A new breakthrough in market share across all lines! Haier Smart Home's transformation scenarios have achieved results

Haier Smart Home (600690.SH) released its 2021 semi-annual report.

During the reporting period, Haier Smart Home's operating capabilities and profitability continued to improve, with operating revenue of 111.619 billion yuan, a year-on-year increase of 27.2%; and net profit attributable to shareholders of the parent company of 6.852 billion yuan, a year-on-year increase of 146.41%. The three-digit profit growth far exceeded the revenue growth.

In the first half of this year, against the backdrop of repeated overseas epidemics and pressure on raw material prices, Haier Smart Home not only achieved strong growth in performance, but also performed better than the same period before the epidemic, with revenue increasing by 22.7% and net profit attributable to the parent increasing by 35.5% compared with the same period in 2019. Behind the unexpectedly high-speed growth and breakthroughs, Haier Smart Home's scene ecology and high-end layout are gradually entering the harvest period, which continuously contributes to its performance growth.

Advantage breakthrough: refrigerator and washing machine boom opens up new space, and the refrigerator industry is the only one with positive growth among the top five

In the first half of this year, Haier Smart Home's refrigerator and washing machine business continued its strong performance and continued to lead the white appliance industry. According to the financial report, in the first half of the year, Haier Smart Home's refrigerator division had revenue of 19.189 billion yuan, a year-on-year increase of 30.7%; among them, the Casarte brand grew by 52.9%, accounting for 16.0% of the revenue, an increase of 2.6 percentage points. The washing machine business achieved revenue of 12.958 billion yuan, an increase of 24.4% over the same period last year, outperforming the industry.

Haier Smart Home's refrigerator and washing machine business has always been ranked first in the industry, but behind the glory, whether Haier Smart Home's refrigerator and washing machine business still has room for growth has also become the focus of market attention.

The fact is that, although Haier Smart Home has been the No. 1 in the refrigerator and washing machine industry for many years, it has not rested on its laurels. Instead, it has continuously broken through its own growth bottleneck and explored new incremental space through scene ecological transformation and high-end layout. If the rapid growth of revenue is not enough to explain the problem, then the steady increase in market share is enough to prove that as long as the industry is not oversaturated, Haier Smart Home's growth ceiling is far from being reached.

In terms of refrigerators, in the first half of this year, Haier refrigerators continued to implement the seven major scenarios of "eating, buying, storing, cooking, washing, changing, mother and baby" around healthy eating and healthy kitchen life, stimulating new growth space. According to the CMM report, as of the first 33 weeks of 2021, Haier refrigerator brand's annual cumulative share was 41.7%, an increase of 1.9% over the same period last year, and it was the only brand in the industry's top 5 camp to achieve positive growth; online and offline refrigerator retail sales shares were 38.6% and 41.4%, respectively, up 3.4 percentage points and 1.7 percentage points year-on-year; among them, Casarte brand share reached 13.9%, up 2.6 percentage points year-on-year.

In terms of washing machines, Haier Smart Home proposed a scenario solution for washing and drying linkage, providing users with services for the entire life cycle of clothes washing, drying and care. Driven by this scenario solution, Haier Smart Home's washing machine market share has been further consolidated and improved, with online and offline retail sales shares reaching 40.6% and 42.2% respectively, an increase of 1.3 and 3 percentage points over the same period in 2020. According to the 34-week data from China Market Research, Haier washing machines have an annual cumulative share of 43.9%, ranking first in the industry. In the TOP20 best-selling list of the week, Haier washing machines occupied 17 seats, becoming the preferred washing machine brand for users.

The transformation of washing machines has also driven Haier's dryer business into a high-growth period. The financial report shows that during the reporting period, Haier's dryer sales totaled more than 120,000 units, a year-on-year increase of 227%. The offline annual cumulative share jumped to 31.9%, a year-on-year increase of 18.7 percentage points; the online share jumped to 27%, an increase of 11.9 percentage points year-on-year. According to the latest market data released by CMM, as of the 33rd week, Haier's dryer share accounted for 44.64%, a year-on-year increase of 26.75%, ranking first in the industry.

It is worth mentioning that in terms of water heaters, Haier Smart Home has long been ranked first in the industry. During the reporting period, Haier Smart Home's water heater business further improved its industry status and continued to expand its leading advantages. Its offline and online market shares were 27.1% and 30.9%, respectively, up 3.6 percentage points and 5.1 percentage points over the same period. In the high-end market, Casarte achieved an 87.6% increase in revenue and a further 4.2 percentage points in market share.

Weaknesses show strength: air conditioner share is the highest in 5 years, and high-end kitchen appliances have achieved remarkable results

As we all know, compared with the other two white goods giants, the air-conditioning sector has always been a relatively weak project for Haier Smart Home. However, where there is weakness, there is room for development. In the past two years, in order to boost the performance of the air-conditioning business, Haier Smart Home has focused on full-process operations, grasped channel changes on the market side, upgraded the experience to focus on high-end, and led the increase in scenarios to increase the share of air-conditioning business.

With a series of measures, Haier Smart Home's air conditioning shortcomings have been fully made up, and its potential is constantly being released. According to the financial report, in the first half of this year, Haier Smart Home's domestic air conditioning business revenue increased by 31.7% year-on-year. According to the 34th week data of China Market Research, Haier's air conditioning share reached 32.8%, ranking first in the industry. At present, Haier's air conditioning market share has achieved five consecutive years of growth, from 10.5% in 2016 to the current 18.3%, the highest in five years.

At the same time, Haier Smart Home's kitchen appliance business has also been continuously achieving new breakthroughs through the implementation of the Sanyi Bird scene brand and the layout of high-end differentiated products. During the reporting period, Haier Smart Home's kitchen appliance business revenue increased by 40.8% year-on-year. Among them, the high-end brand Casarte kitchen appliances achieved a year-on-year revenue growth of 164.5% in the first half of the year through the C6 "Galaxy" series of differentiated products, releasing new growth space.

It is not difficult to find that, whether it is breakthroughs in advantages or filling in shortcomings, the high growth of Haier Smart Home's full-line market share is inseparable from the scenario ecology and high-end layout. In the future, as the scenario-based and high-end layout enters a period of full harvest, the strong businesses of refrigerators, washing machines and heat pumps will continue to maintain an absolute advantage, and the second curve with air conditioning as the core will continue to achieve breakthroughs. Haier Smart Home's performance and market share will challenge itself again and again and set new highs.