Consumer Discretionary Author：Yue Liu Editor：Luke Sheehan Aug 30, 2020 04:30 AM (GMT+8)

The company still has outstanding performance, despite a downturn in the home appliance industry.

Image credit: EqualOcean

Haier Smart Home (600690:SH), a subsidiary of Haier Group, released the 2020 semi-annual report, which is the first performance report released after the company announced the privatization and integration plan of Haier Electric.

Haier Smart Home achieved revenue of CNY 95.73 billion, a year-on-year decrease of 4.29%; net profit was CNY 2.78 billion, a year-on-year decline of 45.02%.

In the context of the globalization of the epidemic, exports of the home appliance industry decreased by 1% year-on-year from January to May. However, Haier Smart Home's export volume still achieved a counter-trend growth of 8%, and the average customer price reached 14%.

In terms of products, the company's main products are air conditioners, refrigerators, kitchen appliances, water appliances, washing machines, equipment parts, and channel integrated services, accounting for 17.80%, 28%, 14.7%, 4%, 20.7% and 13.9% of total revenue, respectively. Refrigerators and washing machines are still the revenue engine of the firm.

The online market share of Haier refrigerators increased by 2.60% to 35%, 2.20 times the second place, and the offline market share was 38.50%, an increase of 2.3%, which was 2.98 times the second place. The online market share of washing machines increased by 4.90%, accounting for 39.30%, which was 1.26 times the second place, and the offline market share was 39.20%, an increase of 3.60%, which was 1.52 times the second place.

The efficiency of Haier Smart Home SKU increased from 40% to 97%. The timely rate of logistics distribution increased to 99.5%. The efficiency of the process system utilization increased to 83%, and the defective product rate decreased by 94%.

With the empowerment of Smart Home Experience Cloud, in the first half of 2020, Haier's smart home scenario solutions sold 627,000 sets, a year-on-year increase of 65.75%; IoT ecological revenue was CNY 3.77 billion, a year-on-year increase of 96%.