Haier Smart Home 2023 Annual Report: Performance doubles, profit growth continues to exceed revenue
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On the evening of March 27, Haier Smart Home released its 2023 annual report. The financial report shows that in 2023, Haier Smart Home achieved revenue of 261.428 billion yuan, a year-on-year increase of 7.33%; operating profit was 16.921 billion yuan, a year-on-year increase of 15.8%; net profit attributable to the parent company was 16.597 billion yuan, a year-on-year increase of 12.81%, and the profit growth rate continued to exceed the operating rate. revenue growth; the net cash flow generated from operating activities was 25.262 billion yuan, a year-on-year increase of 24.71%, and the quality of operations continued to improve. Haier Smart Home, which insists on creating independent brands, creating global high-end brands, continuing to promote digital transformation, and implementing smart home strategies, has achieved a three-year profit compound growth rate of 12.7%, achieving long-term steady growth.
Casarte has been ranked top in the high-end market for eight consecutive years, and Haier’s share in various categories has continued to increase.
In the past 2023, the home appliance industry has faced various challenges, and companies have also targeted the high-end market and launched high-end brands. GfK Zhongyikang data shows that the sales of high-end home appliances such as refrigerators with a price of more than 10,000 yuan and washing machines with a price of 6,000 yuan have continued to increase year-on-year for three years, and the high-end market continues to outperform the industry.
As the absolute leader in the high-end market, Casarte continues to iterate based on user trends, and through brand innovation, product innovation, and model innovation, it has ranked first in the high-end market for eight consecutive years. The financial report shows that Casarte ranks first in the high-end market in multiple categories: the offline market share of refrigerators above 15,000 yuan is 50%, the offline market share of washing machines above 10,000 yuan is 84%, and the offline market share of air conditioners above 15,000 yuan is 84%. 28%.
At the same time, Haier Smart Home insists on retail transformation and creates user needs with original technology. For example, the Boguan refrigerator solves the user’s problem of high-end food storage such as “large temperature fluctuations” in the freezer area; the Yunxi series washing and drying machine solves the user’s long washing time and difficulty in drying large items; and solves the user’s discomfort caused by air-conditioning wind drying and prolonged blowing. “Air-washing” air conditioners, etc. for indoor air problems. These original and popular products that focus on solving user needs have driven the continuous net increase in the share of Haier Smart Home in various industries by integrating into scenarios, and continue to lead the way.
The financial report shows that in China’s domestic market, Haier’s refrigerators and washing machines continued to increase on the basis of their first share: the offline market share of refrigerators rose to 45.2%; the offline market share of washing machines rose to 47.5%, among which the offline market share of clothes dryers increased. to 40.4%, ranking TOP 1 in the industry. Haier water heaters rank TOP 1 in market share in JD.com, Tmall, Douyin, Suning, Five Star, Alliance and other channels, and the growth rate of each channel far exceeds that of the industry.
It is worth mentioning that Haier air conditioners have achieved both revenue and profit growth. By strengthening the construction of technology-led capabilities, deepening market retail transformation and digitalizing the entire process to reduce costs, household air conditioners have comprehensively improved their business competitiveness: Casarte air conditioners have a 37% share of high-end products priced above 10,000 yuan, ranking first in the industry in the Chinese market in this price range . Smart Building focuses on the strategy of “leader in smart low-carbon building solutions” and based on the HVAC business, develops growth points such as heat pump energy, energy management, and building intelligent control. The heat pump business grew by 20%. Thanks to the above performance, the operating profit margin of the air-conditioning industry increased by 1.4 percentage points and continued to improve.
Overseas high-end brand creation, each region continues to lead
Compared with companies engaged in export trade, Haier Smart Home, which insists on creating its own brands, is more affected by unfavorable factors such as weakening overseas demand and rising interest rates. However, Haier Smart Home has achieved growth that is better than the industry by continuing to deepen its high-end brand creation strategy, promoting globalization with localization, and serving globalization with globalization. The financial report shows that Haier Smart Home’s overseas revenue in 2023 will be 136.412 billion yuan, a year-on-year increase of 7.62%.
