Stock Code: 600690 Short Name: Haier Smart Home
Haier Smart Home Co., Ltd.
2021 Third Quarter Report
The Board of Directors (the “Board”) and the Directors of Haier Smart Home Co., Ltd. (the
“Company”) hereby assure that this announcement is free from any false record, misleading
representation or material omission and are individually and collectively responsible for the
trueness, accuracy and completeness of the content set out herein.
Important Notice:
The board of directors (the “Board”), the board of supervisors, directors, supervisors and senior
management of the Company hereby assure that the content set out in the quarterly report is true,
accurate and complete, and free from any false record, misleading representation or material
omission, and are individually and collectively responsible for the content set out therein.
The legal representative of the Company, chief financial officer of the Company and person in
charge of accounting department hereby certify that the financial statement information set out in
the quarterly report is true, accurate and complete.
Whether the third quarterly report has been audited or not
□Yes √No
I. Key Financial Information
(I) Major accounting data and financial indicators
Unit and Currency: RMB
Year-on-year
Year-on-year increase/decrease
From the beginning
increase/decrease during the
During the of the year to the
Items during the beginning of the
Reporting Period end of the
Reporting Period year to the end of
Reporting Period
(%) the Reporting
Period (%)
Operating revenue 58,344,749,484.03 -0.58 169,963,571,548.76 10.07
Net profit
attributable to
shareholders of 3,082,339,695.41 -12.43 9,934,611,508.38 57.68
the listed
Company
1
Net profit after
deduction of non-
recurring profit or
loss attributable
2,785,809,654.46 82.93 9,055,716,061.18 121.28
to shareholders of
the listed
Company
Net cash flow
from operating N/A N/A 13,359,284,075.18 133.91
activities
Basic earnings per
share (RMB per 0.331 -38.13 1.072 11.90
share)
Diluted earnings
per share (RMB 0.331 -36.35 1.061 12.99
per share)
Weighted average
return on net Decrease by 3.03 Increase by 0.58
4.00% 13.29%
assets percentage points percentage point
(%)
Increase/decrease
at the end of the
At the end of the Reporting Period
At the end of last year
Reporting Period compared to the
end of last year
(%)
Total assets 212,940,580,271.32 203,459,495,879.65 4.66
Owner equity
attributable to
shareholders of 77,733,774,523.46 66,816,422,614.55 16.34
the listed
Company
Note: “Reporting Period” refers to the three-month period commencing from the beginning of this
quarter to the end of this quarter.
During the Reporting Period, amid tepid industry demand, rising raw material costs and
resurgence of the pandemic overseas, the Company expedited its IoT-based smart home strategic
transformation, with a focus on building high-end brands, scenario brands, and ecosystem brands.
We continuously consolidated the advantages in one-stop high-end scenario-based smart home
solutions, global footprint synergy, efficient operation system, and smart home experiential Cloud
platforms; while accelerating digital transformation and efficiency improvement, so as to achieve
sustainable development with a steady performance.
2
Key Performance Indicators
I. Revenue and profit
In the first three quarters of 2021, the Company recorded revenue of RMB169.964 billion, net
profit of RMB10.064 billion, net profit attributable to shareholders of the listed Company of
RMB9.935 billion, net profit after deduction of non-recurring profit or loss attributable to
shareholders of the listed Company of 9.056 billion, representing increases of 10.1%, 25.5%, 57.7%
and 121.3%as compared to the same period in 2020, respectively. In particular, in the third quarter,
its revenue reached RMB58.345 billion, net profit was RMB3.126 billion, and net profit attributable
to shareholders of the listed Company was RMB3.083 billion, net profit after deduction of non-
recurring profit or loss attributable to shareholders of the listed Company was 2.786 billion,
representing changes of -0.6%, -29.1%, -12.4% and +82.9% respectively as compared to the same
period in 2020.
Excluding the impact from the deconsolidation of COSMOPlat in the third quarter of last year,
and assuming 100% ownership of the privatised Haier Electronics (01169.HK) in the same period
last year, the Company’s total revenue and net profit attributable to shareholders of the listed
Company would have increased by 20.4% and 60.2% in the first three quarters of 2021 as compared
with the same period in 2020; and revenue and net profit attributable to shareholders of the listed
Company in the third quarter would have increased by 9.2% and 14.6% as compared with the same
period in 2020.
1. Smart Home and Other Business in China
Revenue of the smart home and other business in China in the first three quarters of
2021 increased by 4.0% as compared with the same period in 2020; excluding the impact of the
deconsolidation of COSMOPlat, revenue would have increased by 24.3% in the first three quarters
of 2021 as compared with the same period in 2020.
The Company remained committed to the development from high-end brands to scenario-
based and ecosystem brands leveraging on innovation, premium product portfolio and
comprehensive solutions. The Company accelerated its digital transformation in terms of
distribution network, service coverage and supply chain management. We have built a digital
platform that gives sales people online access to the latest product offerings, so they could better
manage existing as well as new users. Average customer acquisition by per salesperson increased
by 38%.
At the same time, the Company managed to grow market shares across the board. In the first
nine months, revenue from Casarte increased by 57% as compared with the same period in 2020,
with market share gain as a whole and in all categories, where its share in refrigerator market
increased by 2.4 percentage points.
(1) Household food solution (internet of food)
Refrigerator: The Company addressed users’ demand for upgrade with large capacity, health-
oriented and freshness preservation technology, kitchen aesthetic designs, and smart scenario
experience. According to CMM, by retail sales, our market share reached 38.7% online and 41.4%
offline from January to September 2021, representing a year-on-year increase of 3.6 and 2.1
3
percentage points, our leadership further consolidated as Haier continued to rank no.1 in the
industry, while Casarte became no.2 with 14.2% market share or 2.4 percentage points year-on-year
expansion.
