, the
Internet of Food provided users with Internet of Things health solutions in smart kitchen
scenes by way of integrating safe ingredients, health resources and intelligent hardware
resources; the international standards for the Internet of Food, which were submitted to the
IEEE, have been approved for further development, and technologies for the Internet of
Food will enter the stage of developing international standards. ② Continue to promote the
construction of the industrial Internet platform of COSMOPlat, and implement the model of
mass customization, with participation of users throughout the process. IEEE, ISO, and IEC,
three major international standards-developing bodies, designated the Company to lead the
development of international standards for the model of mass customization and industrial
Internet platforms. From January to September 2018, COSMOPlat recorded a revenue of
RMB4.7 billion.
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Qingdao Haier Co., Ltd
(4) On 24 October 2018 (Frankfurt time), the Company engaged the initial public offering
of shares on the D share market of China Europe International Exchange, and passed the
admittance of and obtained permission to list on Frankfurt Stock Exchange. The listing
structured the Company’s “A+D” capital market platform home and abroad, and is going to
enhance the Company’s brand presence worldwide, as well as support the landing and
further development of the Company’s global business, especially the business in Europe.
Note: Among the word “ 4+7+N smart home solutions”, “4” refers to the four physical
spaces that Haier continues to upgrade iteratively, namely smart living room, smart kitchen,
smart bathroom and smart bedroom; “7” refers to seven comprehensive household
appliance solutions, i.e. household ventilation, household water usage, household washing
& cleaning, household security, household voice appliance, household health and
household information; while “N” is a variable, which represents that the user is able to
customize smart living scenarios in accordance with their life style, achieving infinite
diversified possibilities.
Non-recurring Profit or Loss Items and Amount
√Applicable □Not Applicable
Unit and Currency: RMB
Amount from the
Amount for the current beginning of the year to
Items period the end of the reporting
(July-September) period
(January-September)
Profit or loss from disposal of non-current assets 250,930,248.51 274,865,109.14
Government grants included in current profit or
loss, except those closely related to the normal
operating business, complying with requirements
212,838,368.85 349,985,867.61
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 under common
29,734,856.98 -43,718,860.91
control from the beginning of the period to the
date of the mergers
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Profit and loss of changes in fair value arising
from holding of trading financial assets and
trading financial liabilities except for valid
straddle business relevant to normal business of
-160,450,980.50 32,809,620.71
the company, as well as investment gain realized
from disposal of trading financial assets, trading
financial liabilities and financial assets available
for sale
Trustee fee income from entrusted operations 943,396.22
Other non-operating income and expenses except
64,170,893.06 234,036,255.74
for the above mentioned
Effect of minority equity interests, net of tax -34,696,702.01 -126,558,657.97
Income tax effect -67,563,187.24 -118,048,986.63
Total 294,963,497.65 604,313,743.91
2.2 Total number of shareholders, top 10 shareholders and top 10 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 175,161
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 Num shareholder
(%) Status
period restriction ber
s
Haier Electric Domestic
Appliances 1,258,684,824 20.64 Nil non-state-own
International Co., Ltd. ed legal entity
Domestic
Haier Group
1,072,610,764 17.59 Nil non-state-own
Corporation
ed legal entity
Hong Kong Securities
444,311,732 7.29 Unknown Unknown
Clearing Co., Ltd.
GIC PRIVATE Foreign legal
269,673,927 4.42 Unknown
LIMITED entity
China Securities
Finance Corporation 182,312,697 2.99 Unknown Unknown
Limited
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Qingdao Haier
Venture &
Domestic
Investment
172,252,560 2.83 Nil non-state-own
Information Co.,
ed legal entity
Ltd.(青岛海尔创业
投资咨询有限公司)
KKR HOME
Foreign legal
INVESTMENT S.A 161,116,436 2.64 Unknown
entity
R.L.
National social
security fund, 101,188,812 1.66 Unknown Unknown
Portfolio 104
Central Huijin Asset
69,539,900 1.14 Unknown Unknown
Management Ltd.
National social
security fund, 60,604,872 0.99 Unknown Unknown
Portfolio 103
Shareholdings of top ten shareholders without selling restrictions
Number of Class and number of shares
tradable shares
Name of shareholder
held without Class Number
selling restrictions
Haier Electric Appliances International
1,258,684,824 RMB ordinary 1,258,684,824
Co., Ltd.
Haier Group Corporation 1,072,610,764 RMB ordinary 1,072,610,764
Hong Kong Securities Clearing Co., Ltd. 444,311,732 RMB ordinary 444,311,732
GIC PRIVATE LIMITED 269,673,927 RMB ordinary 269,673,927
China Securities Finance Corporation
182,312,697 RMB ordinary 182,312,697
Limited
Qingdao Haier Venture & Investment
Information Co., Ltd.(青岛海尔创业投资 172,252,560 RMB ordinary 172,252,560
咨询有限公司)
KKR HOME INVESTMENT S.A R.L. 161,116,436 RMB ordinary 161,116,436
National social security fund, Portfolio
101,188,812 RMB ordinary 101,188,812
104
Central Huijin Asset Management Ltd. 69,539,900 RMB ordinary 69,539,900
National social security fund, Portfolio
60,604,872 RMB ordinary 60,604,872
103
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
（1）Both Haier Electric Appliances International
Co., Ltd. and Qingdao Haier Venture &
Investment Information Co., Ltd.(青岛海尔创业
Related parties or parties acting in concert among
投资咨询有限公司) are holding subsidiaries of
the aforesaid shareholders
Haier Group Corporation;
(2) The Company is not aware of the existence of
any connections of other shareholders.
