Company Code：600690 Short Name：Haier Smart Home
Haier Smart Home Co., Ltd. 2025 Annual ReportHaier Smart Home Co., Ltd. Annual Report 2025
The Board of Directors, directors and senior management of Haier Smart Home Co., Ltd. (the "Company") hereby assure that the content set out in the annual report is true, accurate and complete, and free from any false record, misleading representation or material omission, and are individually and collectively responsible for the content set out therein.
All Directors of the Company have attended the board meetings.
Hexin Certified Public Accountants Limited LLP has issued a standard and unqualified audit report for the Company.
Li Huagang (legal representative of the Company), Sun Jiacheng (chief financial officer of the Company) and Ying Ke (the person in charge of accounting department) hereby certify that the financial report set out in the annual report is true, accurate and complete.
Proposal of profit distribution or proposal of capitalizing capital reserves for the reporting period resoluted and adopted by the Board
Proposal of profit distribution for the reporting period are examined and reviewed by the Board: to declare a cash dividend of RMB8.867 per 10 shares (tax inclusive) to all shareholders based on the total number of shares held on record date and after deducting the repurchased shares from the repurchase account upon the execution of distribution proposal, with proposed distribution amounting to RMB8,248,280,749.27 (tax inclusive). Together with the 2025 interim dividend, The proportion of cash distribution is 55.0% of the net profit attributable to shareholder of parent company of the Company for the year. If there is any change in the total share capital of the Company during the period from the date of this report to the record date of the equity distribution, the total distribution amount will be remained unchanged with corresponding adjustment to the proportion of distribution per share.
As of the end of the reporting period, the parent company had accumulated losses that had not been offset, and the impact on matters such as the Company's dividend distribution.
Applicable √ Not Applicable
Disclaimer in respect of forward-looking statements
√ Applicable □ Not Applicable
Forward-looking statements such as future plans, development strategies as set out in this report do not constitute the Company's substantial commitment to investors. Investors are advised to pay attention to investment risks.
Is there any fund occupation by controlling shareholders and other related parties for non-operational purposes?
No
Haier Smart Home Co., Ltd. Annual Report 2025 1
Important NoticeIs there any provision of external guarantee in violation of the prescribed decision-making procedures?
No
Are there more than half of the Directors who are unable to guarantee the truthfulness, accuracy and completeness of the annual report disclosed by the Company?
No
Important Risk Warnings
For the possible risks which the Company may encounter, please refer to the relevant information set out in the section of 'MANAGEMENT DISCUSSION AND ANALYSIS' in this report.
Others
Applicable √ Not Applicable
Chairman of the Board: LI Huagang Haier Smart Home Co., Ltd
26 March 2026
2 Haier Smart Home Co., Ltd. Annual Report 2025
ContentsCONSUMER FIRST. EMBRACING CHANGE. FORGING A SUSTAINABLE FUTURE. 4
SECTION I | DEFINITIONS | 9 |
SECTION II | GENERAL INFORMATION OF THE COMPANY AND KEY FINANCIAL INDICATORS | 11 |
SECTION III | MANAGEMENT DISCUSSION AND ANALYSIS | 19 |
SECTION IV | CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY | 75 |
SECTION V | SIGNIFICANT EVENTS | 120 |
SECTION VI | CHANGES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS | 138 |
SECTION VII | RELEVANT INFORMATION OF BONDS | 151 |
SECTION VIII | FINANCIAL REPORT | 155 |
SECTION IX | RESPONSIBILITY STATEMENT | 348 |
DOCUMENTS AVAILABLE FOR INSPECTION | (I) Financial statements with signatures and seals of the legal representative, chief accountant and person in charge of accounting department |
(II) Original audit report with seals of accounting firm, signatures and seals of registered accountants | |
(III) Originals of all documents and announcements of the Company which have been publicly disclosed on the newspaper designated by China Securities Regulatory Commission during the reporting period |
Haier Smart Home Co., Ltd. Annual Report 2025 3
CONSUMER FIRST. EMBRACING CHANGE. FORGING A SUSTAINABLE FUTURE.- LETTER TO SHAREHOLDERS
Dear Shareholders,
As I reflect on 2025, it stands out as one of the most challenging business environments in our company's history - and one in which Haier Smart Home proved its resilience. Shifting trade policies and rising protectionism disrupted supply chains and made overseas markets harder to navigate, while regional conflicts added further uncertainty. On the demand side, high interest rates and cost pressures weighed on U.S. consumption, European recovery remained sluggish, and in China, a soft property market and fading appliance subsidies put downward pressure on demand and pricing.
We delivered solid results with meaningful progress in 2025, driven by the contributions of 130,000 employees across our global operations. In North America, a challenging trade environment pressured operating performance. Across our other markets, however, we gained share, strengthened our competitive position - even after absorbing significant disruption costs.
Record Revenue and Earnings in 2025In 2025, Haier Smart Home's global revenue surpassed RMB300 billion for the first time, reaching RMB302.35 billion, an increase of 5.71% year-on-year. Net profit attributable to shareholders of the parent company reached RMB19.55 billion, up 4.39% year-on-year. Under PRC GAAP, net profit attributable to shareholders - excluding non-recurring items - totaled RMB18.60 billion, a 4.49% year-on-year increase.
Net cash generated from operating activities in 2025 amounted to RMB26.00 billion, equivalent to 1.33 times net profit.
In China, our leadership in core categories held firm: we held offline market shares of 47.7% (GfK) in refrigerators, 47.4% (GfK) in washing machines, and 32.5% in water heaters. Air conditioning performed strongly, with online market share rising 0.6 percentage points and offline share rising 1.8 percentage points, and domestic revenue growing at a double-digit rate.
We continued to transform our distribution and supply chain model - connecting dealers directly to retail outlets, delivering service directly to consumers, and rolling out a centralized distribution model that now accounts for 57% of total shipments. These initiatives shortened the path from factory to consumer, with domestic inventory turnover improving year-on-year.
Turning to our international business - which I see as the long-term growth engine of this company - our goal is to bring Haier into every home, everywhere. We invest in global platforms for R&D and market operations to strengthen local competitiveness and deliver exceptional products and reliable service at every touchpoint.
In the United States, we maintained the #1 industry position for the fourth consecutive year. Against a declining market, our premium brand delivered 7% revenue growth. The Air & Water Solutions sector delivered double-digit revenue growth, emerging as a meaningful contributor.
In Europe, we streamlined regional management layers to bring headquarters and local teams into direct alignment, operating side by side with shared objectives and enabling faster market response. In 2025, white goods revenue grew at a double-digit rate, average selling prices improved by more than 10%, and profitability rose substantially.
4 Haier Smart Home Co., Ltd. Annual Report 2025
CONSUMER FIRST. EMBRACING CHANGE. FORGING A SUSTAINABLE FUTURE.In South Asia, unfavorable weather conditions held back air conditioning demand. Nonetheless, we grew revenue by 15%-among the fastest-growing brands in the market - by strengthening our brand presence, introducing premium products such as large-drum washing machines, and accelerating penetration into chain retail channels. In Pakistan, revenue grew over 30%, with our market share in refrigerators, washing machines, and air conditioners exceeding 40%.
In Southeast Asia, we launched bestselling products from our China portfolio - including the L+ washing machine, the Mailang refrigerator, and the AI Voice air conditioner - and expanded our retail footprint through integrated online-offline channels. We achieved the #1 white goods sales position across key markets such as Vietnam and Thailand.
We enter new categories and markets through disciplined acquisitions - but closing a deal is only the beginning. Our cross-border M&A experience and global operating platform enable acquired businesses to ramp quickly. Carrier Commercial Refrigeration (CCR) in its first full operating year, had to transition off shared services (TSA), build standalone capabilities, and overhaul operations simultaneously. Through our RenDanHeYi approach, CCR achieved double-digit revenue growth, with 16% growth in Asia-Pacific, well ahead of the industry. Kwikot, our South African water heater business, also completed its first full year, delivering 10% profit growth versus pre-acquisition levels and a pre-tax margin of 12%, while expanding into solar water heaters, water purifiers, and air conditioners. These results reinforce my conviction that disciplined M&A will remain a key lever for growth.
Co-Creating with Consumers, Redefining ValueLooking ahead, the global trade landscape has fundamentally changed. Evolving trade policies are making it harder to optimize supply chains for efficiency, and geopolitical uncertainty is prompting companies to prioritize supply chain resilience. These dynamics will weigh on returns on capital and drive consolidation, ultimately leading to a new market balance. I believe we are still in the middle-to-late stages of that adjustment. The number of global appliance players is shrinking, with some retreating to their home markets. At the same time, the industry is being reshaped by new technologies, and consumers favor innovation and technology-driven products. Over the long term, Haier Smart Home's global product innovation and operating platform is a durable competitive advantage, helping us earn the trust of more consumers worldwide.
The value our platform creates ultimately comes from one source: the consumer. We must turn them into co-creators, so that hit products that deliver exceptional value become the rule rather than the exception - earning lasting consumer preference - the best antidote to price wars and commoditization. Put simply: move up the value chain by exceeding consumer expectations, and build hit products while driving efficiency at every step.
A case in point is our Leader brand's Effortless three-drum washing machine, which became an industry standout in 2025. As the world's first three-drum washer, it sold over 10,000 units within 48 minutes of launch and surpassed RMB100 million in retail sales within 16 hours, going on to sell over 300,000 units for the full year - the #1 single model in the industry. Within six months, it expanded from a single SKU into a full product family spanning a full range of laundry care needs. Behind this success was deep consumer participation: from design and structure to features - even the "Effortless Wash" name itself came from consumers. They were not observers but co-creators, and after launch, they became our most effective advocates.
Haier Smart Home Co., Ltd. Annual Report 2025 5
CONSUMER FIRST. EMBRACING CHANGE. FORGING A SUSTAINABLE FUTURE.Our Mailang refrigerator series followed the same playbook. As a warm-toned refrigerator, cumulative sales exceeded one million units, with the model holding the #1 position in the RMB8,000-and-above premium segment. The color palette, product name, and features were all shaped through co-creation with consumers. When consumers said they wanted a refrigerator that "just feels right," we responded with warm tones. When they wanted a more inviting atmosphere for the beverage zone, we developed an illuminated shelf, with three ambient modes - Stage, Surprise, and Twilight.
In 2026, we will build a scalable, repeatable system for developing hit products - one that works across product lines and markets. It all starts with one thing: staying focused on what matters most - understanding what consumers need, developing products with single-minded focus, and refining every detail. In resource allocation, we concentrate our efforts on the highest-impact opportunities and remain disciplined about what we choose not to do. Organizationally, every function will align around a shared objective: from consumer insight to product definition, from R&D breakthroughs to market launch, every step serves one goal: the next hit product. Through a sustained cadence of hit products, we aim to shape how consumers perceive our brand.
