First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Stock Code: 600690 Short Name: Qingdao Haier
First Quarter Report of 2018
Qingdao Haier Co., Ltd.
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Contents
I. Important Notice .......................................................................................................................3
II. Company Profile........................................................................................................................3
III. Important Events ...................................................................................................................... 9
IV. Appendix ....................................................................................................................................17
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
I. Important Notice
1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior management
of Qingdao Haier Co., Ltd. (“the Company”) hereby assure that the content set out in the
quarterly 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.
1.2 Information on absent director from meeting
Position of director Name of director absent Reason for the absence of
Name of proxy
absent from meeting from meeting director from meeting
Independent Director Dai Deming Personal affair Shi Tiantao
1.3 Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of the
Company) and Ying Ke (the person in charge of accounting department) hereby certify that the
financial statement set out in the quarterly report is true, accurate and complete.
1.4 This First Quarter Report of the Company has not been audited.
Note: This report and its abstract have been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
II. Company Profile
2.1 Key financial information
Unit and Currency: RMB
As of December 31 2017
As of March 31 2018 Change (%)
After adjustment Before adjustment
Total assets 154,529,514,068.17 151,463,110,707.63 151,463,110,707.63 2.02
Net assets attributable to
shareholders of the 33,875,351,365.63 32,215,515,201.45 32,215,515,201.45 5.15
Company
January-March 2017
January-March 2018 Change (%)
After adjustment Before adjustment
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Net cash flows from
1,990,934,744.45 5,809,584,002.50 5,809,318,531.26 -65.73
operating activities
January-March 2017
January-March 2018 Change (%)
After adjustment Before adjustment
Operating revenue 42,655,164,567.37 37,745,829,388.95 37,741,143,448.27 13.01
Net profit attributable to
shareholders of the 1,979,995,364.53 1,736,546,852.11 1,738,763,572.81 14.02
Company
Net profit after deduction
of non-recurring profit or
loss attributable to 1,761,919,417.70 1,461,794,756.85 1,461,794,756.85 20.53
shareholders of the
Company
Weighted average return Decreased by
5.99 6.33 6.38
on net assets (%) 0.34 pct pts
Basic earnings per share
0.325 0.285 0.285 14.04
(RMB per share)
Diluted earnings per
0.321 0.285 0.285 12.63
share (RMB per share)
Notes:
(1) Summary: ① In the first quarter of 2018, revenue from the Company’s original industry
(excluding GE Appliances, “GEA”) increased by 18.85%, among which the business of domestic white
appliances grew by more than 20%; Net profit attributable to shareholders of the Company increased by
14.7%; Net profit attributable to the shareholders of the Company after deduction of non-recurring profit
or loss increased by 22.7%. ② In the first quarter of 2018, revenue form GEA as measured in US
dollars increased by 5.9%, which translates into RMB10.8 billion, representing a year-on-year decrease
of 1.95%. The decrease was partly due to the significant appreciation of renminbi in the first quarter of
2018 as compared with the corresponding period of last year. Benefiting from the improvement of
operation efficiency and the release of synergies, GEA delivered improved profitability, with both net
profit attributable to shareholders of the Company and net profit after deduction of non-recurring profit
or loss attributable to shareholders of the Company increasing by more than 10%.
(2) Domestic market: ① In 2018, revenue of domestic home appliance business increased by
21.9%, representing the sixth consecutive quarter in which a growth of more than 20% was recorded. ②
Revenue from Casarte increased by 50%; Refrigerators and washing machines under the Casarte brand
captured a market share of 36.5% and 70.5% in the price range of over RMB10,000, representing an
increase of 6.3 and 4.3 pct. pts, respectively. ③ The market share continued to rise across the whole
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
product portfolio. According to CMM, retail sales of refrigerators, washing machines, air conditioners,
water heaters, hoods and stoves rose by 4.05, 3.80, 0.87, 1.47, 0.87 and 0.93 pct. pts, respectively, as
compared with the corresponding period of last year. Refrigerators and washing machines maintained its
top position in the industry and continued to expand the lead. The market share in term of retail sales for
refrigerators and washing machines reached 34.56% and 32.20%, respectively, representing 3.08 and
1.76 times of that of the runner-up brand, respectively. ④ The air-conditioning business has been
delivering remarkable results in terms of technological and product innovation over the years. According
to CMM, the average retail price of air-conditioners of the Company in the first quarter of 2018 was
RMB4,486, an increase of 9.70% as compared with the corresponding period of last year, ranking No.1
among domestic brands in terms of average price. According to ChinaIOL.com, the air-conditioners
export volume of the Company increased by 48.08% in the first quarter of 2018, higher than the industry
growth of 4.39%.
(3) Overseas markets: ① In the first quarter of 2018, GEA achieved a growth of 5.9% in revenue
as measured in US dollar, far exceeding the industry growth of 2.6% in the North American market
(Source: Stevenson); GEA’s overall market share increased by 1.5 pct. pts as compared with the
corresponding period of last year. ② The business was focused on high-end brand in each region,
enhanced product and marketing competitiveness, and promoted healthy business development. For
example, revenue from the South Asian market grew by more than 40%, while revenue from the
European market grew by more than 30%.
(4) During the reporting period, the Company was committed to building a smart home
community in the era of the Internet of Things to create an ecological platform in a collaborative
way. Haier Smart Home is comprised of seven ecological circles, including smart kitchen, smart
bathroom, smart living room, smart bedroom, smart washing and care, smart air, and smart security,
providing users with more than 200 kinds of full-scene smart living experiences. Building on the
Dashunguang community interaction cloud platform, the SmartLife cloud platform and the COSMO Plat
industrial cloud platform, we are dedicated to meeting the personalized needs of users for customized
better life and exploring the business model in the era of the Internet of Things.
