[年报]海尔智家(600690):海尔智家股份有限公司2024年年度报告（英文版）
原标题:海尔智家:海尔智家股份有限公司2024年年度报告（英文版） II. All Directors of the Company have attended the board meetings.III. Hexin Certified Public Accountants Limited LLP has issued a standard and unqualified audit report for the Company. IV. Li Huagang (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 report set out in the annual report is true, accurate and complete.V. Proposal of profit distribution or proposal of capitalizing capital reserves for the reporting period resoluted and adopted by the Board Proposal of profit distribution for the reporting period are examined and reviewed by the Board: to declare a cash dividend of RMB9.65 per 10 shares (tax inclusive) to all shareholders based on the total number of shares held on record date and after deducting the repurchased shares from the repurchase account upon the execution of distribution proposal, with proposed distribution amounting to RMB8,996,688,692.76 (tax inclusive). The proportion of cash distribution is 48.01% of the net profit attributable to shareholder of parent company of the Company for the year. If there is any change in the total share capital of the Company during the period from the date of this report to the record date of the equity distribution, the total distribution amount will be remained unchanged with corresponding adjustment to the proportion of distribution per share.VI. Disclaimer in respect of forward-looking statements √ Applicable □Not Applicable Forward-looking statements such as future plans, development strategies as set out in this report do not constitute the Company’s substantial commitment to investors. Investors are advised to pay attention to investment risks. VII. Is there any fund occupation by controlling shareholders and other related parties for non-operational purposes? No VIII. Is there any provision of external guarantee in violation of the prescribed decision-making procedures? No IX. Are there more than half of the Directors who are unable to guarantee the truthfulness, accuracy and completeness of the annual report disclosed by the Company?No X. Important Risk Warnings For the possible risks which the Company may encounter, please refer to the relevant information set out in the section of ‘MANAGEMENT DISCUSSION AND ANALYSIS’ in this report.XI. Others □ Applicable √ Not Applicable LETTER TO SHAREHOLDERS 4 SECTION I DEFINITIONS 8 SECTION II GENERAL INFORMATION OF THE COMPANY AND KEY FINANCIAL INDICATORS 10SECTION III MANAGEMENT DISCUSSION AND ANALYSIS 17 SECTION IV CORPORATE GOVERNANCE 72 SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES 109 SECTION VI SIGNIFICANT EVENTS 120 CHANGES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS 137 SECTION VII SECTION VIII RELEVANT INFORMATION OF PREFERENCE SHARES 149 SECTION IX RELEVANT INFORMATION OF BONDS 150 SECTION X FINANCIAL REPORT 151
In 2024, Haier Smart Home remained committed to “Creating Better Lives for Global Families” and achieved new heights in revenue and profit through strengthening technological innovation, accelerating digital transformation, and optimizing global strategic footprint while implementing business model transformation to lay down a solid foundation for sustainable growth. KEY PERFORMANCES IN 2024 We delivered record-level revenue and net profit. In 2024, Haier Smart Home’s global revenue reached RMB285.981 billion, representing a year-on-year increase of 4.29%. Net profit attributable to shareholders grew 12.92% to RMB18.741 billion and operating 1 profit was RMB 20.22 billion, up 15.8% year on year . We generated net cash flow from operating activities totalled RMB26.543 billion, 1.4 times our net profit. We consolidate market leadership in refrigerators, washing machines, and water heaters in China. We have made considerable progress in premium kitchen appliances, with the Casarte Ultra-realm (致境) seamless built-in range hood achieving 400% volume growth in the segment priced above RMB7,000.In 2024, we strengthened user engagement by implementing initiatives including digital inventory management and marketing, driving improvements in both user experience and operational efficiency. As a result, our domestic order response cycle improved by 13%. We actively capitalized on opportunities created by trade-in policy in China, to realized 10% overall revenue growth and over 30% Casarte growth in the fourth quarter. In the U.S., despite sluggish demand and intensifying competition, GE Appliances team focused on product leadership, channel partnerships, supply chain upgrades, and new opportunity expansion, to solidifying our position as the industry leader. Our innovative products including the Apex oven range, next-generation — dishwashers with stainless steel tub, and Combo Core heat pump washer-dryer combos have received widespread acclaim. We upgraded our Roper factory to cover full range of kitchen appliances with industry-leading manufacturing efficiency. GE Appliances’ HVAC revenue grew by 70% and RV appliances achieved double-digit growth. The Company has been recognized as the “Smart Appliance Company of the Year” by IoT Breakthrough for eight consecutive years. 