Reshaping Our Organization, Embracing the AI OpportunityDespite the headwinds, Haier's years of proven global operating experience and our shared platforms in R&D, supply chain, logistics, and service give me confidence that we can capture substantial growth ahead. I see three clear drivers: steady, high-quality growth in smart home appliances; rapid expansion and margin improvement in HVAC; and AI-driven opportunities to deepen consumer engagement and transform how we organize and operate.
Smart Home Appliances: Room to Grow Globally. Our smart home appliance business spans refrigerators, washing machines, kitchen appliances, and other white goods. Globally, we hold strong positions in the Americas, Australasia, and Europe, but our international market share still has room to grow compared with China, and profitability varies significantly across regions. The 2025 restructuring of our European operations has already delivered a significant improvement in operating efficiency. Australasia also presents substantial margin expansion potential. In South Asia, market conditions are exceptionally favorable: India has the potential to become our third-largest market after China and the U.S. Southeast Asia carries strong momentum. Product offerings there historically lagged our China portfolio by several generations, but the success of our Effortless three-drum washer shows that products from our China-led global R&D platform resonate strongly in emerging markets. Turning to the U.S., as supply chain adjustments progress, we expect the operating environment to improve gradually.
HVAC: From One-Quarter Toward One-Half of Company Revenue. In 2025, we consolidated our residential air conditioning, smart building, and water solutions businesses into a unified HVAC division. This was a strategic integration, not a simple reorganization. Externally, customers now deal with a single team and can access comprehensive solutions spanning air and water management for the entire home, rather than standalone products - deepening customer relationships and increasing revenue per customer. Internally, R&D, supply chain, and channel resources now serve unified objectives, and the overlapping investments that naturally arose from three separate businesses are being steadily consolidated.
6 Haier Smart Home Co., Ltd. Annual Report 2025
CONSUMER FIRST. EMBRACING CHANGE. FORGING A SUSTAINABLE FUTURE.Our HVAC business currently accounts for roughly one-quarter of Company revenue, a share we expect to grow to one-third or even close to half over time. This is a global opportunity: we see significant growth potential in Europe, South and Southeast Asia, and the Americas. In commercial applications, integrated cooling and heating solutions enable us to deliver greater value per customer. We will invest significantly in channels, technology, and the capabilities to deliver integrated solutions.
Artificial Intelligence: From Tools to Proactive Helpers. Haier Smart Home is committed to being an early mover in applied AI - not just to improve processes, but to rethink how our organization works from the ground up. On the consumer-facing side, traditional smart home connectivity models may be disrupted as AI-powered intelligent agents, combined with Haier's vast installed consumer base, create the potential for AI to serve as a home assistant. Imagine appliances that are no longer passive instruments but proactive partners - anticipating needs and creating an entirely new consumer experience.
In March 2025, we launched the Casarte Connoisseur suite featuring our proprietary "AI Vision" technology, spanning range hoods, ovens, refrigerators, and washing machines. The AI Vision is a multimodal cooking agent we developed in-house: it recognizes ingredients, maps the oven's interior, and plans the optimal cooking curve - effectively turning the oven into a culinary expert that can observe, think, and master precision cooking. I look forward to more AI-powered hardware innovations that elevate the smart home experience.
Over the past year, AI has also made our internal operations more efficient. Our R&D team built a digital engineering platform powered by AI - effectively giving every engineer a 24/7 specialist. For our
1.5HP wall-mounted air conditioner development, the testing and adjustment cycle was cut from 15 days to 7 days - a 54% improvement. Looking ahead, AI agent support can transform large organizations into lean, mission-driven teams - improving not only efficiency but also decision quality across customer service, marketing, and field operations.
Building for the Long TermSustainable growth requires more than strong financial results - it requires earning the trust of our communities, our planet, and our people. Haier has been named to Fortune's World's Most Admired Companies list for seven consecutive years - the only company in the home appliance sector from the Eurasia region to receive this recognition. Our MSCI ESG rating has been maintained at AA for two years running, the highest among domestic peers.
Carbon Neutrality and Green Supply Chain. In 2025, we formally established a Climate Change Committee chaired by the Company's most senior leadership and published the Haier Smart Home Carbon Neutrality White Paper , detailing our roadmap to carbon neutrality, including key initiatives and technology pathways. Haier Smart Home has committed to achieving operational carbon neutrality no later than 2050. Emission reduction targets for two subsidiaries - Qingdao Haier Special Freezer Co., Ltd. and Candy SpA
- have been validated by the Science Based Targets initiative (SBTi). We have built an industry-leading
"6-Green" supply chain framework, embedding sustainability across the full product lifecycle - from design and procurement through manufacturing, logistics, recycling, and service. This framework is helping reduce product carbon footprints and drive green transformation across our supply chain.
Where People Build, Grow, and Lead. In the U.S., GE Appliances earned its fourth consecutive Best Place to Work recognition. In Europe, we received the UK Best Employer award for the third year in a row.
Haier Smart Home Co., Ltd. Annual Report 2025 7
CONSUMER FIRST. EMBRACING CHANGE. FORGING A SUSTAINABLE FUTURE.Our RenDanHeYi management philosophy exists for one purpose: to activate people. First, we activate the entrepreneurial spirit in our people - giving every young professional the courage to take on ambitious projects and every innovator a stage to test bold ideas. Second, we challenge our managers to reinvent themselves - because yesterday's experience can become today's burden, and past success can become tomorrow's trap. Only by starting from zero can we keep pace with change. Third, we push decision-making authority to the front lines - across every market and every function - because the people closest to the consumer know best what consumers need.
Shareholder Returns: Growing Together, Sharing ValueAlongside new highs in revenue and earnings in 2025, we continued to increase returns to shareholders. We raised the cash dividend payout ratio to 55%, an increase of 7 percentage points over 2024. Every increase in our payout reflects the value we place on long-term shareholder trust.
Looking ahead, we are committed to creating sustainable long-term value for shareholders. We have announced a three-year shareholder return plan for 2026-2028: a cash dividend payout ratio of no less than 58% for 2026, and no less than 60% for 2027 and 2028. This plan reflects our confidence in the road ahead and our deep respect for the commitment our shareholders have made.
I want to thank our 130,000 colleagues for what they achieved this year. And to every shareholder: thank you for your trust and your partnership. Though more than four decades have passed since Haier was founded in 1984, the entrepreneurial drive that defined our earliest days is very much alive. From our roots in Qingdao, together, we will keep building - taking Haier further into every corner of the world.
Challenges lie ahead, but our conviction has never been stronger.
Sincerely,
Li Huagang
Chairman of the Board of Directors
Haier Smart Home Co., Ltd.
Forward-Looking Statements
This letter contains forward-looking statements that reflect the Company's current expectations and assumptions regarding future events, including statements about anticipated revenue growth, margin expansion, market share trends, dividend payout ratios, strategic initiatives, and the expected impact of tariffs and supply chain developments. These statements are subject to risks and uncertainties that could cause actual results to differ materially, including changes in global economic conditions, trade policies, foreign exchange rates, competitive dynamics, regulatory developments, and consumer demand. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise. Investors are cautioned not to place undue reliance on these statements.
8 Haier Smart Home Co., Ltd. Annual Report 2025
Section I Definitions- DEFINITIONS
Unless otherwise stated in the context, the following terms should have the following meanings in this report:
Definition of frequently used termsCSRC China Securities Regulatory Commission
SSE Shanghai Stock Exchange
The Company, Haier Smart Home
Haier Smart Home Co., Ltd., its original name is "Qingdao Haier Co., Ltd.", and the original short name is "Qingdao Haier"
Four Major Securities Newspapers
China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily
Haier Electrics, 1169 Haier Electronics Group Co., Ltd. (a company originally listed in Hong
Kong, stock code: 01169.HK), a subsidiary as accounted for in the consolidated statement of the Company. Haier Electrics has been privatized by way of H shares issuance on 23 December 2020 and became a wholly owned subsidiary of the Company since then.
GE Appliances Household appliances assets and business of General Electric Group,
have currently been owned by the Company.
FPA Fisher & Paykel Appliances Holdings Limited (Chinese name: 斐雪派克), was established in 1934 and is known as the national appliance brand of New Zealand, the global top-level kitchen appliance brand and the famous luxury brand of the world. It has products including ventilator, gas stove, oven, dishwasher, microwave oven, built-in freezer, washing machine, clothes dryer and etc. Its business covers 50 countries/ regions across the world. FPA is a wholly-owned subsidiary of the Company.
Candy Candy Group (Candy S.p.A), is an international professional appliances manufacturer from Italy. Since its establishment in 1945, it has been committed to enabling the global users to enjoy a higher quality of life through innovative technologies and quality services. Candy Group has been prestigious in the global market with users all over the world via its various self-owned professional household appliance brands. In January 2019, Candy became a wholly-owned subsidiary of the Company.
GfK CMM GfK CMM is a wholly-owned subsidiary of Germany's GfK Group in China, specializing in market research within the durable consumer goods sector. It is an authoritative retail monitoring and market research institute in Chinese household appliance and consumer electronics industries.
Haier Smart Home Co., Ltd. Annual Report 2025 9
Section I DefinitionsEuromonitor Euromonitor, established in 1972, is the leading strategic market
information supplier and has over 40-years of experience in respect of publishing market report, commercial reference data and on-line database. They create data and analysis on thousands of products and services around the world.
Gfk Gfk Group, the world's leading market research company. After a long period of development and accumulation, Gfk Group's global market research business covers consumer durables research, consumer research, media research, healthcare market research and special studies.
All View Cloud All View Cloud (AVC) is a big data integrated solution provider to the
smart home field, providing enterprises with big data information services, regular data information services and special data services.
IEC The International Electrotechnical Commission, founded in 1906, is the world's first organization for the preparation and publication of international electrotechnical standardization and is responsible for international standardization for electrical engineering and electronic engineering. The goals of the commission include: to effectively meet the needs of the global market; to ensure that the standards and conformity assessment programs are applied globally in a prioritized manner and to the greatest extent; to assess and improve the quality of products and services involved in its standards; to create conditions for the common use of complicated systems; to improve the effectiveness of the industrialization process; to improve human health and safety, and to protect the environment.
IEEE The Institute of Electrical and Electronics Engineers, an international association of electronic technology and information science engineers, is currently the largest non-profit professional technology society in the world. It is committed to the development and research of electrical, electronic, computer engineering and science-related fields, and has now developed into an international academic organization with great influence in terms of the fields of space, computer, telecommunications, biomedicine, power and consumer electronics.