① Formation of touchpoint network for the integration of three kinds of stores: Leveraging
on the Dashunguang community interaction cloud platform, we have achieved the organic integration of
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
“experience stores, online stores and micro-stores”, established the community interaction integrity
system, and built the distribution of the touchpoint network comprising 1.13 million touchpoints,
including 20,000 offline O+O experience stores, 443 online stores, 160,000 smart cloud stores from
communities to villages, 800,000 million micro-stores, and 150,000 million urban and rural
housekeepers. The network builds linkage among hundreds of millions of user resources, tens of
millions of lifetime users, bringing continuous iteration of products and resources through continuous
interaction between the network of touchpoints with users. For example, the Yunxi (云熙) series
washing machines achieved three rounds of rapid iterations and growth for each launch through the
interaction with users on Dashunguang platform. In the first quarter of 2018, the platform achieved a
turnover of RMB2.87 billion, representing an increase of 109%.
② Continued iteration of user interaction experience, formation of the common interest
group and realization of a win-win situation: Realization of large-scale customized value added for
users based on the COSMOPlat platform; promoted cross-industry, cross-regional replication, and
enabled transformation and upgrading of Small and Medium Enterprises. Currently the platform serves
11 regions and 12 major industries. For example, taking advantage of its large-scale customization
model, the Recreation Vehicle (“RV”) platform business based on the COSMOPlat platform services
empowered RV companies to transform and change from RV manufacturing companies to the “smart
ecological platform for mobile homes”, by integrating with the Haier smart home ecosystem platform. In
March 2018, the platform revenue of COSMOPlat amounted to RMB566 million (there was no such
business in the corresponding period of last year).
③ Based on the smart home core, seven ecosystems were created involving clothing, food,
living and entertainment, which realized the value of the ecosystem with the formation of
experience scenes through user interaction: Smart active service was delivered based on the
combination of big data of smart home appliances (internet appliances) and small data of users, and the
scene-based business model was expanded through the upgrade of operational experience and control of
smart home appliances, construction of an IOT + AI basic technology platform, while building channels
for third-party ecological resources. For example, through the creation of a college laundry platform
across the country, the “smart micro-washing” within smart washing and care ecological circle has
linked 1,265 premises, such as higher education institutions, apartments and hotels, over 9.65 million
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
college students, and brought in ecological revenue through collaborative creation in the ecosystems.
Meanwhile, the community washing model also achieved rapid growth in various communities across
Japan. In 2017, a total of 1,776 stores participated in the program and over 6.35 million community
users were served. The community laundry model has been copied to Southeast Asia and has begun to
replicate in overseas regions such as the United States. In the first quarter of 2018, revenue of the smart
home platform amounted RMB54 million, representing an increase of 140% as compared with the
corresponding period of last year.
Non-recurring Profit or Loss Items and Amount
√Applicable □ Not Applicable
Unit and Currency: RMB
Amount of
Items
current period
Losses and profits from disposal of non-current assets 476,430.28
Government grants included in current profit or loss, except that closely related to the normal
operating business, complied with requirements of the national policies, continued to be 59,855,085.10
granted with the amount and quantity determined under certain standards
In addition to the effective hedging business related to the normal operations of the
Company, profit or loss of changes in fair value arising from holding of trading financial
97,539,123.27
assets and trading financial liabilities, as well as investment gain realized from disposal of
trading financial assets, trading financial liabilities and financial assets available for sale
Other non-operating income and expenses except the aforementioned items 103,250,405.83
Minority interests (after tax) -32,456,045.44
Income tax -10,589,052.21
Total 218,075,946.83
2.2 Table of top ten shareholders, top ten common shareholders (or the shareholders without selling
restrictions) by the end of the reporting period
Unit: Share
Total number of shareholders 202,628
Shareholdings of top ten shareholders
Number of Status of
Number of shares shares
Perce Nature
Name of shares held held pledged
ntage of
Shareholder (full name) at the end of with or frozen
(%) shareholder
the period selling Status of
Number
restriction shares
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Haier Electric Domestic
Appliances International 1,258,684,824 20.64 Nil non-state-owne
Co., Ltd. d legal entity
Domestic
Haier Group Corporation 1,072,610,764 17.59 Nil non-state-owne
d legal entity
Hong Kong Securities
450,907,644 7.40 Nil Unknown
Clearing Co., Ltd.
KKR HOME Foreign legal
362,089,988 5.94 Nil
INVESTMENT S.A R.L. entity
GIC PRIVATE Foreign legal
285,971,753 4.69 Nil
LIMITED entity
China Securities Finance
248,679,560 4.08 Nil Unknown
Corporation Limited
Qingdao Haier Venture Domestic
& Investment non-state-owne
Information Co., Ltd. (青 172,252,560 2.83 Nil d legal entity
岛海尔创业投资咨询有
限公司)
National social security Unknown
101,888,830 1.67 Nil
fund, Portfolio 104
Central Huijin Asset Unknown
69,539,900 1.14 Nil
Management Ltd.
National social security Unknown
48,000,449 0.79 Nil
fund, Portfolio 103
Shareholdings of top ten shareholders not subject to selling restrictions
Number of Class and number of shares
tradable
Name of shareholder shares without
Class Number
selling
restrictions
Haier Electric Appliances International Co.,
1,258,684,824 RMB ordinary 1,258,684,824
Ltd.
