Annual Report of Haier Smart Home Co., Ltd.
Contents
I. IMPORTANT NOTICE .......................................................... 2
II. COMPANY PROFILE .......................................................... 2
III. SIGNIFICANT EVENTS ....................................................... 8
IV. APPENDIX .................................................................. 12
Note: This Announcement has been prepared in both Chinese and English. Should there beany discrepancies or misunderstandings between the two versions, the Chinese versionshall prevail.
I. IMPORTANT NOTICE
1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior management ofHaier Smart Home Co., Ltd.(“the Company”) hereby assure that the content set out in the quarterlyreport is true, accurate and complete, and free from any false record, misleading representation ormaterial omission, and are individually and collectively responsible for the content set out therein.
1.2 Information of Directors absent from the meeting
Name of director absentfrom the meeting
| Name of director absent from the meeting | Position of director absent from the meeting | Reason for the absence of director from the meeting | Name of proxy |
| Liang Haishan | Chairman | On business | Tan Lixia |
1.3 Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of theCompany) and Ying Ke (the person in charge of accounting department) hereby certify that thefinancial statements set out in the quarterly report is true, accurate and complete.
1.4 The first quarterly report of the Company has not been audited.
II. COMPANY PROFILE
2.1 Key financial data
Unit and Currency: RMB
| At the end of the reporting period | At the end of last year | Increase/decrease at the end of the reporting period compared with the end of last year (%) | ||
| After the adjustment | Before the adjustment | |||
| Total assets | 188,485,492,970.26 | 187,454,236,283.17 | 187,454,236,283.17 | 0.55 |
| Net assets attributable to shareholders of listed companies | 48,651,047,852.61 | 47,888,319,765.92 | 47,888,319,765.92 | 1.59 |
| At the beginning of the year to the end of the reporting | At the beginning of last year to the end of the reporting period of last year | Yoy change (%) | ||
period
| period | After the adjustment | Before the adjustment | ||
| Net cash flows from operating activities | -5,787,626,102.33 | 1,375,981,554.14 | 1,323,519,988.31 | -520.62 |
| At the beginning of the year to the end of the reporting period | At the beginning of last year to the end of the reporting period of last year | Yoy change (%) | ||
| After the adjustment | Before the adjustment | |||
| Operating revenue | 43,141,448,203.28 | 48,521,846,087.00 | 48,043,265,870.34 | -11.09 |
| Net profits attributable to shareholders of listed companies | 1,070,333,404.45 | 2,147,509,801.25 | 2,136,268,479.08 | -50.16 |
| Net profits after deduction of non-recurring profit or loss attributable to shareholders of listed companies | 943,123,999.14 | 1,887,324,275.73 | 1,887,324,275.73 | -50.03 |
| Weighted average return on net assets (%) | 2.22 | 6.62 | 6.62 | decrease 4.40 percentage points |
| Basic earnings per share (RMB per share) | 0.163 | 0.337 | 0.335 | -51.63 |
| Diluted earnings per share (RMB per share) | 0.163 | 0.325 | 0.323 | -49.85 |
In the first quarter of 2020, the outbreak of COVID-19 had an impact on the domestic appliancesmarket. According All View Cloud (AVC), retail sales of white goods and kitchen and bathroomproducts in the domestic market decreased by 44% from January to March. In the overseas markets, therapid spread of the epidemic in March is expected to have a significant negative impact on homeappliances demand in the second quarter. The Company adhered to the implementation of IoT eco brandstrategy, focused on leading smart home scenario solutions, accelerated transformation, seizedopportunities and popularized the Company’s healthy home appliances in order to outperform theindustry.
1. Upgrading scenario experience, optimizing product mix, and popularizing healthy homeappliances. (1) Focusing on improving the quality of life and wellbeing, leveraging on big data platformand connected appliances upgrades, 19 whole-house healthy scenarios facilitating disinfection andin-door fitness having been launched including refrigerator industry’s extreme preservation and kitchenaesthetics (2) The company also introduced a series of health focused products including air-washwashing machine, 56°C sterilization self-cleaning air conditioner, electric water heaters with waterpurification, five-fold anti-bacteria gas water heaters and medical-grade disinfection cabinets.
2. Accelerating the system digitalization and the transformation of ‘Replacing Products withScenarios and Incorporating All Industries into the Ecosystem’. (1) The Company continuouslypromoted the integration of marketing, logistics, services and information systems thus providedistributors with retail management through digital platforms of Haier Smart Home App, Jushanghui,Yilihuo, in order to improve operational efficiency. (2) The Company innovated the content of userinteraction, increase live streaming traffic of smart home scenarios through product, content andaccessibility. Haier Smart Home App played a vital role in help distributors with Omni-Channelintegration. On 31 March, Experience Cloud based Crowd Streaming was launched on Haier SmartHome App, broadcasting live scenario-based wellbeing solutions with 12 million views and RMB160,000,000 in scenario based GMV. (3)The Company promoted user interaction via enhancedexperience and created life-long relationship with users through improved membership management, InMarch, MAU of Haier Smart Home App grew by 483% year-on-year, and total number of netter usersincreased by 172%.
3. Resuming domestic production. Dedicated efforts were made in epidemic containment; as ofthe end of the first quarter, production was resumed in all factories in China.
4. Stable overseas performance. Overseas revenue increased by 8.5% in the first quarter,outperforming most local industries. Amid the spread of CONVID-19, overseas managements fully drewon domestic experience, and took precautionary measures to protect employees and safeguardproduction, promote ecommerce presence, introduce health focused products and increase premiummarket leadership.
