2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Stock Code: 600690 Short Name: Haier Smart Home
Haier Smart Home Co., Ltd.
2020 Third Quarterly Report
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Contents
Ⅰ.IMPORTANT NOTICE ......................................................................................................................... 3
Ⅱ.COMPANY PROFILE .......................................................................................................................... 3
Ⅲ.SIGNIFICANT EVENTS ...................................................................................................................... 7
Ⅳ.APPENDIX .......................................................................................................................................... 16
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
I. IMPORTANT NOTICE
1.1 The Board of Directors, the Board of Supervisors, and the directors, supervisors and senior
management of Haier Smart Home Co., Ltd. (“the Company”) assure that the content set out in the
quarterly report is true, accurate and complete, and free from any false record, misleading
representation or material omission, and are individually and collectively responsible for the
content set out therein.
1.2 All the directors of the Company attended the board meeting and reviewed the quarterly report.
1.3 Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of the
Company) and Ying Ke (the person in charge of accounting department) hereby certify that the
financial statements set out in the quarterly report are true, accurate and complete.
1.4 The third quarterly report of the Company has not been audited.
II. COMPANY PROFILE
2.1 Key financial data
Unit and Currency: RMB
At the end of last year Increase/decrease at
the end of the
At the end of the
After the adjustment Before the reporting period
reporting period
adjustment compared with the
end of last year (%)
Total assets 200,206,564,161.26 187,454,236,283.17 187,454,236,283.17 6.80
Net assets
attributable
to
shareholders 50,439,076,950.23 47,888,319,765.92 47,888,319,765.92 5.33
of
listed
companies
At the beginning of At the beginning of last year to the end of Yoy change (%)
the year to the end the reporting period of last year
of the reporting (January to September)
period
(January to After the adjustment Before the
September)
adjustment
Net cash
flows 5,711,204,674.45 8,476,037,239.40 9,006,912,568.45 -32.62
from
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
operating
activities
At the beginning of At the beginning of last year to the end of
the year to the end the reporting period of last year
of the reporting (January to September)
Yoy change (%)
period (January to
September) After the adjustment Before the
adjustment
Operating
154,411,813,689.44 150,232,288,468.02 148,896,109,856.46 2.78
revenue
Net profits
attributable
to
shareholders 6,300,507,503.54 7,612,154,769.74 7,772,860,902.81 -17.23
of
listed
companies
Net profits
after
deduction of
non-recurrin
g
profit or loss
4,092,358,135.73 5,656,439,855.74 5,834,398,305.26 -27.65
attributable
to
shareholders
of
listed
companies
Weighted Decreased by 4.99
average percentage
12.71 17.70 18.17
return on net points
assets (%)
Basic
earnings
per share 0.958 1.195 1.221 -19.83
(RMB
per share)
Diluted
earnings
per share 0.939 1.107 1.131 -15.18
(RMB
per share)
During the reporting period, the Company adhered to the direction of IoT smart home eco
brand strategy, leveraging advantages such as leading product packages, high-end brands, retail
transformation, global operation and Smart Home Experiential Cloud, to continuously expand its
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
leading position in the global market. The quarterly revenue, net profit attributable to owners of the
Parent Company and the net profit after deducting that are not attributable to the Parent Company
of the Company increased by 16.9%, 37.8% and 43.3%, respectively, in the third quarter of 2020.
On 11 September 2020, the Company further launched Three winged Bird (三翼鸟), the first
scenario brand in the world, aiming at providing users with smart home full scenario solutions,
leading the scenario-based, intelligent and one-stop consumer trend of home appliances and
household and accelerating the transformation and upgrade from selling product to providing
tailored scenario.
Performance of Key Indicators.
(I) Revenue.
The revenue for the first three quarters of the Company was RMB154.41 billion, representing
an increase of 2.8%; the quarterly revenue in the third quarter was RMB58.68 billion, representing
an increase of 16.9%, of which, revenue from China increased by 16.3% and revenue from overseas
increased by 17.5%.
The increase of revenue was mainly attributable to:
(1) Domestic market. The Company focused on the construction of retail system with direct
access to users, and improved efficiency through four reconstructions of “goals, processes,
organizations and mechanisms” as well as further digital operation transformation of “products,
marketing, services, logistics, customer and user”. The Company also improved user’s experiences
and amplified user’s value through smart home scenario solutions. For the prospective of product
type:
① Refrigerator. With the trend of consumer demand and retail touch-point diversification,
the Company, focusing on the users’ demand for healthy life scenarios in the post-epidemic period,
kept iterating the product lineup and operation model, with technologies including full-space
preservation and extreme preservation leading the industry development, launched bestsellers
online and offline for different groups of users and achieved network-wide integration by online
live broadcast and offline streaming and refined store operation, promoting revenue growth and
share expansion, in addition, Casarte continued to expand its share of high-end refrigerators, and
had 49.3% market share of the products priced above RMB15,000.
From January to September 2020, the online and offline market share by sales revenue was
35.1% and 38.9%, representing an increase of 1.3 percentage points and 2.3 percentage points,
respectively.
② Washing machine. The Company focused on structural upgrade and achieved a
year-on-year increase in average selling price in the third quarter through launching mid-range and
high-end products via e-commerce and KA channels, the introduction of the sixth generation Yunxi
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products via exclusive store channel, and other measures to increase average prices in township
markets. The Company improved efficiency of network operation through various measures, such
as classified and hierarchical management of downstream channels, and integration of online and
offline operations. The Company improved Casarte products market share by means of product
iteration, upgrade users experience with air wash and marketing activities such as Baiwan Shuangzi,
with an accumulative share of 11.8% offline, representing an increase of 3 percentage points. The
Company also launched the online IP “Happy Chick” Leader brand washing machines, sped up
layout of chain channels and built an all network retail system, with an online share of 5%,
representing an increase of 1.3 percentage points year on year. In addition, the Company
accelerated the sales tumble dryer through differentiated offerings such as washing and drying
package as well as upgrading and rebuilding balcony, so as to create business increments.
From January to September 2020, the online and offline market share by sales revenue was
39.4% and 39.9%, representing an increase of 4.6 percentage points and 3.8 percentage points,
respectively.
③ Air conditioner. Based on consumers' growing concerns for health and fresh air, the
Company developed 3D sterilization technology, water-washed air and other new technologies,
created clean, fresh and moist health experience and build the brand recognition of “Choose Haier
for Healthy Air”. Focusing on improving operation capability and optimizing the efficiency of
procurement, R&D and manufacturing, the Company reduced the number of SKUs and improved
the efficiency of single models through optimization of outdoor machine platform, procurement
standardization and modularization, while continuous efforts have been made to consolidate
distribution network with direct consumer access and cover the weak market areas through the
Smart Home Cloud model. Leverage on multiple brand portfolios, the Company expanded its user
coverage through the strategy of “high-end leadership of Casarte, scale introduction of Haier and
customized focus of Leader”. The revenue of air-conditioners business for the third quarter
increased by 27%.
From January to September 2020, the online and offline market share by sales revenue was
11.2% and 14.5%, representing an increase of 2.5 percentage points and 2.3 percentage points,
respectively. In particular, shares of Casarte air-conditioners increased from 1.2% to 3.7%.
④ Water heater. Through the proactive marketing strategies and relying on the brand
portfolio of "Haier, Casarte, Leader", the Company continued to gain market share. The Company
expanded presence in new channels including heating & ventilation, building materials, hardware
and water heating, so as to broaden consumer base; focusing on old and renovated residential
communities, the Company attracted new users by organization activities in thousands of groups in
thousands of areas and recruiting service partners; and the Company focused on designers and
home improvement channels to enhance new users recognition. The Company invested more
resources to Casarte, whose revenue growth reached 80% in the first three quarters.
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From January to September 2020, the online and offline market share by sales revenue was
26.4% and 23.8%, representing an increase of 2.8 percentage points and 3.6 percentage points,
respectively.
⑤ Kitchen appliances. The Company adhered to a high-end and whole-set product strategy
and created terminal scenario experience to meet users’ needs for whole-set and intelligent scenario
solutions. The Company launched products including “12-m2 Smart Air” range hoods with
self-adaptive air volume, “3D oxygen-increasing” gas stoves with precise temperature control, and
built-in ovens featuring temperature and humidity control/active humidity control. Through the
combination of the Casarte “Gourmet” system and the Haier “Dual-protection” system, the
Company achieved market differentiation and increased the proportion of high-end sets, with the
revenue from Casarte kitchen appliances in the first nine months exceeding 50%. The Company
achieved network and retail transformation by accelerating the construction of franchised stores in
towns, realizing multi-port distribution through online and downstream channels, and expanding
construction channel. In addition, the Company provided users with one-stop home cooking
solutions through “Three winged Bird Kitchen” and “Smart Cooking”, and accelerated marketing
through participating in small home renovation projects. From January to September 2020, market
share by sales revenue was 5.6%, representing an increase of 0.2 percentage point.
(2) Overseas Market.
The RenDanHeYi mechanism ensured the rapid response of small and micro enterprises in all
regions to the challenges of the epidemic. Giving full play to the advantages in global resources
allocation based on global procurement, supply chain and R&D platforms, we overcame the adverse
impact brought by external environment, thereby achieved the sustainable development of our
business. We have achieved a comprehensive leading position with proprietary brands and ranked
in TOP3 in the three categories (refrigeration, washing, air) in more than 20 countries. The profit of
overseas operation for the third quarter increased by 58%.
