DGAP Post-admission Duties announcement: Haier Smart Home Co.,Ltd. / Third country release according to Article 50 Para. 1, No. 2 of the WpHG [the German Securities Trading Act]
Haier Smart Home Co.,Ltd.: Announcement on the First Quarterly Report of 2021

29.04.2021 / 13:27
Dissemination of a Post-admission Duties announcement according to Article 50 Para. 1, No. 2 WpHG transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Third country release pursuant to Section 50 para. 1 no. 2 German Securities Trading Act (WpHG)

Announcement on the First Quarterly Report of 2021

Qingdao / Shanghai / Frankfurt, 29 April 2021- Haier Smart Home Co., Ltd. (the "Company" or "Haier Smart Home", D-Share 690D.DE, A-Share 600690.SH, H-Share 06690.HK) published the First Quarterly Report 2021 in accordance with applicable trading rules of the Shanghai Stock Exchange and applicable PRC laws.

The First Quarterly Report 2021 is available at: http://www.sse.com.cn/disclosure/listedinfo/announcement/c/new/2021-04-30/600690_20210430_1.pdf

The English version will be available at www.dgap.de, www.xetra.de and will also be published on the Company's website at https://smart-home.haier.com/en/gpxx/ today.

Key financial data overview of the First Quarterly Report 2021:

Unit and Currency: RMB

  At the end of the reporting period At the end of last year Increase/decrease at the end of the reporting period compared with the end of last year (%)
Total assets 205,542,336,997.99 203,459,495,879.65 1.02
Net assets attributable to shareholders of listed companies 75,000,476,951.99 66,816,422,614.55 12.25
  At the beginning of the year to the end

of the reporting period
At the beginning of last year to the end of the reporting period of last

year
YoY change (%)
Net cash flows from operating activities 2,863,386,935.66 -5,787,626,102.33 149.47
  At the beginning of the year to the end of the reporting period At the beginning of last year to the end of the reporting period of last year YoY change (%)
Operating revenue 54,773,701,753.64 43,141,448,203.28 26.96
Net profits attributable to shareholders of listed companies 3,053,933,589.63 1,070,333,404.45 185.33
Net profits after deduction of non-recurring profit or loss attributable to shareholders of listed companies 2,823,027,182.06 943,123,999.14 199.33
Weighted average return on net assets (%) 4.38 2.22 Increased by 2.16
percentage points
Basic earnings per share (RMB per share) 0.333 0.163 104.29
Diluted earnings per share (RMB per share) 0.326 0.163 100.00
 

The revenue, net profit and net profit attributable to owners of the Parent Company in the first quarter of 2021 for the Company increased by 27.0%, 130.4% and 185.3%, as compared with the first quarter of 2020; and increased by 12.9%, 14.7% and 42%, as compared with the first quarter of 2019. The increase in revenue from comparable periods is mainly attributed to smart package sales, Casarte's high-end brand strategy and the implementation of digital transformation as well as the persistence on the strategy of creating high-end brands and localized operations overseas. Meanwhile, as the first quarter of 2020 was deeply impacted by COVID-19, both the revenue and profit growth of the first quarter of 2021 comparing the first quarter of 2020 represented higher rates than the growth rate of comparing with the first quarter of 2019.

As the logistics business and the COSMO business of the Company were deconsolidated respectively on July 2019 and Sept.2020, if the revenue contribution of COSMO business and logistics not being included in the first quarter of 2020 and 2019 respectively, the revenue in the first quarter of 2021 increased by 38.2% as compared with the first quarter of 2020 last year and increased by 24.4% as compared with the same period of 2019.

I. Revenue

The revenue in the first quarter of the Company was RMB54.8 billion, representing an increase of 27.0% as compared with the same period of 2020, of which, revenue from China increased by 29.5% year-on-year, after excluding the impacts of the COSMO business, the revenue from China increased by 55.7% year-on-year. Revenue from overseas increased by 24.6% year-on-year.