5. Global market share expansion. (1) In the first quarter of 2020, revenue market share ofrefrigerator, washing machine, air conditioner, water heater and kitchen appliance increased by 2.6, 4.4,
3.3, 6 and 1.3 percentage points. offline in China, while online market share grew by 5.9, 5.6, 4.1, 2.1and 0.4 percentage points. respectively. ③Casarte continued to outperform the industry with revenuedecline of 6.7% leveraging on its high-end comprehensive smart scenario solutions and dominance inpremium market. (2) Market share of core home appliances in US increased by 2.7 percentage points.,and AQUA gained 0.9 percentage points in Japan.
Non-recurring profit or loss items and amount?Applicable□ Not Applicable
Unit and Currency: RMB
Items
| Items | Amount for the current period |
| Profit or loss from disposal of non-current assets | -2,840,847.01 |
| 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 granted with the amount and quantity determined under certain standards | 209,640,875.83 |
| Profit and loss of changes in fair value arising from holding of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities except for valid straddle business relevant to normal business of the company, as well as investment gain realized from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other debt investments | -49,586,871.27 |
| Other non-operating income and expenses except the aforementioned items | 32,731,087.66 |
| Profit from disposal of long-term equity investments | -298,399.12 |
| Impact on Minority interests (after tax) | -35,774,452.99 |
| Effect of income tax | -26,661,987.79 |
| Total | 127,209,405.31 |
2.2 Table of total number of shareholders, 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 | 174,731 | |||||
| Shareholdings of top ten shareholders | ||||||
| Name of shareholder (full name) | Number of shares held at | Percentage | Number of shares held | Status of shares pledged or frozen | Nature of sharehold | |
the end of theperiod
| the end of the period | (%) | subject to selling restrictions | Status | Number | er | ||
| Haier Electric Appliances International Co., Ltd. | 1,258,684,824 | 19.13 | Nil | Domestic non-state-owned legal entity | |||
| Haier Group Corporation | 1,072,610,764 | 16.30 | Nil | Domestic non-state-owned legal entity | |||
| Hong Kong Securities Clearing Co., Ltd | 745,934,060 | 11.34 | Unknown | Foreign legal entity | |||
| China Securities Finance Corporation Limited | 182,592,697 | 2.78 | Unknown | Unknown | |||
| Qingdao Haier Venture & Investment Information Co., Ltd. | 172,252,560 | 2.62 | Nil | Domestic non-state-owned legal entity | |||
| GIC PRIVATE LIMITED | 132,778,263 | 2.02 | Unknown | Foreign legal entity | |||
| CLEARSTREAM BANKING S.A. (Note) | 91,216,350 | 1.39 | Unknown | Foreign legal entity | |||
| Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) | 73,011,000 | 1.11 | Nil | Domestic non-state-owned legal entity | |||
| National Social Security fund Portfolio 103 | 72,999,295 | 1.11 | Unknown | Unknown | |||
| Bank of China Limited－E Fund’s small and medium-sized hybrid securities investment funds | 70,000,000 | 1.06 | Unknown | Unknown | |||
| Shareholdings of top ten shareholders not subject to selling restrictions | |||||||
| Name of shareholder | Number of shares held not subject to selling | Class and number of shares | |||||
restrictions
| restrictions | Class | Number | |
| Haier Electric Appliances International Co., Ltd. | 1,258,684,824 | RMB ordinary | 1,258,684,824 |
| Haier Group Corporation | 1,072,610,764 | RMB ordinary | 1,072,610,764 |
| Hong Kong Securities Clearing Co., Ltd. | 745,934,060 | RMB ordinary | 745,934,060 |
| China Securities Finance Corporation Limited | 182,592,697 | RMB ordinary | 182,592,697 |
| Qingdao Haier Venture & Investment Information Co., Ltd.(青岛海尔创业投资咨询有限公司) | 172,252,560 | RMB ordinary | 172,252,560 |
| GIC PRIVATE LIMITED | 132,778,263 | RMB ordinary | 132,778,263 |
| CLEARSTREAM BANKING S.A. | 91,216,350 | Overseas listed foreign shares | 91,216,350 |
| Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) | 73,011,000 | RMB ordinary | 73,011,000 |
| National Social Security Fund Portfolio 103 | 72,999,295 | RMB ordinary | 72,999,295 |
| Bank of China Limited－E Fund’s small and medium-sized hybrid securities investment funds | 70,000,000 | RMB ordinary | 70,000,000 |
| Related-parties or parties acting in concert among the aforesaid shareholders | (1) Haier Electric Appliances International Co., Ltd. is a 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), Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) are parties acting in concert with Haier Group Corporation; (2) The Company is not aware of the existence of any connections of other shareholders. | ||
| Explanation of preferential shareholders with restoration of voting rights and their shareholdings | Nil | ||
Note: (1) This account is the Clearstream Banking collection account for the Company's D shares,which is the original data provided by the German securities registration agency to the Company afterthe merger according to local market practices and technical settings, not representing the ultimateshareholder. (2) 57,142,857 shares in this account are held by Haier International Co., Limited, theconcerted actor of the Company’s ultimate controller Haier Group Corporation, accounting for 0.87% ofthe Company's total share capital.