① Global factories adhered to the normal epidemic prevention and resumption of work and
production, overcame the shortage of parts, labor shortages and other risks and made all efforts to
meet the order demand. ② In respect of local marketing, we accelerated the upgrading of offline
touch-points and expanded online channels, explored new online sales models and made great
efforts in overseas Experience Cloud model, to accelerate the transformation from selling product to
creating experience premium and enhance performance and the brand’s. For example, in the
European market, the Company has entered the TOP3 e-commerce channels in various countries, in
Australian market, the Company was listed in the brand section in 5 major mainstream online
channels, with its online sales doubled.
(II) Gross Margin.
Our gross margin was 28.0% for the first three quarters, representing a decrease of 0.78
percentage point. Our gross margin in the third quarter was 28.1%, representing a decrease of 0.31
percentage point.
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(1) Domestic market. Affected by such factors as the increase in the proportion of the
industry’s online channels and intensified competition, the industry average price remained under
downward pressure in the third quarter, but its decrease gradually narrowed as compared with the
first and second quarters. Domestic gross margin in the third quarter still declined year-on-year but
the decrease narrowed as compared with the first half of the year. In the third quarter, the Company
increased the revenue from Casarte products by 22% in the third quarter by launching more
mid-to-high-end products, contributing to the improvement of gross margin. In addition, the
Company optimized the supplier network and developed resources to achieve a balance between
price and quality on the procurement side, and improved manufacturing efficiency by optimizing
the layout of production areas, promoting flexible manufacturing, and continuously streamlining
SKUs on the manufacturing side.
(2) Overseas market. Affected by such factors as the rapid growth in the revenue in the third
quarter, rapid increase in the proportion of global leading product categories in line with the
development trend toward large-volume and healthy home appliances and the improvement in
manufacturing efficiency of overseas factories, the gross margin increased significantly in the third
quarter. ① Leadership in high-end products. In European market, the series of high-end
refrigerators with T-shaped doors and French refrigerators were simultaneously put on market in
many countries and regions, consolidating our Top 1 market share in Western Europe in respect of
multi-door refrigerators. The price index of Haier refrigerators in major Western European
countries from January to September amounted to 140, and the average unit price increased by
EUR78. Brand new series of Washing 979 and the series of high-end direct-drive super-quiet were
launched, and the price index of washing machines from January to September staged a
year-on-year increase of 16%. In Japanese market, AQUA refrigerators launched brand new Delie
products via iterative TZ ultrathin popular products. Retail sales of super-large refrigerators bucked
the trend by increasing 41%. ② Manufacturing efficiency improvement. Haier refrigerator
factory in Russia improved production efficiency by 9% through Line of Balance and other
measures; Pakistan factory improved its quality by more than 10% by introducing new technologies
and optimizing the quality system; carried out lean production and optimized the manufacturing
expense efficiency by 12%.
(III) Expense Rate.
(1) The selling expense ratio of the Company was 15.1% in the first three quarters,
representing a decrease of 0.1 percentage point year on year. Among which, the selling expense
ratio in the third quarter was 15.1%, representing a decrease of 1 percentage point year on year.
With the implementation of a series of measures to reduce fees and improve efficiency this year, the
selling expense ratio is gradually optimized.
① Domestic market. We promoted process reshaping and digital transformation and
achieved improvements of organization efficiency by simplifying processes and eliminating process
for management and control; we achieved cost efficiency through the digitalization of marketing
activities and users management. The domestic sales expense ratio of the third quarter decreased by
1.4 percentage points.
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② Overseas market. We advanced the establishment of terminal information system, so as to
improve operating efficiency. We also improved input-output through lean saving plan and other
measures.
(2) The management expense ratio of the Company was 4.6% in the first three quarters,
representing a decrease of 0.01 percentage point year on year. Among which, the management
expense ratio in the third quarter was 4.2%, representing a decrease of 0.5 percentage point year on
year. The decrease in management expense ratio is mainly resulted from the improved efficiency of
organization operation.
(3) The research and development expense ratio of the Company was 3.2% in the first three
quarters, representing an increase of 0.3 percentage point year on year, among which, the research
and development expense ratio in the third quarter was 3.5%, representing an increase of 0.2
percentage point year on year. It is mainly due to the Company's promotion of its intelligent
competitiveness and the increase in investment in APP, voice control, image recognition, big data
applications, as well as related advanced research and development technologies.
(IV) Ecosystem Scenario Brand Construction.
In September 2020, the Company launched Three winged Bird (三翼鸟), the first scenario
brand in the world, which is based on three cores abilities: "Global Leading Explosive Scenario
Solutions", "Implementing Guarantee 1+N Capability" and "The Industry's Only Experiential Cloud
Platform", working with the ecological side to promote the home Internet of Things into thousands
of households to provide users with smart home full scenario solutions covering balcony, kitchen,
living room, bathroom, bedroom, whole house air, etc., and full scenario update services of whole
house renovation and partly transformation, it developed a new track from selling products to
customized scenario services. The Company has arranged 260 Haier No. 001 stores and four offline
experience centers. Through more than 30,000 offline networks, more than 6,000 service butlers
and more than 9,000 resource providers, the Company facilitated the nationwide application of
Three winged Bird scenario solutions.
From January to September in 2020, the ecological revenue of the Company was RMB7.2
billion, representing an increase of 114%, among which, the ecological revenue of the third quarter
was RMB3.4 billion, representing an increase of 138% year on year. From January to September,
the sales of scenario solutions was 687,000 sets, staging a year-on-year increase of 24.5%; network
appliance binding volume increased by 116%; in September 2020, daily active users of Haier Smart
Home APP staged a year-on-year increase of 225%.
Non-recurring profit or loss items and amount
√Applicable □Not Applicable
Unit and Currency: RMB
Items Amount for the current Amount for the beginning of the
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period year to the end of the reporting
(July to September) period (January to September)
Profit or loss from disposal of non-current
-42,625,336.34 -54,002,412.43
assets
Government grants included in current
profit or loss, except that closely related
to the normal operating business of the
Company, complied with requirements of 314,809,133.16 705,610,813.42
the national policies, continued to be
granted with the amount and quantity
determined under certain standards
Profit and loss of changes in fair value
arising from holding of financial assets
held for trading, derivative financial
assets, financial liabilities held for trading
and derivative financial liabilities except
for valid straddle business relevant to
normal business of the Company, as well 62,563,869.87 46,537,840.38
as investment gain realized from disposal
of financial assets held for trading,
derivative financial assets, financial
liabilities held for trading, derivative
financial liabilities and other debt
investments
Other non-operating income and expenses
-24,102,076.04 -13,751,473.89
except for the aforementioned items
Profit from disposal of long-term equity
2,267,620,952.48 2,267,421,126.83
investments
Impact on minority interests (after tax) -234,662,122.80 -364,743,321.11
Impact on income tax -346,815,267.65 -378,923,205.39
Total 1,996,789,152.68 2,208,149,367.81
2.2 Table of total number of shareholders, top ten shareholders, top ten common shareholders (or the
shareholders without selling restrictions) by the end of the reporting period
Unit: Share
Total number of shareholders 142,184
Shareholdings of top ten shareholders
Number of Status of shares
Number of
Perce shares held pledged or frozen Nature of
Name of shareholder shares held at
ntage subject to shareholde
(full name) the end of the Num
(%) selling Status r
period ber
restrictions
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Domestic
Haier Electric non-state-
Appliances 1,258,684,824 19.13 Nil owned
International Co., Ltd. legal
entity
Domestic
non-state-
Haier Group
1,072,610,764 16.30 Nil owned
Corporation
legal
entity
Hong Kong Securities
Clearing Company 547,189,119 8.32 Nil Unknown
Limited
China Securities
Finance Corporation 182,592,697 2.78 Nil Unknown
Limited
Domestic
Qingdao Haier Venture non-state-
& Investment 172,252,560 2.62 Nil owned
Information Co., Ltd. legal
entity
Foreign
GIC PRIVATE
114,053,758 1.73 Nil legal
LIMITED
entity
Foreign
CLEARSTREAM
91,168,350 1.39 Nil legal
BANKING S.A. (Note)
entity
Domestic
Qingdao Haichuangzhi
non-state-
Management
73,011,000 1.11 Nil owned
Consulting Enterprise
legal
(Limited Partnership)
entity
Central Huijin Asset
69,539,900 1.06 Nil Unknown
Management Ltd.
National Social Unknown
Security Fund Portfolio 65,793,903 1.00 Nil
113
Shareholdings of top ten shareholders not subject to selling restrictions
Number of Class and number of shares
tradable shares
Name of shareholder
held not subject to Class Number
selling restrictions
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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 Company
547,189,119 RMB ordinary 547,189,119
Limited
China Securities Finance Corporation
182,592,697 RMB ordinary 182,592,697
Limited
Qingdao Haier Venture & Investment
172,252,560 RMB ordinary 172,252,560
Information Co., Ltd.