2024 marks the 20th anniversary since we first entered India market and it has been a year of tremendous achievement as our revenue grew over 30% to USD 1 billion for the first time, the growth was attributable to local management team’s unwavering commitment to localization strategies. Our high value-added products, including the powerful 5-star energy-efficiency air conditioners and large-capacity front-load washing machines, have performed exceptionally well. The first phase of our eco-park in Egypt commenced operations in May 2024, with production capacity exceeding 200,000 units. In the HVAC sector, we continue to achieve technological breakthroughs, strengthen R&D capabilities, and implement supply chain integration for both residential air conditioning and smart building businesses, while accelerating international expansion of water heater business.We have continuously strengthened R&D investments in residential air conditioners over the past three years, to renovate our product platforms and models while solidifying our modular technology. Our products now lead the industry in both performance and consistency: wall-mounted units achieve APF values exceeding 6.3, while standing units surpass 5.2. Defect rate reduced by 11% year-on-year in 2024. With accelerated product iteration, new products will comprise over 50% of our offerings in 2025, promising strong market performance. We continue to deepen supply chain integration to enhance cost competitiveness, in 2024, our joint compressor factory in Zhengzhou reached a production capacity of 2.24 million units, while a total of 5.3 million units of PCBs were produced in our facilities in Zhengzhou and Chongqing.Our Smart Building business achieved revenue growth of 15% in 2024, surpassing the RMB10 billion milestone despite downturn in real estate and public building market. This success was driven by our long-term investment in core technologies and launch of new product platforms. We maintain market leadership in magnetic levitation systems, and our air suspension centrifugal chiller has been recognized for its high energy efficiency and included in the “Green Technology Promotion Catalog (2024 Edition)” jointly issued by eight government departments led by the National Development and Reform Commission.Our Water Heater and Purifier business is rapidly expanding into overseas markets. In December 2024, we completed the acquisition of Kwikot, a century-old market-leading water heater manufacturer in South Africa. We will enhance its competitiveness through synergies in R&D, procurement, and supply chain operations, to accelerate our global expansion in the water heater and purifier market.In October 2024, we completed the acquisition of Carrier’s commercial refrigeration business. Through this acquisition, we will expand into commercial refrigeration including retail refrigeration and cold storage to locking new growth opportunities. Carrier’s commercial refrigeration business has accumulated extensive technical expertise and commercial applications in CO refrigeration. Following the acquisition, both parties 2 are actively promoting synergies in global markets, R&D, and platform capabilities, while implementing organizational restructuring to provide rapid response and customer service, thus establishing a solid foundation for sustainable development. Innovate marketing approach to deliver brand value in ways that resonate more with consumers, revitalize our brand, and strengthen user connections. We have systematically enhanced content creation, successfully launched IP series including “Haier Initiative (海廠總動員)”, which achieved over 2 million mentions in a single month. Meanwhile, we have increased investment in Leader brand to attract young consumers through distinctive, minimalist designs and upgraded marketing. As a result, Leader’s retail sales grew by 26% year-on-year in 2024.Our technological innovations have received wide recognition from the industry, leading the sector towards smart and sustainable transformation. In 2024, our Multi-dimensional (temperature, humidity, oxygen, magnetic) Precision Control Technology Innovation and Industrialization for Household Preservation Appliances was honoured with the State Science this prestigious award in its 40-year history. To date, our Company has accumulated 17 State Science and Technology Progress Awards, making us the most decorated enterprise in the home appliance industry. In 2024, Haier’s Hefei Refrigerator Interconnected Factory became the world’s first enterprise to receive the 1 Industrie 4.0 Award for its breakthrough in AI technology integration.We advanced sustainable development strategy by promoting “RenDanHeYi” (人 單 合一) management philosophy and strengthening commitment to diversity and inclusion.In 2024, our Company continued to implement sustainable development strategy, inspiring employee innovation and fostering diversity and inclusion. We strengthened sustainable risk management to navigate complexity and volatility in global market. At the same time, we established sustainability divisions in every region where we operate, fulfilling local social responsibilities and building direct interactions with all stakeholders. This year, we launched many energy-efficient and carbon-reducing green products across global markets to earn wide consumer recognition. Through our efficient energy-saving products and digital smart platforms, we provided comprehensive energy solutions for homes and buildings to fulfil Haier Smart Home’s commitment to a greener planet. We also catered for the well-being of elderly users by