Haier Smart Home Co., Ltd. 2021 Annual Report
Company Code ： 600690.SH, 690D.DE Short Name ： Haier Smart Home
Haier Smart Home Co., Ltd.
2021 Annual Report
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Haier Smart Home Co., Ltd. 2021 Annual Report
Important Notice
I. The Board of Directors, the Board of Supervisors, directors, supervisors and senior management of
Haier Smart Home Co., Ltd. (‘the Company’) hereby assure that the content set out in the annual
report is true, accurate and complete, and free from any false record, misleading representation or
material omission, and are individually and collectively responsible for the content set out therein.
II. All Directors of the Company have attended the board meetings.
III. Hexin Certified Public Accountants Limited LLP has issued a standard and unqualified audit report
for the Company.
IV. 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 report set out in the annual report is true, accurate and complete.
V. Proposal of profit distribution or proposal of capitalizing capital reserves for the reporting period
resoluted and adopted by the Board
Proposal of profit distribution for the reporting period are examined and reviewed by the Board: to
declare a cash dividend of RMB4.60 per 10 shares (tax inclusive) to all shareholders based on the total
number of shares held on record date and after deducting the repurchased shares from the repurchase
account in respect of the future distribution proposal, with proposed distribution amounting to
RMB4,320,413,011.54 (tax inclusive). The proportion of cash distribution is 33.1% of the net profit
attributable to shareholder of parent company of the Company for the year. If there is any change in the
total share capital of the Company during the period from the date of this report to the record date of the
equity distribution, the total distribution amount will be remained unchanged with corresponding
adjustment to the proportion of distribution per share.
VI. Disclaimer in respect of forward-looking statements
√ Applicable □Not Applicable
Forward-looking statements such as future plans, development strategies as set out in this report do
not constitute the Company’s substantial commitment to investors. Investors are advised to pay attention
to investment risks.
VII. Is there any fund occupation by controlling shareholders and their related parties for non-
operational purposes?
No
VIII. Is there any provision of external guarantee in violation of the prescribed decision-making
procedures?
No
IX. Are there more than half of the Directors who are unable to guarantee the truthfulness, accuracy
and completeness of the annual report disclosed by the Company?
No
X. Important Risk Warnings
For the possible risks which the Company may encounter, please refer to the relevant information set out in the
section of ‘MANAGEMENT DISCUSSION AND ANALYSIS’ in this report.
XI. Others
□ Applicable √ Not Applicable
Chairman: Liang Haishan
Haier Smart Home Co., Ltd
30 March 2022
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Contents
LETTER TO SHAREHOLDERS 4
SECTION I DEFINITIONS 11
SECTION II GENERAL INFORMATION OF THE COMPANY AND KEY 13
FINANCIAL INDICATORS
SECTION III MANAGEMENT DISCUSSION AND ANALYSIS 20
SECTION IV CORPORATE GOVERNANCE 61
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES 111
SECTION VI SIGNIFICANT EVENTS 120
SECTION VII CHANGES IN ORDINARY SHARES AND INFORMATION 146
ABOUT SHAREHOLDERS
SECTION VIII RELEVANT INFORMATION OF PREFERRED SHARES 157
SECTION IX RELEVANT INFORMATION OFCORPORATE BONDS 158
SECTION X FINANCIAL REPORT 166
(I) Financial statements with signatures and seals of the legal representative, chief
accountant and person in charge of accounting department.
DOCUMENTS
(II) Original audit report with seals of accounting firm, signatures and seals of registered
AVAILABLE
accountants.
FOR
(III) Originals of all documents and announcements of the Company which have been
INSPECTION
publicly disclosed on the newspaper designated by China Securities Regulatory
Commission during the reporting period.
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Letter to Shareholders
2021 was no doubt another year full of challenges. The COVID-19 pandemic has changed life and
work patterns. While consumption has yet to fully recover, the global supply chain was confronted by
various factors such as the chip shortage and insufficient logistics capacity. 2021 was also the first fiscal
year following the integration of Haier Electronics into Haier Smart Home. With unyielding dedication
of 100,000 Haier Smart Home innovators around the world, we have delivered more than 110 million
unit of home appliances to consumers worldwide and reported best business result ever, including all-
time-high sales revenue and net profit. By upholding entrepreneurial spirit since day one, we have firmly
implemented strategies of global brand creation, scenario-based innovation, and efficiency enhancement
by digitalization. 2021 represents the year when Haier Smart Home made significant progress in fulfilling
its mission to provided customized better living experience for families around the world.
Key Accomplishments:
Record-breaking revenue and profit: In 2021, the Company delivered revenue of RMB 227.556 billion,
representing 15.8% growth of organic revenue (excluding impact from disposed businesses). Also in
2021, the Company achieved net profit of RMB 13.217 billion, representing an increase of 16.7% as
compared to 2020. Net profit attributable to the owner of the parent company was RMB 13.067 billion,
representing growth of 47.1% from 2020.
Realizing synergy due to integration with Haier Electronics: The Company's operational efficiency
has been enhanced. In 2021, selling expense ratio was 16.1% and administrative expense ratio was 4.6%,
representing optimization of 1.1 and 0.5 percentage points from 2020 on a comparable basis respectively.
High quality growth: In 2021, the Company's cash flow from operating activities was RMB 23.130
billion, representing increase of RMB 5.52 billion from 2020. Net cash flow from operation activities to
net profit was 1.75.
Efforts to grow overseas business yielding results: Overseas business achieved record-high revenue
and profitability: overseas revenue reached RMB 113.725 billion, a growth of 13% from 2020; operating
profit amounted to RMB 5.926 billion, an increase of 48.1% from 2020.
High-end brands achieved rapid growth: (1) In China, Casarte’s sales revenue crossed RMB 10 billion
mark and reached RMB 12.9 billion, representing a year-on-year increase of more than 40%. (2) In
United States, our high-end brands Monogram, Café and GE Profile achieved over 40% growth rate.
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Alignment of management and shareholder interests: We for the first time established a global
management and employee equity incentive scheme based on the Haier Smart Home listed company
incentive platform, which comprised incentive tools such as restricted stock units and options. These
performance-based schemes further align interests of our management and shareholders.
Sustainable long-term development: The Fortune Magazine published the Fortune Global 500 in 2021.
Haier Smart Home was featured once again, moving up 30 places from 2020. In 2022, Fortune Magazine
named Haier Smart Home as one of the 2022 World’s Most Admired Companies. The Company was the
only company outside the United States listed in the Home Equipment and Furnishings category.
Harmonious employee relations: Haier Smart Home has strived to protect the health and safety of our
employees in areas affected by COVID-19, while maintaining our pledge to deliver quality service to
customers. In China, being Haier Smart Home’s home market, not a single employee’s living or health
suffered due to the pandemic. In the United States, the largest overseas market of our company, GE
Appliances was among the top 20 in the 2021 list of Healthiest 100 Workplaces in America and came
second as The Employers with the Healthiest Work Environment of Kentucky in 2021.
Remarkable results in technological progress: Haier Smart Home Air Conditioning, together with
other R&D institutes, won the “National Award for Science and Technology Progress Second Grade”
prize in November 2021 for the development of the “Theory of Building Thermal Environment and
related Key Technologies for Green Construction”. As China’s most acclaimed technology award, the
National Award for Science and Technology Progress recognizes major technological breakthroughs and
creative contributions by Chinese people and organizations in various fields.
According to the ‘2021 Global Smart Home Invention Patent Top100’ released by IPRdaily, Haier
Smart Home occupied the first place with 4,535 published patent applications in 2021. In the same year,
GEA was named the ‘Smart Home Appliance Company of the Year’ by IoT Breakthrough for the fourth
consecutive year in the United States.
Growth Opportunities and strategic initiatives
Achievements of 2021 is behind us. In 2022, we may face challenges such as declining demand in
China’s real estate market, elevated international shipping costs and high commodity prices. However,
the Company will remain proactive and fully committed to achieving rapid growth in 2022, with growth
coming from capturing leadership positions in categories with high growth potential, as well as from
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innovating service models and creating new revenue stream surrounding Haier Smart Home's loyal user
base.
The Company currently operates three main categories of products – 1) major home appliances
including refrigerators, washing machines, kitchen appliances; 2) heating, ventilation, and air
conditioning (HVAC) category including air conditioners, water heaters and water purifiers; and 3) small
home appliances. Consumer preference and technological trends relating to these three categories are
different. At this stage, Haier Smart Home’s market positions and competitive edge also vary in these
three areas. However, we will assemble all necessary resources, including talents and funds, to tackle our
weakness and support high-quality sustainable development in the next three years.
Since the outbreak of the pandemic in 2020, consumers’ expectations for home living experience
have become higher and higher. Their demand for better health, food freshness preservation, nutrition
and IoT have ceaselessly propelled the innovation of kitchen appliances. In 2021, the unit price of
refrigerator and kitchen appliances has recorded material surge, exhibiting an increasingly obvious trend
in product upgrade. Haier Smart Home’s comprehensive brand portfolio and proactive innovation based
on consumer insights have allowed us to deliver more competitive refrigerators and kitchen appliances,
thereby to achieving growth rate double that of the worldwide industry. Global R&D platform of Haier’s
refrigerator has provided support to the rapid growth of refrigerators in the European and Australian
markets, while the solid competitive edge of GEA and FPA kitchen appliances have continuously
strengthened the competitiveness of kitchen appliances in the China market. All of these demonstrate
Haier Smart Home’s competitive edge in global product R&D and operation system.
In terms of clothing caring, the Company's product range and technologies portfolio are a long way
ahead of our competitors. High-end products such as the Twin two-in-one washing and drying machine
have been highly recognized by the market, which enabled us to cement a leading position in the market
segment. Great user reputation and strong R&D capabilities of Haier’s washing machine have enabled
us to make breakthrough in the dryer market in China in 2021, recording a revenue increase of 203% and
topping the industry in terms of market share. In the United States, the sales volume of large volume
front-loads washing machine which was created with our integrated global R&D resources has reached
550,000 units in 2021, representing growth exceeding 30% as compared to 2020.
Having established a leading market position in the categories of kitchen taste and clothing caring,
Haier Smart Home’s plan for the next three years is to further expand our leading edge, increase our
market share and profit margins in various markets around the globe.
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For the HVAC and water appliances businesses, such categories require professional interior finish
and have a longer product cycle. The core competitive elements lie in whole supply chain cost
competitiveness and technical consistency, as well as support by professional channel. In 2021, the
Company achieved a market share of over 40% for electric water heaters, and the revenue of gas water
heaters recorded a year-on-year increase of 51%. We have also gained further market share in the highly
fragmented gas water heater market. Consistent investments in combustion technology, sterilization
materials and energy efficiency technology have enabled us to have the largest market share in water
heater business in China. In the United States, GEA's water heater plant in South Carolina is also going
to deliver high-quality gas water heater products to American consumers.
The Company came in third place in China’s domestic air conditioning market, with market share
increased by more than 2 percentage points in 2021. In the commercial air conditioning market, with our
magnetic bearing compressor technology solution which has the technological advantages of high
energy efficiency, low operating costs and minimal noise, we have achieved 50% market share in this
sub-segment. In 2022, the Company will ramp up investments in the core components of the air
conditioning industry and develop distributor channels in collaboration with other internal businesses
such as the water heater business, so as to realize large-scale and high-quality development of our air
conditioning business.
After preparation of half year, we announced in late 2021 the investment plan for launching a small
home appliance business division to further invest in emerging categories of home appliances, such as
cleaning appliances, small kitchen appliances, and personal care gadgets. The small home appliance
industry is having three favorable growth drivers – technological upgrade, smart interconnection, and
innovative experience. It is also becoming an industry with a global integrated supply chain, with
majority of production based in China. Meanwhile, small home appliances are becoming smarter. For
example, in the field of vacuuming robots, sensors, scenarios, and interactions produce wealth of data,
which enable replacement of manual labor by automatic cleaning. The merge of innovative experience
with technological breakthrough has redefined a new market for automatic vacuuming robots and
automatic floor cleaners, ushering the industry into a stage of rapid growth.
Through focused investment in categories with high growth potential, I believe Haier Smart Home
can become one of the key players in the thriving small home appliance market. This business line may
potentially contribute 10% of the Company's revenue in the next three years and can become a crucial
part of Haier Smart Home’s smart home scenarios. The development of small home appliance business
will ride on Haier’s brand strength, global scale, in-depth user insight and product definition capabilities,
and will take the form of a jointly built ecosystem alliance, accelerating its development through
collaborations. Haier Smart Home will make full use of China’s ample manufacturing capacity of small
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home appliances and pull together global technological resources to provide users around the world with
healthy, smart, and joyful consumption experience with small home appliances.
Haier Smart Home will fully leverage the benefits of globalization. In China, we intend to further
capture growth opportunities arising from market consolidation in all categories. In the United States,
strong momentum in the real estate market and infrastructure construction will power home appliance
consumption. In Europe and other markets, we have great potential to increase market shares in various
product categories.
Executional Enablers ： Leverage strength and attack weakness
Growth does not appear out of nowhere. The realization of growth depends on the resolute pursuit
of the Company’s mission by all Haier makers as well as our forward-looking and sustainable business
model. As a Fortune Global 500 company, Haier Smart Home is always ambitious. Our culture and
management system encourage all management staff and employees to push through their own limits
and take on challenges. Merely following market average growth demonstrates incompetence.
In 2022 and years to come, we may still live in an era when human co-exists with COVID-19 and
global macro-economic environment becomes more volatile. The pandemic has had a significant impact
on the home appliance industry. It has changed the operating environment of enterprises, people’s mode
of working, and consumers’ shopping patterns. It has also accelerated technology advancement and
application of information technology, and digitalization reshaped operation model of businesses.
Enterprises that strive to adapt to this environment will become more resilient and capable of gaining the
trust of broader users. Meanwhile, shareholders, employees, customers, communities and governments
in both China and other regions expect enterprises to shoulder more social responsibilities and promote
sustainable economic development. In my opinion, by adhering to our strategies of global brand creation,
localized operations, hyper-focus on user experience, and persisting in process reengineering by
digitalization, Haier Smart Home will become more resilient in coping with challenges due to volatile
economic climate, while paving a solid foundation for sustainable growth.
Haier has implemented localized operations in major markets around the world with majority of
products sold in regional markets coming from local production with the dedication of local employees
and by encouraging continued investment in local communities. For larger markets such as the United
States, Japan, and India, we are widely recognized as a local corporate citizen who have made significant
contribution to the respective local economy. GE Appliances, a wholly owned subsidiary of Haier in the
United States, has been the largest investor in the local United States appliance industry for the past five
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years. Since Haier's acquisition of GE Appliances, we have supported its expansion of local supply chain,
built new factory, and increased local investment. In the past five years, 3,000 new jobs have been created
with new investment exceeding USD 2 billion. By bringing Haier's local brands closer to consumers and
integrating them into the local community, while taking advantage of the parent company's technological
and operating platforms, such a business model will help us avoid adverse impacts such as trade barriers
and obtain more sustainable competitive advantages.
Haier Smart Home has implemented a global high-end brand creation strategy and strives to gain
a prominent position in the high-end market. The reason why we maintain focus on the high-end market
is our belief that fulfilling the ultimate experience of consumers is the driving force of our Company's
progress. Home appliances are not only functional but could also be artistic, aesthetic, and technological.
For example, we have launched a zero-distance built-in refrigerator in line with the trend of home
appliance and home furnishing integration, and introduced novel product such as the "Zhongzihemei"
( 美和子中 ) laundry combo which can perform three functions of washing, drying and fabric caring
within one machine. High-end brand strategy also enables us to generate greater user value to offset the
adverse impacts from commodity and labor costs.
The Company’s leading position in the field of major home appliances is not only attributed to its
market share, but also in its dedicated attention to customer experience, which creates one generation of
exquisite and amazing products after another. The key lies in the coordination between the systems of
product innovation and customer interaction. Since our establishment, we have been focusing on what
our customers desire, creating standards for quality and services in China. Consumers’ recognition is
Haier’s achievement. Such value system is not merely slogan but has deeply fused into the ideology of
top management and front-line personnel. Going forward, more and more interactions will take place on
e-commerce channels and online communities. In addition to humanized face-to-face channels, we will
strengthen digital marketing and develop a big data interactive system for countless users.
Cloud computing, big data and IoT offer massive possibilities for more agile and intelligent
enterprise operations in the future, and Haier Smart Home should also evolve to adapt. In 2022, we will
strive to promote processes reengineering driven by digitalization and press forward with the
optimization of operational efficiency from digitalization of R&D and design, logistics and service
processes, and interconnected factories. Haier Smart Home’s key process reengineering project in 2022
aims to realize digitalization of inventory management in the entire end-to-end supply chain process and
optimize the allocation of working capital.
Entering 2022 with High Confidence
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Mainstream view of the market is that it will become increasingly difficult for leading enterprises
to maintain relatively high growth in a mature industry such as home appliances. But I am optimistic that
Haier Smart Home will enjoy unique growth opportunities. First, our strategic planning and core
competencies are highly aligned, with the management of Haier Smart Home adhering to the original
vision of Haier’s first-generation entrepreneurs like never before. In other words, all Haier makers are to
promise global consumers a wonderful home life beyond their imagination, and to become their most
reliable partner for designing and serving their home requirements and creating smart experiences.
Furthermore, technological advances are driving the home appliances industry to become an
increasingly imaginative sector. All Haier team members around the world expect to participate in and
influence this historic process of innovation. Washing machine has first freed us from time constraints.
Large refrigerators not only keep our food fresh, but also save the need for frequent shopping trips, then
there is the ideal air environment that we can enjoy. Coming up next, the integration of technology and
scenarios will become a stronger driving force. Oven and pre-prepared meal enable consumers to enjoy
cuisine of master chef’s quality at home, and consumer robots will take care of cleaning and food
preparation. Technology will enrich our lives in ways beyond our expectations, and it is inevitable that
consumers, whether in China, the United States or Europe, will love and embrace the excitement brought
by technologically advanced home appliances. Haier Smart Home’s mission is to elevate to a whole new
level through creating products and innovating services, providing consumers iterative upgrades of
products and service experience that integrate technological innovation, personalized services, and smart
home scenarios.
In 2022, our established strategy will continue to be firmly implemented. Ahead of us is a
challenging, long-term, and fruitful journey, while our ride to the future gives all of us at Haier a chance
to carry out our mission and contribute to the well-being of all stakeholders. Lastly, I would like to thank
our users around the world for choosing Haier and all our shareholders for their trust in Haier Smart
Home!
Chairman of Haier Smart Home Co., Ltd: Liang Haishan
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Section I Definitions
I. DEFINITIONS
Unless otherwise stated in the context, the following terms should have the following meanings in this
report:
Definition of frequently used terms
CSRC China Securities Regulatory Commission
SSE Shanghai Stock Exchange
The Company, Haier Smart Home Co., Ltd., its original name is ‘Qingdao Haier Co.,
Haier Smart Home Ltd.’, and the original short name is ‘Qingdao Haier’.
Four Major Securities China Securities Journal, Shanghai Securities News, Securities
Newspapers Times, Securities Daily
Haier Electronics Group Co., Ltd. (a company originally listed in Hong
Kong, stock code: 01169.HK), a subsidiary as accounted for in the
Haier Electrics, 1169 consolidated statement of the Company. Haier Electrics has been
privatized by way of H shares issuance on 23 December 2020 and
became a wholly owned subsidiary of the Company since then.
GE Appliances, household appliances assets and business of General
GEA
Electric Group, have currently been owned by the Company.
Fisher & Paykel Appliances Holdings Limited (Chinese name: 雪斐
克派 ), was established in 1934 and is known as the national appliance
brand of New Zealand, the global top-level kitchen appliance brand
and the famous luxury brand of the world. It has products including
FPA
ventilator, gas stove, oven, dishwasher, microwave oven, built-in
freezer, washing machine, clothes dryer and etc. Its business covers
over 50 countries/regions across the world. FPA is a wholly-owned
subsidiary of the Company.
Candy Group (Candy S.p.A), is an international professional
appliances manufacturer from Italy. Since its establishment in 1945, it
has been committed to enabling the global users to enjoy a higher
quality of life through innovative technologies and quality services.
Candy
Candy Group has been prestigious in the global market with users all
over the world via its ten self-owned professional household appliance
brands. In January 2019, Candy became a wholly-owned subsidiary of
the Company.
China Market Monitor Co., Ltd., as an authoritative market research
institute in Chinese household appliances area, was established in
CMM
1994 and has been focusing on research of retail sales in China
consumption market ever since.
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Euromonitor, established in 1972, is the leading strategic market
information supplier and has over 40-years of experience in respect of
Euromonitor publishing market report, commercial reference data and on-line
database. They create data and analysis on thousands of products and
services around the world.
All View Cloud (AVC) is a big data integrated solution provider to the
All View Cloud smart home field, providing enterprises with big data information
services, regular data information services and special data services.
The International Electrotechnical Commission, founded in 1906, is
the world’s first organization for the preparation and publication of
international electrotechnical standardization and is responsible for
international standardization for electrical engineering and electronic
engineering. The goals of the commission include: to effectively meet
the needs of the global market; to ensure that the standards and
IEC
conformity assessment programs are applied globally in a prioritized
manner and to the greatest extent; to assess and improve the quality of
products and services involved in its standards; to create conditions for
the common use of complicated systems; to improve the effectiveness
of the industrialization process; to improve human health and safety,
and to protect the environment.
The Institute of Electrical and Electronics Engineers, an international
association of electronic technology and information science
engineers, is currently the largest non-profit professional technology
society in the world. It is committed to the development and research
IEEE of electrical, electronic, computer engineering and science-related
fields, and has now developed into an international academic
organization with great influence in terms of the fields of space,
computer, telecommunications, biomedicine, power and consumer
electronics.
The concept of ‘Achieving win-win via RenDanHeYi’is the guarantee
of Haier's sustainable operation and the driving force of the Company
featuring a self-motivated and empowering corporate culture. “Ren” is
Model of an employee who has the spirit of entrepreneurship and innovation;
RenDanHeYi “Dan” is to create value for users. The " RenDanHeYi " management
model encourages employees to create value for users with an
entrepreneurial mindset, and to achieve self-value in line with the those
of the Company and its shareholders.
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Section II General Information of the Company and Key Financial Indicators
I. INFORMATION OF THE COMPANY
Chinese name 司公限 有份股 家智尔海
Chinese short name 家智尔海
English name Haier Smart Home Co., Ltd.
English short name Haier Smart Home
Legal representative Liang Haishan
II. CONTACT PERSON AND CONTACT INFORMATION
Secretary to the Board Representative of Company
securities affairs
Secretary (D/H Others
shares)
Global
Customer
Name Ming Guozhen Liu Tao Ng Chi Yin, Trevor
Service
Hotline
Department of
Department of Securities of Securities of Haier Room 3513, 35th
Haier Smart Home Co., Ltd., Smart Home Co., Ltd., Floor, The Center,
Address Haier Information Industrial Haier Information 99 Queen’s Road /
Park, No.1 Haier Road, Industrial Park, No.1 Central, Central,
Qingdao City Haier Road, Qingdao Hong Kong
City
4006 999
Tel 0532-88931670 0532-88931670 +852 2169 0000
999
Fax 0532-88931689 0532-88931689 +852 2169 0880 /
Email finance@haier.com finance@haier.com ir@haier.hk /
III. SUMMARY OF THE GENERAL INFORMATION
Registered Address Haier Industrial Park, Laoshan District, Qingdao City
Historical Changes to the Registered Prior to the Company’s listing in 1993, the registered
Address address of the Company was No.165 Xiaobaigan Road,
Sifang District, Qingdao City, Shandong Province, and
has changed to the current address since 1994, during
which the address name was adjusted in line with the
change of name of the industrial park but the actual site
remains unchanged.
Business address Haier Information Industrial Park, Laoshan District,
Qingdao City
Postal code of the business address 266101
Website https://smart-home.haier.com/cn/
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Email 9999@haier.com
IV. PLACE FOR INFORMATION DISCLOSURE AND DEPOSIT
Newspapers and websites for annual Shanghai Securities News, Securities Times, China Securities
report disclosure Journal, Securities Daily
Stock Exchange Website for annual
report disclosure as designated by the www.sse.com.cn
CSRC
Other websites for annual report https://smart-home.haier.com/cn/ www.xetra.com
， ，
disclosure www.dgap.de https://www.hkexnews.hk
，
Department of Securities of Haier Smart Home Co., Ltd.,
Deposit place of annual report Haier Information Industrial Park, No.1 Haier Road, Qingdao
City
V. SUMMARIZED INFORMATION OF SHARES OF THE COMPANY
Summarized information of shares of the Company
Type of Shares Stock Exchange Stock Short Name Stock Code Stock Short Name
of Shares Listed Before Variation
Shanghai Stock
A-shares Haier Smart Home 600690 Qingdao Haier
Exchange
Frankfurt Stock
D-shares Haier Smart Home 690D Qingdao Haier
Exchange
Hong Kong Stock
H-shares Haier Smart Home 6690 /
Exchange
VI. OTHER RELATED INFORMATION
Name Hexin Certified Public Accountants LLP
Accounting firm
24th Floor, Century Building, No.39 Donghai Road
engaged by the Business Address
West, Qingdao City
Company
Name of signing Zhao Bo, Wang Lin
(domestic)
accountant
Name HLB Hodgson Impey Cheng Limited
Accounting firm 31st Floor, Gloucester Tower, The Landmark, 11
engaged by the Business address Pedder Street, Central, Hong Kong Special
Company Administrative Region
(overseas) Name of signing Jack, Tian Sun Kit
accountant
Financial Advisor Name Zheshang Securities Co.,Ltd.
responsible for No. 201, Wuxing Road, Jianggan District, Hangzhou
Business Address
continuing City, Zhejiang Province
supervision Name of signing
Yu Qichao, Wang Jian
during the financial advisors
reporting period Period of continuing 23 December 2020 to 31 December 2021
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supervision
Note:
(1) Accounting firm engaged by the Company (domestic and overseas): Pursuant to the motion for
the appointment of an auditor approved at the Company's 2020 Annual Shareholders' Meeting, the
Company engaged Hexin Certified Public Accountants LLP and HLB Hodgson Impey Cheng Limited
to issue the China Accounting Standards and International Accounting Standards auditing report
respectively for the Company’s 2021 annual report.
(2) The financial advisor is responsible for continuing supervision: The H shares of the Company
were listed and traded on the Main Board of The Stock Exchange of Hong Kong Limited on 23
December, 2020. In accordance with the relevant requirements of the Material Assets Reorganization,
as the independent financial advisor for the issue, Zheshang Securities Co., Ltd. performs continuous
supervision duties for the remainder of the year in which the H shares of the Company are listed and
one full fiscal year thereafter. In addition, the Company has engaged Anglo Chinese Financial Advisors
Limited (Address: 40th Floor, Exchange Square Phase 2, 8 Connaught Place, Central, Hong Kong;
Sponsor: Stephen Clark) as a compliance advisor in accordance with the requirements of the Hong
Kong Rules, which performs continuous supervision duties during the continuous supervision period
(for the remainder of the year in which the H shares are listed and one full financial year thereafter).
VII. KEY ACCOUNTING DATA AND FINANCIAL INDICATORS IN THE RECENT THREE
YEARS
(I) Key accounting data
Unit and Currency: RMB
Key accounting 2020 Yoy
data 2021 change 2019
Before
After adjustment (%)
adjustment
Operating revenue 227,556,143,618.17 209,723,430,081.03 209,725,821,099.44 8.50 200,761,983,256.57
Net profit
attributable to
13,067,038,271.85 8,883,129,055.16 8,876,593,208.19 47.10 8,206,247,105.96
shareholders of the
listed company
Net profit after
deduction of non-
recurring profit or
11,831,272,558.29 6,457,813,335.37 6,457,813,335.37 83.21 5,765,164,700.75
loss attributable to
shareholders of the
listed company
Net cash flows
from operating 23,129,640,417.72 17,609,513,831.64 17,599,111,715.51 31.35 15,082,630,942.73
activities
At the end of
2020 Yoy
At the end of At the end of
change
2021 Before 2019
After adjustment (%)
adjustment
Net assets 79,810,927,325.55 66,837,525,701.87 66,816,422,614.55 19.41 47,888,319,765.92
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attributable to
shareholders of the
listed company
Total assets 217,459,494,212.74 203,498,169,276.71 203,459,495,879.65 6.86 187,454,236,283.17
(II) Key financial indicators
2020 Yoy
Key financial indicators 2021 After Before change 2019
adjustment adjustment (%)
Basic earnings per
1.41 1.34 1.34 5.22 1.29
share(RMB/share)
Diluted earnings per share
1.40 1.31 1.31 6.87 1.19
(RMB/share)
Basic earnings per share
after deducting non-
1.27 0.97 0.97 30.93 0.90
recurring profit or loss
(RMB/share)
Weighted average return on
17.29 17.68 17.67 -0.39 19.12
net assets (%)
Weighted average return on
net assets after deducting
15.65 12.85 12.85 2.80 13.43
non- recurring profit or loss
(%)
Explanation of the key accounting data and financial indicators of the Company as at the end of the
reporting period for the previous three years
□ Applicable√ Not applicable
VIII. DIFFERENCES IN ACCOUNTING DATA UNDER DOMESTIC AND OVERSEAS
ACCOUNTING STANDARDS
(I) Differences in net profit and net asset attributable to shareholders of listed company in financial
report disclosed in accordance with International Accounting Standards and China Accounting
Standards
□ Applicable √ Not applicable
There is no difference between the net profit and net assets attributable to shareholders of the listed
company presented in the consolidated financial statements disclosed in accordance with International
Accounting Standards and China Accounting Standards.
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(II) Differences in net profit and net asset attributable to shareholders of the listed company in
financial statements disclosed in accordance with overseas accounting standards and China
Accounting Standards
□ Applicable √ Not applicable
Apart from the financial statements prepared in accordance with International Accounting Standards,
the Company did not prepared any financial statements in accordance with other overseas accounting
standards.
(III) Explanation on the difference between the domestic and overseas accounting standards:
□ Applicable √ Not applicable
IX. KEY FINANCIAL DATA OF 2021 BY QUARTER
Unit and Currency: RMB
Q3
Q1 Q2 Q4
(July-
(January-March) (April-June) (October-December)
September)
Operating revenue
54,773,701,753.64 56,845,120,311.09 58,344,749,484.03 57,592,572,069.41
Net profit attributable to
shareholders of the listed 3,053,933,589.63 3,798,338,223.34 3,082,339,695.41 3,132,426,763.47
Company
Net profit after deduction of
non-recurring profit or loss
attributable to shareholders of 2,823,027,182.06 3,446,879,224.66 2,785,809,654.46 2,775,556,497.11
the listed Company
Net cash flows from operating
2,863,386,935.66 5,560,436,791.23 4,935,460,348.29 9,770,356,342.54
activities
Explanation on the difference between quarterly data and disclosed regular reporting data
□ Applicable √ Not Applicable
X. NON-RECURRING PROFIT AND LOSS ITEMS AND AMOUNT
Non-recurring profit and loss items Amount in 2021
Profit and loss from disposal of non-current assets 95,443,538.78
Government subsidies included in current profit or loss, except for government 717,084,575.78
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subsidies that are closely related to the Company's normal business operations,
comply with national policies and regulations, and continue to be enjoyed in a
fixed amount or fixed quantity according to certain standards
Net profit and loss of subsidiaries arising from business combinations under
common control of the current period from the beginning of the period to the -1,015,618.64
date of consolidation
Profit and loss from fair value changes of financial assets held for trading,
derivative financial assets, financial liabilities held for trading and derivative
financial liabilities, as well as investment gains arising from disposal of
512,402,328.52
financial assets held for trading, derivative financial assets, financial liabilities
held for trading and derivative financial liabilities and other debt investments,
except the effective hedging related to the normal operations of the Company
Other non-operating income and expenses except the aforementioned items 60,282,401.05
reduction: Effect of income tax 135,105,480.15
Effect of minority equity interest (After Tax) 13,326,031.78
Total 1,235,765,713.56
XI. ITEMS MEASURED BY FAIR VALUE
√ Applicable □ Not Applicable
Unit and Currency: RMB
Affected amount to
Changes in the
Items Opening balance Closing balance profit of current
current period
period
Forward foreign
-58,007,371.41 142,380,197.33 200,387,568.74 439,056,947.32
currency contract
Wealth
management 1,862,036,322.21 2,168,622,090.00 306,585,767.79 60,499,015.46
products
Investment in
trading equity 83,949,637.05 330,557,610.82 246,607,973.77 46,729,587.36
instruments
Interest rate swap
-50,886,744.60 -19,684,900.48 31,201,844.12
agreement
Investment funds 113,759,845.57 150,516,274.37 36,756,428.80 18,097,485.77
Investment in other 2,659,025,265.54 4,848,709,438.96 2,189,684,173.42 58,558,795.05
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equity
instruments
Forward
commodity 25,644,774.08 6,997,783.42 -18,646,990.66
contract
Other derivative
financial 46,832,494.61 46,832,494.61
instruments
Total 4,682,354,223.05 7,674,930,989.03 2,992,576,765.98 622,941,830.96
XII. Others
□ Applicable √Not Applicable
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Section III Management Discussion and Analysis
I. DISCUSSION AND ANALYSIS ON OPERATIONS
In 2021, the Company realized sales revenue of RMB227.556 billion, representing an increase of
8.5% from 2020 and an increase of 13.3% from 2019. The Company disposed COSMOPlat in the third
quarter of 2020 and RRS Logistics in the third quarter of 2019. Excluding the impact from the disposal,
the Company's revenue growth in 2021 would have been 15.8% and 23.4% as compared to 2020 and
2019 respectively. Robust performance was driven by (1) strengthened high-end market leadership and
enhanced competitiveness in products and scenario-based solutions, while (2) accelerated global
coordination and growing online presence were vital to the expansion overseas, and (3) we also benefited
from continued distribution network expansion & increase in operation efficiency via end-to-end digital
transformation.
In 2021, the Company achieved net profit of RMB13.217 billion, an increase of 16.7% from 2020,
and an increase of 7.2% from 2019. Net profit attributable to the owner of the parent Company was
RMB13.067 billion, an increase of 47.1% from 2020 and an increase of 59.2% from 2019. (1) Faced
with escalating raw material and components costs, the Company still managed to expand gross profit
margin by 1.6 percentage points to 31.2% by leveraging on strong high-end revenue, efficiency initiatives
and disposal of low margin businesses. (2) Selling expense ratio was 16.1% and administrative expense
ratio was 4.6%. Excluding revenue of COSMOPlat in 2020, selling and administrative expense ratio in
2021 would have decreased by 1.1 and 0.5 percentage points respectively as compared to 2020 (including
COMSOPlat, selling expense ratio was 16.0% and administrative expense ratio was 4.8% in 2020). The
cost reduction was mainly due to continuous digital transformation in the Chinese market, rapid growth
overseas and improvement in operational efficiency. (3) Financial expense ratio reduced by 0.3
percentage points to 0.3%, this was mainly due to CB conversion, loan repayments and replacement of
high interest borrowings.
The Company's net cash flow from operating activities in 2021 was RMB 23.13billion, an increase
of RMB 5.52 billion from 2020 and an increase of RMB 8.047 billion from 2019, the growth was
attributable to greater profitability and enhanced efficiency. Net cash flow to net profit ratio was 1.75
during the reporting period.
）（ I Smart Home Business in China
In 2021, sales revenue from smart home business in China amounted to RMB 120.791 billion,
representing an increase of 22.2% from 2020. Operating profit grew by 27.5% to RMB 7.456 billion.
The growth was attributable to increase in market share and 40% revenue growth of Casarte brand as
well as distribution network expansion, accelerated digitalization and improved operational efficiency.
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1. Household Food Storage and Cooking Solutions (Internet of Food)
(1) Refrigerator and Freezer Business
In 2021, refrigerator business achieved sales revenue of RMB 41.743 billion, a year-on-year
increase of 21.4%. According to CMM, Haier’s market share increased by 2.1 percentage points to 41.3%
offline; and market share online went up by 2.7 percentage points to 37.8%.