Explanation of preferential shareholders with
N/A
restoration of voting rights and their shareholdings
2.3 Total number of preferential shareholders, top ten preferential shareholders and top
ten holders of preference shares not subject to selling restrictions as of 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
1) Derivative financial assets increased by 66.80% as compared with the beginning of the
year, which was mainly due to the impact of changes in fair value of derivative
financial instruments such as foreign exchange contracts during the period;
2) Assets held for sale increased by 4,530.91% as compared with the beginning of the
year, which was mainly due to Haier Electronics, a subsidiary of the Company listed in
Hong Kong, plans to dispose 58.08% of the equity interests of Shengfeng Logistics
Group Co., Ltd. (herein after referred to as “Shengfeng Logistics”) for business
planning considerations;
3) Other current assets increased by 31.12% as compared with the beginning of the year,
which was mainly due to the increase in the wealth management of Haier Electronics, a
subsidiary of the Company;
4) Construction in progress increased by 116.50% as compared with the beginning of the
year, which was mainly due to the Company expanded its industrial lines’ production
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Qingdao Haier Co., Ltd
capacity and upgraded its industrial lines such as smart kitchens and air conditioners
during the period;
5) Development expenses decreased by 49.40% as compared with the beginning of the
year, which was mainly due to the relevant development transferred to the intangible
assets when it reached the scheduled usable status during the period;
6) Other non-current assets increased by 72.00% as compared with the beginning of the
year, which was mainly due to the amounts prepaid for equipment procurement as a
result of the Company expanded its industrial lines’ production capacity and upgraded
its industrial lines such as smart kitchens and air conditioners during the period;
7) Derivative financial liabilities increased by 4,503.98% as compared with the beginning
of the year, which was mainly due to the impact of changes in fair value of derivative
financial instruments such as foreign exchange contracts during the period;
8) Advances from customers decreased by 36.90% as compared with the beginning of the
year, which was mainly due to the centralized delivery taking of goods by customers;
9) Liabilities held for sale increased by 100% as compared with the beginning of the year,
which was mainly due to the Company plans to dispose 58.08% of the equity interests
of Shengfeng Logistics for business planning considerations;
10) Non-current liabilities due within one year decreased by 54.21% as compared with the
beginning of the year, which was mainly due to the repayment of long-term liabilities
due within one year;
11) Deferred revenue increased by 30.83% as compared with the beginning of the year,
which was mainly due to the increase in asset-related government grants during the
year;
12) Other non-current liabilities increased by 31.80% as compared with the beginning of
the year, which was mainly due to the increase in repurchase obligations for minority
equity interests;
13) Capital reserve decreased by 64.31% as compared with the beginning of the year,
which was mainly due to the acquisition at a premium of Enterprise combinations
under common control is partially written down to the capital reserve;
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Qingdao Haier Co., Ltd
14) Other comprehensive income increased by 19,756.96% as compared with the
beginning of the year, which was mainly due to the increase in the share of other
comprehensive income that will be reclassified into profit or loss and the change in
foreign currency translation differences;
15) The financial expenses decreased by 33.66% as compared with the corresponding
period of last year, which was mainly due to the decrease in exchange losses during the
period as compared with the corresponding period of last year;
16) Investment income increased by 36.21% as compared with the corresponding period of
last year, which was mainly due to the increase in investment income from disposal of
long-term equity investments and derivative financial assets;
17) The income from changes in fair value decreased by 116.83% as compared with the
corresponding period of last year, which was mainly due to the influence of change in
fair value of derivative financial instruments such as forward exchange;
18) The profit or loss from asset disposal increased by 690.35% as compared with the
corresponding period of last year, which was mainly due to the disposal of assets
during the period;
19) Non-operating income decreased by 35.70% as compared with the corresponding
period of last year, which was mainly due to the decrease in non-operating income of
GEA, a subsidiary of the Company;
20) Non-operating expenses decreased by 37.84% as compared with the corresponding
period of last year, which was mainly due to the scrapping of some fixed assets in the
corresponding period of last year and fewer occurrences for the period.
21) Other comprehensive income, net of tax increased by 409.45% as compared with the
corresponding period of last year, which was mainly due to the increase in the share of
other comprehensive income that will be reclassified into profit or loss and the change
in foreign currency translation differences;
22) Net cash flows from investing activities decreased by 140.16% as compared with the
corresponding period of last year, which was mainly due to the acquisition of assets of
FPA for the period and the increase in expenses on wealth management.
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Qingdao Haier Co., Ltd
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 RMB22.089 billion in
total, representing 61.9% of the net assets of the Company for the latest period, and 13.2%
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$3.54 billion
in total.
（3）Entrusted Wealth Management：As of the end of the reporting period, the balance of
the company's entrusted wealth management amounted to RMB4.65 billion , which is all
conducted by Haier Electronics Group Co., Ltd. (hereinafter referred to as "Haier
Electronics", stock code: 01169.HK) ,an holding subsidiary of the Company, Haier
Electronics, as an company listed in Hong Kong and operating independently, purchased
some short-term guaranteed wealth management products and structured deposits from
large commercial banks according to its management authority and on the premise of
securing the safety of funds, with an aim to improve the utilizing efficiency of idle funds.
In the process of conducting the purchases, all necessary procedures such as reporting to
the board and review of each transaction by the management have been fulfilled in
accordance with the laws and regulations in respect of listed companies in Hong Kong, so
as to increase the return of the shareholders on condition that the capital required for the
daily operation of the main business is adequate.
