Stock Code: 600690（SH）、690D（FSE） Short Name: Qingdao Haier
Bond Code:110049 Bond Name:Haier Convertible Bond
Qingdao Haier Co., Ltd.
Summary of 2018 Annual Report
I. Importance Notice
1 The summary of annual report is a simplification of the annual report. To comprehensively
understand the Company’s operating results, financial position and future development plans,
investors shall refer to the website of the Shanghai Stock Exchange and other designated media of
the China Securities Regulatory Commission to carefully read the full text of the annual report.
2 The Board of Directors, the Board of Supervisors, directors, supervisors and senior management of
Qingdao Haier Co., Ltd. (“the Company”) hereby assure that the content set out in the annual
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.
3 Information of Directors absent from the meeting.
Position of director absent Name of director absent Reason for the absence of
Name of proxy
from the meeting from the meeting director from the meeting
Director Liu Haifeng Personal affair Wu Changqi
4 Shandong Hexin Certified Public Accountants LLP has issued a standard and unqualified audit
report for the Company.
5 Proposal of profit distribution and proposal of capitalizing capital reserves for the reporting period
examined and reviewed by the Board
Proposal of profit distribution for the reporting period examined and reviewed by the Board: to declare a
cash dividend of RMB3.51 per 10 shares (tax inclusive) to all shareholders based on the total number of
shares as at the registration date in respect of future proposal for profit distribution.
II. General Information of the Company
1 General Information of the Company
Summarized Information of Shares of the Company
Type of Shares Stock Exchange of Stock Short Name Stock Code Stock Short Name
Shares Listed Before Variation
A shares Shanghai Stock Qingdao Haier 600690 /
Exchange
D shares Frankfurt Stock QINGDAO HAIER 690D /
Exchange
Contact person Secretary to the Board Representative of
and contact securities affairs IR
Information
Name Ming Guozhen Liu Tao Sophie (孙瑶)
Address Department of Securities Department of Haier Deutschland GmbH,
of Qingdao Haier Co., Securities of Qingdao Hewlett-Packard-Str. 4,
Ltd. Haier Information Haier Co., Ltd. Haier 61352 Bad Homburg,
Industrial Park, No.1 Information Industrial Germany
Haier Road, Qingdao Park, No.1 Haier
City Road, Qingdao City
Tel 0532-88931670 0532-88931670 +49 160 9469 3601
(Germany)
Email finance@haier.com finance@haier.com Y.sun@haier.de
2 General Information of the Company’s major business during the reporting period
The Company mainly engages in research, development, production and sales of home appliances
with product portfolios covering refrigerators/freezers, washing machines, air-conditioners, water
heaters, kitchen appliance products, small home appliances, U-home smart home business, etc., offering
complete sets of smart home solutions to our consumers through rich portfolio of product and brand to
create a better life experience, and the Company's channel integration service business mainly provides
customers with full-process services such as distribution, logistic and after-sale of home appliances,
household appliances and other products, as well as other value-added services.
Since its establishment, the Company has been upholding the concept of “taking the user as right
and ourselves as wrong”, while adhering to the spirit of entrepreneurship and innovation and the strategy
of keeping up with new developments. The Company has always adhered to overseas independent brand
creation and through its persistent efforts and industry integration, it has successively acquired the white
goods business of Sanyo of Japan, the household appliances business of GE, the Fisher & Paykel
business in New Zealand, holds a 48.41% equity in MABE in Mexico, and acquires Italy-based Candy
Company to construct the global competitiveness of the trinity of "R&D, manufacturing and marketing".
Through continuous optimization of resource integration capabilities and global strategic synergies, the
Company achieves the layout and global operation of the seven world-class brands, including Haier,
Casarte, Leader, GE Appliances in the USA, Fisher & Paykel in New Zealand, AQUA in Japan and
Italy-based Candy. In 2018, revenue from overseas operation represented 42% of the total revenue
while near 100% of the revenue was generated from self-owned brands.
According to retail sales statistics on the large home appliances published by Euromonitor, the
world’s leading independent provider of strategic market research, in 2018, sales of Haier’s large home
appliances ranked No. 1 in the world for the 10th consecutive year. Meanwhile, global sales of Haier’s
refrigerators, washing machines, wine cellars and freezers continued to rank No. 1 in the world. The
sales of Haier Health self-cleaning air-conditioner in 2018 represented a global market share of 40.7%
and ranked No. 1 in the world.
In face of the opportunities and challenges arising in the Internet of Things (“IoT”) era, the
Company, through strategic market moves, has initiated the transformation to the IoT platform and
established three leading platforms, including U+ Smart Life platform, COSMOplat industrial internet
cloud platform, and Shunguang social group platform to focus on continuous iterations of the user's best
experience. By offering smart homes solutions and introducing full-range smart life experiences to
consumers, Haier has satisfied the needs of a better life for its customers.