2.3 Table of total number of preferential shareholders, top ten preferential shareholders, top tenpreferential shareholders without selling restrictions by the end of the reporting period
□Applicable√ Not Applicable
III. SIGNIFICANT EVENTS
3.1 The major changes of and reasons for the items of accounting statement and financial indicators
√Applicable □ Not Applicable
1) Financial assets held for trading increased by 51.63% compared to the beginning of the period,mainly due to the increase of the short-term wealth management products;
2) Derivative financial assets increased over the beginning of the period by 421.38%, mainly due tothe increase of forward foreign exchange contacts in the current period;
3) Prepayment increased over the beginning of the period by 36.60%, mainly due to the increase ofprepayment of the bulk raw materials;
4) Short-term borrowings increased over the beginning of the period by 88.96%, mainly due to theincrease of short-term borrowings in the current period;
5) Financial liabilities held for trading increased over the beginning of the period by 158.91%,mainly due to the increase of forward exchange hedges in the current period;
6) Taxes and surcharges decreased by 52.62% compared to the same period of last year, mainly dueto the change of value-added tax rate, which decreased from 16% to 13% since 1 April 2019;
7) Other income increased by 144.43% compared to the same period of last year, mainly due to theincrease of government grants in the current period;
8) Gains on change of fair value decreased by 122.35% compared to the same period of last year,mainly due to the change of fair value in forward foreign exchange contacts in the current period;
9) Non-operating income decreased by 47.00% compared to the same period of last year, mainlydue to the decrease of the fine income in the current period compared to the same period of last year;
10) Income tax expenses decreased by 54.69% compared to the same period of last year, mainlydue to the decrease of the taxable income compared to the same period of last year;
11) Net cash flows from operating activities decreased by 520.62% compared to the same period oflast year, mainly due to the decrease of the recoverable amounts caused by CONVID-19 in the currentperiod;
12) Net cash flows from investing activities increased by 77.42% compared to the same period oflast year, mainly due to the larger expense resulting from the acquisition of Candy in the same period oflast year;
13) Net cash flows from financing activities increased by 132.21% compared to the same period oflast year, mainly due to the increase of short-term borrowings in the current period.
3.2 Analysis on the progress of significant events and their impact and solution
√Applicable □ Not Applicable
Note: The currency of the data about the amount involved in this paragraph refers to RMB unlessotherwise specified.
（1）External guarantees: By the end of the reporting period, the external guarantees provided bythe Company and its subsidiaries were guarantees between the Company and its subsidiaries, the totalbalance of which amounted to RMB 32.527 billion , accounting for 66.9% of the Company’s latest netassets and 17.2% of the latest total assets. Among the external guarantees, the balance of the guaranteedue to the acquisition of the appliance assets of General Electric business was RMB 6.438 billion andthe balance of daily guarantees was RMB 26.089 billion.
（2） Foreign exchange derivative： By the end of the reporting period, the aggregate balance ofthe Company’s foreign exchange derivative transactions amounted to approximately USD 2.2 billion.
（3）Entrusted wealth management: By the end of the reporting period, the balance of theCompany’s entrusted wealth management amounted to RMB 3.901 billion, including three parts: ①temporarily-idle fund-raising wealth management: at the end of December 2018, the Company’sproceeds for the issuance of convertible corporate bonds were fully landed. In order to improve the yieldof temporarily-idle funds, the Company intended to carry out cash management with the amounts notexceed RMB1.5 billion after approved by the Board of Directors. By the end of the reporting period, thebalance of the entrusted wealth management amounted to RMB 619 million; ②wealth management ofthe Company’s Hong Kong listed subsidiary: Haier Electronics Group Co., Ltd. (hereinafter referredto as “Haier Electronics”, stock code: “01169.HK”), the holding subsidiary of the Company, haspurchased some short-term principal-protected wealth management and structural deposits from thelarge commercial banks as an independently operating Hong Kong listed company in order to increase
the efficiency of the use of idle funds within the authorities of the management and on the premise ofsafeguarding funds security. In the purchase process, all the necessary board reports were subject to theprocedures such as filling and management’s review according to the regulations requirements for HongKong listed company, so as to ensure sufficient funds for the day-to-day operations of the main businessand improve the shareholders’ returns. By the end of the reporting period, the balance of the entrustedwealth management amounted to RMB 3.269 billion. ③Temporary-idle funds wealth managementby certain subsidiaries of the Company: In order to improve the yield of temporarily-idle funds, somesubsidiaries of the Company use temporarily-idle funds for cash management within the authority of thegeneral manager’s office meeting. By the end of the reporting period, the balance of the entrusted wealthmanagement amounted to RMB 13 million.
（4）The progress on the matters of privatization of Haier Electronics: On 12 December 2019,the Company announced the preliminary discussion on the implementation of H-share listing andprivatization of Haier Electronics. Up to now, the Company is continuing to discuss the proposal on thepossible privatization and is continuing to consult with relevant regulatory agencies on potentialtransactions discussed in these areas; the Company has not yet submitted the certain proposal on thepossible privatization to Haier Electronics, and has not yet reached any agreement or made othercommitments in terms of conducting possible privatization. The details and terms of the possibleprivatization (including the share conversion ratio and timetable) have not been determined. There is stillsignificant uncertainty as to whether the possible privatization will proceed. For details, please refer tothe Company’s monthly update announcement on the progress of the matters.
3.3 The undertakings that have been past due and not been completed during the reporting period
□Applicable √ Not Applicable
3.4 Warning of and explanation on reasons for the forecast that the accumulated net profit for the
period from the beginning of the year to the end of the next reporting period may be a loss or there
is a significant change as compared to that of the same period of last year
□Applicable √ Not Applicable
Since the outbreak of pneumonia epidemic caused by CONVID-19 at home and abroad in early2020, the Company's prevention and control of pneumonia epidemic is continuing globally and variousmeasures have been taken to mitigate the impact of the epidemic on the Company's production and
operation. The epidemic has brought uncertainty to the production and operation and may affect theCompany's operation and financial condition. The Company will continue to assess and actively respondto the impact of the epidemic on its financial condition and operating results, and fulfilled informationdisclosure obligations in a timely manner.