The refrigeration industry has entered into the next stage of development where volume starts to
stabilize and growth driven primarily replacement demand.Users continue to look for larger storage
space with better preservation technologies, so we doubled the drawer space by moving the refrigeration
units from the back of machine to the bottom, we also introduced new hinge system to create the ultimate
seamless appearance, Casarte’s BCD-600 was an instant best seller contributing to the our market share
reaching 46.7%, in other words, up 2.8 percentage points in units priced above RMB 10,000; Casarte
also made breakthrough on ecommerce platforms where 30,000 units were sold during 618 Festival on
JD.com, the launch of Homey 505 and 506 series put us in no.1 in units priced above RMB 10,000 online.
Refrigerator business invests more in quality control, supply chain management and digital
transformation. During the reporting period, the Company implemented Super Factory Project targeting
capacity maximization, SKU concentration, global coordination and cost optimization, and we also
introduced 3A Engineers Programme and trained 100 cost management specialists.
In addition, enhanced competitiveness of large capacity T-door and French-style refrigerators
contributed to rapid growth in export revenue of units priced over US$1,000 and 1,000.
(2) Kitchen Appliance Business
In 2021, revenue of kitchen appliance segment reached RMB 3.496 billion, an increase of 26.1%
year-on-year, amongst which, Casarte’s revenue surged 95.1%, and its revenue contribution increased
by 7.4 percentage points to 22%. According to CMM, the Company’s market share grew 1.1 percentage
points offline to 7.1% and stayed flat at 5.2% online..
The Company remained committed to implementing high-end brand strategy with fast product
pipelines, introducing kitchen solution packages and improving store experience, while actively
developed partners from home improvement markets.
Meanwhile, dedicated effort was made to promote global coordination. R&D team in China worked
closely with FPA and GEA to develop new motor control technology that could deliver constant volume
of air flow using big data and algorithms. The new 12- square range hood could sense pressure, unclog
pipe and prevent blockage, the Five Ring stove could heat up the entire pan surface to the same
temperature, and built-in steamer ovens led the industry in revenue growth with 300 ℃ heating
temperature, precise control and dual water circulation system. Casarte's Asian style built-in dishwashers
were equipped with 7X cleaning system to provide 360° water coverage at 70°C for effective grease
removal. In 2021, dishwasher sales revenue grew 90% while Casarte’s dishwasher grew by 137.9%.
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During the reporting period, kitchen appliances segment prioritized efficiency improvement and
cost reductions in equipment, quality and production, realizing 35% increase in production capacity on
pre-processing lines without additional manpower. The Company gradually increased the proportion of
self-manufactured large metal parts in range hoods, stoves and ovens to 100%, contributing to increased
profitability.
(3) Internet of Food: integration of appliance and services to add value
Based on Smart Home cloud platform and Three-Winged Bird smart kitchen scenarios, the Internet
of Food integrated smart oven, digital cooking program and standardized pre-prepared dishes to provide
users with brand new experience where they can buy grocery from the oven screen and recreate master
chef’s dishes at home with just a simple click. Together with partners including Mengniu and Shuanghui,
the Company launched the industry’s first IoT-based platform specializing in pre-prepared dishes, since
then, a total of 387,000 roast ducks and 200,000 sets of Chinese New Year dinner have been sold,
realizing a 67% growth year-on-year. New application scenarios featuring B&Bs and offices were also
created.
2. Household Laundry Management Solutions (Internet of Clothing)
(1) Washing machine business
During the reporting period, the Company's washing machine business achieved sales revenue of
RMB 30.658 billion, representing a year-on-year increase of 18.0%. According to CMM, the Company’s
market share reached 43.1% offline, up 2.9 percentage points while market share grew by 0.5 percentage
points to 40.4% online.
In 2021, the Company consolidated high end leadership through continued innovation and captured
growth opportunities from new categories with Casarte’s Zhongzihemei ( 美和子中 )washer & dryer
combo, whose market share grew to 96.5% in top washer + bottom dryer category. The Company’s
tumble dryer revenue grew by 203% and led the market with 32.9% share offline and 24.5% shares online,
growth of 14.8 percentage points offline and 5.8 percentage points online respectively.
Despite pandemic resurgence, shipping constraints, rising commodity prices and currency fluctuation,
the Company remained committed to brand premiumization and mix upgrade in order to maintain solid
growth overseas.
(2) Internet of Clothing
The Internet of Clothing business started from simple washing machines, now it offers a full cycle
of smart scenario solutions including washing, fabric storages, and styling, During the reporting period,
in order to tackle stubborn stains, residual detergent and fabric discolouration, together with leading
detergent manufacturers, the Internet of Clothing team introduced washing machines featuring ink
cartridge type detergent dispenser in an attempt to create brand new experience of healthy and smart
colour care, a total of 160,000 units were sold in 2021.
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3. Air Solutions
During the reporting period, the overall air conditioning business achieved sales revenue of RMB
32.193 billion, an increase of 26.2% from 2020.
(1) Home air conditioning business
The Company adopted an efficient retail model and strived to breakthrough in the mid-to high-end
air conditioning market. We continued to accelerate channel integration, network expansion and scenario
experience upgrade. According to CMM, the Company’s market share increased 2.5 percentage points
to 16.8% offline in 2021, while the share online increased 2.4 percentage points to 13.6%. Meanwhile,
share in the high-end market (wall-mounted units priced above RMB 4,000 and standing units priced
above RMB 10,000) reached 20.2%, an increase of 5.2 percentage points.
By leveraging on multi-brand portfolio and strengthening technological innovation, the Company
filed 2,597 patents in 2021. (1) Casarte launched Galaxy series equipped with the industry's first full-
space constant-temperature air technology that enabled 360° coverage and speedy temperature
adjustment, contributing to the brand’s 56.7 % revenue growth. (2) Inspired by high-speed engines from
aviation industry, Haier launched air conditioners that could cleanse air at home with high-speed
centrifugal waterfall and multi-layer water spray technologies.(3) The household multi-split units
specialized in customized solutions for different user scenarios in the bedroom, kitchen and the basement,
providing users with fresh and healthy air at home.
During the reporting period, 620 new franchise stores specializing in air solutions were developed
with particular efforts made to increase presence in HVAC channels, the Company also capture the new
growth opportunities in lower-tier markets with the addition of 30,000 village sales outlets.
The export revenue maintained steady growth driven by speedy product iterations including health-
boosting air conditioner equipped with a LED-UVC module, Texcell in France verified its 99.998%
inhibitory effect on the novel coronavirus. Featuring a separated air supply system, the new ‘X’
split-type air conditioner could be disassembled in 28 seconds, making cleaning and maintenance much
easier, and this was recognized by SGS with the Easy-to-Clean 5-star rating certificate.
In addition, efficiency of product platform increased by 20% driven by greater production
concentration and manufacturing optimization, while specialized design, installation and service network
was fundamental to drive strong growth online.
(2) Commercial air conditioning business
The Company accelerated development of user-oriented scenario solutions. According to China IoL,
the Company's market share increased 0.9 percentage points to 10.7% offline in 2021.
Commercial air conditioner focused on product and technology innovations in IoT applications,
alternative source of energy and refrigerant. 1. IoT based multi-splits units received wide market
recognition from National Speed Skating Oval and projects in Shigatse prefecture of Tibet for remarkable
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energy-saving performance and advanced warning system. 2. With 50% market share (information
from China IoL), the Company has been leading the industry in maglev air conditioners since its first
introduction in 2006. Our latest energy efficiency, low-cost and low-noise maglev chiller was
widely used in projects including National Supercomputing Centre, Business Service Centre in Xiong ’an,
Underground Line 4 in Chongqing, People's Hospital in Shenzhen, and Shandong Energy Group. 3. The
Company was the first in the industry to introduce full-spectrum air conditioning unit which was widely
used in scenarios with complications such as hospitals in-patient wards, emergency rooms, operating
theatres and negative pressure isolation wards. This technology was also chosen by excavation site of
Sanxingdui for air disinfection and micro management of temperature and humidity level.
4. Household Water Solutions
The water heater and water purifier businesses achieved breakthrough with high-end differentiated
products in 2021 as revenue amounted to RMB 12.701 billion, a year-on-year growth of 24.3%.
(1) Water heaters
During the reporting period, the Company’s water heater business focused on providing safe,
and smart household water solutions. According to CMM, our market share grew 3.5 percentage
points to 28.1% offline and market share online amounted to 30.7%, with a rise of 3.4 percentage points
year-on-year. Revenue of Casarte water heaters grew 42.4%, with market share increase of 4.1
percentage points.
Gas water heater revenue grew by 51% leveraging on innovations in technology and
expansion in distribution network. According to CMM, the Company's market share in electric
water heaters was 41.7% online and 40.2% offline, representing increases of 4.0 and 3.7 percentage
points year-on-year. We launched Casarte Crystal Tank Galaxy series - the industry’s first water heater
without magnesium rod, significantly reduce limescale, leakage, rust and corrosions. Casarte’s revenue
was 1.8 times the runner-up in unit priced above RMB 8,000, partly driven by the best-selling mineral
springs bath specifically designed for skin care.
During the reporting period, the Company’s gas water heater achieved 51% revenue growth.
According to CMM, our market share grew 4.3 percentage points to 20.6% online, while market share
went up by 4.1 percentage points reaching 19.7% offline. The rapid growth was attributable to innovation
including gas-electric hybrid technology with optimal energy usages, contributing to our no.1 position
in water heater units priced RMB 8,000-10,000; dedicated efforts were made to enhance presence in
home improvement channels and building material markets while developing partnerships with interior
designers to capture growth opportunities from new houses and HVAC channels.
During the reporting period, Haier's air-powered heat pump water heater accelerated R&D of
health-oriented products specializing in high water temperature and water disinfection and we continued
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to lead the industry with market share of 64% offline and 58% online respectively; the Company also
made breakthrough by developing 7 out of 10 best-selling units priced above RMB 10,000.
(2) Water purifiers
The Company's market share in 2021 reached 11.6% offline1, realizing an increase of 1.7 percentage
points year-on-year, while ranking moved up by one place to number four.
During the reporting period, the Company adopted innovative RO+ mineral water system which
facilitates Casarte’s Yunzun ( 鱒雲 ) series in providing strontium-rich water solutions.
Supply chain capability was enhanced with the ramping up of new smart water purifier factory in
April, since then the Company has been manufacturing its own filter, water circuit board and moulding
modules, laying down solid foundations for future growth.
5. Strengthening network presence to expand user base; leveraging Casarte's leadership to
increase user value
During the reporting period, the Company adhered to retail transformation, network expansion and
user value enhancement leveraging on Casarte's high-end leadership. According to CMM, our overall
market share in China grew 2.3 percentage points to 25.1%.
1. Unlock growth potential with sales network expansion and omni-channel integration
Together with new national and regional partners from home improvement providers and
building material industries, 723 sales outlets were added to capture increasing traffic in home
improvement stores; the Company also promoted community-based micro stores that could offer laundry
and appliance repair services at users’ doorstep, thus building long lasting relationship at zero distance,
making our products and services packages a natural choice when users are looking to replace an aging
refrigerator or renovating the entire kitchen. On the other hand, 78,000 part-time sales representatives
were developed in the rural markets in order to raise our profile and promote consumption upgrade, all
of which increased our competitiveness, and contributed to revenue growth of over 20% in franchised
stores.
According to AVC, the Company led the industry with 28.8% growth online in 2021, during which
time, the Company actively worked with new partners including TikTok and Kuaishou, to capture young
users’ attention through innovative video clips and live streaming, this helped us become number one in
major home appliance on TikTok with the largest the number of fans and GMV. Over 90 million users
were identified as brand interest population, and membership from flagship store online exceeded 30
million. In addition, 10,000 new sales outlets were added in lower-tier markets in order to boost traffic
and average ticket price.
1
MMC :ecruoS
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(2) Casarte maintained strong momentum with record revenue
After 16 years of development, Casarte has successfully established itself as a leading brand of
cutting-edge technologies, outstanding quality and sophisticated taste. In 2021, its revenue grew by over
40% reaching RMB 12.9 billion. It also had 73.9% market share of washing machines priced above RMB
10,000; 36.2% market share of refrigerators priced above RMB 10,000, and 30.3% market share of air
conditioners priced above RMB 15,000.
6. Three-Winged Bird scenario brand creates smart home solutions that integrate appliances
with home improvements to grow user value
Increasing user demand for scenario based home appliances solutions unlocks significant growth
potentials, thus Three-Winged Bird made particular effort to enhance its scenario solutions, grow 1+N
service capability and expand distribution network.
During the reporting period, 1,317 scenario-based stores were added, covering more than 1,100
building material markets in tier one and tier two cities, the Company also upgraded Three-Winged Bird
APP, for example, users could place orders online while tracking the progress of their new kitchen, the
new hassle-free experience during the entire project was only made possible with Haier’s commitment
to create standardized comprehensive service and fulfilment practices.
During the reporting period, Three-Winged Bird focus on promoting comprehensive solution
packages, sales volume of high-end sets grew 62%, with its contribution increased 10.6 percentage
points to 37%; and sales volume of smart sets grew 15%, and its contribution up 2 percentage points to
17%.
7. Focusing on the development of a user-centred digital enterprise, the Company promoted
whole-process digital transformation to build a highly-efficient operation system.
In 2021, the Company focused on accelerating end-to-end digitalization in order to improve the
experience of distributors and users while enhancing internal operational efficiency. On one hand, the
entire user interaction process was consolidated on smart operating platform which then facilitated user
identification, interaction and maintenance throughout the life cycle. As a result, registered user increased
by 31 million to 204 million during the reporting period. On the other hand, greater efforts were made to
speed up the transition from ‘managing distributors’ to ‘helping distributors managing user data’. Online
contract system was launched to shorten the time required from new distributions when opening accounts
and developing stores, they also had digital tools to manage membership, logistics and services; sales
representatives were also able to promote products and maintain close user interaction through digital
middle platform, this resulted in 12.5% increase in average ticket size. In addition, 99% of personnel
managed their services online.
(2) The Company enhanced operational efficiency and user experience by digitalization in production
planning, inventory and operation management. 50% of the factories were capable of applying advanced
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algorithms and optimize turnovers, decision making significantly reduced to enhance flexibility in
production; physical boundaries removed with virtual management of inventory and services for optimal
user experience and enhanced efficiency
8. Promoting the continuous upgrading of intelligent manufacturing
By the end of 2021, the Company has built 18 smart factories. Haier’s third light house factory ---
Tianjin Washing Machine Smart Factory was recognized as the industry's first end-to-end lighthouse
factory in 2021 for precision in capturing user demand, flexible and efficient logistics and distribution
system, and low-carbon energy management system.
The Company remained committed to integrating new-generation information technologies of 5G,
artificial intelligence and digital twin with smart manufacturing, and was selected twice in a row by the
Ministry of Industry and Information Technology as ‘5G+ Industrial Internet’ model application
scenarios. In September 2021, the Sino-German washing machine factory, the central air conditioning
factory, Hefei refrigerator and washing machine factory passed the WEF Smart Industry Readiness Index
(SIRI) assessment and were chosen to represent home appliance industry in the ‘Smart Industry
Readiness Index Certification White Paper’. In December, the Sino-German washing machine factory
received 2021 Asia Communication Awards in recognition of its efforts in combining smart
manufacturing with 5G+MEC,
(II) Overseas home appliances and smart home businesses
During the reporting period, the Company delivered record revenue and profit from overseas
business. Sales revenue reached RMB 113.725 billion, an increase of 13.0%; operating profit amounted
to RMB 5.926 billion, a rise of 48.1%; operating profit margin reached 5.2%, a growth of 1.2 percentage
points from 2020.
The robust revenue and profit margin growth were attributable to fulfilling the needs of different
user groups with multiple brand portfolio, and continued iteration of user experience with innovative
products, where the proportion of high-end sales in the North America grew 2.6 percentage points, and
the proportion of high-end sales in Europe rose 5 percentage points. By using digital marketing tools, the
Company was able to seize the growth opportunities online while enhancing global supply chain
capabilities to boost manufacturing efficiency. In 2021, the refrigerator factory in Romania, the air
conditioning factory in Egypt, and the washing machine factory in India were put into production. In
addition, leveraging on global integration and collaboration, the Company managed to reduce the cost
impact from port congestion and chip shortages with initiatives including joint negotiations, resource
allocation optimization and strategic procurement.
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1 The North American market
With dedicated efforts made by the entire team, the Company’s revenue reached a record level of
RMB 70.277 billion in the North American market, representing a growth of 10.3% in RMB and 18.0%
denominated in USD. The growth was driven by the Company’s effort in product, brand and channel
innovations, acceleration of new businesses, and supply chain upgrade.
Market share and profitability were reinforced with successful new product launches including large
multi-door refrigerators, large size front-load washing machines, tall tub dish washers, professional oven
ranges and Café Wine Cabinets, contributing to over 40% revenue growth from our high-end
Monogram, Café and GE Profile brands. Specialists in Air and Water Team worked closely with
colleagues in China, and won Marriott Hotel contract in Austin, Texas Airport with Haier MRV5 units;
and DFS team signed serviced apartments project contract in Chicago. Small kitchen appliances revenue
doubled, driven by successful launches of several new series including Opal ice maker, which was named
Amazon’s Choice and Best sellers.
On the distribution front, the Company strengthened partnership with commitment and dedication.
We developed five new retail partners including Macy’s and were named Partner of the Year by Home
Depot, achieved steady revenue growth with buying groups, strengthened leadership in contractor
channel with double digit revenue growth; renewed contract with the largest property developer for
another three years; developed new partners from HVAC channel and established life style department
to cater for RV manufacturers. Revenue continued to double online in channels including Amazon. A
new zero distance channel was launched aiming to explore growth potential by creating seamless and
wholesome service that can be rewarded with lifelong user loyalty. The Company started building
Stamford Co-Creation Centre in September 2021 and plans to finish construction by second half this
year, by which time it will be the place for users to enjoy interactive, multi-dimensional and immersive
brand experience.
2. The European market
During the reporting period, the Company's European business achieved sales revenue of RMB
19.737 billion, an increase of 19.5% year-on-year.
In 2021, Haier brand continued to grow in price index and constantly outperformed the industry in
market share growth. The Company also optimized its product mix, with the launch of a variety of high-
end refrigerators and the 979 series large-diameter washing machines, the latter became No. 1 best seller
on Amazon Prime Day and Black Friday. In the meantime, the Company also accelerated online
growth, showcased high-end brand image and promoting brand stores and store-within-stores in
Germany.
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In Romania, the Company completed the construction of the new factory which specializes in
manufacturing high end refrigerators and it is designed to facilitate speedy response to local market
demand.
In addition, breakthrough was also made in building scenario-based ecosystem. The number of
registered users on hOn APP reached 4.5 million,
3. The Australian and New Zealand market
In Australia and New Zealand, the Company’s revenue grew by 17.3%, reaching 7.012 billion in
2021 and concentrated efforted continued to be made on product premiumization and network expansion.
During the reporting period, several new products include induction cooktops, insert ventilations
were introduced by FPA, we also started developing steamer ovens platform, all of which contributed to
33% revenue growth in kitchen appliances; we upgraded washing machines with low temperate UV
disinfection module and launched new tumble dryers, grew market share by 1.6 percentage points;
built-in refrigerator revenue grew by 60% thanks to the introduction of Column series and new four-door
series, particular efforts were made with comprehensive built-in range to capture opportunities in
construction channel.
4. The South Asian market
During the reporting period, sales revenue grew 30.5% to RMB 7.138 billion.
In India, the Company seized opportunities from consumption upgrade towards large-capacity and
health-oriented products, taking the lead in launching high-end side-by-side refrigerators and large-
capacity front-load washing machines, and the proportion of high-end revenue rose to 34%. Meanwhile,
the Company actively expanded the distribution network, realizing 94% coverage in franchised channels,
100% coverage in 5 national & 50 regional chain retailor and 82% coverage of rural markets. Installation
and equipment adjustment were carried out via video links to ensure the timely completion of
construction in Northern Industrial Park.
In Pakistan, the Company remained number one by taking a number of initiatives including the
launch of T3 air conditioner that could work under temperature as high as 56 ℃ , introduction of the
electric frequency-conversion refrigerator focusing on saving energy and advanced food preservation,
exactly what the users were looking for during the pandemic; meanwhile, sales revenue grew 150%
online with combination of Haier brand and newly introduced Candy brand.
5. The Southeast Asian market
During the reporting period, sales revenue grew by 15.0% to RMB 4.740 billion.
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The Company continued to strengthen technological and product leadership by launching large-
diameter washing machines and T-door refrigerators, the latter contributed to 4.7 percentage points
market share gain in Vietnam where distribution network coverage also increased to 100%, and the
Company introduced Candy brand in order to drive growth online in Thailand.
6. The Japanese market
In 2021, the Company realized sales revenue of RMB 3.491 billion, representing a year-on-year
decrease of 3.4% in RMB and a 6.3% growth in denominated in Japanese Yen. The aggregated market
share of refrigerators, freezers and washing machines reached 14.1%, and continued to be lead the
refrigeration segment with combined market share of 16.7% from refrigerators and freezer.
During the reporting period, the Company launched AQUA brand ultra-large TZ refrigerators and
upgraded Delie refrigerator series while renovated variable-frequency washing machines with ultrasonic
technology and introduced best-selling high-end front-load washer-dryer combo whose revenue
contributed reached 25% in December.
In addition, community-based laundry business continued to lead the industry with market share of
70%, the Company worked closely with partners including FamilyMart, P&G, ENEOS petrol stations
and MUJI, to add over 100 scenario-based stores specializing in laundry, clothing, food, and
transportation solutions.
(3) Establish incentive mechanism to unlock individual’s potential
In 2021, a new incentive system was established to unlock the fullest potential of our people, while
aligning long-term and short-term interest with shareholders. The Company successively launched the
A-share Core Employee Stock Ownership Plan, the H-share Core Employee Stock Ownership Plan, the
H-share Restricted Share Unit Scheme and the long-term A-share Options Incentive Scheme, in order to
provide complete coverage of core employees home and abroad over different vesting periods including
short, medium and long term, in order to accelerate the implementation of smart home strategies, attract
and retain talents thus creating greater value for shareholders with sustainable development in the long
term.
II. INTRODUCTION OF THE INDUSTRY WHERE THE COMPANY OPERATES DURING
THE REPOTING PERIOD
(I) Industry Overview for 2021
1. The Chinese Market
In the face of a complex and volatile domestic and international environment in 2021, China's
economy continued to steer development towards high-quality growth. In terms of the home appliance
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industry as a whole, it has entered the development stage focusing on replacement. Overall sales demand
became stable, and the average product price was enhanced due to product upgrade. Aggregated data
from CMM showed that the retail sales of China's major home appliance market reached RMB 481.8
billion in 2021, a year-on-year growth of 8.5% from 2020; the retail sales of the kitchen appliance market
was RMB 231.9 billion, a year-on-year increase of 8.7%.
By category: (1) The refrigerator and washing machine industries have benefited from average price
increase brought about by continuous product upgrade, retail revenue continued to grow. According to
data from CMM, retail sales of the refrigerator and washing machine industries reached RMB 98.1 billion
and RMB 73.5 billion respectively in 2021, representing growth of 7.6% and 7.3% respectively as
compared to 2020. (2) Impacted by factors including the real estate slowing down and the summer
temperature lower than previous years, retail sales of the air conditioning industry reached RMB 157.6
billion with a slight growth of 0.5%. (3) With increasing popularity of integrated stoves, which has
substitution effects on traditional kitchen appliance products such as range hoods and gas stoves and as
data from CMM showed, retail sales of the range hood industry in 2021 amounted to RMB 38.2 billion,
representing a growth of 7.0% as compared to 2020; retail sales of the integrated stove industry reached
RMB 26.7 billion, representing a surge of 43.5% from 2020. (4) The water heater industry’s overall
performance was stable, with retail sales amounted to RMB 60.8 billion, up 0.8% from 2020. (5)
Emerging categories such as clothes dryers and dishwashers have entered a stage of rapid growth after
years of incubation: according to CMM’s statistics, the retail sales of dishwashers reached RMB 11.3
billion in 2021, a rise of 20.2% from 2020; the retail sales of clothes dryers amounted to RMB 7.6 billion
in 2021, a jump of 123.5% compared to that of 2020. (6) The pandemic has caused people to stay home
for extended period of time, alongside product innovation, user demand for cleaning appliances and
emerging small kitchen appliances have been stimulated. For instance, according to data from CMM,
retail sales of cleaning appliances reached RMB 27.8 billion in 2021, an increase of 23% year-on-year.
According to statistics from Euromonitor, the sales volume of air fryers in the Chinese market recorded
a year-on-year growth of 37% in 2021.
As the market as a whole entered the development stage focusing on replacement, users’ concerns
and industry trends have displayed new characteristics.
(1) When purchasing products, users shifted their focus solely on functionalities and cost-
effectiveness to a comprehensive consideration of brand identity, diversity of experience, design
originality of products.
(2) In terms of industry development trends:
Firstly, against the backdrop of quality-of-life improvements, especially under the influence of the
pandemic, users' health awareness has greatly enhanced, leading to increased sales opportunities for
health-conscious and smart home appliances. For instance, smart large-sized refrigerators, freshness
preserving refrigerators and T door refrigerators have fulfilled user’s needs for healthy diets, product
intelligence, and refined storage space. Products such as washers with health-boosting sterilization
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features, washer dryer combos and smart washing machines have offered enhanced laundry and garment-
wearing experience. Air conditioning products have also transitioned from simple temperature
adjustments to provision of a healthy and comfortable environment. Products featuring fresh air,
sterilization, air purification, and self-cleaning functions were favoured by the public.
Secondly, consumption upgrade continued: CMM data showed that in the offline market, the share
of retail sales of refrigerators with unit price above RMB 15,000 has grown from 8% in 2020 to 13% in
2021.
Thirdly, suite-oriented and scenario-based integration of home appliances and household space has
become an established trend. The industry has gradually transitioned from single product retailing to the
sales of scenario-based solutions. In terms of product experience, home appliance product suites offered
a unified design style, enabling product appearances to be more in line with modern aesthetics and texture.
In terms of sales and services, compared to purchasing single products from different brands, purchasing
product suites from the same brand could save time and hassle in product delivery, installations and after-
sales services, which is in line with the trend of efficient and convenient consumption. In the context of
continuous pursuit of quality of life, users of home appliances, in addition to functional needs, look for
overall integration of home appliances and home environment, which could bring forth the experience
of improved home aesthetics and enhanced space utilization. From enterprise’s point of view, product
suites could increase the average order value, avoid losing customers, and achieve synergies between
strong and weak product categories. Enterprises equipped with product suite competitiveness would have
an edge in future competition. However, the development trend of product suites has raised the bar for
companies in the industry in terms of cross-category design, planning and scenario development
capabilities. It requires companies to conduct resource allocations across different product categories.
In terms of channel development trends: (1) Livestreaming e-commerce as part of online
channel has developed rapidly. According to the information of AVC, transaction value from
livestreaming e-commerce has exceeded RMB1.09 trillion in the first half of 2021. Compared to
traditional e-commerce which mainly displays product information through text and images,
livestreaming e-commerce is clearly advantageous in terms of interaction and user experience, making
it easier to motivate users. At the same time, introduction and product comparisons offered by KOLs can
also save users' time in decision making. (2) The continuous increase in user demand for personalization,
household customization and improvement in indoor space utilization has driven the development of
integrated sales of complementary home appliances and home furnishing via offline channels. In
particular, the building material channel is highly suitable for the promotion of the sales of high-end and
smart product suites of home appliances in the form of scenario-based solutions. Home appliance
enterprises have proactively strengthened sales networks in household building material outlets, so as to
attract users at the early stage when they are still designing and planning for home renovation, and
maximize average revenue per user through the sales of product suites.
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Export markets: due to recovery of the global market as well as continuous stability of the
production and supply capacity of China's home appliance industry chain, China's home appliance
exports have continued to grow in 2021. According to data of Industry Online ( 线 在业产 ), the annual
export volume of household air conditioners, refrigerators and washing machines in 2021 have increased
by 9.7%, 4.8% and 9.9% year-on-year respectively. However, challenges such as rising raw material
prices and surging shipping costs remained in 2021, which have placed pressure on export profitability.
2. Overseas markets
The global economy has gradually recovered in 2021. The global GDP was expected to grow 5.9%
in 2021 according to the forecast by the International Monetary Fund. Based on the information from
GfK, the global retail market for home appliances (including major white goods, small home appliances
and consumer electronics) was expected to reach USD 560 billion in 2021, with retail sales increased by
10% year-on-year. Specifically, the retail sales of major white goods have increased 13% year-on-year
due to product upgrades and average price hikes, whereas small home appliances have increased 6%.
By market:
(1) The U.S. User demand for appliances remained robust throughout the year in the U.S. because
of easing economic uncertainties, stimulus packages, and increased time at home. Major appliances
market resumed to 4.3% volume growth after two consecutive years of decline in sales volume. On the
other hand, the industry was under constant challenges from sharp increase in raw materials, Covid
related labour shortages, and port congestion.
(2) Europe: The pandemic has led to a continuous increase in user demand for home appliances
in the large-capacity and healthy-living categories. Overall industry performed well. According to
statistics from GfK, the sales volume and sales revenue for major home appliances in 25 major European
countries in 2021 have increased by 3.9% and 9.5% year-on-year respectively.
(3) South Asia. ① India: As the pandemic developed to a later stage, users increasingly favoured
products with large-capacity and health-conscious features. E-commerce has developed rapidly in the
past two years, with the proportion of online sales of home appliances steadily increased. ② Pakistan:
Despite depreciation of the rupee and the pandemic’s impacts on residents' willingness to consume,
health-boosting and smart products were gradually recognized by users. For example, energy-saving
variable-frequency refrigerator series and large-volume freshness preservation refrigerator series have
gradually become mainstream products.
(4) Southeast Asia: As the pandemic has impacted the local tourism industry and affected
consumption, performance in major markets were sluggish. According to data from GfK, the sales
volume of refrigerators in the Thai market increased 1%, the sales volume of household air-conditioners
dropped 1.7%, and the sales volume of washing machines rose 1.1%. In Indonesia, the pandemic has led
to increased unemployment and stagnant or declining wages, thus affecting the purchasing power of the
society.
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(5) Australia & New Zealand: ① Australia: The industry maintained its growth momentum in
the first half of the year. However, channel sales of home appliances were greatly hampered in the second
half of the year due to pandemic related lockdown. The size of the industry in 2021 remained the same
as 2020. ② New Zealand: The pandemic has led to prolonged home office hours for local residents,
which stimulated the demand for home renovation and refurbishment, and drove the development of the
real estate market. User demand for home appliances increased accordingly. According to the home
appliance import data from local customs, home appliance imports grew 11.9% in 2021.
(6) Japan: Affected by the withdrawal of government subsidies, multiple state of emergencies
caused by the pandemic, negative economic growth and other factors, the white goods industry
experienced sluggish growth: sales volume of the refrigerator industry has dropped for two consecutive
years, and sales revenue in 2021 has tumbled 4.3%; for the freezer industry, due to pull-forward demand
in 2020, growth in 2021 has lowered to 1.8%. The washing machine industry was benefited from the
continuous optimization of product mix, and proportion of front-load and variable-frequency products
continued to grow. Although sales volume dropped 3%, sales revenue rose 3% year-on-year.
(II) Industry Outlook for 2022
1. The Chinese market:
In the medium to long term, with the acceleration of the new urbanization, the steady increase of
residents' income, the continued expansion of the middle-income group and the improvement in social
welfare in China, the purchasing power and consumption willingness of residents grows stronger. The
home appliance market still has great upside potential. Changing user attitudes will drive the continuous
upgrade of product mix, bringing growth opportunities to high-end, high-quality home appliances. For
products such as small kitchen appliances and range hoods, there are significant gap in the penetration
rate between rural and urban areas. Room for growth is huge as driven by improvements in users' quality
of life and the expansion of product categories.
Looking ahead to 2022, the home appliance industry faces both challenges and opportunities:
seeking progress while maintaining stability, strategic initiatives to expand domestic consumption will
stimulate further demand, increased uncertainty in commodity prices due to global impact. According to
CMM's forecast, the size of China's major home appliance retail market will reach RMB 492.4 billion in
2022, representing an increase of 2.2% year-on-year; the retail size of the kitchen appliance market will
grow 6% to RMB 246.4 billion. Product mix enhancement and product iterations triggered by
consumption upgrade will continue to bring positive impact. User demand will become more segmented.
Sub-categories of home appliances such as products that improve quality-of-life will enter a period of
rapid growth.
Export markets: From 2020 to 2021, the global home appliance market was affected by the
pandemic and the supply chain of overseas markets was impacted. China's home appliance industry has
filled the supply gap in the global home appliance market with its efficient supply chain system, home
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appliance exports from China has grown strongly. It is expected that in 2022, the export market will face
certain pressure due to factors such as the recovery of supply chains in overseas markets and increase in
overseas production capacity.
2. The global market:
According to the International Monetary Fund's GDP growth forecast for major economies in 2022,
major economies and countries around the world will continue the trend of recovery but at a slower pace.
Global growth is expected to be at 4.4%. Meanwhile, international trade barriers, supply chain
disruptions and the impact of the pandemic will continue to have profound impacts on the global home
appliance industry in 2022.
According to GfK's forecast, the size of the global home appliance industry will reach USD 575.2
billion in 2022, with an expected growth of 3%. From the perspective of industry development trends,
quality consumption will further drive product upgrades, product innovation and expansion of product
intelligence; users will prefer products with higher energy efficiency in the context of climate change
and energy shortages; as the impact of the pandemic weakens and vaccination rate further improves,
markets in countries that are previously heavily affected by the pandemic will further recover. On the
other hand, there are unfavourable market factors at play. The outbreak of war in some region will have
impacts on regions and countries as well as posing certain challenges to upstream costs and supply chains
of the global home appliance industry.
III. INTRODUCTION OF THE COMPANY’S BUSINESS DURING THE REPORTING
PERIOD
Founded in 1984, the Company is committed to being an enterprise of the times. Through relentless
innovation and iterations, we seize opportunities in the industry by continuously launching new products
that steer market development. After more than 30 years, the Company has become a global leader in the
major home appliance industry, as well as a pioneer in global smart home solutions.
Global leader of the major home appliance industry: According to data from Euromonitor—an
authoritative market researcher, the Company ranked first in terms of sales volume in global major
appliance market for 13 consecutive years. The Company has a global portfolio of brands, including
Haier, Casarte, Leader, GE Appliances, Candy, Fisher&Paykel and AQUA. From 2008 to 2021, Haier
brand refrigeration and laundry appliances ranked first among major home appliance brands in sales
volume for 14 and 13 consecutive years respectively.
Pioneer of global smart home solutions: Capitalizing on our full-range home appliances products,
the Company is recognized by Euromonitor as one of the first in the industry to introduce smart home
solutions. Leveraging our connected home appliance products and partners, supported by Haier Smart
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Home APP, Three-Winged Bird APP and Haier Smart Home Experiential Cloud Platform, with
integration of experience centres and franchised stores, the Company provides users with smart home
solutions for a variety of application scenarios, satisfying their pursuit for a better life.
Over the years, the Company has established three business segments, namely the Chinese Smart
Home Business, the Overseas Home Appliance and Smart Home Business, and Other Business.
Smart Home Business in China
The Company provides a full range of home appliance products and value-added services in China
market through Haier Smart Home APP and Three-Winged Bird APP, supplemented by our offline
experience centres, in order to cater for users’ needs for different lifestyle scenarios. Smart Home
Business in China comprises Household Food Storage and Cooking Solutions (Internet of Food),
Household Laundry Solutions (Internet of Clothing), Air Solutions (Internet of Air), and Household
Water Solutions (Internet of Water).
Household Food Storage and Cooking Solutions (Internet of Food): Through selling in domestic
market and exporting products such as refrigerators, freezers, kitchen appliances and value-added
services, including smart cooking and nutrition planning, the Company fully addresses users’ need for
convenient, healthy and tasteful gourmet experiences.
Household Laundry Solutions (Internet of Clothing): Through selling in domestic market and
exporting products such as washing machines, dryers and value-added laundry services solution such as
smart dispense of laundry detergent, the Company satisfies users’ demand for washing and caring of
apparels in a comprehensive manner.