introducing products with improved accessibility such as one-touch smart washing machines and gas stoves with automatic shut-off safety features. Guided by our “RenDanHeYi” (人單合一) management philosophy, we have created an inclusive workplace that nurtures diverse, cohesive, and high-performing teams. We believe innovation thrives when diverse cultures connect and blend. In 2024, we launched a women’s leadership empowerment program and strengthened the cultivation and development of young creators, technology experts, and globalized talents to build reserves for the future. We established a Company-wide Cultural Dialogue Platform where staff can engage in conversations about the work environment, organizational atmosphere, and cultural development, embodying our “employee-centred” principle to achieve more vibrant and diversified development.In 2024, Haier Smart Home was selected in Forbes’ World’s Best Employers list for the eighth consecutive year, while GE Appliances received “The Most Innovative Companies of 2024” award. MSCI upgraded our ESG rating to AA level, which serves not only as affirmation but also as encouragement, motivating us to continue the path of sustainable development. 2025: Accelerating Change to Embrace a New Era The year 2025 presents an intricate tapestry of challenges and opportunities.Geopolitical uncertainties and rising tariff barriers are accelerating the fragmentation of global trade systems, triggering cascading effects that are reshaping global supply chains. Meanwhile, the remarkable evolution of AI technology continues to drive transformative changes across industries.We anticipate a gradual recovery in real estate demand could be brought by interest rate cuts, offering promising prospects in the home appliance sector in the US and Europe. In emerging markets, economic growth, ongoing urbanization, and favourable demographic advantages are creating fertile ground for expansion in the industry. Originated from China, Haier Smart Home has devoted our energy and expertise to developing the best appliances to satisfy consumers all over the world by implementing global strategy leveraging Chinese engineering excellence. China’s sophisticated e-commerce and logistics infrastructures facilitate seamless communication between consumers and businesses, bridging gaps and accelerating product iteration. The robust supply chain and abundant talent pool are vital for Chinese enterprises to maintain substantial investments in innovation and create outstanding experience for users. Furthermore, by leveraging innovative technologies including AI, Chinese companies can enhance operational efficiency while optimizing organizational structures and processes. I am full of anticipations as Haier Smart Home accelerates our global strategy going forward. Our overseas markets still hold tremendous potential in both revenue scale and profitability. In 2025, we will capitalize on our global R&D platform to accelerate country-specific product innovation and iteration to address unique local market needs and improve price index. We will enhance our global logistics and marketing platforms as well as deploying end-to-end digitalization by adapting domestic models to local markets to drive operational efficiency. We will leverage localized production and the synergies of 131 global manufacturing facilities to build a well-balanced and resilient global supply chain, mitigating potential geopolitical impacts. In the domestic market, accelerated digital transformation of marketing and inventory management will enable us to connect with users more directly and swiftly, allowing distributors to operate with lighter assets which in turn will help accelerate product turnover, expand market share, and enhance profitability. In 2025, Haier Smart Home will fully embrace AI technologies to facilitate the implementation of comprehensive applications powered by advanced large models across our operations. Building on digital foundations, we will expand our AI capabilities. Our AI product series will deliver novel experiences to users with more intelligent, versatile, and personalized natural language interactions. We will leverage AI tools extensively to achieve more efficient development, targeted marketing, and optimized supply chain, while empowering every Haier team member to develop their own smart applications.Direct yet efficient user communication and brand vitality have become critical in the era of fans economy. Since March 2024, our management team has successively launched social media accounts to share Haier stories, listen to user needs, and collect user suggestions, thereby strengthening emotional bonds. This interactive model has injected new vitality into the Haier brand by involving users in product design and brand creation. In response to suggestions on social media platforms, we launched the Leader triple-drum washing machine on March 11th, eliminating the need for manual washing and unlocking a “new era for convenience”. Its Mickey Mouse-inspired design stands out from traditional appliances and went viral on social media. Within just one week of its release, we have received over 88,000 orders. We will make greater effort in engaging with young consumers, fully leveraging our advantages in R&D, manufacturing, quality, and service, while deepening interactions and connections, to provide not only