Model of RenDanHeYi (人單合一)
The concept of "Achieving win-win via RenDanHeYi" is the guarantee of Haier's sustainable operation and the driving force of the Company featuring a self-motivated and empowering corporate culture. "Ren" is an employee who has the spirit of entrepreneurship and innovation; "Dan" is to create value for users. The "RenDanHeYi" management model encourages employees to create value for users with an entrepreneurial mindset, and to achieve self-value in line with the those of the Company and its shareholders.
10 Haier Smart Home Co., Ltd. Annual Report 2025
Section II General Information of the Company and Key Financial Indicators-
INFORMATION OF THE COMPANY
Chinese name 海尔智家股份有限公司
Chinese short name 海尔智家
English name Haier Smart Home Co., Ltd.
English short name Haier Smart Home
Legal representative Li Huagang
-
CONTACT PERSON AND CONTACT INFORMATION
Secretary to the Board
Representative of securities affairs
Company Secretary
(D/H shares) Others
Name Liu Xiaomei Liu Tao Ng Chi Yin, Trevor Global Customer
Service Hotline
Address Department of
Securities of Haier Smart Home Co., Ltd., Haier Science and Technology Innovation Ecological Park, No.1 Haier Road, Qingdao City
Department of Securities of Haier Smart Home Co., Ltd., Haier Science and Technology Innovation Ecological Park, No.1 Haier Road, Qingdao City
Room 1908, 19th / Floor, Harbour Centre, 25 Harbour Road, Wan Chai, Hong Kong
Tel 0532-88931670 0532-88931670 +852 2169 0000 4006 999 999
Fax 0532-88931689 0532-88931689 +852 2169 0880 /
Email finance@haier.com finance@haier.com ir@haier.hk /
Haier Smart Home Co., Ltd. Annual Report 2025 11
Section II General Information of the Company and Key Financial Indicators -
SUMMARY OF THE GENERAL INFORMATION
Registered Address Haier Industrial Park, Laoshan District, Qingdao City (now known as
Haier Science and Technology Innovation Ecological Park, Laoshan District, Qingdao City)
Historical Changes to the Registered Address
Prior to the Company's listing in 1993, the registered address of the Company was No.165 Xiaobaigan Road, Sifang District, Qingdao City, Shandong Province, and has changed to the current address since 1994, during which the address name was adjusted in line with the change of name of the industrial park but the actual site remains unchanged
Business address Haier Science and Technology Innovation Ecological Park, Laoshan
District, Qingdao City
Postal code of the business address
266101
Website https://smart-home.haier.com/cn/
Email 9999@haier.com
-
PLACE FOR INFORMATION DISCLOSURE AND DEPOSIT
Newspapers and websites for annual report disclosure
Stock Exchange Website for annual report disclosure as designated by the CSRC
Other websites for annual report disclosure
Deposit place of annual report
Shanghai Securities News, Securities Times, China Securities Journal,
Securities Daily
https://www.sse.com.cn
https://smart-home.haier.com/cn/, www.xetra.com, www.dgap.de, https://www.hkexnews.hk
Department of Securities of Haier Smart Home Co., Ltd., Haier Science and Technology Innovation Ecological Park, No.1 Haier Road, Qingdao City
-
SUMMARIZED INFORMATION OF SHARES OF THE COMPANY
Type of Shares
Summarized information of shares of the Company
Stock Exchange of
Shares Listed Stock Short Name Stock Code
Stock Short Name Before Variation
A-shares Shanghai Stock Exchange
Haier Smart Home 600690 Qingdao Haier
D-shares Frankfurt Stock Exchange
Haier Smart Home 690D Qingdao Haier
H-shares Hong Kong Stock Exchange
Haier Smart Home 6690 /
12 Haier Smart Home Co., Ltd. Annual Report 2025
Section II General Information of the Company and Key Financial Indicators -
OTHER RELATED INFORMATION
Accounting firm engaged by the Company (domestic)
Name Hexin Certified Public Accountants LLP
Business Address 24th Floor, Century Building, No.39 Donghai Road West, Qingdao City
Name of signing accountant
Zhang Jun, Li Xiang Zhi
Accounting firm engaged by the Company (overseas)
Name HLB Hodgson Impey Cheng Limited
Business address 31st Floor, Gloucester Tower, The Landmark, 11 Pedder Street, Central, Hong Kong Special Administrative Region
Name of signing accountant
Yau Wai Yip
Note:
Accounting firm engaged by the Company (domestic and overseas): Pursuant to the motion for the appointment of an auditor approved at the Company's 2024 Annual Shareholders' Meeting, the Company engaged Hexin Certified Public Accountants LLP and HLB Hodgson Impey Cheng Limited to issue the China Accounting Standards and International Accounting Standards auditing report respectively for the Company's 2025 annual report.
-
KEY ACCOUNTING DATA AND FINANCIAL INDICATORS IN THE RECENT THREE YEARS
-
Key accounting data
Unit and Currency: RMB
Key accounting data 2025 2024 Yoy change (%) 2023
After adjustment
Before adjustment
Operating revenue 302,346,783,918.30
286,015,294,936.52
285,981,225,203.93
5.71
274,204,520,847.97
Total profit 23,478,743,800.22
22,722,718,578.69
22,732,792,428.45
3.33
20,211,643,792.71
Net profit attributable to
shareholders of the listed
company 19,552,798,222.85
18,731,046,273.17
18,741,120,122.93
4.39
16,596,615,045.87
Net profit after deduction of non- recurring profit or loss
attributable to shareholders of
the listed company 18,603,631,637.54 17,804,732,809.63 17,804,732,809.63 4.49 15,824,164,161.43
Net cash flows from operating
activities 26,002,941,969.92 26,318,091,311.95 26,543,081,911.96 -1.20 26,535,780,568.36
Haier Smart Home Co., Ltd. Annual Report 2025 13
Section II General Information of the Company and Key Financial IndicatorsAt the end of 2025
At the end of 2024
After adjustment Before adjustment
Yoy change (%)
At the end of 2023
Net assets attributable to shareholders of the listed
company 118,698,401,416.58
111,778,874,767.22 111,366,118,999.17
6.19
101,265,984,771.17
Total assets 295,795,068,591.57
290,736,357,978.75 290,113,822,824.61
1.74
261,067,684,897.49
(II) Key financial indicators
Key financial indicators 2025
2024
Yoy change (%)
2023
After adjustment Before adjustment
Basic earnings per share
(RMB/share) 2.12
2.02 2.02
4.95
1.79
Diluted earnings per share (RMB/share)
2.10
2.02
2.02
3.96
1.78
Basic earnings per share after
deducting non-recurring profit
or loss (RMB/share)
2.02
1.93
1.93
4.66
1.71
Decreased
Weighted average return on net
by 0.63
assets (%)
16.98
17.61
17.70
percentage points
17.24
Weighted average return on net
Decreased
assets after deducting
by 0.65
non-recurring profit or loss (%)
16.16
16.81
16.81
percentage points
16.06
Explanation of the key accounting data and financial indicators of the Company as at the end of the reporting period for the previous three years
√ Applicable □ Not Applicable
Explanation of the reasons for the retrospective adjustment or restatement: In December 2024, the Company realised control over Youjin (Shanghai) Corporate Management Co., Ltd. by way of entrustment of voting rights. In March 2025, the Company completed the acquisition of equity interests in COSMOPlat Mould (Qingdao) Co., Ltd. The transaction was accounted for as a business combination under common control in accordance with relevant accounting standards and accordingly, the comparative figures for the corresponding period were restated.
14 Haier Smart Home Co., Ltd. Annual Report 2025
Section II General Information of the Company and Key Financial Indicators
-
Key accounting data
-
DIFFERENCES IN ACCOUNTING DATA UNDER DOMESTIC AND OVERSEAS ACCOUNTING STANDARDS
-
Differences in net profit and net asset attributable to shareholders of listed company in financial report disclosed in accordance with International Accounting Standards and China Accounting Standards
Applicable √ Not Applicable
There is no difference between the net profit and net assets attributable to shareholders of the listed company presented in the consolidated financial statements as disclosed in accordance with International Accounting Standards and Chinese Accounting Standards by the Company.
-
Differences in net profit and net asset attributable to shareholders of the listed company in financial statements disclosed in accordance with overseas accounting standards and China Accounting Standards
Applicable √ Not Applicable
Apart from the financial statements prepared in accordance with International Accounting Standards, the Company has not prepared financial statements in accordance with other overseas accounting standards.
-
Explanation on the difference between the domestic and overseas accounting standards:
Applicable √ Not Applicable
-
Differences in net profit and net asset attributable to shareholders of listed company in financial report disclosed in accordance with International Accounting Standards and China Accounting Standards
-
KEY FINANCIAL DATA OF 2025 BY QUARTER
Unit and Currency: RMB
Q1
(January-March)
Q2
(April-June)
Q3
(July-September)
Q4
(October-December)
Operating revenue
79,118,173,583.72
77,375,860,865.13
77,559,583,508.49
68,293,165,960.96
Net profit attributable to shareholders of
the listed Company
5,486,615,176.18
6,546,380,644.09
5,339,701,483.85
2,180,100,918.73
Net profit after deduction of non-
recurring profit or loss attributable to
shareholders of the listed Company
5,364,091,335.39
6,338,317,221.31
5,189,920,054.97
1,711,303,025.87
Net cash flows from operating activities
2,284,614,694.47
8,854,431,086.87
6,352,080,911.47
8,511,815,277.11
Explanation on the difference between quarterly data and disclosed regular reporting data
□Applicable √ Not Applicable
Haier Smart Home Co., Ltd. Annual Report 2025 15
Section II General Information of the Company and Key Financial Indicators -
NON-RECURRING PROFIT AND LOSS ITEMS AND AMOUNT
√ Applicable □ Not Applicable
Unit and Currency: RMB
Non-recurring profit and loss items
Amount in 2025
Amount in 2024
Amount in 2023
Profit or loss from disposal of non-current assets, including the write-off of provision for asset impairment
-203,144,693.48
-77,035,862.98
-97,873,276.66
Government subsidies included in current profit or loss,
except for government subsidies that are closely related to
the Company's normal business operations, conformed to
requirements of state policies and granted according to
specific criteria, and have a sustained impact on the
Company's profit or loss
1,315,433,873.66
1,324,181,478.11
1,093,584,406.07
Profit or loss arising from changes in fair value of financial
assets and financial liabilities held by non-financial entities,
and profit or loss arising from disposal of financial assets
and financial liabilities, except for effective hedging
activities related to the Company's normal business
operations
157,464,383.83
46,092,153.02
20,829,305.37
Net profit or loss of subsidiaries arising from business
combinations under common control of the current period
from the beginning of the period to the date of
consolidation
3,593,306.97
-10,073,849.76
-2,581,701.76
Other non-operating income and expenses apart from the
aforesaid items
-80,280,033.06
-139,979,862.69
-71,400,519.77
Less: Effect of income tax
-193,626,165.01
-178,092,484.16
-150,225,774.23
Effect of minority interests (after tax)
-50,274,087.60
-38,778,108.00
-19,881,554.58
Total
949,166,585.31
926,313,463.54
772,450,884.44
For the Company's recognition of items that are not listed in the "Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-recurring Profit or Loss" as non-recurring profit or loss items and the amount of which is significant, and for non-recurring profit or loss items as illustrated in the "Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-recurring Profit or Loss" designated as recurring profit or loss items, reasons shall be specified.