（4）Progress on the Acquisition of Major Asset：the Board meeting and General meeting
of the Company has reviewed and passed the “Proposal of Qingdao Haier Co., Ltd. on
Acceptance of the Transfer of 100% equity interests of Haier New Zealand Investment
Holding Company Limited and the Related Transactions” (《青岛海尔股份有限公司关于
受让Haier New Zealand Investment Holding Company Limited 之100%股权暨关联交易
的议案》) in April and June 2018, respectively. The Company intends to settle the
acceptance of the transfer of 100% equity interests of aforementioned company held by
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Haier Group Corporation through an overseas subsidiary in cash payment. As of the end of
the reporting period, the transaction has been completed and the Company completed the
consolidation of the aforementioned company.
（5）Progress on the issuance of CB by the Company: As of the end of the reporting
period, the application of public offer of Convertible Bonds ( “CB” ) by the Company has
been approved by the the Issuance Examination Commission of CSRC.
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
3.3 The undertakings that have been past due and not been performed during the reporting period
□Applicable √Not applicable
During the reporting period, the Company has no undertakings that have past due but not performed.
The undertakings made by the actual controlling shareholders, shareholders, related parties, purchasers, the Company and others
underlying parties during or up to the reporting period are as follows:
Whether it
Whether is
it has a performed
Time and
Background Type Covenanter Content term for in a
term
performa Timely
nce and strict
manner
During the period from September 2006 to May 2007, the Company issued shares to
Haier Group Corporation (“Haier Group”) to purchase the controlling equity in its four
subsidiaries, namely Qingdao Haier Air-Conditioner Electronics Co., Ltd. ( 青岛海尔
空调电子有限公司), Hefei Haier Air-conditioning Co., Limited (合肥海尔空调器有
Elimin
限公司), Wuhan Haier Electronics Co., Ltd. ( 武汉海尔电器股份有限公司 ),
Undertakin ate the
Guizhou Haier Electronics Co., Ltd. (贵州海尔电器有限公司). With regard to the
g related to propert 27
Haier land and property required in the operation of Qingdao Haier Air-Conditioner
significant y right Septembe
Group Electronics Co., Ltd. (青岛海尔空调电子有限公司) , Hefei Haier Air-conditioning YES YES
assets defects r 2006,
Corporation Co., Limited (合肥海尔空调器有限公司), Wuhan Haier Electronics Co., Ltd. (武汉
reorganizati in land long term
海尔电器股份有限公司) (the “Covenantees”), Haier Group made an undertaking (the
on and
“2006 Undertaking”). According to the content of 2006 Undertaking and current
etc.
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.
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Haier Group Corporation undertakes that it will assure Qingdao Haier and its
subsidiaries of the constant, stable and unobstructed use of the leased property. In the
event that Qingdao Haier 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 operation before the occurrence of loss. Upon the expiration of
relevant leasing period, Haier Group Corporation will grant or take practicable
Elimin measures to assure Qingdao Haier and its subsidiaries of priority to continue to lease
ate the the property at a price not higher than the rent in comparable market at that time. Haier
propert Group Corporation will assure Qingdao Haier and its subsidiaries of the constant, 24
Haier
y right stable, free and unobstructed use of self-built property and land of the Group. In the Decembe
Group YES YES
Undertakin defects event that Qingdao Haier or any of its subsidiaries fails to continue to use self-built r 2013,
Corporation
g related to in land property according to its own will or in original way due to the fact that self-built long term
refinancing and property has no relevant ownership certificate, Haier Group Corporation will take all
etc. reasonable and practicable measures to eliminate obstruction and impact, or will
support Qingdao Haier 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 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.
Elimin Qingdao The Company undertakes that it will eliminate the property defects of the Company 24
ate the Haier Co., and main subsidiaries within five years with reasonable business effort since 24 Decembe YES YES
propert Ltd. December 2013, so as to achieve the legality and compliance of the Company and r 2013,
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
y right main subsidiaries in terms of land and property. For details, please refer to the five years
defects Announcement of Qingdao Haier Co., Ltd. on the Formation, Current Situation of the
in land Defective Property, the Influence on Operation of Issuer Caused by Uncertainty of
and Ownership, Solution for the Defect and Guarantee Measures (L2014-005) published by
etc. the Company on the four major securities newspapers and the website of Shanghai
Stock Exchange on 29 March 2014.
Inject the underlying assets of Haier Photoelectric to the Company or dispose such
assets through other ways according to the requirements of the domestic supervision
Asset Haier Decembe
before June 2020. For details, please refer to the Announcement of Qingdao Haier Co.,
injectio Group r2015-Ju YES YES
Ltd. on the Changes of Funding Commitment of Haier Group Corporation (L
n Corporation ne 2020
2015-063) published by the Company on the four major securities newspapers and the
website of Shanghai Stock Exchange on 23 December 2015.
In December 2015 and January 2016, the Board Meeting and General Meeting of the
Other
Company considered and passed the matters in relation to the acquisition of minority
undertaking
equity interest of Mitsubishi Heavy Industries Haier and Carrier Refrigeration
s made to
Equipment held by Haier Group. The Company signed the Profit Compensation
the medium Profit
Agreement with Haier Group to forecast the profits to be achieved by the Decembe
and forecas Haier
aforementioned two companies in 2015 - 2018. If the profits are not reached during the r 2015-
minority t and Group YES YES
commitment period, the difference part will be made up to the Company by Haier Decembe
shareholder compe Corporation
Group in cash. For details, please refer to Announcement of Qingdao Haier Co., Ltd. r 2018
s nsation
On the Acquisition of Equity in Sino-foreign Joint Venture Held by Haier Group
Corporation and Related Transactions (L 2015-062) published by the Company on the
four major securities newspapers and the website of Shanghai Stock Exchange on 23
December 2015.
