Haier Smart Home [H Shares] (06690)
Last Update: 2025-08-08
Stock Name
Haier Smart Home [H Shares]
Listing Date
2020-12-23
Sector
Industrials
Chairman
LI Huagang
Par Value
1.000(RMB)
Total Issued Capital
2.857B
Market Cap
71.035B
Principal Activities
Principally engaged in smart home business in China and overseas, evolving around a comprehensive portfolio of home appliances established over the years, covering primarily refrigeration appliances, kitchen appliances, air-conditioners, laundry appliances and water appliances, with value-added consumer services.
Latest Results
1Q results for the 3 months ended 31-03-2025. No dividend was declared. (Announcement Date: 29 Apr 2025)
Business Review - For the year ended December 31, 2024
In 2024, the Company achieved revenue of RMB285.971 billion, representing an increase of 4.3% compared to the same period in 2023. The growth in revenue was attributable to:
(1) China Market: We actively capitalized on the trade-in policy and leveraged high-end product and brands, to realize a double-digit growth in the fourth quarter, with Casarte revenue up by over 30%. We strengthened strategic investments in Leader brand, focusing on building brand awareness among young consumers to drive strong revenue growth.
(2) Overseas Markets: We continuously expanded our market share across all regions, outperforming the industry particularly in emerging markets such as Southeast Asia, South Asia, Middle East and Africa, where we focused on upgrading product mix and advancing retail transformation.
(3) Through external acquisitions and internal transformation, we accelerated the development of our HVAC business. Strategic acquisitions of Carrier’s commercial refrigeration business (consolidated in October 2024) and South Africa’s water heater leader Kwikot (consolidated in December 2024) have enabled us to expand our commercial refrigeration business and accelerate the development of water heater and purifier businesses in overseas markets. Global smart building grew 15% to over RMB10 billion in revenue, supported by continuous investment in core technologies and ongoing product platform iterations.
(4) We actively seized development opportunities from improvement in living quality and transition to low-carbon economy by building a comprehensive product portfolio including tumble dryers, dishwashers, water purifiers, home cleaning robots, heat pumps and recycling solutions.
In 2024, the net profit attributable to shareholders of the parent company was RMB18.741 billion, up 12.9% from 2023.
(1) The Company’s gross profit margin reached 27.2% in 2024, up 0.3 percentage points compared to the same period in 2023. Margin improvement in domestic market was driven by lower commodity prices, digitalization in procurement, R&D, production and sales coordination, and improved product mix. Digitalized procurement and production capacity utilization also contributed to gross margin expansion in overseas markets.
(2) The selling and distribution expense ratio was 11.7% in 2024, a reduction of 0.2 percentage points compared to the same period in 2023, leveraging digitally enhanced efficiency in marketing resource allocation, logistics and warehouse operations in China while increased spending in network expansion, promotions, and store upgrades causing selling expense to remain flat in the overseas markets.
(3) The administrative expense ratio was 8.6% in 2024, an improvement of 0.1 percentage points compared to the same period in 2023, driven by streamlined business processes and digitally enhanced organizational efficiency.
In 2024, the Company’s net cash flow from operating activities was RMB26.543 billion, flat year-on-year.
Business Outlook - For the year ended December 31, 2024
1. The domestic market
Currently, China’s home appliance market is characterized by high penetration and a large installed base, with replacement purchases becoming the main growth driver. According to GfK, by the end of 2023, China’s home appliance ownership exceeded 6.9 billion units; 66% of purchases were replacements, while 34% were first-time or additional purchases. The overall market is expected to grow in the future as consumers continue to improve quality of life thus driving value growth from product upgrades and increasing penetration of categories such as dishwashers and tumble dryers.
The 2025 Government Work Report points out that China will firmly implement strategies to expand domestic demand, allocating RMB300 billion in special ultra-long-term bonds to support trade-in programs for consumer goods. White goods, with their high value and necessity in nature, are likely to continue benefiting from these initiatives. AVC expects the home appliance industry to maintain growth in 2025.
2. Overseas markets
In 2025, global home appliance market will be affected by macroeconomic fluctuations and changes in trade policies, with consumer upgrade trends and structural growth opportunities. Companies need to monitor economic and policy developments and adapt to uncertainties through technological innovation, cost control, and flexible supply chain strategies to capture growth.
(1) North America
OECD forecasts US economy to grow 1.9% and the FED expects PCE inflation to be 2.7% in 2025. However, tariffs continue to create uncertainties for business investment and individual incomes, thus creating pressure for home appliance market where consumers still prefer high efficiency and energy saving products. The appliance industry is likely to benefit from rate-cut related property market recovery in the long run.
(2) Europe
The European economy continues to be affected by uncertainties from the Russia-Ukraine conflict and energy price fluctuations. However, production costs and retail prices of home appliances are expected to decrease with the gradual declining in natural gas prices. While trade uncertainties put pressure on the euro, EU fiscal expansion and potential increases in defence spending may alleviate some economic pressure. The market is expected to remain focused on sustainable, environmentally friendly and energy-efficient products thus intensifying competition in ESG performance and product innovation.
(3) Emerging Markets
Emerging markets show favourable growth prospects. Accelerated urbanization and middle-class expansion in Southeast Asia, South Asia, the Middle East, and Africa will create new market opportunities and interest rate cuts may improve consumer credit environment thus benefiting home appliance consumption.