GIC PRIVATE LIMITED 114,053,758 RMB ordinary 114,053,758
CLEARSTREAM BANKING S.A. Overseas listed
91,168,350 91,168,350
(Note) foreign shares
Qingdao Haichuangzhi Management
Consulting Enterprise (Limited 73,011,000 RMB ordinary 73,011,000
Partnership)
Central Huijin Asset Management Ltd. 69,539,900 RMB ordinary 69,539,900
National Social Security Fund Portfolio
65,793,903 RMB ordinary 65,793,903
113
(1) Haier Electric Appliances International Co., Ltd. is a
holding subsidiary of Haier Group Corporation. Haier
Group Corporation holds 51.20% of its equity. Qingdao
Haier Venture & Investment Information Co., Ltd. (青岛海
Explanation of related-parties or parties
尔创业投资咨询有限公司) and Qingdao Haichuangzhi
acting in concert among the aforesaid
Management Consulting Enterprise (Limited Partnership)
shareholders
(青岛海创智管理咨询企业(有限合伙)) are parties acting
in concert with Haier Group Corporation;
(2) The Company is not aware of the existence of any
connections of other shareholders.
Explanation of preferential shareholders
with restoration of voting rights and their Not applicable
shareholdings
Note: (1) This account is the Clearstream Banking collection account for the Company's D shares,
which is the original data provided by the German securities registration agency to the Company after
the merger according to local market practices and technical settings, not representing the ultimate
shareholder. (2) 57,142,857 shares in this account are held by Haier International Co., Limited, the
concerted actor of the Company’s ultimate controller Haier Group Corporation, accounting for 0.87% of
the Company's total share capital.
2.3 Table of total number of preferential shareholders, top ten preferential shareholders, top ten
preferential shareholders without selling restrictions by the end of the reporting period
□Applicable √Not Applicable
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III. SIGNIFICANT EVENTS
3.1 The major changes of and reasons for the key items of accounting statement and financial
indicators
√Applicable □ Not Applicable
1) Financial assets held for trading increased by 561.87% as compared to the beginning of
the period, mainly due to the increase of the short-term wealth management products;
2) Derivative financial assets increased by 251.00% as compared to the beginning of the
period, mainly due to the increase of forward foreign exchange contacts in the period;
3) Accounts receivable increased by 51.31% as compared to the beginning of the period,
mainly due to the increase in revenue scale;
4) Other current assets decreased by 57.63% as compared to the beginning of the period,
mainly due to the decrease of the wealth management products measured at amortized cost;
5) Other equity instruments investments increased by 90.02% as compared to the beginning
of the period, mainly due to changes in the equity of the subsidiary, namely the investment in the
subsidiary was adjusted to other equity instruments investments;
6) Other non-current financial assets decreased by 100.00% as compared to the beginning of
the period, mainly due to the reclassification of wealth management due within one year to
financial assets held for trading;
7) Construction in progress increased by 42.20% as compared to the beginning of the period,
mainly due to the increase in plant under construction and equipment;
8) Financial liabilities held for trading decreased by 99.62% as compared to the beginning of
the period, mainly due to the expiration of the locked exchange rate instruments;
9) Derivative financial liabilities increased by 86.29% as compared to the beginning of the
period, mainly due to the increase in interest rate swap agreements and forward foreign exchange
contracts;
10) Taxes payable increased by 50.42% as compared to the beginning of the period, mainly
due to the income tax on the investment income of the change in the equity of subsidiaries;
11) Other current liabilities increased by 1121.10% as compared to the beginning of the
period, mainly due to the Company’s issuance of ultra-short-term financing bonds for financing;
12) Deferred income decreased by 35.05% as compared to the beginning of the period,
mainly due to the change in the equity of subsidiaries;
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13) Deferred income tax liabilities increased by 35.46% as compared to the beginning of the
period, mainly due to the change in the equity of subsidiaries;
14) Other comprehensive income decreased by 124.56% as compared to the beginning of the
period, mainly due to the exchange differences on translation of statements denominated in foreign
currencies;
15) Taxes and surcharges decreased by 31.62% as compared to the same period of last year,
mainly due to the change of value-added tax rate, which decreased from 16% to 13% since 1 April
2019;
16) Other income increased by 40.25% as compared to the same period of last year, mainly
due to the increase of government grants in the period;
17) Gains on change of fair value decreased by 54.79% as compared to the same period of
last year, mainly due to the decrease of fair value in forward foreign exchange contacts in the
period as compared to the same period of last year;
18) Loss on credit impairment increased by 231.53% as compared to the same period of last
year, mainly due to the increase in bad debt loss of accounts receivable in the period;
19) Loss in assets impairment increased by 182.63% as compared to the same period of last
year, mainly due to the increase in the provision of loss in inventory impairment in the period;
20) Gain from disposal of assets decreased by 271.97% as compared to the same period of
last year, mainly due to the recognition of loss from disposal of non-current assets in the period;
21) Non-operating income decreased by 77.13% as compared to the same period of last year,
mainly due to the decrease of the fine income in the period compared to the same period of last
year;
22) Non-operating expense decreased by 30.74% as compared to the same period of last year,
mainly due to the decrease of one-off expenses recognized in the period;
23) Net cash flows from operating activities decreased by 32.62% as compared to the same
period of last year, mainly due to the decrease caused by the impact of COVID-19 in the first
quarter, and mostly offset by the year-on-year improvement in cash flows in the second and third
quarters;
24) Net cash flows from investing activities increased by 69.98% as compared to the same
period of last year, mainly due to the cash inflow from the disposal of subsidiaries, the redemption
of wealth management products in the period, as well as the cash outflow from expense resulting
from the acquisition of Candy in the same period of last year and the cash outflow from the
purchase of wealth management products;
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25) Net cash flows from financing activities increased by 560.13% as compared to the same
period of last year, mainly due to the increase of borrowings in the period and issuance of
ultra-short-term financing bonds.
3.2 Analysis on the progress of significant events and their impact and solution
√Applicable □ Not Applicable
(1) External guarantees: By the end of the reporting period, the external guarantees provided by
the Company and its subsidiaries were guarantees between the Company and its subsidiaries, the total
balance of which amounted to RMB33.624 billion (among which, the balance of the guarantee provided
for the loan fund for acquisition of GEA was RMB4.795 billion and the balance of daily business
guarantees was RMB28.830 billion), accounting for 66.7% of the Company’s latest net assets and 16.8%
of the latest total assets.
(2) Foreign exchange derivative: By the end of the reporting period, the aggregate balance of the
Company’s foreign exchange derivative transactions amounted to approximately USD1.505 billion.
(3) Entrusted wealth management: By the end of the reporting period, the balance of the
Company’s entrusted wealth management amounted to RMB2.441 billion, including three parts: ①
temporarily-idle fund-raising wealth management: at the end of December 2018, the Company’s
proceeds for the issuance of convertible corporate bonds were fully landed. In order to improve the yield
of temporarily-idle funds, the Company intended to carry out cash management with the amounts not
exceed RMB0.7 billion after approved by the Board of Directors. By the end of the reporting period, the
balance of the entrusted wealth management amounted to RMB542 million; ②wealth management of
the Company’s Hong Kong listed subsidiary: Haier Electronics Group Co., Ltd. (hereinafter referred
to as “Haier Electronics”, stock code: “01169.HK”), the holding subsidiary of the Company, has
purchased some short-term principal-protected wealth management and structural deposits from the
large commercial banks as an independently operating Hong Kong listed company in order to increase
the efficiency of the use of idle funds within the authorities of the management and on the premise of
safeguarding funds security. In the purchase process, all the necessary board reports were subject to the
procedures such as filling and management’s review according to the regulations requirements for Hong
Kong listed company, so as to ensure sufficient funds for the day-to-day operations of the main business
and improve the shareholders’ returns. By the end of the reporting period, the balance of the entrusted
wealth management amounted to RMB1.894 billion. ③Temporary-idle funds wealth management
by certain subsidiaries of the Company: In order to improve the yield of temporarily-idle funds, some
subsidiaries of the Company use temporarily-idle funds for cash management within the authority of the
general manager’s office meeting. By the end of the reporting period, the balance of the entrusted wealth
management amounted to RMB5 million.
(4) The progress on the matters of privatization of Haier Electronics: On 12 December 2019,
the Company announced the preliminary discussion on the implementation of H-share listing and
privatization of Haier Electronics. On 30 July 2020, the board of directors of the Company considered
and approved the relevant plans and disclosed the Report on Material Asset Purchase and Related
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Transactions of Haier Smart Home Co., Ltd. (Draft) and relevant documents. Up to now, the Company
is continuing to advance the relevant matters and will continue to disclose when the relevant node
progress achieved according to the relevant requirements.
(5) The progress on the matters of transfer of COSMO’s equity: On 30 July 2020, the Company
disclosed the relevant announcement on the transfer of 54.50% of equity of Haier COSMOPlat IOT
Ecosystem Technology Co., Ltd. and related transactions. By the end of the reporting period, the equity
transfer has been completed.
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
3.3 Undertakings not performed as scheduled during the reporting period
□Applicable √Not Applicable
By the end of the reporting period, the Company had no undertakings not performed as scheduled. The undertakings in performance are as follows:
Whether
Any
Date and performe
Background deadline
Type of term of d in a
of Covenanter Contents of undertakings for
undertakings undertaking timely
undertakings performanc
s and strict
e
way
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 (合肥海尔空调器有限公司),
Undertaking
Eliminate Wuhan Haier Electronics Co., Ltd. (武汉海尔电器股份有限公司),
related to 27
the right Guizhou Haier Electronics Co., Ltd. (贵州海尔电器有限公司). With
significant Haier Group September
defects in regard to the land and property required in the operation of Qingdao Haier Yes Yes
asset Corporation 2006,
land Air-Conditioner Electronics Co., Ltd., Hefei Haier Air-conditioning Co.,
reorganizatio long-term
property etc. Limited, Wuhan Haier Electronics Co., Ltd. (the “Covenantees”), Haier
n
Group made an undertaking (the “2006 Undertaking”). According to the
content of 2006 Undertaking and current 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
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
unavailability of such land and property.