Haier In order to prevent and control the Company's fund risks in an effective and timely 30 March
Others Group manner and ensure the security of the Company's funds, Haier Group hereby (on 2018, YES YES
Corporation behalf of itself and other companies held by it or under its actual control) made the long term
18 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Undertaking of the Haier Group Corporation on the Funds Security of Qingdao Haier
Co., Ltd.(《海尔集团公司关于青岛海尔股份有限公司资金安全的承诺》) , pursuant
to which it made undertakings on not occupying Qingdao Haier's funds in disguised
form and to secure Qingdao Haier's Funds in Financial Companies, etc. For details,
please refer to the Announcement of Qingdao Haier Co., Ltd. on the Undertakings
Made by the Actual Controlling Shareholders (L 2018-059) published by the Company
on the four major securities newspapers and the website of Shanghai Stock Exchange
on 9 October, 2018.
19 / 37
Third Quarterly Report of 2018
Qingdao Haier 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 Qingdao Haier Co., Ltd.
Legal representative Liang Haishan
Date 30 October 2018
20 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
IV．Appendix
4.1 Financial Statements
Consolidated Balance Sheet
30 September 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Items Closing balance Opening balance
Current Assets:
Monetary Capital 35,027,149,528.56 35,825,439,039.22
Clearing settlement funds
Lendings to banks and other financial
institutions
Financial assets measured at fair value
and changes of which included in current
profit and loss
Derivative financial assets 34,498,028.36 20,681,695.50
Bills receivables and accounts receivables 31,884,581,587.90 25,924,283,460.99
Including: Bills receivables 14,414,860,888.22 13,033,083,520.99
Accounts receivables 17,469,720,699.68 12,891,199,940.00
Prepayments 671,779,770.85 628,892,321.35
Premiums receivables
Reinsurance accounts receivables
Reinsurance contract reserves
receivables
Other receivables 1,481,075,961.81 1,189,441,303.79
Including: Interests receivables 307,997,032.28 203,637,543.83
Dividends receivables 4,656,550.08 4,524,472.84
Financial assets purchased under resale
agreements
Inventories 20,868,860,503.22 22,537,617,217.87
Assets held for sale 1,271,367,067.25 27,453,950.07
Non-current assets due within one year
Other current assets 5,803,001,328.88 4,425,579,572.68
Total current assets 97,042,313,776.83 90,579,388,561.47
Non-current assets:
Loans and advances granted
Available-for-sale financial assets 1,585,956,478.46 1,415,354,307.82
Held-to-maturity investments
Long-term receivables 248,984,502.12 289,785,899.38
21 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Long-term equity investments 13,466,290,180.03 12,987,255,645.28
Investment properties 31,308,410.93 31,214,015.99
Fixed assets 16,875,066,174.37 17,202,199,462.03
Construction in progress 3,486,907,261.37 1,610,615,034.68
Biological assets for production
Fuel assets
Intangible assets 8,966,361,405.65 8,226,559,783.38
Development expenses 488,831,497.42 966,051,333.81
Goodwill 21,197,596,096.81 20,344,616,586.99
Long-term deferred expenditures 196,158,024.26 177,755,371.21
Deferred income tax assets 1,883,601,023.69 2,011,904,164.13
Other non-current assets 2,157,011,873.24 1,254,064,181.76
Total non-current assets 70,584,072,928.35 66,517,375,786.46
Total assets 167,626,386,705.18 157,096,764,347.93
Current liabilities:
Short-term borrowings 12,972,750,597.68 10,878,580,275.18
Borrowings from central bank
Customer deposits and deposits from
banks
Placements from banks and other
financial institutions
Financial liabilities measured at fair value
and changes of which included in current
profit and loss
Derivative financial liabilities 116,230,558.04 2,524,569.45
Bills payable and accounts payable 48,275,805,549.41 42,616,065,864.06
Advances from customers 3,698,644,561.45 5,861,949,182.62
Disposal of repurchased financial assets
Handling charges and commissions
payable
Payable for staff’s remuneration 2,166,113,420.11 2,480,636,328.53
Taxes payable 2,030,887,215.81 1,970,178,186.86
Other payable 13,386,539,684.86 11,309,575,306.21
Including: Interests payable 185,682,002.49 235,683,220.62
Dividends payable 157,746,605.36 153,756,315.64
Reinsurance accounts payable
Deposits for insurance contracts
Consumer deposits for trading in
securities
Amounts due to issuer for securities
underwriting
Liabilities held for sale 298,842,777.47
Non-current liabilities due within one 2,815,877,532.96 6,149,302,981.65
22 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
year
Other current liabilities 40,146,934.19 42,961,121.03
Total current liabilities 85,801,838,831.98 81,311,773,815.59
Non-current liabilities:
Long-term borrowings 16,905,702,296.03 16,036,492,809.81
Debentures payable 6,667,990,382.62 6,211,088,362.68
Including: preference shares
Perpetual bonds
Long-term payable 105,158,826.26 106,020,029.74
Long-term payable for staff’s
remuneration
Estimated liabilities 2,983,559,606.43 2,660,788,654.43
Deferred income 650,407,021.26 497,141,088.72
Deferred income tax liabilities 215,966,425.02 279,114,620.35
Other non-current liabilities 2,830,963,168.26 2,147,990,857.13
Total non-current liabilities 30,359,747,725.88 27,938,636,422.86
Total liabilities 116,161,586,557.86 109,250,410,238.45
Owners’ equity (or shareholders’ equity)
Pain-in capital (or share capital) 6,097,402,727.00 6,097,402,727.00
Other equity instruments 431,424,524.07 431,424,524.07
Including: preference shares