Name of the Company
| Name of the Company | Haier Smart Home Co., Ltd. |
| Legal representative | Liang Haishan |
| Date | 28 April 2020 |
IV. APPENDIX
4.1 Financial Statements
Consolidated Balance Sheet
31 March 2020Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items
| Items | 31 March 2020 | 31 December 2019 |
| Current Assets: | ||
| Monetary capital | 36,639,961,366.57 | 36,178,815,683.25 |
| Provision of settlement fund | ||
| Placements with banks | ||
| Trading financial assets | 467,221,006.19 | 308,135,007.05 |
| Derivative financial assets | 99,885,746.41 | 19,158,132.45 |
| Bills receivable | 9,825,315,122.94 | 13,951,419,893.96 |
| Accounts receivable | 14,252,544,699.35 | 11,015,871,060.09 |
| Financing receivables | ||
| Prepayments | 1,738,824,044.48 | 1,272,921,546.72 |
| Premiums receivable | ||
| Reinsurance Accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 2,287,325,226.58 | 2,163,517,802.50 |
| Including: interests receivable | ||
| dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 28,742,037,151.73 | 28,228,600,971.61 |
| Contract assets | 402,206,740.70 | 422,738,398.42 |
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 6,349,362,384.42 | 6,985,966,115.46 |
| Total current assets | 100,804,683,489.37 | 100,547,144,611.51 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | 283,521,125.92 | 307,588,203.00 |
| Long-term equity investments | 20,607,396,387.15 | 20,460,763,915.68 |
| Other equity instruments | 1,399,554,850.81 | 1,395,959,878.92 |
investments
| investments | ||
| Other non-current financial assets | 286,892,331.60 | 294,547,364.47 |
| Investment properties | 27,954,641.87 | 29,402,691.38 |
| Fixed assets | 21,374,978,619.23 | 21,180,057,212.01 |
| Construction in progress | 2,189,902,583.66 | 2,391,364,659.97 |
| Biological assets for production | ||
| Oil and gas assets | ||
| Right-of-use assets | 2,957,511,332.15 | 2,755,066,601.59 |
| Intangible assets | 10,664,351,213.82 | 10,687,071,783.07 |
| Development expenses | 237,033,783.02 | 193,285,777.10 |
| Goodwill | 24,098,838,768.79 | 23,351,729,813.35 |
| Long-term prepaid expenses | 410,936,818.54 | 437,586,912.58 |
| Deferred income tax assets | 1,605,975,824.82 | 1,578,901,892.73 |
| Other non-current assets | 1,535,961,199.51 | 1,843,764,965.81 |
| Total non-current assets | 87,680,809,480.89 | 86,907,091,671.66 |
| Total assets | 188,485,492,970.26 | 187,454,236,283.17 |
| Current liabilities: | ||
| Short-term borrowings | 16,221,896,894.94 | 8,585,049,237.18 |
| Borrowings from central bank | ||
| Placements from banks | ||
| Trading financial liabilities | 110,809,728.77 | 42,799,173.35 |
| Derivative financial liabilities | 72,774,552.64 | 99,548,853.97 |
| Bills payable | 20,778,400,532.35 | 19,308,538,776.92 |
| Accounts payable | 28,488,507,041.20 | 33,750,567,046.28 |
| Receipts in advance | ||
| Contract liabilities | 4,173,099,311.94 | 5,583,008,412.49 |
| Disposal of repurchased financial assets | ||
| Absorbing deposit and deposit in inter-bank market | ||
| Customer deposits for trading in securities | ||
| Amounts due to issuer for securities underwriting | ||
| Staff remuneration payable | 2,471,546,865.70 | 3,155,572,417.30 |
| Taxes payable | 2,017,062,209.52 | 2,117,056,381.04 |
| Other payables | 12,672,566,895.86 | 15,156,392,521.82 |
| Including: interests payable | ||
| dividends payable | ||
| Fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale |
Non-current liabilities due withinone year
| Non-current liabilities due within one year | 6,886,127,628.02 | 7,317,138,918.02 |
| Other current liabilities | 467,090,261.36 | 494,065,707.54 |
| Total current liabilities | 94,359,881,922.30 | 95,609,737,445.91 |
| Non-current liabilities: | ||
| Deposits for insurance contracts | ||
| Long-term borrowings | 13,830,083,494.92 | 13,276,452,935.56 |
| Debentures payable | 7,189,437,211.08 | 7,004,585,761.43 |
| Including: preference shares | ||
| perpetual bonds | ||
| Lease liabilities | 2,207,410,857.41 | 1,980,271,767.35 |
| Long-term payable | 145,384,516.28 | 142,342,718.45 |
| Long-term staff remuneration payable | 1,053,527,477.29 | 1,122,350,237.36 |
| Estimated liabilities | 1,451,585,248.27 | 1,398,877,746.33 |
| Deferred income | 725,967,737.33 | 705,272,617.10 |
| Deferred income tax liabilities | 1,171,212,424.93 | 1,154,413,295.72 |
| Other non-current liabilities | 70,947,639.13 | 70,071,490.03 |
| Total non-current liabilities | 27,845,556,606.64 | 26,854,638,569.33 |
| Total liabilities | 122,205,438,528.94 | 122,464,376,015.24 |
| Owners’ equity（or shareholder’s equity）: | ||
| Paid-in capital (or share capital ) | 6,579,566,627.00 | 6,579,566,627.00 |
| Other equity instruments | 431,424,524.07 | 431,424,524.07 |
| Including: preference shares | ||
| perpetual bonds | ||
| Capital reserve | 4,431,710,553.57 | 4,435,890,845.47 |
| Less: treasury stock | ||
| Other comprehensive income | 1,019,461,961.88 | 1,317,988,619.66 |
| Special reserve | ||
| Surplus reserve | 2,655,327,405.46 | 2,655,327,405.46 |
| General risk provisions | ||
| Undistributed profits | 33,533,556,780.63 | 32,468,121,744.26 |
| Total equity attributable to owners (or shareholder) of the parent company | 48,651,047,852.61 | 47,888,319,765.92 |