Applicable √ Not Applicable
16 Haier Smart Home Co., Ltd. Annual Report 2025
Section II General Information of the Company and Key Financial Indicators -
COMPANIES WITH EQUITY INCENTIVES AND EMPLOYEE STOCK OWNERSHIP PLANS MAY CHOOSE TO DISCLOSE NET PROFITS
AFTER DEDUCTION OF THE IMPACT OF SHARE-BASED PAYMENTS
√ Applicable □ Not Applicable
Unit and Currency: RMB
Key accounting data 2025 2024
After adjustment
Before adjustment
Increase/ decrease for the reporting
period compared with the corresponding period of last
year (%) 2023
Net profit after deduction of the
impact of share-based payment 20,652,748,587.38 19,939,606,025.96 19,949,679,875.72 3.58 17,632,584,545.60
Haier Smart Home Co., Ltd. Annual Report 2025 17
Section II General Information of the Company and Key Financial Indicators -
ITEMS MEASURED BY FAIR VALUE
√ Applicable □ Not Applicable
Unit and Currency: RMB
Items
Opening balance
Closing balance
Changes in the current period
Affected amount to profit of current
period
Wealth management products
746,436,121.40
1,485,993,504.45
739,557,383.05
94,624,262.70
Investment in other equity instruments
6,073,680,870.82
5,405,101,489.33
-668,579,381.49
48,149,944.99
Investment in trading equity instruments
195,177,368.77
209,183,404.17
14,006,035.40
100,839,725.39
Investment funds
294,404,349.36
339,093,852.91
44,689,503.55
55,251,132.65
Financing receivables
412,922,615.25
1,787,975,081.92
1,375,052,466.67
-75,923,719.88
Derivative financial instruments
71,698,406.90
-110,226,742.75
-181,925,149.65
-122,518,785.91
Total
7,794,319,732.50
9,117,120,590.03
1,322,800,857.53
100,422,559.94
- OTHERS
□Applicable √ Not Applicable
18 Haier Smart Home Co., Ltd. Annual Report 2025
Section III Management Discussion and Analysis-
DISCUSSION AND ANALYSIS OF THE COMPANY'S BUSINESS OPERATIONS DURING THE REPORTING PERIOD
Founded in 1984, Haier Smart Home has built its business by anticipating industry shifts, delivering market-defining innovations, and continuously reinventing its operating model. Over four decades, the Company has grown into the global leader in major home appliances and a pioneer in smart home solutions.
Market PositionGlobal leader in major home appliances. According to Euromonitor International, the Company has ranked No. 1 globally in major home appliance brand retail volume for 17 consecutive years. The Company operates a portfolio of seven global brands - Haier, Casarte, Leader, GE Appliances, Candy, Fisher & Paykel, and AQUA. From 2008 to 2025, the Haier brand has held the No. 1 position worldwide in both refrigerator and washing machine retail volume for 18 and 17 consecutive years, respectively.
Pioneer in smart home solutions. Euromonitor data confirms that, leveraging its full-category appliance portfolio, the Company was among the first in the industry to launch integrated smart home solutions. Sanyiniao, the Company's smart home platform, delivers personalized, professional smart living solutions through three core capabilities: a customization engine, a fulfillment platform, and the Smart Home AI Engine.
Business SegmentsThe Company has developed a comprehensive portfolio of smart home solutions spanning food preservation and cooking, fabric care, air management, water solutions, and other complementary businesses.
Food Preservation and Cooking Solutions
The Company manufactures and sells refrigerators, freezers, and kitchen appliances globally, and delivers integrated smart kitchen experiences combining intelligent appliances with ecosystem resources. For example, the Casarte Zhijing Series refrigerator features proprietary MSA nitrogen-oxygen intelligent freshness technology, retaining over 99% of nutritional value after seven days of cold storage - elevating the industry standard to cellular-level preservation. The unit is also engineered for a seamless flush fit within international standard cabinetry, with zero side gaps and zero protrusion.
In kitchen appliances, the Company introduced a 325mm ultra-slim fully built-in range hood and a top-intake fully built-in cooktop, achieving fully integrated design with cabinetry. Equipped with "AI Vision" technology, the range hood intelligently detects cookware and food status to prevent boil-overs, while the oven automatically identifies ingredients and matches optimal cooking profiles. The Company also introduced an original drawer-style dishwasher with ergonomic loading and dual-zone precision washing.
Haier Smart Home Co., Ltd. Annual Report 2025 19
Section III Management Discussion and AnalysisFabric Care Solutions
Haier washing machines are built on proprietary technology designed to solve everyday laundry challenges. The product range - including washing machines, dryers, washer-dryer combos, garment care systems, and drying racks - has evolved from standalone appliances to end-to-end fabric care solutions. During the reporting period, the Company advanced its three-drum zoned wash-and-care product family and launched heat-pump washer-dryer combos across three brands to capture growth in this emerging category. Key innovations include the Zhongzi Hemei washer, which integrates washing, drying, and garment care in one unit; the Jinghua washer, which generates triple-concentration cleaning fluid through high-pressure detergent pre-mixing for faster, more effective cleaning; and an industry-first 3D see-through drying technology that precisely measures internal fabric moisture levels, stopping the cycle the moment clothes are fully dry.
Air Solutions
Residential Air Conditioning
The Company sells residential air conditioners and fresh air systems worldwide, complemented by full-lifecycle design, installation, and service solutions. Smart-enabled products deliver whole-home intelligent air management across temperature, humidity, air quality, and sterilization. During the reporting period, the Company launched air conditioners with proprietary refrigerant-directed distribution and dual-evaporator coupled control technology, expanding comfort coverage by 40%. The system integrates proprietary AI models and cloud computing to monitor ambient conditions and cross-reference Haier's microbiology database, automatically triggering targeted self-cleaning programs.
Smart Building Solutions
Aligned with China's "dual carbon" strategic goals, the Company's smart building business provides energy-efficient, sustainable building solutions - covering building controls, environmental systems, energy management, and system integration - for government, commercial, transit, educational, and healthcare clients. The Company holds meaningful market positions in China in magnetic levitation central air conditioning, IoT-enabled VRF systems, and air-source heat pumps.
Water Solutions
The Company provides a full range of water products globally, including electric, gas, solar, and heat pump water heaters, as well as POE/POU water purifiers and water softeners. Smart-connected products enable integrated hot-water, purification, and heating scenarios. During the reporting period, the Company launched its "Crystal Tank" water heater technology - achieving zero metal contact, zero rust, and zero magnesium residue - with PCC mineral-infusion technology that releases beneficial minerals. For top-efficiency gas water heaters, a proprietary centrifugal atomization system achieves 100% condensate external discharge, balancing energy efficiency with clean aesthetics. Through the 2024 acquisition of Kwikot, a well-established South African brand, the Company further expanded its water heater footprint across Africa in 2025.
20 Haier Smart Home Co., Ltd. Annual Report 2025
Section III Management Discussion and Analysis Global FootprintThe Company manufactures and sells a full range of home appliances and value-added services across more than 200 countries and regions, including North America, Europe, South Asia, Southeast Asia, Australia and New Zealand, Japan, the Middle East, and Africa.
In overseas markets, the Company develops and sells products under its proprietary brands, tailored to local consumer preferences. With over 20 years of international operating experience, the Company has expanded through a series of strategic acquisitions - including GE Appliances (2016), Fisher & Paykel (2018), Candy (2019), and most recently CCR and Kwikot (2024). CCR supports the Company's commercial refrigeration strategy in Europe and Asia-Pacific, while Kwikot strengthens the water heater business and accelerates white goods market penetration in South Africa.
Other BusinessesBuilding on its core smart home platform, the Company also operates small appliance, robotic cleaning, and channel distribution businesses. The small appliance business features products designed in-house and manufactured by third-party OEM partners under the Company's proprietary brands, enriching the smart home product ecosystem. The channel distribution business leverages the Company's extensive retail network to distribute TVs, consumer electronics, and other products for Haier Group and third-party brands.
Awards and RecognitionDuring the reporting period, the Company was once again named to the Fortune Global 500. GE Appliances earned Great Place to Work® certification for the fourth consecutive time and was named one of Fast Company's Most Innovative Companies in Consumer Electronics for 2025, while receiving IoT Breakthrough's "Smart Appliance Company of the Year" award for the ninth consecutive year. Casarte's brand value rose to RMB92.8 billion, ranking first among premium brands for five consecutive years.
The Company was also included on Fortune's China ESG Influence list, with an MSCI ESG rating of AA - among the highest in China's home appliance sector. In R&D, the Company's proprietary intelligent wash-and-dry technology received the Shandong Provincial Science and Technology Progress First Prize, and its green, low-carbon rapid-wash technology won the China Light Industry Federation Science and Technology Progress First Prize, among multiple provincial and ministerial-level awards.
Explanation of the company's new material non-core business during the reporting period
Applicable √ Not Applicable
Haier Smart Home Co., Ltd. Annual Report 2025 21
Section III Management Discussion and Analysis -
INDUSTRY OF THE COMPANY DURING THE REPORTING PERIOD
-
Industry Overview for 2025
Home Appliance Industry
Domestic market performance
In 2025, the extension of the home appliance trade-in policy had a diminishing impact on the market. The policy's residual effects supported demand through the first half of the year but momentum faded in the second half, resulting in strong early-year performance followed by a downturn. According to AVC, China's home appliance retail sales across all categories (excluding 3C products) reached RMB893.1 billion in 2025, a decrease of 4.3% year-on-year. Sales in the second half of the year totaled RMB421.4 billion, a 16% decline from the previous year.
In 2025, the Chinese home appliance industry underwent a significant reshuffle amid a saturated market, setting in motion a profound transformation in its growth strategies.
First, the industry's growth drivers have been shifting from customer acquisition to brand building. With the rising cost of online advertising, paid acquisition models became less effective. The industry is moving from meeting basic functional needs to creating value through integrated home scenarios, and from scattered product promotions to systematic brand development. Through consistent content delivery and user engagement, companies can establish brand recognition and boost customer loyalty and pricing power.