Perpetual bonds
Capital reserve 826,883,093.84 2,316,873,282.11
Less: Treasury stock
Other comprehensive income 878,476,844.82 4,424,024.90
Special reserve
Surplus reserve 2,005,685,056.77 2,103,057,782.41
General risk provisions
Undistributed profits 25,436,021,427.52 22,346,318,444.63
Total equity attributable to owners of the
35,675,893,674.02 33,299,500,785.12
Parent company
Minority equity interests 15,788,906,473.30 14,546,853,324.36
Total owners’ equity (or shareholders’
51,464,800,147.32 47,846,354,109.48
equity)
Total liabilities and owners’ equities
167,626,386,705.18 157,096,764,347.93
(or shareholders’ equity)
Legal representative: Liang Haishan Chief accountant: Gong Wei
Person in charge of accounting department: Ying Ke
23 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Balance Sheet of the Parent Company
30 September 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Items Closing balance Opening balance
Current Assets:
Monetary Capital 3,394,119,013.68 2,070,527,802.97
Financial assets measured at fair value
and changes of which included in current
profit and loss
Derivative financial assets
Bill receivables and accounts receivables 200,958,629.82 288,499,726.07
Including：Bill receivables
Accounts receivables 200,958,629.82 288,499,726.07
Prepayments 23,687,108.51 20,000,000.00
Other receivables 487,464,928.84 1,206,903,377.12
Including：Interests receivables 6,870,477.10 220,157,282.75
Dividends receivables 18,251,296.42 970,851,045.94
Inventories 72,610,924.73 89,650,514.91
Assets held for sale
Non-current assets due within one year
Other current assets 191,709,409.46 87,165,597.70
Total current assets 4,370,550,015.04 3,762,747,018.77
Non-current assets:
Available-for-sale financial assets 5,335,773.96 5,818,587.80
Held-to-maturity investments
Long-term receivables 8,600,000,000.00
Long-term equity investments 32,390,142,090.54 23,581,254,928.08
Investment properties
Fixed assets 118,008,248.28 118,553,830.32
Construction in progress 38,553,097.58 13,594,976.50
Biological assets for production
Fuel assets
Intangible assets 7,147,254.17 14,601,582.38
Development expenses
Goodwill
Long-term deferred expenditures 5,166,162.66
Deferred income tax assets 106,347,777.99 106,347,777.99
Other non-current assets
Total non-current assets 32,670,700,405.18 32,440,171,683.07
Total assets 37,041,250,420.22 36,202,918,701.84
24 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Current liabilities:
Short-term borrowings 1,500,000,000.00
Financial liabilities measured at fair value
and changes of which included in current
profit and loss
Derivative financial liabilities
Bills payable and accounts payable 235,162,661.28 310,387,267.67
Advances from customers 2,418,969,696.50 2,465,908,721.32
payable for staff’s remuneration 46,161,578.98 51,533,384.22
Taxes payable 14,377,813.15 62,255,803.87
Other payable 22,316,065,443.79 21,268,590,528.36
Including：interests payable 188,675,107.27 156,447,167.63
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 18,216,506.32 12,498,265.43
Total current liabilities 26,548,953,700.02 24,171,173,970.87
Non-current liabilities：
Long-term borrowings
Debentures payable
Including: preference shares
Perpetual bonds
Long-term payable 20,000,000.00 20,000,000.00
Long-term payable for staff’s
remuneration
Estimated liabilities
Deferred income 91,723,810.10 37,700,000.00
Deferred income tax liabilities 37,790,420.16 36,152,815.34
Other non-current liabilities
Total non-current liabilities 149,514,230.26 93,852,815.34
Total liabilities 26,698,467,930.28 24,265,026,786.21
Owners’ equity（or shareholders’ equity）
Pain-in capital（or share capital） 6,097,402,727.00 6,097,402,727.00
Other equity instruments
Including: preference shares
Perpetual bonds
Capital reserve 2,318,161,831.23 2,317,907,947.71
Less: Treasury stock
Other comprehensive income -13,438,995.88 -43,234,737.77
Special reserve
Surplus reserve 1,437,313,649.93 1,437,313,649.93
Undistributed profits 503,343,277.66 2,128,502,328.76
25 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Total owners’ equity（or shareholders’ 10,342,782,489.94 11,937,891,915.63
equity）
Total liabilities and owners’equities 37,041,250,420.22 36,202,918,701.84
（or shareholders’ equities）
Legal representative: Liang Haishan Chief accountant: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Income Statement
January-September 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Amount from the Amount from the
Amount for the beginning of the beginning of last
Amount for the
previous year to the end of year to the end of
current
Items Period the reporting the reporting
Period
(July-Septemb period period
(July-September)
er) (January-Septem (January-Septem
ber) ber)
47,582,370,823 42,676,437,6 138,138,774,41 122,494,143,06
Ⅰ. Total operating revenue
.27 84.91 1.21 2.55
47,582,370,823 42,676,437,6 138,138,774,41 122,494,143,06
Including: operating revenue
.27 84.91 1.21 2.55
Interest income
Insurance premiums
earned
Handling charges and
commission income
46,118,823,532 41,579,488,1 131,146,255,97 116,764,168,44
Ⅱ. Total cost of operations
.91 10.86 9.08 7.98
34,100,161,398 30,008,154,8 98,174,684,451 85,585,233,536
Including: operating cost
.02 83.08 .42 .54
Interest expenses
Handling charges and
commission expenses
Insurance withdrawal
payment
Net payment from
indemnity
Drawing of provisions
for insurance contracts, net
Insurance policy
dividend paid
26 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Reinsurance cost
269,132,311.