During the Reporting Period, with the accelerated implementation of globalized operating
platform, product upgrade and smart manufacturing, our refrigerator segment quickly responded to
change in consumer taste with successful launch of scenario-based solutions, Boguan series
boasting cell-level freshness preservation and built-in design was an immediate bestseller. Casarte
Homey series that caters for users’ taste with stone panel, simplicity in designs and seamless
integration with cabinets facilitated by bottom-mounted cooling technology, has contributed to 46%
sales revenue growth of Casarte’s refrigerators.
Kitchen appliances: According to CMM, by retail sales, our market share reached 7.3%
offline in the first nine months, representing an increase of 1 percentage point as compared to the
same period last year, and Casarte’s market share grew by 1.2 percentage points, representing an
increase of 75%.
During the Reporting Period, the Company's kitchen appliance segment made breakthroughs in
the high-end market by continuously expanding Casarte's product portfolio. Ideal Home Galaxy
series was launched with 114 patents and 5 ground-breaking technologies in the industry, providing
users with a premium and comprehensive smart kitchen experience, driving Casarte’s kitchen
appliance sales revenue to grow 123% from January to September 2021, among which Casarte
dishwashers grew by 152%. At the same time, the Company continued to upgrade scenario-based
solutions, accelerated lower tier network expansion and increased presence in home improvement
markets. By introducing GEA and FPA in commercial projects, the Company fully leveraged the
global brand portfolio to address diverse customer demands and achieve steady growth. During the
first three quarters of 2021, revenue from kitchen appliance grew by 31% as compared with the
same period last year, among which the sales of dishwashers grew by 92%.
(2) Household clothing solutions (internet of clothing)
Washing machine: According to CMM, by retail sales, our market shares reached 40.5%
online and 43.6% offline from January to September 2021, representing increases of 1.1 and 3.1
percentage points.
Our washing machine segment appreciates the growing diversification in users’ demand with
continued technological innovations. During the period, several "New Species" products were
launched, including Casarte Neutron Hemei Washing and Drying Machine, which integrates
washing, drying and garment care. Facilitated by innovative patented technology, it is 20cm lower
than the height of traditional washer-and-dryer combo, allowing users to enjoy a comfortable
"China height" (中国高度) of 150cm, where they do not have to raise their hands above shoulder
level, all of which contributing to our front-loading machines’ further market share expansion of 8.5
percentage points, reaching 45.8%. In order to eliminate bacteria contamination when wet clothes
are left behind after laundry, we developed the unique Deep Breathing series, which can
automatically air-dry the laundry and the drum when users do not pick them up in time. Its launch
attracted wide attention and a total of 32,000 units have been sold since then.
At the same time, the washing machine segment rapidly expanded into new categories such as
tumble dryers, shoe washers. In order to address demand in drying large items, delicate items and
reducing crease, the Company developed industry leading technologies including independent fan,
hybrid fast drying and smart wind speed control, thus effectively improved drying experience. Sales
revenue of tumble dryers grew by more than 260% and its market share offline reached 36.7%,
representing an increase of 19.3 percentage points over the same period, and 1.32 times the market
share of runner-up according to CMM.
4
(3) Household air solutions
Household air conditioner: Based on CMM’s retail sales data, from January to September
2021, our market share reached 17.0% offline, representing an increase of 2.5 percentage points as
compared with the same period last year, while market share online reached 13.6%, representing an
increase of 2.4 percentage points as compared with the same period last year. Through the rapid
expansion of Casarte's product portfolio and distribution network, our share in high-end market
(wall-mounted units > RMB 4,000 and cabinet units > RMB 10,000) reached 20.8%, representing a
year-on-year increase of 5.6 percentage points. In the single third quarter, an impressive 9.2
percentage points market share expansion was achieved, reaching 25% in high-end market, among
which installation of Casarte units doubled.
During the period, the household air conditioning business focused primarily on health-
conscious and smart products, accelerated the channel reorganization, improved store layout in
order to foster a closer user interaction through various marketing strategies including “experience
+ air-conditioning cleaning(体验官+全民洗空调)”, while implementing operational efficiency
initiatives in procurement, R&D, manufacturing and marketing, streamlining SKU as well as
improving the efficiency of individual models. During the first three quarters, revenue from
household air conditioning grew by 20% as compared with the same period last year, with revenue
from Casarte up by 68.6%.
Central air conditioner: According to China IOL, the Company’s market share in central air
conditioners was 11.1% from January to August 2021, representing an increase of 0.7 percentage
points compared to the same period last year.
During the period, Haier’s central air conditioner actively implemented the national “carbon
neutral” strategy, continued to achieve technology breakthrough, product innovations in providing
customized air energy solutions, and sustained our leadership. For instance, the launch of the new
integrated all-in-one air conditioner targets to reduce conventional water system’s complication in
installation and limited choices in fluorine unit by creating customized air solution integrating
management of temperature, humidification, purification, oxygenation, circulation, freshness and
quietness, catering to more specific demands from medical and archaeological industries. In respect
of clean energy, the Company rolled out the IoT-enabled ultra-low temperature air-drive heat pump
“Flame+ (赤焰+)” series, which features 62℃ water temperature and ensures -35℃ ultra-low
temperature heating. It also targets diversified user demands such as subdivided household heating,
regional heating, agricultural heating, commercial hot water usage and drying scenarios, thus
providing innovative solutions to hospitality, industrial parks, office buildings and agricultural
facilities. Based on the HAI-BMS smart system, the Company developed the industry’s first clean
energy smart Heat platform that facilitates efficient, convenient and energy-saving scenario-based
solutions.
(4) Household water solution
Water heater: CMM’s retail sales data indicates, from January to September 2021, the
Company’s market share online and offline was 31.2% and 27.7%, representing a year-on-year
increase of 4.8 percentage points and 3.9 percentage points.