Second, as online and offline channels continued to merge, establishing a highly collaborative omnichannel operating model has become critical for success. E-commerce platforms continued to optimize product efficiency and user experience, reinforcing the fundamental model where customers actively search for products. Meanwhile, instant retail, enabled by location-based services, delivers goods within minutes and has emerged as a new growth engine by bringing products directly to customers. Physical stores also transformed from simple points of sale into experience centers, local fulfillment hubs, and community spaces. As these channels merged, a seamless, integrated retail environment has become the new industry standard. In this landscape, leveraging digital tools for omnichannel inventory sharing and direct-to-consumer delivery is the key to improving channel operation efficiency and responding rapidly to customer needs. This strategy is also vital for creating a sustainable competitive advantage.
Third, the "silver economy" has emerged as a new growth market for senior-friendly home appliances. This market has already exceeded RMB100 billion in 2025 according to AVC data. As of the end of 2025, China's population aged 60 and above amounted to 323 million, representing 23% of the total. Alongside this demographic growth, elderly spending is shifting from basic necessities toward lifestyle improvements and enjoyment. This trend fueled sustained demand for home modifications related to living, bathing, cooking, and safety. Consequently, products that are safe, user-friendly, and incorporate smart health features and emotional connections are becoming a key driver of growth for the industry.
22 Haier Smart Home Co., Ltd. Annual Report 2025
Section III Management Discussion and AnalysisOverseas Markets
According to Euromonitor, the global home appliance market in 2025 recorded stable overall volume but experienced structural shifts. Global retail sales for core home appliances reached USD 298.3 billion, a year-on-year increase of 3.3%. Meanwhile, global retail sales for small home appliances reached USD 130.7 billion, a 4.6% increase year-on-year. While growth in developed markets remained relatively stable, emerging markets saw strong overall expansion. Regions like Southeast Asia and the Middle East experienced rapid growth fueled by urbanization, rising essential demand, and the expansion of online retail. However, these regions also faced mounting pressure from intensifying competition and rising costs.
The U.S.: Market remained under pressure from low consumer confidence and sluggish property sector.
Europe: Sales Volume grew 2.1% and revenue declined 1%, Industry Sales Value (YoY) -1.0%；New EU energy efficiency regulations have stimulated product upgrades, while weak economic growth and consumer pressure are suppressing prices.
South Asia: Market went down by 0.4% with major competitors experiencing decline in both volume and profit in India. Pakistan market grew 10% and AC grew 15% driven by economic and consumption recovery as well as favourable weather.
Australia and New Zealand: Australian market grew by 3.8%, supported by product suite demand and government rebate policies. In New Zealand, industry declined by 1%, constrained by a weak property market and labor shortages. Annual inflation stands at 3.0%. Overall recovery remains slow despite consumer confidence rebounded at year end.
Southeast Asia: In Thailand, growth was primarily driven by air conditioners, refrigerators, and washing machines. Vietnam saw continued increases in demand for air conditioners, while Malaysia experienced overall market growth. In Indonesia, overall sales revenue trended upward despite mild decline in volume of several categories. This indicated a shift from volume-driven to value-driven market growth as product mix upgrades boosted average prices.
Japan: GfK estimates sales volume of refrigerator, freezer and washing machine decline 3.0%, sales revenue down 3.8%.
Haier Smart Home Co., Ltd. Annual Report 2025 23
Section III Management Discussion and AnalysisCentral Air Conditioning Industry
According to data from China IoL, China's central air conditioning industry recorded sales of RMB138.68 billion in 2025, with domestic and export markets showing divergent trends. Domestic sales contracted by 7.4% year-on-year to RMB112.55 billion, while export sales grew by 12.7% to RMB26.14 billion.
The domestic market faced pressure from three main factors. A significant downturn in the real estate sector caused a sharp drop in shipments for fully-furnished projects. Demand from traditional sectors such as industrial manufacturing, healthcare, and hospitality remained sluggish. At the same time, intensifying price competition further squeezed the market. Despite this weak overall performance, new structural opportunities are emerging. The rapid expansion of data centers is steadily increasing demand for cooling systems. Furthermore, China's "dual carbon" goals are creating a market for high-efficiency products such as magnetic levitation centrifugal chillers, driven by energy-saving retrofits in older buildings.
In contrast, export growth bucked the domestic trend. This increase was primarily driven by Chinese companies' strategic expansion into emerging markets, improved product performance, and localized adaptation efforts. The continued global growth of the data center industry also made a significant contribution. Exports have become a critical pillar for growth during this period of domestic consolidation.
Commercial Refrigeration Business
In 2025, the global commercial refrigeration industry entered a period of structural growth, driven by technological advancements and regulatory policies.
Europe, the world's most mature core market for commercial refrigeration, was estimated at approximately USD 13 billion in 2025, representing steady year-on-year growth of about 3%. This growth was largely policy-driven. The strict enforcement of the EU's F-gas Regulation is phasing out equipment using high-GWP (Global Warming Potential) refrigerants, creating significant demand for environmentally friendly alternatives. This trend is expected to continue in 2026, with eco-friendly refrigerants, high-efficiency commercial freezers, and smart cold storage becoming mainstream.
China's commercial refrigeration market achieved growth in both sales volume and revenue in 2025. Annual sales reached 18 million units, up around 3% year-on-year, with sales revenue exceeding RMB36 billion, up around 2%. The catering industry remained the primary source of demand, while the booming ready-to-cook foods sector and improved cold chain logistics provided strong support for medium-to-large-scale cold storage facilities and retail-end freezers. Looking ahead to 2026, the national "equipment renewal" policy, recovery of offline consumption, and the need for equipment standardization from restaurant chains will further stimulate end-user demand.
24 Haier Smart Home Co., Ltd. Annual Report 2025
Section III Management Discussion and AnalysisIn India, driven by government policies like the Prime Minister's Farmers Integrated Food Processing and Development Scheme (PMKSY), infrastructure investment in food processing and pharmaceutical cold chain sectors has reached a record high. As India transforms to modern and smart cold chain systems, it is becoming one of the world's fastest-growing emerging markets, with its compound annual growth rate expected to remain in the double digits for years to come.
In North America, market growth is primarily driven by evolving retail formats. Specifically, the widespread development of micro-fulfillment centers for online grocers has fueled sustained demand for highly automated refrigerated warehousing systems.
-
Industry Outlook for 2026
Home Appliance Industry
Domestic Market
China's domestic home appliance market is now defined by high penetration and a massive installed base. According to AVC, total home appliance ownership in China exceeds 4 billion units, averaging more than eight units per household. The industry has shifted from a period of rapid expansion to a competitive market centered on existing customers. Consequently, replacement demand is now the main driver. The sector has entered a new phase focusing on nurturing its customer base and encouraging product mix upgrades. Consumer preferences are moving from initial adoption to quality improvements, with key growth opportunities in green technology, whole-house smart systems, health-focused solutions, and integration with home furnishings.
The national subsidy program is set to continue in 2026 with updated standards. A joint notice from the Ministry of Commerce and four other departments outlines that the 2026 subsidies will target six appliance categories, including refrigerators, washing machines, and air conditioners, that meet Level 1 energy or water efficiency standards. The subsidy will cover 15% of the final sales price, with a maximum of RMB1,500 per item. This policy is designed to encourage the adoption of high-efficiency and smart products. AVC forecasts that overall industry growth may face pressure in 2026 due to the high base effect from previous subsidies, but structural opportunities will remain, as the policy favours high-efficiency models and accelerates product mix upgrades. Steady demand from home renovations and upgrades will also create growth for companies offering comprehensive solutions.
Haier Smart Home Co., Ltd. Annual Report 2025 25
Section III Management Discussion and AnalysisOverseas Markets
Overall, the overseas home appliance market is expected to experience a moderate recovery in 2026, with different growth drivers for developed and emerging markets. Companies must continuously monitor global macroeconomic fluctuations and changes in trade policy, capitalizing on structural growth opportunities through technological innovation, localized operations, and flexible supply chain strategies.
North America: U.S. GDP grew by 2.2% in 2025, with Q4 growth slowed to 1.4%. Currently, U.S. consumer demand is relatively weak. Additionally, pressure from tariffs continues to reduce consumer disposable income and raise import costs for businesses, dampening demand in the home appliance market. This situation is expected to persist through the first half of 2026. However, as the Federal Reserve is expected to cut interest rates, falling mortgage rates could stimulate the real estate market and subsequently boost consumer demand for home appliances in the second half of 2026.
Europe: As energy efficiency standards become stricter, highly efficient, energy-saving products are rapidly replacing older models. The European home appliance market will continue to prioritize sustainability. Eco-friendly, smart, and efficient appliances are becoming mainstream, leading to intensified competition among manufacturers in both ESG performance and product innovation.
Emerging Markets: In 2026, consumer demand is expected to grow steadily. Accelerating urbanization and an expanding middle class in Southeast Asia, South Asia, the Middle East, and Africa will continue to create significant market opportunities for the industry.
Central Air Conditioning Industry
Domestic Market. In 2026, demand in China's central air conditioning industry will shift from new installations to upgrades of existing systems. Although overall market growth has slowed, the national 'dual carbon' strategy and industrial upgrades are creating structural opportunities. There is a rising demand for energy-efficient retrofits. The adoption of high-efficiency products, such as magnetic levitation centrifugal chillers, is steadily increasing in industrial and commercial buildings. The 15th Five-Year Plan on industrial upgrades, along with policies promoting energy-saving renovations in older buildings, will continue to fuel growth in integrated energy solutions. The intelligent computing sector is generating new demand. The rapid expansion of AI and data centers is driving the need for advanced cooling systems, turning liquid cooling and high-power-density heat dissipation technologies into significant growth markets.
Export Market. The export market is expected to continue its growth trend, with China IoL projecting mid-to-high single-digit growth for the full year driven by factors such as the global transition to new refrigerants.
26 Haier Smart Home Co., Ltd. Annual Report 2025
Section III Management Discussion and AnalysisRising raw material prices are expected to temper industry price wars, shifting the competitive focus toward "all-scenario, full lifecycle" integrated solutions. Distributors are increasingly prioritizing long-term operational efficiency and asset value over initial investment costs. Leading brands are poised to increase their market concentration through technological expertise and extensive service networks, reinforcing a winner-takes-all dynamic.
Commercial Refrigeration Industry
In 2026, the European commercial refrigeration market is expected to achieve steady growth, driven by strict policies and demand for equipment upgrade. Tighter regulations on fluorinated gases and energy-efficient design are accelerating a systemic shift in product mix toward low-carbon solutions. The competitive landscape remains highly fragmented, with leading companies strengthening their ESG credentials by investing in renewable-energy-powered facilities and adopting circular economy principles. As the EU Green Deal progresses and the replacement cycle for older equipment begins, suppliers with expertise in natural refrigerants and smart system integration are well-positioned to capture a larger market share.