Taxes and surcharges 244,364,395.43 648,780,027.35 614,663,024.79
99
7,823,195,188. 7,889,010,74 21,339,457,352 20,434,536,178
Selling expenses
26 3.94 .81 .22
2,132,814,021. 1,612,634,06 6,236,541,938. 5,227,336,684.
Administrative expenses
53 6.12 43 13
1,447,952,191. 1,324,940,02 3,712,243,059. 3,517,071,013.
R&D expenditures
68 2.77 10 44
467,291,932. 1,154,426,899.
Financial expenses 279,887,087.05 765,856,927.10
78 86
Including: Interest 349,114,922. 1,061,792,763.
304,546,395.79 988,211,900.04
expenses 55 50
Interest 94,430,542.0
98,827,316.38 333,241,702.03 235,611,576.12
income 9
Loss in assets
90,449,250.94 8,324,150.18 268,692,222.87 230,901,111.00
impairment
259,484,760.
Add: Other income 254,478,055.41 478,770,467.43 394,227,327.95
43
Investment income 319,971,426. 1,326,437,894.
458,978,905.04 973,814,141.01
(losses are represented by “-”) 66 00
Including: investment
income from associates and
joint ventures
Income from change in
-125,212,550.5 114,188,419.
fair value (losses are -88,550,629.00 526,252,264.40
0 25
represented by “-”)
Income from disposal of
22,170,316.1
assets (losses are represented by 113,057,969.10 118,726,042.63 15,021,976.92
6
“-”)
Exchange gain (losses
are represented by “-”)
Ⅲ. Operating profit (losses are 2,164,849,669. 1,812,764,49 8,827,902,207. 7,639,290,324.
represented by “-”) 41 6.55 19 85
230,651,977.
Add: non-operating income 88,873,125.37 307,131,026.14 477,616,097.62
14
41,884,014.9
Less: non-operating expenses 24,609,630.01 74,176,661.32 119,329,951.37
9
Ⅳ.Total Profit (total losses are 2,229,113,164. 2,001,532,45 9,060,856,572. 7,997,576,471.
represented by “-”) 77 8.70 01 10
214,861,802. 1,230,053,924.
Less: income tax expense 263,274,478.27 968,361,199.76
48 92
V. Net Profit (net losses are 1,965,838,686. 1,786,670,65 7,830,802,647. 7,029,215,271.
27 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
represented by “-”) 50 6.22 09 34
(I) Classification by
continuous operation
1.Net profit from
1,965,838,686. 1,786,670,65 7,830,802,647. 7,029,215,271.
continuous operations (net
50 6.22 09 34
losses are represented by “-”)
2.Net profit from
discontinued operations (net
losses are represented by “-”)
(II)Classification by
ownership of the equity
1. Net profit attributable
1,341,445,309. 1,217,982,64 6,126,787,121. 5,602,801,883.
to owners of the Parent
68 7.53 21 86
Company
2. Profit or loss
568,688,008. 1,704,015,525. 1,426,413,387.
attributable to minority 624,393,376.82
69 88 48
shareholders
VI. Other comprehensive -95,904,313.2 1,013,158,337. -327,410,413.0
548,134,190.72
income, net of tax 7 47 4
Other comprehensive income
-81,928,492.4 -280,916,551.6
attributable to owners of the 492,890,595.99 833,824,709.33
3 6
Parent Company, net of tax
(I) Other comprehensive
income that will not be
-1,045,223.32 -7,997,491.05
reclassified subsequently to
profit or loss
1. Changes arising from
re-measurement of defined bene -1,045,223.32 -7,997,491.05
fit plans
2. Other comprehensive
income that cannot be
transferred to profit and loss
under equity method
(II) Other comprehensive
-81,928,492.4 -280,916,551.6
income to be reclassified 493,935,819.31 841,822,200.38
3 6
subsequently to profit or loss
1. Other comprehensive
income that can be transferred 40,693,511.6
74,779,420.86 161,496,158.75 -81,346,664.65
to profit and loss under equity 0
method
2. Profit or loss from
change in fair value of -7,181,577.12 1,056,642.38 40,401,696.52 -1,290,381.60
available-for-sale financial
28 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
assets
3. Profit or loss arising
from reclassification of
held-to-maturity investments to
available-for-sale financial
assets
4. Effective portion of
15,156,097.1
profit or loss arising from cash -4,888,807.85 42,876,348.23 -27,372,354.75
4
flow hedges
5. Exchange differences
on translation of financial -138,834,743. -170,907,150.6
431,226,783.42 597,047,996.88
statements denominated in 55 6
foreign currencies
Other comprehensive income
-13,975,820.8
attributable to minority 55,243,594.73 179,333,628.14 -46,493,861.38
4
shareholders, net of tax
Ⅶ. Total comprehensive 2,513,972,877. 1,690,766,34 8,843,960,984. 6,701,804,858.
income 21 2.95 56 30
Total comprehensive income
1,834,335,905. 1,136,054,15 6,960,611,830. 5,321,885,332.
attributable to the owners of
66 5.10 54 20
Parent Company
Total comprehensive income
554,712,187. 1,883,349,154. 1,379,919,526.
attributable to the minority 679,636,971.55
85 02 10
shareholders
VIII. Earnings per share:
(I) Basic earnings per share
0.271 0.300 1.005 0.919
(RMB/share)
(II) Diluted earnings per share
0.264 0.300 0.987 0.919
(RMB/share)
For the business combination under common control effected during the period, the net profit realized by
the merged party before the combination was RMB -43,718,860.91
Legal representative: Liang Haishan Chief accountant: Gong Wei
Person in charge of accounting department: Ying Ke
29 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Income Statement of the Parent Company
January-September 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Amount from the Amount from the
Amount for Amount for the beginning of the beginning of last
the current previous year to the end of year to the end of
Items
Period Period the reporting the reporting
(July-Septe (July-Septembe period period
mber) r) (January-Septem (January-Septem
ber) ber)
792,884,92 885,928,248.6 2,417,038,949.6 2,429,040,574.3
Ⅰ. Operating revenue
1.23 9 9 4
555,280,50 599,578,352.6 1,675,343,056.1 1,724,678,093.7
Less: Operation cost
3.90 6 6 3
6,419,524.