Air Solutions (Internet of Air): Through domestic sales in China and exports, the Company
provides home air-conditioners, commercial air-conditioners, purifiers, fresh air systems, as well as
comprehensive range of solutions including coordination of multiple air-conditioners and purifiers,
adaptive air flow, air quality monitoring and air disinfection.
Household Water Solutions (Internet of Water): Through selling in domestic market and exporting,
the Company provides users with electric water heaters, gas water heaters, solar water heaters, heat pump
water heaters, POE water purifiers, POU water purifiers, water softening equipment, at the same time,
we offer smart water solutions including interactions between water heaters and purifiers, and between
heating appliances and water heaters, so as to comprehensively cater to users’ needs for water purification,
softening and heating.
Overseas Home Appliance and Smart Home Business
In addition, the Company manufactures and sells a comprehensive portfolio of home appliance products
and provides value-added services in more than 160 countries and regions, including North America,
Europe, South Asia and Southeast Asia, Australia and New Zealand, Japan, Middle East and Africa.
In the overseas market, the Company has been manufacturing and selling proprietary appliance
products catering for local users’ demands for more than 20 years. During the time, a number of
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acquisitions contributed to our growth including acquisition of Haier Group Corporation’s overseas
white goods business (Sanyo Electric Co., Ltd.’s white goods business in Japan and Southeast Asia) in
2015, home appliances of GE in the US in 2016, Fisher&Paykel in 2018, and Candy in 2019. The
development of the Company’s overseas businesses has been fuelled by synergies among our self-
developed business and our acquired businesses.
At present, the overseas business of the Company has entered a stage of promising growth, having
achieved a multi-brand, cross-product and cross-regional presence on a global basis. According to
Euromonitor, the Company's share of the global market (retail volume) for major home appliances in
key regions in 2021 is as follows: ranked first in Asia in terms of retail volume, with a 20.4% market
share; ranked second in America, with a market share of 15.1%; ranked second in Australia and New
Zealand, with a market share of 11.6%. The Company ranked third in Middle East and Africa with a
market share of 7.4%, and ranked fourth in Europe with a market share of 8.1%.
Other Businesses
Building on our established smart home businesses, the Company has also developed small home
appliances, channel distribution and other businesses. In particular, the small home appliance business
primarily involves small home appliances designed by the Company, produced by outsourced third-
party manufacturers and sold under the Company's brands, which serve to enrich our smart home
solutions product mix. The channel distribution business primarily offers distribution services for
products such as televisions and user electronics for the Haier Group or third-party brands, which
leverages the Company's sales network.
During the reporting period, the Company was once again listed among the Top 500 World’s
Companies by the Fortune Magazine, up 30 places as compared to 2020. We are named as the ‘2021
World’s Most Admired Companies’ by the Fortune Magazine. We are the only company being selected
in Europe and Asia in the home appliances industry, and are the only selected company incorporated
outside the US. Meanwhile, the Company is also the world’s only Internet-of-Things (IoT) ecosystem
brand being named again as BrandZtm Top 100 Most Valuable Global Brands in 2021.
IV. ANALYSIS ON CORE COMPETITIVENESS DURING THE REPORTING PERIOD.
√ Applicable □ Not Applicable
The Company has established a solid strategic presence and competitive advantage in China and
overseas markets. In China's major home appliance market, the Company has long maintained a leading
position across all product categories. According to CMM's report, the Company has established a
continued leading market position in key major home appliance categories in 2021. In overseas markets,
the Company has adhered to its high-end brand creation strategy, building capacity to create leading
sustainable growth, which has continuously improved its market shares. Building on this foundation, the
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Company will further consolidate its leadership position in the industry by leveraging integrated
synergies of its global unified platforms, through efficiency transformations driven by digitalization, and
by leveraging its technological strengths and innovative capabilities. As cornerstone for sustainable
development, our ‘Rendanheyi ( 一合單人 )’ Model also provided management guidance to the Company,
and enabled us to replicate successful experiences. It is believed that the following advantages will help
the Company to continue to strengthen its leading position:
(i) Dominance in China's high-end market; rapid growth of overseas high-end brands
Riding the trend of consumption upgrade in China, the Company has started to develop the high-
end brand Casarte in the Chinese market more than 10 years ago. The creation of high-end brands
required not only focus, experience and patience, but also continuous innovation of technological
standards and differentiated service capabilities to fulfil user demand for high-quality experiences. The
Casarte brand combined the Company's global technological strengths, product development capabilities
and manufacturing craftsmanship, as well as privilege marketing and differentiation services, and has
gradually won the trust of users in China's high-end market. According to data from CMM, the Casarte
brand has assumed a definitive leading position in China's high-end major home appliance market in
2021, ranking first in the retail sales of refrigerator, washing machine and air conditioner categories in
the high-end segment. Specifically, in terms of offline retail sales, shares of the Casarte brand of washing
machines and refrigerators reached 73.9% and 36.2% respectively in the market with product price above
RMB 10,000 in China, while its share of air conditioners priced above RMB 15,000 in the China's market
reached 30.3%. Our overall average price for refrigerators, air conditioners and washing machines was
roughly two to three times the average price of the industry.
In the North American market, the Company owns high-end brands such as Monogram, Café, and
GE Profile. The Company has enhanced its high-end brand profile through launch of trending products
such as high-end professional gas range, large multi-door refrigerators, ultra-fresh dishwashers with
stainless steel interior, Opal ice makers, and automatic espresso machines. For instance, the Monogram
high-end professional gas range earned recognitions such as the ‘2021 Design Excellence Award’ (from
the reputable magazine Architectural Design), GE Profile's smart induction oven range equipped with
interior-facing camera CookCam was named ‘Applause-Worthy Appliances’ by Good Housekeeping's
Kitchen Appliance Awards in 2021. Through the creation of luxurious, customizable and smart
technology-enabled user experience, our high-end brands Monogram, Café and GE Profile have grown
rapidly. In 2021, these three high-end brands have increased their revenue in the US market by more than
40% year-on-year.
(ii) Smart household solutions that continue to expand and upgrade
As users continued to demand for higher living quality, coupled with the development of
technologies such as Internet of Things, big data, cloud computing and artificial intelligence, the industry
has shown a smart and high-end development trend that prioritized product suites, based upon scenarios,
and home appliances integrated with home furnishings. With leading user insights, extensive product
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coverage and technological accumulation from intelligent AI algorithms, home big data and IoT
equipment technology, the Company provided scenario solutions such as food storage and cooking
management, clothes laundry and mix-and-match management, whole-house air comfort and purification
management, and healthy drinking water management for five major spaces at home, including the living
room, kitchen, bathroom, bedroom and balcony, thereby ‘Designing a home, building a home, and
serving a home’ for users.
Three-Winged Bird stores provided users with scenario solutions that integrates smart home
appliances and smart home furnishings, and through having a service steward to attend to the needs of
users throughout the process, through coordination and arranging with the internal specialised team,
providing users with a whole-process service that comprised design and implementation, building
materials selection, as well as installation and fulfilment. For example, the Three-Winged Bird kitchen
scenario solution could provide users with a whole-process service from a suite of smart kitchen
appliances to cabinet design, delivery, installation and fulfilment.
Based on the Haier Smart Home Brain platform, users could upgrade the functions of smart home
appliances, enjoy services such as professional fitness training, recipe recommendations, purchase of
ingredients through refrigerator, automatic selection of laundry programs, and personalized scenarios
through interfaces including the Haier Smart Home App and the Xiaoyou Speaker. In the future, the
Company will continue to address the needs of user experience, and to further improve and enrich the
smart home solutions provided by the Company. Through scenario solutions and ecosystem services, the
Company will provide lifelong services for users and further enhance users' loyalty.
(iii) Extensive and solid global presence with localized operational capability
In addition to success in the Chinese market, the Company also prospered in overseas markets. The
Company seeks overseas expansion of its own brands as well as synergies with acquired brands to
develop overseas markets. Such business strategy has guided the Company to establish R&D,
manufacturing and marketing three-in-one structure across multiple brands, products and regions, as well
as the model of self-development, interconnection and synergized operation.
The Company's extensive global presence depends on its localized business teams as well as its
flexible and autonomous management mechanisms established in various overseas markets, which have
enabled the Company to gain rapid insights and respond swiftly to local user demands. The Company
also proactively integrates into local markets and cultures, and has established a corporate image that is
recognized by local communities in the overseas regions where the Company operates.
In 2021, the Company operated 10 R&D centres, 122 manufacturing centres, and 108 marketing
centres around the world, and achieved a coverage of nearly 130,000 point of sales in overseas markets.
(iv) A comprehensive portfolio of proprietary brands recognised by users of all tiers
Through organic growth and acquisitions, the Company has formed seven brand clusters, including
Haier, Casarte, Leader, GE Appliances, Candy, Fisher&Paykel and AQUA. To address the needs of users
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from different tiers in various markets around the world, the Company has adopted a differentiated multi-
brand strategy in different regions that centred around users, so as to achieve an extensive and in-depth
user coverage. For example, in the Chinese market: the three brands of Casarte, Haier and Leader
achieved the coverage of high-end, mainstream and niche market groups respectively; in the U.S. market,
the six major brands such as Monogram, Café, GE Profile, GE, Haier, Hotpoint comprehensively
covered all segments of high-end, mid-range and low-end markets, thereby meeting the preferences and
needs of different types of users.
(v) Cross-border acquisition and synergy realisation capabilities
The Company has an excellent track record of acquisition and integration. The Company has
acquired Haier Group Corporation’s overseas white goods business, including Sanyo Electric Co., Ltd.’s
white goods businesses in Japan and Southeast Asia in 2015, the home appliance business of General
Electric in the US in 2016, the New Zealand company Fisher&Paykel (which has been entrusted by the
Haier Group since 2015) in 2018, and the Italian company Candy in 2019. The Company's capability to
perform acquisition and integration is reflected in the following: First of all, the Company implements
the ‘Rendanheyi ( 一合單人 )’ Model in the acquired companies, which is a value-added sharing
mechanism for the whole-process team under a common goal. Such model can motivate the acquired
companies and their employees, and enable them to generate more value. Secondly, the Company made
use of its global platform to empower the acquired companies in terms of strategic planning, R&D and
procurement in order to enhance their competitiveness. Thirdly, the Company's open and inclusive
corporate culture can support the acquired companies in establishing a flexible and autonomous
management mechanism, which can easily earn recognition from the acquired companies and is
conducive to the promotion of integration.
(vi) Comprehensive and in-depth global collaborations and empowerment
The Company has made full use of its global collaborative platform, as well as its integrated
functions of R&D, product development, procurement, supply chain, sales and brand marketing. It was
able to share and expand its successful market development experience to various markets around the
world. By strengthening the synergies among its global businesses, the Company has created a strong
driving force for its future development.
Global collaborative R&D: The Company has a global collaborative R&D system and has
established global technology R&D mechanisms to share common modules, utilize common
technologies, and share patents within the scope of compliance. For example, ① the Company
successfully applied the direct-drive motor technology developed by Fisher&Paykel to the Casarte brand
of washing machines and achieved satisfactory results. ② integrating global R&D platform resources
and leveraging technologies around the globe, such as China's product structures and hydraulic
technology, Japan's functional design technology, New Zealand's driver system, and the American
control system, we launched the GE brand’s large-volume front-load washers in the U.S. market, which
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has led to increases in both the market share and average price of washing machine products in the U.S.
market.
Global collaborative product development: The Company has established a global product
development mechanism to coordinate global collaborative product development, which can enable
regional collaboration and supplementation across product categories. For example, the Company
successfully supported GE Appliances to relaunch water heater business: the development teams in North
America and China are highly integrated, benchmarking the differences in standards between Haier and
products in North America. Haier's R&D advantages were combined with GE Appliance’s quality
assurance system to jointly develop the product. The resulting electric water heater product has achieved
industry leadership in terms of design, manufacturing and inspection, with annual sales of more than
50,000 units, thus providing solid support for GE brand’s water heaters to successfully enter the North
American market.
Global collaborative procurement: The Company's global procurement activities are
coordinated by its global procurement guidance committee. By leveraging the Company's global
procurement operations platform, the Company's operating divisions in different regions can share global
procurement resources, thereby achieving economies of scale.
Global collaborative supply chain: The Company has a visualizable and digitalized global
supply chain management system, which has enabled flexible deployment of global production capacity,
and sharing and collaboration in the development of smart manufacturing technologies.
Global collaborative marketing and brand promotion: the Company operates a multi-level
brand portfolio on a global scale, which can realize global collaborative brand promotion. The Company
also promotes and introduces successful marketing strategies among regional markets around the world.
For example, the Company successfully replicated its sales and marketing model from third and fourth-
tier markets in China, in markets such as India, Pakistan, and Thailand, which have strengthened the
Company's brand image and its regional market competitiveness.
(vii) Industry-leading R&D and technological capabilities
To ensure better living experience for users, the Company has established a global leading R&D
system under the premise of developing original technologies, thereby using original technologies to
support the overall industry-leading positions of the Company’s high-end brands, scenario brands and
ecosystem brands.
The State Science and Technology Progress Award: In 2021, Haier Smart Home received another
State Science and Technology Progress Award, ranking first in the industry with a total of 16 awards.
Leadership in terms of patent quality: As of December 2021, Haier Smart Home has accumulated
more than 75,000 patents applications globally, of which invention patents accounted for more than 63%.
The number of overseas invention patents exceeded 14,000, making us the Chinese home appliance
enterprise with the largest number of overseas patents. The Company also accumulated 10 state patent
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gold awards, ranking first in the domestic market. In the ‘Global Smart Home Invention Patent Ranking’
in 2021, Haier Smart Home once again topped the list, ranking first in the world for six consecutive times.
Leadership in terms of international standards: As of December 2021, Haier Smart Home has
cumulatively led and participated in formulation of 82 international standards and 602 state industrial
standards. It is the only company in the industry to obtain comprehensive coverage in the five major
international standard organizations, namely the IEC, ISO, IEEE, OCF and Matter. It is also the only
enterprise in the world to serve on the IEC Board and the IEC Market Strategy Board at the same time,
which have enabled the Company to stay actively involved in international standardization work and
have a voice in the formulation of standards.
Leadership in terms of original technologies: In 2021, the Company has innovated a range of
solutions that exceeded users' expectations, such as the launch of the Casarte’s ‘simultaneous five-ring
fire’ gas stove, which enlarged the pot heating area by 40% through the use of multi-ring uniform
combustion system, ingredients in the pot could therefore be more evenly and comprehensively heated.
The Company also introduced the Casarte’s Zhongzihemei all-in-one laundry machine that could
perform the three functions of washing, fabric-caring and drying in the same machine; through
continuous iteration of original technologies, it solved the three major pain points of high-end washing,
drying and fabric-caring. We therefore created a new product category in the laundry industry and has
continued to increase our market share of high-end washing machines.
Leadership in terms of innovative ecosystem: In 2021, with approval of the Ministry of Industry
and Information Technology, Haier spearheaded the establishment of the National High-end Intelligent
Household Appliances Innovation Centre, which is the only national-level manufacturing innovation
centre in the field of home appliances. By centring on the development direction of high-end, smart and
scenario-based home appliances, the Centre focuses on breaking through a number of critical common
technologies in the technological fields of ontology, intelligence, security and scenario application, so as
to enhance the technological innovation level and product competitiveness of China's high-end smart
home appliance industry.
Our HOPE platform, as Haier's window for external technology collaboration, tracks, analyses and
researches technologies closely related to industry development that are 3-5 years ahead of time, and
promotes the industrialization of related technologies, continue to build on the core methodologies of
user insights, demand analysis, technology analysis and resource assessment, while brings together the
supply and demand side of technologies, knowledge and creativity, providing interactive scenarios and
tools to facilitate the creation and iterations of innovative products/scenarios. Taking Haier's air
conditioner’s ‘variable shunt technology’ as an example, through collaboration with relevant experts, 36
patents have been applied for the technology, including 4 PCT international patents. According to results
from a real device test conducted by CHEARI (Beijing) Certification & Testing Co. Ltd., the energy-
efficiency of a 1.5 HP Haier variable refrigerant flow air conditioner is 12% higher over a period of one
year than that of an air conditioner with the new national standard of first-class energy efficiency with
same power level.
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(viii) Staying committed to the principle of ‘value of people comes first’
‘Value of people comes first’ has always been a guiding principle for Haier's development. From
the autonomous operation team at the start of the venture to the current ‘Rendanheyi’( 一合單 人 ) model,
Haier encourages every employee to maximize their own values while creating values for users. In
Haier's ‘Rendanheyi’ ( 一 合單人 ) model, ‘Ren’ refers to creators; ‘Dan’ refers to user value; ‘Heyi’ refers
to the integration of values realized by employees and the values created for users. ‘Value of people
comes first’ is the highest purpose of the ‘Rendanheyi’( 一合單 人 ) model.
Haier Smart Home adheres to the values of recognizing users’ demand as priority and denying our
own perceptions , and is committed to the ‘two creative spirits’ of entrepreneurship and innovation. We
turned employees into creators, implementers into entrepreneurs, and transformed enterprises into open
ecosystem platforms, which have supported the Company to become a global leader of smart home in
the Internet of Things era.
V. MAJOR OPERATIONS DURING THE REPORTING PERIOD
Please refer to “I. DISCUSSION AND ANALYSIS ON OPERATIONS” under this chapter.
(I) Analysis of principal business
1. Table of movement analysis on the related items in income statement and cash flow statement
Unit and Currency: RMB
Items Corresponding
Current Period Change (%)
Period of Last Year
Operating revenue 227,556,143,618.17 209,723,430,081.03 8.50
Operating cost 156,482,657,366.94 147,471,922,284.89 6.11
Selling expenses 36,553,667,004.06 33,641,711,147.72 8.66
Administrative expenses 10,444,475,658.24 10,052,645,415.72 3.90
Financial expenses 686,364,977.04 1,196,199,335.22 -42.62
R&D expenses 8,357,332,946.25 6,852,861,422.32 21.95
Net cash flow from operating
23,129,640,417.72 17,609,513,831.64 31.35
activities
Net cash flow from investing
-8,066,823,538.43 -5,273,676,324.71 -52.96
activities
Net cash flow from financing
-15,641,428,143.57 -1,025,923,097.55 -1,424.62
activities
Investment income 2,403,102,640.29 4,060,104,212.78 -40.81
Gain on fair value change 119,277,623.85 62,629,747.80 90.45
Loss on credit impairment -520,299,915.42 -166,380,605.76 -212.72
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Gain from disposal of assets 110,983,720.04 -12,807,590.96 966.55
Non-operating expenses 159,240,779.44 241,918,187.91 -34.18
Analysis on the reasons of signification changes in certain indicators:
1) Reasons for changes in financial costs: Financial costs decreased by 42.62% over the corresponding
period, which was mainly due to the decrease in interest expenses;
2) Reasons for changes in net cash flow from operating activities: Net cash flow from operating
activities increased by 31.35% over the corresponding period, which was mainly due to the increase
in operating profit and improvement in operating efficiency during the period;
3) Reasons for changes in net cash flows from investing activities: Net cash outflows from investing
activities increased by 52.96% over the corresponding period, which was mainly due to the cash
outflow from the purchase of financial products and the inflow of proceeds from disposal of interests
in subsidiaries during the current period;
4) Reasons for changes in net cash flows from financing activities: Net cash outflows from financing
activities increased by 1,424.62% over the corresponding period, which was mainly due to the
repayment of borrowings and the decrease in new borrowings during the current period;
5) Reasons for the changes in investment income: Investment income decreased by 40.81% over the
corresponding period, which was mainly due to the one-off gain on disposal of equity interests
included in the corresponding period;
6) Reasons for the changes in gain from fair value change: Gain from fair value change increased by
90.45% over the corresponding period, which was mainly due to the increase in fair value change of
investment in equity instruments over the corresponding period;
7) Reasons for changes in credit impairment losses: Credit impairment losses increased by 212.72%
over the corresponding period, which was mainly due to the increase in the provision for bad debts
on receivables during the current period;
8) Reasons for changes in gain on disposal of assets: Gain on disposal of assets increased by 966.55%
over the corresponding period, which was mainly due to the increase of gain on disposal of assets
in the current period;
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9) Reason for changes in non-operating expenses: Non-operating expenses decreased by 34.18% over
the corresponding e period, which was mainly due to the decrease in the disposal of small-scale
production equipment in the current period.
Detailed explanation of significant changes in the operation types and the components of profit or sources
of profit of the company during the period
√Applicable□ Not Applicable
In December 2020, the Company completed the material asset restructuring involved in the
privatisation of Haier Electronics through H Share issues, details of which was set out in the “report on
the implementation of material asset acquisition and connected transaction of Haier Smart Home Co.,
Ltd.” dated 26 December 2020 of the Company. Upon completion of the material asset restructuring,
profit attributable to minority shareholders of Haier Electronics from the original minority shareholders’
profit and loss would be transferred to the Company’s net profit attributable to shareholders of the parent
company. Thus, the restructuring was one of factors in change in indicators, such as net profit attributable
to shareholders of the parent company, of the Company for the reporting period.
2. Analysis of Income and Cost
□ Applicable √ Not Applicable
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(1). Principle Operating Activities by Sector, Product, Region and Sales Mode
Unit and Currency: RMB
Principal operating activities by product
Operating Operating Gross profit
Gross
revenue cost margin
Operating Operating profit
By product increased/ increased/ increased/
revenue cost margin
decreased decreased decreased yoy
%
） （ yoy (%) yoy (%) (%)
Increase by
Air 0.52
37,531,431,456.40 27,048,946,901.15 27.93 25.11 24.22
conditioner percentage
points
Decrease by
0.69
Refrigerator 71,569,789,213.81 48,835,867,469.21 31.76 16.30 17.48
percentage
points
Increase by
Kitchen 0.96
35,244,040,315.09 23,735,209,066.45 32.65 12.38 10.81
appliances percentage
points
Increase by
Water 0.06
12,470,593,776.21 6,760,377,744.75 45.79 26.52 26.38
Appliances percentage
points
Increase by
Washing 0.52
54,758,839,273.57 36,334,162,716.43 33.65 13.02 12.13
Machine percentage
points
Equipment
Decrease by
parts and
0.26
channel 15,002,367,286.61 13,523,061,580.33 9.86 -45.21 -45.05
percentage
integrated
points
services
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Principal operating activities by region
Operating Operating Gross profit
Gross
revenue cost margin
Operating Operating profit
By region increased/ increased/ increased/
revenue cost margin
decreased decreased decreased yoy
%
） （ yoy (%) yoy (%) (%)
Increase by
3.11
Domestic 111,851,280,563.23 73,875,984,966.93 33.95 4.30 -0.39
percentage
points
Increase by
0.20
Overseas 114,725,780,758.46 82,361,640,511.39 28.21 13.20 12.88
percentage
points
Principal operating activities by sales mode
Operating Operating Gross profit
Gross
revenue cost margin
Operating Operating profit
Sale mode increased/ increased/ increased/
revenue cost margin
decreased decreased decreased yoy
%
） （ yoy (%) yoy (%) (%)
Increase by
Domestic -
1.21
direct sale 10,849,505,940.64 6,336,720,350.62 41.59 5.08 2.96
percentage
customers
points
Increase by
Domestic -
3.30
distribution 101,001,774,622.59 67,539,264,616.31 33.13 4.22 -0.69
percentage
and others
points
Decrease by
Overseas -
3.94
direct sale 3,946,307,570.97 3,611,298,895.65 8.49 34.74 40.80
percentage
customers
points
Overseas - Increase by
trading 0.44
110,779,473,187.49 78,750,341,615.74 28.91 12.55 11.86
companies percentage
sales points
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(2). Table of production and sales analysis
√Applicable □ Not Applicable
Production Sales
Inventory
volume volume
Main Production Sales increased/
Units Inventory increased/ increased/
products volume Volumn decreased
decreased decreased
yoy (%)
yoy (%) yoy (%)
Home 10,000
10,576 11,388 2,464 23.3 13.6 24.3
Appliance units/sets
(3). Performance of major purchase contracts and major sales contracts
□Applicable √Not Applicable
(4). Table of cost analysis
Unit: RMB 10,000
By sector
Percentage of
Percentage
Percentage of the change of the
of the
Amount for the amount for the amount for the
Amount for amount for
Cost corresponding corresponding current period
By sector the current the current
component period of last period of last compared to the
period period in
year year in total costs corresponding
total costs
(%) period of last
(%)
year (%)
Primary 12,251,576 100.00 18.1
14,468,983 100.00
operation costs
Home Raw materials 12,400,431 85.7 10,190,414 83.2 21.7
Appliance Labor 893,832 6.2 776,334 6.3 15.1
Industry Depreciation 238,331 1.6 240,106 2.0 -0.7
Energy 72,363 0.5 63,633 0.5 13.7
Others 864,026 6.0 981,089 8.0 -11.9
(5). Change of consolidation scope due to changes on shareholdings of major subsidiaries during
the reporting period
□ Applicable √ Not Applicable
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(6). Relevant information on significant changes or adjustments in the Company's business,
products or services during the reporting period
□ Applicable √Not Applicable
(7). Major distributors and major suppliers
A. Major distributors of the Company
Revenue from the top five distributors was RMB 50,650.28 million, representing 22.26 % of the
total sales for the year; among the revenue from the top five distributors, the revenue from related parties
was RMB 0 million, representing 0 % of the total sales for the year.
The proportion of sales to a single distributor exceeded 50% of the total during the reporting period,
and new distributor or depending heavily on a few distributors were seen among the top five distributors.
□Applicable √Not Applicable
B. Major suppliers of the Company
The purchase amount from the top five suppliers amounted to RMB 40,358.73 million, representing
19.83 % of the total purchase amount for the year; among the purchase amount from the top five suppliers,
the purchase amount from related parties was RMB 22,159.67 million, representing 10.89 % of the total
purchase amount for the year.
The proportion of purchase from a single supplier exceeded 50%of the total during the reporting
period, and new supplier or depending heavily on a few suppliers were seen among the top five suppliers.
□Applicable √Not Applicable
3. Expenses
□ Applicable √Not Applicable
4. R&D expenditure
(1). Table of R&D expenditure
√ Applicable □ Not Applicable
Unit: RMB
Expensed R&D expenditure for the
8,357,332,946.25
current period
Capitalized R&D expenditure for the
609,272,007.11
current period
Total R&D expenditure 8,966,604,953.36
Total R&D expenditure as a percentage in 3.94
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operating revenue (%)
Proportion of capitalization of R&D
6.79
expenditure (%)
(2). Table of R&D Personnel
√ Applicable □ Not Applicable
Number of R&D personnel 22,161
Percentage of R&D personnel took up in the total employees (%) 21.13
Educational structure of R&D personnel
Categories of educational structure Number of personnel
Doctor’s degree 95
Master’s degree 3,480
Bachelor’s degree 10,684
College Diploma 5,276
High School diploma or below 2,626
Age structure of R&D personnel
Categories of age structure Number of personnel
Under 30 years old (not including 30) 8,228
30-40 years old (including 30 and not including 40) 9,518
40-50 years old (including 40 and not including 50) 3,033
50-60 years old (including 50 and not including 60) 1,141
60 years old and above 241
(3). Explanation
√Applicable □Not Applicable
Haier Smart Home always focuses on user experience. Under the guidance of adhering to the
strategy of original technology, it has continuously increased its innovation investment, established a
global leading R&D system, and has seen a continuous emergence of innovative achievements.
In terms of products, in 2021, the Company created a series of innovative solutions that were beyond
users' expectations and led the industry, such as parallel flow air supply system, the second generation
of air-purifying air conditioner, five-ring fire gas stove, crystal water heater, neutron and beauty washing
and drying care machine, etc. In the next step, we will continue to increase investment in basic research
and subversive technology research.
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In terms of intelligence promotion: focusing on all-scenario solutions such as Smart Home APP and
whole house intelligence, we are continuously increasing our investment in the research and development
of IoT, cloud computing, artificial intelligence and related advanced technologies to advance the
development of home appliances towards intelligence and scenario-based development.
In terms of green and dual-carbon: we will undertake the national dual-carbon strategy and make
breakthroughs in green technologies such as DC home appliances and hydrogen energy to lead the trend
of "dual-carbon" development in the home appliance industry.
(4). Reason for significant change in the composition of R&D personnel and its impact on the
future development of the Company
□ Applicable √ Not Applicable
5. Cash flow
□ Applicable √ Not Applicable
(II) Explanation for major changes in profit caused by non-principal businesses
□ Applicable √ Not Applicable
(III) Analysis of assets and liabilities
√Applicable □ Not Applicable
1. Assets and liabilities
Unit: RMB10,000
Percentage
Change in the
Percentage of of Amount
Amount at Amount at the
Amount at the Amount at the at the End
the End of end of Current
Name of Item End of Current End of Current of Previous Description
Previous Period to the
Period Period to Total Period to
Period End of Previous
Assets (%) Total
Period (%)
Assets (%)
Mainly due to the
growth in revenue
Inventory 3,986,317.10 18.33 2,944,697.34 14.47 35.37 scale and
production
stocking
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Mainly due to
changes in fair
Investments in
value of
other equity 484,870.94 2.23 265,902.53 1.31 82.35
investments in
instruments
equity
instruments
Mainly due to the
increase in
Development
22,789.22 0.10 16,774.67 0.08 35.85 research and
Expenses
development
expenditures
Mainly as a result
Short-term of working
1,122,621.21 5.16 768,790.82 3.78 46.02
borrowings capital
replenishment
Mainly due to the
Trading
expiration of
financial 629.40 0.00 2,695.25 0.01 -76.65
lock-up
liabilities
instruments
Mainly due to
changes in the
Derivative
fair value of lock-
financial 8,021.24 0.04 23,958.25 0.12 -66.52
up instruments
liabilities
and interest rate
swap agreements
Mainly due to the
Contractual
1,001,687.03 4.61 626,958.44 3.08 59.77 increase in
liabilities
advance receipts
Mainly due to
Other current repayment of
223,453.01 1.03 689,110.94 3.39 -67.57
liabilities ultra-short term
bonds
Mainly due to
Long-term
303,857.38 1.40 1,182,141.63 5.81 -74.30 repayment of
borrowings
borrowings
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Mainly due to the
conversion of
Bonds Payable 33,473.00 0.15 671,350.11 3.30 -95.01 convertible bonds
in the current
period
Mainly due to the
increase in the
withholding of
Estimated
194,856.55 0.90 144,284.40 0.71 35.05 package
liabilities
installation fee in
line with growth
of revenue scale
Mainly due to the
Deferred increase in
85,279.46 0.39 63,376.17 0.31 34.56
revenue government
subsidies
Other non- Mainly due to
current 4,946.17 0.02 2,703.35 0.01 82.96 increase in
liabilities deposits
Mainly due to the
decrease in the
Other equity
11,801.75 0.05 236,419.53 1.16 -95.01 conversion equity
instruments
component of the
convertible bonds
Mainly due to the
increase in equity
Capital reserves 2,254,934.56 10.37 1,500,747.56 7.37 50.25 premium from the
conversion of
convertible bonds
Mainly due to the
Treasury shares 242,403.88 1.11 2,889.66 0.01 8,288.68 Company's share
repurchase
2. Overseas Assets
√Applicable □Not Applicable
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(1) Scope of assets
Among the assets, overseas assets amounted to 9,618,279 (unit and currency: RMB10,000),
representing 44.23 % of the total assets.
(2) Explanation of high percentage of overseas assets
√Applicable □Not Applicable
Unit and Currency: RMB
Operating Revenue
Name of overseas Net Profit of the
Reason for Formation Operating mode during the reporting
asset reporting period
period
Overseas Home Overseas mergers & Localized Operations
Appliance and acquisitions and the with the integration of
113,725,197,263.9 5,926,026,404.54
Smart Home Company’s own R&D, manufacturing
Business development and marketing
Note: The net profit stated in the above table represents operating profit.
3. Restrictions on major assets as of the end of reporting period
□ Applicable √ Not Applicable
4. Other Explanations
□ Applicable √ Not Applicable
(IV) Analysis of industry operating information
□ Applicable √ Not Applicable
(V) Analysis of investment
Overall analysis on external equity investment
√ Applicable □ Not Applicable
In the purpose of increasing net profit attributable to owners of the parent company, promoting
company’s governance level, reducing daily related-party transactions, streamlining the shareholding
structure of the subject company and enhancing the managing efficiency of subsidiaries, On 29 October
2021, as audited and approved at the Twenty-fourth Meeting of the Tenth Session of the Board of
Directors of the Company, the Company acquired in cash 10.00% equity interest in Dalian Haier
Refrigerator Co., Ltd. and 3.94% equity interest in Qingdao Haier Special Electric Freezer Co., Ltd. and
100% equity interest in Qingdao Haier Quality Inspection Co., Ltd. held by Haier Group . The transaction
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Haier Smart Home Co., Ltd. 2021 Annual Report
consideration was RMB 39,600,000, RMB 28,846,300 and RMB 36,300,000 respectively, totaling RMB
104,746,300. As at the end of the Reporting Period, the transaction was completed.
1. Significant equity investment
√Applicable □Not Applicable
Please refer to the content in ‘1. Overall analysis on external equity investment’ as stated above.
2. Significant non-equity investment
□Applicable √Not Applicable
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3. Financial assets measured at fair value
√Applicable □Not Applicable
Unit and Currency: RMB
Current purchase/ Sale Investment income Changes in fair value
Financial assets measured Initial investment Source
during the reporting during the reporting during the reporting
at fair value cost of funds
period period period
Foreign exchange forward
Self-owned 385,093,478.12 51,560,818.94
contracts
Wealth management
2,157,550,007.50 Self-owned 254,052,501.00 60,011,933.94 487,081.52
products
Investments in trading
284,382,243.23 Self-owned 199,878,386.41 46,729,587.36
equity instruments
Investment funds 124,067,582.04 Self-owned 12,696,004.62 18,097,485.77
Investments in other equity
3,587,415,678.11 Self-owned 736,271,801.04 58,558,795.05 1,472,225,880.04
instruments
Forward commodity
Self-owned -18,646,990.66
contracts
Other derivative financial
29,450,000.00 Self-owned
instruments
Total 6,182,865,510.88 / 1,202,898,693.07 503,664,207.11 1,570,453,862.97
Note: As of 31 December 2021, the aggregate balance of foreign exchange derivative transaction
amounted to approximately US$ 2.286 billion.
4. Detailed progression of material asset regroup and integration during the reporting period
□ Applicable √ Not Applicable
(VI) Sale of material assets and equity
□ Applicable √ Not Applicable
(VII) Analysis on major subsidiaries and Investees
□ Applicable √ Not Applicable
(VIII) Structured entities controlled by the Company
□ Applicable √ Not Applicable
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VI. DISCUSSION AND ANALYSIS ON THE COMPANY’S FUTURE DEVELOPMENT
)I( Setup and trend of the industry
√ Applicable □ Not Applicable
For details, please refer to the relevant contents of “II. INTRODUCTION OF THE INDUSTRY
WHERE THE COMPANY OPERATES DURING THE REPORTING PERIOD” under “Section III
Management Discussion and Analysis” in this report.
)II( Development strategy of the Company
√ Applicable □ Not Applicable
To become a user-centred digital enterprise in the IoT era, and achieve leadership as the world's
first IoT-based smart home ecosystem brand. The Company will continue to consolidated its leadership
in refrigerators, washing machines and water heaters; enhance the performance of kitchen appliances and
air conditioners; accelerate growth in tumble dryers and dishwashers, and capture opportunities of
lifestyle appliances and cleaning appliances while developing Three-Winged Bird scenario brand in order
to stay ahead in this competitive industry.
)III( Business plan
√ Applicable □ Not Applicable
In 2022, the Company will take the following measures to generate sustainable growth:
In the domestic market, the Company will accelerate the transition of ‘high-end brand → scenario
brand → ecosystem brand’, and expand Casarte’s market leadership from product to scenario
applications while increase user value with initiatives targeting outstanding quality, comprehensive
solution, smart scenario, ecosystem platform and lifelong user loyalty. On the other hand, Three-Winged
Bird brand will remain focused on improving user experience with accelerated introduction of solution
packages that combine smart appliances with home improvement offerings, thus become lifelong
partners in users’ pursuit of a better life.