authentic, high-quality products but also create delightful experiences. Finally, I would like to express my sincere gratitude to all shareholders for your unwavering support and trust. We are dedicated to overcoming challenges and creating greater value for shareholders, society, and users worldwide. I. DEFINITIONS Unless otherwise stated in the context, the following terms should have the following meanings in this report: Definition of frequently used terms CSRC China Securities Regulatory Commission SSE Shanghai Stock Exchange The Company, Haier Smart Home Co., Ltd., its original name is “Qingdao Haier Co., Haier Smart Home Ltd.”, and the original short name is “Qingdao Haier”Four Major Securities China Securities Journal, Shanghai Securities News, Securities Times, Newspapers Securities Daily Haier Electrics, 1169 Haier Electronics Group Co., Ltd. (a company originally listed in Hong Kong, stock code: 01169.HK), a subsidiary as accounted for in the consolidated statement of the Company. Haier Electrics has been privatized by way of H shares issuance on 23 December 2020 and became a wholly owned subsidiary of the Company since then. GE Appliances Household appliances assets and business of General Electric Group, have currently been owned by the Company. FPA Fisher & Paykel Appliances Holdings Limited (Chinese name: 斐雪派克), was established in 1934 and is known as the national appliance brand of New Zealand, the global top-level kitchen appliance brand and the famous luxury brand of the world. It has products including ventilator, gas stove, oven, dishwasher, microwave oven, built-in freezer, washing machine, clothes dryer and etc. Its business covers 50 countries/regions across the world. FPA is a wholly-owned subsidiary of the Company. Candy Candy Group (Candy S.p.A), is an international professional appliances manufacturer from Italy. Since its establishment in 1945, it has been committed to enabling the global users to enjoy a higher quality of life through innovative technologies and quality services. Candy Group has been prestigious in the global market with users all over the world via its various self-owned professional household appliance brands. In January 2019, Candy became a wholly-owned subsidiary of the Company.Gfk CMM GfK CMM, is a wholly owned subsidiary of the German GfK Group in China. It is an authoritative retail monitoring and market research institute in the Chinese home appliance and consumer electronics Euromonitor Euromonitor, established in 1972, is the leading strategic market information supplier and has over 40-years of experience in respect of publishing market report, commercial reference data and on-line database. They create data and analysis on thousands of products and services around the world. Gfk Gfk Group, the world’s leading market research company. After a long period of development and accumulation, Gfk Group’s global market research business covers consumer durables research, consumer research, media research, healthcare market research and special studies. All View Cloud All View Cloud (AVC) is a big data integrated solution provider to the smart home field, providing enterprises with big data information services, regular data information services and special data services.IEC The International Electrotechnical Commission, founded in 1906, is the world’s first organization for the preparation and publication of international electrotechnical standardization and is responsible for international standardization for electrical engineering and electronic engineering. The goals of the commission include: to effectively meet the needs of the global market; to ensure that the standards and conformity assessment programs are applied globally in a prioritized manner and to the greatest extent; to assess and improve the quality of products and services involved in its standards; to create conditions for the common use of complicated systems; to improve the effectiveness of the industrialization process; to improve human health and safety, and to protect the environment. IEEE The Institute of Electrical and Electronics Engineers, an international association of electronic technology and information science engineers, is currently the largest non-profit professional technology society in the world. It is committed to the development and research of electrical, electronic, computer engineering and science-related fields, and has now developed into an international academic organization with great influence in terms of the fields of space, computer, telecommunications, biomedicine, power and consumer electronics. Model of RenDanHeYi The concept of “Achieving win-win via RenDanHeYi” is the guarantee of (人單合一) Haier’s sustainable operation and the driving force of the Company featuring a self-motivated and empowering corporate culture. “Ren” is an employee who has the spirit of entrepreneurship and innovation; “Dan” is to create value for users. The “RenDanHeYi” management model encourages employees to create value for users with an entrepreneurial mindset, and to achieve self-value in line with the those of the Company and Key Financial Indicators I. INFORMATION OF THE COMPANY Chinese name 海尔智家股份有限公司 Chinese short name 海尔智家 English name Haier Smart Home Co., Ltd. English short name Haier Smart Home Legal representative Li Huagang II. CONTACT PERSON AND CONTACT INFORMATION Secretary