Haier Group Corporation 1,072,610,764 RMB ordinary 1,072,610,764
Hong Kong Securities Clearing Co., Ltd. 450,907,644 RMB ordinary 450,907,644
KKR HOME INVESTMENT S.A R.L. 362,089,988 RMB ordinary 362,089,988
GIC PRIVATE LIMITED 285,971,753 RMB ordinary 285,971,753
China Securities Finance Corporation
248,679,560 RMB ordinary 248,679,560
Limited
Qingdao Haier Venture & Investment
Information Co., Ltd. (青岛海尔创业投资 172,252,560 RMB ordinary 172,252,560
咨询有限公司)
National social security fund, Portfolio 104 101,888,830 RMB ordinary 101,888,830
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Central Huijin Asset Management Ltd. 69,539,900 RMB ordinary 69,539,900
National social security fund, Portfolio 103 48,000,449 RMB ordinary 48,000,449
Related-parties or parties acting in concert (1) Haier Electric Appliances International Co., Ltd. is a
among the aforesaid shareholders holding subsidiary of Haier Group Corporation. Haier Group
Corporation holds 51.20% of its equity. Qingdao Haier
Venture & Investment Information Co., Ltd. (青岛海尔创业
投资咨询有限公司) is a party acting in concert with Haier
Group Corporation;
(2) The Company is not aware of the existence of any
connections of other shareholders.
Description of preferential shareholders N/A
with restoration of voting rights and their
shareholdings
2.3 Total number of preferential shareholders, top ten preferential shareholders and top ten holders
of preference shares without selling restriction by the end of the reporting period
□Applicable √ Not Applicable
III. Significant Events
3.1 The changes in the key financial results of this reporting period and the reasons for such
changes
√Applicable □Not Applicable
1) Financial assets measured at fair value and its changes of which included in current profit or
loss decreased by 63.90% from the beginning of the year, which was mainly attributable to the influence
of change in fair value of derivative financial instruments such as foreign exchange contracts;
2) Other non-current assets increased by 48.27% from the beginning of the year, which was
mainly attributable to the change in fair value of forward foreign exchange contracts held by the
Company as at the end of the period with a maturity date of more than one year;
3) Financial liabilities measured at fair value through profit or loss for the period increased by
798.60% from the beginning of the year, which was mainly attributable to changes in fair value of
derivative financial instruments such as foreign exchange contracts for the period;
4) Taxes payable increased by 34.95% from the beginning of the year, which was mainly due to
the increase in taxes that have been accrued by the Company;
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
5) Interest payable increased by 148.43% from the beginning of the year, which was mainly due
to the increase in accrued unpaid interest;
6) Deferred income tax liabilities decreased by 32.71% from the beginning of the year, which
was mainly due to the decrease in the reserve of income tax of foreign companies due to the actual
dividends distributed by the subsidiaries of the Company.
7) Other comprehensive income decreased by 675.00% from the beginning of the year, which
was mainly due to the decrease in the share of other comprehensive income that will be reclassified into
profit or loss and the change in foreign currency translation differences;
8) Financial expenses increased by 108.15% as compared with the corresponding period of last
year, which was mainly due to the increase in exchange losses for the period as compared with the
corresponding period of last year;
9) Revenue from changes in fair value increased by 30.81% as compared with the corresponding
period of last year, which was mainly due to changes in fair value of derivative financial instruments
such as forward foreign exchange;
10) Gain on disposal of assets increased by 121.30% as compared with the corresponding period
of last year, which was mainly due to the decrease in expenses related to the disposal of recurrent assets
for the period;
11) Other income increased by 36.97% as compared with the corresponding period of last year,
which was mainly due to the increase in government grants related to daily operations and included in
current profit or loss;
12) Non-operating expenses decreased by 84.55% as compared with the corresponding period of
last year, which was mainly due to the scrapping of some fixed assets in the corresponding period of last
year and fewer occurrences for the period;
13) Net cash flows from operating activities decreased by 65.73% as compared with the
corresponding period of last year, which was mainly due to the higher net cash flows from operating
activities during the corresponding period of last year, which resulted in a higher base; net cash flows
from operating activities for the period is in line with the profitability and the target has been achieved;
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
14) Net cash flows from investing activities decreased by 33.94% as compared with the
corresponding period of last year, which was mainly due to the increase in expenditures for the
construction of plants and warehouses for the period;
15) Net cash flows from financing activities decreased by 76.17% from the same period of last
year, which was mainly due to the increase in expenses in respect of repayment of borrowings for the
period.
3.2 Note and analysis on the progress of significant events and their impact and solution
√ Applicable □Not Applicable
(1) As of the end of the reporting period, the external guarantees of the Company and its
subsidiaries are all guarantees among the Company and its subsidiaries, and the period-end balance of
the external guarantees amounted to RMB28.38 billion, representing 88.3% of net assets and 18.7% of
the total assets of the Company for the latest period.
(2) As of the end of the reporting period, the balance of the Company’s transactions of derivative
foreign exchange products amounted to approximately US$3.58 billion.
(3) As of the end of the reporting period, the amount of entrusted wealth management of the
Company was approximately RMB1.98 billion.
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
3.3 Overdue commitments in the reporting period or ongoing at the period-end.
□Applicable √Not applicable
During the reporting period, the Company has no undertakings that have past due but not performed.