During the period, the Company focused on Casarte Galaxy series with crystal rods, gas-
electric hybrid series, mid and high-end ceramic heating chamber series and slim instantaneous heat
series to cater for demand in different pricing ranges. In particular, Casarte Galaxy series adopts
ground-breaking materials and processes to create a heater rod that does not require magnesium nor
leave limescale and form crud. Meanwhile, the Company actively expanded HVAC channels and
home improvement markets, increased the number of small outlets, and acquired users through
5
experience-based service and word-of-mouth marketing. In addition, we strengthened partnership
with designers to target new homeowners.
Water purifier: According to CMM, from January to September, by retail revenue, the
Company’s market share offline increased by 23.7%, and its market share ranking rose by one place
to the fourth, while the online share increased by 26.8% and maintained industry leading position.
During the period, the water purifier segment focused on meeting increasing demand for safe
and healthy water, and launched the Connoisseur series, that is “a mineral water purifier, and a fruit
and veggie washer at the same time”, and their popularity drove steady revenue growth of the water
purifier products.
2. Overseas Home Appliance and Smart Home Segment
In the first three quarters of 2021, revenue of the Company’s overseas business increased by
16.8% as compared with the same period in 2020; operating profit margin increased by 1.7
percentage points as compared with the same period in 2020. The continued strong momentum was
attributable to: (1) adhering to the 3-in-1 model of R&D, manufacturing and marketing, the
Company provided precise services and optimal experiences to users through diversified solutions,
thereby achieving better than industry performance in every overseas markets; (2) in the post
pandemic period, the Company continued to step up online and strengthened strategic partnership
with leading e-commerce players, while expanding the offline network and developing high-end
brands and scenario-based ecosystem brands through retail transformation; (3) the Company
optimized the global supply chain platform to respond to raw material inflation, component
shortage, rising international freight costs, and labour disruption.
① The Americas Market: During the period, GEA continued to upgrade consumer experience
with the introduction of high-end products. GEA’s front-load washing machines with
antibacterial function were awarded the highest recognition of Good Housekeeping Seal of
Approval by the Good Housekeeping Institute. High-end multi-door refrigerators and ovens
continued to achieve double-digit growth. The launch of the Swordfish series, a new
dishwasher with outstanding drying capability and the advantage of easy installation,
contributed to a 70% growth in the segment. GEA also launched a brand-new high-end
dishwasher from the Profile brand with antibacterial technology, which was well-received by
the market. Meanwhile, GEA obtained the Great Place to Work Certification and it was
named in Achievers 50 Most Engaged Workplaces 2021.
② The European Market: The Company actively expanded online channels and enhanced
recognition as a smart home brand with its diversified high-end product portfolio and value-
added ecosystem services. In the meantime, Hoover brand received the “Consumer Superbrand”
award, and the Company actively assumed social responsibilities in the post pandemic era.
③ The Australian and New Zealand Markets: Faced with pandemic resurgence, the Company
implemented product differentiation and scenario solutions to boost the market share of the
two brands by 0.7 percentage points in major channels. While FPA’s drawer dishwasher
achieved a revenue growth of 13% in spite of the headwinds, high-end kitchen solutions drove
the price index of refrigerators, kitchen appliances and dishwashers to 120%. Meanwhile, the
Company actively seized the opportunity online to achieve rapid growth.
④ The Japanese Market: AQUA expedited diversification of high-end products, while Haier
brand implemented a shift to medium-to-large products in order to expand the community-
based washing business to different scenarios.
6
⑤ The South Asian Market: Under the pressure of the pandemic, Pakistan continued to record
high revenue growth. Refrigerators, freezers, air conditioners and washing machines
maintained market leading position, topping the market in terms of overall share for five
consecutive years.
⑥ The Southeast Asian Market: Business development was driven by high-end branding. The
Company continued to invest in e-commerce channels while deploying industry opinion
leaders and event marketing to promote brand affinity and image.
II. Gross Profit
The Company’s gross margin was 30.2% for the first three quarters of 2021, representing an
increase of 2.2 percentage points as compared with the same period in 2020. The increase in gross
margin was primarily attributable to several factors, where in domestic market, the Company
accelerated revenue growth of Casarte, optimized product mix, implemented the super factory
project, streamlined SKU and improved manufacturing efficiency to partially mitigate the impact of
rising raw material prices, while the prior disposal of businesses with low profitability also
contributed positively to gross profit margin. In the overseas market, the cost pressure was
effectively mitigated by optimization of product mix, continuous optimization of supply chain
layout and improvement in manufacturing efficiency in each region.
III. Operating Expenses Ratio
1. The selling expense ratio of the Company in the first three quarters was 15.4%. Excluding the
revenue contribution of COSMOPlat in the first three quarters of 2020, the selling expense
ratio decreased by 1.1 percentage point (including the revenue contribution of COSMOPlat,
the expense ratio from January to September 2020 was 15.1%). In domestic market, the
Company continuously implemented digital transformation, facilitating digital management of
salespeople, while working on the digital transformation of after-sale service personnel and
supply chain. In the overseas market, the Company benefited from economies of scale arising
from rapid revenue growth, and accelerated information system implementation to improve
operational efficiency and optimize the selling expense ratio through effective expense control.
2. The administrative expense ratio in the first three quarters was 4.4%. Excluding the revenue
contribution of COSMOPlat in 2020, the administrative expense ratio would have decreased
by 0.6 percentage point (including the revenue contribution of COSMOPlat, the expense ratio
from January to September 2020 was 4.6%). The improvement in administrative expense ratio
was attributable to improved operation efficiency.
3. The research and development expense ratio in the first three quarters was 3.7%, representing
an increase of 0.5 percentage points year on year. It was mainly due to the step up efforts in
building smart capabilities, such as iteration and upgrade of Smart Home APP, Smart Home
cloud and other cutting-edge technologies, the incubation of new categories as well as the
iteration of Three-Winged Bird scenario experience.