Source: Haier Smart Home (06690) Annual Results Announcement
Principally engaged in smart home business in China and overseas, evolving around a comprehensive portfolio of home appliances established over the years, covering primarily refrigeration appliances, kitchen appliances, air-conditioners, laundry appliances and water appliances, with value-added consumer services.
Latest Results
1Q results for the 3 months ended 31-03-2025. No dividend was declared. (Announcement Date: 29 Apr 2025)
Business Review - For the year ended December 31, 2024
In 2024, the Company achieved revenue of RMB285.971 billion, representing an increase of 4.3% compared to the same period in 2023. The growth in revenue was attributable to:
(1) China Market: We actively capitalized on the trade-in policy and leveraged high-end product and brands, to realize a double-digit growth in the fourth quarter, with Casarte revenue up by over 30%. We strengthened strategic investments in Leader brand, focusing on building brand awareness among young consumers to drive strong revenue growth.
(2) Overseas Markets: We continuously expanded our market share across all regions, outperforming the industry particularly in emerging markets such as Southeast Asia, South Asia, Middle East and Africa, where we focused on upgrading product mix and advancing retail transformation.
(3) Through external acquisitions and internal transformation, we accelerated the development of our HVAC business. Strategic acquisitions of Carrier’s commercial refrigeration business (consolidated in October 2024) and South Africa’s water heater leader Kwikot (consolidated in December 2024) have enabled us to expand our commercial refrigeration business and accelerate the development of water heater and purifier businesses in overseas markets. Global smart building grew 15% to over RMB10 billion in revenue, supported by continuous investment in core technologies and ongoing product platform iterations.
(4) We actively seized development opportunities from improvement in living quality and transition to low-carbon economy by building a comprehensive product portfolio including tumble dryers, dishwashers, water purifiers, home cleaning robots, heat pumps and recycling solutions.
In 2024, the net profit attributable to shareholders of the parent company was RMB18.741 billion, up 12.9% from 2023.
(1) The Company’s gross profit margin reached 27.2% in 2024, up 0.3 percentage points compared to the same period in 2023. Margin improvement in domestic market was driven by lower commodity prices, digitalization in procurement, R&D, production and sales coordination, and improved product mix. Digitalized procurement and production capacity utilization also contributed to gross margin expansion in overseas markets.
(2) The selling and distribution expense ratio was 11.7% in 2024, a reduction of 0.2 percentage points compared to the same period in 2023, leveraging digitally enhanced efficiency in marketing resource allocation, logistics and warehouse operations in China while increased spending in network expansion, promotions, and store upgrades causing selling expense to remain flat in the overseas markets.
(3) The administrative expense ratio was 8.6% in 2024, an improvement of 0.1 percentage points compared to the same period in 2023, driven by streamlined business processes and digitally enhanced organizational efficiency.
In 2024, the Company’s net cash flow from operating activities was RMB26.543 billion, flat year-on-year.
Business Outlook - For the year ended December 31, 2024
1. The domestic market
Currently, China’s home appliance market is characterized by high penetration and a large installed base, with replacement purchases becoming the main growth driver. According to GfK, by the end of 2023, China’s home appliance ownership exceeded 6.9 billion units; 66% of purchases were replacements, while 34% were first-time or additional purchases. The overall market is expected to grow in the future as consumers continue to improve quality of life thus driving value growth from product upgrades and increasing penetration of categories such as dishwashers and tumble dryers.
The 2025 Government Work Report points out that China will firmly implement strategies to expand domestic demand, allocating RMB300 billion in special ultra-long-term bonds to support trade-in programs for consumer goods. White goods, with their high value and necessity in nature, are likely to continue benefiting from these initiatives. AVC expects the home appliance industry to maintain growth in 2025.
2. Overseas markets
In 2025, global home appliance market will be affected by macroeconomic fluctuations and changes in trade policies, with consumer upgrade trends and structural growth opportunities. Companies need to monitor economic and policy developments and adapt to uncertainties through technological innovation, cost control, and flexible supply chain strategies to capture growth.
(1) North America
OECD forecasts US economy to grow 1.9% and the FED expects PCE inflation to be 2.7% in 2025. However, tariffs continue to create uncertainties for business investment and individual incomes, thus creating pressure for home appliance market where consumers still prefer high efficiency and energy saving products. The appliance industry is likely to benefit from rate-cut related property market recovery in the long run.
(2) Europe
The European economy continues to be affected by uncertainties from the Russia-Ukraine conflict and energy price fluctuations. However, production costs and retail prices of home appliances are expected to decrease with the gradual declining in natural gas prices. While trade uncertainties put pressure on the euro, EU fiscal expansion and potential increases in defence spending may alleviate some economic pressure. The market is expected to remain focused on sustainable, environmentally friendly and energy-efficient products thus intensifying competition in ESG performance and product innovation.
(3) Emerging Markets
Emerging markets show favourable growth prospects. Accelerated urbanization and middle-class expansion in Southeast Asia, South Asia, the Middle East, and Africa will create new market opportunities and interest rate cuts may improve consumer credit environment thus benefiting home appliance consumption.
Source: Haier Smart Home (06690) Annual Results Announcement
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