The undertakings made by the actual controlling shareholders, shareholders, related parties, purchasers and the Company and others during or up to the
reporting period are as follows:
Whether Whether
it has a it is
Coven Time and deadline performed
Background Type Content
anter term for in a timely
performa and strict
nce way
During the period from September 2006 to May 2007, the Company issued
shares to Haier Group Corporation (“Haier Group”) to purchase the controlling
Eliminate equity in its four subsidiaries, namely Qingdao Haier Air-Conditioner Electronics
Undertaking
the Co., Ltd. (青岛海尔空调电子有限公司), Hefei Haier Air-conditioning Co.,
related to Haier
property Limited (合肥海尔空调器有限公司), Wuhan Haier Electronics Co., Ltd. (武汉 27 September
significant Group
right 海尔电器股份有限公司), Guizhou Haier Electronics Co., Ltd. (贵州海尔电器 2006, long YES YES
assets Corpor
defects in 有限公司). With regard to the land and property required in the operation of term
reorganizati ation
land and Qingdao Haier Air-Conditioner Electronics Co., Ltd. (青岛海尔空调电子有限
on
etc. 公司) , Hefei Haier Air-conditioning Co., Limited (合肥海尔空调器有限公司),
Wuhan Haier Electronics Co., Ltd. (武汉海尔电器股份有限公司) (the
“Covenantees”), Haier Group made an undertaking (the “2006 Undertaking”).
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
According to the content of 2006 Undertaking and current condition of each
Covenantee, Haier Group will constantly assure that Covenantees will lease the
land and property owned by Haier Group for free. Haier Group will make
compensation in the event that the Covenantees suffer loss due to the
unavailability of such land and property.
Haier Group Corporation undertakes that it will assure Qingdao Haier and its
subsidiaries of the constant, stable and unobstructed use of the leased property. In
the event that Qingdao Haier or any of its subsidiaries suffers any economic loss
due to the fact that leased property has no relevant ownership certificate, Haier
Group Corporation will make compensation to impaired party in a timely and
sufficient way and take all reasonable and practicable measures to support the
impaired party to recover to normal operation before the occurrence of loss.
Upon the expiration of relevant leasing period, Haier Group Corporation will
Eliminate
grant or take practicable measures to assure Qingdao Haier and its subsidiaries of
the
Haier priority to continue to lease the property at a price not higher than the rent in
Undertaking property 24 December
Group comparable market at that time. Haier Group Corporation will assure Qingdao
related to right 2013, long YES YES
Corpor Haier and its subsidiaries of the constant, stable, free and unobstructed use of
refinancing defects in term
ation self-built property and land of the Group. In the event that Qingdao Haier or any
land and
of its subsidiaries fails to continue to use self-built property according to its own
etc.
will or in original way due to the fact that self-built property has no relevant
ownership certificate, Haier Group Corporation will take all reasonable and
practicable measures to eliminate obstruction and impact, or will support
Qingdao Haier or its affected subsidiary to obtain alternative property as soon as
possible, if Haier Group Corporation anticipates it is unable to cope with or
eliminate the external obstruction and impact with its reasonable effort. For
details, please refer to the Announcement of Qingdao Haier Co., Ltd. on the
Formation, Current Situation of the Defective Property, the Influence on
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Operation of Issuer Caused by Uncertainty of Ownership, Solution for the Defect
and Guarantee Measures (L 2014-005) published by the Company on the four
major securities newspapers and the website of Shanghai Stock Exchange on 29
March 2014.
The Company undertakes that it will eliminate the property defects of the
Eliminate Company and main subsidiaries within five years with reasonable business effort
the since 24 December 2013, so as to achieve the legality and compliance of the
Qingda
property Company and main subsidiaries in terms of land and property. For details, please 24 December
o Haier
right refer to the Announcement of Qingdao Haier Co., Ltd. on the Formation, Current 2013, five YES YES
Co.,
defects in Situation of the Defective Property, the Influence on Operation of Issuer Caused years
Ltd.
land and by Uncertainty of Ownership, Solution for the Defect and Guarantee Measures (L
etc. 2014-005) published by the Company on the four major securities newspapers
and the website of Shanghai Stock Exchange on 29 March 2014.
Inject the assets of Fisher&Paykel to the Company or dispose such assets through
Haier other ways according to the requirements of the domestic supervision before June
Other May
Asset Group 2020. For more details, please refer to the Announcement of Qingdao Haier Co.,
undertaking 2015-June YES YES
injection Corpor Ltd. on the Changes of Funding Commitment of Haier Group Corporation (L
s
ation 2015-015) published on the four major securities newspapers and the website of
Shanghai Stock Exchange on 26 May 2015.
Inject the assets of Haier Photoelectric to the Company or dispose such assets
Haier through other ways according to the requirements of the domestic supervision
Other December
Asset Group before June 2020. For more details, please refer to the Announcement of Qingdao
undertaking 2015-June YES YES
injection Corpor Haier Co., Ltd. on the Changes of Funding Commitment of Haier Group
s
ation Corporation (L 2015-063) published on the four major securities newspapers and
the website of Shanghai Stock Exchange on 23 December 2015.
Other Profit Haier In December 2015 and January 2016, the meeting of the Board of Directors and December
YES YES
undertaking forecast Group general meeting of the shareholders considered and approved the matters in 2015-
14 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
s and Corpor relation to the acquisition of minority equity interest of Mitsubishi Heavy December
compensat ation Industries Haier and Carrier Refrigeration Equipment held by Haier Group. The
ion Company signed the Profit Compensation Agreement with Haier Group to
forecast the profits achieved by the aforementioned two companies in 2015 -
2018. If the profits are not reached during the commitment period, the difference
part will be made up to the Company by Haier Group in cash. For more details,
please refer to the Announcement of Qingdao Haier Co., Ltd. on the Acquisition
of Equity in Sino-foreign Joint Venture Held by Haier Group Corporation and
Related-party Transaction (L 2015-062) published on the four major securities
newspapers and the website of Shanghai Stock Exchange on 23 December 2015.
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
3.4 Warning and explanation on reasons for accumulated net profit for the period from the
beginning of the year to the end of the next reporting period to be at a loss or expected to have
material change as compared to those of the same period of last year.