In the overseas markets, guided by ‘RenDanHeYi ( 一 合單人 )’ principles, the Company will make
dedicated efforts become No. 1 globally by leveraging on well-established localized operations to speed
up product development pipeline, expanding online & offline presence; optimizing global supply chain
integration and manufacturing upgrade, thus promoting deeper integration of brands, R&D, procurement,
supply chain and human resource management.
On digital transformation front, the Company will remain committed to promote the
digitalization of logistics, services, marketing, and supply chain management so as to establish an end-
to-end operation system that creates first class user experience, facilitates distributors’ development and
improves network efficiency, while building long lasting partnership with users in assisting them
building and servicing a home through accelerated implementation of Three-Winged Bird platform and
Experience Cloud platform.
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)VI( Potential risks of the Company
√ Applicable □ Not Applicable
1. Risk of decreasing market demand due to slowdown in macroeconomic growth. Sales of
white goods as durable consumer appliances are subject to users' income level and their expectations of
future income growth which would have a certain impact on their willingness to purchase products. A
slowdown in macroeconomic growth causing a decline in users' purchasing power would have a negative
impact on industry growth. In addition, a slowdown in real estate market would also have a negative
impact on market demand, which would indirectly affect end-user demand for home appliances.
2. Risk of price war caused by intensified industry competitions. The white goods industry is
highly competitive with a high degree of product homogeneity, industry concentration has increased in
recent years. Increase in inventory in individual sub-sectors due to imbalance between supply and
demand may lead to risks such as price war. Furthermore, due to rapid technological advancements,
scarce talents in the industry, shortened product life cycles and ease of imitation, it is becoming
increasingly difficult to profit. New products, services and technologies are often associated with higher
selling prices, and it has become necessary for the Company to invest more in research and development
in order to achieve that. The Group will actively invest in research and development to attract users
through continuous innovation in products and services, and establish a lasting brand influence.
3. Risk of fluctuations in raw material prices. The Company's products and core components
mainly use metal such as steel, aluminum, and copper as raw materials, as well as bulk commodity such
as plastics and foam. If the prices of raw materials continue to rise, it will put certain pressure on the
Company’s production and operations. In addition, the Company relies on third party suppliers for key
raw materials, components and manufacturing equipment, as well as OEM suppliers, and any disruption
in supply or significant price increases by these suppliers will have a negative impact on the Company’s
businesses. As a leader in the industry, the Company will take measures to reduce the risk of raw material
fluctuations on its operations such as by using value adjustment mechanism on volume and price with
suppliers and hedging.
4. Operational risk in overseas business. The Company has steadily developed its global business
and has established production bases, research and development centers and marketing centers in many
parts of the world, with the proportion of overseas revenue increasing year by year. Overseas markets
are subject to political and economic situations (events such as military conflicts and wars), legal systems
and regulatory regimes of those countries and regions, and significant changes in these factors may pose
certain risks to the Company’s local operations in these markets. The Company has taken various
measures to mitigate the relevant impact, including active collaborations with suppliers and distributors,
improving production efficiency to offset the impact on the Company’s overall cost of sales, potentially
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expanding the Company’s supply resources to other countries, and taking measures to ensure safety of
its people and assets.
5. Risk of exchange rate fluctuations. As the Company expands its global footprint, the import
and export of the Company’s products involve the uses of foreign currencies such as the U.S. dollar, the
Euro and the Japanese yen. If the exchange rates of relevant currencies fluctuate, it will have a certain
impact on the Company’s financial position and increase its financial costs. In addition, the Company’s
consolidated financial statements are denominated in Renminbi, while the financial statements of its
subsidiaries are measured and reported in the currency of their primary economic environment in which
the entity operates, and are therefore subject to currency exchange risk. In this regard, the Company uses
hedging instruments to reduce its exposure to exchange rate fluctuations.
6. Risk of policy changes. The home appliance industry is closely related to the consumer goods
market and the real estate market. Changes in macroeconomic policies, consumption investment policies,
real estate policies and relevant laws and regulations will affect distributors' demand for products, which
in turn will affect product sales of the Company. The Company will closely monitor changes in policies,
laws and regulations, and anticipate market changes to safeguard the Company’s further development.
7. Risk of uncertainties resulted from COVID-19 outbreak. The COVID-19 outbreak, which
gradually spread around the end of 2019, could lead to a further weakening of consumer demand for
home appliances, which could in turn affect the Company’s product sales. Firstly, lockdowns, social
distancing measures and travel restrictions could reduce user mobility and result in the closure of retail
sales network, thereby reducing consumer demand for home appliances. Secondly, the pandemic may
also cause disruptions to the operations of distributors, such as logistical disruptions in the delivery of
products, resulting in distributors' dissatisfaction with the Company’s services and consequently reduced
demand for the Company’s products. The Company will leverage its anti-pandemic experience in the
Chinese market and make best use of its global resource synergies to mitigate the impact of the pandemic
on its businesses.
8. Credit risk. The Company may not be able to collect all trade receivables from its distributors,
or distributors may not be able to settle the Company's trade receivables in a timely manner, in which
case the Company's business, financial status and operation performance may be adversely affected. In
relation to this risk, the Company will maintain flexibility to offer credit period of 30 to 90 days to certain
distributors based on their credit history and their transaction volume.
9. Inventory risk. Since the Company cannot always accurately predict trends and events and
maintain appropriate inventory levels, there may be excess inventory as a result, for which the Company
may be forced to offer discounts or offer promotions to tackle the slow-moving inventory issue. On the
other hand, a shortage of inventory may occur, which may lead to loss of sales opportunities for the
Company. However, the Company will manage its inventory and make adjustment according to market
situation. It will also regularly assess if impairment of inventory is needed.
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)V(Others
□ Applicable √ Not Applicable
VII. EXPLANATION OF CIRCUMSTANCES AND REASONS FOR NON- DISCLOSURE BY
THE COMPANY IN CONSIDERATION OF INAPPLICABLE REGULATIONS, STATE
SECRETS AND COMMERCIAL SECRETES
□ Applicable √ Not Applicable
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Section IV Corporate Governance
I. EXPLANATION OF CORPORATE GOVERNANCE
√ Applicable □ Not Applicable
During the reporting period, the Company has strictly complied with the requirements under
Company Law of the People's Republic of China, Securities Law of the People's Republic of China, Code
of Corporate Governance of Listed Companies and the requirements of the relevant laws and regulations,
and has been committed to improving its governance structure, regulating its operation, perfecting its
information disclosure system, strengthening the communication with investors and upgrading the level
of the Company’s corporate governance. During the reporting period, the Company has made
amendments to Articles of Association according to domestic and overseas regulatory requirements to
enhance its standardized operation and comprehensive management. The corporate governance structure
of the Company is sound and there is no difference between the corporate governance structure and the
requirement of relevant documents from CSRC.
(1) Shareholders and general meeting of shareholders:
The Company could ensure that all shareholders, especially the minority shareholders enjoy equal
treatment and are able to fully exercise their rights; during the reporting period, the convening procedures
of the shareholders’ general meeting of the Company were in compliance with the requirements of
Articles of Association and Rules of Shareholders’ General Meeting of the Company. Attendance of
shareholders at the meeting was relatively high, which ensured that the shareholders fully excised voting
rights; the Company also engaged lawyers who possess the qualification to engage in securities business
to attend and witness the shareholders’ general meeting; the proposals were considered and approved in
accordance with legal procedures, which could guarantee the power and rights of minority shareholders.
(2) Relationship between controlling shareholders and the listed company:
The controlling shareholders acted normatively and did not interfere with the Company’s
management decisions and operations, directly or indirectly. The Company and the controlling
shareholders are independent of each other in terms of their staff, assets, finance, organization and
business. The Board of Directors, the Board of Supervisors and internal administrative departments are
all independent of each other. The specific requirements for regulating Related-party transactions and
fund flow are set out in Articles of Association, Fair Decision-Making System for Related-party
Transactions and Administrative System for Regulation of Fund Flow between the Company and Related
Parties, Risk Control System for Related-party Transaction with Haier Group Finance Co., Ltd., and
Proposal for Emergency Response System for Risk of Deposits with Haier Group Finance Co., Ltd.,
which guaranteed the interests of investors. After being approved at the annual general meeting, the daily
related-party transactions are implemented according to specialized review procedures. The basis of
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pricing and reasonability of operation agreement shall be supervised and reviewed by special
departments, so as to regulate the execution of related-party transactions. Internal control and internal
control audit of the Company would also focus on the compliance of the related-party transactions, in
order to protect the interests of minority shareholders and non-related shareholders.
(3) Directors and the Board of Directors:
The Board of Directors acts as the decision-making body of the Company. The Board of Directors
of the Company is responsible to the shareholders’ general meetings, and performs its duty within the
terms of reference under Articles of Association and other relevant laws and regulations in accordance
with the procedures under Rules of Procedure for the Board of Directors. During the reporting period,
the Board of Directors operated in accordance with rules and continued to perform their duties under
Articles of Association and relevant laws and regulations better and practically implement relevant
decisions at the shareholders’ general meeting. The decision-making procedure and particulars of the
resolutions of the Board of Directors were in compliance with relevant Listing Rules, Articles of
Association and relevant requirements under laws and regulations, and the resolutions made were legal
and valid.
In determining the composition of the Board of Directors, the Company took full account of the
diversity of the members of the Board, including but not limited to gender, age, culture, education
background, professional experience, skills, knowledge and length of service of the director as well as
other regulatory requirements. During the reporting period, the Company has 8 external directors, of
which 4 are independent directors, representing a large proportion of the total number of the directors
(11 in total) of the Company. The Board continues to maintain an open structure. The members of the
Board have extensive experience and expertise in areas of finance and accounting, investment strategy,
corporate culture and corporate governance, which helped to improve the efficiency of the Board,
reduced the risks of management and control and made better decisions so as to realize the sustainable
and healthy development of the Company.
During the reporting period, the directors attended the board meeting and shareholders’ general
meeting with responsible and diligent attitude and protected the interests of the Company. The
independent directors of the Company have a diligent and responsible attitude towards their work by
actively attending meetings of the Board and its committees, expressing independent opinion on matters
of related-party transactions, cash dividend, external guarantees and providing constructive advice on the
production and operation of the Company.
Strategic committee, audit committee, remuneration and appraisal committee, nomination
committee and ESG committee are established under the Board of the Company. The number of
independent directors represents more than one-half of the audit committee, nomination committee,
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remuneration and appraisal committee. During the reporting period, the Company set up the new ESG
committee, which will help to promote the environmental, social responsibility and management
capabilities of the Company.
(4) Supervisors and the Board of Supervisors:
During the reporting period, the Board of Supervisors operated in accordance with rules and
continued to practically perform their duties under Articles of Association and relevant laws and
regulations. The number and composition of the members of the Board of Supervisors complied with
requirements under laws and regulations. During the reporting period, the Supervisors of the Company
performed their duties earnestly and adhered to the principle of being responsible to the Company and
all shareholders to supervise legality and compliance on finance matters of the Company and
performance of duty by the Company’s directors, presidents of the Company and other senior
management strictly in accordance with requirements under Articles of Association, Rules of Procedure
for the Board of Supervisors and relevant laws and regulations.
(5) Performance evaluation and incentive and disciplinary mechanism:
In accordance with Articles of Association, the Board of Directors shall appoint or remove the
president and the secretary of the Board of Directors; the Board shall appoint or remove the vice president
and other senior management (including the chief financial officer) of the Company based on the
nomination by the president and determine their remunerations and rewards and penalties. The human
resource department of the Company shall make routine appraisal and evaluation on the performance of
directors, supervisors and senior management. Remuneration and Appraisal Committee shall make
inspection and evaluation on their performance to determine their remunerations at the end of the year.
The Company is focused on maximizing the value of people. In line with the global landscape of
the capital market, the Company has established an incentive system that unifies long and short-term
incentives and constraints and aligns the interests of employees and all shareholders. During the reporting
period ， the Company introduced domestic and overseas incentive plans with various appraisal cycle,
multi-level and all-round benefits, further expanding the scope of incentives. On the basis of A-Share
Employee Stock Ownership Plan, H-Share Core Employee Stock Ownership Plan and H-Share Overseas
Trust Incentive Plan, the Company introduced A-Share Option Incentive Scheme, which helped the
Company better focus on the implementation of smart home strategy, optimize the incentive mechanism
to further attract talents and promote business synergy and integration, enhance values of the Company
and the shareholders with a view to achieving quality and sustainable growth through the cycle.
(6) Stakeholders:
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The Company was able to fully respect and protect the lawful rights and interests of the suppliers,
channels, banks, other creditors, employees, consumers and other stakeholders. Meanwhile, the
Company actively took part in public welfare undertaking in such place where it operates, placed a lot
of emphasis on environment protection, performed its social duties earnestly and worked together with
these stakeholders actively with good communication to jointly promote the sustainable and sound
development of the Company. For details, please refer to relevant information in 2021 Environmental,
Social and Governance Report published on the same date of this report.
(7) Information disclosure:
During the reporting period ， the Company strictly complied with the requirements of the listing
rules of each place of listing and adhered to the principles of timely disclosure, truthful disclosure,
accurate disclosure, complete disclosure, fair disclosure and lawful disclosure to ensure that all investors
have equal access to information. The Company authorized Shanghai Securities News, China Securities
Journal, Securities Times and Securities Daily for information disclosure. The Company authorized the
secretary of the Board of Directors to take charge of information disclosure, reception of visits by
shareholders and handling of shareholder’s enquiries. Meanwhile, the Company broadened
communication channels for investors to get relevant information of the Company through result
presentation, telephone conference calls after periodical reporting and occasionally holding on-site and
online forums. With respect to the significant Related-party transactions, the Company performed
necessary approval procedures and disclosed relevant information strictly in compliance with Articles of
Association and Fair Decision-Making System for Related-party Transactions to protect the interests of
investors. During the reporting period, the Company further perfected the confidentiality procedure for
information disclosure strictly in compliance with the Registration System of Insiders, the Responsibility
System for Major Errors in Information Disclosure in Annual Reports and the Management System of
External Information Users to ensure the fairness and equity of information disclosure.
(8) Management of Investor Relation
During the reporting period, the Company continued to uphold the principle of respecting investors
with focus on the needs of investors to strengthen communication and exchange with investors in an
active, open, innovative and professional manner so as to enhance investors’ understanding and
recognition of the Company and safeguard the legal rights of investors. In accordance with guideline of
the Management System for Investor Relation, the Company integrated business and financial resources
by the office of the secretary of the board of Directors and realized positive and all-around access to
investors in a multi-layer and diversified format through introduction reference, annual investor
conference, result announcement conference, and online forum. Meanwhile, the Company replied
investors on a timely basis by ways of interview, e-mail, phone, fax and the website
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(http://sns.sseinfo.com) and enhanced interaction with investors, so as to respect and protect the interests
of various investors, with the aim of achieving harmonious and mutual success with the Company, staff
and investors.
Whether there is a significant difference between the corporate governance and requirements in
respect of corporate governance of listed companies of laws, administrative regulations and the CSRC;
if so, the reasons should be explained
□ Applicable √ Not Applicable
II. SPECIFIED MEASURES ADOPTED BY THE CONTROLLING SHAREHOLDERS AND
ULTIMATE CONTROLLERS TO MAINTAIN INDEPENDENCE WITH RESPECT TO
ASSETS, PERSONNEL, FINANCE, ORGANIZATION, BUSINESS, AND THE SOLUTIONS
ADOPTED, WORKING PROGRESS AND SUBSEQUENT WORKING PLANS IN CASE OF
THE COMPANY’S INDEPENDENCE BEING AFFECTED
□ Applicable √ Not Applicable
Controlling shareholders, ultimate controllers and other parties controlled by them engaged in
business that are same as or similar to the company, peer competition and impact of significant changes
in peer competition on the company, solutions adopted, working progress and subsequent solution plans
□ Applicable √ Not Applicable
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III. BRIEF INTRODUCTION TO THE GENERAL MEETING OF SHAREHOLDERS
Index for details of websites
Date of
Meeting Date designated for publishing Resolutions approved
disclosure
resolutions
Considered and
approved the
For details, please refer to the
resolutions for the
Announcement on Resolutions
amendment of the
Passed at the 2021 First
articles of association,
2021 First Extraordinary Extraordinary General Meeting,
the appointment of
General Meeting 2021 First A Shares Class
auditors, the general
Meeting, 2021 First D Shares
mandate to repurchase
Class Meeting and 2021 First H 6 March
5 March 2021 H share and the election
Shares Class Meeting of Haier 2021
of additional directors
Smart Home Co., Ltd. (L2021-
009) published by the Company on
2021 First A Shares Class
the website of Shanghai Stock
Meeting Considered and
Exchange (www.sse.com.cn) and
2021 First D Shares Class approved a resolution
the four major securities
Meeting for general mandate to
newspapers.
2021 First H Shares Class repurchase H share
Meeting
Considered and
approved the
For details, please refer to the resolutions related to
Announcement on Resolutions annual report, profit
Passed at the 2020 Annual General distribution proposal,
Meeting, 2021 Second A Shares expected annual
Class Meeting, 2021 Second D guarantee/foreign
Class Meeting and 2021 Second H exchange operation,
2020 Annual General
25 June 2021 Shares Meeting of Haier Smart 26 June 2021 general mandate to
Meeting
Home Co., Ltd. (2021-045) issue additional/
published by the Company on the repurchase H/D shares
website of Shanghai Stock of the Company,
Exchange (www.sse.com.cn) and Employee Stock
the four major securities Ownership Plan and the
Newspapers. election of sole
director/supervisors,
etc.
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2021 Second A Shares Class Considered and
Meeting approved a resolution
2021 Second D Shares Class for general
Meeting authorization to
2021 Second H Shares repurchase H/D shares
Meeting of the Company
For details, please refer to the Considered and
Announcement on Resolutions approved Share Option
2021 Second Extraordinary Passed at the 2021 Second Incentive Scheme,
General Meeting Extraordinary General Meeting, appraisal management
2021 Third A Shares Class method and relevant
Meeting, 2021 Third D Shares authorization
16
2021 Third A Shares Class 15 September Class Meeting and 2021 Third H
September
Meeting 2021 Shares Class Meeting of Haier
2021
2021 Third D Shares Class Smart Home Co., Ltd. (L2021-
Considered and
Meeting 072) published by the Company on
approved Share Option
the website of Shanghai Stock
Incentive Scheme
2021 Third H Shares Class Exchange (www.sse.com.cn) and
Meeting the four major securities
newspapers.
Preferred shareholders whose voting rights have been restored requested an extraordinary general
meeting
□ Applicable √ Not Applicable
Explanation of Shareholders' general meeting
√ Applicable □ Not Applicable
(1) The 2021 First Extraordinary General Meeting and the 2021 First A/D/H Shares Class
Meetings of the Company was held in successive order by way of on-site voting and network voting by
poll at Room B101, Haier RenDanHeYi Research Center, Haier Information Park, No.1 Haier Road,
Qingdao, the PRC, in the afternoon on 5 March 2021, considering the amendment of articles of
association of the Company and other relevant resolutions. The total number of the shares of the
Company carrying voting rights amounted to 9,284,895,068 shares (of which 6,308,552,654 shares were
A shares, 271,013,973 shares were D shares and 2,705,328,441 shares were H shares). 463 shareholders
and proxies, representing 5,402,912,205 shares or 58.19% of the total number of the shares of the
Company carrying voting rights, were present at the 2021 First Extraordinary General Meeting; 342
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shareholders and proxies, representing 3,389,819,287 shares or 53.73% of the total number of A shares
of the Company carrying voting rights, were present at the 2021 First A Shares Class Meeting; 115
shareholders and proxies, representing 136,331,271 shares or 50.30% of the total number of D shares of
the Company carrying voting rights, were present at the 2021 First D Shares Class Meeting; 7
shareholders and proxies, representing 1,827,803,082 shares or 67.56% of the total number of H shares
of the Company carrying voting rights, were present at the 2021 First H Shares Class Meeting. The
Directors, supervisors and senior management of the Company as well as the lawyers engaged by the
Company also attended the abovementioned four meetings. The abovementioned four meetings were
convened by the Board of the Company, and Vice Chairman Ms. Tan Lixia presided over these meetings.
The Company had 8 Directors, of whom 2 Directors attended the meetings (Directors Liang Haishan,
Wu Changqi, Lin Sui, Dai Deming, Chien Da-Chun and Wong Hak Kun were unable to attend the
meetings due to personal engagement); the Company had 3 supervisors, all of whom attended the meeting.
The secretary of the Board of the Company attended the abovementioned meetings and other members
of senior management of the Company were invited to attend the abovementioned meetings.
(2) The 2020 Annual General Meeting and the 2021 Second A/D/H Shares Class Meetings of
the Company was held in successive order by way of on-site voting and network voting by poll at Room
B101, Haier RenDanHeYi Research Center, Haier Information Park, No.1 Haier Road, Qingdao, the
PRC, in the afternoon on 25 June 2021, considering the annual report and other relevant resolutions. The
total number of the shares of the Company carrying voting right amounted to 9,351,540,298 shares (of
which 6,268,408,194 shares were A shares, 271,013,973 shares were D shares and 2,812,117,411 shares
were H shares). 985 shareholders and proxies, representing 6,080,584,192 shares or 64.63% of the total
number of the shares of the Company carrying voting right, were present at the 2020 Annual General
Meeting. 865 shareholders and proxies, representing 4,029,351,155 shares or 63.87% of the total number
of A shares of the Company carrying voting rights, were present at the 2021 Second A Shares Class
Meeting; 119 shareholders and proxies, representing 140,727,610 shares or 51.93% of the total number
of D shares of the Company carrying voting rights, were present at the 2021 Second D Shares Class
Meeting; 5 shareholders and proxies, representing 1,989,396,251 shares or 70.74% of the total number
of H shares of the Company carrying voting rights, were present at the 2021 Second H Shares Class
Meeting. The Directors, supervisors and senior management of the Company as well as the lawyers
engaged by the Company also attended the abovementioned four meetings. The abovementioned four
meetings were convened by the Board of the Company, and Chairman Mr. Liang Haishan presided over
these meetings. The Company had 11 Directors, of whom 4 Directors attended the meetings (Directors
Li Huagang, XieJuzhi, Wu Changqi, Lin Sui, Dai Deming, Chien Da-Chun and Li Shipeng were unable
to attend the meetings due to personal engagement); the Company had 3 supervisors, of whom 1
supervisor attended the meetings (Supervisors Wang Peihua and Ming Guoqing were unable to attend
the meetings due to personal engagement). The secretary of the Board of the Company attended the
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abovementioned meetings and other members of senior management of the Company were invited to
attend the abovementioned meetings.
(3) The 2021 Second Extraordinary General Meeting and the 2021 Third A/D/H Shares Class
Meetings of the Company was held in successive order by way of on-site voting and network voting by
poll at Room B101, Haier RenDanHeYi Research Center, Haier Information Park, No.1 Haier Road,
Qingdao, the PRC, in the afternoon on 15 September 2021, considering the Share Option Incentive
Scheme and other relevant resolutions. The total number of the shares of the Company carrying voting
right amounted to 9,348,215,954 shares (of which 6,262,154,495 shares were A shares, 271,013,973
shares were D shares and 2,815,047,486 shares were H shares). 640 shareholders and proxies,
representing 5,996,610,506 shares or 64.15 % of the total number of the shares of the Company carrying
voting right, were present at the 2021 Second Extraordinary General Meeting. 527 shareholders and
proxies, representing 3,850,245,299 shares or 61.48 % of the total number of A shares of the Company
carrying voting rights, were present at the 2021 Third A Shares Class Meeting; 107 shareholders and
proxies, representing 149,499,080 shares or 55.16 % of the total number of D shares of the Company
carrying voting rights, were present at the 2021 Third D Shares Class Meeting; 6 shareholders and proxies,
representing 2,055,477,618 shares or 73.02 % of the total number of H shares of the Company carrying
voting rights, were present at the 2021 Third H Shares Class Meeting. The Directors, supervisors and
senior management of the Company as well as the lawyers engaged by the Company also attended the
abovementioned four meetings. The abovementioned four meetings were convened by the Board of the
Company, and Chairman Mr. Liang Haishan presided over these meetings. The Company had 11
Directors, of whom 9 Directors attended the meetings (Directors Chien Da-Chun, Wong Hak Kun, Li
Shipeng, Wu Changqi, Yu Hon To, Li Kam Fun participated by means of communication while directors
Lin Sui and WU Qi were unable to attend the meetings due to personal engagement); the Company had
3 supervisors, of whom 3 supervisors attended the meetings. The secretary of the Board of the Company
attended the abovementioned meetings and other members of senior management of the Company were
invited to attend the abovementioned meetings.
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IV. DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
(I) Changes of shareholding and remuneration of current and retired directors, supervisors and senior management during the reporting period
√Applicable □Not Applicable
Unit: share
Total
remuneration Whether
Shareholdings received from the receive
Expiration Shareholdings Increase/decrease
Appointment at the Reason for Company during remuneration
Name Title (note) Gender Age date of at the end of in shares for the
date beginning of increase/decrease the reporting from the
appointment the year year
the year period Company’s
(RMB0’000) related party
(before tax)
Employee
Liang
Chairman Male 56 2019–06–18 2022–06–17 14,923,047 16,411,209 1,488,162 shareholding 259.5 NO
Haishan
scheme vested
Director,
Employee
Li Chief
Male 53 2019–06–18 2022–06–17 694,607 764,145 69,538 shareholding 224.3 NO
Huagang Executive
scheme vested
Officer
Vice
Xie Juzhi Male 56 2021-3-5 2022–06–17 195.5 NO
president
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Wu
Director Male 67 2019–06–18 2022–06–17 22.5 NO
Changqi
Lin Sui Director Male 66 2019–06–18 2022–06–17 22.5 NO
Yu Hon
Director Male 74 2021-3-5 2022–06–17 18.75 NO
To
Li Kam
Director Female 70 2021-3-5 2022–06–17 18.75 NO
Fun
Chien Da- Independent
Male 69 2019–06–18 2022–06–17 22.5 NO
chun director
Wong Independent
Male 66 2020–06–03 2022–06–17 22.5 NO
HakKun director
Li Independent
Male 55 2021-3-5 2022–06–17 18.75 NO
Shipeng director
Independent
Wu Qi Male 55 2021-6-25 2022–06–17 8.75 NO
director
Employee Received no
Tan Lixia Vice
Female 52 2019–06–18 2021-3-30 8,535,920 9,726,450 1,190,530 shareholding remuneration YES
(retired) president
scheme vested from the Company
Dai
Independent
Deming Male 60 2019–06–18 2021-6-25 13.75 NO
director
(retired)
Liu Dalin Chairman of Male 42 2021-6-25 2022–06–17 Received no YES
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Haier Smart Home Co., Ltd. 2021 Annual Report
the remuneration
Supervisory from the Company
Committee
Employee
Ma
Supervisor Female 53 2021-6-25 2022–06–17 3,904 3,904 shareholding 34.1 NO
Yingjie
scheme vested
Employee
Yu Miao Male 40 2019–06–18 2022–06–17 33.6 NO
supervisor
Chairman of
Wang Employee Received no
the
Peihua Male 65 2019–06–18 2021-6-25 161,067 210,127 49,060 shareholding remuneration YES
Supervisory
(retired) scheme vested from the Company
Committee
Ming Employee Received no
Guoqing Supervisor Male 62 2019–06–18 2021-6-25 105,511 137,564 32,053 shareholding remuneration YES
(retired) scheme vested from the Company
Deputy Employee
Li Pan general Male 46 2021-2-7 2022–06–17 387,118 533,218 146,100 shareholding 154.6 NO
manager scheme vested
Deputy
Employee
general
Gong Wei Male 49 2019–06–18 2022–06–17 1,724,315 1,911,970 187,655 shareholding 124.5 NO
manager,
scheme vested
Chief
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Haier Smart Home Co., Ltd. 2021 Annual Report
financial
officer
Deputy
Huang
general Male 45 2021-2-7 2022–06–17 86.0 NO
Xiaowu
manager
Deputy Employee
Wu Yong general Male 44 2021-2-7 2022–06–17 44,765 146,743 101,978 shareholding 118.7 NO
manager scheme vested
Deputy
Li Yang general Male 46 2021-2-7 2022–06–17 107.9 NO
manager
Deputy
Guan
general Male 44 2021-2-7 2022–06–17 115.6 NO
Jiangyong
manager
Deputy Employee
Wang Li general Female 57 2021-2-7 2022–06–17 504,505 575,100 70,595 shareholding 105.5 NO
manager scheme vested
Secretary to Employee
Ming
the board of Female 58 2019–06–18 2022–06–17 1,275,295 1,395,489 120,194 shareholding 80.3 NO
Guozhen
directors scheme vested
Total / / / / 28,356,150 31,815,919 3,459,769 / 1,808.85 /
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Note: (1) “Shareholdings at the beginning of the year” as stated in the above table represent the later of “the beginning of the year” of the appointment or “appointment
date” of such directors, supervisors and senior management; (2) all the aforesaid shares are A-shares.
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Name Major working experience
Male, born in 1966, is a senior engineer. He served as head of the quality department of Qingdao Haier Refrigerator Co., Ltd., general manager of Qingdao
Haier Air Conditioner Gen Corp., Ltd, vice president of Haier Group, senior vice president of Haier Group, rotating president of Haier Group, vice chairman,
Chairman and president of Haier Smart Home Co., Ltd. He is vice chairman of the board of directors of Haier Group, president of Haier Group, and
chairman of 10th session of the Board manager of Haier Smart Home Co., Ltd.; he was rewarded National May 1st Labor Medal, Outstanding Leadership
Liang Haishan
Award of the National Light Industry Enterprise Information ( 奖 导 领 秀 优 化息 信 业企 业 工 轻 国 全 ), Top 10 Leaders in China Strategic Emerging
Industries; Prize of Technology Advancement for China Household Appliances, First Prize Award of Science and Technology Progress of China National
Light Industry Council, China Patent Gold Prize, 2017 Forbes China Best CEO of Listed Company, 2017 Taishan Industry Leading Talent of Shandong
Province, Labor Model of Shandong Province.
Male, born in 1969. He graduated from Huazhong University of Technology in 1991 with a Bachelor’s degree of Economics, and from China Europe
International Business School in 2014 with a degree of Executive Master of Business Administration (EMBA). He was successively awarded 2015 China
Home Appliance Marketing Leader, 2016 Person of the Year in Home Appliance Industry of Shandong, Award of Outstanding Contribution in 40-Years
Li Huagang
Development of China’s Home Appliance Industry 2018, 2019 Qingdao Top Talent, and 2019 Person of the Year of China’s Top Ten Brands. He served
as the chief operating officer and executive director of Haier Electonics Group Co., Ltd. (HEG), a subsidiary of the Company, and is currently a director
and Chief Executive Officer of Haier Smart Home Co., Ltd.
Male, born in 1966. He graduated from Shandong University of Finance and Economics in July 1989 with a Bachelor’s degree, and joined Haier Group in
the same year. Mr. Xie has experience in whole-process product management, product-wide services and product-wide marketing. Mr. Xie has held senior
positions in Electrothermal Division of Haier Group, East China Marketing and Promotion Division of the Haier Group, and served as the General Manager
XieJuzhi of Customer Services of Haier Group. He has been the Chief Executive Officer and an Executive Director of Haier Electronics Group Co., Ltd. Since July
2012, he has been the Vice President of Haier Group in charge of the Group’s integration of community sales services in first and second-tier cities, and
developing the online and offline sales of new household products. He then has been managing the newly developed business segments of Haier Group,
including water purification, logistics, Haier home and Gooday services. Since March 2021, he has been the vice chairman of Haier Smart Home Co., Ltd.
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He is currently responsible for supervising the smart living appliances segment. Mr. Xie was awarded honorary titles including the Gold Award of
Outstanding Contribution Award of China’s Home Appliance Services Industry ( 奖金 奖献贡 出突业 行务服电 家 国中 ) and Outstanding Entrepreneur of
Shandong Province ( 家 业企秀优 省东 山 ).
Male, born in 1955. He is currently a professor of strategic management and doctoral supervisor of Guanghua School of Management, Peking University.
He graduated from Shandong University with a Bachelor’s degree of Economics in 1982, and Katholieke Universiteit Leuven in Belgium with a Master’s
degree of Business Administration and a Doctoral degree in applied economics in 1990. He served as an assistant professor and associate professor in the
Department of Economics of School of Business and Management of Hong Kong University of Science and Technology, a professor and head of the
Wu Changqi
Department of Strategic Management of Guanghua School of Management of Peking University, a deputy dean of the Guanghua School of Management
of Peking University, and a director of the EM-BA degree programme center. He is currently the executive vice president of the Academy of Development
Strategy for National High-tech Industry Zones, Peking University, the dean of the School of Management of Shandong University, and the director of the
Tenth Session of the Board of Directors of Haier Smart Home Co., Ltd.
Male, born in 1956. He was a partner of Deloitte Touche Tohmatsu China (retired on 31 May 2019). He has been engaged in international tax consultancy
in USA and China for nearly 30 years. He participated in transactions, mergers and acquisitions, initial public offerings, financing projects, supply chain
taxation optimization, internal tax risk control and other aspects of professional tax consultancy of many PRC international enterprises, and has abundant
experience in restructuring, acquisition, equity arrangement, tax accounting and business transformation. In recent years, he has been mainly engaged in
the consulting of digital transformation of corporate financial and tax management. In 1989, he pursued his studies in USA and obtained a Master’s degree
Lin Sui in Business Administration and a Master’s degree of Science in Taxation. He joined Deloitte Touche Tohmatsu USA in 1993 and was transferred to Deloitte
Touche Tohmatsu China in 2002. Mr. Lin Sui is a Certified Public Accountant in USA. Prior to his return to China, he was employed by Ministry of Science
and Technology of China as a member of the overseas scholars’ advisory committee of the National High-tech Development Torch Program and an expert
on the United Nations development projects in China. At present, he has been invited as an external lecturer of China Europe International Business School
and Shanghai National Institute of Ac-counting, a part-time master degree tutor of Fudan University and Shanghai University of Finance and Economics,
Deputy Director of the Advisory Committee of China Tax Institute of Large Business (TILB), a council member of the Shanghai branch of China
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Association for Fiscal and Tax Law, and a director of the Tenth Session of the Board of Directors of Haier Smart Home Co., Ltd.
Male, born in 1948. He holds a Bachelor of Social Science degree from Chinese University of Hong Kong. He is a Fellow of the Institute of Chartered
Accountants in England and Wales and an Associate Member of Hong Kong Institute of Certified Public Accountants. Mr. Yu is a chartered accountant
with over 40 years’ experience in the fields of auditing, corporate finance (including advisory on IPO, mergers & acquisitions and financial restructuring),
financial investigation and corporate governance. Mr. Yu was formerly a partner of Coopers & Lybrand (now merged as PricewaterhouseCoopers) in Hong
Kong with extensive experience in the corporate finance advisory assignments in Greater China for Hong Kong corporations, private equity groups and
Yu Hon To
multinationals. Mr. Yu also served as an independent non-executive director and the chairman of the audit committee of Haier Electronics Group Co., Ltd.,
a subsidiary of the Company, over the past three years. Mr. Yu had served various public offices including being a member of the Listing Committee of
the Hong Kong Stock Exchange from 1992 to 1995, a member of the Investment Committee and the Audit Committee of Employees Retraining Board
(established under the Employees Retraining Ordinance of Hong Kong) from 1999 to 2020, and a member of the Board of Review (established under Inland
Revenue Ordinance of Hong Kong) from 2006 to 2012. He is currently a director of 10th session of the Board of Directors of Haier Smart Home Co., Ltd.
Female, born in 1952. She graduated from University of Hong Kong with Bachelor of Arts and Master of Business Administration degrees. She was
conferred with the degree of Doctor of Business Administration, honoris causa, from the Open University of Hong Kong in 2014. Ms. Li Kam Fun is
currently the president of Our Hong Kong Foundation. She also serves as an independent non-executive director of Nestle S.A, a publicly listed company
on the SIX Swiss Exchange. Ms. Li Kam Fun served as an independent non-executive director of Haier Electronics Group Co., Ltd., a subsidiary of the
Company, over the past three years. Prior to joining Our Hong Kong Foundation, Ms. Li Kam Fun had a distinguished career that spanned 34 years with
Amway Corporation. When she retired in 2011, she held the concurrent positions of Executive Vice President of Amway Corporation and Executive
Li Kam Fun
Chairman of Amway China Co. Ltd. responsible for Amway Greater China & Southeast Asia Region. During the last three years, Ms. Li Kam Fun had
also been an independent non-executive director of Amcor Limited (a company listed on the Australian Securities Exchange) from 2014 to 2019, and an
independent non-executive director of Trinity Limited (a company listed on the Main Board of the Hong Kong Stock Exchange) from 2011 to 2020. Ms.