to the Representative of Company Secretary Board securities affairs (D/H shares) Others Name Liu Xiaomei Liu Tao Ng Chi Yin, Trevor Global Customer Service Hotline Address Department of Department of Room 1908, 19th / Securities of Haier Securities of Haier Floor, Harbour Smart Home Co., Smart Home Co., Centre, 25 Harbour Ltd., Haier Science Ltd., Haier Science Road, Wan Chai, and Technology and Technology Hong Kong Innovation Innovation Ecological Park, Ecological Park, No.1 Haier Road, No.1 Haier Road, Qingdao City Qingdao City – – Tel 0532 88931670 0532 88931670 +852 2169 0000 4006 999 999 – – Fax 0532 88931689 0532 88931689 +852 2169 0880 / Email [email protected] [email protected] [email protected] / III. SUMMARY OF THE GENERAL INFORMATION Registered Address Haier Industrial Park, Laoshan District, Qingdao City (now known as Haier Science and Technology Innovation Ecological Park, Laoshan District, Qingdao City) Historical Changes to the Prior to the Company’s listing in 1993, the registered address of the Registered Address Company was No.165 Xiaobaigan Road, Sifang District, Qingdao City, Shandong Province, and has changed to the current address since 1994, during which the address name was adjusted in line with the change of name of the industrial park but the actual site remains unchanged Business address Haier Science and Technology Innovation Ecological Park, Laoshan District, Qingdao City Postal code of the business 266101 address Website https://smart-home.haier.com/cn/ Email [email protected] IV. PLACE FOR INFORMATION DISCLOSURE AND DEPOSIT Newspapers and websites Shanghai Securities News, Securities Times, China Securities Journal, for annual report Securities Daily disclosure Stock Exchange Website for www.sse.com.cn annual report disclosure as designated by the CSRC Other websites for annual https://smart-home.haier.com/cn/, www.xetra.com, www.dgap.de, report disclosure https://www.hkexnews.hk Deposit place of annual Department of Securities of Haier Smart Home Co., Ltd., Haier Science report and Technology Innovation Ecological Park, No.1 Haier Road, Qingdao City V. SUMMARIZED INFORMATION OF SHARES OF THE COMPANY Summarized information of shares of the Company Stock Short Stock Exchange of Name Before Type of Shares Shares Listed Stock Short Name Stock Code VariationA-shares Shanghai Stock Haier Smart Home 600690 Qingdao HaierExchange D-shares Frankfurt Stock Haier Smart Home 690D Qingdao HaierExchange H-shares Hong Kong Stock Haier Smart Home 6690 / VI. OTHER RELATED INFORMATION Accounting firm engaged Name Hexin Certified Public Accountants LLPby the Company Business Address 24th Floor, Century Building, (domestic) No.39 Donghai Road West, Qingdao City Name of signing Zuo Wei, Li Xiang Zhi accountant Accounting firm engaged Name HLB Hodgson Impey Cheng Limitedby the Company Business address 31st Floor, Gloucester Tower, The Landmark, (overseas) 11 Pedder Street, Central, Hong Kong Special Administrative Region Name of signing Yau Wai Ip accountant Note: Accounting firm engaged by the Company (domestic and overseas): Pursuant to the motion for the appointment of an auditor approved at the Company’s 2023 Annual Shareholders’ Meeting, the Company engaged Hexin Certified Public Accountants LLP and HLB Hodgson Impey Cheng Limited to issue the China Accounting Standards and International Accounting Standards auditing report respectively for the Company’s 2024 annual report. VII. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS IN THE RECENT THREE YEARS (I) Key accounting data Unit and Currency: RMB 2023 Key accounting data 2024 After adjustment Before adjustment Yoy change (%) 2022Operating revenue 285,981,225,203.93 274,204,520,847.97 261,427,783,050.10 4.29 243,578,924,958.47Net profit attributable to shareholders of the listed company 18,741,120,122.93 16,596,615,045.87 16,596,615,045.87 12.92 14,712,054,763.24Net profit after deduction of non- recurring profit or loss attributable to shareholders of the listed company 17,804,732,809.63 15,824,164,161.43 15,824,164,161.43 12.52 13,962,931,853.78Net cash flows from operating activities 26,543,081,911.96 26,535,780,568.36 25,262,376,228.30 0.03 20,256,557,145.86At the end of 2023 At the end of 2024 After adjustment Before adjustment Yoy change (%) At the end of 2022Net assets attributable to shareholders of the listed company 111,366,118,999.17 101,265,984,771.17 103,514,153,535.04 9.97 93,459,437,602.44Total assets 290,113,822,824.61 261,067,684,897.49 253,379,859,977.97 11.13 236,017,821,177.50(II) Key financial indicators 2023 Key financial indicators 2024 After adjustment Before adjustment Yoy change (%) 2022Basic earnings per share(RMB/share) 2.02 1.79 1.79 12.85 1.58 Diluted earnings per share (RMB/share) 2.02 1.78 1.78 13.48 1.57 Basic earnings per share after deducting non-recurring profit or loss (RMB/share) 1.93 1.71 1.71 12.87 1.50 Weighted average return on Increased by 0.46 net assets (%) 17.70 17.24 16.85 percentage points 16.80 Weighted average return on net assets after deducting non-recurring profit or Increased by 0.75 loss (%) 16.81 16.06 16.06 percentage points 15.95 Explanation of the key accounting data and financial indicators of the Company as at the end of the reporting period for the previous three years □ Applicable √ Not Applicable VIII. DIFFERENCES IN ACCOUNTING DATA UNDER DOMESTIC AND OVERSEAS ACCOUNTING STANDARDS (I) Differences in net profit and net asset attributable to shareholders of listed company in financial report disclosed in accordance with International Accounting Standards and China Accounting Standards □ Applicable √ Not Applicable There is no difference between the net profit and net assets attributable to shareholders of the listed company presented in the consolidated financial statements disclosed in accordance with International Accounting Standards and China Accounting Standards.