Applicable √Not Applicable
Name of Company Qingdao Haier Co., Ltd.
Legal representatives Liang Haishan
Date 24 April 2018
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
IV. Appendix
4.1 Financial Statements
Consolidated Balance Sheet
31 March 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Closing balance Opening balance
Current Assets:
Cash 34,072,725,366.99 35,177,276,903.91
Clearing settlement funds
Placements with banks
Financial assets measured at fair
value and changes of which included in 33,897,429.51 20,681,695.50
current profit and loss
Derivative financial assets
Notes receivables 12,420,131,506.45 13,033,083,520.99
Accounts receivables 15,833,303,930.11 12,448,004,833.06
Prepayments 603,350,177.16 590,693,658.21
Premiums receivable
Reinsurance accounts receivables
Reinsurance contract reserves
receivable
Interests receivables 255,716,384.55 203,637,543.83
Dividends receivables 4,524,472.84 4,524,472.84
Other receivables 901,313,953.98 961,263,981.87
Financial assets purchased under
resale agreements
Inventories 22,850,509,586.29 21,503,524,800.18
Held for sale assets
Non-current assets due within one
year
Other current assets 4,519,926,995.06 4,389,760,018.83
Total current assets 91,495,399,802.94 88,332,451,429.22
Non-current assets:
Loans and advances granted
Available-for-sale financial assets 1,378,724,861.35 1,415,354,307.82
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First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Held-to-maturity investments
Long-term receivables
Long-term equity investments 13,247,491,506.51 12,992,767,394.28
Investment properties 30,313,843.60 31,214,015.99
Fixed assets 15,588,932,136.22 16,017,523,376.11
Construction in progress 1,885,717,211.24 1,530,390,130.25
Construction materials
Disposals of fixed assets 55,808,808.81 55,808,808.81
Biological assets for production
Fuel assets
Intangible assets 6,759,264,347.28 7,005,186,296.28
Development expenses 1,007,296,297.14 966,051,333.81
Goodwill 19,110,949,048.42 19,843,317,357.30
Long-term amortization 152,728,496.68 123,768,671.33
expenditures
Deferred income tax assets 1,957,535,076.97 1,895,213,404.67
Other non-current assets 1,859,352,631.01 1,254,064,181.76
Total non-current assets 63,034,114,265.23 63,130,659,278.41
Total assets 154,529,514,068.17 151,463,110,707.63
Current liabilities:
Short-term borrowings 11,114,536,392.33 10,878,580,275.18
Borrowings from central bank
Absorbing deposit and deposit in
inter-bank market
Placements from banks
Financial liabilities measured at 22,685,707.54 2,524,569.45
fair value and changes of which
included in current profit and loss
Derivative financial liabilities
Notes payable 18,404,685,210.58 16,378,699,659.77
Accounts payables 29,341,571,372.43 25,654,013,649.96
Payments received in advance 4,457,946,217.94 5,833,552,815.05
Disposal of repurchased financial
assets
Handling charges and commissions
payable
Staff remuneration payable 1,841,561,578.16 2,349,189,122.90
Taxes payable 2,576,569,157.76 1,909,260,527.42
Interests payable 143,235,601.79 57,656,458.79
Dividends payable 158,965,235.09 153,756,315.64
Other payables 9,970,601,666.79 10,805,162,943.62
Reinsurance accounts payable
18 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Deposits for insurance contracts
Customer deposits for trading in
securities
Amounts due to issuer for
securities underwriting
Held for sale liabilities
Non-current liabilities due within 2,330,383,347.39 2,850,325,000.00
one year
Other current liabilities 27,313,282.12 21,729,198.70
Total current liabilities 80,390,054,769.92 76,894,450,536.48
Non-current liabilities:
Long-term borrowings 13,613,417,306.10 16,036,492,809.81
Debentures payable 5,995,671,346.64 6,211,088,362.68
Including: preference shares
perpetual bonds
Long-term payable 102,833,569.29 106,020,029.74
Long-term payables for staff’s 884,278,301.73 898,160,742.53
remuneration
Special payable
Estimated liabilities 2,631,779,719.51 2,619,699,551.41
Deferred income 525,458,976.51 497,141,088.72
Deferred income tax liabilities 187,823,829.18 279,114,620.35
Other non-current liabilities 1,344,958,187.97 1,170,936,828.55
Total non-current liabilities 25,286,221,236.93 27,818,654,033.79
Total liabilities 105,676,276,006.85 104,713,104,570.27
Owners’ equity
Share capital 6,097,402,727.00 6,097,402,727.00
Other equity instruments 431,424,524.07 431,424,524.07
Including: preference shares
perpetual bonds
Capital reserve 827,598,495.52 826,883,093.84
Less: Treasury stock
Other comprehensive income -281,820,717.97 -36,363,809.96
Special reserve
Surplus reserve 2,103,057,782.41 2,103,057,782.41
General risk provisions
Undistributed profits 24,697,688,554.60 22,793,110,884.09
Total equity attributable to owners 33,875,351,365.63 32,215,515,201.45
of the parent company
Minority interests 14,977,886,695.69 14,534,490,935.91
Total owners’ equity 48,853,238,061.32 46,750,006,137.36
Total liabilities and owners’ 154,529,514,068.17 151,463,110,707.63
19 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
equities
Legal representative: Chief accountant: Person in charge of accounting department:
Liang Haishan Gong Wei Ying Ke
Balance Sheet of the Parent Company
31 March 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Closing balance Opening balance
Current Assets:
Cash 3,172,463,996.76 2,070,527,802.97
Financial assets measured at fair value
and changes of which included in current
profit and loss
Derivative financial assets
Notes receivables
Accounts receivables 334,140,723.95 288,499,726.07
Prepayments 73,048,606.66 20,000,000.00
Interests receivables 248,729,039.22 220,157,282.75
Dividends receivables 958,851,045.94 970,851,045.94