Taxes and surcharges 8,873,954.31 16,393,690.67 17,998,106.78
05
85,400,691
Selling expenses 65,814,107.53 210,441,579.93 150,349,127.54
.99
141,647,23 131,166,668.9
Administrative expenses 345,344,601.02 327,764,969.80
4.36 7
82,497,268
R&D expenditures 74,387,651.32 166,500,505.81 169,591,070.38
.57
45,410,592
Financial expenses 32,401,366.94 107,226,850.25 77,833,579.73
.26
Including: Interest 80,070,880
71,132,206.66 210,180,419.77 187,164,133.92
expenses .63
28,915,355
Interest income 40,157,833.17 101,898,989.53 111,044,209.34
.12
-86,152,80 -67,084,496.5
Loss in assets impairment 10,058,187.90 -17,843,951.04
1.78 9
25,076,709 -17,583,126.2
Add: Other income 34,586,901.99 17,166,899.75
.08 5
Investment income (losses 306,404,37 108,081,882.9
525,924,446.67 259,975,650.65
are represented by “-”) 6.82 2
Including: investment
income from associates and joint
ventures
Income from change in fair
value (losses are represented by
“-”)
Income from disposal of
25,693.17 25,693.17
assets (losses are represented by
30 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
“-”)
Ⅱ. Operating profit (losses are 293,888,68 131,289,400.2
446,267,519.78 255,812,127.82
represented by “-”) 6.95 2
6,536,549.
Add: non-operating income 41,890,232.67 34,283,951.35 59,966,161.35
52
Less: non-operating expenses 58,667.36 852,535.19 311,781.90 861,948.86
Ⅲ. Total Profit (total losses are 300,366,56 172,327,097.7
480,239,689.23 314,916,340.31
represented by “-”) 9.11 0
-4,749,277.
Less: income tax expense 9,633,872.86 -8,231,021.09 -756,318.10
12
Ⅳ. Net Profit (net losses are 305,115,84 162,693,224.8
488,470,710.32 315,672,658.41
represented by “-”) 6.23 4
(I)Net profit from continuous
305,115,84 162,693,224.8
operations (net losses are 488,470,710.32 315,672,658.41
6.23 4
represented by “-”)
(II)Net profit from discontinued
operations (net losses are
represented by “-”)
V. Other comprehensive income,
39,894.27 79,633.31 14,706,726.13 -13,523,864.60
net of tax
(I) Other comprehensive income
that cannot be reclassified
subsequently to profit or loss
1. Changes arising from
re-measurement of defined benefit
plans
2. Other comprehensive
income that cannot be transferred
to profit and loss under equity
method
(II) Other comprehensive income
to be reclassified subsequently to 39,894.27 79,633.31 14,706,726.13 -13,523,864.60
profit or loss
1. Other comprehensive
income that can be transferred to 15,117,117.89 -13,949,016.48
- -
profit and loss under equity method
2. Profit or loss from change
in fair value of available-for-sale 39,894.27 79,633.31 -410,391.76 425,151.88
financial assets
3. Profit or loss arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets
31 / 37
Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
4. Effective portion of profit
or loss arising from cash flow
hedges
5. Exchange differences on
translation of financial statements
denominated in foreign currencies
305,155,74 162,772,858.1
VI. Total comprehensive income 503,177,436.45 302,148,793.81
0.50 5
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Legal representative: Liang Haishan Chief accountant: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Cash Flow Statement
January-September 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Amount from the Amount from the
beginning of the beginning of last year
Items year to the end of to the end of the
the reporting period reporting period
(January-September) (January-September)
Ⅰ. Cash flows from operating
activities:
Cash received from the sale of goods and
136,356,353,258.31 142,884,043,530.47
rendering of services
Net increase in consumer and inter-bank
deposits
Net increase in borrowing from central bank
Net increase in Placements 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
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Net increase from the disposal of financial
assets measured at fair value and changes of
which included in current profit and loss
Cash received from interest, handling
charges and commissions
Net increase in Placements from banks and
other financial institutions
Net increase in cash received from
repurchased operation
Refunds of taxes 1,046,920,477.01 928,821,816.67
Cash received from other related
589,436,216.22 659,644,922.87
operating activities
Sub-total of cash inflows from operating
137,992,709,951.54 144,472,510,270.01
activities
Cash paid on purchase of goods and
94,027,674,890.45 101,805,650,338.28
services
Net increase in loans and advances from
customers
Net increase in deposits in central bank and
inter-bank
Cash paid for compensation payments under
original insurance contract
Cash paid for interest, bank charges and
commissions
Cash paid for insurance policy dividend
Cash paid to and on behalf of employees 14,351,219,932.92 12,072,394,336.37
Cash paid for all types of taxes 6,353,081,563.62 5,751,657,745.83
Cash paid to other operation related
12,211,553,757.49 10,304,794,590.01
activities
Sub-total of cash outflows from operating
126,943,530,144.48 129,934,497,010.49
activities
Net cash flows from operating activities 11,049,179,807.06 14,538,013,259.52
Ⅱ. Cash flows from investing
activities:
Cash received from disposal of
3,057,186,798.56 41,065,673.58
investments
Cash received from return on
284,197,818.40 240,271,551.96
investments
Net cash received from the disposal of fixed
assets, intangible assets and other long-term 312,264,347.04 61,986,331.26
assets
Net cash received from disposal of
630,890,842.99 155,037,270.54
subsidiaries and other operating entities
