Relying on the advantages of multi-brand layout and the continued strong performance of the refrigeration industry, Haier Smart Home's revenue and profit both increased in 2023.

On the evening of March 27, Haier Smart Home released its 2023 fiscal year report ending December 31, 2023. Financial reports show that in 2023, Haier Smart Home's total revenue increased 7.33% year on year to 261,428 billion yuan, net profit to mother was 16.597 billion yuan, up 12.8% year on year, and net profit without return to mother increased 13.3% year on year to 15.824 billion yuan. Furthermore, gross margin reached 31.5%, up 0.2 percentage points from the same period last year.

Thanks to efficiency improvements in the application of digital management tools, marketing resource allocation, and logistics distribution, Haier Intelligent's management rates and sales rates were all optimized year on year in 2023, but due to overseas interest rate hikes, the company's financial rate deteriorated 0.3 percentage points to 0.2 percent year over year.

Haier Smart Home stated that it will distribute a cash dividend of RMB 8.04 per 10 shares to all shareholders, with a dividend amount of RMB 7.47 billion, and stated:

“Starting in 2024, we will continue to increase our dividend distribution ratio, and the cash dividend ratio will not be less than 50% in 2025 and 2026.”

Advantages The refrigeration industry is strong, and annual revenue exceeds 80 billion

Throughout 2023, thanks to a marked decline in domestic raw material prices, competition in the white electronics industry became rational, and the profitability of the home appliance industry improved.

The report shows that as Haier Smart Home's most advantageous industry, the refrigeration business achieved global revenue of 81.91 billion yuan in 2023, an increase of 5.2% over the previous year, consolidating and expanding its leading position in the global refrigeration industry.

According to Gfk's data, Haier Smart Home's online & offline domestic refrigeration market share also expanded significantly, with year-on-year increases of 1.3 and 1.1 percentage points, respectively, reaching 45.2% and 40.3% respectively, both exceeding 40%.

The second important business area is in the field of HVAC and hot water. Haier Smart's business is in the second tier in China.

Haier said that in terms of household air conditioners, it has made up for the shortcomings of missing core components in the past two years. Joint compressor ventures and computer board self-development projects have all improved the efficiency of the company's R&D and manufacturing integration and helped raise the level of profit. The vigorous construction of a dealer network will also provide strong support for increasing the market share of household central air conditioners and household air conditioners.

In 2023, the company's air energy solutions achieved revenue of 46.104 billion yuan, an increase of 13.1% over the previous year. Among them, Casadi Nebula Air Conditioner, the first integrated high-energy air machine in the industry, went on sale in 2023. It sold 110,000 units a year after launch, driving a high-end share of over 10,000 yuan to 37%. The fishery industry achieved global revenue of 15.336 billion yuan in 2023, an increase of 8.5% over the same period in 2022, and domestic revenue surpassed 12 billion yuan for the first time;

In 2023, the retail sales of Haier Smart Home's water heater industry reached 50.5 billion yuan, up 7.4% year on year. Among them, retail sales of electric water heaters increased 5.8% year on year, accounting for 46% of total sales. Haier's water heater business has achieved high quality and high profits. Both gas and electric water heaters have the largest share in the country; the share of water purifiers in the Chinese market continues to increase.

Relying on the advantages of all categories of home appliances, Haier Smart Home continues to be committed to smart home solutions.

In 2023, Tri-Wingbird will focus on capabilities such as a complete set of home appliance design tools and digital store construction to enhance scenario solution experience and sales capabilities. In 2023, retail sales at Tri-Wing Bird stores increased by 84% year-on-year, with complete sets accounting for more than 60%.

Among them, the nest building design tool developed by the company has more than 500 3D home appliance design modules and real apartment plans for over 90% of the country's residential areas to formulate complete professional home appliance design plans for users; Tri-Wingbird Touchpoint added nearly 1,500 new products, improving the sales efficiency of complete products through localized scenario customization and professional delivery service capabilities.

In-depth development of overseas markets European revenue surged 24%

Thanks to Haier Smart Home's adherence to the high-end brand creation strategy, continuous upgrading of product structure and diversification of product portfolio strategies, in 2023, the company achieved overseas revenue of 136.412 billion yuan, an increase of 7.6% over the same period last year, and a 1.5% year-on-year increase in market size.

By region, in the largest North American market, Haier Smart Home Appliance share grew, reaching 79.751 billion yuan in revenue for the full year of 2023, an increase of 4.1% over the previous year. The company said that while continuing to enhance the leadership of high-end brands and products, it is also continuing to lay out new industries and channels, and actively explore smart ecological transformation.

Thanks to improved product and supply chain competitiveness, Haier Smart Home's revenue in Europe surged 23.9% year-on-year to 28.544 billion yuan, and its retail sales share increased by 1 percentage point to 9.1%.

Despite weak market demand, Haier Smart Home has increased its share in the Australian and New Zealand markets through product innovation, model change, and dual brand operation. Furthermore, Haier Smart Home's revenue in the South Asian market and Southeast Asia market both achieved a year-on-year growth rate of more than 10%, and revenue in the Japanese market increased 2.6% year over year.

In 2024, as developed countries are expected to enter a cycle of interest rate cuts, the real estate market is expected to gradually recover, drive growth in demand for home appliances and create a favorable market environment for exports of household appliances.