| Minority interests | 17,629,006,588.71 | 17,101,540,502.01 |
| Total owners’ equity (or shareholders’ equity) | 66,280,054,441.32 | 64,989,860,267.93 |
| Total liabilities and owners’ equities (or shareholders’ equity) | 188,485,492,970.26 | 187,454,236,283.17 |
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Balance Sheet of the Parent Company
31 March 2020Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items
| Items | 31 March 2020 | 31 December 2019 |
| Current Assets: | ||
| Monetary capital | 2,015,900,136.35 | 5,624,406,816.79 |
| Trading financial assets | ||
| Derivative financial assets | ||
| Bills receivable | ||
| Accounts receivable | 3,919,143,482.75 | 1,182,234,481.49 |
| Financing receivables | ||
| Prepayments | 19,410,050.10 | 30,749,459.11 |
| Other receivables | 8,026,567,402.44 | 5,885,752,905.74 |
| Including: interests receivable | ||
| dividends receivable | ||
| Inventories | 430,644,595.35 | 233,688,207.38 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 685,355,700.53 | 705,958,670.28 |
| Total current assets | 15,097,021,367.52 | 13,662,790,540.79 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 35,722,275,013.26 | 35,566,480,370.20 |
| Other equity instruments investments | 5,147,131.28 | 5,147,131.28 |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 174,280,855.44 | 180,807,176.98 |
| Construction in progress | 69,010,714.82 | 65,367,920.02 |
| Biological assets for production | ||
| Oil and gas assets | ||
| Right-of-use assets | 13,541,553.57 | |
| Intangible assets | 15,274,077.63 | 15,779,108.14 |
| Development expenses |
Goodwill
| Goodwill | ||
| Long-term prepaid expenses | 5,019,338.21 | 5,405,209.80 |
| Deferred income tax assets | 97,384,845.46 | 97,384,845.46 |
| Other non-current assets | 3,792,624.04 | |
| Total non-current assets | 36,101,933,529.67 | 35,940,164,385.92 |
| Total assets | 51,198,954,897.19 | 49,602,954,926.71 |
| Current liabilities: | ||
| Short-term borrowings | 2,500,000,000.00 | |
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Bills payable | ||
| Accounts payable | 6,570,563,965.76 | 3,412,291,778.06 |
| Receipts in advance | ||
| Contract liabilities | 17,437,814.95 | 16,562,259.31 |
| Staff remuneration payable | 20,819,161.77 | 76,513,196.33 |
| Taxes payable | 84,871,628.44 | 86,856,453.32 |
| Other payables | 22,821,596,043.00 | 26,900,844,668.74 |
| Including: interests payable | ||
| dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | 2,724,531.27 | 2,149,745.37 |
| Total current liabilities | 32,018,013,145.19 | 30,495,218,101.13 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Debentures payable | ||
| Including: preference shares | ||
| perpetual bonds | ||
| Leasing liabilities | 13,551,731.91 | |
| Long-term payable | 20,000,000.00 | 20,000,000.00 |
| Long-term staff remuneration payable | ||
| Estimated liabilities | ||
| Deferred income | 44,840,000.00 | 59,820,000.00 |
| Deferred income tax liabilities | 43,325,120.18 | 43,325,120.18 |
| Other non-current liabilities | ||
| Total non-current liabilities | 121,716,852.09 | 123,145,120.18 |
| Total liabilities | 32,139,729,997.28 | 30,618,363,221.31 |
| Owners’ equity（or shareholder’s equity）： | ||
| Paid-in capital (or share capital ) | 6,579,566,627.00 | 6,579,566,627.00 |
Other equity instruments
| Other equity instruments | ||
| Including: preference shares | ||
| perpetual bonds | ||
| Capital reserve | 7,036,531,178.83 | 7,036,531,178.83 |
| Less: treasury stock | ||
| Other comprehensive income | 22,219,493.68 | 11,077,477.45 |
| Special reserve | ||
| Surplus reserve | 2,050,181,180.01 | 2,050,181,180.01 |
| Undistributed profits | 3,370,726,420.39 | 3,307,235,242.11 |
| Total owners’ equity (or shareholders’ equity) | 19,059,224,899.91 | 18,984,591,705.40 |
| Total liabilities and owners’ equities (or shareholders’ equity) | 51,198,954,897.19 | 49,602,954,926.71 |
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Income StatementJanuary-March 2020Prepared by Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
| Items | First quarter of 2020 | First quarter of 2019 |
| I. Total operating revenue | 43,141,448,203.28 | 48,521,846,087.00 |
| Including: operating revenue | 43,141,448,203.28 | 48,521,846,087.00 |
| Interest income | ||
| Insurance premiums earned | ||
| Fee and commission income | ||
| II. Total cost of operations | 41,757,563,634.45 | 45,748,471,540.12 |
| Including: operating cost | 31,301,454,089.43 | 34,393,443,824.64 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Insurance withdrawal payment | ||
| Net payment from indemnity | ||
| Net provisions withdrew for insurance liability | ||
| Insurance policy dividend paid | ||
| Reinsurance cost | ||
| Taxes and surcharges | 110,484,681.22 | 233,209,447.44 |
| Selling expenses | 6,482,493,374.32 | 7,233,394,574.02 |
| Administrative expenses | 1,935,676,561.57 | 1,885,154,270.40 |
| R&D expenses | 1,599,598,038.94 | 1,564,880,771.60 |
| Financial expenses | 327,856,888.97 | 438,388,652.02 |
Including: interest expenses
| Including: interest expenses | 274,142,181.24 | 411,061,400.84 |