At the same time, overseas regions performed well. In the United States, against the backdrop of flat industry sales and intensified competition, Haier Smart Home’s revenue bucked the trend and grew by 4.07%, and GE Appliances has become the leading local home appliance company; in Europe, against the backdrop of a 4% decline in the industry, Haier Smart Home’s revenue increased by 4.07%. Revenue bucked the trend and grew by 23.93%, and has been the fastest growing market for eight consecutive years; in New Zealand, Fisher & Paykel ranks No.1 in the white goods market; in Pakistan, Haier ranks No.1 in the industry in terms of market share; in Vietnam, AQUA washing machines rank No.1 No. 1 in the industry; in Thailand, Haier air conditioners and freezers rank No. 1 in the industry.
In order to achieve sustained growth in overseas markets, Haier Smart Home is also actively deploying its products globally. In 2023, Haier Smart Home first laid the foundation for the Egyptian Ecological Park, and then put into operation a kitchen appliance factory in Pakistan. With the completion of these layouts, Haier Smart Home will release more production capacity, create product solutions that better meet the needs of local users, and further expand overseas market potential.
Continue to deepen digital transformation and optimize rates by another 0.23 percentage points
In a complex and ever-changing global economy, only destructive and disruptive innovation can provide accurate responses. In 2023, Haier Smart Home will comprehensively deepen digital transformation, use digital transformation to drive the transformation of the entire enterprise process, focus on user experience, focus on the reshaping of the entire process value chain, and use digital intelligence technology as the carrier to realize the internal operations of the enterprise. Efficient linkage with the upstream and downstream of the external industrial chain and efficient operation of the company’s R&D, manufacturing, market, and order systems achieve continuous optimization of rates. The financial report shows that Haier Smart Home’s rate will be further optimized by 0.23 percentage points in 2023.
At present, digital transformation has become an important means for Haier Smart Home to enhance its endogenous power. Taking market operation capabilities as an example, Haier Smart Home has improved the efficiency of dealers in distribution management, purchase, sales and inventory management, and store operations through tools such as digital distribution systems and user operation auxiliary analysis systems. Digital retail sales have increased by 22% year-on-year.
The Three-winged Bird brand has been bearing fruit for three years, with store retail sales increasing by 84% year-on-year.
In addition to the achievements of home appliance brands, in the Internet of Things era, Haier Smart Home, which took the lead in changing the field of smart living, is accelerating the realization of its scenario brand Triwing Bird. After more than three years of continuous exploration, Sanyiniao has added nearly 1,500 new contact points, improving the sales efficiency of complete sets of products through localized scene solution customization and professional delivery service capabilities. In 2023, the retail sales of Sanyiniao stores will increase by 84% year-on-year, with complete sets accounting for more than 60%, and scene transaction volume exceeding 5.1 billion.
At the just past AWE, Sanyiniao brought a new experience of 20 scenes in 8 major spaces, providing users with more integrated, intelligent, and more efficient space utilization home appliances and home integrated services. Ten days later, Sanyiniao launched the country’s first super experience center in Jinan. This is also the industry’s first home appliance and home integrated store, allowing more users to enjoy the new customized experience of smart homes. The construction of the Three-winged Bird scene brand has enabled Haier Smart Home to transform from smart home appliances to smart homes, opening up a new space for growth. It has also realized the transformation from products to scenes, bringing the best life experience to users.
Pay attention to shareholder returns and gradually increase the dividend ratio to no less than 50%
Haier Smart Home has always attached great importance to the interests of shareholders. The gradual increase in the scale of dividends paid by listed companies sends a signal to the market that the company’s business operations are stable and its profitability is enhanced, which is of great significance for increasing the market’s confidence in the company’s stock holdings.
In 2023, Haier Smart Home plans to increase the dividend ratio from the original 36% to 45%, and has formulated a shareholder return plan for the next three years (2024-2026). The dividend ratio in 2025 and 2026 will not be less than 50%.
Regarding future development, Haier Smart Home said that advantageous industries such as refrigerators, washing machines, and water heaters will expand their leading advantages through product iteration, scenario solution innovation, and market changes. For potential industries such as air conditioners, kitchen appliances, and smart buildings, competitiveness will be improved through a series of measures such as building an industry-leading product research and development system, enhancing the integration capabilities of the industrial chain, and actively expanding professional channels. At the same time, a series of strategic measures such as adhering to global independent brand creation, high-end brand creation, and accelerating the implementation of smart homes have also laid a solid foundation for the long-term and stable development of Haier Smart Home.
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