Li Kam Fun’s leadership was well recognised in the business community. She was twice named the ‘‘World’s 100 Most Powerful Women’’ by Forbes
Magazine in 2008 and 2009. CNBC awarded Ms. Li Kam Fun with the ‘‘China Talent Management Award’’ in its 2007 China Business Leaders Awards.
Ms. Li Kam Fun currently holds several positions in public service including member of the Election Committee of Hong Kong (2021-2025), deputy
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secretary of Hong Kong Coalition, director of the Chinese Association of Hong Kong & Macao Studies, honorary special representative, conference
consultant and honorary president of All-China Women's Federation honorary president of the Hong Kong Federation of Women, permanent honorary
、
director of The Chinese General Chamber of Commerce 、 court member of the Open University of Hong Kong and member of the advisory panel of the
Xiqu Centre of the West Kowloon Cultural District Authority. She is currently a director of the 10th Board of Directors of Haier Smart Home Co., Ltd.
Male, born in 1953. He served as Chairman of IBM Greater China region, CEO of IBM Greater China region, etc. He graduated from the Department of
Mathematics of Tamkang University of Taiwan, and studied advanced management courses in the Institute of Business Administration of Harvard
Chien Da-chun
University, as well as the global senior manager courses of International Business Machines Corporation (IBM). He is currently an independent director of
the 10th Board of Directors of Haier Smart Home Co., Ltd.
Male, born in 1956. He received a Bachelor’s of Social Science degree from University of Hong Kong. He has over 36 years of experience in auditing,
assurance and management in Deloitte China. He has been a partner of Deloitte China since 1992 and served as a member of the board of directors of
Deloitte China from 2000 to 2008. Prior to his retirement in May 2017, he was Deloitte China’s National Managing Partner of Audit & Assurance. Mr.
Wong HakKun Wong is an associate of the Hong Kong Institute of Certified Public Accountants (HKICPA), an associate of the Association of Chartered Certified
Accountants (ACCA), an associate of the Chartered Institute of Management Accountants (CIMA), an associate of The Institute of Chartered Secretaries
and Administrators. He currently serves as an independent non-executive director of Yue Yuen Industrial Holdings (Limited), Lung Kee (Bermuda)
Holdings Limited, Guangzhou Automobile Group Co., Ltd., Hangzhou SF Intra-City Industrial Co., Ltd. and Haier Smart Home Co., Ltd.
Male, born in 1967. He holds a bachelor’s and Master’s degree from University of Science and Technology of China, and a PhD degree from Lehigh
University, USA. Mr. Li has extensive experience in Internet of Things technology and artificial intelligence. Mr. Li is currently the director of Applied
Intelligence Research Center of Suzhou Industrial Technology Research Institute. Prior to that, he served as the Chief Researcher and Deputy Dean of
Li Shipeng Microsoft Research Asia, Chief Technology Officer of Cogobuy Group, Vice President of iFlytek Group and Executive President of Shenzhen Institute of
Artificial Intelligence and Robotics. Mr. Li is a member of the International Eurasian Academy of Sciences and a fellow of the International Institute of
Electrical and Electronics Engineers (IEEE fellow). He was listed as one of the world’s top 1,000 computer scientists by Guide2Research and ranked top
20 in Mainland China in 2020. Mr. Li is a renowned expert in Internet, computer vision, cloud computing, Internet of Things and artificial intelligence. He
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is currently an independent director of the 10th Board of Directors of Haier Smart Home Co., Ltd.
Male, born in 1967. He has 25 years of (New PCEBG) experience in world-class management and consulting companies. He is currently a senior consultant
for Foxconn’s D sub-business group strategy and intelligent manufacturing and a consultant of Xnode, a famous accelerator for startups, and independent
director of the 10th session of the Board of Haier Smart Home Co., Ltd. He served as the vice president (Global) and vice chairman (Greater China) of
Accenture, and the chairman of Shun Zhe Technology Development Co., Ltd. He was a member and the president (Greater China) of Roland Berger’s
Global Management Committee, a member of Roland Berger’s Global Supervisory Board. He was awarded 2015 Outstanding Talent in Jing’an District,
Wu Qi Shanghai. Mr. Wu’s experience in consulting industry involves transportation/logistics, high-tech manufacturing, tourism, finance, consumer goods, real
estate, government departments and other industries. His has extensive experience in development strategy, organizational change, sales and brand strategy,
corporate innovation, digital transformation and intelligent manufacturing, post-merger integration, regional industrial and economic development and
upgrading. He is a well-known expert in China in Industry 4.0, transportation and regional planning and development. He served as a consultant for
Hangzhou Bay Development Planning, a member of the Intelligent Manufacturing Expert Committee of Municipal Government, deputy head of the 13th
Five-Year Planning Expert Committee of Zhengzhou City, Henan Province, vice chairman of China Cold Chain Alliance.
Female, born in 1970. She is a Chartered Global Management Accountant (CGMA). She joined Haier in August 1992, served as the director of overseas
market development, head of department of financial management, Chief Financial Officer (CFO), senior vice president of Haier Group and the vice
chairman of the 10th session of the Board of Haier Smart Home Co., Ltd. She is currently the vice chairwoman, executive vice president of the Board of
Haier Group, chairwoman of board of directors of Qingdao Haier Biomedical Co., Ltd. and the chairwoman of board of directors of INKON Life
Tan Lixia
Technology Co., Ltd. She currently holds several social positions including: member of the 12th Standing Committee of the All-China Women’s Federation
(resigned)
and the vice president of the China Women Entrepreneurs Association, president of Shandong Women Entrepreneurs Association and vice chairwoman of
the 13th Standing Committee of Qingdao Women’s Federation. In recent years, she was successively awarded Model Worker of Shandong Province,
Outstanding Entrepreneur of the State, Special Allowance of State Council, ‘March 8’ Red-Banner Holders of the State’, Taishan Industry Leading Talent,
High-end Financial Talent of Shandong Province and Outstanding Communist Party Member of Shandong Province.
Dai Deming Male, born in 1962. He is currently a professor and doctoral supervisor of the department of accounting of the Renmin Business School, concurrently
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(resigned) holding the position of vice president of Accounting Society of China. He once served as an independent director of Beijing Capital Development Co., Ltd.
and an independent director of the 10th Board of Directors of Haier Smart Home.
Male, born in 1980. He holds a Master’s degree in Business Administration from Renmin University of China. He is a senior engineer. From August 2005
to September 2010, he served as a designer of water heater department of Heater Head Office at Haier Group, an assistant R&D engineer, a R&D engineer
and a R&D model manager of the heater R&D center of the Heater Head Office of Haier Group successively. From September 2010 to October 2015, he
was the deputy secretary of the Youth League Committee of Haier Group. From October 2015 to July 2020, he was the deputy secretary of the Disciplinary
Liu Dalin
Committee of Haier Group. From July 2020 to March 2021, he was the executive deputy secretary of the Disciplinary Committee of Haier Group and the
president of the Supervisory Committee of Gooday Supply Chain Technologies Co., Ltd. From March 2021 to date, he has been serving as the president
of the Supervisory Committee, the secretary of Society and Community department and executive deputy secretary of the Disciplinary Committee of Haier
Group. Mr. Liu has been the president of the 10th session of the Supervisory Committee of Haier Smart Home Co., Ltd. since June 2021.
Female, born in 1969. She once served as the secretary of the Youth League Committee of Haier Smart Home Co., Ltd., the secretary of the labour union
Ma Yingjie of Haier Smart Home Co., Ltd., the contact person of the customer service department of Qingdao Haier Dishwasher Co., Ltd. Currently, she is the head
of Society and Community department and the supervisor of the 10th session of the Supervisory Committee of Haier Smart Home Co., Ltd.
Male, born in 1982. Mr. Yu holds a master’s degree. He serves as the legal manager and employee supervisor of the 10th session of the Supervisory
Yu Miao
Committee of Haier Smart Home Co., Ltd. since April 2012.
Male, born in 1957, he served as the deputy secretary of Party Committee of Haier Group Air-Conditioner Head Office ( 部本调 空团集尔海 ), Washing
Wang Peihua Machine Head Office ( 部本机 衣洗 ), and Haier Group Freezer & Heater Head Office ( 部本热 电柜冷 团集尔海 ), chairman of the labor union of Haier
(retired) Group Technology and Equipment Head Office, deputy secretary of Discipline Inspection Committee head of the Organizational Department of Haier
Group. He served as the president of the 10th session of the Supervisory Committee of Haier Smart Home Co., Ltd.
Male, born in 1960, served as deputy secretary of Discipline Inspection Committee of Qingdao Refrigerator General Factory, party branch secretary and
Ming Guoqing
assistant manager of Qingdao Haier Transportation Company ( 司公 输运尔 海岛青 ), head of the administration department of Qingdao Haier Co., Ltd.,
(retired)
deputy secretary of party committee, secretary of discipline inspection committee and chairman of labour union of Haier Refrigerator Products Head Office
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( 部本品 产箱冰尔海 ), chairman of the labor union of Haier Group, and the supervisor of the 10th session of the Supervisory Committee of Haier Smart
Home Co., Ltd.
Male, born in 1976. He graduated from Wuhan University in 1997 and obtained the double degree in economics and international business administration.
He joined Haier Group in 1997 and currently serves as the general manager of the overseas platform of Haier Smart Home. Mr. Li has held various positions
in Haier Group since 2004, including the assistant director of Asia-Pacific Division, the manager of the Haier ASEAN Center, the manager of the Overseas
Li Pan
Brands Marketing Center, the manager of the Overseas Strategic Center and the director on the operation of overseas markets. He has extensive frontline
management experience in product planning, brand marketing, market exploration and corporate operation. He is currently the vice president of Haier
Smart Home Co., Ltd.
Male, born in 1973, graduated from University Of International Business and Economics with an Executive Master degree in Business Administration in
2011. He is a member of the Chartered Institute of Management Accountants (CIMA). Mr. Gong Wei served as the financial manager of Haier Smart Home
Co., Ltd., senior financial manager and senior financial analyst of Haier Group, chief financial officer of Haier Washing Machine Head Office ( 衣洗 尔海
部本 机 ), chief financial officer of Haier Air-Conditioner Head Office 部 本调 空 尔 海 ), chief financial officer of White Goods Group. Mr. Gong has
Gong Wei
extensive financial management experience. Mr. Gong was granted the honorary titles including Outstanding Young Expert of Qingdao, Outstanding
Accounting Workers of Shandong Province, National Outstanding Accounting Workers, and received several awards, including Top Ten CFO in China by
‘New Money’ Magazine ( 》志 杂财理新 《 )in 2011, 2020 International Finance Leaders of the Year in China. He is currently the chief financial officer and
vice president of Haier Smart Home Co., Ltd.
Male, born in 1977. He graduated from the College of Photoelectric Engineering, Chongqing University with a Bachelor’s degree in Engineering in 1998,
and graduated from the Faculty of Business and Economics of The University of Hong Kong with a Master’s degree in Business Administration in 2004.
From 2009 to 2020, Mr. Huang served as the deputy general manager of Haier Electronics Group Co., Ltd., a subsidiary of the Company, to assist the chief
Huang Xiaowu
executive officer in implementing development strategy, and was responsible for investor relations, strategic investment and equity financing. Mr. Huang
Xiaowu has years of extensive experience in commercial banking, investment, industrial capital management and corporate finance. Prior to joining Haier
Group, he worked in Ningbo branch and Shanghai branch of Industrial and Commercial Bank of China, Investment Banking Division of Guosen Securities,
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Anglo Chinese Investment Banking Group ( 团集 行银资 投高英 ). He is currently the vice president of Haier Smart Home Co., Ltd.
Male, born in 1978. He graduated from Tianjin College of Commerce in 2001 and obtained a Bachelor’s degree in Heat Supply, Ventilation and Air-
conditioning Engineering. He obtained the degree of EMBA from School of Economics and Management of Tsinghua University and the INSEAD in 2015.
Mr. Wu joined Haier in 2001 and currently serves as the general manager of the kitchen appliances and household appliances and the internet of food
Wu Yong
platform of Haier Smart Home. Mr. Wu served as the general manager of the PRC Region in manufacturing and production of refrigerators, overseas
marketing and the air-conditioning business has whole-process management experience in high-end manufacturing, marketing and industrial platforms. He
is currently the vice president of Haier Smart Home Co., Ltd.
Male, born in 1976. He graduated from Qingdao University of Science & Technology in 1998 and obtained a Bachelor’s degree in Fine Chemical
Engineering. Mr. Li joined Haier in 1998 and currently serves as the general manager of washing machine and the internet of clothing platform. Mr. Li was
the manufacturing director and he has held important positions of the internet of clothing platform since 2008 with extensive experience in the quality and
Li Yang systemic management of washing machines, production and manufacturing. The ecological platform of the internet of clothing incubated under his
leadership was awarded the first prize for “Innovation Results in Modern Management of National Light Industry Enterprises” ( 现理管业企业工轻国全
果成 新创化代 ) in 2019. He received the “Most Promising Entrepreneur in Qingdao in 2018” and the “Advanced Individual in Management Innovation of
National Light Industry Enterprises”. He is currently the vice president of Haier Smart House Co., Ltd.
Male, born in 1978. He graduated from Northeast Electric Power University in 2001 and obtained a Bachelor’s degree in Management Information System.
Mr. Guan joined Haier in 2001 and currently serves as the general manager of water heater and the internet of water platform. Mr. Guan has been responsible
for product management, production and manufacturing, product marketing and industrial pipeline management and served as a regional general manager,
Guan Jiangyong
the market director of the water heater business and the general manager of the internet of water platform and the water heater business. He has whole-
process management experience in product manufacturing, marketing, corporate planning management and industrial platforms. He is currently the vice
president of Haier Smart Home Co., Ltd.
Female, born in 1965. She graduated from Qingdao University of Science & Technology in 1986 and obtained a Bachelor’s degree in Heat Supply,
Wang Li
Ventilation and Air-conditioning Engineering. She obtained a Master’s degree in Business Administration from Renmin University of China in June 2013.
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Ms. Wang joined Qingdao Air-conditioner Company in 1988. She has held various positions since 1988, including general manager of Haier’s central air-
conditioner business, general manager of Haier’s residential facilities business and general manager of Haier’s air business. Ms. Wang has management
experience in products and marketing. Ms. Wang has served various industrial positions, including a member of China Refrigeration and Air-Conditioning
Industry Association. Ms. Wang receives grants from the State Council and was awarded the Outstanding Entrepreneur in Light Industry in Shandong
Province, the Labor Model of Qingdao City, the Outstanding Talent in Professional Technology in Qingdao .She is currently the vice president of Haier
Smart Home Co., Ltd.
Female, born in 1964, graduated from Southwestern University of Finance and Economics with a Master’s degree in Economics in 1986. She is a senior
economist, and she was the lecturer of investment department of China Institute of Finance, deputy head of the Teaching and Research section of Investment
Economy Department, a member of treasury department of Everbright International Investment Consultancy Company, deputy director and director of
general manager office, general manager of business management department and general manager of personnel department, assistant to the general
manager, executive vice president of Everbright International Investment Consultancy Company; she was the office director of analysts professional
committee of the Securities Association of China, vice director of Qualification Management Department of the Securities Association of China, vice
Ming Guozhen
director of Practice Standards Committee ( 会 员委 准标 业执 ) of the Securities Association of China. She joined Haier in August 2007 and served as the
business director and merger & acquisition director of Haier Asset Operation Division from August 2007 to May 2008. She has been a vice general manager
since May 2008 and the board secretary since April 2009 of Haier Smart Home. She has played a leading role and participated in the introduction of
strategic investors, M&A of GEA/FPA and internal integration, issue of convertible bonds/exchangeable bonds, issue of D-Share/H-Share. She was awarded
as a member of “Board Secretary Hall of Fame ( 堂人名 秘董 牌金 )” at the 12th session of New Finance Election in June 2016.She is currently the secretary
to the Board of Haier Smart Home.
Other information
□ Applicable √Not Applicable
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Haier Smart Home Co., Ltd. 2021 Annual Report
(II) Appointment of current and departing of Directors, Supervisors and
Senior Management during the reporting period
1. Appointment in shareholder units
√ Applicable Not Applicable
Name of
Start date of End date of
Name shareholder Position
appointment appointment
unit
Haier
COSMO Co.,
Liang Haishan Director, General manager
Ltd.
Liang Haishan Haier Group Vice Chairman of the Board,
President of the Supervisory
Committee, the Secretary of
Haier Group Society and Community
Liu Dalin March 2021
Corporation Department, Executive
Deputy Secretary of the
Disciplinary Committee
Haier
September
Tan Lixia COSMO Co., Director
2014
Ltd.
Haier Group Vice chairwoman, Executive February
Tan Lixia
Corporation Vice President of the Board 2016
Explanation of
appointment in
Nil
shareholder
units
2. Appointment in other units
√ Applicable □ Not Applicable
Start date of End date of
Name Name of other unit Position
appointment appointment
Haier Group Finance Co.,
Liang Haishan Director
Ltd.
Qingdao Haier multimedia Chairman of the
Liang Haishan
Co., Ltd. Board
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Wu Changqi Peking University Professor
Wu Changqi China Hua Xia Bank Co., Ltd. Supervisor May 2015 May 2021
Independent
Wu Changqi Yijiahe Technology Co., Ltd. August 2018
director
Dean of School
Wu Changqi Shandong University October 2019
of Management
Tianneng Battery Group Co., Independent 19 February
Wu Changqi
Ltd. director 2019
Shenwan Hongyuan Group Independent
Wu Changqi May 2021
Co., Ltd. director
Yue Yuen Industrial Independent
Wong HakKun June 2018
(Holdings) Limited director
Lung Kee (Bermuda) Independent
Wong HakKun June 2018
Holdings Limited director
Hangzhou SF Intra-City Independent November
Wong HakKun
Industrial Co., Ltd. director 2021
Guangzhou Automobile Independent
Wong HakKun May 2020
Group Co., Ltd. director
Zhejiang Cangnan Instrument Independent
Wong HakKun June 2018 July 2021
Group Company Limited director
Keck Seng Investments (Hong Independent Non-
Yu Hon To April 2013
Kong) Limited executive director
Independent Non-
Yu Hon To MS Group Holdings Limited May 2018
executive director
China Resources Gas Group Independent Non- December
Yu Hon To
Limited executive director 2012
Independent Non-
Yu Hon To One Media Group Limited June 2005
executive director
China Renewable Energy Independent Non-
Yu Hon To April 2008 January 2022
Investment Limited executive director
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Haier Smart Home Co., Ltd. 2021 Annual Report
Independent Non-
Yu Hon To Playmates Holdings Limited April 1995 May 2021
executive director
Media Chinese International Independent Non-
Yu Hon To March 1999 July 2021
Limited executive director
New Century Real Estate Independent Non-
Yu Hon To June 2013 September 2021
Investment Trust executive director
Independent Non-
Yu Hon To Playmates Toys Limited May 2021
executive director
Independent
Lin Sui Focus Hotmelt Company Ltd. August 2020 July 2023
director
Applied Artificial Intelligence
Research Center
Li Shipeng Director
Of the Suzhou Industrial
Technology Research Institute
The Chinese University of
Li Shipeng Visiting Professor
Hong Kong (Shenzhen)
Qingdao Huaqiao Industrial
Ming Guozhen Director July 2008
Co., Ltd.
Haier Group Authorized
Tan Lixia (Qingdao) Jinying Holding representative, July 2014
Co.,Ltd. Director
Non-executive
Tan Lixia Bank of Qingdao Co., Ltd. April 2012
Director
Wanlian Holding Co., Ltd. ( 万 Chairwoman,
Tan Lixia
司公限 有股控链 ) Manager
Yingkang Life Technology Co.,
Tan Lixia Chairwoman 16 May 2019
Ltd.
Qingdao Haier Biomedical Co.,
Tan Lixia Chairwoman July 2018
Ltd.
China Zheshang Bank Co., Independent Non-
Dai Deming March 2015 July 2021
Ltd. executive director
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Haier Smart Home Co., Ltd. 2021 Annual Report
Independent Non-
Dai Deming BOC Aviation Limited
executive director May 2016
Independent Non-
Dai Deming CSC Financial Co., Ltd.
executive director August 2016
Power Construction Independent Non-
Dai Deming
Corporation of China, Ltd. executive director March 2018
Poly Developments and Independent Non- September
Dai Deming
Holdings Corporation Limited executive director 2018
Explanation of
appointment in Nil
other units
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Haier Smart Home Co., Ltd. 2021 Annual Report
(III) Compensation of Directors, Supervisors and Senior Management
√ Applicable □ Not Applicable
Decision-making process of The decision-making process of the Company for the
compensation of Directors, remuneration of directors, supervisors and senior management
Supervisors and Senior personnel is to establish a platform, define standards,
Management communicate and negotiate, and make objective decisions. The
Remuneration Committee of the Company shall formulate the
remuneration standards, adjust principles, and assess and
implement the principles and submit to the Board of Directors
for consideration and approval. The actual remuneration for the
year is determined according to the evaluation results such as
the ecosystem micro-community contract, Rendanheyi
scorecard, vertical and horizontal indicators and win-win value
appreciation table.
Determining basis of matrix The 2021 remuneration system of the management of the
compensation of Directors, Company reflects the ecosystem micro-community contract,
Supervisors and Senior high value-adding and high sharing, which is linked with win-
Management win value appraisal and Rendanheyi principle Vertically, the
Rendanheyi scorecard represents strategic undertaking and
ecosystem micro-community upgrade initiation, and
horizontally, it embodies the global leadership and ecosystem
achievements of the market competitiveness, which leads to the
upgrading from “high-end brand” to “scenario brand” and
“ecosystem brand”. The remuneration competitiveness is
determined based on elements of “strategic undertaking”,
“market competitiveness”, “micro-community initiation” and
“ecosystem achievements”. The senior management receives an
annual assessment of performance for the year, which is a key
factor in determining bonuses and On one hand, the overall
Rendanheyi remuneration system forms a diversified
combination of the management’s remuneration incentives,
which is oriented towards creating user value and ecosystem
value. On the other hand, it also makes the remuneration
mechanism of the management more flexible, which encourages
innovation and maximization of individual’s value. At the same
time, the Company has implemented measures such as the core
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Haier Smart Home Co., Ltd. 2021 Annual Report
employee stock ownership scheme, share option incentive to
enhance the incentive and mechanisms and establish a benefits
and risk sharing mechanism between the Company and the
operational and managerial personnel based on the user oriented
value creation principle.
After the approval by the general meeting, the adjusted
maximum allowance for the director of the Tenth Session of the
Board of Directors is RMB260,000/year before tax, of which
fixed allowance is RMB210,000/year, and the maximum
performance allowance is RMB50,000/year. The specific
amount of performance allowance will be determined according
to the comprehensive consideration of directors’ contribution to
the decision-making of the Board, effectiveness of resolutions
and suggestions to the Board, participation of the Board of
Directors, attendance of board meetings. The travelling
expenses of directors attending Board meetings and general
meetings and the expenses required for performing their duties
and according to the Articles of Association of the Company
will be reimbursed.
Actual compensation paid to
Directors, Supervisors and Senior Paid as prescribed.
Management
Total of actual compensation
paid to all Directors, Supervisors
RMB18,088,500
and Senior Management at the
end of the reporting period
(IV) Changes in of Directors, supervisors and senior management of the Company
√Applicable □Not Applicable
Name Position Method of Change Reason for Change
Xie Juzhi Vice President Election New Election
Yu Hon To Director Election New Election
Li Kam Fun Director Election New Election
Li Shipeng Independent director Election New Election
Wu Qi Independent director Election New Election
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Haier Smart Home Co., Ltd. 2021 Annual Report
Liu Dalin Chairman of the Board Election New Election
of Supervisors
Ma Yinjie Supervisor Election New Election
Li Pan Vice President Appointment New Appointment
Huang Xiaowu Vice President Appointment New Appointment
Wu Yong Vice President Appointment New Appointment
Li Yang Vice President Appointment New Appointment
Guan Jiangwu Vice President Appointment New Appointment
Wang Li Vice President Appointment New Appointment
Tan Lixia Vice Chairman of the Resignation Resignation
Board
Dai Deming Independent director Resignation Resignation on
expiration
Wang Peihua Chairman of the Board Resignation Resignation
of Supervisor
Ming Guoqing Supervisor Resignation Resignation
(V) Explanation of penalties imposed by securities regulators in the past three years
□Applicable √Not Applicable
(VI) Others
□Applicable √Not Applicable
V. RELEVANT INFORMATION ON THE BOARD MEETINGS HELD DURING THE
REPORTING PERIOD
VI. Meeting Date Resolutions approved
Considered and approved the Proposal on Amending the
Articles of Association of Haier Smart Home Co., Ltd., the
Proposal on the Election of Directors of Haier Smart Home
Co., Ltd., the Proposal on the Election of Independent Non-
The 15th meeting of executive Directors of Haier Smart Home Co., Ltd., the
the Tenth session of 7 February Proposal on Reorganizing the Senior Management Team of
the Board of 2021 Haier Smart Home Co., Ltd., the Proposal on Replacing H-
Directors share Company Secretary of Haier Smart Home Co., Ltd.,
the Proposal on the Appointment of an Audit Firm for
International Accounting Standards in 2020 of Haier Smart
Home Co., Ltd., the Proposal on Convening the First
Extraordinary General Meeting of 2021 and the First Class
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Haier Smart Home Co., Ltd. 2021 Annual Report
Meeting of A-Shares / D-Shares / H-Shares of 2021 of
Haier Smart Home Co., Ltd.
Considered and approved the Proposal on Establishment of
Environmental, Social and Governance Committee and
Appointment of Members of Haier Smart Home Co., Ltd.,
the Proposal on Formulation of the Implementing Rules of
The 16th meeting of the Environmental, Social and Governance Committee of
the Tenth session of the Board of Directors of Haier Smart Home Co., Ltd., the
5 March 2021
the Board of Proposal on Adjusting the Composition of Special
Directors Committees of the Board of Directors of Haier Smart Home
Co., Ltd., the Proposal on Election of Vice Chairman of the
Company of Haier Smart Home Co., Ltd., and the Proposal
on the Scheme of Repurchase of a Portion of A-share Public
Shares of Haier Smart Home Co., Ltd.
Considered and approved Report on the 2020 Annual
Financial Statements of Haier Smart Home Co., Ltd., 2020
Annual Report and Annual Report Summary of Haier Smart
Home Co., Ltd., 2020 Annual Work Report of the Board of
Directors of Haier Smart Home Co., Ltd., 2020 Annual
Corporate Social Responsibility Report of Haier Smart
Home Co., Ltd., 2020 Annual Internal Control Evaluation
Report of Haier Smart Home Co., Ltd., Internal Control
Audit Report of Haier Smart Home Co., Ltd., 2020 Annual
Profit Distribution Plan of Haier Smart Home Co., Ltd., the
The 17th meeting of
Resolution on the Anticipated Provision of Guarantees for
the Tenth session of 30 March
its Subsidiaries in 2021, the Resolution on the Conduct of
the Board of 2021
Foreign Exchange Fund Derivatives Business of Haier
Directors
Smart Home Co., Ltd., the Resolution on the Election of
Independent Director of Haier Smart Home Co., Ltd., the
Resolution on Adjusting the Allowance of Directors of
Haier Smart Home Co., Ltd., the Resolution on Closing
Certain Fund-raising Projects through Convertible
Corporate Bonds and Permanently Supplementing the
Working Capital with the Surplus Funds of Haier Smart
Home Co., Ltd. , the Resolution on the Postponement of
Certain Investment Projects with the Funds Raised from
Convertible Corporate Bonds of Haier Smart Home Co.,
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Haier Smart Home Co., Ltd. 2021 Annual Report
Ltd., the Resolution on the Special Report on the Deposit
and Actual Use of the Funds Raised in 2020 of Haier Smart
Home Co., Ltd., the Resolution on Proposing the General
Meeting to Grant General Mandate to the Board of
Directors on Additional Issuance of H-shares of Haier
Smart Home Co., Ltd., the Resolution on Proposing the
General Meeting to Grant General Mandate to the Board of
Directors on Additional Issuance of D-shares of Haier
Smart Home Co., Ltd., the Resolution on Proposing the
General Meeting to Grant the General Mandate to the Board
of Directors to Repurchase not more than 10% of the Total
Number of H-shares of the Company in Issue of Haier
Smart Home Co., Ltd., the Resolution on Proposing the
General Meeting to Grant the General Mandate to the Board
of Directors to Repurchase not more than 10% of the Total
Number of D-shares of the Company in Issue of Haier
Smart Home Co., Ltd., the Resolution on Amending the
Articles of Association of Haier Smart Home Co., Ltd., the
Resolution on Amending the Rules of Procedure for the
Board of Directors of Haier Smart Home Co., Ltd., the
Resolution on Amending the Management System of
External Guarantees of Haier Smart Home Co., Ltd., the
Resolution on Amending the Management System of
Information Disclosure of Haier Smart Home Co., Ltd., the
Resolution on Unified Expression of Amended Parts of
Corporate Systems of Haier Smart Home Co., Ltd., and the
Resolution on Convening the 2020 Annual General
Meeting and the Second A-shares / D-shares / H-shares
Class Meetings of 2021 of Haier Smart Home Co., Ltd.
Considered and approved the 2021 First Quarterly Report
of Haier Smart Home Co., Ltd., the Proposal on Re-
The 18th meeting of appointment of PRC GAAP Auditor of Haier Smart Home
the Tenth session of Co., Ltd., the Proposal on Re-appointment of IFRS Auditor
29 April 2021
the Board of of Haier Smart Home Co., Ltd., Proposal of Haier Smart
Directors Home Co., Ltd. on Renewal of the Financial Services
Framework Agreement and its Expected Related Party
Transaction Limit with Haier Group and Haier Finance
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Haier Smart Home Co., Ltd. 2021 Annual Report
Considered and approved the A Share Core Employee
Stock Ownership Plan of Haier Smart Home Co.,
Ltd.(2021-2025) (draft) and its Abstract, the H Share Core
Employee Stock Ownership Plan of Haier Smart Home Co.,
Ltd.(2021-2025) (draft) and its Abstract, Resolution on
Proposal to the General Meeting for Authorizing the Board
The 19th meeting of
of Directors to Handle Matters Relevant to the Company's
the Tenth session of
25 May 2021 Core Employee Stock Ownership Plan of Haier Smart
the Board of
Home Co., Ltd., H Share Restricted Share Unit Scheme of
Directors
Haier Smart Home Co., Ltd. (2021-2025) (draft), the
Resolution on Proposal to the General Meeting to Authorize
the Board of Directors or its Authorized Persons to Handle
Matters Related to Restricted Share Unit Plans of Haier
Smart Home Co., Ltd.
The 20th meeting of Considered and approved the Resolution of Haier Smart
the Tenth session of Home Co., Ltd. on Adjustments of the Composition of the
25 June 2021
the Board of Special Committees of the Board
Directors
Considered and approved the 2021 A Share Option
Incentive Scheme of Haier Smart Home Co., Ltd. (draft)
and Summary, the 2021 Management Practices for the
Assessment of A Share Option Incentive Scheme of Haier
The 21th meeting of Smart Home Co., Ltd., the Resolution of Haier Smart Home
the Tenth session of Co., Ltd. on Proposal to the General Meeting to Authorize
29 July 2021
the Board of the Board of Directors and its Authorized Persons to Take
Directors Full Control of the Matters Relating to the Company's 2021
A Share Option Incentive Scheme, the Proposal on
Convening the Second Extraordinary General Meeting of
2021 and the Third Class Meeting of A-Shares / D-Shares /
H-Shares of 2021 of Haier Smart Home Co., Ltd.
Considered and approved 2021 Interim Report of Haier
22nd meeting of the
Smart Home Co., Ltd. and its Summary, the Special Report
Tenth session of the
30 August on the Deposit and Actual Use of Raised Funds in the First
Board of Directors
2021 Half of 2021 of Haier Smart Home Co., Ltd., the Proposal
of Haier Smart
on the Use of Idle Raised Funds for Cash Management of
Home Co., Ltd.
Haier Smart Home Co., Ltd.
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Haier Smart Home Co., Ltd. 2021 Annual Report
Considered and approved the Resolution of Haier Smart
Home Co., Ltd. on Adjusting the Exercise Price of 2021 A
Share Stock Option Incentive Plan, the Resolution of Haier
23rd meeting of the Smart Home Co., Ltd. on First Grant of Stock Options to
Tenth session of the the Participants, the Resolution of Haier Smart Home Co.,
15 September
Board of Directors Ltd. on the Issue and Listing of New H Shares on the Main
2021
of Haier Smart Board of the Stock Exchange of Hong Kong Limited, the
Home Co., Ltd. Resolution of Haier Smart Home Co., Ltd. on
Determination of Authorized Person with Full Authority to
Handle Matters Relating to the Company's Overseas
Issuance of H Shares and Listing
24th meeting of the Considered and approved the 2021 Third Quarterly Report
Tenth session of the of Haier Smart Home Co., Ltd., the Resolution of Haier
29 October
Board of Directors Smart Home Co., Ltd. on Acquisition of Equity Interests in
2021
of Haier Smart Subsidiaries Held by Haier Group Corporation and
Home Co., Ltd. Connected Transactions
Considered and approved the Resolution of Haier Smart
25th meeting of the
Home Co., Ltd. on the Grant of the Reserved Share Options
Tenth session of the
15 December under the 2021 A Share Option Incentive Scheme to the
Board of Directors
2021 Participants, the Resolution of Haier Smart Home Co., Ltd.
of Haier Smart
on Additional Capital Injection into a Subsidiary and
Home Co., Ltd.
Establishment of Smart Lifestyle Appliances Division
VI. PERFORMANCE OF DUTIES BY DIRECTORS
(I) Attendance of board meetings and general meetings by directors
Attendances
Attendance of Board meetings at general
Whether an meetings
Name of Independent Absence from
Required Number of
director director or Attendan two
attendances of Attendance by Attendance attendance
not ce in Absence consecutive
Board telecommunication by proxy of general
person meetings in
meetings meetings
person or not
Liang
NO 11 11 0 0 0 NO 8
Haishan
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Haier Smart Home Co., Ltd. 2021 Annual Report
Li
NO 11 11 2 0 0 NO 8
Huagang
XieJuzhi NO 10 10 0 0 0 NO 8
Wu
NO 11 11 11 0 0 NO 4
Changqi
Lin Sui NO 11 11 11 0 0 NO 0
Yu Hon To NO 10 10 10 0 0 NO 8
Li Kam
NO 10 10 10 0 0 NO 8
Fun
Chien Da-
YES 11 11 11 0 0 NO 4
chun
Wong
YES 11 11 11 0 0 NO 4
HakKun
Li Shipeng YES 10 10 9 0 0 NO 4
Wu Qi YES 6 6 6 0 0 NO 0
Tan Lixia
NO 3 3 2 0 0 NO 4
(Resigned)
Dai
Deming YES 5 5 5 0 0 NO 0
(Resigned)
Explanation for absence from two consecutive Board meetings in person
□ Applicable √ Not Applicable
Number of Board meetings held in the year 11
Of which: Number of on-site meetings 0
Number of meetings held by telecommunication 0
Number of meetings held both on site and by
11
telecommunication
(II) Directors’ objection to the relevant matters of the Company
□ Applicable √ Not Applicable
(III) Others
□ Applicable √ Not Applicable
VII. THE SPECIAL COMMITTEES OF THE BOARD
√ Applicable □ Not Applicable
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Haier Smart Home Co., Ltd. 2021 Annual Report
(1). Personnel of The Special Committees of the Board
Categories of The Special
Name of Personnel
Committees
Wong HakKun, Chien Da-chun, Wu Qi, Yu Hon To, Wu
Audit Committee
Changqi
Wu Qi, Chien Da-chun, Wong HakKun, Li Shipeng, Liang
Nomination Committee
Haishan, Yu Hon To
Remuneration and Appraisal Chien Da-chun, Li Shipeng, Wu Qi, Liang Haishan, Wu
Committee Changqi
Liang Haishan, XieJuzhi, Li Huagang, Lin Sui, Wu Qi, Li
Strategy Committee
Shipeng
ESG Committee (Environment,
Society and Governance Li Kam Fun, Li Huagang, Lin Sui, Chien Da-chun
Committee)
(2). The Company convened 7 Audit Committee meetings during the reporting period
Other Notes
Major
Date of on
Contents of Meeting Opinions and
Meeting Performance
Suggestions
of Duty
Considered and approved 2020 Annual Report on
audit work plan of Haier Smart Home Co., Ltd., the
25 January No
Resolution of Haier Smart Home Co., Ltd. on Nil
2021 Objections
Appointments of International Accounting Standard
Auditor in 2020
Considered and Approved the Preliminary
Considerations on the 2020 Annual Financial
26 March Report of Haier Smart Home Co., Ltd., the No
Nil
2021 Preliminary Considerations on the 2020 Annual Objections
Audit Report of Internal Control of Haier Smart
Home Co., Ltd.