Haier Group Corporation undertakes that it will assure HSH and its
subsidiaries of the constant, stable and unobstructed use of the leased
property. In the event that HSH 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 measures to assure HSH and its subsidiaries of priority to
continue to lease the property at a price not higher than the rent in
Eliminate
comparable market at that time. Haier Group Corporation will assure HSH 24
Undertaking the right
Haier Group and its subsidiaries of the constant, stable, free and unobstructed use of December
related to defects in Yes Yes
Corporation self-built property and land of the Group. In the event that HSH or any of 2013,
refinancing land
its subsidiaries fails to continue to use self-built property according to its long-term
property etc.
own will or in original way due to the fact that self-built property has no
relevant ownership certificate, Haier Group Corporation will take all
reasonable and practicable measures to eliminate obstruction and impact,
or will support HSH 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 (L2014-005) published by the Company on the four major
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
securities newspapers and the website of SSE on 29 March 2014.
The Company undertakes that it will eliminate the property defects of the
Company and main subsidiaries within five years with reasonable business
effort since 24 December 2013, to achieve the legality and compliance of
the Company and main subsidiaries in terms of land and property. For
details, please refer to the Announcement of Qingdao Haier Co., Ltd. on
the Formation, Current Situation of the Defective Property, the Influence
on Operation of Issuer Caused by Uncertainty of Ownership, Solution for
the Defect and Guarantee Measures (L2014-005) published by the
Company on the four major securities newspapers and the website of SSE
on 29 March 2014. During the aforesaid period, the Company has
formulated relevant performance guarantee measures, including the
Eliminate
re-application by the Company and its main subsidiaries to the competent 24
the right Haier Smart
government department for the property ownership certificate and to December
defects in Home Co., Yes Yes
procure Haier Group Corporation to make guarantee undertakings in 2013, eight
land Ltd.
respect of the defective property with land ownership owned by it and its years
property etc.
subsidiaries. As of the expiration date, the Company has resolved the
property defects of itself and its eight major subsidiaries, while that of the
other remaining five major subsidiaries is in process. The Company will
make reasonable business efforts to resolve the property defects of these
five major subsidiaries. Because of historical issues and other reasons, the
approval procedure involved in solving some defective property problems
is complicated, including that of multiple government departments, and it
takes a long time to handle and coordinate related matters. Due to the
above external factors, the Company was unable to complete the above
undertakings within the original undertaking period. Therefore, after the
approval of the board meeting held by the Company on 5 November 2018
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
and the general meeting held on 21 December 2018, the term of the above
undertakings was extended for three years based on the original deadline.
Inject the assets of Haier Photoelectric to the Company or dispose such
assets through other ways according to the requirements of the domestic
supervision before June 2025. For more details, please refer to the December
Other Asset Haier Group
Announcement of Haier Smart Home Co., Ltd. on the Changes of Some 2015 to Yes Yes
undertakings injection Corporation
Undertakings on Asset Injection of Haier Group Corporation (L2020-024) June 2025
published on the four major securities newspapers and the website of SSE
on 30 April 2020.
In August 2018, Guanmei (Shanghai) Enterprise Management Company
Limited (贯美(上海)企业管理有限公司) (hereinafter referred to as
“Guanmei”), an indirect holding subsidiary of the Company replaced the
55% equity interests of Bingji (Shanghai) Enterprise Management
Company Limited (冰戟(上海)企业管理有限公司) held by it with the
51% equity interests of Qingdao Haishi Water Equipment Co., Ltd.
(hereinafter referred to as “Water Equipment”) held by Haier Electric
Profit Haier Electric Appliances International Co., Ltd. (hereinafter referred to as “Haier
Other forecast and Appliances International”). In this regard, Haier International promises that the As of 30
Yes Yes
undertakings compensatio International cumulative actual net profit recorded by the Water Equipment in the three April 2021
n Co., Ltd. accounting years during the profit compensation period shall not be less
than its cumulative forecasted net profit in the corresponding year,
otherwise Haier International shall compensate Guanmei’s results
according to the Assets Replacement Agreement. Details are set out in the
Announcement on Connected Transaction of Planning to Conduct Equity
Replacement by Holding Subsidiary and Haier Electronics International
Co., Ltd. of Qingdao Haier Co., Ltd. (L2018-047) published by the
Company on the four major securities newspapers and the website of SSE
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
on 31 August 2018.
Before this transaction (i.e. the transaction involving in the matters of
HSH’s proposed privatization of HEG, the same as below), HEG was the
Undertaking holding subsidiary of the Company, and there was no horizontal
related to competition between HEG and the Company; after the completion of this
Resolve Haier Smart 31 July
significant transaction, HEG will become the wholly-owned or holding subsidiary of
horizontal Home Co., 2020, Yes Yes
asset the Company (depending on the implementation of the EB Proposal), and
competition Ltd. long-term
reorganizatio there is no or new horizontal competition between HEG and the Company.
n There is no new or potential horizontal competition between the Company
and its controlling shareholder and other related parties controlled by its
actual controller.
The directors, supervisors and senior management of Haier Smart Home
Undertaking Co., Ltd. undertake: in this transaction, during the period from the earlier
Directors, 31 July
related to Undertaking of the date of resumption of trading of HSH Shares and the date of
supervisors 2020,
significant related to issuance of this letter of undertaking to the completion of this transaction,
and senior completion Yes Yes
asset share I have no plan to reduce HSH Shares (if applicable). If I violate the
management of this
reorganizatio reduction aforesaid undertaking so as to cause any loss to HSH or other investors, I
of HSH transaction
n undertake to be liable for compensation to HSH or other investors
according to laws.
1. This transaction constitutes a connected transaction. The connected
Undertaking transaction procedures completed for this transaction are in compliance
related to Haier Electric with relevant regulations, the connected transaction is priced fairly, and
Reduce 29 July
significant Appliances there are no circumstances that harm the interests of the Listed Company
connected 2020, Yes Yes
asset International and non-connected shareholders. 2. After the completion of this
transactions long-term
reorganizatio Co., Ltd. transaction, the Company and its affiliated enterprises will take legal and
n effective measures to minimize and regulate the connected transactions
with the Listed Company and consciously safeguard the interests of the
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Listed Company and all shareholders, and will not take advantage of
connected transactions for improper benefits. 3. Without prejudice to laws
and regulations, if there are any unavoidable or well-grounded connected
transactions between the Company and its affiliated enterprises and the
Listed Company, the Company and its affiliated enterprises will enter into
transaction agreements with the Listed Company according to laws to
ensure they will strictly complete the connected transaction procedures
specified in laws, regulations, regulatory documents and the Articles of
Association, conduct connected transactions at a fair price in accordance
with market-oriented principles to ensure the fairness and compliance of
connected transactions, and will not take advantage of such connected
transactions to engage in any act that harms the interests of the Listed
Company or its minority shareholders, and at the same time, they will
perform the information disclosure obligations in accordance with relevant
regulations.
In this transaction, during the period from the earlier of the date of
Undertaking
resumption of trading of HSH Shares and the date of issuance of this letter 29 July
related to Undertaking Haier Electric
of undertaking to the completion of this transaction, the Company has no 2020,
significant related to Appliances
plan to reduce HSH Shares. If the Company violates the aforesaid completion Yes Yes
asset share International
undertaking so as to cause any loss to HSH or other investors, the of this
reorganizatio reduction Co., Ltd.
Company undertakes to be liable for compensation to HSH or other transaction
n
investors according to laws.
Undertaking 1. This transaction constitutes a connected transaction. The connected
related to Reduce transaction procedures completed for this transaction are in compliance 29 July
Haier Group
significant connected with relevant regulations, the connected transaction is priced fairly, and 2020, Yes Yes
Corporation
asset transactions there are no circumstances that harm the interests of the Listed Company long-term
reorganizatio and non-connected shareholders. 2. After the completion of this
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
n transaction, the Company and its affiliated enterprises will take legal and
effective measures to minimize and regulate the connected transactions
with the Listed Company and consciously safeguard the interests of the
Listed Company and all shareholders, and will not take advantage of
connected transactions for improper benefits. 3. Without prejudice to laws
and regulations, if there are any unavoidable or well-grounded connected
transactions between the Company and its affiliated enterprises and the
Listed Company, the Company and its affiliated enterprises will enter into
transaction agreements with the Listed Company according to laws to
ensure they will strictly complete the connected transaction procedures
specified in laws, regulations, regulatory documents and the Articles of
Association, conduct connected transactions at a fair price in accordance
with market-oriented principles to ensure the fairness and compliance of
connected transactions, and will not take advantage of such connected
transactions to engage in any act that harms the interests of the Listed
Company or its minority shareholders, and at the same time, they will
perform the information disclosure obligations in accordance with relevant
regulations.