(II) Differences in net profit and net asset attributable to shareholders of the listed company in financial statements disclosed in accordance with overseas accounting standards and China Accounting Standards □ Applicable √ Not Applicable Apart from the financial statements prepared in accordance with International Accounting Standards, the Company did not prepare any financial statements in accordance with other overseas accounting standards. (III) Explanation on the difference between the domestic and overseas accounting standards: □ Applicable √ Not Applicable IX. KEY FINANCIAL DATA OF 2024 BY QUARTER Unit and Currency: RMB Q4 Q1 Q2 Q3 (October- (January-March) (April-June) (July-September) December) Operating revenue 71,866,159,446.57 70,060,324,906.71 70,811,687,817.19 73,243,053,033.46Net profit attributable to shareholders of the listed Company 4,772,967,900.81 5,647,250,488.41 4,734,229,394.77 3,586,672,338.94Net profit after deduction of non-recurring profit or loss attributable to shareholders of the listed Company 4,639,880,144.13 5,520,624,758.25 4,524,653,457.51 3,119,574,449.74Net cash flows from operating activities 2,092,240,692.01 6,474,726,848.67 6,076,169,839.77 11,899,944,531.51 Explanation on the difference between quarterly data and disclosed regular reporting data√ Applicable □ Not Applicable During the reporting period (December 2024), the Company completed the consolidation of its logistics business (business combination under common control) and restated its financial data for the first three quarters in accordance with relevant accounting regulations.X. NON-RECURRING PROFIT AND LOSS ITEMS AND AMOUNT √ Applicable □ Not Applicable Unit and Currency: RMB Non-recurring profit and loss items Amount in 2024 Amount in 2023Profit or loss from disposal of non-current assets, including the write-off of provision for asset impairment –77,035,862.98 –97,873,276.66Government subsidies included in current profit or loss, except for government subsidies that are closely related to the Company’s normal business operations, conformed to requirements of state policies and granted according to specific criteria, and have a sustained impact on the Company’s profit or loss 1,324,181,478.11 1,093,584,406.07 Profit or loss arising from changes in fair value of financial assets and financial liabilities held by non-financial entities, and profit or loss arising from disposal of financial assets and financial liabilities, except for effective hedging activities related to the Company’s normal business operations 46,092,153.02 20,829,305.37 Net profit or loss of subsidiaries arising from business combinations under common control of the current period from the beginning of the period to the date of consolidation –2,581,701.76 Other non-operating income and expenses apart from the aforesaid items –139,979,862.69 –71,400,519.77 Less: Effect of income tax –178,092,484.16 –150,225,774.23Effect of minority interests (after tax) –38,778,108.00 –19,881,554.58Total 936,387,313.30 772,450,884.44 For the Company’s recognition of items that are not listed in the “Explanatory Announcement on — Information Disclosure for Companies Offering Their Securities to the Public No.1 Non-recurring Profit or Loss” as non-recurring profit or loss items and the amount of which is significant, and for non-recurring profit or loss items as illustrated in the “Explanatory Announcement on Information — Disclosure for Companies Offering Their Securities to the Public No.1 Non-recurring Profit or Loss” designated as recurring profit or loss items, reasons shall be specified.□ Applicable √ Not Applicable XI. ITEMS MEASURED BY FAIR VALUE √ Applicable □ Not Applicable Unit and Currency: RMB Affected amount to Changes in the profit of current Items Opening balance Closing balance current period period Wealth management products 490,968,101.81 746,436,121.40 255,468,019.59 69,235,110.56Investment in other equity instruments 6,403,694,954.77 5,986,688,663.46 –417,006,291.31 54,432,967.18 Investment in trading equity instruments 243,224,439.64 195,177,368.77 –48,047,070.87 –1,751,987.70Investment funds 222,803,002.38 294,404,349.36 71,601,346.98 41,204,390.70Financing receivables 200,326,471.85 360,069,391.56 159,742,919.71 –5,363,796.80Derivative financial instruments –101,059,175.53 71,698,406.90 172,757,582.43 65,450,612.90Total 7,459,957,794.92 7,654,474,301.45 194,516,506.53 223,207,296.84XII. OTHERS □ Applicable √ Not Applicable Analysis I. DISCUSSION AND ANALYSIS ON OPERATIONS Performance Overview In 2024, the Company achieved revenue of RMB285.981 billion, representing an increase of 4.29% 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 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; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB17.805 billion, representing a 12.5% increase from 2023.