Other receivables 350,096,477.76 15,895,048.43
Inventories 108,306,782.28 89,650,514.91
Held for sale assets
Non-current assets due within one
year
Other current assets 115,255,086.18 87,165,597.70
Total current assets 5,360,891,758.75 3,762,747,018.77
Non-current assets:
Available-for-sale financial assets 5,690,636.76 5,818,587.80
Held-to-maturity investments
Long-term receivables 8,600,000,000.00 8,600,000,000.00
Long-term equity investments 23,626,271,572.17 23,581,254,928.08
Investment properties
Fixed assets 115,025,129.81 118,553,830.32
Construction in progress 16,078,100.17 13,594,976.50
Construction materials
Disposals of fixed assets
Biological assets for production
20 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Fuel assets
Intangible assets 14,422,217.09 14,601,582.38
Development expenses
Goodwill
Long-term amortization expenditures 5,740,180.74
Deferred income tax assets 106,347,777.99 106,347,777.99
Other non-current assets 813,804.30
Total non-current assets 32,490,389,419.03 32,440,171,683.07
Total assets 37,851,281,177.78 36,202,918,701.84
Current liabilities:
Short-term borrowings
Financial liabilities measured at fair value
and changes of which included in current
profit and loss
Derivative financial liabilities
Notes payable
Accounts payables 294,178,194.49 310,387,267.67
Payments received in advance 2,913,185,303.02 2,465,908,721.32
Staff remuneration payable 15,709,604.82 51,533,384.22
Taxes payable 64,085,749.63 62,255,803.87
Interests payable 67,012,725.74 156,447,167.63
Dividends payable
Other payables 22,400,064,899.25 21,112,143,360.73
Held for sale liabilities
Non-current liabilities due within one
year
Other current liabilities 14,083,470.32 12,498,265.43
Total current liabilities 25,768,319,947.27 24,171,173,970.87
Non-current liabilities:
Long-term borrowings
Debentures payable
Including: preference shares
perpetual bonds
Long-term payable 20,000,000.00 20,000,000.00
Long-term payables for staff’s
remuneration
Special payable
Estimated liabilities
Deferred income 37,700,000.00 37,700,000.00
Deferred income tax liabilities 36,133,622.68 36,152,815.34
Other non-current liabilities
Total non-current liabilities 93,833,622.68 93,852,815.34
21 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Total liabilities 25,862,153,569.95 24,265,026,786.21
Owners’ equity：
Share capital 6,097,402,727.00 6,097,402,727.00
Other equity instruments
Including: preference shares
perpetual bonds
Capital reserve 2,317,907,947.71 2,317,907,947.71
Less: Treasury stock
Other comprehensive income -20,437,041.80 -43,234,737.77
Special reserve
Surplus reserve 1,437,313,649.93 1,437,313,649.93
Undistributed profits 2,156,940,324.99 2,128,502,328.76
Total owners’ equity 11,989,127,607.83 11,937,891,915.63
Total liabilities and owners’ equities 37,851,281,177.78 36,202,918,701.84
Legal representative: Chief accountant: Person in charge of accounting department:
Liang Haishan Gong Wei Ying Ke
Consolidated Income Statement
January-March 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
I. Total operating revenue 42,655,164,567.37 37,745,829,388.95
Including: Operating revenue 42,655,164,567.37 37,745,829,388.95
Interest income
Insurance premiums earned
Fee and commission income
II. Total cost 40,388,152,695.05 35,834,083,962.03
Including: Cost of sales 30,449,298,701.96 26,380,596,377.85
Interest expenses
Fee and commission expenses
Insurance withdrawal payment
Net payment from indemnity
Net provisions for insurance contract
Insurance policy dividend paid
Reinsurance cost
Business taxes and surcharge 223,258,372.32 178,393,139.98
Selling expenses 6,254,887,373.85 6,683,104,490.92
Administrative expenses 2,746,972,301.60 2,143,172,877.49
22 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Financial expenses 468,944,062.41 225,289,791.40
Loss in assets impairment 244,791,882.91 223,527,284.39
Add: Income from change in fair value (losses
207,293,485.79 158,467,287.04
are represented by “-”)
Investment income (losses are represented
242,480,840.14 319,933,556.06
by “-”)
Including: investment income of
associates and joint ventures
Gains on disposal of assets (losses are
429,548.74 -2,016,573.57
represented by “-”)
Exchange gain (losses are represented by
“-”)
Other incomes 106,214,641.01 77,545,764.01
III. Operating profit (losses are represented by
2,823,430,388.00 2,465,675,460.46
“-”)
Add: Non-operating income 111,793,323.64 144,996,386.52
Less: Non-operating expenses 8,496,036.27 55,000,489.53
IV. Total profit (total losses are represented by
2,926,727,675.37 2,555,671,357.45
“-”)
Less: Income tax expense 458,014,171.70 407,958,955.60
V. Net profit (net losses are represented by “-”) 2,468,713,503.67 2,147,712,401.85
(I) Classification by continuous operation
1.Net profit from continuous operation (net
2,468,713,503.67 2,147,712,401.85
losses are represented by “-”)
2. Net profit from discontinuous operation
(net losses are represented by “-”)
(II)Classification by ownership of the equity
1.Profit or loss of minority shareholders 488,718,139.14 411,165,549.74
2.Net profit attributable to owners of the
1,979,995,364.53 1,736,546,852.11
Company
VI. Post tax other comprehensive income -331,219,394.34 466,905.94
Post tax other comprehensive income
-285,717,414.13 17,502,928.86
attributable to owners of the Company
(I) Other comprehensive income that will not
-1,280,674.80 -7,751.33
be reclassified subsequently to profit or loss
1. Changes in net liabilities or net assets
arising from re-measurement of defined benefit -1,280,674.80 -7,751.33
plans
2. Share of other comprehensive income
of investees that cannot be reclassified to profit or