| Interest income | 122,320,829.91 | 126,013,588.36 |
| Add: Other income | 245,069,840.71 | 100,260,232.04 |
| Investment income (losses are represented by “-”) | 314,736,890.47 | 295,937,088.57 |
| Including: Investment income of associates and joint ventures | ||
| Derecognition income on financial assets measured at amortized cost | ||
| Exchange gain (losses are represented by “-”) | ||
| Gains on net exposure hedges (losses are represented by “-”) | ||
| Income from change in fair value (losses are represented by “-”) | -49,586,871.27 | 221,898,309.95 |
| Loss on credit impairment (losses are represented by “-”) | -83,890,424.46 | -66,872,284.70 |
| Loss in assets impairment (losses are represented by “-”) | -273,129,120.39 | -215,322,646.22 |
| Gain from disposal of assets (losses are represented by “-”) | -2,840,847.01 | -3,192,061.07 |
| III. Operating profit (losses are represented by “-”) | 1,534,244,036.88 | 3,106,083,185.45 |
| Add: non-operating income | 56,702,305.54 | 106,989,063.79 |
| Less: non-operating expenses | 23,971,217.88 | 20,943,341.71 |
| IV. Total Profit (total losses are represented by “-”) | 1,566,975,124.54 | 3,192,128,907.53 |
| Less: income tax expense | 223,403,750.66 | 493,086,980.04 |
| V. Net Profit (net losses are represented by “-”) | 1,343,571,373.88 | 2,699,041,927.49 |
| (I) Classification by continuous operation | ||
| 1. Net profit from continuous operations (net losses are represented by “-”) | 1,343,571,373.88 | 2,652,550,624.93 |
| 2. Net profit from discontinuous operations (net losses are represented by “-”) | 46,491,302.56 | |
| (II) Classification by ownership of the equity | ||
| 1. Net profit attributable to shareholders of the Parent Company (net losses are represented by “-”) | 1,070,333,404.45 | 2,147,509,801.25 |
| 2. Profit or loss attributable to minority shareholders (net losses are represented by “-”) | 273,237,969.43 | 551,532,126.24 |
| VI. Other comprehensive income, net of tax | -263,628,908.56 | -416,973,681.83 |
(I) Other comprehensive incomeattributable to owners of the Parent Company,net of tax
| (I) Other comprehensive income attributable to owners of the Parent Company, net of tax | -292,844,209.58 | -370,313,133.76 |
| 1．Other comprehensive income that cannot be reclassified into the profit or loss | -281,102.14 | -1,616,393.65 |
| (1) Changes arising from re-measurement of defined benefit plans | -151,488.17 | -1,296,966.52 |
| (2) Other comprehensive income that cannot be transferred into profit or loss under equity method | ||
| (3) Changes in fair value of investments in other equity instruments | -129,613.97 | -319,427.13 |
| (4) Changes in fair value of credit risks of the enterprise | ||
| 2．Other comprehensive income to be reclassified into the profit or loss | -292,563,107.44 | -368,696,740.11 |
| (1) Other comprehensive income that can be transferred into profit or loss under equity method | 45,643,868.38 | -34,948,498.63 |
| (2) Changes in fair value of other debt investments | ||
| (3) Reclassified financial assets that are credited to other comprehensive income | ||
| (4) Credit impairment provision for other debt investments | ||
| (5) Reserve for cash flow hedging | 44,467,734.19 | -16,356,811.45 |
| (6) Exchange differences on translation of financial statements denominated in foreign currencies | -382,674,710.01 | -317,391,430.03 |
| (7) Others | ||
| (II) Other comprehensive income attributable to minority shareholders, net of tax | 29,215,301.02 | -46,660,548.07 |
| VII. Total comprehensive income | 1,079,942,465.32 | 2,282,068,245.66 |
| (I) Total comprehensive income attributable to the owners of Parent Company | 777,489,194.87 | 1,777,196,667.49 |
| (II) Total comprehensive income attributable to the minority shareholders | 302,453,270.45 | 504,871,578.17 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share (RMB/share) | 0.163 | 0.337 |
| (II) Diluted earnings per share (RMB/share) | 0.163 | 0.325 |
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Income Statement of the Parent Company
January-March 2020Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items
| Items | First quarter of 2020 | First quarter of 2019 |
| I. Operating revenue | 3,179,874,436.85 | 653,050,823.21 |
| Less: Operation cost | 2,870,465,369.89 | 465,367,983.61 |
| Taxes and surcharges | 3,053,268.44 | 4,366,015.94 |
| Selling expenses | 131,983,867.38 | 54,929,009.03 |
| Administrative expenses | 67,703,707.17 | 47,142,099.07 |
| R&D expenses | 78,022,939.25 | 51,156,977.29 |
| Financial expenses | -6,131,172.44 | 72,483,128.32 |
| Including: interest expenses | 3,654,000.00 | 53,825,389.44 |
| Interest income | 10,501,990.61 | 10,654,831.16 |
| Add: Other incomes | 20,220,000.00 | 10,540,000.00 |
| Investment income (losses are represented by “-”) | 17,274,491.07 | 26,461,323.35 |
| Including: investment income of associates and joint ventures | ||
| Derecognition income on financial assets measured at amortized cost | ||
| Gains on net exposure hedges (losses are represented by “-”) | ||
| Income from change in fair value (losses are represented by “-”) | ||
| Loss on credit impairment (losses are represented by “-”) | ||