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Cash received from other investment related
106,361,571.07
activities
Sub-total of cash inflows from investing
4,390,901,378.06 498,360,827.34
activities
Cash paid on purchase of fixed assets,
4,448,216,757.39 2,875,638,772.83
intangible assets and other long-term assets
Cash paid for investment 9,128,017,281.00 2,251,865,388.66
Net increase in secured loans
Net cash paid on acquisition of subsidiaries
2,143,193,029.63 88,429,231.46
and other operating entities
Cash paid on other investment related
22,812,827.94 8,992,511.00
activities
Sub-total of cash outflows from investing
15,742,239,895.96 5,224,925,903.95
activities
Net cash flows from investing activities -11,351,338,517.90 -4,726,565,076.61
Ⅲ. Cash flows from financing
activities:
Cash received from investment 712,560,270.91 1,347,892,085.10
Including: cash received by
subsidiaries from minority shareholders’
investment
Cash received from borrowings 12,010,235,777.28 16,802,696,722.23
Cash received from issuing bonds
Cash received from other financing
1,731,609.42
related activities
Sub-total of cash inflows from financing
12,722,796,048.19 18,152,320,416.75
activities
Cash paid on repayment of borrowings 10,654,594,243.08 17,319,127,428.05
Cash paid on distribution of
2,757,273,989.73 2,010,741,534.99
dividends, profits, or interest expenses
Including: dividend, profit paid to
minority shareholders by subsidiaries
Cash paid on other financing
684,267,226.55 60,636,145.07
activities
Sub-total of cash outflows from financing
14,096,135,459.36 19,390,505,108.11
activities
Net cash flows from financing activities -1,373,339,411.17 -1,238,184,691.36
Ⅳ. Effect of fluctuations in exchange
372,206,915.04 -178,747,785.13
rates on cash and cash equivalents
Ⅴ. Net increase in cash and cash
-1,303,291,206.97 8,394,515,706.42
equivalents
Add: balance of cash and cash equivalents at
34,988,175,709.53 23,966,288,576.46
the beginning of the period
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
VI.Balance of cash and cash equivalents at
33,684,884,502.56 32,360,804,282.88
the end of the period
Legal representative: Liang Haishan Chief accountant: Gong Wei
Person in charge of accounting department: Ying Ke
Cash Flow Statement of the Parent Company
January-September 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB Unaudited
Items Amount from the Amount from the
beginning of the beginning of last
year to the end of year to the end
the reporting period of the reporting
(January-September) period
(January-September)
Ⅰ. Cash flows from operating
activities:
Cash received from the sale of goods
1,318,190,025.50 427,739,667.35
and rendering of services
Refunds of taxes 95,543,006.48 55,711,962.27
Cash received from other related
173,528,179.29 54,115,058.79
operating activities
Sub-total of cash inflows from
1,587,261,211.27 537,566,688.41
operating activities
Cash paid on purchase of goods and
458,713,553.43 1,452,092,842.51
services
Cash paid to and on behalf of
647,354,793.69 564,703,136.34
employees
Cash paid for all types of taxes 139,250,644.36 137,011,406.78
Cash paid to other operation related
374,617,434.69 321,211,786.90
activities
Sub-total of cash outflows from
1,619,936,426.17 2,475,019,172.53
operating activities
Net cash flows from operating
-32,675,214.90 -1,937,452,484.12
activities
Ⅱ. Cash flows from investing
activities:
Cash received from disposal of
505,207,895.00
investments
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Cash received from return on
1,153,009,979.01 429,548,610.50
investments
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
related activities
Sub-total of cash inflows from
1,658,217,874.01 429,548,610.50
investing activities
Cash paid on purchase of fixed
assets, intangible assets and other 46,367,088.81 28,348,785.40
long-term assets
Cash paid for investments 73,572,235.00 793,311,762.50
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment
related activities
Sub-total of cash outflows from
119,939,323.81 821,660,547.90
investing activities
Net cash flows from investing activities 1,538,278,550.20 -392,111,937.40
Ⅲ. Cash flows from financing
activities:
Cash received from investment
Cash received from borrowings 1,500,000,000.00
Cash received from issuing bonds
Cash received from other financing
424,802,503.30 4,517,547,537.12
related activities
Sub-total of cash inflows from
1,924,802,503.30 4,517,547,537.12
financing activities
Cash paid on repayment of borrowings
Cash paid on distribution of
2,106,817,045.14 1,512,155,876.29
dividends, profits, or interest expenses
Cash paid on other financing activities 1,041,960.00
Sub-total of cash outflows from
2,106,817,045.14 1,513,197,836.29
financing activities
Net cash flows from financing
-182,014,541.84 3,004,349,700.83
activities
Ⅳ. Effect of fluctuations in exchange
2,417.25 -2,101.16
rates on cash and cash equivalents
Ⅴ. Net increase in cash and cash
1,323,591,210.71 674,783,178.15
equivalents
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Third Quarterly Report of 2018
Qingdao Haier Co., Ltd
Add: balance of cash and cash
equivalents at the beginning of the 2,070,527,802.97 3,888,623,400.28
period
Ⅵ. Balance of cash and cash equivalents
3,394,119,013.68 4,563,406,578.43
at the end of the period
Legal representative: Liang Haishan Chief accountant: Gong Wei
Person in charge of accounting department: Ying Ke
4.2 Auditors’ Report
□Applicable √Not Applicable
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