7
4. The financial expense ratio in the first three quarters was 0.2%, representing a decrease of 0.6
percentage point year on year. The decrease was mainly due to the conversion of convertible
bonds and debt repayment.
IV. Working Capital
1. Trade and bill receivable turnover days
The trade and bill receivable turnover days of the Company was 50 days in the first three
quarters, representing an increase of 2.6 days as compared with the end of 2020, which was mainly
attributable to growth in revenue and increase in trade and bill receivables.
2. Inventory turnover days
The inventory turnover days of the Company was 76 days in the first three quarters,
representing an increase of 4.3 days as compared to the end of 2020, which was mainly attributable
to the inventory preparation arising from increased sales orders.
3. Trade and bill payable turnover days
In the first three quarters, trade and bill payable turnover days was 142 days, representing an
increase of 5.5 days as compared to the end of 2020, which was mainly attributable to an increase in
procurement scale.
V. Cash Flow Analysis
1. Net cash flow from operating activities for the period amounted to RMB13.36 billion,
representing an increase of RMB7.65 billion as compared to the corresponding period. It was
mainly due to the increase in operating profit and enhanced operation efficiency;
2. Net cash outflow from investing activities for the period amounted to RMB5.20 billion,
representing an increase of 93.1% as compared to the corresponding period, which was mainly
due to cash outflow as a result of the increase in investments this year and cash inflow from the
disposal of subsidiaries in 2020;
3. Net cash outflow from financing activities for the period amounted to RMB13.08 billion, while
net cash inflows in financing activities for the corresponding period amounted to RMB5.75
billion, which was mainly due to the repayment of debt, shares buyback and increase in new
borrowings.
VI. Capital Expenditure
The Company assesses its capital expenditure and investments in each segment in China and
overseas from time to time. The capital expenditure in the first three quarters of 2021 was RMB4.91
billion, of which RMB2.18 billion and RMB2.73 billion were used in China and overseas
respectively in plant and equipment construction, property rental, and digital infrastructure.
VII. Gearing Ratio
8
As of the end of the third quarter in 2021, the Company’s gearing ratio was 62.8%,
representing a decrease of 3.7 percentage points as compared to the end of 2020, which was mainly
due to the conversion of convertible bonds, increase in net profit and the repayment of borrowings.
(II) Non-recurring profit or loss items and amounts
Unit and Currency: RMB
Amounts from the
Amounts in the beginning of the year
Items
Reporting Period to the end of the
Reporting Period
Profit or loss from disposal of non-current assets
(including the write-off portion of the provision for 65,166,649.46 200,578,022.11
impairment of assets)
Government grants included in current profit or loss,
except that closely related to the normal operating
business, complied with requirements of the national 161,823,554.89 445,358,693.42
policies, continued to be granted with the amount
and quantity determined under certain standards
Profit or loss on change in fair value from financial
assets and financial liabilities held for trading, as
well as investment income from disposal of financial
assets and financial liabilities held for trading and
67,954,039.04 297,181,061.03
financial assets and liabilities available for sales
except for effective hedging related with normal
businesses of the Company
Other non-operating income and expenses except as
14,073,114.60 49,512,691.88
listed above
Less: Effect of income taxation -8,311,500.59 -101,590,091.60
Effect of minority interest, net of tax -4,175,816.45 -12,144,929.64
Total 296,530,040.95 878,895,447.20
Description on categorizing the non-recurring profit or loss items listed in the Interpretative
Announcement No. 1 [2008] of the Information Disclosure of the Companies Public Offering
Securities — Non-recurring Profit or Loss (公开发行证券的公司信息披露解释性公告第 1 号—
—非经常性损益) as recurring profit or loss item
□Applicable √Not Applicable
(III) Changes in major accounting data and financial indicators and reasons
√Applicable □Not Applicable
Percentage
Items of change Main reasons
(%)
Net profit after deduction Mainly as a result of the increase in operating profit for
non-recurring profit or the period and the increase in proportion of net profit
loss attributable to attributable to shareholders of the listed Company due
82.93
shareholders of the listed to the completion of the introduction of H-share listing
Company_ Reporting and privatization of Haier Electric by the Company
period
Basic earnings per share -38.13 Mainly as a result of the investment gain arising from
9
(RMB per share) the disposal of equity in a subsidiary (nil in the current
_Reporting period period) during the same period, the H shares issued by
the Company as the compensation for the cancellation
of the scheme shares in accordance with the
privatization proposal, and the additional H shares
issued by the Company due to the conversion of H
share convertible bonds
Mainly as a result of the investment gain arising from
the disposal of equity in a subsidiary (nil in the current
period) during the same period, the H shares issued by
Diluted earnings per
the Company as the compensation for the cancellation
share (RMB per share) -36.35
of the scheme shares in accordance with the
_Reporting period
privatization proposal, and the additional H shares
issued by the Company due to the conversion of H
share convertible bonds
Mainly as a result of H shares issued by the Company
as the compensation for the cancellation of the scheme
Decrease by shares in accordance with the privatization proposal,
Weighted average return
3.03 additional H shares issued by the Company due to the
on net assets (%)
percentage conversion of H share convertible bonds, resulting in
_Reporting period
points an increase in shareholders’ equity and investment gain
arising from the disposal of equity in a subsidiary (nil
in the current period) during the same period
Mainly as a result of the increase in operating profit for
Net profit attributable to the period, and the increase in proportion of net profit
shareholders of the listed attributable to shareholders of the listed Company due
Company from the to the completion of the introduction of H-share listing
57.68
beginning of the year to and privatization of Haier Electric by the Company,
the end of the Reporting partially offset by investment gain arising from the
Period disposal of equity in a subsidiary (nil in the current
period) during the same period
Net profit after non- Mainly as a result of the increase in operating profit for
recurring profit or loss the period and the increase in proportion of net profit
attributable to attributable to shareholders of the listed Company due
shareholders of the listed to the completion of the introduction of H-share listing
121.28
Company from the and privatization of Haier Electric by the Company
beginning of the year to
the end of the Reporting
Period
Net cash flow from Mainly as a result of the increase in operating profit for
operating activities from the period and improvement in operating efficiency
the beginning of the year 133.91
to the end of the
Reporting Period
II. PARTICULARS OF SHAREHOLDERS
(I) Total number of ordinary shareholders and the number of preferential shareholders with
restored voting rights and the shareholdings of the top 10 shareholders
Unit: share
Total number of ordinary Total number of preferential
shareholders as of the end of the 186,277 shareholders with restored voting N/A
Reporting Period rights as of the end of the
10
Reporting Period (if any)
Shareholdings of the top 10 shareholders
Number
Pledged, marked
of shares
Percentage or frozen
Number of held
Nature of of
Name of shareholders shares held subject to
shareholders shareholdin
trading Numb
gs (%) Status
moratoriu er
m
HKSCC NOMINEES
Unknown 2,188,987,197 23.30 Unknown
LIMITED
Domestic non-
Haier Electric Appliances
state owned 1,258,684,824 13.40 Nil
International Co., Ltd.