-
Industry Overview for 2025
-
DISCUSSION AND ANALYSIS ON OPERATIONS
-
Industry Trends and Company's Strategic Initiatives
The development of China's home appliance industry has undergone a profound transformation. Consumer demand has shifted from basic functionality to the pursuit of a higher quality of life. Green, energy-efficient, smart, and health-focused products are now central to this consumption upgrade, and trade-in policies are effectively encouraging consumers to replace older appliances with superior new models. At the same time, a trend toward consumption focused on personal well-being is on the rise, making emotional value a new growth driver. Consumers are willing to pay for high-quality products with strong emotional appeal, shifting from purchasing to please others to purchasing for self-satisfaction. Furthermore, the growth from traditional e-commerce traffic has peaked. The deep integration of offline experiences and online transactions has become the norm. Improving retail efficiency now depends on digital insights into user needs across the entire customer journey. With highly fragmented channel touchpoints, simple traffic acquisition models are losing their edge. Instead, building long-term brand recognition has become a key competitive advantage.
The global market has also undergone significant adjustments. Geopolitical factors and tariff barriers have increased the uncertainty of overseas operations, placing higher demands on companies' localized operations and supply chain resilience. However, the trend of consumption upgrades in emerging markets remains clear. The rise of the middle class in these markets is expected to drive a compound annual industry growth rate of over 7%. The retail channel landscape is also rapidly evolving, with both online and fragmented sales models gaining traction. In 2025, the proportion of online home appliance sales in the U.S. held steady at over 25%, while European online channels grew against headwinds. The penetration of the direct-to-consumer (DTC) model has placed higher demands on companies' digital marketing and omnichannel coordination capabilities.
Haier Smart Home Co., Ltd. Annual Report 2025 27
Section III Management Discussion and AnalysisThe HVAC industry is facing structural opportunities, and overseas markets hold immense potential. In the Chinese market, integrated solutions such as heat pump systems and whole-house HVAC and water systems are gaining favor. Product development is focused on the deep integration of standardized components with scenario-based customizations. In Europe, Southeast Asia, and the Middle East and Africa, the HVAC market still has substantial room for growth due to climate change and population increases. Chinese companies have significant advantages in production capacity concentration and manufacturing efficiency, offering broad potential to increase their global market share.
In response to the opportunities and challenges, our Company has centered our core strategy on maximizing user value, systematically implementing transformative measures to upgrade our core competitiveness and drive growth despite market headwinds.
First, we established a user co-creation model to develop best-selling products. In response to the shift in user needs toward emotional and experiential value, the Company has transformed users from passive recipients into product co-creators. Through their deep involvement in defining requirements and validating use cases, we developed products with exceptional experiences, such as the Lazy Wash washing machine and the Mailang refrigerator. This model balanced emotional connection with practical functionality, creating differentiated competitiveness and driving our strategic shift from routine releases to systematic development of best-selling products.
Second, we strengthened our operations for direct-to-consumer engagement across all channels. In the domestic market, we comprehensively promoted the transformation to a direct-to-consumer model. By leveraging platform tools for digital inventory, marketing, and storefronts, we empowered distributors to operate with an asset-light model, shorten transaction chain, and improve efficiency and precision of direct user engagement. This approach facilitated the continuous accumulation and activation of our user base. In overseas markets, we strengthened localized brand-building systems, promoting deep localization of products, branding, and operations, enabling the Haier brand to build a lasting reputation and a sustainable competitive advantage in each local market.
Third, we unlocked synergies of our globalized local footprint. Our Company has over 60 overseas factories that formed a global manufacturing network. We implemented a "1+1+N" global supply model, which was based on localized supply, supported by regional coordination, and secured by global resource synergy. This approach enabled the highly efficient dual circulation of both localized and globalized operations, not only enhanced the resilience and stability of our supply chain but also ensured our ability to respond quickly to market fluctuations. Our globalization strategy is evolving from simply exporting products to exporting systemic capabilities, which has become a core source of our resilience against external uncertainties.
Fourth, we fully embraced AI by integrating intelligence into every business process, including R&D, manufacturing, and sales. Leveraging our Smart Home Brain and the Uhome large model, we advanced from product-level intelligence to scenario-based intelligence. We utilized algorithms to optimize user experience, data to drive precise services, and technology to enhance operational efficiency, which facilitated a leap from relying on hardware competitiveness to building comprehensive advantages across hardware, software, and services.
28 Haier Smart Home Co., Ltd. Annual Report 2025
Section III Management Discussion and AnalysisFifth, we strengthened our strategic position in the HVAC industry to cultivate new growth engines. To capitalize on structural opportunities in the HVAC sector, the Company enhanced core competencies in home air conditioning and smart building solutions. We accelerated the overseas expansion of our water solution business, while promoting the integration and synergy of our broader HVAC operations, thereby building momentum for future development, and speeding up the cultivation of new growth drivers.
The coordinated implementation of these initiatives provided solid support for the Company's high-quality growth amid the complex environment in 2025. It also laid the strategic foundation for our continuous evolution into a platform-based, service-oriented technology ecosystem enterprise.
-
Analysis of Financial Indicators
In 2025, the Company's revenue totaled RMB302.347 billion, a year-on-year increase of 5.7% from 2024, driven by several factors: cocreation of best selling products, end-to-end consumer management and digital inventory in the domestic market; strong growth in South Asia, Southeast Asia, Middle East and Africa as well as the consolidation of CCR and Kwikot.
In 2025, the net profit attributable to shareholders of the parent company was RMB19.553 billion, representing a 4.39% increase from 2024; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB18.604 billion, representing a 4.5% increase from 2024.
The Company's gross profit margin reached 26.7% in 2025, down 1.1 percentage points year-on-year. In the domestic market, the cost saved from efficiency initiatives was offset by increasing commodities market and intensified competition in the fourth quarter 2025; global coordination, digitalization and cost cutting efforts were also partly offset by increasing tariff overseas.
The selling expense ratio was 11.2% in 2025, a reduction of 0.6 percentage points compared to the same period in 2024. In the domestic market, digital transformation initiatives improved efficiency in marketing resource allocation, logistics, and warehouse operations, resulting in a year-on-year optimization of the selling expense ratio. In overseas markets, operational efficiency was improved through retail innovation and global resource integration.
The administrative expense ratio was 4.6% in 2025, an increase of 0.3 percentage points compared to the same period in 2024. digitalization and AI platform contributed to efficiency improvement in the domestic market while one-off restructuring cost and marketing expansion input resulted in an increase of administrative ratio overseas.
The financial expense ratio was -0.02% in 2025 (where expense is "+" and income is "-"), an decrease of 0.36 percentage points compared to 2024, leveraging an increase in foreign exchange gains from appreciation of Euro.
In 2025, the Company's net cash flow from operating activities was RMB26.003 billion, down RMB315 million from 2024.
Haier Smart Home Co., Ltd. Annual Report 2025 29
Section III Management Discussion and Analysis
- Key Market Performance
China Market
In the China market, the Company focused on enhancing its omnichannel, direct-to-consumer competitiveness by developing three core capabilities for systematic transformation. First, we established foundational omnichannel direct-to-consumer capabilities through a digital inventory system that streamlined business chain and improved operational efficiency. Second, we centered digital marketing efforts on precisely targeting and converting consumers, leading to higher traffic conversion and building long-term user value. Third, we leveraged our multi-brand portfolio to reach diverse consumer segments, which enabled targeted outreach and deeper engagement. The synergy of these evolving capabilities enabled our Company to achieve domestic revenue growth of 3.1% that bucked market trends in 2025.
We enhanced our digital inventory transformation to build a foundation for omnichannel direct-to-consumer capabilities. Digital upgrades in the supply chain and logistics streamlined transactions and optimized operational efficiency. As of the end of 2025, RRS Logistics was delivering 100,000 units directly to users daily, with the proportion of omnichannel direct-to-consumer deliveries rising to 57%. Our 24-hour delivery service expanded to cover 1,944 districts and counties, and the rate of integrated delivery and installation increased to 97%.
On the supply chain side, we upgraded our order forecasting and automated inventory deployment models and improved our integrated online-offline inventory system. These changes enhanced inventory turnover, and increased order forecast accuracy by 2.6%.
On the logistics side, we optimized our warehouse and distribution network, improving efficiency and achieving cost reductions of RMB340 million. We saved RMB110 million in warehousing by sharing distributors' inventory across channels and implementing digital management for high-density storage, which boosted warehouse utilization by 6 percentage points. We also saved RMB230 million in distribution by consolidating shipments from multiple industrial parks, shipping small home appliances nationwide directly from a single warehouse, and enabling cross-regional delivery from the closest facility. Our unified warehouse direct-to-consumer model has reshaped partnerships with distributors. By systematically optimizing stocking, delivery, service, and settlement, the model reduced distributors' inventory pressure and capital requirements while addressing delivery and after-sales service needs, allowing them to focus on retail operations. Moreover, the transparency and predictability of the entire process, from product supply to policy support and revenue realization, has significantly increased distributors' motivation. By lowering capital barriers and operational risks, this model fostered a mutually beneficial and empowering relationship between the Company and our distributors.
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Section III Management Discussion and AnalysisWe cultivated our user base through digital marketing and a multi-touchpoint engagement system.
Our strategy focused on managing the entire user lifecycle. We have developed cross-platform engagement capabilities that span the full customer journey, from initial awareness to long-term loyalty. Our marketing approach has evolved from experience-based to data-driven, centered on increasing our Share of Voice (SOV) and Net Promoter Score (NPS). This has allowed us to seamlessly integrate traffic acquisition with user engagement.
In terms of user reach, our social media following grew to 31.81 million, a year-on-year increase of 12%, establishing an omnichannel coverage for user engagement. On Xiaohongshu, the Haier brand achieved a 17.8% increase in search volume within the major home appliances category, ranking first in search frequency. In terms of promotion decision-making, we developed a smart end-to-end system for influencer collaborations, which added analytical rigor and improved risk management for our campaigns. In 2025, the efficiency of our influencer marketing on Xiaohongshu and Douyin improved by 13.7% and 24.7% respectively.
We strengthened our multi-brand portfolio and product suite strategy to precisely target diverse user segments.
We leveraged the differentiated market positioning of our three brands: Haier, Casarte, and Leader. With product suites as a core strategy, we focused resources on shaping consumer perception by developing high-impact, compelling marketing keywords related to these suites. This approach effectively converted product exposure into brand recognition, enabling us to precisely target and serve diverse user segments, reinforcing the competitive advantage of our multi-brand portfolio.