loss under equity method
(II) Other comprehensive income to be
-284,436,739.33 17,510,680.19
reclassified subsequently to profit or loss
23 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
1. Share of other comprehensive income
of investees that will be reclassified subsequently -42,701,390.85 -40,488,326.71
to profit or loss under equity method
2. Gain or loss from change in fair value
-678,068.23 -499,456.91
of available-for-sale financial assets
3. Gain or loss arising from
reclassification from held-to-maturity investments
to available-for-sale financial assets
4. Gains or losses on effective cash flow
14,114,618.65 -1,795,233.82
hedging
5. Exchange differences on translation of
financial statements denominated in foreign -255,171,898.90 60,293,697.63
currencies
6. Other
Other comprehensive income attributable to
-45,501,980.21 -17,036,022.92
minority shareholders, net of tax
VII. Total comprehensive income 2,137,494,109.33 2,148,179,307.79
Attributable to owners of the Company 1,694,277,950.40 1,754,049,780.97
Attributable to non-controlling interests 443,216,158.93 394,129,526.82
VIII. Earnings per share:
(I) Basic earnings per share (RMB/share) 0.325 0.285
(II) Diluted earnings per share (RMB/share) 0.321 0.285
Legal representative: Chief accountant: Person in charge of accounting department:
Liang Haishan Gong Wei Ying Ke
Income Statement of the Parent Company
January-March 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
I. Operating revenue 743,844,065.67 813,013,367.46
Less: Operation cost 533,278,383.46 594,504,109.45
Taxes and surcharge 5,402,608.47 6,561,826.29
Selling expenses 68,121,527.59 52,682,906.16
Administrative expenses 108,216,752.39 127,936,222.24
Financial expenses 25,428,042.84 18,751,061.43
Loss in assets impairment 10,058,187.90 486,242.29
Add: Income from change in fair value (losses
are represented by “-”)
Investment income (losses are represented
50,428,218.53 42,029,840.49
by “-”)
24 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Including: Investment income of
associates and joint ventures
Gains on disposal of assets (losses are
represented by “-”)
Other incomes 5,969,287.05
II. Operating profit (losses are represented by “-”) 49,736,068.60 54,120,840.09
Add: Non-operating income 8,370,547.68 5,795,459.39
Less: Non-operating expenses 233,919.53
III. Total Profit (losses are represented by “-”) 57,872,696.75 59,916,299.48
Less: Income tax expense 1,116,671.73 2,669,218.85
IV. Net Profit (net losses are represented by “-”) 56,756,025.02 57,247,080.63
(I) Net profit from continuous operation (net
56,756,025.02 57,247,080.63
losses are represented by “-”)
(II) Net profit from discontinuous operation
(net losses are represented by “-”)
V. Post tax other comprehensive income 7,680,578.08 -11,481,154.32
(I) Other comprehensive income will not be
reclassified subsequently to profit or loss
1. Changes in net liabilities or net assets arising
from re-measurement of defined benefit plans
2. Share of other comprehensive income of
investees that cannot be reclassified to profit or
loss under equity method
(II) Other comprehensive income to be
7,680,578.08 -11,481,154.32
reclassified subsequently to profit or loss
1. Share of other comprehensive income of
investees that will be reclassified subsequently to 7,789,336.46 -11,874,318.49
profit or loss under equity method
2. Gain or loss from change in fair value of
-108,758.38 393,164.17
available-for-sale financial assets
3. Gain or loss arising from reclassification
from held-to-maturity investments to
available-for-sale financial assets
4. Gains or losses on effective cash flow
hedging
5. Exchange differences on translation of
financial statements denominated in foreign
currencies
6. Other
VI. Total comprehensive income 64,436,603.10 45,765,926.31
VII. Earnings per share:
(I) Basic earnings per share (RMB/ share)
(II) Diluted earnings per share (RMB/share)
25 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Legal representative: Chief accountant: Person in charge of accounting department:
Liang Haishan Gong Wei Ying Ke
Consolidated Cash Flow Statement
January-March 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
I. Cash flows from operating activities:
Cash received from sales of goods and
39,294,461,022.85 42,040,544,736.74
rendering of services
Net increase in customer and interbank
deposits
Net increase in borrowing from PBOC
Net cash increase in borrowing from
other financial institutes
Cash received from premiums under
original insurance contract
Net cash received from reinsurance
Business
Net increase in deposits of policy holders
and investment
Net increase from the disposal of
financial assets measured at fair value and
changes of which included in current
profit and loss
Cash paid for interest, bank charges and
Commissions
Net increase in cash borrowed
Net increase in cash received from
repurchase operation
Refunds of taxes 242,113,942.09 305,118,454.78
Cash received from other related
244,653,473.68 368,100,490.83
operating activities
Sub-total of cash inflows from
39,781,228,438.62 42,713,763,682.35
operating activities
Cash paid on purchase of goods and
26,876,400,215.94 27,222,452,573.86
services
26 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Net increase in loans and advances
Net increase in deposits in PBOC and
interbank
Cash paid for compensation payments
under original insurance contract
Cash paid for interest, bank charges and
commissions
Cash paid for insurance policy dividend
Cash paid to and on behalf of employees 4,552,161,808.21 4,836,611,393.11
Cash paid for all types of taxes 2,146,684,682.86 1,619,809,910.52
Cash paid to other operation related