legal entity
Domestic non-
Haier Group Corporation state owned 1,072,610,764 11.42 Nil
legal entity
HCH (HK) INVESTMENT
Foreign legal
MANAGEMENT CO., 538,560,000 5.73 Nil
entity
LIMITED
Hong Kong Securities
Unknown 555,229,444 5.91 Unknown
Clearing Company Limited
China Securities Finance
Unknown 182,592,654 1.94 Unknown
Corporation Limited
Qingdao Haier Venture & Domestic non-
Investment Information state owned 172,252,560 1.83 Nil
Co., Ltd. legal entity
Qingdao Haichuangzhi
Domestic non-
Management Consulting
state owned 98,014,946 1.04 Nil
Enterprise (Limited
legal entity
Partnership)
China Merchants Bank Co.,
Ltd. －Xingquan Herun
Unknown 91,780,653 0.98 Unknown
Hybrid Securities Investment
Fund
ALIBABA INVESTMENT
Unknown 83,823,993 0.89 Unknown
LIMITED
Shareholdings of the top 10 shareholders not subject to trading moratorium
Number of listed shares Class and number of shares
Name of shareholders not subject to trading Number
Class
moratorium held
Overseas listed foreign
HKSCC NOMINEES LIMITED 2,188,987,197 shares 2,188,987,197
Haier Electric Appliances
1,258,684,824 RMB ordinary shares 1,258,684,824
International Co., Ltd
Haier Group Corporation 1,072,610,764 RMB ordinary shares 1,072,610,764
HCH (HK) INVESTMENT
Overseas listed foreign
MANAGEMENT CO., 538,560,000 538,560,000
shares
LIMITED
Hong Kong Securities Clearing
555,229,444 RMB ordinary shares 555,229,444
Co., Ltd.
China Securities Finance 182,592,654 RMB ordinary shares 182,592,654
11
Corporation Limited
Qingdao Haier Venture &
Investment Information Co., 172,252,560 RMB ordinary shares 172,252,560
Ltd.
Qingdao Haichuangzhi
Management Consulting 98,014,946 RMB ordinary shares 98,014,946
Enterprise (Limited Partnership)
China Merchants Bank Co., Ltd.
－Xingquan Herun Hybrid 91,780,653 RMB ordinary shares 91,780,653
Securities Investment Fund
Overseas listed foreign
ALIBABA INVESTMENT
83,823,993 shares 83,823,993
LIMITED
Explanation of associations or (1) Haier Electric Appliances International Co., Ltd. (currently named as
actions in concert among the Haier COSMO Co., Ltd.) is a subsidiary of Haier Group Corporation.
above shareholders Haier Group 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 ), HCH (HK) INVESTMENT MANAGEMENT CO.,
LIMITED, Qingdao Haichuangzhi Management Consulting Enterprise
(Limited Partnership) 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 the top 10
shareholders and the top 10 As at the end of the Reporting Period, Qingdao Haichuangzhi Management
shareholders not subject to Consulting Enterprise (Limited Partnership) engaged in refinancing and
trading moratorium engaging in securities lending business, involving a total of 2,004,000 shares, whilst the
the margin trading and short ownership of which had not been transferred. The actual number of shares
selling and refinancing business held by it totaled 100,018,946 shares.
(if any)
III. Miscellaneous
Other significant information regarding the Company's operations during the Reporting Period
should be brought to the attention of investors
√ Applicable □Not Applicable
(1) External guarantees: As of 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 RMB20.18 billion, accounting for 26.0%
of the Company’s latest net assets and 9.5% of the latest total assets.
(2) Foreign exchange derivative: As of the end of the Reporting Period, the aggregate balance of
the Company’s foreign exchange derivative transactions amounted to approximately USD 2.17
billion.
12
(3) Entrusted wealth management: By the end of the Reporting Period, the balance of the
Company’s entrusted wealth management amounted to RMB2.21 billion, including two parts:
① wealth management products for temporarily idle fund raised previously: at the end of
December 2018, the Company’s proceeds for the issuance of convertible corporate bonds were
fully received. In order to improve the yield of temporarily-idle funds, the Company intended
to carry out cash management with the amounts not exceeding RMB0.5 billion after approved
by the Board. By the end of the Reporting Period, the balance of the entrusted wealth
management amounted to RMB0.36 billion; ② temporary-idle funds wealth management
used by certain subsidiaries of the Company: Under the premise of ensuring sufficient
capital required by the principal operating activities and daily operations, some subsidiaries of
the Company purchased some short-term principal-guaranteed wealth management products
and structured deposits from major commercial banks to improve the yield of temporarily-idle
funds and the return for shareholders within the authority of the president’s office meeting and
under the condition of ensuring fund safety. By the end of the Reporting Period, the balance of
the entrusted wealth management amounted to RMB1.85 billion.