The Haier brand leveraged AI technology to comprehensively upgrade its brand, products, and customer touchpoints. To appeal to younger consumers, the brand launched the Little Red Flower suite, marketed as the "first AI appliance suite for young people", which sold over 5.7 million units during the year. For families seeking quality, the brand introduced the Mailang suite, which captivated users with its calming aesthetic. In 2025, the Haier brand's retail sales grew by 8% year-on-year, solidifying its leading position in the mainstream home appliance market.
The Casarte brand forged an emotional connection with consumers by blending intangible cultural heritage with proprietary AI technology. The brand launched the Connoisseur and Maestro suites featuring the "AI Vision" to cater to the evolving preferences of high-net-worth individuals, who increasingly seek cultural identity over material satisfaction. In 2025, Casarte's revenue grew by double-digit year-on-year, with its core product categories maintaining a leading share in the premium market. The brand's market share in the high-end segment reached 44% for refrigerators (priced over RMB10,000), 75% for washing machines, 30% for water heaters (over RMB10,000), and 53% for air conditioners priced above RMB15,000.
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Section III Management Discussion and AnalysisThe Leader brand focused on feedback-driven marketing and user co-creation. The brand achieved viral success with its best-selling Lazy Wash Triple-Drum Washing Machine, which led to the rapid expansion of the Lazy series into a full product line offering zone-washing solutions for diverse scenarios. In 2025, Leader's revenue surpassed RMB10 billion for the first time, a year-on-year increase of 30%. This success has established the brand as a key growth engine for the Company's strategy to engage younger consumers.
North America
During the reporting period, the Company remained focused on delivering technology-driven innovation, manufacturing excellence, and differentiated products in North America. The new launches included Monogram 24" Panel-Ready Beverage Centre that brings elevated versatility and thoughtful design; GE Profile™ Smart Compact Dishwasher for Countertop or built-in installation; UltraFast Combo washer with new finishes that brings a vibrant, design-forward aesthetic and personality to the laundry space; Powered by Google Cloud's generative AI, the expanded SmartHQ platform introduced specialized AI assistants for coffee and laundry care, each designed to tackle specific household challenges. Amid a changing tariff and policy environment, the Company continued to strengthen its position in premium segments with 7% YOY growth.
The Company also deepened partnerships with major retail channels through clear commercial strategies, fulfillment capabilities, and strong customer support. GE Appliances was named a 2025 Vendor Partner of the Year by Lowe's. In manufacturing, GE Appliances completed the expansion at its Georgia cooking products plant and plans to build its most advanced clothes-washer manufacturing facility in Louisville, Kentucky.
In Air & Water Solutions, the Company introduced new residential and commercial HVAC offerings with enhanced compatibility, serviceability, and installation flexibility for contractors. The segment achieved double-digit growth.
European Market
In 2025, the European market, as a core pillar of the Company's globalization strategy, underwent a profound structural transformation and integration, resulting in a significant improvement in profitability. Against a complex and challenging macroeconomic backdrop, the Company remained user-centric and pivoted its business focus from scale expansion to high-quality growth. This strategic shift led to a fundamental improvement in operational quality and further enhanced the region's strategic value.
During the reporting period, revenue in the European market achieved double-digit year-on-year growth, accompanied by a substantial upgrade in the quality of operations. Key initiatives driving this transformation included:
Comprehensive Implementation of "Operating Model 2.0"
Supply Chain: The Company continued to optimize its European supply chain footprint, systematically migrating production capacity to core manufacturing hubs in Turkey, Southeast Asia, and China. This movement leveraged cost advantages while enhancing market responsiveness.
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Section III Management Discussion and AnalysisChannels: We deepened our Key Account (KA) strategy and customized service offerings while accelerating the development of e-commerce platforms, led by Amazon, and Direct-to-Consumer (DTC) channels, resulting in rapid growth.
Organization: Efficiency was bolstered through organizational streamlining and operational optimization, yielding clear transitional benefits. Furthermore, the Company established or upgraded hundreds of terminal outlets across Europe. By elevating the brand's visual identity and strengthening retail promoter training, we effectively boosted brand resonance among younger demographics.
Focus on Product and Service Upgrades
Through sustained R&D investment, the Company enhanced the competitiveness of its refrigerator and washing machine portfolios across all price segments. Our washing machine business climbed to the No. 2 market share position in the region, driven by product innovation - notably the coordinated launch of "triple-drum" washing machines, which showcased the seamless integration of our global R&D and sales networks. The refrigerator segment maintained robust momentum, continuing its trajectory toward the industry's top tier.
To drive brand premiumization, the Company launched a global sponsorship program, partnering with elite football clubs such as Liverpool and Paris Saint-Germain (PSG) to significantly elevate brand awareness and customer perception. Regarding sustainability, the Company ensured all products met the EU's stringent energy efficiency and environmental standards. We proactively invested in low-carbon technologies to address future carbon border adjustment (carbon tax) challenges while accelerating the deployment of our Smart Home platform in Europe to provide users with intelligent, scenario-based experiences.
Emerging Markets
In 2025, Emerging Markets served as a critical engine for sustained growth. By efficiently replicating the successful experiences and business models pioneered in the Chinese market, the Company achieved rapid growth that significantly outpaced the industry average.
During the reporting period, revenue from emerging regions (including Southeast Asia, South Asia, and Middle East & Africa) grew by over 24% year-on-year, further consolidating our leadership in several core markets. The Company transitioned from a "product export" model to deep "brand operations" model, prioritizing optimized regional and product mixes to enhance overall profitability. By implementing a localized brand-building strategy, the Company maintained its leading industry position in Pakistan, India, and Thailand. We continued to introduce high-margin, solution-based products to global markets, successfully moving beyond price competition to achieve simultaneous growth in volume and price.
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Section III Management Discussion and AnalysisReplicating the "Hero Product + Channel" Formula
The Company combined its expertise in creating "Blockbusters" in China with deep local consumer insights. In South Asia, the GRAVITY series drove a significant increase in the market share of high-energy-efficiency products, propelling related categories to the top two in the Indian market. On the channel side, we successfully replicated China's e-commerce and franchised store models, deepening partnerships with major Southeast Asian e-commerce platforms and rapidly expanding our offline footprint and flagship image stores in South Asia, the Middle East, and Africa.
Strengthening Localized Manufacturing and Delivery
The Company innovated its "1+1+N" flexible supply chain system, transitioning from a China-centric supply model to one that emphasizes localization, regionalization, and global synergy. Leveraging manufacturing bases in Southeast Asia, India, and Egypt, we achieved precise R&D and rapid delivery tailored to local climates (e.g., high temperature and humidity), creating a distinct competitive advantage that radiates into the Middle East and Africa. In response to complex trade policy shifts, we utilized digital models to flexibly allocate global capacity, effectively reducing tariffs and logistics costs while ensuring supply chain resilience.
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Industry Trends and Company's Strategic Initiatives
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Business Operation Analysis
Smart Kitchen
Refrigeration
The Company's refrigerators and freezers maintained their global No.1 positions by retail volume (for the 18th and 15th consecutive year, respectively). With this scale foundation firmly in place, the Refrigeration division pivoted its emphasis toward quality of growth during the period, supported by two differentiating capabilities: a systematic engine that converts proprietary technology into commercially successful products, and a digitally enabled global operating platform. Revenue for the period totaled RMB84.76 billion, up 1.4% year-on-year, led by strong momentum in emerging overseas markets. Domestically, offline retail revenue share rose to 47.7%, a gain of 3.6 percentage points.
Innovation pipeline and technology leadership. The division captured two converging tailwinds - robust trade-in demand in China and accelerating premiumization in overseas markets - and converted them into measurable commercial outcomes. Central to this is an R&D pipeline that has ranked first in the industry by published invention patents for eight consecutive years. The standout breakthrough was our Magnetic Control Full-Space Freshness Technology, which earned the highest award at China's National Disruptive Technology Competition - the only recognition given to the home appliance sector - achieving cellular-level preservation that keeps chilled meat fresh for 10 days and frozen seafood for 60 days. This was complemented by advances in ultra-quiet operation (31dB, outperforming the national standard by 10dB), built-in installation via our proprietary hydraulic self-leveling system, and the AI Vision multimodal platform for intelligent food management.
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Section III Management Discussion and AnalysisScaling premium across brands and geographies. What distinguishes this division is not just innovation, but the speed and consistency with which new technology reaches consumers as premium, high-volume products. Casarte, our premium brand, gained 2.5 percentage points of offline retail revenue share and 0.8 percentage points online. Its Zhijing Series commanded 53% of retail revenue in the RMB10,000-and-above segment. At the volume end, the Haier "Mailang" series topped every price tier with over 600,000 units sold. Overseas, we pursued targeted brand-building by country and category. In Europe, differentiated multi-door models - including 700L large-capacity units - captured 40% of the mid-to-high-end multi-door segment, while emerging markets delivered strong revenue growth driven by local product adaptation and expanded distribution.
Cost discipline through global coordination. Margin improvement was underpinned by the division's global digital coordination platform. On the cost side, modular product design and coordinated cross-regional procurement drove further structural cost reduction, more than offsetting input cost headwinds and contributing to gross margin expansion. On the SG&A side, digital marketing tools improved consumer engagement efficiency, while process optimization in after-sales service lowered the domestic expense ratio year-on-year.
Taken together, the Refrigeration division's 2025 performance demonstrates that its leadership rests on a mutually reinforcing system - proprietary technology, premium branding, rapid commercialization, and globally coordinated operations - rather than scale alone. These same capabilities position the division well for the next phase of the Company's Smart Kitchen strategy, which aims to deepen the convergence of refrigeration and kitchen appliance solutions.
Kitchen Appliances
Against a backdrop of macroeconomic volatility and trade disruptions that weighed on global kitchen appliance demand, the division delivered revenue of RMB41.54 billion, up 0.9% year-on-year - a resilient outcome given the challenging operating environment. Overseas, we maintained leading positions in North America and Australasia. The performance was underpinned by two engines: effective coordination across our global premium brand portfolio, and the continued strengthening of localized operations.
Multi-brand synergies powering overseas leadership. As global kitchen demand shifts from single-product purchases toward integrated, built-in, and smart-enabled solutions, the division is well positioned through the combined strengths of GE Appliances (GEA), Fisher & Paykel (FPA), and Casarte. In North America, GEA accelerated the rollout of premium built-in products under its Profile and Café lines, lifting high-end brand revenue by 7% and retaining the No.1 retail share position, with dishwasher and oven shares reaching 26.8% and 41.6%, respectively. In Australasia, FPA complemented GEA's North American strength with continued premium momentum in its home market. Leveraging a model of global resource development with local experience delivery, we further consolidated our premium foothold in developed markets while scaling rapidly in emerging regions such as the Middle East and Africa.