2018 Industry Summary
In 2018, the global economy maintained its moderate growth, but the momentum of growth slowed
down gradually due to the intensification of trade protectionism, the continued interest rate increase of
the U.S. Federal Reserve, the intensification of capital outflows from emerging economies and the
continuing turbulence of financial markets. Given the complex and severe situation at home and abroad,
China's economic growth remained within a reasonable range, and its economic structure was constantly
optimized; its new momentum for development was growing rapidly; people's livelihood continued to
improve.
(I) Performance of domestic white goods industry:
In 2018, affected by the weakening of economic growth and the reduced growth of real estate sales,
the household appliances industry grew slightly, showing a trend of fast growth first and slow growth
later in the year, and the pressure of growth increased continuously in the third and fourth quarters.
According to the calculation by China Market Monitor Co., Ltd. (CMM), the market size of China's
household appliances industry (excluding 3C) in 2018 was RMB948 billion, representing an increase of
1.1% yoy; the growth rate of the industry had fallen significantly compared with that in 2017 at 14.1%.
Domestic market in 2018: (1) White goods industry: Domestic retail sales of each white goods
sub-industry grew slightly. ① The retail volume and the value of the home-use air-conditioner increased
by 3.0% and 5.6% respectively; ② For the refrigerator and washing machine market, replacement
demand became the primary driver with weak sales volume growth, while the average prices were
boosted by structural upgrading, resulted in retail sales maintaining a slight growth trend: retail volume
in the refrigerator industry decreased by 5.9%, but the retail value increased by 7.9%; retail volume and
retail value of washing machine increased by 0.1% and 5.4% respectively. (2) Kitchen and bathroom
industry: ① The water heater industry recorded a decrease of 3.2% in retail volume and a growth of
0.5% in retail value in 2018; ② In the kitchen appliance market, hoods and stoves recorded negative
growth of 7.9% and 7.1% respectively in terms of retail value.
The trend of consumption upgrade continued, and the characteristics of experience economy
and community economy appeared. ① Brand, quality, design and technology became the major
factors influencing the consumption decision. Consumers are willing to pay a premium for "good
products", and healthy, smart, artistic products with large capacity are increasingly favored. Innovation
in product categories promoted industry upgrading, and the average price continued to rise. High
value-added sub-categories such as duplex drum washing machines provided space for price increases.
According to CMM’s offline observed data, the average retail price in the refrigerator industry in 2018
was RMB4,167, representing an increase of 9.9% yoy; the average retail price in the washing machine
industry was RMB2,956, representing an increase of 9.93% yoy. ② The trend of consumption
differentiation was obvious, and there were more and more young users. ③ The development of the
Internet of Things, Big Data, Artificial Intelligence and other technologies accelerated the
intellectualization trend. The interconnection of intelligent household appliances created a brand new,
convenient and smart experience. The requirement for household smart solutions has been constantly
raised and pushed the transformation of enterprises from manufacturing and marketing to providing a
smart life.
With increasing industry concentration, the leadership becomes a core asset. Haier as a leading
enterprise focusing on R&D innovation, brand building, and a long-term strategy, increased its market
share by relying on comprehensive advantages accumulated in long term market competition. In 2018,
new industrial innovation appeared in the household appliances industry, seeking breakthrough
opportunities in design, concept and price.
Offline channels showed a negative growth trend, while the proportion of online channels
continued to increase but the growth slowed down. The integration of online and offline channels has
progressed. E-commerce platform accelerated the deployment in rural markets. Traditional offline
channels were also trying to promote business using e-commerce resources. In this sense, channel
ecology has become diversified increasingly.
(II) Performance of overseas white goods industry: Due to the level of economic development
and market size in each region, performances differed across markets. ① In the U.S. market, the sales of
large appliances was basically the same in 2018 as in 2017 ② In the European market, refrigerators and
freezers industries benefited from the increase of the proportion of large-capacity refrigerators including
those with open doors and multi-doors; washing products maintained a small single-digit growth due to
the increasing proportion of large-capacity washing machines, heat pump dryers and intelligent
interconnection products. Sales of cookers and embedded products were basically unchanged compared
with 2017. ③ The Japanese market recorded a growth of 3% in 2018. ④ The Australian and New
Zealand market experienced a negative growth trend in the household appliances market, impacted by
the sustained decline in consumer spending and the weakening of the real estate industry. ⑤ In the South
Asia markets, affected by inflation, currency depreciation and other factors, Pakistan’s economy
fluctuated and the growth of household appliances market slowed down; the Indian market was affected
by the depreciation of the rupee, rising costs and weakening demand, so growth was flat and lower than
expectation.
2019 Industry Outlook:
Domestic Market: In 2019, it is expected that the national economy will grow steadily at a low
rate; the real estate market will continue to grow slowly; and there will be no obvious favorable factors
for the external economic environment of the household appliances industry, but industrial restructuring
and consumption upgrading will continue. The market of household appliances is dominated by demand
of replacement, and the quality and improvement consumption demand will be further released.