1. The Company and the holding subsidiary Haier Electric Appliances
Internationals Co., Ltd. were mainly engaged in investment business
Undertaking
during the reporting period. The Company and the holding subsidiary
related to
Resolve Haier Electric Appliances International Co., Ltd. (including their 29 July
significant Haier Group
horizontal subsidiaries and entities holding more than 30% of its shares) are not 2020, Yes Yes
asset Corporation
competition involved in any existing or potential horizontal competition with HSH; 2. long-term
reorganizatio
The domestic and overseas white goods businesses and assets held by the
ns
Company (including its subsidiaries and entities holding more than 30%
of its shares) have been injected in HSH by way of asset integration and
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
equity transfer in accordance with the undertakings made by the Company
in January 2011 and the requirements for adjustment of such undertakings
considered and approved at the annual general meeting for 2014 of HSH;
3. Since the closing of acquisition of 100% shares of Haier New Zealand
Investment Holding Company Limited, which holds 100% shares of
Fisher & Paykel Appliances Holdings Limited, by Haier Singapore
Investment Holding Co., Ltd., an overseas subsidiary of HSH in July
2018, there has been no horizontal competition between the Company
(including its subsidiaries and entities holding more than 30% of its
shares) and HSH in respect of any business at home and abroad. During
the reporting period, there was no new horizontal competition between the
Company (including its subsidiaries and entities holding more than 30%
of its shares) and HSH; 4. After the completion of this transaction, there is
no new or potential horizontal competition between the Company
(including its subsidiaries and entities holding more than 30% of its
shares) and its affiliated enterprises and HSH; 5. During the period when
the Company is the controlling shareholder of HSH and HSH Shares are
listed on the Hong Kong Stock Exchange, the Company and other
subsidiaries thereof and entities holding more than 30% of its shares will
not engage in any businesses which are in competition with those engaged
in by HSH or run into existing or potential horizontal competition with
HSH.
Undertaking Maintain the After the completion of this transaction, the Company will equally
related to independenc exercise shareholders’ rights and fulfill shareholders’ obligations without 29 July
Haier Group
significant e of the seeking improper benefits by taking advantage of its shareholder status in 2020, Yes Yes
Corporation
asset Listed strict accordance with the Company Law, Securities Law, relevant long-term
reorganizatio Company provisions of China Securities Regulatory Commission and Shanghai
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
n Stock Exchange as well as the Articles of Association of HSH, etc. to keep
the Listed Company completely separate from the Company and other
enterprises under the control or significant influence of the Company in
management, personnel, assets, finance, institution, and business
operations so as to maintain the independence of the Listed Company in
management, personnel, assets, finance, institution and business
operations. After the completion of this transaction, the Company will
regulate the external guarantees of the Listed Company and its
subsidiaries without illegally occupying the funds thereof in compliance
with the Notice on Several Issues concerning Regulating Fund
Transactions between Listed Companies and Their Related Parties and
the External Guarantees of Listed Companies《关于规范上市公司与关联
方资金往来及上市公司对外担保若干问题的通知》 and the Circular of
China Securities Regulatory Commission and China Banking Regulatory
Commission on Regulating the External Guaranties Provided by Listed
Companies《中国证券监督管理委员会、中国银行业监督管理委员会
关于规范上市公司对外担保行为的通知》. The Company undertakes to
strictly fulfill the above undertaking. If the Company and other enterprises
under the control or significant influence of the Company violate the
above undertaking so as to cause any damage to the rights and interests of
the Listed Company, the Company will bear corresponding compensation
liability according to laws.
Undertaking In this transaction, during the period from the earlier of the date of 29 July
Undertaking
related to resumption of trading of HSH Shares and the date of issuance of this letter 2020,
related to Haier Group
significant of undertaking to the completion of this transaction, the Company has no completion Yes Yes
share Corporation
asset plan to reduce HSH Shares. If the Company violates the aforesaid of this
reduction
reorganizatio undertaking so as to cause any loss to HSH or other investors, the transaction
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
n Company undertakes to be liable for compensation to HSH or other
investors according to laws.
In this transaction, during the period from the earlier of the date of
Undertaking
Qingdao Haier resumption of trading of HSH Shares and the date of issuance of this letter 29 July
related to Undertaking
Venture & of undertaking to the completion of this transaction, the Company has no 2020,
significant related to
Investment plan to reduce HSH Shares. If the Company violates the aforesaid completion Yes Yes
asset share
Information undertaking so as to cause any loss to HSH or other investors, the of this
reorganizatio reduction
Co., Ltd. Company undertakes to be liable for compensation to HSH or other transaction
n
investors according to laws.
Qingdao In this transaction, during the period from the earlier of the date of
Undertaking
Haichuangzhi resumption of trading of HSH Shares and the date of issuance of this letter 29 July
related to Undertaking
Management of undertaking to the completion of this transaction, the Company has no 2020,
significant related to
Consulting plan to reduce HSH Shares. If the Company violates the aforesaid completion Yes Yes
asset share
Enterprise undertaking so as to cause any loss to HSH or other investors, the of this
reorganizatio reduction
(Limited Company undertakes to be liable for compensation to HSH or other transaction
n
Partnership) investors according to laws.
1. The Company legally holds the underlying shares and has complete
ownership of the underlying shares, which are not subject to any right 29 July
restrictions or involved in any circumstance which may affect the offer or 2020, six
Undertaking HCH (HK)
closing of this transaction. 2. The Company has complete right to months
related to INVESTMEN
participate in this transaction and is entitled to accept offer for this after
significant T
Others transaction and sign and perform all agreements and documents involved termination Yes Yes
asset MANAGEME
in this transaction. 3. The Company intends to participate in this of
reorganizatio NT CO.,
transaction as a shareholder in the scheme of arrangement. 4. Unless the privatisatio
n LIMITED
privatisation of HEG is completed or HSH announces termination of n/listing of
privatisation, except for the transaction with HSH and its designated H Shares
subject, the Company will not sell underlying shares, or reach any
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
arrangement with any third party on disposing of relevant underlying
shares or interests thereof, or set any pledge and other right restrictions on
the underlying shares after issue of the letter of confirmation. 5. Unless the
privatisation of HEG is completed or HSH announces termination of
privatisation, except for participating in and promoting this transaction,
the Company will not additionally hold HEG Shares, or reach any
arrangement with other HEG Shareholders on disposing of the relevant
underlying shares or interests thereof, or set any pledge and other right
restrictions on the HEG Shares held by other HEG Shareholders. 6. The
Company will comply with the relevant restrictions on the sale of HSH
Shares in accordance with Rule 10.07 of the Rules Governing the Listing
of Securities on the Stock Exchange of Hong Kong Limited as amended
from time to time: from the date of disclosure of the shareholdings of the
Company in the Listing Document of HSH H Shares involved in this
transaction to the 6th month after HSH H Shares are traded on the Hong
Kong Stock Exchange, the Company will not sell HSH H Shares acquired
by the Company through this transaction, or enter into any agreement on
selling such shares, or set any option, right, interest or encumbrance for
such shares; in addition, within six months after the expiry of the
aforementioned 6-month period, the Company’s selling HSH H Shares,
entering into any agreement on selling such shares, or exercising or
executing relevant options, rights, interests or encumbrances for such
shares will not cause Haier Group Corporation and its concerted parties to
lose their status as controlling shareholders of HSH.
Undertaking Reduce HCH (HK) 1. This transaction constitutes a connected transaction. The connected 29 July
related to connected INVESTMEN transaction procedures completed for this transaction are in compliance 2020, Yes Yes
significant transactions T with relevant regulations, the connected transaction is priced fairly, and long-term
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
asset MANAGEME there are no circumstances that harm the interests of the Listed Company
reorganizatio NT CO., and non-connected shareholders. 2. After the completion of this
n LIMITED transaction, the Company and other enterprises controlled by it will take
legal and effective measures to minimize and regulate the connected
transactions with the Listed Company and consciously safeguard the
interests of the Listed Company and all shareholders, and will not take
advantage of connected transactions for improper benefits. 3. Without
prejudice to laws and regulations, if there are any unavoidable or
well-grounded connected transactions between the Company and other
enterprises controlled by it and the Listed Company, the Company and
other enterprises controlled by it will enter into transaction agreements
with the Listed Company according to laws to ensure they will strictly
complete the connected transaction procedures specified in laws,
regulations, regulatory documents and the Articles of Association, conduct
connected transactions at a fair price in accordance with market-oriented
principles, and will not take advantage of such connected transactions to
engage in any act that harms the interests of the Listed Company or its
minority shareholders, and at the same time, they will perform the
information disclosure obligations in accordance with relevant regulations.
4. Any agreement and arrangement on connected transactions made by the
Company and other enterprises controlled by it with the Listed Company
will not prevent the other party from conducting business or transaction
with any third party for its own sake and under the same market
competition conditions.
Undertaking Undertaking Haier In this transaction, during the period from the earlier of the date of 29 July
related to related to International resumption of trading of HSH Shares and the date of issuance of this letter 2020, Yes Yes
significant share Co., Limited of undertaking to the completion of this transaction, the Company has no completion
28 / 50
2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
asset reduction plan to reduce HSH Shares. If the Company violates the aforesaid of this
reorganizatio undertaking so as to cause any loss to HSH or other investors, the transaction
n Company undertakes to be liable for compensation to HSH or other
investors according to laws.
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
3.4 Warning of and explanation on reasons for the forecast that the accumulated net profit for the
period from the beginning of the year to the end of the next reporting period may be a loss or there
is a significant change as compared to that of the same period of last year
□Applicable √ Not Applicable
Company name Haier Smart Home Co., Ltd.