| Loss on assets impairment (losses are represented by “-”) | 573,267.56 | |
| Gain from disposal of assets (losses are represented by “-”) | ||
| II. Operating profit (losses are represented by “-”) | 72,270,948.23 | -4,819,799.14 |
| Add: non-operating income | 20,939.56 | 5,432,063.63 |
| Less: non-operating expenses | 1,963,024.43 | |
| III. Total profit (total losses are represented by “-”) | 72,291,887.79 | -1,350,759.94 |
| Less: income tax expense | 8,800,709.51 | |
| IV. Net profit (net losses are represented by “-”) | 63,491,178.28 | -1,350,759.94 |
(I) Net profit from continuous operation (netlosses are represented by “-”)
| (I) Net profit from continuous operation (net losses are represented by “-”) | 63,491,178.28 | -1,350,759.94 |
| (II) Net profit from discontinuous operation (net losses are represented by “-”) | ||
| V. Other comprehensive income, net of tax | 11,142,016.23 | 5,214,107.78 |
| (I) Other comprehensive income that cannot be reclassified into the profit or loss | ||
| 1.Changes arising from re-measurement of defined benefit plans | ||
| 2.Other comprehensive income that cannot be transferred into profit or loss under equity method | ||
| 3.Changes in fair value of investments in other equity instruments | ||
| 4.Changes in fair value of credit risks of the enterprise | ||
| (II)Other comprehensive income to be reclassified into the profit or loss | 11,142,016.23 | 5,214,107.78 |
| 1.Other comprehensive income that can be transferred into profit or loss under equity method | 11,142,016.23 | 5,214,107.78 |
| 2.Changes in fair value of other debt investments | ||
| 3.Reclassified financial assets that are credited to other comprehensive income | ||
| 4.Credit impairment provision for other debt investments | ||
| 5. Reserve for cash flow hedging | ||
| 6.Exchange differences on translation of financial statements denominated in foreign currencies | ||
| 7.Others | ||
| VI. Total comprehensive income | 74,633,194.51 | 3,863,347.84 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share (RMB/share) | ||
| (II) Diluted earnings per share (RMB/share) |
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Consolidated Cash Flow Statement
January-March 2020Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
Items
| Items | First quarter of 2020 | First quarter of 2019 |
| I. Cash flows from operating activities: | ||
| Cash received from the sale of goods and rendering of services | 42,136,232,275.78 | 49,962,152,554.54 |
| Net increase in customers and interbank deposits | ||
| Net increase in borrowing from the central bank | ||
| 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 | ||
| Cash received from interest, fee and commissions | ||
| Net increase in cash borrowed | ||
| Net increase in cash received from repurchase operation | ||
| Net cash received from securities trading agency services | ||
| Refunds of taxes received | 288,016,456.62 | 289,349,228.78 |
| Cash received from other related operating activities | 297,662,670.96 | 1,108,235,485.36 |
| Sub-total of cash inflows from operating activities | 42,721,911,403.36 | 51,359,737,268.68 |
| Cash paid on purchase of goods and services | 34,960,777,017.70 | 37,853,995,278.68 |
| Net increase in loans and advances of customers | ||
| Net increase in deposits in PBOC and interbank | ||
| Cash paid for compensation payments under original insurance contract | ||
| Net increase in placements with banks | ||
| Cash paid for interest, fees and commissions | ||
| Cash paid for insurance policy dividend |
Cash paid to and on behalf ofemployees
| Cash paid to and on behalf of employees | 6,302,336,001.44 | 5,435,131,252.13 |
| Cash paid for all types of taxes | 1,864,751,157.97 | 2,100,199,573.28 |
| Cash paid to other operation related activities | 5,381,673,328.58 | 4,594,429,610.45 |
| Sub-total of cash outflows from operating activities | 48,509,537,505.69 | 49,983,755,714.54 |
| Net cash flows from operating activities | -5,787,626,102.33 | 1,375,981,554.14 |
| II. Cash flows from investing activities: | ||
| Cash received from disposal of investments | 545,470,265.35 | 1,006,225,645.16 |
| Cash received from return on investments | 163,323,208.40 | 142,671,678.53 |
| Net cash received from the disposal of fixed assets, intangible assets and other long term assets | 539,958.35 | 183,509,600.45 |
| Net cash received from disposal of subsidiaries and other operating entities | ||
| Cash received from other investment related activities | 32,180,326.72 | 4,692,533.64 |
| Sub-total of cash inflows from investing activities | 741,513,758.82 | 1,337,099,457.78 |
| Cash paid on purchase of fixed assets, intangible assets and other long term assets | 1,571,762,263.35 | 1,537,055,955.80 |
| Cash paid for investments | 49,728,582.83 | 2,522,814,478.97 |
| Net increase in secured loans | ||
| Net cash paid on acquisition of subsidiaries and other operating entities | 336,769,755.43 | 2,642,988,600.64 |
| Cash paid on other investment related activities | 6,009,000.00 | 48,510,922.74 |
| Sub-total of cash outflows from investing activities | 1,964,269,601.61 | 6,751,369,958.15 |
| Net cash flows from investing activities | -1,222,755,842.79 | -5,414,270,500.37 |