(1) The Company’s gross profit margin reached 27.8% 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 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 4.2% 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. — (4) The financial expense ratio was 0.3% in 2024 (where expense is “+” and income is “ ”), an increase of 0.2 percentage points compared to 2023, as increase in interest income generated by better capital management was partly offset by higher interest payment.In 2024, the Company’s net cash flow from operating activities was RMB26.543 billion, flat year-on- year. I. Household Food Storage and Cooking Solutions (1) Refrigerator business In 2024, global refrigerator business achieved revenue of RMB83.556 billion, representing a year-on-year growth of 2.01%. The Company maintained global leadership through continuous innovation, targeted brand positioning, and efficient localized supply chain deployment. The Company focused on advancing technologies including food preservation, built-in applications, and AI, to provide users with enhanced experiences and smart food solutions. Market Share Performance. According to GfK, the Company maintained domestic market leadership as retail revenue share rose 1 percentage point year-on-year to 40.4% online, and 44.1% offline. According to Euromonitor, our overseas retail volume share was 14%, ranking first in 7 countries, among top three in 14 countries, and top five in 20 countries.Continuous technological innovation to lead the industry The Company continued investing in cutting-edge technologies, focusing on preservation technology, integrated home appliance and furnishing design, energy efficiency and AI applications to consolidate leadership. Our Multi-dimensional (temperature, humidity, oxygen, magnetic) Precision Control Technology Innovation and Industrialization for Household Preservation Appliances won the State Science and Technology Progress Award, establishing a new technical benchmark in the industry. Our MSA nitrogen-oxygen technology has achieved cellular-level freshness as fruits and vegetables could preserve up to 99% of nutrients after 7 days, while magnetic-controlled cooling and freezing technology could preserve the taste and texture of raw meat after 10 days. For home appliance and furnishing integration, our proprietary 594mm flat built-in technology does not only set industry standard, but also has been widely implemented in the Casarte C-label series and Haier high-end products, positioning us at the forefront of integrated solutions for luxury living. The Company pioneered products featuring precision-controlled variable flow refrigeration, frequency conversion, and new insulation technologies that meet the European A-20% energy efficiency standard. The Company also actively integrated cutting-edge technologies such as image recognition, voice interaction, and human movement detection to create an AI large model specialized in food preservation, introduced personalized elderly-friendly and gourmet chef modes, and offered customized over-the-air smart scenario upgrades. In 2024, we published the upgrade of IEC 63169 which was the industry’s first freshness preservation standard originally drafted by Haier and adopted in over 30 countries, the Company also took the lead in publishing the national preservation standard GB/T 44494. The domestic market “Dual High-End Brand” strategy strengthened market leadership. The Company leveraged both Haier and Casarte brands to maintain industry-leading market share through precise product positioning and innovative marketing approaches. Casarte published Built-in Refrigerator White Paper and Consumer Guide, consolidating leadership with built-in specifications and bottom-mounted refrigeration system after publishing Flat Built-in Refrigerators standard in 2023, contribution to 30% market share in segment priced RMB10,000. The Haier Heyue (和悅) series, featuring innovative light-coloured exteriors, smart interactive lighting, and panoramic illumination design, increased the brand’s high-end market share. Our Mailang (麦浪) series drove sales of ultra-thin, zero-gap built-in products beyond 300,000 units with soft colour palette, storage segmentation and 594mm built-in technology. The Company strategically launched content marketing campaign and promoted user engagement on social media platforms such as Douyin and Xiaohongshu, successfully elevating Haier Mailang refrigerators to the top position in appliances trending list. Casarte Ultra-realm (致境) refrigerators ranked among the top five in online searches, with brand awareness increasing by 124% year-on-year. Additionally, we strengthen brand influence by interacting with premium users at Shanghai Haier Refrigerator Urban Experience Centre and high-end brand exhibition at Chengdu SKP. Overseas markets In 2024, the refrigerator business continued to gain momentum in major global markets and steadily expanded our market share. The Company continued to strengthen market leadership in the U.S., Australia, New Zealand, Japan, and Pakistan. In Europe, the Candy brand successfully reshaped its image and enhanced market competitiveness through innovative product series featuring Italian design. In India, our market share increased from 13% to 15% leveraging differentiated high-end product portfolios and localized supply chain. In Vietnam, the Company doubled sales volume in mainstream capacity segment through precise product positioning and channel expansion, elevating our overall market share to second place.In terms of product innovation, the high-end BM refrigerator launched in the U.S. became an instant bestseller, while the Magic Cooling series in Southeast Asia rapidly gained recognition from both distributors and consumers, effectively driving market share growth.The continuous strengthening of supply chain competitiveness provided strong support for the rapid market share growth overseas. Our Southeast Asian factories we significantly improved manufacturing efficiency through product mix and process optimization in Southeast Asia and unlocked potentials in production capacity in South Asia.