(4) Progress of the A-share repurchases: On 5 March 2021, the Company convened the 16th
meeting of the 10th session of the Board, which considered and approved the Resolution in
Relation to the Repurchase Plan of a Portion of Public Shares of Haier Smart Home Co., Ltd. It
approved the Company to use its own funds to repurchase a portion of A shares of the
Company by way of centralised bidding. The repurchase price is no more than RMB46 per
share and the proposed total repurchase amount is no more than RMB4.0 billion and no less
than RMB2.0 billion, with no more than 86.96 million shares to be repurchased. The period of
this repurchase is within 12 months from the date the Board considered and approved the
resolution of repurchase of shares. As at the end of the Reporting Period, the Company had
repurchased a total of 71,838,966 shares, representing 0.76% of the total share capital of the
Company. The highest price purchased was RMB32.80 per share and the lowest price was
RMB24.89 per share, and the total amount paid was RMB1,994,364,263.42. For details, please
refer to the announcement on the progress of the repurchase disclosed by the Company on a
monthly basis.
(5) Progress of the Employee Stock Ownership Plan: During the Reporting Period, according to
the relevant arrangements in Core Employees A Share Ownership Plan of Haier Smart Home
Co., Ltd. (for Years 2021–2025) (Draft) and its Summary and the Core Employees H Share
Ownership Plan of Haier Smart Home Co., Ltd. (for Years 2021–2025) (Draft) and its
13
Summary, which were considered and approved at the general meeting and have come into
effect, the Company completed the shares pool building for the above share ownership plans.
Please refer to Announcement of Haier Smart Home Co., Ltd. on the Completion of Non-
transactional Transfer of Share Certificates for Core Employees A Share Ownership Plan and
Announcement of Haier Smart Home Co., Ltd. on the Completion of Share Purchase for Core
Employees H Share Ownership Plan (for Year 2021) issued on 24 July 2021 and 27 July 2021
for further details.
(6) Progress of the matters in relation to share incentives: The Company held the second
extraordinary general meeting of 2021 and other relevant meetings on 15 September 2021 to
consider and approve the "2021 A Share Option Incentive Scheme (draft) of Haier Smart
Home Co., Ltd. and its summary". The share incentive plan involved a total of 51,000,000
share options (of which 46,000,000 options would be granted under the first grant and
5,000,000 options would be reserved), with an exercise price of RMB25.63 per share. On 15
September 2021, the Company held the 23rd meeting of the tenth session of Board and other
relevant meetings to consider and approve the "Resolution on the First Grant of Share Options
to the Participants of Haier Smart Home Co., Ltd.", after which the works related to the first
grant of the share incentives were completed. Please refer to Announcement of Haier Smart
Home Co., Ltd. on the First Award of the 2021 A Share Options to the Participants issued on
the same date for further details.
IV. Quarterly Financial Statements
(I) Type of Audit Opinion
□Applicable √Not Applicable
(II) Financial Statements
Consolidated Balance Sheet
30 September 2021
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Type of Audit: Unaudited
Items 30 September 2021 31 December 2020
Current assets:
Cash at bank and on hand 41,415,025,484.61 46,461,329,426.91
Provision of settlement fund
Funds lent
Financial assets held for trading 2,888,189,624.36 2,165,192,497.83
Derivative financial assets 136,885,409.17 77,839,006.63
Bills receivable 14,584,132,119.43 14,136,349,754.34
Accounts receivable 18,116,053,952.58 15,930,024,286.67
14
Financing receivables
Prepayments 1,145,689,726.84 765,427,571.70
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 2,464,638,317.25 1,717,152,945.65
Including: Interest receivable
Dividend receivable
Financial assets purchased under
resale agreements
Inventories 36,070,094,427.60 29,446,973,404.75
Contract assets 239,570,182.64 263,412,927.58
Assets held for sale
Non-current assets due in one year
Other current assets 2,965,185,089.86 3,283,888,900.58
Total current assets 120,025,464,334.34 114,247,590,722.64
Non-current assets:
Loans and advances granted
Debt investments
Other debt investments
Long-term receivables 304,741,668.20 330,588,978.97
Long-term equity investments 22,807,807,301.52 21,567,658,450.89
Investments in other equity
4,242,437,904.06 2,659,125,265.54
instruments
Other non-current financial assets
Investment properties 26,816,851.55 28,387,002.81
Fixed assets 20,995,893,489.10 20,895,504,722.21
Construction in progress 5,818,491,926.80 3,596,902,447.07
Biological assets for production
Oil and gas assets
Right-of-use assets 2,827,110,733.34 2,839,858,259.27
Intangible assets 9,810,514,844.04 10,017,867,645.93
Development cost 233,229,783.08 167,746,724.13
Goodwill 22,243,100,696.36 22,518,460,337.64
Long-term prepaid expenses 516,927,472.21 455,742,504.13
Deferred income tax assets 1,837,596,917.04 2,208,301,258.25
Other non-current assets 1,250,446,349.68 1,925,761,560.17
Total non-current assets 92,915,115,936.98 89,211,905,157.01
Total assets 212,940,580,271.32 203,459,495,879.65
Current liabilities:
Short-term borrowings 8,458,180,631.47 7,687,908,165.88
Borrowings from central bank
Due to banks and other financial
institutions
Financial liabilities held for
2,224,705.72 26,952,508.66
trading
Derivative financial liabilities 95,516,212.72 239,582,532.90
Bills payable 24,375,581,162.68 21,236,057,053.67
Accounts payable 41,409,432,997.78 36,302,971,944.48
Receipts in advance
15
Contract liabilities 9,324,774,033.42 7,048,637,659.48
Disposal of repurchased financial