Considered and approved the 2020 Annual
Financial Accounts Report of Haier Smart Home
Co., Ltd., the 2020 Annual Report on the Self-
30 March
Assessment Report on Internal Control of Haier No objections Nil
2021
Smart Home Co., Ltd., the 2020 Annual Audit
Report of Internal Control of Haier Smart Home
Co., Ltd., the resolution of Haier Smart Home Co.,
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Haier Smart Home Co., Ltd. 2021 Annual Report
Ltd. on the Expected Provision of Guarantee for
subsidiaries in 2021, the Resolution of Haier Smart
Home Co., Ltd. on Conducting foreign exchange
funds derivatives business, 2020 Annual Profit
Distribution Plan of Haier Smart Home Co., Ltd.,
2020 Annual Report on Performance of Duties of
the Audit Committee of the Board of Haier Smart
Home Co., Ltd.
Considered and approved the 2021 First Quarterly
Financial Report of Haier Smart Home Co., Ltd.,
the Resolution of Haier Smart Home Co., Ltd. on
Re-assignment of International Accounting
28 April No
Standard Auditor, the Resolution of Haier Smart Nil
2021 Objections
Home Co., Ltd. on Renewing the Financial Service
Framework Agreements with Haier Group
Corporation and Estimated Amount of Connected
Transactions
26 August Considered and approved the 2021 Interim No
Nil
2021 Financial Report of Haier Smart Home Co., Ltd. Objections
Considered and approved the 2021 third quarterly
Financial Report of Haier Smart Home Co., Ltd.,
27
the Resolution of Haier Smart Home Co., Ltd. on No
October Nil
Acquisition of Equity Interests in Subsidiaries held Objections
2021
by Haier Group Corporation and Connected
Transactions.
20
Considered and approved the 2021 Annual Report No
December Nil
on Audit work Plan of Haier Smart Home Co., Ltd. Objections
2021
(3). The Company convened 2 Nomination Committee meetings during the reporting period
Major Other Notes on
Date of
Contents of Meeting Opinions and Performance of
Meeting
Suggestions Duty
Considered and approved the resolution of Haier Smart Home
7
Co., Ltd. on Election of Additional Directors of the Company, No
February Nil
the resolution of Haier Smart Home Co., Ltd. on Election of Objections
2021
Additional Independent Non-executive directors of the
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Haier Smart Home Co., Ltd. 2021 Annual Report
Company, the Resolution of Haier Smart Home Co., Ltd. on
Restructuring of the Company's Senior Management Team
Considered and approved the Report of Nomination
Committee of the Board of Haier Smart Home Co., Ltd. on the
Performance of Duty of Current Directors, Supervisors and
30 March No
Senior Management, the Resolution of Haier Smart Home Co., Nil
2021 Objections
Ltd. on the Election of Independent directors, the 2020 Annual
Report on the Performance of Duty of the Nomination
Committee of the Board of Haier Smart Home Co., Ltd.
(4). The Company convened 4 Remuneration and Appraisal Committee meetings during the reporting
period
Major Other Notes on
Date of
Contents of Meeting Opinions and Performance
Meeting
Suggestions of Duty
Considered and approved the 2020 Annual Report of Haier
Smart Home Co., Ltd. on Incentives for Senior Management
of the Company and Implementation of Remuneration
Assessment for Directors and Senior Management, the 2021
30 March No
Annual Report of Haier Smart Home Co., Ltd. on Nil
2021 Objections
Remuneration and Assessment Scheme of Directors and
Senior Management, the 2020 Annual Report of Haier Smart
Home Co., Ltd. on Performance of Duties of the
Remuneration and Appraisal Committee of the Board
Considered and approved Stock Ownership Plan of A Share
Core Employee of Haier Smart Home Co., Ltd.(2021-
25 May 2025)(Draft) and Summary, Stock Ownership Plan of H Share No
Nil
2021 Core Employee of Haier Smart Home Co., Ltd.(2021- Objections
2025)(Draft) and Summary, the H Share Restricted Share Unit
Scheme of Haier Smart Home Co., Ltd. (2021-2025) (Draft)
Considered and approved the 2021 A Share Option Incentive
29 July Scheme of Haier Smart Home Co., Ltd. (draft) and Summary, No
Nil
2021 the 2021 Management Practices for the assessment of A Share Objections
Option Incentive Scheme of Haier Smart Home Co., Ltd..
15 The Resolution of Haier Smart Home Co., Ltd. on Grant of
No
December Reserved Stock Options under the 2021 A Share Stock Option Nil
Objections
2021 Incentive Plan to Incentive Recipients
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Haier Smart Home Co., Ltd. 2021 Annual Report
(5). The Company convened 3 Strategy Committee meetings during the reporting period
Major Other Notes on
Date of
Contents of Meeting Opinions and Performance
Meeting
Suggestions of Duty
Considered and approved the Resolution of Haier Smart
Home Co., Ltd. on the Closing of Some the Convertible
Corporate Bonds Raised Funds Investment Projects and
Allocation of the Surplus Proceeds as Supplementary
30 March Working Capital on a Permanent Basis, the Resolution of No
Nil
2021 Haier Smart Home Co., Ltd. on the Postponement of Objections
Some Convertible Corporate Bond Raised Funds
Investment Projects, the 2020 Annual Report on the
Performance of Duties of the Strategy Committee of the
Board of Haier Smart Home Co., Ltd.
Considered and approved the Resolution of Haier Smart
29 October Home Co., Ltd. on Acquisition of Equity Interests in No
Nil
2021 Subsidiaries held by Haier Group Corporation and Objections
Connected Transactions
Considered and approved the Resolution of Haier Smart
15
Home Co., Ltd. on Capital Increase to subsidiaries and No
December Nil
establishing the Business Division of Smart Living Objections
2021
Appliances.
(6). The Company convened 1 meeting of the ESG Committee during the reporting period
Other Notes on
Date of Major Opinions
Contents of Meeting Performance of
Meeting and Suggestions
Duty
Considered and approved the 2020 Social
29 March
Responsibility Report of Haier Smart No Objections Nil
2021
Home Co., Ltd.
(7). Details of Disagreements
□ Applicable √ Not Applicable
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Haier Smart Home Co., Ltd. 2021 Annual Report
VIII. SUPERVISORY COMMITTEE’ EXPLANATION ON RISKS ABOUT THE
COMPANY
□ Applicable √ Not Applicable
Supervisory Committee had no objections to the supervising items during the reporting period.
IX. INFORMATION ON STAFF OF THE PARENT COMPANY AND PRINCIPAL
SUBSIDIARIES AT THE END OF THE REPORTING PERIOD
(I) Staff Information
Number of staff of the parent company 68
Number of staff of Principal subsidiaries 104,806
Total number of staff 104,874
Number of employees whose retirement expenses are borne by the parent
0
company and the principal subsidiaries
Breakdown by Function
Function Number
Production 60,286
Sales 18,283
Technical 22,161
Financial 1,729
Administrative 2,415
Total 104,874
Breakdown by Education Background
Education Number(person)
Bachelor and above 30,898
College Diploma 26,466
Secondary vocational training diploma and below 47,510
Total 104,874
(II) Remuneration policies
√ Applicable □ Not Applicable
The Company implements a value-creation-centric, user-paid, and Rendanheyi remuneration
system, which takes user value-added experience as a test and originates from the Haier strategic profit
and loss statement. It assesses the creation of user value, ecosystem micro-community initiation upgrade,
target-oriented budget implementation, ecosystem results and continuous optimization based on
ecosystem micro-community contracts, Rendanheyi scorecard and win-win value appreciation table.
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Haier Smart Home Co., Ltd. 2021 Annual Report
This incentive mechanism guides the user-paid salary, makers for everyone, and sharing and win-win
oriented, creates ecosystem value and builds the ecosystem brand of the Internet of Things.
(III) Personnel Training
√ Applicable □ Not Applicable
The Company adheres to the concept of “Everyone can develop, everyone should be heard” and
builds an ecological platform in the era of Internet of Things, thus realizing the best experience and
accelerated development of creators through building a system of non-linear development and diversified
cultivation.
The Company puts high priority on talent cultivation, abundant study resources and diversified
study forms, in order to facilitate makers to improve their professionalism, expertise and leadership skills.
The training courses include corporate culture, project management, English open classes, office skills,
series of professional classes, etc., simultaneously adopting live streaming, offline customization, online
studying, community forums and other forms of studying, building an open, sharing, efficient and
diversified studying ecosystem of Smart Living.
For details please refer to 2021 Environment, Social and Governance Report of Haier Smart Home
Co., Ltd. published on the same date as this report.
(IV) Labor Outsourcing
□ Applicable √ Not Applicable
X. PROPOSAL OF PROFIT DISTRIBUTION OR CAPITALIZATION OF CAPITAL
RESERVE
(I) Formulation, implementation or adjustment of the cash dividend policies
√ Applicable □ Not Applicable
The Company’s 2020 profit distribution plan was passed on its 2020 Annual General Meeting held
on 25 June 2021: based on the Company’s total existing shares (deducting the repurchased shares) of
9,346,772,322 (including 6,262,154,495 A shares , 271,013,973 D shares and 2,813,603,854 H shares),
it was proposed that the Company would distribute cash dividends of RMB3.66 (tax inclusive) per 10
shares to all shareholders, with a total amount before tax of RMB3,420,918,669.85(tax inclusive). The
plan was implemented and completed in August 2021. Details were set out in the Announcement on
Implementation of Rights and Interests Distribution of A-shares for 2020 of Haier Smart Home Co., Ltd.
(No: L2021-066) published by the Company on the four major securities newspapers and the website of
Shanghai Stock Exchange on 17 August 2021 and relevant announcements in respect of dividend
distribution of D shares and H shares published on the Company’s website, Hong Kong Stock Exchange
and other publication platforms.
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Haier Smart Home Co., Ltd. 2021 Annual Report
The Company has always applied a stable and sustainable profit distribution policy. During the
reporting period, the Company strictly followed the requirements set out in the Articles of Association
and in the Shareholder Return Plan for the Next Three Years of the Company. During the formulation of
the profit distribution plan, the Company took full account of return for investors, the long-term interests
of the Company, overall interests of all shareholders and sustainable development of the Company, and
continued to implement the stable dividend distribution policy to provide investors an opportunity to
share the growth of value, so that investors could form the expectation of a stable return. The procedures
and mechanisms for decision-making such as Articles of Association and planning of return of
shareholders implemented by the Company were complete in compliance with laws and regulations. The
process was open and transparent while the standard and ratio of dividends was clear. Responsibilities
of independent directors were clear during the policy-making process, and independent directors were
given the opportunities to play their roles. Minority shareholders were also given the opportunity to fully
express their views and demands, and the legitimate interests of minority shareholders were adequately
protected.
The dividend distribution plan of 2021 of the Company: based on the total number of shares after
deducting the repurchased shares on equity interest record date for future profit distribution, it is proposed
that the Company will distribute cash dividend of RMB4.60 per 10 shares (tax inclusive) with cash
dividend of RMB 4,320,413,011.54. related to the Company’s principal business in order to maintain
sustainable and stable development and to create value for investors. The proportion of this distribution
is 33.1% of the net profit attributable to owners’ parent company in 2021 (In 2021, the Company spent
RMB2.202 billion and HK$1 billion on the purchase of A shares and H shares; if this is included in cash
dividends, the ratio of cash dividends to net profit attributable to owners’ parent company for the year
would be 56.3%).100% dividend is paid in cash.
(II) Notes to the cash dividend policies
√ Applicable□ Not Applicable
Whether in compliance with regulations of the Articles of Association and
Requirements of the resolutions of the general meeting √Yes □No
Whether the standard and ratio of dividends were clear √Yes □No
Whether relevant procedures and mechanisms for decision-making were complete √Yes □No
Whether independent directors performed their duties and responsibilities √Yes □No
Whether minority shareholders were given the opportunity to fully express their √Yes □No
views and demands, and whether their legitimate interests were adequately
protected
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Haier Smart Home Co., Ltd. 2021 Annual Report
(III) The Company made profits and the profits for distribution to the owners’ Parent
Company was positive during the reporting period, but no cash profit distribution plan
was proposed; the Company should disclose the reasons in detail and the purpose of
undistributed profits
□Applicable √Not Applicable
XI. THE COMPANY’S SHARE OPTION INCENTIVE SCHEME, EMPLOYEE
SHAREHOLDING PLAN OR OTHER EMPLOYEE INCENTIVE MEASURES AND ITS
INFLUENCE
(I) Matters disclosed in temporary announcements and without any subsequent progress or
change
√Applicable □Not Applicable
Summary of matters Query index
Partial Vesting of Employee Stock Ownership Plan For details, please refer to the Announcement of
and Termination of the First Phase of Employee Stock Haier Smart Home Co., Ltd. on Vesting of Interests
Ownership Plan During the Reporting period, pursuant
： under the Core Employee Stock Ownership Plan
to the "Core Employee Stock Ownership Plan of Qingdao and the Termination of the First Core Employee
Haier Co., Ltd (Draft)" (the "First phase ESOP"), the Stock Ownership Plan (L2021-001) disclosed by
"Second Phase Stock Ownership Plan of Core Employee the Company on 29 January 2021.
Stock Ownership Plan of Qingdao Haier Co., Ltd (Draft)"
(the "Second Phase ESOP"), the "Third Phase Stock
Ownership Plan of Core Employee Stock Ownership Plan
of Qingdao Haier Co., Ltd (Draft)" (the "Third Phase of
ESOP"), on 15 January 2021, the Management
Committee resolved that: (1) the First phase ESOP to be
vested, 33 persons who pass the appraisal vest 1,783,038
shares; (2) Second Phase ESOP to be vested, 116 persons
who pass the appraisal vest 1,132,832 shares; (3) Third
Phase ESOP to be vested, 32 persons who pass the
appraisal vest 179,351 shares. Directors, supervisors and
senior management of the Company are entitled to vest a
total of 1,339,483 shares. Any change in their stock
ownership is subject to the relevant provisions of the
Rules Governing the Shares of the Company Held by
Directors, Supervisors and Senior Management of Listed
Companies and Changes Thereof. The Company has, in
accordance with the aforesaid resolutions, completed the
transfer of the relevant shares on 27 January 2021 at the
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Shanghai Branch of the China Securities Depository and
Clearing Corporation, with an aggregate number of
3,095,221 shares. During the reporting period, vesting of
shares of the First Phase ESOP were completed and all
assets of the stock ownership plan are in the form of
monetary funds. In accordance with the relevant
provisions of the First Phase ESOP, the First Phase ESOP
has been implemented and terminated. Upon completion
of the liquidation and allocation of assets, the remaining
capital was remitted to the Company.
Introduction of First Phase A Share Employee Stock For details, please refer to the Core Employee A
Ownership Plan and H Share Restricted Share Unit Share Ownership Plan of Haier Smart Home Co.,
Scheme ： In order to improve the corporate governance Ltd (for Years 2021–2025) (Draft), the Core
mechanism, create value for shareholders and promote the Employees H Share Ownership Plan of Haier Smart
full implementation of the Company's IoT smart home Home Co., Ltd (for Years 2021– 2025) (Draft), H
brand strategy, the Company introduced the Core Share Restricted Share Unit Scheme of Haier Smart
Employees A Share Ownership Plan of Haier Smart Home Co., Ltd and relevant contents disclosed by
Home Co., Ltd (for Years 2021–2025) (Draft) and its the Company on 26 May 2021.
Summary , the Core Employees H Share Ownership Plan
of Haier Smart Home Co., Ltd (for Years 2021– 2025)
(Draft) and its Summary and H Share Restricted Share
Unit Scheme of Haier Smart Home Co., Ltd upon the
approval at the 2020 Annual General Meeting convened
on 25 June 2021. During the reporting period, the shares
for the A-share and H-share ESOPs and the H Share
Restricted Share Unit Scheme for 2021 were purchased.
Termination of the Second Phase and Third Phase For details, please refer to the Announcement of
Employee Stock Ownership Plan During the Reporting
： Haier Smart Home Co., Ltd on the Termination of
period, all 721,736 and 5,374,465 shares held under the the Second Phase and Third Phase Employee Stock
Second Phase ESOP and the Third Phase ESOP, Ownership Plan under the Core Employee Stock
respectively, have been sold, and all assets of the stock Ownership Plan (L2021-037) disclosed by the
ownership plan are monetary funds. In accordance with Company on 15 May 2021
the relevant provisions of the Second Phase ESOP and the
Third Phase ESOP, the aforementioned plans have been
implemented and terminated. Upon completion of the
liquidation and allocation of assets, the remaining capital
was remitted to the Company.
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Vesting of the fourth Phase Employee Stock For details, please refer to the Announcement of
Ownership Plan ： During the reporting period, Haier Smart Home Co., Ltd on Vesting of the fourth
according to the Phase IV ESOPs under Core Employee Phase Employee Stock Ownership Plan (L 2021-
Stock Ownership Plan of Qingdao Haier Co., Ltd. (Draft) 059) disclosed by the Company on 30 July 2021.
and Summary (hereinafter referred to as “Phase IV
ESOPs”), after being resolved by the management
committee, a total of 575 employees were entitled to
receive 8,719,368 shares in July 2021, The directors,
supervisors and senior management of the Company were
entitled to receive 1,401,617 shares, any change in the
shares must comply with the relevant provisions of the
Rules on the Management of Shares Held by the
Directors, Supervisors and Senior Management of Listed
Companies and the Changes Thereof (
、事董司公市上《
理管動變其及份股司公本持所員人理管級高和事監
). According to the aforesaid resolution, the
》則規
Company completed the transfer of relevant shares at the
Shanghai branch of the China Securities Depository and
Clearing Corporation Limited on 28 July 2021 with the
aggregated amount of 8,719,368 shares. The directors,
supervisors and senior management of the Company were
entitled to receive 1,401,617 shares.
Introduction of A Share Stock Option Incentive Plan ： For details, please refer to the A Share Stock Option
As the Company's high-end brands continue to expand Incentive Plan of Haier Smart Home Co., Ltd (draft)
and its IoT scenario strategy continues to evolve, the and relevant contents disclosed by the Company on
Company needs more focused strategic more committed 30 July 2021.
management, as well as a matching long-term incentive
plan to supplement. Therefore, approved at the
Extraordinary General Meeting and Class Meeting
convened on 15 September 2021, the Company
introduced the 2021 A share Stock Option Incentive Plan.
The proposed stock options granted to the incentive
recipients were 51 million shares, among which were 46
million granted and 5 million.
(II) Incentive events not disclosed in provisional announcements or with subsequent
development
Equity incentive
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□Applicable √Not Applicable
Other explanations
□Applicable √Not Applicable
Employee stock ownership plan
□Applicable √Not Applicable
Other Incentives
□Applicable √Not Applicable
(III) Share option granted to directors and senior management during the reporting period
√Applicable □Not Applicable
Unit: 10,000 shares
Shares Number of
Number of Market
Number of subject to stock
new stock Exercisable Stock value at
stock stock options
options shares options the end of
options option held at the
Name Position granted during the exercise the
held at the exercised ending of
during the reporting price reporting
beginning during the the
reporting period (RMB) period
of the year reporting reporting
period (RMB)
period period
Chairman
Liang
of the 0 91.39 0 0 25.63 91.39 29.89
Haishan
Board
Director,
Li
0 91.39 0 0 25.63 91.39 29.89
Huagang
President
Vice
Chairman
XieJuzhi 0 91.39 0 0 25.63 91.39 29.89
of the
Board
Vice
Li Pan 0 45.70 0 0 25.63 45.70 29.89
President
Chief
financial
Gong Wei officer, 0 45.70 0 0 25.63 45.70 29.89
Vice
President
Vice
Huang
0 45.70 0 0 25.63 45.70 29.89
Xiaowu
President
Vice
Wu Yong 0 22.85 0 0 25.63 22.85 29.89
President
Vice
Li Yang 0 45.70 0 0 25.63 45.70 29.89
President
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Vice
Guan
0 22.85 0 0 25.63 22.85 29.89
Jiangyong
President
Vice
Wang Li 0 45.70 0 0 25.63 45.70 29.89
President
Total / 0 548.37 0 0 / 548.37 /
(IV) Establishment and implementation of appraisal and incentive mechanism for senior
management during the reporting period
√ Applicable □ Not Applicable
The 2021 remuneration system of the management personnel of the Company reflects the ecosystem
micro-community contract, high value-adding and high sharing, which is linked with win-win value adding
table and Rendanheyi scorecard, etc.. Vertically, the Rendanheyi scorecard represents strategic undertaking
and ecosystem micro-community contract, which is linked with the ecosystem micro-community upgrade
initiation and platform leading, and horizontally, it embodies the global leadership and ecosystem
achievements of the market competitiveness, which leads to the upgrading from “high-end brand” to “scenario
brand” and “ecosystem brand”. The remuneration competitiveness is determined based on such elements as
“strategic undertaking”, “market-leading target competitiveness”, “micro-community initiation, platform
leading” and “ecosystem achievements”. The senior management personnel receive an annual assessment of
performance for the year, which is a key factor in determining performance bonuses and development. On one
hand, the overall customer- paid, and Rendanheyi remuneration system forms a diversified combination of the
management’s remuneration incentives, which is oriented towards creating customer value and ecosystem
value. On the other hand, it also makes the remuneration mechanism of the management more flexible, which
provides impetus for the innovation of the management and embodies the maximization of people value.
At the same time, the Company implements measures such as the core employee stock-holding plan and share
option incentive plan to further improve the remuneration incentive system, enhances the incentive and
restraint mechanisms, and establishes a benefits and risk sharing mechanism between the Company and the
operational and managerial personnel based on the principle of the customer-paid compensation.
XII. CONSTRUCTION AND IMPLEMENTATION OF INTERNAL CONTROL SYSTEM
DURING THE REPORTING PERIOD
√ Applicable □ Not Applicable
For details, please refer to the 2021 Internal Control Assessment Report of Haier Smart Home Co.,
Ltd. disclosed on the same day of this report.
Explanations on material defects found in internal control during the reporting period
□ Applicable √ Not Applicable
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XIII. CONTROL OVER MANAGEMENT OF SUBSIDIARIES DURING THE REPORTING
PERIOD
√ Applicable □ Not Applicable
The listed company established an internal control and management system covering all
subsidiaries within the scope of consolidated statement, which included four major areas of strategy,
finance, operation and compliance with a total of 22 primary business processes and control metrics. In
particular,
1.Unified control environment, such as strategy and culture, risk management system, internal
control manual, Rendanheyi remuneration system, unified accounting and information system in the
financial sharing center, etc.
2. The company has clear selection methods and terms of reference in respect of appointment of
directors, supervisors and important senior management to their controlling subsidiaries. Meanwhile,
relevant departments of the parent company stipulate the criteria and scope of authorization for major
decision and important events, formulate the approval procedure for major decision and important events
beyond the scope of authorization. The management of subsidiaries at different levels shall exercise their
authority and take responsibility within the scope of authorization.
Important personnel appointments and removals are generally conducted by selecting candidates
proposed by human resource department while re-designation of directors, supervisors, and senior
management need to be determined by the relevant authority of the parent company. Other important
personnel appointments and removals are conducted through the open competition process on
"Chuangba" system.
At the same time, the appointment of directors, supervisors and senior management is considered
as a change of company information, which is required to be reviewed in the Company’s legal cloud
supermarket system. The reviewer is the legal representative of the Company, and the review is based
on the request report signed by the platform owner or the minutes of the president’s office of Haier Smart
Home.
3. Management of major events of subsidiaries: The relevant authority of the parent company of
the listed company stipulates the criteria and scope of authorization for major decision and important
events, formulate the approval procedure for major decision and important events beyond the scope of
authorization. If the Company and its subsidiaries provide external guarantees, the total amount of which
shall propose for consideration at the general meetings after approval by the Board. Subject to the
authorization by the general meetings, the Board decides the Company’s external investment, acquisition
and disposal of assets, external guarantees, entrusted wealth management, related-party transactions and
other events.
4.Management of budget: The finance and budget center formulates the budget preparation policy
and guidance for the following year at the end of each year, and distributes them to each corporation
together with the budget template, requiring the preparation of a comprehensive budget in accordance
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with the unified budget preparation policy and guidance, which contains details of the preparation
principles, explanation of filling the template, submission process and examination. Each corporation
has prepared a comprehensive budget in accordance with the unified budget preparation policy and
guidance. Annual budgeting for the market of the following year is commenced in the third quarter every
year by making profit and loss budgets for each industry and subsidiaries based on market forecasts to
ensure accurate estimation in advance. The execution and adjustment of budgets are regularly monitored
and evaluated.
For non-fixed assets investment projects, the person in charge of fund of each corporation will
summarize the actual investment situation and report it to the manager of the investment, financing and
fund management department of Haier Smart Home. The manager of the investment, financing and fund
management department will monitor the execution of the budget of investment and financing by
comparing the report with the corresponding budget of the investment plan.
5. Operation analysis and performance evaluation: The Company regularly convenes global and
industry-specific performance and operations meetings to discuss the operations and performance
and carries out performance evaluation based on the principles of the Rendanheyi 2D Dot Matrix .
6. Information transmission: The Company widely collects macroeconomic and industry development
information, market information, regulatory compliance and other external information through various
channels, and analyzes and organizes the collected information into research reports every month, which
are submitted to different levels of management after review. The management of the parent company
holds regular meetings with industries and segments to convey the management requirements of the
parent company and to be aware of the operation status in a timely manner. At the same time, the
Company has formulated the information security and internal report confidentiality system, which
specifies the confidentiality content, confidentiality measures, confidentiality level and transmission
scope to prevent the disclosure of commercial secrets.
7. Test and audit of internal control: The parent company conducts internal test and audit of
subsidiaries, more than 85% of revenue and assets of which belong to the parent Company, every year
to identify problems in a timely manner and facilitate the closed-loop rectification of problems. During
the reporting period, there were no new major subsidiaries.
XIV. RELEVANT EXPLANATIONS ON THE AUDIT REPORT OF INTERNAL CONTROL
√ Applicable □ Not Applicable
The Company’s auditor Hexin Certified Public Accountants LLP has audited the efficiency of
internal control relating to the financial report of the Company, and has issued its standard unqualified
audit report for the Company’s internal control (He Xin Shen Zi (2022) No. 000359).
For the details of Audit Report of Internal Control of Haier Smart Home Co., Ltd., please refer to relevant
announcements published on the website of Shanghai Stock Exchange (www.sse.com.cn) on the same
day of this report.
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Whether to disclose the audit report on internal control: Yes
Type of opinion on the audit report on internal control: Standard unqualified opinion
XV. RECTIFICATION OF THE SELF-ASSESSMENT PROBLEMS UNDER THE
GOVERNANCE SPECIAL ACTION OF THE LISTED COMPANY
Not Applicable
XVI. OTHERS
□ Applicable √Not Applicable
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Section V Environmental and Social Responsibilities
I. ENVIRONMENTAL INFORMATION
(I) Explanation of the environmental protection status of companies and their important
subsidiaries that are key emission units announced by the environmental protection
department
√Applicable □Not Applicable
1. Information on pollutant discharge
√ Applicable □ Not Applicable
The Company’s indirect non-wholly owned subsidiaries Zhengzhou Haier Airconditioning Co., Ltd.
(“Zhengzhou Air-conditioning”), Foshan Haier Freezer Co., Ltd. (“Foshan Freezer”), Hefei Haier
Refrigerator Co., Ltd. (“Hefei Refrigerator”), Wuhan Haier Water Heater Co., Ltd. (“Wuhan Water
Heater”), Wuhan Haier Freezer Co., Ltd. (“Wuhan Freezer”), Dalian Haier Refrigerator Co., Ltd.
(“Dalian Refrigerator”) and Chongqing Haier Airconditioning Co., Ltd., Chongqing Haier Water Heater
Co., Ltd. (the aforementioned 2 companies located in Chongqing are collectively referred to as the
"Chongqing Park Companies") are among the key emission units announced by the local environmental
protection department. The main information on pollutant discharge is as follows:
）（ 1 Zhengzhou Air-conditioning
① Main pollutants ：
Wastewater. According to the Technical Specification for Application and Issuance of Pollutant
Permit - Wastewater Treatment (for Trial) (HJ 978-2018), Development Zone Energy should apply for
a pollutant discharge permit and detect 17 types of pollutants (including specific pollutants) , namely,
total cadmium, total chromium, total mercury, total lead, total arsenic, hexavalent chromium, COD,
ammonia nitrogen, total phosphorus, total nitrogen, PH, suspended solids, chroma, petroleum, BOD, rate
of flow and temperature.
② Way of discharge: indirect discharge
③ Number and distribution of discharge outlets: one, north of the wastewater treatment plant,
pipeline discharge
④ Concentration and total amount of discharge and approved total amount of discharge: ：
According to the discharge permit, the concentration and total amount of pollutant discharge subject
to approval for the total amount are as follows:
Approved Whether it is
Concentration Total amount
No. Name of pollutant total amount excessive
of discharge of discharge
of discharge discharge
1 COD 27.02mg/L 1.02 tons 6.25 tons No
2 Ammonia nitrogen 6.9mg/L 0.08 tons 0.63 tons No
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⑤ Pollutant discharge standards implemented: Wastewater Quality Standards for Discharge to
Municipal Sewers (GBT 31962-2015)
）（ 2 Foshan Freezer
① Main Pollutants:
Wastewater. According to the Technical Specification for Application and Issuance of Pollutant
Permit - Wastewater Treatment (for Trial) (HJ 978-2018), Development Zone Energy should apply for
a pollutant discharge permit and detect 6 types of pollutants (including specific pollutants), namely, COD,
ammonia nitrogen, zinc, PH, SS, suspended solids, petroleum
② Way of discharge: indirect discharge
③ Number and distribution of discharge outlets: one, south of the wastewater treatment plant to
the southeast of Fushan Sanshui District Haier Park, pipeline discharge; exhaust emission,
one dust emitting processes, four foam generating processes, three welding processes, one
plastic injection and breaking process, two kitchens, for a total of 11
④ Concentration and total amount of discharge and approved total amount of discharge:
According to the discharge permit, the concentration and total amount of pollutant discharge subject
to approval for the total amount are as follows:
Total Approved total Whether it is
Concentration
No. Name of pollutant amount of amount of excessive
of discharge
discharge discharge discharge
1 COD 20 mg/L 4.17 tons 25.92 tons No
2 Ammonia nitrogen 1.46mg/L 0.304 tons 2.88 tons No
⑤ Pollutant discharge standards implemented: first standard of the second period set forth in the
“Discharge Limits of Water Pollutants” (DB44/26-2001) of local standard in Guangdong
Province
）（ 3 Hefei Refrigerator
① Main Pollutants ：
Wastewater. According to the Technical Specification for Application and Issuance of Pollutant
Permit - Wastewater Treatment (for Trial) (HJ 978-2018), Development Zone Energy should apply for
a pollutant discharge permit and detect 8 types of pollutants (including specific pollutants) , namely, total
nitrogen (as N), total phosphorus (as P), rate of flow, suspended solids, value of PH, Chemical oxygen
demand (COD), ammonia nitrogen (NH3-N) and five-day biochemical oxygen demand (BOD5).
Exhaust gas. According to the Volatile Organic Unorganized Emission Control Standard (GB
37822-1-2019), Development Zone Energy should apply for a pollutant discharge permit and detect
pollutants. Main types of atmospheric pollutants: particle matter, non-methane total hydrocarbons
② Way of discharge: continuous discharge
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③ Number and distribution of discharge outlets: 1 sewage, at the north entrance of the refrigerator
Park; 25 exhaust gas, at the refrigerator block A(11), B factories(11) and Phase III Factory(3).
④ Concentration of discharge and discharge standard:
According to the discharge permit, the concentration and total amount of pollutant discharge subject
to approval for the total amount are as follows:
Approved Whether it is
Concentration Total amount
No. Name of Pollutant total amount excessive
of discharge of discharge
of discharge discharge
1 COD 104.114 mg/L 56.2 tons 165 tons No
2 ammonia nitrogen 11.432 mg/L 5.373 tons 10 tons No
3 total nitrogen 22.45 mg/L 11.76 tons 25 tons No
4 total phosphorus 2.065 mg/L 1.082 tons 3 tons No
Pollutant discharge standards implemented: Wastewater Quality Standards for Discharge to
Municipal Sewers (GBT 31962-2015)
）（ 4 Wuhan Water Heater
① Main Pollutant ：
Wastewater. According to the Technical Specification for Application and Issuance of Pollutant
Permit - Wastewater Treatment (for Trial) (HJ 978-2018), Wuhan water heater should apply for a
pollutant discharge permit and detect 9 types of pollutants (including specific pollutants), namely, COD,
total zinc, suspended solids, ammonia nitrogen (NH3-N), five-day biochemical oxygen demand (BOD5),
PH, anionic surface active agent, total phosphorus, and animal and vegetable oils.
② Way of discharge: indirect discharge
③ Number and distribution of discharge outlets: one, on the southwest of the wastewater treatment
plant, pipeline discharge
④ Concentration and total amount of discharge and approved total amount of discharge:
According to the discharge permit, the concentration and total amount of pollutant discharge subject
to approval for the total amount are as follows:
Approved
Concentration Total amount Whether it is
No. Name of Pollutant total amount
of discharge of discharge excessive discharge
of discharge
1 COD 40 mg/L 8.92 tons 9.075 tons No
Ammonia
2 0.336 mg/L 0.0749 tons 0.9075 tons No
nitrogen
⑤ Pollutant discharge standards implemented: Wastewater Quality Standards for Discharge to
Municipal Sewers (GBT 31962-2015)
）（ 5 Wuhan freezer
① Main pollutants ：
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Wastewater. According to the Technical Specification for Application and Issuance of Pollutant
Permit - Wastewater Treatment (for Trial) (HJ 978-2018), Wuhan freezer should apply for a pollutant
discharge permit and detect 9 types of pollutants (including specific pollutants), namely, COD, total zinc,
suspended solids, ammonia nitrogen (NH3-N), five-day biochemical oxygen demand (BOD5), PH,
anionic surface active agent, total phosphorus, and animal and vegetable oils.
② Way of discharge: indirect discharge
③ Number and distribution of discharge outlets: one, on the south of the wastewater treatment plant,
pipeline discharge
④ Concentration and total amount of discharge and approved total amount of discharge: According
to the discharge permit, the concentration and total amount of pollutant discharge subject to approval for
the total amount are as follows:
Approved Whether it is
Concentration Total amount
No. Name of Pollutant total amount excessive
of Discharge of discharge
of discharge discharge
1 COD 46 mg/L 3.88 tons 4.3628 tons No
2 Ammonia nitrogen 0.497 mg/L 0.042 tons 0.4365 tons No
⑤ Pollutant discharge standards implemented: Wastewater Quality Standards for Discharge to
Municipal Sewers (GBT 31962-2015)
）（ 6 Dalian Refrigerator
Main Pollutants
① ：
Wastewater. According to Measures for Pollutant Discharge Permitting Administration, 5 types of
pollutants should be tested, namely, COD, total phosphorus, PH, suspended solids, zinc.