| III. Cash flows from financing activities: | ||
| Cash received from capital | 59,965,364.85 | 12,389,310.79 |
contributions
| contributions | ||
| Including: cash received from capital contributions by minority shareholders of subsidiaries | ||
| Cash received from borrowings | 8,587,862,583.35 | 6,842,877,477.22 |
| Cash received from other financing related activities | 113,239,548.32 | |
| Sub-total of cash inflows from financing activities | 8,761,067,496.52 | 6,855,266,788.01 |
| Cash paid on repayment of borrowings | 961,169,702.51 | 3,236,695,125.56 |
| Cash paid on distribution of dividends, profits, or interest expenses | 124,530,989.85 | 94,525,723.08 |
| Including: dividend and profit paid to minority shareholders by subsidiaries | ||
| Cash paid on other financing related activities | 92,696,972.18 | 258,636,622.07 |
| Sub-total of cash outflows from financing activities | 1,178,397,664.54 | 3,589,857,470.71 |
| Net cash flows from financing activities | 7,582,669,831.98 | 3,265,409,317.30 |
| IV. Effect of fluctuations in exchange rates on cash and cash equivalents | -6,445,415.89 | -140,969,406.58 |
| V. Net increase in cash and cash equivalents | 565,842,470.97 | -913,849,035.51 |
| Add: balance of cash and cash equivalents at the beginning of the period | 34,981,410,830.63 | 36,559,393,828.57 |
| VI. Balance of cash and cash equivalents at the end of the period | 35,547,253,301.60 | 35,645,544,793.06 |
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
Cash Flow Statement of the Parent Company
January-March 2020Prepared by: Haier Smart Home Co., Ltd.
Unit and Currency: RMB Unaudited
| Items | First quarter of 2020 | First quarter of 2019 |
| I. Cash flows from operating activities: | ||
| Cash received from the sale of goods and rendering of services | 1,114,024,549.65 | 453,512,055.88 |
Refunds of taxes received
| Refunds of taxes received | 8,322,194.46 | 2,857,893.58 |
| Cash received from other related operating activities | 20,875,309.18 | 12,380,281.31 |
| Sub-total of cash inflows from operating activities | 1,143,222,053.29 | 468,750,230.77 |
| Cash paid on purchase of goods and services | 503,534,909.19 | 13,988,526.97 |
| Cash paid to and on behalf of employees | 172,973,160.42 | 164,517,087.07 |
| Cash paid for all types of taxes | 46,067,371.42 | 15,152,947.75 |
| Cash paid to other operation related activities | 215,105,878.98 | 81,138,568.27 |
| Sub-total of cash outflows from operating activities | 937,681,320.01 | 274,797,130.06 |
| Net cash flows from operating activities | 205,540,733.28 | 193,953,100.71 |
| II. Cash flows from investing activities: | ||
| Cash received from disposal of investments | 20,000,000.00 | |
| Cash received from return on investments | 338,301.37 | 1,232,418,382.82 |
| 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 investing activities | 20,338,301.37 | 1,232,418,382.82 |
| Cash paid on purchase of fixed assets, intangible assets and other long term assets | 42,907,743.65 | 18,686,978.91 |
| Cash paid for investments | 131,000,000.00 | 2,164,037,398.72 |
| Net cash paid on acquisition of subsidiaries and other operating entities | ||
| Cash paid on other investment related activities | 46,000,000.00 | |
| Sub-total of cash outflows from investing activities | 219,907,743.65 | 2,182,724,377.63 |
Net cash flows from investingactivities
| Net cash flows from investing activities | -199,569,442.28 | -950,305,994.81 |
| III. Cash flows from financing activities: | ||
| Cash received from capital contributions | ||
| Cash received from borrowings | 2,500,000,000.00 | |
| Cash received from other financing related activities | -6,110,820,524.09 | |
| Sub-total of cash inflows from financing activities | -3,610,820,524.09 | |
| Cash paid on repayment of borrowings | ||
| Cash paid on distribution of dividends, profits or interest expenses | 3,654,000.00 | 16,258,125.00 |
| Cash paid on other financing related activities | 2,998,907,357.18 | |
| Sub-total of cash outflows from financing activities | 3,654,000.00 | 3,015,165,482.18 |
| Net cash flows from financing activities | -3,614,474,524.09 | -3,015,165,482.18 |
| IV. Effect of fluctuations in exchange rates on cash and cash equivalents | -3,447.35 | -3,064,416.93 |
| V. Net increase in cash and cash equivalents | -3,608,506,680.44 | -3,774,582,793.21 |
| Add: balance of cash and cash equivalents at the beginning of the period | 5,624,406,816.79 | 7,068,899,574.96 |
| VI. Balance of cash and cash equivalents at the end of the period | 2,015,900,136.35 | 3,294,316,781.75 |
Legal representative: Liang Haishan Person in charge of accounting function: Gong Wei
Person in charge of accounting department: Ying Ke
4.2 Status in relation to adjustments to the first implementation of relevant items in financialstatements at the beginning of the year for implementation of New Income Standards and NewLease Standards for the first time since 2020
□Applicable √Not Applicable
4.3 Explanation on retroactive adjustments of previously comparative data for implementation of New
Income Standards and New Lease Standards for the first time since 2020
□Applicable √Not Applicable
4.4 Audit report
□Applicable √Not Applicable