assets
Absorbing deposit and deposit in
inter-bank market
Customer deposits for trading in
securities
Amounts due to issuer for securities
underwriting
Payables for staff's remuneration 3,451,424,281.99 3,760,099,978.82
Taxes payable 2,376,641,406.71 2,399,705,460.12
Other payables 17,978,525,705.73 17,056,156,167.28
Including: Interest payable
Dividend payable
Fees and commissions payable
Reinsurance Accounts payables
Liabilities held for sale
Non-current liabilities due within one
8,213,205,476.08 7,522,724,913.40
year
Other current liabilities 355,285,824.66 6,112,053,944.63
Total current liabilities 116,040,792,438.96 109,392,850,329.32
Non-current liabilities:
Deposits for insurance contracts
Long-term borrowings 9,520,261,665.11 11,821,416,259.81
Bonds payable 383,013,786.19 6,713,501,050.27
Including: Preference shares
Perpetual bonds
Lease liabilities 2,075,728,389.63 2,072,702,352.68
Long-term payables 93,735,949.10 98,203,261.27
Long-term payables for staff’s
1,399,631,122.57 1,245,775,024.35
remuneration
Estimated liabilities 1,547,293,356.78 1,442,844,036.73
Deferred income 633,114,817.93 633,761,669.48
Deferred income tax liabilities 2,089,444,332.80 1,900,401,265.97
Other non-current liabilities 29,056,984.15 27,033,458.13
Total non-current liabilities 17,771,280,404.26 25,955,638,378.69
Total liabilities 133,812,072,843.22 135,348,488,708.01
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital) 9,395,905,824.00 9,027,846,441.00
Other equity instruments 133,398,235.40 2,364,195,333.79
Including: Preference shares
Perpetual bonds
Capital reserve 22,479,232,117.98 15,009,027,407.40
Less: treasury stock 2,215,540,540.97 28,896,550.65
Other comprehensive income -231,890,423.78 -1,046,216,729.06
Special reserve
Surplus reserve 3,045,334,539.60 3,045,334,539.60
General risk provisions
Undistributed profits 45,127,334,771.23 38,445,132,172.47
Total equity attributable to
owners (or shareholders) of the 77,733,774,523.46 66,816,422,614.55
Parent Company
16
Minority shareholders' interests 1,394,732,904.64 1,294,584,557.09
Total owners' equity (or
79,128,507,428.10 68,111,007,171.64
shareholders' equity)
Total liabilities and owners'
212,940,580,271.32 203,459,495,879.65
equity (or shareholders' equity)
Person in charge of the Company: Liang Haishan
Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Profit Statement
January-September 2021
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Type of Audit: Unaudited
2021 First Three 2020 First Three
Items Quarters (January- Quarters (January-
September) September)
Ⅰ. Total operating revenue 169,963,571,548.76 154,411,813,689.44
Including: Operating revenue 169,963,571,548.76 154,411,813,689.44
Interest income
Insurance premiums earned
Fee and commission income
Ⅱ. Total cost of operations 159,343,921,456.82 148,193,548,528.82
Including: Operating cost 118,623,829,079.36 111,131,091,030.65
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 surcharges 562,361,108.77 469,361,548.05
Selling expenses 26,098,146,035.41 23,362,019,340.66
Administrative expenses 7,557,331,611.69 7,081,266,745.91
R&D expenses 6,204,288,536.34 5,007,098,365.49
Financial expenses 297,965,085.25 1,142,711,498.06
Including: Interest expenses 542,540,233.96 1,032,220,170.47
Interest income 400,822,923.36 358,504,311.40
Add: other income 635,028,802.34 923,669,481.27
investment income (losses are
1,664,671,227.93 3,503,301,030.65
represented by “-”)
Including: Investment income of
associates and joint ventures
Income generated from the
derecognition of financial assets
measured at amortized cost
Exchange gain (losses are represented
by “-”)
17
Gains on net exposure hedges (losses
are represented by “-”)
Income from change in fair value
39,767,883.33 6,595,588.63
(losses are represented by “-”)
Loss on credit impairment (losses are
-141,683,845.18 -116,103,151.35
represented by “-”)
Loss on assets impairment (losses are
-728,421,071.61 -727,876,621.09
represented by “-”)
Gain from disposal of assets (losses
207,581,603.71 -52,591,373.95
are represented by “-”)
Ⅲ. Operating profit (losses are
12,296,594,692.46 9,755,260,114.78
represented by “-”)
Add: non-operating income 147,370,992.20 107,820,893.69
Less: non-operating expenses 104,861,881.92 122,983,406.06
Ⅳ. Total profit (total losses are represented by
12,339,103,802.74 9,740,097,602.41
“-”)
Less: income tax expense 2,274,926,783.00 1,721,111,958.00
Ⅴ. Net profit (net losses are represented by “-
10,064,177,019.74 8,018,985,644.41
”)
(I) Classification by continuous operation
1.Net profit from continuous
operation (net losses are represented by 10,064,177,019.74 8,018,985,644.41
“-”)
2. Net profit from discontinued operation
(net losses are represented by “-”)
(II) Classification by ownership of the equity
1. Net profit attributable to
shareholders of the Parent Company (net 9,934,611,508.38 6,300,507,503.54
losses are represented by “-”)
2. Profit or loss attributable to minority
shareholders (net losses are represented 129,565,511.36 1,718,478,140.87
by “-”)
VI. Other comprehensive income, net of tax 768,015,269.00 -1,726,210,230.61
(I) Other comprehensive income attributable
to shareholders of the listed Company, net 776,465,493.58 -1,664,084,285.15
of tax
1. Other comprehensive income that
cannot be reclassified into the profit or 1,180,689,883.33 -58,986,038.62
loss
(1) Changes arising from re-
-355,977.81 -2,796,373.04
measurement of defined benefit plans
(2) Other comprehensive income that
cannot be transferred into profit or loss
under equity method
(3) Changes in fair value of
investments in other equity 1,181,045,861.14 -56,189,665.58
instruments
(4) Changes in fair value of credit
risks of the enterprise
2. Other comprehensive income to be