II. Gross Profit

Our gross margin was 28.5% for the first quarter of 2021, representing an increase of 1 percentage point as compared with the first quarter of 2020.

III. Operating expenses

1. The selling expense ratio of the Company was 14.3%, representing an optimization of 0.7 percentage point year on year.

2. The administration expense ratio of the Company was 3.9%, representing an optimization of 0.6 percentage point year on year, which was attributable to improved operations.

3. The research and development expense ratio was 3.8%, representing an increase of 0.1 percentage point year on year. It was mainly due to the step-up efforts in building core smart capabilities, such as iteration and upgrade of Smart Home APP, Smart Home cloud-based brain & relevant cutting-edge technologies, the incubation of new categories and eco business as well as the iteration of Three-Winged Bird scenario experience.

4. The financial expense ratio of the Company was 0.3%, representing an optimization of 0.5 percentage point year on year. The decrease in interest expenses was mainly due to the conversion of convertible bonds into shares and the repayment of borrowings.

IV. Working Capital

1. Trade receivables turnover days

The trade receivables turnover days of the Group was 30 days as at the end of the first quarter of 2021, representing an increase of 3 days as compared to the corresponding period, which was mainly attributable to the decrease in the factoring arrangement of GE Appliances and its increase in revenue.

2. Inventory turnover days

The inventory turnover days of the Company was 72 days in the first quarter of 2021, representing a decrease of 11 days as compared to the corresponding period, which was mainly attributable to the economic recovery after the pandemic and the acceleration in inventory turnover.

3. Trade payable turnover days

As at the end of the first quarter of 2021, trade payables turnover days were 88 days, representing a decrease of 3 days as compared to the first quarter of 2020, which was mainly attributable to the settlement of existing trade payables by the Company during the period.

V. Cash Flow Analysis

1. Net cash flow from operating activities for the period amounted to RMB2.86 billion, representing an increase of RMB8.65 billion as compared to the corresponding period. It was mainly due to the low level of cash flow from operating activities for the corresponding period caused by Covid-19 outbreak; and it was an increase of RMB1.48 billion as compared with the first quarter of 2019, representing an increase of 107.2%, which was mainly due to the increase of revenue and continued optimization of operational efficiency;

2. Net cash flow from investing activities for the period amounted to RMB620 million, representing a decrease of 49.3% as compared to the corresponding period, which was mainly due to the increase in the redemption of wealth management products and the occurrence of outflow from equity investment for the same period last year;

3. Net cash outflow from financing activities for the period amounted to RMB4.35 billion, while net cash inflows in financing activities for the corresponding period amounted to RMB7.58 billion, as borrowings increased by RMB8.76 billion to address the impacts of the epidemic during the corresponding period of last year, while borrowings in the reporting period decreased by RMB5.1 billion as operation and profitability both recovered; in addition, repayment of super-short-term financing and domestic borrowings resulted in an increase of RMB6.83 billion in outflow as compared to the corresponding period of last year.

VI. Capital Expenditure

The Company assesses its capital expenditure and investments in each business segment in China and overseas from time to time. The capital expenditure in the first quarter of 2021 was RMB1,700 million, of which RMB740 million and RMB960 million were used in China and overseas respectively in plant and equipment construction, property rental, and digital infrastructure.

VII. Gearing Ratio

As of the end of the first quarter of 2021, the Company's gearing ratio (defined as total liabilities divided by total assets) was 62.9%, representing a decrease of 3.7% as compared to the end of 2020, which was mainly due to the conversion of RMB5.1 billion convertible bonds and the repayment of RMB5.5 billion super-short-term financing.

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 launched Smart Home Experiential Cloud, which connects homes, users, enterprises and ecosystem partners, and 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: +49 6172 9454 143
F: +49 6172 9454 42143
M: +49 160 9469 3601
Email: y.sun@haier.de



29.04.2021 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
Internet: www.haier.net

 
End of News DGAP News Service

1190657  29.04.2021 

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