4,215,046,987.16 3,225,305,802.36
activities
Sub-total of cash outflows from
37,790,293,694.17 36,904,179,679.85
operating activities
Net cash flows from operating
1,990,934,744.45 5,809,584,002.50
activities
II. Cash flows from investing activities:
Cash received from disposal of
12,305,650.00 7,431,782.63
investments
Cash received from return on investments 112,610,536.61 64,142,955.22
Net cash received from the disposal of
fixed assets, intangible assets and other 38,778,216.12 198,536.43
long term assets
Net cash received from disposal of
subsidiaries and other operating entities
Cash received from other investment
67,249,789.10
related activities
Sub-total of cash inflows from
230,944,191.83 71,773,274.28
investing activities
Cash paid on purchase of fixed assets,
intangible assets and other long term 1,391,128,737.25 727,144,871.20
assets
Cash paid for investments 289,116,220.14 349,845,557.45
Net increase in secured loans
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment related
15,000.00 76,823,787.07
activities
Sub-total of cash outflows from
1,680,259,957.39 1,153,814,215.72
investing activities
Net cash flows from investing
-1,449,315,765.56 -1,082,040,941.44
activities
III. Cash flows from financing activities:
27 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Cash received from investment 8,278,135.66 22,247,648.00
Including: Cash received by
subsidiaries from minority shareholders’
investment
Cash received from borrowings 3,589,764,080.03 10,375,831,949.73
Cash received from issuing bonds
Cash received from other financing
58,950,000.00
related activities
Sub-total of cash inflows from
3,656,992,215.69 10,398,079,597.73
financing activities
Cash paid on repayment of borrowings 5,291,464,063.74 11,291,851,345.83
Cash paid on distribution of dividends,
38,225,632.87 74,495,510.24
profits, or interest expenses
Including: Dividend, profit paid to
minority shareholders by subsidiaries
Cash paid on other financing activities 62,515,783.81 16,702,520.08
Sub-total of cash outflows from
5,392,205,480.42 11,383,049,376.15
financing activities
Net cash flows from financing
-1,735,213,264.73 -984,969,778.42
activities
IV. Effect of fluctuations in exchange
-396,885,933.47 29,621,430.35
rates on cash and cash equivalents
V. Net increase in cash and cash
-1,590,480,219.31 3,772,194,712.99
equivalents
Add: Balance of cash and cash
34,340,013,574.22 23,295,157,047.86
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents
32,749,533,354.91 27,067,351,760.85
at the end of the period
Legal representative: Chief accountant: Person in charge of accounting department:
Liang Haishan Gong Wei Ying Ke
Cash Flow Statement of the Parent Company
January-March 2018
Prepared by: Qingdao Haier Co., Ltd.
Unit and Currency: RMB
Unaudited
Items Current amount Prior amount
I. Cash flows from operating activities:
Cash received from sales of goods
816,513,664.12 34,265,286.31
or rendering of services
28 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Refunds of taxes 2,249,452.13
Cash received from other related
21,182,595.59 3,562,034.19
operating activities
Sub-total of cash inflows from
839,945,711.84 37,827,320.50
operating activities
Cash paid on purchase of goods and
221,179,942.07 605,901,367.09
services
Cash paid to and on behalf of employees 131,351,975.78 371,066,552.46
Cash paid for all types of taxes 29,006,267.68 47,645,546.40
Cash paid to other operation related
116,047,065.74 98,883,185.35
activities
Sub-total of cash outflows from
497,585,251.27 1,123,496,651.30
operating activities
Net cash flows from operating
342,360,460.57 -1,085,669,330.80
activities
II. Cash flows from investing activities:
Cash received from disposal of
78,325.00
investments
Cash received from return on
12,000,613.55 39,306,692.40
investments
Net cash received from the disposal of
fixed assets, intangible assets and other
long term assets
Net cash received from disposal of
subsidiaries and other operating entities
Cash received from other investment
related activities
Sub-total of cash inflows from
12,078,938.55 39,306,692.40
investing activities
Cash paid on purchase of fixed assets,
intangible assets and other long term 11,279,152.65 364,910.00
assets
Cash paid for investments 168,659,237.50
Net cash paid on acquisition of
subsidiaries and other operating entities
Cash paid on other investment related
activities
Sub-total of cash outflows from
11,279,152.65 169,024,147.50
investing activities
Net cash flows from investing
799,785.90 -129,717,455.10
activities
III. Cash flows from financing activities:
Cash received from investment
29 / 30
First Quarter 2018 Report of Qingdao Haier Co., Ltd.
Cash received from borrowings
Cash received from other financing
758,777,670.99
related activities
Sub-total of cash inflows from
758,777,670.99
financing activities
Cash paid on repayment of borrowings
Cash paid on distribution of dividends,
profits, or interest expenses
Cash paid on other financing activities 177,527,578.53
Sub-total of cash outflows from
177,527,578.53
financing activities
Net cash flows from financing
758,777,670.99 -177,527,578.53
activities
IV. Effect of fluctuations in exchange
-1,723.67 -263.89
rates on cash and cash equivalents
V. Net increase in cash and cash
1,101,936,193.79 -1,392,914,628.32
equivalents
Add: Balance of cash and cash
2,070,527,802.97 3,888,623,400.28
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents
3,172,463,996.76 2,495,708,771.96
at the end of the period
Legal representative: Chief accountant: Person in charge of accounting department:
Liang Haishan Gong Wei Ying Ke
4.2 Audit Report
□Applicable √Not Applicable
30 / 30