According to AVC’s prediction, the total retail sales of white goods (refrigerators, washing machines and
air conditioners) will reach RMB372.9 billion in 2019, representing a growth of 0.4% yoy. The kitchen
and bathroom market will still be at a turning point. It is estimated that the retail sales of kitchen
appliances and water heaters will reach RMB62.6 billion and RMB64.3 billion, respectively,
representing 2.4% and 1.9% yoy decrease, respectively. Industry concentration will increase, and the
advantages of leading enterprises will be further strengthened. Industrial structure upgrade, experience
improvement and intellectualization will continue in the household appliances industry. Enterprises with
strong technological innovation ability, quality control ability and comprehensive product lines will
continue to benefit from industrial upgrading.
Overseas Markets: According to the World Bank’s report, 2019 Global Economic Prospects, the
global economy will face more severe downside risks in 2019 due to potential escalating trade tensions
and fragile international finance markets. Global growth will decrease from 3% in 2018 to 2.9% in 2019,
and the slowdown of economic growth will be reflected in developed, emerging and developing
economies at the same time. The macroeconomic slowdown will affect the demand for home appliances.
3 Key accounting data and financial indicators of the Company
3.1 Key accounting data and financial indicators for the last three years
(1) Key accounting data
Unit and Currency: RMB
2017
yoy change
Key accounting data 2018 2016
After Before (%)
adjustment adjustment
Operating revenue 183,316,560 163,428,8 159,254,466, 119,132,261
12.17
,236.03 25,488.56 909.46 ,662.60
Net profit attributable to 7,440,228,8 6,907,629, 6,925,792,32 5,041,782,2
shareholders of the listed 7.71
55.90 188.39 1.27 80.78
company
Net profit after deduction of
6,601,505,5 5,624,061, 5,624,061,70 4,332,453,0
non-recurring profit or loss 17.38
attributable to shareholders of 99.79 708.46 8.46 50.07
the listed company
Net cash flow from operating 18,934,252, 16,703,78 16,086,588,0 8,135,878,3
activities 13.35
899.16 5,279.98 28.31 51.88
As of 31 As of December 31 2017 As of
yoy change
December December
After Before (%)
2018 31 2016
adjustment adjustment
Net assets attributable to 39,402,350, 33,299,58 32,215,515,2 26,438,188,
shareholders of the listed 18.33
791.68 3,555.63 01.45 226.56
company
Total assets
166,699,544 157,164,3 151,463,110,7 131,469,157
6.07
,243.79 45,812.30
07.63 ,348.79
(2) Key financial indicators
Unit and Currency: RMB
2017
Key financial indicators 2018 After Before yoy change (%) 2016
adjustment adjustment
Basic earnings per share
1.210 1.133 1.136 6.80 0.827
(RMB per share)
Diluted earnings per share
1.182 1.085 1.088 8.94 0.824
(RMB per share)
Basic earnings per share after
deducting non-recurring profit 1.074 0.922 0.922 16.49 0.71
or loss (RMB per share)
Weighted average return on Decreased by
21.00 22.89 23.59 20.38
net assets (%) 1.89 percent point
Weighted average return on
net assets after deducting Decreased by
18.63 19.15 19.15 17.56
non-recurring profit or loss 0.52 percent point
(%)
3.2 Key financial data of 2018 by quarters
Unit and Currency: RMB
Q1 Q2 Q3 Q4
(January-March) (April-June) (July-September) (October-December)
Operating revenue 43,609,601,739 46,946,801,849 47,582,370,823 45,177,785,825
Net profit attributable
to shareholders of 1,952,610,308 2,832,731,503 1,341,445,310 1,313,441,735
listed company
Net profit after
deduction of
non-recurring profit
1,761,919,418 2,714,072,148 1,046,481,812 1,079,032,222
or loss attributable to
shareholders of listed
company
Net cash flow from 3,378,067,727.
2,170,214,541.28 5,500,897,538.18 7,885,073,092.10
operating activities 60
Reasons for difference between quarterly data and disclosed regular reporting data
√Applicable □Not Applicable
The difference between the quarterly data and the disclosed regular reporting data was due to the
Company's business combination under common control during the reporting period, which resulted in
retrospective adjustment to the data.