(2) Kitchen appliance business In 2024, our kitchen appliance business remained committed to global smart kitchen appliances leader strategy, by driving innovation in product suites, built-in technologies, and smart scenario-based solutions, to achieve global revenue of RMB41.184 billion.According to GfK, our market shares increased by 1 percentage point online and ranks third with 0.2 percentage points expansion offline in China. According to Euromonitor International the Company’s global market share (by volume) reached 9.4% in 2024.The domestic market The Company actively integrated leading technologies of GE Appliances, FPA, and Candy to successfully overcome challenges such as range hood noise reduction, lifting technology, dry-fire protection, and automatic door opening for steam ovens to enhance user experience and improve energy efficiency performance. By connecting global technology and module platforms we were able to promote the application of advanced technologies and modules in the Chinese market, spearheading industry trends. In 2024, Casarte’s Ultra-realm (致境) range hood, with its seamless built-in design, drove a 400% sales volume growth in the segment priced above RMB7,000. The Xingyue series, with its outstanding design and performance, successfully captured the largest market share in the RMB6,000 price segment. We focused on enhancing network capabilities and sales team competencies to support business growth. We upgraded 1,000 experience centres, improved the display and sales of Ultra-realm (致境) and Galaxy (銀河) series in store, and reinforced retail capabilities to increase conversion ratio. The Company improved production efficiency and capacity by establishing automated production lines and optimizing global supply chain while reducing production costs by increasing in-house production of stove glass, sheet metal, and injection moulding.Overseas markets Despite weak demand in the U.S., the Company enhanced brand competitiveness and market performance. New high-end products launched by GE Appliances continued to gain market recognition: the GE oven range with easy-to-clean baking tray won the USA TODAY “2024 KBIS Reviewed Awards”; the Café countertop air fryer oven was selected for Oprah’s annual gift list; and Profile and Café ovens were named best products of the year by Reviewed.com, strengthening our position in the premium market.In Australia and New Zealand, FPA and Haier brands delivered outstanding performance: In Australia, the two brands’ market share increased by 2 percentage points, propelling us to number one. Dishwasher market share grew by 4 percentage points, while kitchen appliances increased by 1 percentage point. In New Zealand, our dual brands maintained their top position and Haier brand achieved double-digit growth across major retail channels. In Europe, the Company successfully entered high-end retail channels including Darty in France and ECI in Spain, while expanding into professional kitchen channels in Italy. We also made progress in Southeast Asia and South Asia. II. Household Laundry Management Solutions In 2024, our laundry business continued to strengthen technological innovation, product upgrades, market expansion, and supply chain optimization. We accelerated the digital inventory and marketing transformation to enhance omni-channel retail capabilities in the domestic market while strengthening product innovation and channel expansion to achieve stable growth overseas. In 2024, global revenue reached RMB63.321 billion, representing a year-on-year increase of 2.98%. According to GfK, the Company continued to lead in offline market in China. Online retail share reached 37.9%, up 1.1 percentage points year-on-year. According to GfK and data from distribution channels, we captured leading market shares in multiple countries including Australia (29.5%), New Zealand (41.6%), and Pakistan (35%). The Company capitalized on the trends toward large capacity, smart, and integrated washing and drying solutions through technological breakthroughs and pioneering products. To address the post-washing odour issue in front-load washers, we introduced “Air Navigation Technology,” which refreshes the air inside the drum every 2 minutes. To solve the lint clogging problem during drying, we implemented AI algorithms and multi-connected PTC heaters that adapt to moisture levels, preventing temperature-related damage. The Haier LangJing (朗境) X11 series washing machine, equipped with these innovative technologies, received A-60% VDE certification from the German Association for Electrical Engineering, making it one of the most energy-efficient washing machines globally.（未完）  |