②Way of discharge: indirect discharge
③ Number and distribution of discharge outlets: one, on the wastewater treatment plant, pipeline
discharge
④ Concentration and total amount of discharge and approved total amount of discharge:
the concentration and total amount of pollutant discharge subject to approval for the total amount
are as follows:
Approved total Whether it is
Concentration Total amount
No. Name of Pollutant amount of excessive
of discharge of discharge
discharge discharge
1 COD 244 mg/L 2.66 tons 2.66 tons No
2 Ammonia nitrogen 5.4 mg/L 0.059 tons 0.059 tons No
Pollutant discharge standards implemented: Wastewater Discharge Standard for Liaoning Province (DB
21/ 1627-2008)
）（ 7 Chongqing Park Company
① Main pollutants:
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Wastewater. According to the registration and declaration of Pollutant Permit of the PRC, 7 types
of pollutants (including specific pollutants) should be tested, namely, COD 、 ammonia nitrogen (NH3-
N), five-day biochemical oxygen demand (BOD5), PH, suspended solids, petroleum, animal and
vegetable oil, rate of flow.
② Way of discharge: indirect discharge
③ Number and distribution of discharge outlets: three, first wastewater treatment plant, second
integrated wastewater treatment plant, the apartment wastewater treatment station, pipeline
discharge
④ Concentration and total amount of discharge and approved total amount of discharge:
According to the discharge permit, the concentration and total amount of pollutant discharge subject
to approval for the total amount are as follows:
Approved Whether it is
Concentration Total amount
No. Name of Pollutant Total amount excessive
of discharge of discharge
of discharge discharge
1 COD 59 mg/L 33.93tons 228.1tons No
2 Suspended solids 21 mg/L 12.08tons 177.2tons No
Animal and vegetable
3 1.24mg/L 0.71tons 34tons No
oil
4 Petroleum 0.14 mg/L 0.08tons 1.32tons No
Integrated wastewater discharge standard (GB 8978-1996) – grade 3
2. Construction and operation of pollution prevention and treatment facilities:
√Applicable □Not Applicable
Zhengzhou Air-conditioning, Foshan Freezer, Wuhan Freezer, Wuhan Water Heater have one, one,
one and two wastewater treatment plants with a designed treatment capacity of 550 tonnes/day, 1,800
tonnes/day, 550 tonnes/day, 300 tonnes/day and 260 tonnes/day, respectively. There are three wastewater
treatment plants in Chongqing Haier Park responsible for collecting and treating the wastewater produced
by the Chongqing Park Companies with a wastewater treatment capacity of 3,600 tonnes/day, and one
wastewater treatment plant in Dalian Haier Park responsible for collecting and treating the wastewater
produced by the Dalian Park Companies with a wastewater treatment capacity of 300 tonnes/day. The
construction, maintenance and daily operation of all wastewater treatment facilities are conducted in
accordance with the requirements of national and local environmental laws and regulations. Information
on all wastewater discharge is subject to 24-hour online monitoring and such monitored information is
transmitted to environmental authorities in a real-time manner. All equipment is operating normally. In
addition, the Company fully promotes all plants to install exhaust treatment facilities and VOCs online
monitoring facilities. All equipment is operating normally and exhaust produced is treated by the
prevention and treatment facilities before compliant release and is monitored.
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3. Environmental impact assessment of construction projects and other environmental
protection administrative permits
√Applicable □Not Applicable
The Company and its subsidiaries execute construction project implementation and production in
accordance with the requirements of laws and regulations and strictly comply with the three simultaneous
requirements of environmental protection for construction projects in the process of environmental
impact assessment, and have passed environmental assessment acceptance and are not involved in any
environmental illegal conducts such as construction before approval.
4. Emergency plans for environmental incidents
√Applicable □Not Applicable
The Company and its subsidiaries have formulated Emergency Plans for Environmental Incidents
in accordance with the requirements of laws and regulations and organized drills, and continue to
improve and upgrade the plans based on drill results.
5. Self-monitoring environmental programs
√Applicable □Not Applicable
The Company complies with national and local environmental standard requirements in respect of
all pollutant discharge. Wastewater collected is subject to standard treatment and is released in a
compliant manner. It is under real-time monitoring through the automatic online wastewater monitoring
system, which shares its information with Haier Smart Energy System. In March 2017, the Company
passed the upgraded certification in relation to ISO14001 environment management system. In May 2021,
a professional certification firm was appointed to conduct a review and audit on the operation of
ISO14001 system in 2020, where satisfactory results were obtained to demonstrate its good operating
condition. In May 2022, a second review and audit will be conducted on the operation of ISO14001
system in 2021.
6. Administrative penalty due to environmental issues during the Reporting Period
□Applicable √Not Applicable
7. Other environmental information that should be disclosed
□Applicable √Not Applicable
(II) Explanation on environmental protection of companies other than major pollutant
emission units
√Applicable □Not Applicable
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1. Administrative penalty due to environmental issues
□Applicable √Not Applicable
2. Other environmental information disclosure with reference to major pollutant emission units
√Applicable □Not Applicable
All divisions of the Company execute construction project implementation and production in
accordance with the requirements of laws and regulations and strictly comply with the three simultaneous
requirements of environmental protection for construction projects in the process of environmental
impact assessment, and have passed environmental assessment acceptance and are not involved in any
environmental illegal conducts such as construction before approval.
Through Haier Smart Energy Center, an industry leading energy big data analysis system, the
Company implements centralized dynamic monitoring and digitalized management in respect of major
energy consumption, such as water, electricity and gas, of all plants across the country by utilizing
automatized and informationalized technology and an integrated management model. It automatically
collects precise information on energy resources and completes prediction and analysis of energy
consumption information to optimize energy adjustment, reduce energy consumption per unit production
to achieve low-carbon production.
3. Reasons for failure to disclose other environmental information
□Applicable √Not Applicable
(III) Relevant information favorable to ecological protection, pollution prevention and control
and environmental responsibility fulfillment
√Applicable □Not Applicable
The Company proactively advances product iteration and upgrade and participates in the
development of ecological environment. The Company took part in the formulation of energy
consumption standard of household appliances organized by Beijing Institute of Standardization to
promote the shift to energy-saving models in the household appliance field. We cooperated with relevant
organizations in relevant refrigerant research and development projects to strive for the application of
refrigerants with lower greenhouse gas emission. Meanwhile, the Company and Haier’s suppliers, among
others, cooperated in the research and development of low-carbon related technology, such as recyclable
packaging materials, to facilitate environmental protection.
The Company proactively responds to the household appliance recycling policies of the NDRC by
launching a household appliance recycling project and investing in the construction of Haier’s household
appliance recycling plant. With the recycling business as the starting point, we tapped into the
disintegration process and implemented extended accountability for household appliance manufacturer
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to initiate the development of household appliance recycling plants. The measure will significantly boost
the efficiency of resource utilization to achieve sustainable development.
(IV) Measures taken during the Reporting Period to reduce its carbon emission and their
effectiveness
√Applicable □Not Applicable
As the leading enterprise in the industry, the Company proactively seeks ways to achieve carbon
neutrality and carbon peak and optimize industrial structure and energy structure. Currently, the
Company has designed and established Haier Zhong De Smart Park, Haier’s first “beacon base” in the
world to achieve carbon neutrality, and intends to expand its coverage within the Company in the future,
with a view to reaching carbon neutrality for Haier Smart Home’s industrial parks in the PRC within a
reasonable time, while giving due regards to comprehensive elements, such as costs. Haier Zhong De
Industrial Park uses a smart general energy control platform to implement centralized dynamic
monitoring and digitalized management in respect of the production, transmission, distribution and
utilization of energy and power in the park, such as electricity, water, gas, heat, compressed air,
photovoltaic, thereby improving and optimizing energy balance, controlling and adjusting the energy
system in the park and enhancing overall efficiency.
II. PERFORMANCE OF SOCIAL RESPONSIBILITIES
√ Applicable □ Not Applicable
For details, please refer to the 2021 Environment, Social and Governance Report of Haier Smart
Home Co., Ltd. disclosed on the date of this periodic report.
III. PARTICULARS ON THE EFFORTS TO CONSOLIDATE AND EXPAND ITS
ACHIEVEMENTS IN POVERTY ALLEVIATION AND RURAL AREA
INVIGORATION
√Applicable □Not Applicable
In accordance with the national targeted poverty alleviation plan and documents requirements, the
Company emphasizes poverty alleviation and conducts targeted poverty alleviation within the authority
granted on the general meeting in respect of, among others, donations.
For years, the Company has made genuine contributions to education to improve the basic cultural
quality of people in poverty and skills of families in poverty, with an emphasis on shoring up the weak
link of the education sector and stopping inter-generational poverty. As of now, the Company, Haier
Group Companies (the effective controller of the Company) and its subordinate enterprises (hereafter,
the “Haier Group”) have constructed over 300 hope primary schools and hope secondary schools,
covering 26 provinces, municipalities and autonomous regions in the PRC. It also offers continuous
resource assistance to such schools every year to effectively boost the base education capacity in poverty
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regions and improve education quality. At the same time, during the major flooding of Zhengzhou, on
the one hand, local industry parks of the Company conducted self-rescue proactively and ensured the
normal resumption of work and production; on the other hand, the Company donated RMB20 million,
taking up social responsibilities voluntarily and supporting the reconstruction of disaster areas. The
Company maintains its support to rural development in respect of poverty alleviation in agricultural
development and poverty alleviation in farmers’ health to promote beautiful rural development. During
the Reporting Period, it offered, among other assistance, funds to Xian Feng Village, Tao Lin Town, Xi
Shui County, Gui Zhou.
In 2021, the Company’s capital expenditure in targeted poverty alleviation amounted to
approximately RMB37.79 million, primarily attributable to education poverty alleviation, poverty
alleviation in agricultural development, poverty alleviation in farmers’ health and construction of disaster
areas, etc., to proactively respond to the government’s call for social responsibility fulfillment.
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Section VI Significant Events
I. FULFILLMENT STATUS OF UNDERTAKINGS
(I) The undertakings made by the ultimate controller, shareholders, related parties, acquirer as well as the Company and other relevant parties during or up
to the reporting period
√Applicable □Not Applicable
Any Whether
Background deadline performed
Type of Date and term of
of Covenanter Contents of undertakings for in a timely
undertaking s undertakings
undertakings performanc and strict
e way
During the period from September 2006 to May 2007, the Company issued shares to Haier
Group Corporation (“Haier Group”) to purchase the controlling equity in its four subsidiaries,
namely Qingdao Haier Air-Conditioner Electronics Co., Ltd. (
公限有子电调空尔海岛青
司 ), Hefei Haier Air-conditioning Co., Limited (
司公限有器调空尔海肥合 ), Wuhan Haier
Undertaking
Eliminate the Electronics Holding Co., Ltd. ( 司公限有份股器电尔海汉武 ), Guizhou Haier Electronics
related to
right defects Haier Group Co., Ltd. ( ). With regard to the land and property required in the
司公限有器电尔海州贵 27 September
significant Yes Yes
in land Corporation operation of three companies, namely Qingdao Haier Air-Conditioner Electronics Co., Ltd. 2006, long-term
reorganizatio
property etc. (
司公限有子电调空尔海岛青 ), Hefei Haier Air-conditioning Co., Limited (
调空尔海肥合
n
), Wuhan Haier Electronics Holding Co., Ltd. (
司公限有器 司公限有份股器电尔海汉武 )
(the “Covenantees”), Haier Group made an undertaking (the “2006 Undertaking”). 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
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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.
Prior to the Transaction (hereinafter “the Transaction” refers to the transaction in relation to
the privatization of Haier Electronics by Haier Smart Home), Haier Electric was a controlling
subsidiary of the Company and did not have peer competition with the Company; after the
Haier Smart
Address peer completion of the Transaction, Haier Electric became a wholly-owned or controlling 31 July 2020,
Home Co., Yes Yes
competition subsidiary of the Company and no new peer competition with the Company existed or will long-term
Ltd.
arise. There is no new peer competition or potential competition between the Company and
other related parties controlled by the controlling shareholders or the de facto controller of
the Company.
1. The Transaction constitutes a connected transaction and the connected transaction
procedures performed under the Transaction are in compliance with the relevant regulations.
The pricing of the connected transaction is fair and there are no circumstances under which
the interests of the listed company and the non-connected shareholders are prejudiced. 2.
Upon completion of the Transaction, the Company and its affiliates will take lawful and
Address
Haier Group effective measures to minimize and regulate the connected transactions with the listed 29 July 2020,
connected Yes Yes
Corporation company, take the initiative to safeguard the interests of the listed company and all long-term
transactions
shareholders, and refrain from taking advantages of connected transactions for improper
benefits. 3. Provided that there is no conflict with laws and regulations, if connected
transactions between the Company and its affiliates and the listed company occur or exist
which cannot be avoided or for which there are reasonable reasons, the Company and its
affiliates will legally enter into a transaction agreement with the listed company to ensure
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strict compliance with the procedures of connected transactions required by the laws,
regulations, regulatory documents and the articles of association of the Company, conduct
transactions in accordance with the principles of marketability and fair prices to ensure the
fairness and compliance of connected transactions, and refrain from taking advantages of
such connected transactions to engage in any acts that are detrimental to the interests of the
listed company or its minority shareholders, and at the same time, comply with the
information disclosure obligations in accordance with relevant regulations.
1. The Company and its controlling subsidiary, Haier COSMO Co., Ltd., were principally
engaged in investment business during the reporting period, and the Company and its
controlling subsidiary, Haier COSMO Co., Ltd. (including its subsidiaries and entities with
more than 30% shareholding), have no real or potential per competition with Haier Smart
Home; 2. the domestic and overseas white goods businesses and assets held by the Company
(including the Company's subsidiaries and entities with more than 30% shareholding) have
been injected into Haier Smart Home through asset consolidation and equity transfer in
Address peer Haier Group 29 July 2020,
accordance with the commitments made by the Company in January 2011 and the Yes Yes
competition Corporation long-term
requirements for adjusting such commitments as considered and approved by Haier Smart
Home at its 2014 annual general meeting; 3. Since the acquisition of 100% of Haier New
Zealand Investment Holding Company Limited (which holds 100% of the shares in Fisher &
Paykel Appliances Holdings Limited) by Haier Smart Home's offshore subsidiary, Haier
Singapore Investment Holding Co., Ltd., following the completion in July 2018, the
Company (including the Company's subsidiaries and entities with more than 30%
shareholding) and Haier Smart Home do not have any peer competing relationship in any
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business areas both within and outside the PRC. During the reporting period, the Company
(including the Company's subsidiaries and entities with more than 30% shareholding) did not
have any new peer competition with Haier Smart Home; 4. Upon completion of the
Transaction, the Company (including the Company's subsidiaries and entities with more than
30% shareholding) and its affiliates do not have any new or potential peer competition with
Haier Smart Home; 5. During the period when the company is the controlling shareholder of
Haier Smart Home and the shares of Haier Smart Home are listed on the Hong Kong Stock
Exchange, the company and its other subsidiaries and entities with more than 30%
shareholding will not operate any business that competes with the business engaged by Haier
Smart Home and will not engage in real or potential peer competition with Haier Smart Home.
Upon completion of the Transaction, the company will strictly comply with the Company
Law, the Securities Law, the relevant regulations of the China Securities Regulatory
Commission, the Shanghai Stock Exchange and the articles of association of Haier Smart
Home, etc., fairly exercise shareholders' rights and fulfill shareholders' obligations, refrain
from taking advantage of its shareholding position for improper benefits, ensure the listed
Haier Group company will continue to be completely separate from the company and other enterprises on 29 July 2020,
Others Yes Yes
Corporation which the company exercises control and exerts significant influence in terms of long-term
management, personnel, assets, finance, organization and business operations, and maintain
the continued independence of the listed company in terms of management, personnel, assets,
finance, organization and business operations. Upon completion of the Transaction, the
company will comply with the provisions of the Notice on Several Issues concerning
Regulating Fund Transactions between Listed Companies and Their Affiliates and the
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External Guarantee of Listed Companies and the Circular of China Securities Regulatory
Commission and China Banking Regulatory Commission on Regulating the External
Guaranties Provided by Listed Companies to regulate the external guarantees by listed
companies and their subsidiaries, and will not misappropriate the funds of the listed company
and their subsidiaries. The company undertakes to strictly fulfill the above commitments. In
the event that the interests of the listed company are damaged as a result of any breach of the
above commitments by the company and other enterprises on which the company exercises
control and exerts significant influence, the company will legally bear the corresponding
liability for damage.
1. The company legally holds the Subject Shares, of which the company has full ownership,
and there are no restrictions on the rights of the Subject Shares or any circumstances that may
affect the offer or settlement of the Transaction. 2. The company has full rights to participate
in the Transaction and has the right to accept the Offer in connection with the Transaction
HCH (HK)
and to sign and perform all agreements and documents involved in the Transaction. 3. The 29 July 2020,
INVESTME
Company intends to participate in the Transaction as a shareholder under the scheme of termination of
NT
Others arrangement. 4.Unless the privatisation of Haier Electronics is completed or Haier Smart privatization / six Yes Yes
MANAGEM
Home announces the termination of privatisation, except for the transactions with Haier months after H
ENT CO.,
Smart Home and its designated entities, the Company will not sell the Subject Shares, reach Share listing
LIMITED
any disposal arrangements with any third party regarding the Subject Shares or their rights
and interests, and set any rights restrictions such as pledge on the Subject Shares from the
date of issuance of this confirmation letter. 5. Unless the privatisation of Haier Electronics is
completed or Haier Smart Home announces the termination of privatization, except for
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participating in and promoting the Transaction, the company will not increase its
shareholding in Haier Electronics, reach any arrangements with other shareholders of Haier
Electronics regarding the disposal of the Subject Shares or their rights and interests, or set
any rights restrictions such as pledge on Haier Electronics shares held by other shareholders
of Haier Electronics. 6. The company will abide by the relevant restrictions on the sale of
Haier Smart Home Shares in Rule 10.07 of the Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited, which has been revised from time to time:
within six months from the date of disclosure of our shareholding in Haier Smart Home H
shares listed in the Transaction to the date of trading of Haier Smart Home H shares on the
Hong Kong Stock Exchange, the company will not sell Haier Smart Home H shares acquired
by the company through the Transaction, or enter into any agreement to sell such shares, or
create any options, rights, interests or encumbrances in respect of such shares; In addition,
the sale of the Haier Smart Home H Shares, the entering into of any agreement to sell such
shares, or the exercise or enforcement of such options, rights, benefits or encumbrances in
respect of such shares by the company during the six months following the expiry of the
aforesaid six-month period shall not result in Haier Group Companies and parties acting in
concert with it losing their status as controlling shareholders of Haier Smart Home.
1. The Transaction constitutes a connected transaction and the connected transaction
HCH (HK)
Address procedures performed under the Transaction are in compliance with the relevant regulations.
INVESTME 29 July 2020,
connected The pricing of the connected transaction is fair and there are no circumstances under which Yes Yes
NT long-term
transactions the interests of the listed company and the non-connected shareholders are prejudiced. 2.
MANAGEM
Upon completion of the Transaction, the company and other enterprises on which the
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ENT CO., company exercises control will take lawful and effective measures to minimize and regulate
LIMITED the connected transactions with the listed company, take the initiative to safeguard the
interests of the listed company and all shareholders, and refrain from taking advantages of
connected transactions for improper benefits. 3. Provided that there is no conflict with laws
and regulations, if connected transactions between the company and other enterprises on
which the company exercise control and the listed company occur or exist which cannot be
avoided or for which there are reasonable reasons, the company and other enterprises on
which the company exercises control will legally enter into a transaction agreement with the
listed company to ensure strict compliance with the procedures of connected transactions
required by the laws, regulations, regulatory documents and the articles of association of the
company, conduct transactions in accordance with the principles of marketability and fair
prices, and refrain from taking advantages of such connected transactions to engage in any
acts that are detrimental to the interests of the listed company or its minority shareholders,
and at the same time, comply with the information disclosure obligations in accordance with
relevant regulations. 4. Any covenants and arrangements between the company and other
enterprises on which the company exercise control and the listed company in relation to
connected transactions shall not prevent the other party from conducting business or dealing
with any third party for its own benefit and on equal competitive terms in the market.
Undertaking Eliminate the Haier Group Corporation undertakes that it will assure Haier Smart Home and its subsidiaries
Haier Group 24 December
related to right defects of the constant, stable and unobstructed use of the leased property. In the event that Haier Yes Yes
Corporate 2013, long-term
refinancing in land Smart Home or any of its subsidiaries suffers any economic loss due to the fact that leased
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property and property has no relevant ownership certificate, Haier Group Corporation will make
etc. 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 grant or take practicable measures to assure Haier Smart Home and its subsidiaries of
priority to continue to lease the property at a price not higher than the rent in comparable
market at that time. Haier Group Corporation will assure Haier Smart Home and its
subsidiaries of the constant, stable, free and unobstructed use of self-built property and land
of the Group. In the event that Haier Smart Home or any of its subsidiaries fails to continue
to use self-built property according to its own 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
Haier Smart Home 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 Operation of Issuer Caused by Uncertainty of
Ownership, Solution for the Defect and Guarantee Measures (L2014-005) published by the
Company on the four major securities newspapers and the website of Shanghai Stock
Exchange on 29 March 2014.
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The Company undertakes that it will eliminate the property defects of the Company and main
subsidiaries within five years with reasonable business effort since 24 December 2013, to
achieve the legality and compliance of the Company and main subsidiaries in terms of land
and property. For details, please refer to the Announcement of Qingdao Haier Co., Ltd. on
the Formation, Current Situation of the Defective Property, the Influence on Operation of
Issuer Caused by Uncertainty of Ownership, Solution for the Defect and Guarantee Measures
(L2014-005) published by the Company on the four major securities newspapers and the
Eliminate the
Haier Smart website of Shanghai Stock Exchange on 29 March 2014. As at the end of 2018, the Company
right defects 24 December
Home Co., has resolved the property defects of itself and its eight major subsidiaries and is in the process Yes Yes
in land 2013, eight years
Ltd. of resolving the property defects of the remaining five major subsidiaries. After the approval
property etc.
of the board meeting held by the Company on 5 November 2018 and the general meeting
held on 21 December 2018, the term of the above undertakings was extended for three years
based on the original deadline. At present, the property defects of the five major subsidiaries
have been properly resolved by applying for property ownership certificates, relocating the
defective properties and categorizing them as reserve alongside the lands, divesting the
defective properties with the equity of the subsidiaries and other means. The Company has
fulfilled this undertaking.
15 September
Undertakings
Haier Smart The Company will not provide loans or any other forms of financial assistance, including 2021, the
related to
Others Home Co., guaranteeing their loans, to any incentive recipient for acquiring relevant stock options under completion of Yes Yes
Equity
Ltd. this incentive plan. equity incentive
incentive
implementation
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Inject the assets of Haier Photoelectric to the Company or dispose such assets through other
ways according to the requirements of the domestic supervision before June 2025. For more
Asset Haier Group December 2015
details, please refer to the Announcement of Haier Smart Home Co., Ltd. on the Changes of Yes Yes
injection Corporation to June 2025
Some Commitments on Asset Injection (L2020- 024) published on the four major securities
newspapers and the website of Shanghai Stock Exchange on 30 April 2020.
In August 2018, Guanmei (Shanghai) Enterprise Management Company Limited ( (
上 美贯
)
司公限有理管业企 海 ) (hereinafter referred to as “Guanmei”), an indirect holding
subsidiary of the Company replaced the 55% equity interests of Bingji (Shanghai) Enterprise
Management Company Limited ( ( )
司公限有理管业企 海上 戟冰 ) held by it with the 51%
Haier
equity interests of Qingdao HSW Water Appliance Co., Ltd. (hereinafter referred to as
COSMO Co.,
Other “Water Equipment”) held by Haier Electric Appliances International Co., Ltd. (hereinafter
Ltd.
undertakings referred to as “Haier International”). In this regard, Haier International promises that the
(formerly
Profit cumulative actual net profit recorded by the Water Equipment in the three accounting years
known as As of 30 April
forecast and during the profit compensation period shall not be less than its cumulative forecasted net Yes Yes
“Haier 2021
compensation profit in the corresponding year, otherwise Haier International shall compensate Guanmei’s
Electric
results according to the Assets Replacement Agreement. Details are set out in the
Appliances
Announcement on the Equity Replacement and Related Party Transactions to Be Conducted
International
by the Holding Subsidiary of Qingdao Haier Co., Ltd. and Haier Electronics International
Co., Ltd.”)
Co., Ltd. (L2018-047) published by the Company on the four major securities newspapers
and the website of Shanghai Stock Exchange on 31 August 2018. Since the Water Equipment
achieved the cumulative net profit in the three accounting years during the profit
compensation period, Haier International shall not compensate the results. Details are set out
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in the Special Audit Report on the Satisfaction of Performance Commitment of Haier Smart
Home Co., Ltd. (Report No.: He Xin Zhuan Zi (2021) No.000101) disclosed by the Company
on 31 March 2021.
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(II) The Company’s explanation on whether the earnings forecast on assets or projects was
met and its reasons in the situation that earnings in the Company’s assets or projects
have a forecast, and the period of which includes the reporting period.
□ Reached □ Not Reached √Not Applicable
(III) Completion of performance commitments and their impact on the impairment test of
goodwill
□ Applicable √ Not Applicable
II. NON-OPERATING UTILIZATION OF FUNDS BY CONTROLLING
SHAREHOLDERS AND OTHER RELATED PARTIES DURING THE REPORTING
PERIOD
□Applicable √Not Applicable
III. INFORMATION ON NON-COMPLIANCE GUARANTEES
□Applicable √Not Applicable
IV. EXPLANATION OF THE BOARD OF THE COMPANY ON THE ‘NON-STANDARD
AUDIT REPORT’ ISSUED BY THE ACCOUNTING FIRM
□Applicable √Not Applicable
V. EXPLANATION OF THE COMPANY’S ANALYSIS ON REASONS AND EFFECTS
OF CHANGES IN ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES OR
CORRECTION OF SIGNIFICANT ACCOUNTING ERRORS
(I) Explanation of the Company’s analysis on reasons and effects of changes in accounting
policies and accounting estimates
□Applicable √Not Applicable
(II) Explanation of the Company’s analysis on reasons and effects of correction of significant
accounting errors
□Applicable √Not Applicable
(III) Communication with former accounting firm
□Applicable √Not Applicable
(IV) Other explanations
□Applicable √Not Applicable
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VI. APPOINTMENT AND DISMISSAL OF ACCOUNTING FIRM
Unit and Currency: RMB million
Current appointment
Name of domestic accounting firm Hexin Certified Public Accountants LLP
Remuneration of domestic accounting firm 7.15
Audit period of domestic accounting firm 9 years
Name of overseas accounting firm HLB Hodgson Impey Cheng Limited
Remuneration of overseas accounting firm 3.89
Audit period of overseas accounting firm
2 years
Name Remuneration
Accounting firm for Internal control audit Hexin Certified Public Accountants LLP 2.85
Financial advisor Zheshang Securities Co., Ltd. 0
Explanation of appointment and dismissal of accounting firm
□ Applicable √ Not Applicable
Explanation of change of accounting firm during the auditing period
□ Applicable √ Not Applicable
VII. POSSIBILITY OF DELISTING
(I) Reasons of warning for delisting risks
□ Applicable √ Not Applicable
(II) Response measures to be taken by the Company
□ Applicable √ Not Applicable
(III) Circumstances and reasons for termination of listing
□ Applicable √ Not Applicable
VIII. MATTERS RELATING TO BANKRUPTCY AND RESTRUCTURING
□ Applicable √ Not Applicable
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IX. MATERIAL LITIGATION AND ARBITRATION MATTERS
□ Material litigation and arbitration matters during the year
√ No material litigation and arbitration matters during the year
X. PUNISHMENT AND CORRECTION ON THE LISTED COMPANY AND ITS
DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT, CONTROLLING
SHAREHOLDERS AND ULTIMATE CONTROLLERS DUE TO SUSPECT OF LAW
VIOLATIONS AND THE ISSUE OF RECTIFICATION
□ Applicable √ Not applicable
XI. EXPLANATION OF THE INTEGRITY STATUS OF THE COMPANY AND ITS
CONTROLLING SHAREHOLDERS AND ULTIMATE CONTROLLER DURING
THE REPORTING PERIOD
□ Applicable √ Not applicable
XII. SIGNIFICANT RELATED-PARTY TRANSACTIONS
(I) Related-party transactions from daily operation
1. Matters that have been disclosed in temporary announcements and with no subsequent
progress or change
□ Applicable √Not applicable
2.Matters that have been disclosed in temporary announcements and with subsequent progress
or change
√Applicable □Not applicable
Pursuant to the " Resolution on Proposal to the General Meeting to Authorize the Board of Directors
and its Authorized Persons to Sign the Framework Agreement on Connected Transactions for 2020-
2022" ( 署 签 士 人权 授其 及会 事董 权授 会 大东 股请 提于关《 2020-2022 议的 定协 架框 易 交联关年
》案 ) considered and approved at the 10th meeting of the 10th session of the Board of Directors and the
Second Extraordinary General Meeting of 2020, the " Resolution on Signing the Framework Agreement
on Connected Transactions" ( 》 案议的定 协架 框易交 联关署 签于关《 ) considered and approved at the
14th meeting of the 10th session of the Board of Directors, and the " Resolution of Haier Smart Home
Co., Ltd. on Renewing the Framework Agreement on Financial Services with Haier Group Corporation
and Estimated Amount of Connected Transactions" ( 司公 团集尔海 与于 关司公 限有份 股家智尔海《
》案议 的度 额易交 联关计 预暨签续 ) considered and approved at the 18th meeting of the 10th session
of the Board of Directors and the 2020 Annual General Meeting, the Company has made estimation on
the connected transactions for the next three years, as detailed in the aforesaid announcements regarding
the resolutions of the meetings.
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For the actual performance of the Company's connected transactions in the year of 2021, please
refer to "XII. Related parties and related-party transactions " under Section X — Financial and
Accounting Report set out in this regular report.
3.Matters not disclosed in temporary announcements
□ Applicable √ Not applicable
(II) Related-party transactions regarding acquisition or disposal of assets/equity
1. Matter disclosed in temporary announcements and with no subsequent progress or change
√ Applicable □ Not Applicable
Summary of matters Query index
Related-party transactions involved in the For details, please refer to the Announcement of
acquisition of minority interests: please refer to Haier Smart Home Co., Ltd. on the Acquisition
(V) Analysis of status of investment in Section III of Equity Interests in Subsidiaries held by Haier
Discussion and Analysis of Operation of this Group Corporation and Related-Party
report. Transactions disclosed on 30 October 2021 and
relevant announcements disclosed on the same
day.
2. Matters that have been disclosed in temporary announcements and with subsequent progress or
change
□ Applicable √ Not applicable
3. Matters not disclosed in temporary announcements
□ Applicable √ Not applicable
4. If performance agreement is involved, the performance achieved during the reporting period
shall be disclosed
□ Applicable √ Not applicable
(III) Significant related-party transactions of joint external investment
1. Matters that have been disclosed in temporary announcements and with no subsequent progress
or change
□ Applicable √ Not applicable
2. Matters that have been disclosed in temporary announcements and with subsequent progress or
change
□ Applicable √ Not applicable
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Haier Smart Home Co., Ltd. 2021 Annual Report
3. Matters not disclosed in temporary announcements
□ Applicable √ Not applicable
(IV) Amounts due to or from related parties
1. Matters that have been disclosed in temporary announcements and with no subsequent progress
or change
□ Applicable √ Not applicable
2. Matters that have been disclosed in temporary announcement and with subsequent progress or
change
□ Applicable √ Not applicable
3. Matters that haven’t been disclosed in temporary announcements
□ Applicable √ Not applicable
(V) Financial business between the Company and the finance company with which it has a
related relationship, or it is the company's controlling finance company and related
parties
√ Applicable □Not applicable
1. Deposit business
√ Applicable □Not applicable
Unit and Currency: RMB
Changes of the period
Range
Maximum Balance as at the
Related of Total amount Balance as at the end
Relationship daily deposit beginning of the Total amount
party deposit deposited during the of the period
limit period withdrawn during the
interest period
period
Haier Subsidiary 0.385%
Finance of Haier 29 billion to 24,964,098,241.74 410,845,216,685.05 407,177,168,007.49 28,632,146,919.30
Co., Ltd. Group 3.25%
Total / / / 24,964,098,241.74 410,845,216,685.05 407,177,168,007.49 28,632,146,919.30
2. Lending business
√ Applicable □Not applicable
Unit and Currency: RMB
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Changes of the period
Range of Balance as at the
Related Loan Total loan Balance as at the
Relationship loan beginning of the Total repayment
party limit amount for the end of the period
interest period amount for the
period
period
Haier
Subsidiary of 5 1.52%to
Finance 454,470,450.05 19,359,969.00 137,322,759.93 336,507,659.12
Haier Group billion 3.08%
Co., Ltd.
Total / / / 454,470,450.05 19,359,969.00 137,322,759.93 336,507,659.12
3. Credit business or other finance businesses
√ Applicable □Not applicable
Unit and Currency: RMB
Actual amount of
Related party Relationship Type of business Total amount
occurrence
Foreign exchange derivatives
Haier Finance Co., Ltd. Subsidiary of Haier Group 5.5 billion 2,611,999,252.69
products
Haier Finance Co., Ltd. Subsidiary of Haier Group Service charge 80 million 23,493,333.12
4. Other explanations
□Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XIII. SIGNIFICANT CONTRACTS AND THEIR EXECUTION
(I) Trusteeship, contracting and leasing
1. Trusteeship
□ Applicable √ Not applicable
During the reporting period, the Company had no material escrow matters. Up to now, the following
entrusted assets that have been approved by the Company's shareholders' meeting are still in effect:
According to Haier Group's commitment in 2011 on further supporting the development of Qingdao
Haier and resolving interbank competition to reduce connected transactions, based on the fact that
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Qingdao Haier Optoelectronics Co., Ltd. ( 司公限 有 电光尔海岛青 ) and its subsidiaries, the main body
of Haier Group engaging in the color television business, are still in a period of transformation and
integration, and their financial performance has not yet met the Company's expectations, Haier Group is
unable to complete the transfer before the aforesaid commitment period. Haier Group intends to entrust
the Company with the operation and management of the escrow assets and pay the Company an annual
escrow fee of RMB1 million during the escrow period.
2. Contracting
□ Applicable √ Not applicable
3. Leasing
□ Applicable √ Not applicable
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(II) Guarantee
√ Applicable □ Not applicable
Unit and Currency: RMB0’000
External guarantees provided by the Company (excluding guarantees for subsidiaries)
Date of
Whether
Relationship occurrence Whether Overdue Whether
Expiration the
between the Secured Amount of of the Commencement Type of Collateral the amount of Whether there is a Related-party
Guarantor date of guarantee Relationship
guarantor and the party guarantee guarantee date of guarantee guarantee (if any) guarantee the counter-guarantee guarantee or
guarantee has been
listed company (date of is overdue guarantee not
fulfilled
agreement)
Total amount of guarantee occurred during the reporting period (excluding guarantees for subsidiaries) 0
Total balance of guarantee at the end of the reporting period (A) (excluding guarantees for subsidiaries) 0
Guarantees provided by the Company for subsidiaries
Total amount of guarantees for subsidiaries occurred during the reporting period 3,111,075
Total balance of guarantees for subsidiaries at the end of the reporting period (B) 1,135,728
Total amount of guarantees provided by the Company (including guarantees for subsidiaries)
Total amount of guarantee (A + B) 1,135,728
Ratio of total amount of guarantees to net assets of the Company (%) 14.28
Including:
Amount of guarantees for shareholders, ultimate controllers and their related parties(C) 0
Amount of debt guarantees provided directly or indirectly for the secured party with asset-liability ratio 252,863
exceeding 70% (D)
The amount of total amount of guarantee in excess of 50% of net assets (E) 0
Total amount of the above three guarantees (C + D + E) 252,863
Explanation of possibly bearing related discharge duty for premature guarantees Nil
Explanation of guarantee status Nil
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(III) Entrusted others to manage cash assets
1. Entrusted wealth management
(1) Overall of entrusted wealth management
√ Applicable □ Not applicable
Unit and Currency: RMB
Premature Past due uncollected
Type Sources of funds Amount
balance amount
Principal-guaranteed
wealth management Self-owned
2,472,550,008 2,472,550,008 0
products and funds, CB
structured deposit
Others
√ Applicable □ Not applicable
By the end of the reporting period, the balance of the Company’s entrusted wealth
management amounted to RMB2.473 billion, including two parts: ①temporarily-idle fundraising
wealth management: at the end of December 2018, the Company’s proceeds for the issuance of
convertible corporate bonds were fully landed. In order to improve the yield of temporarily-idle
funds, the Company intended to carry out cash management with the amounts not exceeding
RMB0.5 billion after approved by the Board of Directors. By the end of the reporting period, the
balance of the entrusted wealth management amounted to RMB315 million; ②
Temporary-idle
funds wealth management by certain subsidiaries of the Company: Under the premise of
ensuring sufficient capital required by the principal operating activities and daily operations, some
subsidiaries of the company purchased some short-term principal-guaranteed wealth management
products and structured deposits from major commercial banks to improve the yield of temporarily-
idle funds and the return for shareholders within the authority of the general manager’s office
meeting and under the condition of ensuring fund safety. By the end of the reporting period, the
balance of the entrusted wealth management amounted to RMB2.158 billion.
