Haier Smart Home: FY 2019 growth driven by Smart Home ecosystem brand transformation - 1Q20 results above industry trend

DGAP-News: Haier Smart Home Co.,Ltd. / Key word(s): Annual Results/Quarterly / Interim Statement Haier Smart Home: FY 2019 growth driven by Smart Home ecosystem brand transformation - 1Q20 results above industry trend 30.04.2020 / 10:17 The issuer is solely responsible for the content of this announcement. Haier Smart Home: FY 2019 growth driven by Smart Home ecosystem brand transformation - 1Q20 results above industry trend - Rising revenues of 9.1 % in financial year 2019 - Increase of the net result (attributable to owners of the parent company) by 9.7% to RMB 8.2 billion - Significant growth of market shares Qingdao / Shanghai / Frankfurt, 30 April 2020 - Haier Smart Home Co., Ltd. (D-Share ISIN CNE1000031C1, A-Share ISIN CNE000000CG9, "Haier Smart Home" or the "Company") on 29 April 2020 released its results for FY19 as well as for 1Q20. In 2019, the Company recorded revenue of RMB 200.8 billion, representing a year-on-year increase of 9.1%. Net profit attributable to owners of the parent company increased by 9.7% to RMB 8.2 billion. In the first quarter of 2020, revenue decreased by 11.1% to RMB 43.1 billion, while net profit amounted to RMB 1.1 billion, representing a year-on-year decrease of 50.2%. Nevertheless, Haier Smart Home outperformed the industry overall, reflecting its stronger resilience against external risks. The Company has always applied a stable and sustainable profit distribution policy. The board declared the proposal of a cash dividend of RMB 3.75 per 10 shares (tax inclusive) to all shareholders based on the total shares as at the date of profit distribution, with expected cash dividend not less than RMB 2.4 billion. The proportion of this distribution is not less than 30% of the net profit attributable to parent company of the Company in 2019. Haier Smart Home further extended its advantages in product leadership, multi-brand layout, efficient retail, global operations, and IoT transformation in 2019. Haier Smart Home will continue to increase its exploration in the field of IoT, including the implementation of 5G-based IoT scenarios. Continuous growth of the market share driven by Smart Home health scenario In the past financial year, the Company achieved growth of revenue and net profit driven by its Smart Home ecosystem brand transformation. Haier was again able to resist the general decline in the home appliance industry. In particular, in 4Q19, the growth rate of the domestic home appliance business was nearly double-digit. In the pandemic-struck first quarter of 2020, Haier Smart Home increased its overall domestic market share in the home appliance industry by 4.4 pct pt to 23.4%, driven in particular by the launch of Smart Home health scenarios including health food, health care and health air. With the COVID-19 pandemic, the demand for health household appliances grew significantly as health needs increased. In the overseas markets, both profits and market share in the first quarter of 2020, with an accelerated upward trend, underline the global layout strategy of the Company. Domestic market: Casarte leading in high-end segment In 2019, the revenue of the company's high-end brand Casarte amounted to RMB 7.4 billion, representing a year-on-year increase of 30%. In terms of refrigerators and washing machines, over RMB 10,000, Casarte generated a respective market share of 40% respectively 75%. The home air conditioner over RMB 15,000 market share was 40% in 2019. With an increase in market share of all smart home ecosystem brand product categories, Haier further consolidated its leading position in terms of total market share in 2019. In the Chinese high-end segment, Haier has by far the leading market share of 40% with its Casarte brand. Overall, Haier's market share in refrigerators and washing machines both online and offline grew twice as much as the nearest competitor. Overseas markets: Increase in profits and market shares as result of global layout In overseas markets, Haier Smart Home in 2019 achieved sales of RMB 94 billion, an increase of 22% year-on-year driven by further efficiency improvements. With market shares continuing to increase, growth rates in the major overseas markets outpaced the local appliance industry in each case. Profit before taxes increased by 30%. The continuing positive trend in overseas business is the result of the creation of own brands, the leading role in high-end products and upgrades of the distribution network. In addition, the localized three-in-one layout of "R&D, Manufacturing and Marketing" as well as localized and efficient operating systems contribute to pre-tax profit improvements, thus underlining the importance of a global layout. Smart Home solutions: Ecosystem brand revenue increased by 68% Haier Smart Home ecosystem brand revenues in 2019 with the 'Experience Cloud' increased by 68% year-on-year to 4.8 billion RMB. By continuously optimizing the user experience of a beautiful home Haier combined the requirements of leading companies for an open Internet of Things (IoT) ecosystem in the production of connected smart home devices with the demand of users for scenario solutions in different spaces. For example, the Internet of clothing in the ecosystem of Haier smart home includes 13 industry sectors such as apparel, home textiles, detergents and leather, and realizes the workflow from washing machine to laundry service into smart cleaning experience. To date, more than 5,300 domestic and foreign suppliers of ecosystem resources such as apparel, washing machine, toiletries and IoT technology use the Haier Internet of Clothing to provide users with a lifetime solution for clothing in terms of washing, protection, storage, matching, purchase and recycling. In addition, in 2019, COSMOPlat became the world's first industrial Internet platform to introduce the user experience of participating in the overall process, providing integrated hardware and software solutions for 15 major industries. During the COVID-19 pandemic, the online ecosystem platform became the first and industry's preferred service platform for the enterprise resumption and production increase. About Haier Smart Home Co., Ltd.: Haier is one of the world's leading manufacturers of household appliances with a focus on smart home solutions and customized mass production. Haier Smart Home Co., Ltd. develops, produces and distributes a wide range of household appliances. These include refrigerators, freezers, washing machines, air conditioners, water heaters, kitchen appliances as well as smaller household appliances and an extensive range of intelligent household appliances. The Company distributes its products through leading household brands such as Haier, Casarte, Leader, Candy, GE Appliances, AQUA and Fisher & Paykel. Haier Smart Home Co., Ltd. has developed three platforms - the cloud-based platform U+ Smart Life, which offers customers integrated smart home solutions, the smart manufacturing platform COSMOPlat, which enables customized mass production, and the online platform Haier Smart Home APP, which facilitates the integration of Haier's online, offline and micro-store businesses and supports user interaction to further optimize the user experience. IR contact: Yao Sun (Sophie) - Haier Smart Home Germany T: [phone] F: [phone] M: [phone] Email: [e-mail] 30.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language:	English
Company:	Haier Smart Home Co.,Ltd.
	Haier Industrial Park, Laoshan District
	266101 Qingdao
	China
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.haier.net
ISIN:	CNE1000031C1, CNE000000CG9 (A-share),
WKN:	A2JM2W
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1033659

End of News	DGAP News Service

1033659  30.04.2020