Legal representative Liang Haishan
Date 29 October 2020
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
IV. APPENDIX
4.1 Financial statements
CONSOLIDATED BALANCE SHEETS
30 September 2020
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Audit Type: Unaudited
Items 30 September 2020 31 December 2019
Current assets:
Monetary capital 43,971,616,468.55 36,178,815,683.25
Provision of settlement fund
Placements with banks
Financial assets held for trading 2,039,467,556.56 308,135,007.05
Derivative financial assets 67,245,929.66 19,158,132.45
Bills receivable 14,949,371,910.85 13,951,419,893.96
Accounts receivable 16,667,866,196.08 11,015,871,060.09
Financing receivables
Prepayments 1,421,696,685.35 1,272,921,546.72
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables 2,265,149,963.22 2,163,517,802.50
Including: interests receivable
dividends receivable
Financial assets purchased under resale agreements
Inventories 26,868,460,739.65 28,228,600,971.61
Contract assets 327,756,561.53 422,738,398.42
Assets held for sale
Non-current assets due within one year
Other current assets 2,959,667,645.54 6,985,966,115.46
Total current assets 111,538,299,656.99 100,547,144,611.51
Non-current assets:
Loans and advances granted
Debt investments
Other debt investments
Long-term receivables 320,655,582.85 307,588,203.00
Long-term equity investments 21,240,150,916.22 20,460,763,915.68
Other equity instruments investments 2,652,599,272.58 1,395,959,878.92
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Other non-current financial assets 294,547,364.47
Investment properties 30,096,458.24 29,402,691.38
Fixed assets 20,500,127,791.46 21,180,057,212.01
Construction in progress 3,400,638,452.19 2,391,364,659.97
Biological assets for production
Oil and gas assets
Right-of-use assets 2,806,441,498.95 2,755,066,601.59
Intangible assets 10,402,722,491.26 10,687,071,783.07
Development expenses 186,306,556.93 193,285,777.10
Goodwill 23,344,329,711.65 23,351,729,813.35
Long-term prepaid expenses 424,316,522.83 437,586,912.58
Deferred income tax assets 1,971,472,465.31 1,578,901,892.73
Other non-current assets 1,388,406,783.80 1,843,764,965.81
Total non-current assets 88,668,264,504.27 86,907,091,671.66
Total assets 200,206,564,161.26 187,454,236,283.17
Current liabilities:
Short-term borrowings 8,525,338,027.22 8,585,049,237.18
Borrowings from central bank
Placements from banks
Financial liabilities held for trading 161,793.47 42,799,173.35
Derivative financial liabilities 185,453,864.17 99,548,853.97
Bills payable 18,075,782,128.00 19,308,538,776.92
Accounts payable 34,508,880,622.65 33,750,567,046.28
Receipts in advance
Contract liabilities 5,074,397,307.18 5,583,008,412.49
Disposal of repurchased financial assets
Absorbing deposit and deposit in inter-bank market
Customer deposits for trading in securities
Amounts due to issuer for securities underwriting
Staff remuneration payable 3,186,705,796.49 3,155,572,417.30
Taxes payable 3,184,397,236.75 2,117,056,381.04
Other payables 16,609,237,169.38 15,156,392,521.82
Including: interests payable
dividends payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 7,882,943,632.73 7,317,138,918.02
Other current liabilities 6,033,058,626.01 494,065,707.54
Total current liabilities 103,266,356,204.05 95,609,737,445.91
Non-current liabilities:
Deposits for insurance contracts
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Long-term borrowings 14,729,758,286.57 13,276,452,935.56
Debentures payable 7,001,667,987.29 7,004,585,761.43
Including: preference shares
perpetual bonds
Lease liabilities 2,094,925,821.41 1,980,271,767.35
Long-term payable 116,652,463.40 142,342,718.45
Long-term staff remuneration payable 1,160,093,620.84 1,122,350,237.36
Estimated liabilities 1,358,495,380.88 1,398,877,746.33
Deferred income 458,080,797.77 705,272,617.10
Deferred income tax liabilities 1,563,822,680.35 1,154,413,295.72
Other non-current liabilities 80,211,772.59 70,071,490.03
Total non-current liabilities 28,563,708,811.10 26,854,638,569.33
Total liabilities 131,830,065,015.15 122,464,376,015.24
Owners’ equity (or shareholder’s equity):
Paid-in capital (or share capital) 6,579,566,627.00 6,579,566,627.00
Other equity instruments 431,424,524.07 431,424,524.07
Including: preference shares
perpetual bonds
Capital reserve 4,814,724,134.07 4,435,890,845.47
Less: treasury stock
Other comprehensive income -323,685,888.69 1,317,988,619.66
Special reserve
Surplus reserve 2,655,327,405.46 2,655,327,405.46
General risk provisions
Undistributed profits 36,281,720,148.32 32,468,121,744.26
Total equity attributable to owners (or shareholder’ 50,439,076,950.23 47,888,319,765.92
equity) of the parent company
Minority interests 17,937,422,195.88 17,101,540,502.01
Total owners’ equity (or shareholders’ equity) 68,376,499,146.11 64,989,860,267.93
Total liabilities and owners’ equities (or 200,206,564,161.26 187,454,236,283.17
shareholders’ equity)
Legal representative: Liang Haishan Chief financial officer: Gong Wei
Person in charge of accounting department: Ying Ke
Balance Sheet of the Parent Company
30 September 2020
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Audit Type: Unaudited
Items 30 September 2020 31 December 2019
Current Assets:
Monetary capital 9,556,438,789.79 5,624,406,816.79
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Financial assets held for trading
Derivative financial assets
Bills receivable
Accounts receivable 4,727,784,139.94 1,182,234,481.49
Financing receivables
Prepayments 925,761,289.10 30,749,459.11
Other receivables 2,608,811,023.31 5,885,752,905.74
Including: interests receivable
dividends receivable
Inventories 147,327,100.83 233,688,207.38
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 545,955,057.97 705,958,670.28
Total current assets 18,512,077,400.94 13,662,790,540.79
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 35,652,576,621.87 35,566,480,370.20
Other equity instruments investments 804,882,401.58 5,147,131.28
Other non-current financial assets
Investment properties
Fixed assets 178,299,279.05 180,807,176.98
Construction in progress 51,278,884.38 65,367,920.02
Biological assets for production
Oil and gas assets
Right-of-use assets 1,770,219.19
Intangible assets 45,225,376.38 15,779,108.14
Development expenses
Goodwill
Long-term prepaid expenses 4,602,913.36 5,405,209.80
Deferred income tax assets 109,055,186.69 97,384,845.46
Other non-current assets 3,792,624.04
Total non-current assets 36,847,690,882.50 35,940,164,385.92
Total assets 55,359,768,283.44 49,602,954,926.71
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable 260,114,939.80 3,412,291,778.06
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Receipts in advance
Contract liabilities 12,052,596.21 16,562,259.31
Staff remuneration payable 69,002,034.37 76,513,196.33
Taxes payable 566,604,346.90 86,856,453.32
Other payables 28,333,414,035.56 26,900,844,668.74
Including: interests payable
dividends payable
Liabilities held for sale
Non-current liabilities due within one year 814,925.37
Other current liabilities 5,517,347,401.32 2,149,745.37
Total current liabilities 34,759,350,279.53 30,495,218,101.13
Non-current liabilities:
Long-term borrowings
Debentures payable
Including: preference shares
perpetual bonds
Leasing liabilities 851,678.50
Long-term payable 20,000,000.00 20,000,000.00
Long-term staff remuneration payable
Estimated liabilities
Deferred income 14,140,000.00 59,820,000.00
Deferred income tax liabilities 137,012,198.98 43,325,120.18
Other non-current liabilities
Total non-current liabilities 172,003,877.48 123,145,120.18
Total liabilities 34,931,354,157.01 30,618,363,221.31
Owners’ equity (or shareholder’s equity):
Paid-in capital (or share capital) 6,579,566,627.00 6,579,566,627.00
Other equity instruments
Including: preference shares
perpetual bonds
Capital reserve 7,036,531,178.83 7,036,531,178.83
Less: treasury stock
Other comprehensive income -11,027,703.18 11,077,477.45
Special reserve
Surplus reserve 2,050,181,180.01 2,050,181,180.01
Undistributed profits 4,773,162,843.77 3,307,235,242.11
Total owners’ equity (or shareholders’ equity) 20,428,414,126.43 18,984,591,705.40
Total liabilities and owners’ equities (or 55,359,768,283.44 49,602,954,926.71
shareholders’ equity)
Legal representative: Liang Haishan Chief financial officer: Gong Wei Person in charge
of accounting department: Ying Ke
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Consolidated Income Statement
January-September 2020
Prepared by: Haier Smart Home Co., Ltd
Unit and Currency: RMB Audit Type: Unaudited
Third First three First three quarter
quarter Third quarter of quarters of 2020 of 2019