4 Share capital and shareholders
4.1 Number of ordinary shareholders and preferential shareholders with restoration of voting rights and
table of shareholdings of top ten shareholders
Unit: share
Total number of ordinary shareholders up to the end of the reporting 173,027
period
Total number of ordinary shareholders as at the end of the last month 172,948
prior to the disclosure day of the annual report
Shareholdings of top ten shareholders
Number Status of
of shares
Change
Number of shares pledged or
during Perce
Name of shareholder shares held at held frozen Nature of
the ntage
(full name) the end of the with shareholder
reportin (%)
period selling Num
g period Status
restricti ber
ons
Haier Electric Nil Domestic
Appliances International non-state-o
1,258,684,824 19.76
Co., Ltd. wned legal
entity
Haier Group Nil Domestic
Corporation non-state-o
1,072,610,764 16.84
wned legal
entity
Hong Kong Securities Unkn Unknown
496,233,305 7.79
Clearing Co., Ltd. own
GIC PRIVATE Unkn Foreign
263,406,745 4.14
LIMITED own legal entity
Deutsche Bank Unkn Foreign
Aktiengesellschaft 209,115,801 3.28 own legal entity
(note)
China Securities Unkn Unknown
Finance Corporation 182,592,697 2.87 own
Limited
Qingdao Haier Venture Nil Domestic
& Investment non-state-o
Information Co., 172,252,560 2.70 wned legal
Ltd.(青岛海尔创业投 entity
资咨询有限公司)
KKR HOME Unkn Foreign
INVESTMENT S.A 161,116,436 2.53 own legal entity
R.L.
National social security Unkn Unknown
102,211,900 1.60
fund, Portfolio 104 own
Central Huijin Asset Unkn Unknown
69,539,900 1.09
Management Ltd. own
Related-parties or parties acting in (1) Haier Electric Appliances International Co., Ltd. is a
concert among the aforesaid holding subsidiary of Haier Group Corporation. Haier Group
shareholders Corporation holds 51.20% of its equity. Qingdao Haier Venture &
Investment Information Co., Ltd.(青岛海尔创业投资咨询有限
公司) 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 N/A
shareholders with restoration of
voting rights and their
shareholdings
4.2 Framework of the ownership and controlling relationship between the Company and its controlling
shareholder
√Applicable □Not Applicable
4.3 Framework of ownership and controlling relationship between the Company and the actual
controllers
√Applicable □Not Applicable
4.4 Total number of preferential shareholders and the top ten shareholders of the Company as at the end
of the reporting period
□Applicable √Not Applicable
5 Corporate bonds
√Applicable □Not Applicable
5.1 Overview of corporate bonds
Unit and Currency: RMB0’000
Metho
d of
Balanc capital Places of
Name of Abbrevia Issuing Date of
Code e of Interest rate repaym transacti
bonds tion date expiry
bonds ent on
with
interest
Converti Haier 110049 18 17 300,74 Interest On an
ble Converti Decemb Decemb 9 rates for the annual Shanghai
Corporat ble er 2018 er 2024 first year to basis Stock
e Bonds Bonds sixth year Exchang
of are 0.2, 0.5, e
Qingdao 1.0, 1.5, 1.8,
Haier 2.0 ,
Co., Ltd. respectively
5.2 Interest payment and repayment of corporate bonds
□Applicable √Not Applicable
5.3 Introduction of corporate bonds rating
√Applicable □Not Applicable
The convertible corporate bonds have been rated by the United Credit Ratings Co., Ltd., which
issued the Credit Rating Report Regarding Public Issuance of A Shares Convertible Corporate Bonds of
Qingdao Haier Co., Ltd.. According to this rating report, the main credit rating of Qingdao Haier is AAA
and the credit rating of convertible corporate bonds is AAA. During the period of convertible corporate
bonds, the United Credit Ratings Co., Ltd. will perform regular follow-up rating on an annual basis.
5.4 Key accounting data and financial indicators of the Company for the last two years
√Applicable □Not Applicable
yoy change
Key indicators 2018 2017
(%)
Debt to assets ratio (%) 66.90 69.55 -2.65
Total liabilities ratio of 0.2073 0.1986 0.87
EBITDA
Interest coverage ratio 8.94 8.34 7.20
III. Discussion and analysis on operations
1 Principle operating conditions during the reporting period
Please refer to the related statement in “I. Discussion and analysis on operations” of this section.
2 Reasons of listing suspension
□Applicable √Not Applicable
3 Circumstances and reasons for listing termination
□Applicable √Not Applicable
4 Explanation of the Company’s analysis on reasons and effects of changes in accounting policies and
accounting estimates
√Applicable □Not Applicable
Ministry of Finance promulgated Accounting Standard for Business Enterprises No. 22 —
Recognition and Measurement of Financial Instruments, Accounting Standard for Business Enterprises
No. 23 — Transfer of Financial Assets and Accounting Standard for Business Enterprises No. 37 —
Presentation of Financial Instruments, etc., (collectively the “New Financial Instrument Standards”) as
well as Accounting Standard for Business Enterprises No. 14 — Income, respectively in 2017, and
promulgated the Notice of the Ministry of Finance on Revising and Issuing the Format of Financial
Statements of General Enterprises for 2018 ( 财政部关于修订印发 2018 年度一般企业财务报表格式
的通知》) (Cai Kuai [2018] No.15) in 2018. the Company and its subsidiaries have started to implement
the above amendments to the Accounting Standards for Business Enterprises and the Notice since 1
January 2018, and adjusted the relevant contents of accounting policies and financial statements
accordingly.