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Section III Management Discussion and AnalysisPremiumization and pre-installation positioning in China. In the domestic market, results improved on the back of two strategic priorities: premiumization and proactive positioning in the pre-installation channel. As demand for integrated kitchen solutions grows - driven by pre-fitted housing delivery, home renovation, and the convergence of furnishing and appliances - we continued to anchor premium pricing in proprietary technology while expanding user value through scenario-based offerings. Casarte's Zhijing series, including fully flush-mounted range hoods and a proprietary drawer-type dishwasher, continued to define the industry's direction in intelligent functionality and space efficiency. Casarte kitchen appliance revenue rose 27% year-on-year.
Margin expansion supported by supply chain efficiency. Profitability improvement was reinforced by the division's integrated global supply chain. Consolidation of procurement resources and optimization of the local manufacturing footprint helped offset external cost pressures, while GEA's vertically integrated North American operations provided a stable cost base. On the operating expense side, digitally enabled tools continued to improve efficiency in marketing and service, further strengthening the division's earnings foundation.
In summary, the Kitchen Appliances division's 2025 results reflect the combined contribution of overseas brand leadership - anchored in GEA - and domestic premiumization through Casarte's integrated kitchen approach. Both growth quality and earnings visibility improved. The capabilities developed around integrated kitchen offerings, premium built-in products, and the pre-installation channel provide a solid foundation for the Company's broader Smart Kitchen strategy.
Smart Laundry Care
China's laundry market came under pressure during the period as government subsidy effects faded and growth reverted to product-driven fundamentals - an environment that favors companies with genuine product differentiation. The Laundry Care division delivered global revenue of RMB65.57 billion, up 3.5% year-on-year, driven by product innovation, channel transformation, and disciplined multi-brand execution.
Multi-brand execution in a polarizing market. As market polarization intensified, our portfolio approach proved effective. Casarte, our premium brand, grew revenue by over 15%, establishing itself as a key growth driver. Leader, targeting younger consumers, leveraged its "Effortless Three-Drum" washer to gain 2.5 percentage points of online retail revenue share, with front-load washer sales surging over 70%. Domestically, offline retail revenue share reached 47.4%, up 1.9 percentage points (per GfK). Globally, Haier washing machines held the No.1 market share at 14.4% (per Euromonitor), with leading positions in Australia, New Zealand, Pakistan, and Vietnam.
Defining two high-growth categories. The division has taken a defining role in two emerging segments: multi-drum segmented washing and heat pump integrated washer-dryers.
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Section III Management Discussion and AnalysisIn multi-drum washing, we were the first to commercialize a latent consumer need - the desire to wash intimate wear, baby clothes, and outerwear separately - through a purpose-built product. The Effortless Three-Drum washer sold over 300,000 units during the period, making it the No.1 online new product of the year. This was powered by a closed-loop system that moves from consumer insight to product launch in roughly half the industry's typical cycle time. Per AVC data, multi-drum penetration in China rose from 0.9% to 2.4% in 2025; the Company held a dominant share exceeding 60%.
The same product-creation engine extends across categories. In heat pump washer-dryers, the Casarte Neutron F2 deploys our proprietary Dual-Engine Heat Pump technology to resolve the core trade-offs of conventional condensation systems - delivering gentle 56ºC drying that is 40% faster and 30% more energy-efficient while protecting fabric quality. The product quickly became a premium bestseller. Offline penetration of heat pump washer-dryers exceeded 5% industry-wide in 2025, with Casarte holding over 30% of the segment.
Channel transformation in China. The division moved decisively to capitalize on China's rapidly evolving retail landscape. The shift toward direct-to-consumer (DTC) retail operations drove a 22% year-on-year increase in online revenue. On content commerce platforms such as Douyin (China's leading short-video platform), partnerships with lifestyle creators to showcase real-use scenarios - segmented washing, luxury garment care - generated over 190% growth. We also captured emerging opportunities in large-format new-retail stores in lower-tier cities, adding 1,100 touchpoints and growing county and township retail revenue by 25%. The marketing model has evolved from traffic acquisition to user co-creation, with social media feedback being rapidly converted into new product iterations.
Profitability: channel efficiency and localization gains. The division's profitability improved during the period, supported by two drivers. Domestically, the DTC retail model reduced intermediate distribution layers, lowering channel costs and contributing to expense ratio improvement. Overseas, deeper localization yielded a more favorable cost structure: Candy in Europe returned to profitability through product platform upgrades and management efficiency gains, while strengthened local manufacturing in North America enhanced supply chain resilience and cost predictability.
Overseas: deeper localization, broader reach. In 2025, our three-in-one localization model - local design, local manufacturing, local marketing - moved into a phase of deeper structural embedding. In Southeast Asia, laundry revenue grew over 25%, driven by the introduction of mid-to-high-end products. Japan delivered revenue growth above 5%, led by new premium heat pump models. In Europe, the Candy turnaround also translated into share gains. In North America, we strengthened local manufacturing capacity, supporting continued share gains.
Market positions advanced across every major region. In the U.S., GE washing machines held a 26.7% share (per AHAM), with large-capacity front-load products maintaining leadership. In Europe, the multi-brand approach navigated tightening energy standards to lift overall share to 12.5% (No.2); in France, front-load models entered the top three. In Australasia, share exceeded 22% (No.1). In Vietnam, we held 21.2% (No.1); in Japan, our dual-brand share reached 17.7%, advancing from No.3 to No.2. In Pakistan, we maintained the No.1 position for multiple consecutive years.
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Section III Management Discussion and AnalysisSmart HVAC
During the reporting period, HVAC business recorded sales revenue of RMB72.356 billion, up 10% year on year, amongst which smart air solution grew 9.6% to RMB54.392 billion and water solution grew 11.1% to RMB17.964 billion.
Home Air Conditioning Business
In 2025, the air conditioning business realized its full growth potential, driven by strengthening competitiveness in product technology, supply chain integration, and channel transformation. According to China IoL, Haier air conditioners defied market trends with exceptional growth. Global sales volume increased by 14.8%, with domestic volume up by 16.3% and overseas volume by 12.6%, outpacing the industry in terms of growth.
According to GfK CMM, our domestic offline retail sales share reached 21%, an increase of 1.8 percentage points year-on-year; online share rose to 10.9%, up 0.6 percentage points. In overseas markets, we ranked first in market share in Thailand, Pakistan, and Russia, with significant market share improvements in other regions.
Product Development: Creating best-selling products through original technology, delivering exceptional user experience at optimal cost
Our R&D has been centered on solving real user problems, committed to developing original technology and continuously strengthening the technology foundation of our whole-house smart air solutions. The Haier air conditioner's variable diversion technology has undergone continuous refinement, significantly improving cooling and heating efficiency and achieving an industry first with 24 hours of continuous heating. In 2025, this technology earned Gold Medals at both the 50th International Exhibition of Inventions of Geneva and the iENA Nuremberg International Trade Fair for Ideas, Inventions and New Products. The Haier air conditioner's inverter technology also received a Gold Medal at the Geneva exhibition and a Silver Medal at iENA Nuremberg, recognized for its combined strengths of precise temperature control, high energy efficiency, and stable operation. Additionally, seven technological achievements, including "Research and Application of Key Technologies for AI Smart Energy-Saving Air Conditioners" and "Variable Module Heat Exchanger Forward-Cycle Micro-Defrosting Technology for Room Air Conditioners to Achieve High Efficiency and Comfort", were certified by authoritative institutions as reaching "internationally leading" levels. In energy conservation and smart technology, our end-to-end AI energy-saving technology has enabled air conditioners to consume as little as 2 kWh of electricity per day, achieving an AI-driven energy saving rate of 46%. The innovative integration of technologies such as Smart Wind, Air Wash, and Integrated Sensing and Communication have seamlessly combined performance, comfort, health, and intelligence to enhance product experience.
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Section III Management Discussion and AnalysisGuided by our ESG strategy, the Company leveraged technological innovation for cost optimization to build sustainable cost competitiveness. First, during new product development, we applied new materials, technologies, and processes to enhance modularity, allowing cost optimization from the initial product planning stage, and quickly replicating these efficiencies to subsequent new products. Second, we leveraged vertical integration to strengthen manufacturing capabilities, continuously advancing our in-house manufacturing of core components such as compressors and computer boards to enhance supply chain efficiency and cost control. In 2025, these initiatives resulted in an approximate 8% reduction in the overall cost of our air conditioners.
This synergy of technological innovation and cost advantages has rapidly boosted our products' market competitiveness. In 2025, the share of best-selling products continued to grow, driving a 32.7% improvement in platform efficiency and a 22.2% increase in SKU efficiency. The Little Red Flower Energy Saving series, known for its industry-leading energy efficiency with an APF value of 6.12, achieved annual sales of over 1.3 million units. The Smart Wind series, which featured dual-powered mechanical arm for 270º airflow control and solved the user pain point of direct drafts, sold more than 600,000 units during the year.
Domestic Market: Channel Transformation Drove End-to-End Efficiency with Synergistic Online and Offline Growth.
The Company enhanced the competitiveness of our POP (platform open plan) and e-commerce channels by transforming our digital inventory and digital marketing models, which spurred rapid business development. For the POP channel, we helped distributors establish an asset-light operating model with omnichannel inventory sharing, where Haier manages warehousing, logistics, and direct-to-consumer delivery. This model accelerated touchpoint expansion and improved retail efficiency. In 2025, POP channel revenue grew by over 138% and retail sales by over 120%, while distributor inventory turnover efficiency improved by more than 50%. In our e-commerce channel, we focused on best-selling products and implemented a full-funnel conversion system covering brand awareness, user traffic, and product sales, which continuously improved our operational efficiency. Sales for both the 'Energy Saving' and 'Ultra Energy Saving' series exceeded one million units, boosting the channel's annual revenue growth by 38%. We also capitalized on the trend of content-driven e-commerce, increasing our market share in these channels by over 5 percentage points and securing a top two ranking. For offline channels, we focused on improving both the quantity and quality of our network while continuously refining operational capabilities. On the product side, we strengthened differentiation in our mid-to-high-end offerings and optimized our product mix, resulting in growth of over 10% for Casarte's air conditioners. To enhance distributor experience, we streamlined the return and exchange process, implemented digital tools for visible, controllable, and transferable inventory management, thereby improving inventory turnover and sales efficiency, significantly boosted distributors' confidence.
Haier Smart Home Co., Ltd. Annual Report 2025 39
Haier Smart Home Co., Ltd. Annual Report 2025
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Haier Smart Home Co. Ltd. published this content on March 26, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 26, 2026 at 15:49 UTC.