Items of 2020 2019 (January-Septemb (January-Septembe
(July-Sep (July-September) er) r)
tember)
I. Total operating 58,683,71 50,208,824,230.12 154,411,813,689.44 150,232,288,468.02
revenue 6,582.79
58,683,71 50,208,824,230.12 154,411,813,689.44 150,232,288,468.02
Including: operating
6,582.79
revenue
Interest income
Insurance
premiums earned
Fee and
commission income
56,207,29 48,779,084,172.58 148,193,548,528.82 142,800,464,434.51
Ⅱ. Total cost of
0,314.14
operations
42,196,49 35,945,417,806.83 111,131,091,030.65 106,944,901,437.60
Including: operating
8,908.97
cost
Interest
expenses
Fee and
commission expenses
Insurance
withdrawal
payment
Net payment
from indemnity
Net provisions
withdrew for insurance
liability
Insurance policy
dividend paid
Reinsurance
cost
Taxes and 194,170,7 280,336,294.15 469,361,548.05 686,389,122.70
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
surcharges 69.51
8,835,106, 8,067,287,691.29 23,362,019,340.66 22,845,186,914.20
Selling expenses 847.37
2,472,958, 2,379,366,109.55 7,081,266,745.91 6,915,467,472.27
Administrative
038.88
expenses
2,067,364, 1,676,240,338.99 5,007,098,365.49 4,473,307,959.85
R&D expenses 816.35
441,190,9 430,435,931.77 1,142,711,498.06 935,211,527.89
Financial
33.06
expenses
312,963,0 429,808,736.94 1,032,220,170.47 1,316,108,036.62
Including:
80.44
interest expenses
138,881,9 145,204,158.57 358,504,311.40 403,901,539.17
Interest
94.75
income
398,380,2 184,663,138.32 923,669,481.27 658,592,545.44
Add: other income 25.84
investment 2,746,518, 4,230,763,215.03 3,503,301,030.65 4,987,525,354.22
income (losses are 107.86
represented by “-”)
Including: gain
from investment in
associates and joint
ventures
Derecognized
gain of financial assets
measured at amortized
cost
Exchange gain
(losses are represented
by “-”)
Gains on net
exposure hedges (losses
are represented by “-”)
Income from 37,582,69 -42,821,065.32 6,595,588.63 14,588,891.48
changes in fair value 1.78
(losses are represented
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
by “-”)
Loss on credit -7,197,647 -72,795,564.53 -116,103,151.35 -35,019,959.14
impairment (losses are .28
represented by “-”)
Loss on assets -118,128,4 210,045.69 -727,876,621.09 -257,537,859.51
impairment (losses are 88.40
represented by “-”)
Gain from -38,148,96 -26,845,448.82 -52,591,373.95 -14,138,765.95
disposal of assets 7.49
(losses are
represented by “-”)
Ⅲ. Operating profit 5,495,432, 5,702,914,377.91 9,755,260,114.78 12,785,834,240.05
(losses are 190.96
represented by “-”)
38,934,20 198,849,917.68 107,820,893.69 471,456,387.01
Add: non-operating
4.62
income
67,512,64 63,054,240.98 122,983,406.06 177,560,949.27
Less: non-operating
9.51
expenses
Ⅳ. Total profit (total 5,466,853, 5,838,710,054.61 9,740,097,602.41 13,079,729,677.79
losses are 746.07
represented by “-”)
1,059,885, 917,363,167.62 1,721,111,958.00 1,973,468,098.82
Less: income tax
084.66
expense
Ⅴ. Net profit (net 4,406,968, 4,921,346,886.99 8,018,985,644.41 11,106,261,578.97
losses are represented 661.41
by “-”)
(I) Classified by continuous operation
1.Net profit from 4,406,968, 1,758,987,643.18 8,018,985,644.41 7,793,396,282.63
continuous operation 661.41
(net losses are
represented by “-”)
2. Net profit 3,162,359,243.81 3,312,865,296.34
from discontinued
operation (net losses are
represented by “-”)
(II) Classified by ownership
1. Net profit 3,519,706, 2,554,071,805.27 6,300,507,503.54 7,612,154,769.74
attributable to 790.82
shareholders of
the Parent Company
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
(net losses are
represented by “-”)
2. Profit or loss 887,261,8 2,367,275,081.72 1,718,478,140.87 3,494,106,809.23
attributable to minority 70.59
shareholders (net losses
are represented by “-”)
VI. Other -1,464,746 671,163,493.94 -1,726,210,230.61 877,244,401.03
comprehensive income, ,735.20
net of tax
(I) Other -1,444,082 623,918,532.71 -1,664,084,285.15 857,542,799.89
comprehensive income ,794.82
attributable to owners
of the Parent
Company, net of tax
1. Other -2,602,356 -3,931,545.48 -58,986,038.62 -16,174,504.60
comprehensive income .48
that cannot be
reclassified into
profit or loss
(1) Changes arising -2,808,591 655,808.28 -2,796,373.04 255,491.10
from re-measurement of .43
defined benefit plans
(2) Other
comprehensive income
that cannot be
transferred into profit or
loss under equity
method
(3) Changes in fair 206,234.9 -4,587,353.76 -56,189,665.58 -16,429,995.70
value of investments in 5
other equity instruments
(4) Changes in fair
value of own credit
risks
2. Other -1,441,480 627,850,078.19 -1,605,098,246.53 873,717,304.49
comprehensive ,438.34
income to be
reclassified into profit
or loss
(1) Other -218,697,4 51,040,731.98 -189,651,363.03 70,870,344.63
comprehensive income 76.31
that can be transferred
into profit or loss under
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
equity method
(2) Changes in fair
value of other debt
investments
(3) Reclassified
financial assets that are
credited to other
comprehensive income
(4) Provisions for
credit impairment of
other debt investments
(5) Cash flow 993,839.0 -10,608,611.29 -84,274,049.94 -36,007,555.07
hedges reserve 0
(6) Exchange -1,223,776 587,417,957.50 -1,331,172,833.56 838,854,514.93
differences on ,801.03
translation of financial
statements denominated
in foreign currencies
(7) Others
(II) Other -20,663,94 47,244,961.23 -62,125,945.46 19,701,601.14
comprehensive income 0.38
attributable to minority
shareholders,
net of tax
Ⅶ. Total 2,942,221, 5,592,510,380.93 6,292,775,413.80 11,983,505,980.00
comprehensive income 926.21
(I) Total 2,075,623, 3,177,990,337.98 4,636,423,218.39 8,469,697,569.63
comprehensive income 996.00
attributable to the
owners of Parent
Company
(II) Total 866,597,9 2,414,520,042.95 1,656,352,195.41 3,513,808,410.37
comprehensive income 30.21
attributable to the
minority
shareholders
Ⅷ. Earnings per share:
(I) Basic earnings per 0.535 0.401 0.958 1.195
share
(RMB/share)
(II) Diluted earnings 0.526 0.343 0.939 1.107
per share
(RMB/share)
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Legal representative: Liang Haishan Chief financial officer: Gong Wei
Person in charge of accounting department: Ying Ke
Profit Statement of the Parent Company
January-September 2020
Prepared by: Haier Smart Home Co., Ltd
Unit and Currency: RMB Audit Type: Unaudited
Third quarter Third quarter of First three quarters First three quarter
of 2020 2019 of 2020 of 2019
Items
(July-Septemb (July-September (January-Septembe (January-Septembe
er) ) r) r)
I. Operating 1,195,275,124. 903,401,779.64 6,237,992,223.98 2,234,271,154.27
income 30
Less: 815,513,821.74 665,370,343.10 5,213,924,603.29 1,615,752,876.42
operating cost
Taxes 7,304,197.70 5,324,414.17 18,647,884.55 14,118,655.09
and surcharges
Selling 86,858,168.81 63,131,879.39 304,820,441.43 190,089,788.56
expenses
Administ 68,072,858.57 179,457,329.72 200,361,265.40 320,496,657.73
ration expenses
R&D 90,357,407.15 54,550,067.46 233,014,050.16 156,533,395.84
expenses
Financial 17,149,862.40 11,752,125.45 46,128,332.17 111,189,066.25
expenses
Including 28,698,250.00 25,477,118.45 74,857,472.22 139,021,578.60
: interest
expenses
In 14,208,638.45 12,873,607.27 30,293,547.81 30,581,562.15
terest income
Add: other 28,797,741.49 4,501,688.94 62,059,874.59 56,974,198.19
income
investme
nt income
4,011,191,390.
(losses are 8,374,916.12 4,257,166,131.35 253,943,029.70
98
represented by
“-”)
Including
: gains from
investment in
associates and
joint ventures
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Derecogn
ized gain on
financial assets
measured at
amortized cost
Gains on
net exposure
hedges (losses
are represented
by “-”)
Income
from changes in
fair value (losses
are represented
by “-”)
Loss on
credit
impairment
391,099.72 -7,920.79 675,131.84 979,217.15
(losses are
represented by
“-”)
Loss on
assets
impairment
-1,793,656.12 -3,100,268.37
(losses are
represented by
“-”)
Gain
from disposal of
assets (losses are 51,118.46
represented by
“-”)
II. Operating
profit (losses are 4,148,605,384.
-63,315,695.38 4,537,896,516.39 138,038,277.88
represented by 00
“-”)
Add:
non-operating 706,408.80 3,590,569.68 742,963.13 13,003,372.98
income
Less:
non-operating 19,547.73 1,007,999.99 339,043.62 2,971,024.42
expenses
III. Total profit 4,149,292,245.
-60,733,125.69 4,538,300,435.90 148,070,626.44
(total losses are 07
42 / 50
2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
represented by
“-”)
Less:
income tax 606,491,357.43 -123,118.24 605,035,349.11 -17,410,712.14
expenses
IV. Net profit
(net losses are 3,542,800,887.
-60,610,007.45 3,933,265,086.79 165,481,338.58
represented by 64
“-”)
(I) Net profit
from continuous
operations (net 3,542,800,887.