The Company and its subsidiaries implemented the New Financial Instrument Standards and
income standard initially for the current period. According to the requirements under the Interpretation
of Issues Relating to the Format of the Financial Statements of General Enterprises（《关于一般企业财
务报表格式有关问题的解读》）issued by the Accounting Bureau of the Ministry of Finance, the above
changes in accounting policies cause influence on the opening amounts of the consolidated balance sheet
are as follows:
Book value on Adjustment
Adjustment
31 December influence of Book value on 1
influence of
Items 2017 financial Items January 2018
income
(Before instrument (After changing)
standards
changing) standards
Financial assets
measured at fair
value and changes
20,681,695.50 -20,681,695.50 Not Applicable
of which included
in current profit and
loss
Financial assets
Not Applicable 20,681,695.50 20,681,695.50
held for trading
Available-for-sale
1,415,354,307.82 -1,415,354,307.82 Not Applicable
financial assets
Financial assets
Not Applicable 6,556,627.26 6,556,627.26
held for trading
Investment in
Not Applicable 1,408,797,680.56 other equity 1,408,797,680.56
instruments
Financial liabilities
measured at fair
value and changes
2,524,569.45 -2,524,569.45 Not Applicable
of which included
in current profit and
loss
Financial
Not Applicable 2,524,569.45 liabilities held 2,524,569.45
for trading
Accounts Accounts
12,891,199,940.00 138,793,125.19 13,029,993,065.19
receivable receivable
Other
Other receivables 984,129,285.50 19,750,854.12 1,003,880,139.62
receivables
Deferred
Deferred income
2,076,635,630.12 -58,846,528.69 16,849,858.75 income tax 2,034,638,960.18
tax assets
assets
Long-term
Long-term equity
12,987,255,645.28 -31,654,957.77 equity 12,955,600,687.51
investments
investments
Inventories 22,537,617,217.87 -187,935,341.47 Inventories 22,349,681,876.40
Not Applicable 427,848,311.65 Contract assets 427,848,311.65
Contract
Not Applicable 239,912,970.18 239,912,970.18
liabilities
Receipts in adva
Receipts in advance 5,861,949,182.62 -5,824,511,466.48 37,437,716.14
nce
Contract
Not Applicable 5,824,511,466.48 5,824,511,466.48
liabilities
Other current
Other current assets 4,425,579,572.68 120,603,680.27 4,546,183,252.95
assets
Other
Other non-current
1,254,064,181.76 1,140,535.90 non-current 1,255,204,717.66
assets
assets
Other current Other current
42,961,121.03 301,420,575.54 344,381,696.57
liabilities liabilities
Estimated
estimated liabilities 2,660,788,654.43 -73,446,879.39 2,587,341,775.04
liabilities
Other Other
comprehensive 4,424,024.90 40,604,722.79 comprehensive 45,028,747.69
income income
Undistributed Undistributed
22,350,952,230.17 -10,028,324.57 -44,877,259.88 22,296,046,645.72
profits profits
Minority equity Minority equity
14,549,620,553.66 37,466,094.63 -44,502,361.35 14,542,584,286.94
interests interests
The impact on the opening balance of the balance sheet of the Parent Company is as follows:
Book value on Adjustment
Adjustment
31 December influence of Book value on 1
influence of
Items 2017 financial Items January 2018
income
(Before instrument (After changing)
standards
changing) standards
Available-for-sale
5,818,587.80 -5,818,587.80 Not Applicable
financial assets
Investment in
Not Applicable 5,818,587.80 other equity 5,818,587.80
instruments
Bills receivable
Accounts
288,499,726.07 13,278,745.63 and accounts 301,778,471.70
receivable
receivable
Other
Other receivables 15,895,048.43 708,860.00 16,603,908.43
receivables
Deferred
Deferred income
106,347,777.99 -2,098,140.84 income tax 104,249,637.15
tax assets
assets
Undistributed Undistributed
2,128,502,328.76 -16,428,564.00 2,112,073,764.76
profits profits
Receipts in adva
Receipts in advance 2,465,908,721.32 -2,465,908,721.32
nce
Contract
Not Applicable 2,465,908,721.32 2,465,908,721.32
liabilities
Other Other
comprehensive -43,234,737.77 15,117,117.89 comprehensive -28,117,619.88
income income
Long-term
Long-term equity
23,581,254,928.08 -13,200,910.90 equity 23,568,054,017.18
investments
investments
The Company and its subsidiaries prepared the 2018 financial statements in accordance with the
financial statements format specified in Cai Kuai [2018] No. 15, and changed the presentation of
relevant financial statements using the retrospective adjustment method.