-404,224,389.75 -1,605,098,246.53
reclassified into the profit or loss
(1) Other comprehensive income that 37,327,753.73 -189,651,363.03
18
can be transferred 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) Credit impairment provision for
other debt investments
(5) Reserve for cash flow hedging 116,947,915.82 -84,274,049.94
(6) Exchange differences on translation
of financial statements denominated in -558,500,059.30 -1,331,172,833.56
foreign currencies
(7) Others
(II) Other comprehensive income
attributable to minority shareholders, net of -8,450,224.58 -62,125,945.46
tax
Ⅶ. Total comprehensive income 10,832,192,288.74 6,292,775,413.80
(I) Total comprehensive income attributable
10,711,077,001.96 4,636,423,218.39
to the owners of Parent Company
(II) Total comprehensive income
121,115,286.78 1,656,352,195.41
attributable to the minority shareholders
Ⅷ. Earnings per share:
(I) Basic earnings per share (RMB/share) 1.072 0.958
(II) Diluted earnings per share (RMB/share) 1.061 0.939
Person in charge of the Company: Liang Haishan
Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Cash Flow Statement
January-September 2021
Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Type of Audit: Unaudited
2021 First Three 2020 First Three
Items Quarters (January- Quarters (January-
September) September)
I. Cash flow from operating activities:
Cash received from the sale of goods
173,651,240,498.75 147,291,023,850.68
and rendering services
Net increase in customer and inter-
bank deposits
Net increase in borrowing from the
central bank
Net cash increase in borrowing from
other financial institutes
Cash received from premiums under
original insurance contract
Net cash received from reinsurance
business
Net increase in deposits of policy
19
holders and investment
Cash received from interest, fee and
commissions
Net increase in placement from banks
and other financial institutions
Net increase in cash received from
repurchase operation
Net cash received from customer
deposits for trading in securities
Refunds of taxes 1,375,729,622.99 976,790,858.07
Cash received from other related
1,625,799,358.48 858,777,749.41
operating activities
Sub-total of cash inflows from
176,652,769,480.22 149,126,592,458.16
operating activities
Cash paid on purchase of goods and
118,817,633,261.77 107,290,072,174.03
services
Net increase in loans and advances of
customers
Net increase in deposits in the PBOC
and inter-bank
Cash paid for compensation
payments under original insurance
contract
Net increase in cash lent
Cash paid for interest, bank charges
and commissions
Cash paid for insurance policy
dividend
Cash paid to and on behalf of
18,881,393,407.16 16,400,625,372.03
employees
Cash paid for all types of taxes 7,580,113,678.87 5,612,184,299.93
Cash paid to other operation related
18,014,345,057.24 14,112,505,937.72
activities
Sub-total of cash outflows from
163,293,485,405.04 143,415,387,783.71
operating activities
Net cash flow from operating
13,359,284,075.18 5,711,204,674.45
activities
II. Cash flow from investing activities:
Cash received from recovery of 4,665,552,636.62 2,810,432,335.20
investments
Cash received from return on 578,040,778.24 348,202,313.61
investments
Net cash received from the disposal
of fixed assets, intangible assets and 42,303,385.93 80,436,732.37
other long-term assets
Net cash received from disposal of
subsidiaries and other operating 1,314,096,598.53
entities
Other cash received from investment
8,051,012.31
activities
Sub-total of cash inflows from
5,285,896,800.79 4,561,218,992.02
investing activities
Cash paid on purchase of fixed 4,907,211,978.77 5,099,603,609.64
20
assets, intangible assets and other
long-term assets
Cash paid for investments 5,582,993,847.32 1,758,422,705.33
Net increase in secured loans
Net cash paid on acquisition of
subsidiaries and other operating 345,271,380.17
entities
Other cash paid on investment
250,000.00 52,942,942.62
activities
Sub-total of cash outflows from
10,490,455,826.09 7,256,240,637.76
investing activities
Net cash flow from investing
-5,204,559,025.30 -2,695,021,645.74
activities
III. Cash flow from financing activities:
Cash received from capital
39,420,000.00 1,326,697,709.68
contributions
Including: Cash received from capital
contributions by minority
shareholders of subsidiaries
Cash received from borrowings 7,143,577,184.22 23,485,842,921.55
Other cash received from financing
4,422,492.60
activities
Sub-total of cash inflows from
7,182,997,184.22 24,816,963,123.83
financing activities
Cash paid on repayment of loans 12,788,537,940.13 14,546,595,992.83
Cash paid on distribution of
dividends, profits or repayment of 3,853,421,860.00 3,966,850,550.91
interest expenses
Including: Dividend and profit paid
to minority shareholders by
subsidiaries
Other cash paid to financing
3,622,853,443.72 552,815,827.98
activities
Sub-total of cash outflows from
20,264,813,243.85 19,066,262,371.72
financing activities
Net cash flow from financing
-13,081,816,059.63 5,750,700,752.11
activities
IV. Effect of fluctuations in exchange
-19,753,211.46 -400,075,956.59
rates on cash and cash equivalents
V. Net increase in cash and cash
-4,946,844,221.21 8,366,807,824.23
equivalents
Add: balance of cash and cash
equivalents at the beginning of the 45,635,132,638.48 34,962,947,399.85
period
VI. Balance of cash and cash
40,688,288,417.27 43,329,755,224.08
equivalents at the end of the period
Person in charge of the Company: Liang Haishan
Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
21
(III) The adjustments of the relevant items of the financial statements at the beginning of the year
due to the first implementation of new leasing standards since 2021
□Applicable √Not Applicable
The Board of Haier Smart Home Co., Ltd.
29 October 2021
22