-60,610,007.45 3,933,265,086.79 165,481,338.58
losses are 64
represented by
“-”)
(II) Net profit
from
discontinued
operations (net
losses are
represented by
“-”)
V. Other
comprehensive
-14,989,053.63 5,204,966.29 -22,105,180.63 4,453,719.92
income, net of
tax
(I) Other
comprehensive
income that
-67,243.43 -178,713.89
cannot be
reclassified into
profit or loss
1. Changes
arising from
re-measurement
of defined
benefit plans
2. Other
comprehensive
income that
cannot be
transferred into
profit or loss
under equity
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
method
3. Changes
in fair value of
investments in -67,243.43 -178,713.89
other equity
instruments
4. Changes
in fair value of
own credit risks
(II) Other
comprehensive
income to be -14,989,053.63 5,272,209.72 -21,926,466.74 4,453,719.92
reclassified into
profit or loss
1. Other
comprehensive
income that can
be transferred -14,989,053.63 5,272,209.72 -21,926,466.74 4,453,719.92
into profit or
loss under equity
method
2. Changes
in fair value of
other debt
investments
3.
Reclassified
financial assets
that are credited
to other
comprehensive
income
4.
Provisions for
credit
impairment of
other debt
investments
5. Cash
flow hedges
reserve
6.
Exchange
differences on
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
translation of
financial
statements
denominated in
foreign
currencies
7. Others
VI. Total
3,527,811,834.
comprehensive -55,405,041.16 3,911,159,906.16 169,935,058.50
01
income
VII. Earnings per share:
(I) Basic
earnings per
share
(RMB/share)
(II)
Diluted
earnings per
share
(RMB/share)
Legal representative: Liang Haishan Chief financial officer: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Cash Flow Statement
January - September 2020
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Audit Type: Unaudited
The first three quarters The first three quarters
Items of 2020 of 2019
(January – September) (January – September)
I. Cash flows from operating
activities:
Cash received from the sale of goods 147,291,023,850.68 149,416,186,506.27
and rendering of services
Net increase in customers and
interbank deposits
Net increase in borrowing from the
central bank
Net cash increase in borrowing from
other financial institutes
Cash received from premiums under
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
original insurance contract
Net cash received from reinsurance
business
Net increase in deposits of policy
holders and investment
Cash received from interest, fee and
commissions
Net increase in cash borrowed
Net increase in cash received from
repurchase operation
Net cash received from securities
trading agency services
Refunds of taxes received 976,790,858.07 1,049,707,932.77
Cash received from other related 858,777,749.41 1,023,187,631.12
operating activities
Sub-total of cash inflows from 149,126,592,458.16 151,489,082,070.16
operating activities
Cash paid on purchase of goods and 107,290,072,174.03 110,367,698,756.06
services
Net increase in loans and advances of
customers
Net increase in deposits in PBOC and
interbank
Cash paid for compensation payments
under original insurance contract
Net increase in placements with banks
Cash paid for interest, fees and
commissions
Cash paid for insurance policy
dividend
Cash paid to and on behalf of 16,400,625,372.03 16,241,539,773.60
employees
Cash paid for all types of taxes 5,612,184,299.93 6,255,602,262.52
Cash paid on other operation related 14,112,505,937.72 10,148,204,038.58
activities
Sub-total of cash outflows from 143,415,387,783.71 143,013,044,830.76
operating activities
Net cash flows from operating 5,711,204,674.45 8,476,037,239.40
activities
II. Cash flows from investing activities:
Cash received from recovery of 2,810,432,335.20 1,534,282,960.18
investments
Cash received from return on investments 348,202,313.61 457,961,430.03
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Net cash received from the disposal of
fixed assets, intangible assets and other 80,436,732.37 200,940,694.81
long-term assets
Net cash received from disposal of
1,314,096,598.53
subsidiaries and other operating entities
Cash received from other investment 8,051,012.31 279,515,688.66
related activities
Sub-total of cash inflows from 4,561,218,992.02 2,472,700,773.68
investing activities
Cash paid on purchase of fixed assets,
5,099,603,609.64 4,582,456,572.85
intangible assets and other long-term assets
Cash paid for investments 1,758,422,705.33 3,059,069,407.17
Net increase in secured loans
Net cash paid on acquisition of
345,271,380.17 2,641,246,363.38
subsidiaries and other operating entities
Cash paid on other investment related 52,942,942.62 1,167,045,427.42
activities
Sub-total of cash outflows from 7,256,240,637.76 11,449,817,770.82
investing activities
Net cash flows from investing -2,695,021,645.74 -8,977,116,997.14
activities
III. Cash flows from financing activities:
Cash received from capital contributions 1,326,697,709.68 14,318,688.54
Including: cash received from capital
contributions by minority shareholders of
subsidiaries
Cash received from borrowings 23,485,842,921.55 12,084,841,424.81
Cash received from other financing 4,422,492.60 7,139,182.47
related activities
Sub-total of cash inflows from 24,816,963,123.83 12,106,299,295.82
financing activities
Cash paid on repayment of borrowings 14,546,595,992.83 9,252,731,650.03
Cash paid on distribution of dividends, 3,966,850,550.91 3,082,361,819.88
profits or repayment of interest expenses
Including: dividend and profit paid to
minority shareholders by subsidiaries
Cash paid on other financing related 552,815,827.98 1,020,991,642.57
activities
Sub-total of cash outflows from 19,066,262,371.72 13,356,085,112.48
financing activities
Net cash flows from financing 5,750,700,752.11 -1,249,785,816.66
activities
IV. Effect of fluctuations in exchange -418,539,387.37 585,786,113.94
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
rates on cash and cash equivalents
V. Net increase in cash and cash 8,348,344,393.45 -1,165,079,460.46
equivalents
Add: balance of cash and cash 34,981,410,830.63 36,257,588,929.47
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents 43,329,755,224.08 35,092,509,469.01
at the end of the period
Legal representative: Liang Haishan Chief financial officer: Gong Wei
Person in charge of accounting department: Ying Ke
Cash Flow Statement of the Parent Company
January-September 2020
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Audit Type: Unaudited
The first three quarters Amount for the first
Items of 2020 three quarters of 2019
(January – September) (January – September)
I. Cash flows from operating activities:
Cash received from the sale of goods and 3,467,075,928.84 1,219,703,551.51
rendering of services
Refunds of taxes received 20,913,285.18 31,329,360.51
Cash received from other related 27,453,408.37 182,304,374.25
operating activities
Sub-total of cash inflows from 3,515,442,622.39 1,433,337,286.27
operating activities
Cash paid on purchase of goods and 9,943,115,483.72 57,147,717.08
services
Cash paid to and on behalf of employees 433,934,396.95 701,565,276.87
Cash paid for all types of taxes 196,697,391.69 116,443,799.11
Cash paid on other operation related 178,656,735.99 456,381,806.73
activities
Sub-total of cash outflows from 10,752,404,008.35 1,331,538,599.79
operating activities
Net cash flows from operating activities -7,236,961,385.96 101,798,686.48
II. Cash flows from investing activities:
Cash received from recovery of
4,410,000,000.00
investments
Cash received from return on investments 4,062,494,274.83 1,513,456,657.45
Net cash received from the disposal of
fixed assets, intangible assets and other
long-term assets
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Net cash received from disposal of
subsidiaries and other operating entities
Cash received from other investment
1,431,977,000.00
related activities
Sub-total of cash inflows from
8,472,494,274.83 2,945,433,657.45
investing activities
Cash paid on purchase of fixed assets,
98,238,434.96 30,442,256.39
intangible assets and other long-term assets
Cash paid for investments 1,199,400,000.00 3,521,662,503.09
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment related 133,000,000.00 246,801,379.00
activities
Sub-total of cash outflows from 1,430,638,434.96 3,798,906,138.48
investing activities
Net cash flows from investing 7,041,855,839.87 -853,472,481.03
activities
III. Cash flows from financing activities:
Cash received from capital contributions
Cash received from borrowings 10,000,000,000.00
Cash received from other financing 1,155,486,114.60 3,728,909,076.12
related activities
Sub-total of cash inflows from 11,155,486,114.60 3,728,909,076.12
financing activities
Cash paid on repayment of borrowings 4,500,000,000.00 1,500,000,000.00
Cash paid on distribution of dividends, 2,528,459,679.57 2,262,440,498.23
profits or repayment of interest expenses
Cash paid on other financing related 8,419,159.30
activities
Sub-total of cash outflows from 7,028,459,679.57 3,770,859,657.53
financing activities
Net cash flows from financing 4,127,026,435.03 -41,950,581.41
activities
IV. Effect of fluctuations in exchange 111,084.06 -1,836,962.00
rates on cash and cash equivalents
V. Net increase in cash and cash 3,932,031,973.00 -795,461,337.96
equivalents
Add: balance of cash and cash equivalents 5,624,406,816.79 7,068,899,574.96
at the beginning of the period
VI. Balance of cash and cash equivalents 9,556,438,789.79 6,273,438,237.00
at the end of the period
Legal representative: Liang Haishan Chief financial officer: Gong Wei
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2020 Third Quarterly Report of Haier Smart Home Co., Ltd.
Person in charge of accounting department: Ying Ke
4.2 Status in relation to adjustments to the first implementation of relevant items in financial
statements at the beginning of the year for implementation of New Income Standards and New
Lease Stands for the first time since 2020
□Applicable √Not Applicable
4.3 Explanation on retroactive adjustments of previously comparative data for implementation of New
Income Standards and New Lease Standards for the first time since 2020
□Applicable √Not Applicable
4.4 Audit report
□Applicable √Not Applicable
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