The impact of the related presentation adjustment on the consolidated balance sheet at the beginning of
the period is as follows:
Book value on 31 Book value on 1
Presentation impact of
Items December 2017 Items January 2018
financial statement
(Before changing) (After changing)
Bills receivable 13,033,083,520.99 -13,033,083,520.99 Not
Applicable
Accounts Not
13,029,993,065.19 -13,029,993,065.19
receivable Applicable
Accounts
receivable and
Not Applicable 26,063,076,586.18 26,063,076,586.18
Bills
receivable
Not
Interest receivable 203,637,543.83 -203,637,543.83
Applicable
Dividend Not
4,524,472.84 -4,524,472.84
receivable Applicable
Other
Other receivables 1,003,880,139.62 208,162,016.67 1,212,042,156.29
receivables
Fixed assets 17,146,390,653.22 55,808,808.81 Fixed assets 17,202,199,462.03
Disposals of fixed Not
55,808,808.81 -55,808,808.81
assets Applicable
Not
Bills payable 16,378,699,659.77 -16,378,699,659.77
Applicable
Not
Accounts payables 26,237,366,204.29 -26,237,366,204.29
Applicable
Accounts
Not Applicable 42,616,065,864.06 payables and 42,616,065,864.06
Bills payable
Not
Interest payable 235,683,220.62 -235,683,220.62
Applicable
Not
Dividends payable 153,756,315.64 -153,756,315.64
Applicable
Other
Other payables 10,920,135,768.52 389,439,536.26 11,309,575,304.78
payables
The impact of the related presentation adjustment on the parent company's opening balance sheet is as
follows:
Book value on 31 December Book value on 1
Presentation impact of
Items 2017 Items January 2018
financial statement
(Before changing) (After changing)
Bills Not
receivable Applicable
Accounts Not
301,778,471.70 -301,778,471.70
receivable Applicable
Accounts
Not receivable
301,778,471.70 301,778,471.70
Applicable and Bills
receivable
Interestrecei Not
220,157,282.75 -220,157,282.75
vable Applicable
Dividend Not
970,851,045.94 -970,851,045.94
receivable Applicable
Other Other
16,603,908.43 1,191,008,328.69 1,207,612,237.12
receivables receivables
Bills Not
payable Applicable
Accounts Not
310,387,267.67 -310,387,267.67
payables Applicable
accounts
Not
310,387,267.67 payablesandB 310,387,267.67
Applicable
ills payable
Interest Not
156,447,167.63 -156,447,167.63
payable Applicable
Dividends Not
payable Applicable
Other Other
21,112,143,360.73 156,447,167.63 21,268,590,528.36
payables payables
The effect of the related presentation adjustment on the concurrency of the consolidated income
statement is as follows:
Amount of 2017(Before Presentation impact of Amount of 2017
Items Items
changing) financial statement (After changing)
Administrative Administrativ
11,953,733,922.64 -4,509,850,773.96 7,443,883,148.68
expenses e expenses
R&D
Not Applicable 4,509,850,773.96 4,509,850,773.96
expenses
The effect of the related presentation adjustment on the number of simultaneous periods of the parent
company's income statement is as follows:
Amount of 2017(Before Presentation impact of Amount of 2017
Items Items
changing) financial statement (After changing)
Administrativ Administrativ
715,982,494.02 -247,120,344.03 468,862,149.99
e expenses e expenses
Not R&D
247,120,344.03 247,120,344.03
Applicable expenses
5 Explanation of the Company’s analysis on reasons and effects of correction of significant
accounting errors
Applicable √Not Applicable
6 Compared with the previous annual financial report, the company should make a specific
description for the changes in the consolidated scope of financial statements.
√Applicable □Not Applicable
①The consolidation of enterprises under non-common control
（1）The consolidation of enterprises under non-common control occurring in the current period
Acquiree’s
Interest Acqui Acqu Recogniti on Acquiree’s net
Time of revenue from
Acquiree acquired sition isitio basis of profit from
acquisiti Acquisition cost acquisition
Name (% ) metho n Acquisitio n acquisition date
on date to the
d date dates to the year end
year end
Guizhou Peiji
2018. shareholding 672,279,564.
Logistics Co., 2018.06 163,144,867.00 60% Cash 27,467,584.99
06 transferred 05
Ltd.
（2）Acquisition cost and goodwill
Items Guizhou Peiji Logistics Co., Ltd.
------Cash 163,144,867.00
Total acquisition cost
163,144,867.00
Less: fair value of identifiable net assets
2,061,054.55
acquired
Goodwill 161,083,812.45
（3）Acquiree’s identifiable assets and liabilities at acquisition date
Guizhou Peiji Logistics Co., Ltd.
Items
Fair value Book Value
Cash 10,699,559.01 10,699,559.01
Accounts receivables 448,446,035.96 448,446,035.96
Bills receivable 408,146.00 408,146.00
Other current assets 2,063,930.85 2,063,930.85
Other receivables 54,915,966.40 54,915,966.40
Prepayments 30,852,283.68 30,852,283.68
Inventories 23,063,186.17 23,063,186.17
Fixed assets 3,537,575.24 3,537,575.24
Intangible assets 15,759.00 15,759.00
Deferred income tax assets 4,956,728.75 4,956,728.75
Long-term equity investments 15,253.01 15,253.01
Long-term prepaid expenses 2,444,809.32 2,444,809.32
Short-term borrowings -165,000,000.00 -165,000,000.00
Accounts payables -314,992,087.95 -314,992,087.95
Taxes payables -18,398,695.99 -18,398,695.99
Employee benefits -4,067,745.97 -4,067,745.97
Dividends payable -14,970,000.00 -14,970,000.00
Interest payable -1,431,500.02 -1,431,500.02
Other payables -55,992,118.40 -55,992,118.40
Contract liabilities -5,669,852.75 -5,669,852.75
Net assets obtained 897,232.31 897,232.31
Less：Minority equity interests -2,537,858.61 -2,537,858.61
Net assets obtained 3,435,090.92 3,435,090.92
②Business combination under common control
（1）Business combination under common control for the current period
Basis for recognition Recognition
as business Acquisit basis of
Name of acquiree % interest acquired
combination under ion date acquisition
common control dates
Rights and
HAIER
obligations
NEWZEALAND Ultimately controlled
related to target
INVESTMENT by Haier Group
100% 2018.7 shareholding
HOLDING before and after the
have been
COMPANY transaction
transferred to
LIMITED
the Company
Originally held 24% of the
Rights and
shares and counted as
obligations
Qingdao Jushanghui Associate, it acquired another ultimately controlled
related to target
Network 25% of the shares on 9 July by Haier Group
2018.7 shareholding
Technology Co., 2018, and signed a concerted before and after the
have been
Ltd. action agreement with another transaction
transferred to
shareholder holding 11%, thus
the Company
obtaining control.
(Continued)
Income of the
Net profit of the
acquiree from the Income of the Net profit of the
acquiree from the
beginning of the acquiree during acquiree during
Name of acquiree beginning of the current
current consolidation the comparison the comparison
consolidation period to
period to the period period
the consolidation date
consolidation date
HAIER
NEWZEALAND
INVESTMENT
3,132,068,605.17 -59,996,214.21 5,524,659,014.17 249,854,563.21
HOLDING
COMPANY
LIMITED
Qingdao Jushanghui
Network
21,266,455.08 203,794.51 16,383,548.22 -7,733,762.20
Technology Co.,
Ltd.
（2）Acquisition cost
HAIER NEWZEALAND
Qingdao Jushanghui Network
Items INVESTMENT HOLDING
Technology Co., Ltd.
COMPANY LIMITED
------Cash $303,040,997.28 50,000,000.00
（3）Acquiree’s assets and liabilities
HAIER NEWZEALAND INVESTMENT HOLDING COMPANY
Items LIMITED
Acquisition date Opening Balance
Cash and cash equivalents 611,464,970.55 622,840,949.40
Accounts receivable 813,986,897.45 670,770,260.05
Prepayments 28,465,298.52 38,198,663.14
Other receivables 7,005,819.42 14,876,457.03
Inventories 1,235,895,814.00 1,034,092,417.69
Long term receivables 250,766,874.46 289,785,899.38
Fixed assets 1,306,966,016.81 1,128,821,693.06
Construction materials 110,802,662.56 80,224,904.43
Intangible assets 1,148,112,030.96 1,221,047,084.73
Goodwill 503,495,869.74 501,299,229.69
Deferred income tax assets 362,395,277.36 181,422,225.45
other assets 99,447,519.13 116,358,332.75
accounts payables -1,327,485,225.53 -822,059,589.75
Taxes payables -16,402,462.37 -60,884,850.08
Other payables -95,058,729.98 -107,715,659.91
Non-current liabilities due in
-3,383,613,879.72 -3,298,977,981.65
one year
Other liabilities -285,879,057.51 -409,267,764.36
Estimated liabilities -75,804,646.13 -41,089,103.02
Deferred income tax liabilities -219,538,926.19 -64,731,465.99
Other non-current liabilities -31,481,834.05 -26,548,594.20
Net assets obtained 1,043,540,289.48 1,068,463,107.84
Minority equity interests
Net assets obtained 1,043,540,289.48 1,068,463,107.84
(Continued)
Qingdao Jushanghui Network Technology Co., Ltd.
Items
Acquisition date Opening Balance
Cash and cash equivalents 41,441,583.10 30,119,757.11
Accounts receivable 615,908.70 924,226.82
Other receivables 5,637,244.00 5,640,277.02
Other current assets 147,215.02 901,871.05
Fixed assets 22,792.03 45,584.05
Intangible assets 270,447.69 326,402.37
Accounts payables -27,871.78 -1,818,627.66
Receipts in advance -173,368.26 -391,983.02
Employee benefits -1,787,201.83
Taxes payables -33,723.16 -32,809.36
Other payables -23,476,102.87 -9,707,166.59
Net assets obtained 24,424,124.47 24,220,329.96
Less：Minority equity interests
Net assets obtained 24,424,124.47 24,220,329.96
③Disposal of subsidiary
Whether there is a single disposal of the investment in the subsidiary (that is, the loss of control )
Jiangsu Goodaymart Changle
Sunflower Supply Shengfeng Logistics Shengfeng
Items
Chain Management Co., GroupCo., Ltd Logistics Co.,
Ltd. Ltd.
Equity disposal price 715,469.69 692,344,595.00 1,800,000.00
Proportion of disposal 51.00% 50.37% 55.17%
Method Disposal Disposal Disposal
Basis of determination of date of
2018/5/30 2018/11/30
loss-of-control
Basis of determination of date of
Disposal Disposal Disposal
loss-of-control
Difference between consideration
and its share of net assets of the
241,648.70 79,836,157.88 1,800,000.00
subsidiary as respect to the
disposal in the consolidated level
(Continued)
Shandong
Hunan Goodaymart Fujian Goodaymart
Items Goodaymart
Electric Co., Ltd. Electric Co., Ltd.
Electric Co., Ltd.
Equity disposal price 8,935,689.67 17,078,925.15 5,018,536.53
Proportion of disposal 100.00% 81.00% 81.00%
Method Liquidation Disposal Disposal
Basis of determination of date of
2018/10/18 2018/12/31 2018/12/31
loss-of-control
Basis of determination of date of
Liquidation Disposal Disposal
loss-of-control
Difference between consideration
and its share of net assets of the
-281,373.03 -2,323,022.83
subsidiary as respect to the
disposal in the consolidated level
(Continued)
Hefei Haice
Beijing Yihao
Hefei Hailan Appliance Appliance
Items Technology Co.,
Manufacturing Co., Ltd. Manufacturing Co.,
Ltd.
Ltd.
Equity disposal price 30,000,000.00
Proportion of disposal 16.65%
Method Liquidation Liquidation Disposal
Date of loss-of-control 2018/5/30 2018/5/30 2018/1/1
Basis of determination of date of
Liquidation Liquidation Disposal
loss-of-control
Difference between consideration 28,425,940.85
and its share of net assets of the
subsidiary as respect to the
disposal in the consolidated level
(Continued)
Qingdao Haishengda Qingdao Haizhijie Beijing Creation
Items Refrigeration Electric Refrigeration Co., Mirror Technology
Co., Ltd. Ltd. Co., Ltd.
Consideration
Proportion of disposal 100.00%
Method Liquidation Liquidation Liquidation
Date of loss-of-control 2018/5/30 2018/5/30 2018/12/31
Basis of determination of date of
Liquidation Liquidation Liquidation
loss-of-control
Difference between consideration
and its share of net assets of the
660,799.01
subsidiary as respect to the
disposal in the consolidated level
④ Changes of consolidation scope due to other reasons
（1）Qingdao Haier Intelligent Technology Development Co., Ltd., a subsidiary of the Company,
established a wholly-owned subsidiary Haier (Shanghai) Home Appliance Research and Development
Center Co., Ltd. for the period.
（2） A subsidiary of the Company established a wholly-owned subsidiary Haier (Shenzhen) R&D Co.,
Ltd.for the period with a total shareholding of 100% at the end of the period.
（3）Qingdao Haier Air Conditioner Gen Corp., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Guangzhou Haier Air Conditioner Co., Ltd. for the period.
（4）Haier Industrial Holding Co., Ltd., a subsidiary of the Company, established a wholly-owned
subsidiary Qingdao Haier Institute of Investment Management Co., Ltd. for the period.
（5）Haier Digital Technology (Qingdao) Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Tianjin Haiyun Chuang Digital Technology Co., Ltd. for the period.
（6）Haier Digital Technology (Qingdao) Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Haier Digital Technology (Nanjing) Co., Ltd. for the period.
（7）Haier Digital Technology (Qingdao) Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Haier Digital Technology (Wuxi) Co., Ltd. for the period.
（8）Haier Digital Technology (Qingdao) Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Haier Digital Technology (Xi'an) Co., Ltd. for the period.
（9）MANIIQ(SINGAPORE)INTELLIGENTEQUIPMENTCO.LTD., a subsidiary of the Company,
established a wholly-owned subsidiary Facteon Intelligent Technology (Qingdao) Co., Ltd. for the
period.
（10）Qingdao Haier Technology Investment Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Qingdao Yunshang Yuyi Technology Co., Ltd. for the period with a
shareholding of 70% at the end of the period.
（11）Qingdao Haier Technology Investment Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Haiyu (Shanghai) Intelligent Technology Co., Ltd. for the period with a
shareholding of 70% at the end of the period.
（12）Qingdao Haier Intelligent Electronics Co., Ltd.., a subsidiary of the Company, established a
wholly-owned subsidiary Tianjin Haier Zhikong Electronics Co., Ltd. for the period.
（13）Qingdao Haier Intelligent Electronics Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Hefei Haier Intelligent Electronics Co., Ltd. for the period.
（14）Qingdao Haier Technology Investment Co., Ltd., a subsidiary of the Company, established a
wholly-owned subsidiary Qingdao Haizhi Investment Management Co., Ltd. for the period.