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(2) Individual entrusted wealth management
√ Applicable □ Not applicable
Unit and Currency: RMB
Any future Amount of
Type of Commencement Expiration date plan for provision for
Amount of Actual Whether
entrusted date of entrusted of entrusted Sources of Determination Annualized Expected Collectio entrusted impairment
Trustee entrusted wealth Investment gains or approved by
wealth wealth wealth funds of return yield return (if any) n wealth (if any)
management losses due process
management management management managemen
t
Haier Road
sub-branch of Wealth Self-owned Not
240,000,000.00 2021/10/27 2022/1/27 3.40% 2,056,767
Construction management funds expired YES YES
Bank
Haier Road
sub-branch of Wealth Self-owned Not
300,000,000.00 2021/11/24 2022/5/24 3.50% 5,206,849
Construction management funds expired YES YES
Bank
Qingdao branch
of Bank of Wealth Self-owned Not
878,000,000.00 2021/10/27 2022/1/26 3.35% 7,333,104
Communication management funds expired YES YES
s
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Qingdao branch
of Shanghai Wealth Not
Self-owned
Pudong management 290,000,000.00 2021/11/3 2022/1/29 3.20% 2,211,945 expired YES YES
funds
Development
Bank
Qingdao branch
of Shanghai
Pudong Wealth Self-owned Not
278,500,000.00 2021/11/22 2022/2/21 3.20% 2,221,896
Development management funds expired YES YES
Bank
Qingdao branch
of Bank of Wealth Self-owned Not
62,000,000.00 2021/9/17 2022/1/18 3.30% 689,474
Communication management funds expired YES YES
s
Haier Road
sub-branch of Wealth Self-owned Not
100,000,000.00 2021/12/22 2022/3/22 3.40% 838,356
Construction management funds expired YES YES
Bank
Haier Road Linked Not
sub-branch of structured 65,000,000 2021/11/29 2022/5/29 CB 3.50% 1,128,151 expired YES YES
China deposit
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Construction
Bank
Corporation
Haier Road Linked
sub-branch of structured
China deposit Not
Construction 125,000,000 2021/12/27 2022/6/26 CB 3.50% 2,169,521 expired YES YES
Bank
Corporation
Haier Road Linked
sub-branch of structured
China deposit
Construction 125,000,000 2021/9/2 2022/2/15 CB 3.50% 1,989,726 Not YES YES
Bank expired
Corporation
Asset Short-term
Self-owned Not
management wealth 9,050,008 YES YES
funds expired
account of management
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Industrial Bank
CO., LTD.
Others
□ Applicable √Not applicable
(3) Provisions for impairment of entrusted wealth management
□ Applicable √Not applicable
2. Entrusted loans
(1) Overall entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not Applicable
(2) Individual entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not Applicable
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(3) Provisions for impairment of entrusted loans
□ Applicable √ Not Applicable
3. Others
√ Applicable □ Not Applicable
RMB0’000
Amount
Initial investment Amount sold Proportion of closing
Operator name of Type of Opening purchased Provision for Closing Actual profit or
amount of during the investment amount
derivatives derivatives Starting date Ending date investment during the impairment investment loss for the
derivatives reporting over net assets at end
investment investment amount reporting (if any) amount reporting period
investment period of reporting period
period
Forward
foreign
Bank 1,250,593 1 Jan 2021 31 Dec 2021 1,250,593 1,247,880 20,489
exchange
contract
Interest
Bank rate/exchange 230,366 1 Jan 2021 31 Dec 2021 230,366 209,737 -2,596
rate swap
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Own funds of the Company
Funding sources of derivatives investments
Changes in market prices or fair value of products,
1. The profit or loss of the foreign exchange forward contracts amounted to RMB204.89 million during the reporting period;
For changes in the market price or fair value of the invested
derivatives products during the reporting period, the 2. The profit and loss arising from the interest rate/exchange rate swap was –RMB25.96 million during the reporting period.
specific methodology used and the settings of relevant
assumptions and parameters should be disclosed in the fair The specific methodology used and the related assumptions and parameter settings are according to the forward quotations of foreign exchange and interest rate
value analysis of the derivatives. swaps of the financial institutions
(IV) Other Major Contracts
□ Applicable √ Not Applicable
XIV. EXPLANATION OF OTHER SIGNIFICANT MATTERS THAT HAVE A SIGNIFICANT IMPACT ON THE VALUE JUDGMENTS AND
INVESTMENT DECISIONS OF INVESTORS
□ Applicable √ Not Applicable
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Section VII Changes in Shares and Information about Shareholders
I. CHANGES IN SHARE CAPITAL
(I) Table of Changes in shares
1. Table of Changes in shares
Unit: share
Prior to the change Increase and decrease of the change ( ＋ ,-) After the change
Shares
New shares Bonus
Number Percentage converted Others Subtotal Number Percentage
issued shares
(%) from reserve (%)
I. Shares with selling
restrictions
1. Shares held by the state
2. Shares held by the
state-owned legal entities
3. Shares held by other
domestic investors
Including: shares held by
Domestic non-state-
owned
legal entities
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Shares held by domestic
individuals
4. Shares held by foreign
investors
Including: shares held by
foreign legal
entities
Shares held by foreign
individuals
II. Tradable shares
9,027,846,441 100.00 403,210,889 -32,352,800 370,858,089 9,398,704,530 100.00
without selling restrictions
1. RMB ordinary shares 6,308,552,654 69.88 6,308,552,654 67.12
2. Domestic listed foreign
shares
3. Overseas listed foreign
2,719,293,787 30.12 403,210,889 -32,352,800 370,858,089 3,090,151,876 32.88
shares
4. Others
III. Total shares 9,027,846,441 100.00 403,210,889 -32,352,800 370,858,089 9,398,704,530 100.00
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2. Statement on the changes in shares
√ Applicable □ Not Applicable
(1) H-share convertible bonds: On 27 October 2020, the China Securities Regulatory Commission
issued the Reply to the Approval of Issuance of Overseas Listed Foreign Shares and Convertible Corporate
Bonds by Haier Smart Home Co., Ltd. ( 换 转可及 股资外市 上外 境行发 司公限 有份股家 智 尔海准 核于关《
》 复批的 券债司公 ) (Zheng Jian Xu Ke [2020] No. 2768), which approved that: (1) the Company issued no
more than 2,856,526,138 overseas listed foreign shares (including additional shares issued by holders of
convertible corporate bonds not exceeding HK$8.0 billion or equivalent in foreign currencies upon the exercise
of the convertible rights), with a par value of RMB1 each, all of which are ordinary shares. After the completion
of this issuance, the Company can be listed on the main board of the Stock Exchange of Hong Kong Limited
(hereinafter referred to as the “Hong Kong Stock Exchange”) ; (2) the issuance of corporate bonds not exceeding
HK$8.0 billion or equivalent in foreign currencies that can be converted into the Company’s overseas listed
foreign shares by the overseas wholly-owned subsidiaries guaranteed by the Company. On 23 December 2020,
2,448,279,814 H shares of the Company, issued for the privatisation of Haier Electronics Group Co., Ltd. (a
Hong Kong listed company), were listed and traded on the Main Board of the Hong Kong Stock Exchange and
the related convertible bonds under the H share convertible bonds scheme became valid and in effect
immediately after the listing amounting to HK$7,993,000,000. During the reporting period, HK$7,594,000,000
of the convertible bonds were converted into a total of 403,210,889 H shares of the Company and the
outstanding amount was HK$399,000,000.
(2) Cancellation of H share repurchase: On 5 March 2021, the First Extraordinary General Meeting of
2021 and the First Class Meeting of 2021 for A shares/D shares/H shares of the Company considered and
approved the "Resolution on the Introduction of General Mandate for Repurchase of H Shares upon Completion
of Listing", in which the Company intends to repurchase H shares and cancel them within the agreed period.
During the reporting period, the Company repurchased a total of 32,352,800 H shares and all such shares have
been cancelled.
Based on the above, during the reporting period, the share capital of the Company was changed from
9,027,846,441 shares at the beginning of the reporting period to 9,398,704,530 shares.
3. Effect of changes in shares on the financial indicators such as earnings per share and net assets per
share (if any) over the last year and the last reporting period
√ Applicable □ Not Applicable
In 2021, the Company achieved net profit attributable to shareholders of the Parent Company of
RMB13,067,038,271.85, equity attributable to owners of the Parent Company of RMB79,810,927,325.55, in
terms of total share capital of 9,027,846,441 shares at the beginning of the period, profit per share was RMB1.45
and net asset was RMB8.84 per share accordingly; in terms of total share capital of 9,398,704,530 shares at the
end of the period, profit per share was RMB1.39 and net asset was RMB8.49 per share accordingly.
4. Other disclosure deemed necessary by the Company or required by securities
regulatory authorities
□Applicable √Not Applicable
(II) Changes in shares with selling restriction
□Applicable √Not Applicable
II. ISSUANCE AND LISTING OF SECURITIES
(I) Issuance of securities as of the reporting period
√Applicable □Not Applicable
Unit: share Currency: RMB
Type of shares and Date of Issuing price Number of Date of listing Number of Date of
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Haier Smart Home Co., Ltd. 2021 Annual Report
its derivative securities issue (or interests issuance shares under termination
rate) listing
approval
Convertible corporation bonds, convertible bonds with warrants
Corporate bonds convertible 23 /
23 December
into H-shares December 7,993,000,000 7,993,000,000 21 November 2022
2020
2020
Details of issuance of securities as of the reporting period (please specify separately for bonds with different
interest rates within the duration):
√ Applicable □ Not Applicable
On 27 October 2020, China Securities Regulatory Commission (CSRC) issued the Reply on Approval of
the Foreign Public Issuance of Convertible Bonds by Qingdao Haier Co., Ltd.” (Zheng Jian Xu Ke [2020] No.
2768, hereinafter referred to as “CSRC Reply”), which approved: (1) Haier Smart Home shall issue not more
than 2,856,526,138 overseas listed foreign capital shares (including not more than HK$8 billion or the
equivalent in foreign currencies of shares issued for the holders of convertible corporate bonds upon the exercise
of conversion rights), with a par value of RMB1 each and all of which are ordinary shares. Upon the completion
of this issue, Haier Smart Home can be listed on the Main Board of The Stock Exchange of Hong Kong Limited;
(2) the overseas wholly-owned subsidiary guaranteed by Haier Smart Home can issue corporate bonds of not
exceeding HK$8 billion or equivalent in foreign currencies that can be converted into overseas listed foreign
capital shares of the issuer. Pursuant to which and with the approval of the relevant parties, the Company and
Harvest International Company, a wholly- owned subsidiary of the Company, issued 2,448,279,814 H-shares
and convertible bonds respectively on Hong Kong Stock Exchange on 23 December 2020 (the ex-changeable
bonds of HK$8 billion issued in November 2017 were converted into convertible bonds, and the convertible
bonds in effect amounted to HK$7,993 million, which can be converted into H-shares of the Company). For
details, please refer to the prospectus and other relevant documents disclosed in Hong Kong market during the
reporting period of the Company and the Report on the Implementation of Material Asset Purchase and Related
Party Transactions and other relevant documents disclosed on 26 December 2020.
(II) Changes in total shares and shareholder structure as well as assets and liabilities structure of the
Company
√ Applicable □ Not Applicable
For the total number of ordinary shares of the Company and changes in shareholder structure, please refer
to the relevant explanations in ‘I. Changes in share capital’ and ‘III. Information on shareholder and ultimate
controllers’ in this section. For the impact of the aforesaid changes on ‘Paid-in capital (or share capital)’ in the
Company’s balance sheet and other items, please refer to the relevant content in ‘Section X Financial Report’
of this report.
(III) Information on existing shares specifically issued for staff
□ Applicable √ Not Applicable
III. INFORMATION ON SHAREHOLDERS AND ULTIMATE CONTROLLERS
(I) Total number of shareholders
Total number of ordinary shareholders up to the end of the reporting period 156,482
Total number of ordinary shareholders as at the end of the last month prior to 170,068
the disclosure day of the annual report
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Haier Smart Home Co., Ltd. 2021 Annual Report
(II) Table of top ten shareholders, top ten common shareholders (or the shareholders not subject to selling restrictions) by the end of the reporting period
Unit: share
Shareholdings of top ten shareholders
Number of Status of shares
Number of shares pledged, marked or
Increase/decrease
shares held at Percentage held frozen
Name of shareholder during the reporting Nature of shareholder
the end of the (%) with
(full name) period
period selling Status Number
restrictions
HKSCC NOMINEES LIMITED 1,820,935,022 19.37 Unknown Foreign legal entity
Haier COSMO Co., Ltd. ( 斯奥卡尔海 Domestic non-state-owned
1,258,684,824 13.39 None
)
司公 限有份股 legal entity
Domestic non-state-owned
Haier Group Corporation 1,072,610,764 11.41 None
legal entity
HCH (HK) INVESTMENT
538,560,000 5.73 None Foreign legal entity
MANAGEMENT CO., LIMITED
Hong Kong Securities Clearing Co.,
682,954,688 7.27 None Unknown
Ltd.
China Securities Finance Corporation
182,592,654 1.94 None Unknown
Limited
Qingdao Haier Venture & Investment
Information Co., Ltd. (
业创尔 海岛青 Domestic non-state-owned
172,252,560 1.83 None
legal entity
司 公限有 询咨资投 )
Qingdao Haichuangzhi Management
Consulting Domestic non-state-owned
Enterprise (Limited Partnership) (
岛青 103,210,216 1.10 None
legal entity
）伙合 限有 （业企 询咨理 管智创海 )
ALIBABA INVESTMENT
83,823,993 0.89 None Unknown
LIMITED
China Merchant Bank Co., Ltd. –
Xingquan Herun mixed securities 71,302,442 0.76 None Unknown
investment fund
Shareholdings of top ten shareholders not subject to selling restrictions
Number of tradable shares without Class and number of shares
Name of shareholder
selling restrictions Class Number
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Overseas listed
HKSCC NOMINEES LIMITED 1,820,935,022 1,820,935,022
foreign shares
Haier COSMO Co., Ltd. ( 司公限 有份股 斯奥卡尔海 ) 1,258,684,824 RMB ordinary 1,258,684,824
Haier Group Corporation 1,072,610,764 RMB ordinary 1,072,610,764
Overseas listed
HCH (HK) INVESTMENT MANAGEMENT CO., LIMITED 538,560,000 538,560,000
foreign shares
Haier Group Corporation 682,954,688 RMB ordinary 682,954,688
China Securities Finance Corporation Limited 182,592,654 RMB ordinary 182,592,654
Qingdao Haier Venture & Investment Information Co., Ltd.
172,252,560 RMB ordinary 172,252,560
( )
司公限 有询咨 资投业 创尔海岛青
Qingdao Haichuangzhi Management Consulting Enterprise
(Limited Partnership) (
合限 有（业 企询咨 理管智创 海岛青 103,210,216 RMB ordinary 103,210,216
) ）伙
Overseas listed
ALIBABA INVESTMENT LIMITED 83,823,993 83,823,993
foreign shares
China Merchant Bank Co., Ltd. – Xingquan Herun mixed
71,302,442 RMB ordinary 71,302,442
securities investment fund
Explanation on repurchase account
Not applicable
of top ten shareholders
Explanation on delegated voting rights, entrusted voting
Not applicable
rights, abstained voting rights of the aforesaid shareholders
(1) Haier COSMO Co., Ltd. ( ) is a holding subsidiary of Haier
司 公限有 份股斯 奥卡尔海
Group Corporation. Haier Group Corporation holds 51.20% of its equity. Each of Qingdao
Haier Venture & Investment Information Co., Ltd.(
司 公限有 询咨资 投业创尔 海岛青 ), HCH
Related parties or parties acting in concert among the (HK) INVESTMENT MANAGEMENT CO., LIMITED and Qingdao Haichuangzhi
aforesaid shareholders Management Consulting Enterprise (Limited Partnership) (
限有 （业 企询咨 理管智 创海岛青
）伙合 ) 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.
Explanation of preferential shareholders with
Not applicable
restoration of voting rights and their shareholdings
Note: (1) HKSCC NOMINEES LIMITED is the Banking Collection Account for the shareholders of the Company’s H-shares, which is the original data provided by China Hong
Kong securities registration agency to the Company after the merger according to local market practices and technical settings, not representing the ultimate shareholder. (2) As at the
end of the reporting period, Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) engaged in refinancing and securities lending business, involving a total
of 1,700,000 shares, whilst the ownership of which had not been transferred. The actual number of shares held by it totaled 104,910,216 shares.
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Haier Smart Home Co., Ltd. 2021 Annual Report
Number of shares held by top ten shareholders with selling restrictions and the selling
restrictions
□ Applicable √ Not Applicable
(III) Strategic investors or general legal persons who became the top ten shareholders due to
placing of new shares
□ Applicable √ Not Applicable
IV. CONTROLLING SHAREHOLDER AND THE ULTIMATE CONTROLLER
(I) Status of controlling shareholder
1 Legal person
√ Applicable □ Not Applicable
Name Haier COSMO Co., Ltd. ( 司公限 有份股 斯奥卡尔海 )
Person in charge of the Company or Zhou Yunjie ( 杰云周 )
legal representative
Establishment date 1988–06–30
Principal business Information technology integration and Internet of Things technology services:
industrial automation technology research and development, technical
consulting; research and development and manufacturing of electrical appliances,
electronic products, mechanical products, communication equipment and related
accessories, industrial automation control equipment, computer hardware and
software and auxiliary equipment; import and export business (operated within
the scope approved by MOFCOM); wholesale and retail: domestic commerce
(except for merchandises prohibited by the state); investment in medical industry;
investment advisory services; enterprise management consulting. (For projects
subject to approval, business activities can only be carried out after the approval
by relevant departments)
Shareholding of other controlling and Indirect controlling/participating Company: ‘Qingdao Haier Biomedical Co.,
participating domestic and overseas listed Ltd.’ ） 司公 限 有 份股 疗医 物 生 尔海 岛 青 （ (stock name: ‘Haier Biomedical’,
companies in the reporting period stock code: 688139), Yingkang Life Technology Co., Ltd. ( 份 股技科 命生康盈
)(stock name: ‘Yingkang Life’, stock code: 300143), ‘Qingdao Bank
司公限有
Co., Ltd.’
）司公限 有 份股行 银岛青 （ (stock name: ‘Bank of Qingdao’ , stock
code: 002948 and 3866.HK), ‘China International Capital Corporation Limited’
(stock name: ‘CICC’, stock code: 601995 and 3908.HK) etc.
Other explanation Nil
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2 Natural person
□ Applicable √ Not Applicable
3 Explanation on the absence of controlling shareholders of the Company
□ Applicable √ Not Applicable
4 Explanation on the change in controlling shareholders during the reporting period
□ Applicable √ Not Applicable
5 Framework of the ownership and controlling relationship between the Company and its
controlling shareholder
√ Applicable □ Not Applicable
(II) Status of the ultimate controller
1 Legal person
√ Applicable □ Not Applicable
Name Haier Group Corporation
Person in charge of the Company or Zhou Yunjie ( 杰云周 )
legal representative
Establishment date 1980–03–24
Principal business Technology development, technology consultation, technology transfer and
technology services (including industrial Internet, etc.); data processing; digital
technology, intelligent technology, software technology; research and development,
sales and after-sales service of robots and automation equipment products; logistics
information service; research and development and sales of software technology for
smart home products and solutions systems; manufacturing of household appliances,
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electronic products, communication equipment, electronic computers and
accessories, general machinery, kitchen utensils, industrial robots; wholesale and
retail of domestic commerce (except for the national dangerous prohibition franchise
exclusive control merchandises); import and export business (see the foreign trade
enterprise finalized certification for details); economic and technological
consultation; research and development and transfer of technological achievements;
rental of owned properties. (For projects subject to approval, business activities can
only be carried out after the approval by relevant departments)
Shareholding of other controlling Indirect controlling/participating Company: ‘Qingdao Haier Biomedical Co., Ltd.’
and participating domestic and ）司公限 有份 股疗医 物生尔 海岛青（ (stock name: ‘Haier Biomedical’, stock
overseas listed companies in the code: 688139), Yingkang Life Technology Co., Ltd. ( 司公限 有份股 技科命生康盈 )
reporting period (stock name: ‘Yingkang Life’, stock code: 300143), ‘Qingdao Bank Co., Ltd.’
岛青（
）司 公限有 份股行银 (stock name: ‘Bank of Qingdao’, stock code: 002948 and
3866.HK), China International Capital Corporation Limited’ (stock name: ‘CICC’,
stock code: 601995 and 3908.HK)
Other explanation Nil
2 Natural person
□ Applicable √ Not Applicable
3 Explanation on the absence of ultimate controller of the Company
□ Applicable √ Not Applicable
4 Explanation on the change in control over the Company during the reporting period
□ Applicable √ Not Applicable
5 Framework of ownership and controlling relationship between the Company and the ultimate
controllers
√ Applicable □ Not Applicable
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6 The ultimate controller controls the Company by way of Trust or other assets management
□ Applicable √ Not Applicable
(III) Introduction of controlling shareholders and ultimate controllers
√ Applicable □ Not Applicable
Haier Group Company is registered as a joint-stock enterprise. According to the statement issued
by the State-owned Assets Management Office of Qingdao on 1 June 2002, it is believed that the
enterprise nature of Haier Group Company is a collective owned enterprise.
V. THE PROPORTION OF THE ACCUMULATED NUMBER OF SHARES PLEDGED BY
THE CONTROLLING SHAREHOLDERS OR THE LARGEST SHAREHOLDER OF
THE COMPANY, TOGETHER WITH THE PARTIES ACTING IN CONCERT WITH
THEM TO THE NUMBER OF SHARES OF THE COMPANY HELD BY THEM
AMOUNTS TO MORE THAN 80%
□ Applicable √ Not Applicable
VI. OTHER CORPORATE SHAREHOLDERS WITH A SHAREHOLDING
PERCENTAGE OVER 10%
□ Applicable √ Not Applicable
VII. EXPLANATION OF REDUCTION OF SHARE RESTRICTIONS
□ Applicable √ Not Applicable
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VIII. SPECIFIC IMPLEMENTATION OF SHARE REPURCHASE DURING THE
REPORTING PERIOD
√ Applicable □ Not Applicable
Unit and Currency: RMB
Name of share repurchase plan Haier Smart Home Co., Ltd.’s public share proposal in relation to the
partial repurchase of A Shares
Date of disclosure of the share repurchase plan 6 March 2021
Number of shares proposed to repurchased and its 86,960,000 shares, 0.94
percentage to the total share capital (%)
Proposed amount of repurchase RMB 2 -4 billion
Proposed period of repurchase 6 March 2021 – 16 November 2021
Purpose of repurchase Used in entirety to implement the Company’s equity incentive
scheme and/or employee share ownership plans
Amount repurchased (share) 79,492,366
Repurchased amount as a percentage to the underlying
/
shares covered by the equity incentive scheme (%) (if any)
Progress of the Company’s reduction of its holdings of
/
repurchased shares by way of centralised bidding
Note: During the reporting period, the Company also implemented the H-share repurchase scheme. For
details, please refer to "2. Statement on the changes in shares" under "Section VII Changes in Shares
and Information about Shareholders " of this report and the Announcement on the Changes in Shares of
Overseas Listed Foreign Shares (H Shares) of Haier Smart Home Co., Ltd. ( 司公 限有份股 家智 尔海《
H
》 告公的 况情动 变份股） 股 （股资 外市上 外境于关 ) (No.: Lin 2021-049) disclosed by the
Company on 1 July 2021.
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Section VIII Relevant Information of Preferred Shares
□ Applicable √ Not Applicable
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Section IX Relevant Information of Bonds
I. Enterprise bond, corporate bond, and non-financial corporate debt financing instruments
√Applicable □Not Applicable
(1) Enterprise bond
□Applicable √Not Applicable
(2) Corporate bond
□Applicable √Not Applicable
(3) Non-financial corporate debt financing instruments in interbank bond market
√Applicable □Not Applicable
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1. General information on non-financial corporate debt financing
Unit and Currency: RMB100 million
Payment
method Arrangement Whether
Date Expiry Interest
Short Value Bond of Trading of investor Trading risk of
Bond Name Code of date Rate
Name date balance principal venue suitability (if mechanism delisting
issue (%)
and any) exists
interest
Haier Smart
Home Co., Ltd. 20 Haier
13
2020 first Smart 17 July 17 July
012002518 January 30 1.45 One-off None / No
tranche of ultra- Home 2020 2020
2021 Principal
short-term SCP001
and Interbank
financing bond
interest bond
Haier Smart
payment market
Home Co., Ltd. 20 Haier
28 28 24 upon
2020 second Smart
012003094 August August February 25 1.71 maturity None / No
tranche of ultra- Home
2020 2020 2021
short-term SCP002
financing bond
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Response measure in respect of risk of delisting of bonds
□Applicable √Not Applicable
Outstanding bonds past due
□Applicable √Not Applicable
Interest payment of bonds during the reporting period
√Applicable □Not Applicable
Bond Name Explanation on interest payment
Haier Smart Home Co., Ltd. 2020 first tranche the principal and interest have been settled in
of ultra-short-term financing bond full as agreed
Haier Smart Home Co., Ltd. 2020 second the principal and interest have been settled in
tranche of ultra-short-term financing bond full as agreed
2. Trigger and implementation of issuer or investor option terms and investor protection terms
√Applicable □Not Applicable
For the above two tranches of ultra-short-term financing bond, there were trigger mechanisms of
investor protection emergency response in place in case of extraordinary events to protect the interests
of the investors and minimize the adverse impact to the bond market. For details of the investor protection
mechanism, please refer to relevant documents, such as the prospectus of ultra-short-term financing
bonds, published by the Company on public document disclosure platforms for debt financing
instruments, including Chinamoney.com.cn.
During the valid period of the above-mentioned financing bonds, the Company did not experience any
relevant event triggering the investor protection mechanism.
3. Utilization of funds raised as at the end of the reporting period
□Applicable √Not Applicable
Progress of utilizing funds raised in construction projects and its operational efficiency
□Applicable √Not Applicable
Explanation on change in use of funds raised from bonds during the reporting period
□Applicable √Not Applicable
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Oher explanations
□Applicable √Not Applicable
4. Adjustment to credibility assessment results
□Applicable √Not Applicable
Oher explanations
□Applicable √Not Applicable
5. Guarantee, repayment schedule and implementation and change of other repayment guarantee
measures during the reporting period and their impact
□Applicable √Not Applicable
The above two tranches of ultra-short-term financing bond were not guaranteed and the repayment
was primarily funded by monetary assets of the Company. The Company devised prudent and detailed
financial arrangements and plans and delegated the task of repayment of debt financing instruments to
the financial department of the Company to obtain funding for timely repayment, ensure capital to be
deployed as planned and confirm the timely and full settlement of principal and interests of the debt
financing instruments, thereby properly safeguarding the interests of bondholders.
6. Explanation on other information on non-financial corporate debt financing instruments
□Applicable √Not Applicable
(IV) Losses exceeding 10% of net assets as at the end of previous year in the scope of combined
statements during the reporting period
□Applicable √Not Applicable
(V) Overdue interest-bearing liabilities other than bonds as at the end of the reporting period
□Applicable √Not Applicable
(VI) The impacts of breaching the requirements under laws and regulations, our articles of
association, our administrative system for information disclosure and agreements or undertakings
in the prospectuses of bonds on the interests of bond investors during the reporting period
□Applicable √Not Applicable
(VII) Accounting data and financial indicators for the last 2 years as of the end of the reporting
period
√Applicable □Not Applicable
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Unit and Currency: RMB
Key indicators 2021 2020 Yoy change (%)
Net profit after deduction of non-
11,831,272,558.29 6,457,813,335.37 83.21
recurring profit or loss
Liquidity ratio 0.99 1.04 -4.81
Quick ratio 0.67 0.78 -14.10
Debt to assets ratio (%) 63 67 -5.97
Total liabilities ratio of EBITDA 38 32 18.75
Interest coverage ratio 23.34 11.22 108.02
Cash interest coverage ratio 32.47 13.27 144.69
EBITDA interest coverage ratio 30.44 15.06 102.12
II. Convertible corporate bond
√Applicable □Not Applicable
(I) Convertible bond issue
√Applicable □Not Applicable
On 27 October 2020, the CSRC issued “reply to the approval for the issue of overseas listed foreign
shares and convertible corporate bonds by Haier Smart Home Co., Ltd.” ( 有份 股家智尔 海 准核于 关《
》复批 的 券 债 司 公 换 转 可 及 股资 外 市 上 外 境 行 发 司 公 限 ) (Zheng Jian Xu Ke [2020] No. 2768)
(hereafter, the “CSRC Reply”) to approve: (1) Haier Smart Home to issue not more than 2,856,526,138
overseas listed foreign Shares (including Shares to be issued pursuant to the exercise of conversion rights
by the holders of convertible corporate bonds with an amount of not more than HK$8 billion or equivalent
in any foreign currency) with a par value of RMB1, all registered as ordinary shares. Upon the completion
of the issue, Haier Smart Home may be listed on the main board of the Hong Kong Stock Exchange; (2)
With the guarantee of Haier Smart Home, its wholly-owned foreign subsidiary issued overseas corporate
bonds with an amount of not more than HK$8 billion or equivalent in any foreign currency, convertible
into overseas listed foreign shares of the issuer. Pursuant to this and approval from relevant parties,
2,448,279,814 H Shares and convertible bonds were issued by the Company and Harvest International
Company, a wholly-owned subsidiary of the Company in the Hong Kong Stock Exchange on 23
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December 2020, respectively (exchangeable bonds of HK$8 billion issued in November 2017 were
converted into convertible bonds, resulting in valid convertible bonds of HK$7.993 billion, which were
convertible into H Shares of the Company). Please refer to the prospectus and other relevant documents
disclosed by the Company in the Hong Kong market during the reporting period and the Report on
Implementation of Significant Asset Acquisition and Connected Transactions ( 联 关暨买购 产资大 重《
》书告 报况情 施实易交 ) disclosed by the Company on 26 December 2020 for details.
For the above-mentioned bonds, 105.11% of the remaining par value of the bonds were repaid in
a one-off repayment of principal and interest upon maturity.
(II) Convertible bond holders and guarantors for the reporting period
√Applicable □Not Applicable
Harvest International Company
HK$8,000,000,000 Zero Coupon Guaranteed
Name of convertible corporate bond
Convertible Bonds due 2022 (hereafter, “H Share
Convertible Bonds”)
Number of convertible bond holders as at the end
1
of the period
Guarantor of the Company’s convertible bonds Haier Smart Home Co., Ltd.
Top 10 holders of convertible bonds are as follows:
Name of holder of corporate Holdings as at the end of the
Holding percentage (%)
convertible bonds period ($)
HSBC Nominees (Hong Kong)
399,000,000 100
Limited
Note: (1) the aforementioned bonds as at the end of the period are denominated in Hong Kong Dollar;
(2) H Share Convertible Bonds of the Company are held on behalf by HSBC Nominees (Hong Kong)
Limited as the sole legal holder, who is not the ultimate holder. Information on the ultimate holders of
the bonds is only stored in the clearing system and, without the authorization from the ultimate holder,
the clearing system shall not directly provide the detailed list of ultimate bond holders to any cooperating
party.
(III) Conversion of convertible bonds for the reporting period
√Applicable □Not Applicable
Unit and Currency: HKD
Number of convertible Before the Increase/decrease for the conversion After the conversion
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corporate bond conversion Conversion Redemption Resale
H Share Convertible Bonds 7,993,000,000 7,594,000,000 399,000,000
Cumulative conversion of convertible bond for the reporting period
√Applicable □Not Applicable
Currency: HKD
Name of convertible corporate bond H Share Convertible Bonds H Share Convertible Bonds
Amount of conversion for the Reporting
7,594,000,000
Period ($)
Number of conversion for the Reporting
403,210,889
Period (Share)
Cumulative number of conversion
403,210,889
(Share)
Percentage of cumulative number of
conversion to total issued Shares of the 4.47
Company prior to the conversion (%)
Outstanding amount ($) 399,000,000
Percentage of outstanding amount to
total amount of convertible bonds issued 4.99
(%)
(IV) Historical adjustment of conversion price
√Applicable □Not Applicable
Unit and Currency: HKD
Name of convertible corporate bond H Share Convertible Bonds
Date of adjustment to conversion price Media for Explanation on adjustment
Date of disclosure
conversion price (adjusted) disclosure to conversion price
Hong Kong The implementation of the
23 August 2021 18.58 2 September 2021 Stock Company’s 2020 equity
Exchange, etc. distribution plan
Latest conversion price as of the end of the reporting
18.58
period
(V) Liabilities, change in credit and cash arrangements of repayment in the coming year of the
Company
√Applicable □Not Applicable
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As at the end of the reporting period, liabilities of the Company amounted to RMB136,376.5328
million, in which current liabilities amounted to RMB124,796.9546 million and non-current liabilities
amounted to RMB11,579.5782 million.
The Company remains stable in every operating condition with reasonable asset structure and good
credibility and is capable of providing stable and sufficient working capital for the interests of convertible
corporate bonds and repayment of the bonds in the coming year.
(VI) Other information on convertible bonds
√Applicable □Not Applicable
On 23 November 2017, the first 2017 Extraordinary General Meeting of the Company adopted the
Resolution of Qingdao Haier Co., Ltd. on the Scheme for Public Offering of Convertible Corporate
Bonds (the “A-share Convertible Bonds”) upon consideration. Pursuant to the resolution at this general
meeting and the approval documents of the China Securities Regulatory Commission and others, the
Company completed the issue of convertible corporate bonds in December 2018, with a total issue
amount of RMB3,007.49 million. The bonds were listed on 18 January 2019, which is referred to as
“Haier Convertible Bonds” and its bond code is 110049. For details, please refer to the Prospectus for
the Public Offering of A-share Convertible Corporate Bonds by Qingdao Haier Co., Ltd. as disclosed on
14 December 2018, and the Announcement on the Listing of Convertible Corporate Bonds by Qingdao
Haier Co., Ltd. as disclosed on 16 January 2019 and other relevant documents. As the convertible bonds
in 2019 met the redemption conditions and the Board of Directors of the Company decided to exercise
the redemption right after consideration and approval, the Company redeemed the balance of the
convertible bonds in full up to the registered amount on redemption registration date. After the
redemption, the convertible bonds of the Company were delisted on 17 December 2019. At present, the
A-share convertible bonds have ceased to be in existence, but the funds raised from the issuance of the
bonds have not been fully utilized. As of 31 December 2021, RMB2,681.48 million of the funds raised
from A-share convertible bonds have been utilized, with a balance of RMB369.1982 million (the account
balance includes the income generated from the purchase of wealth management products, interest on
demand deposits, foreign exchange gains and losses and the not-yet-invested capital raised). For details
of the use of funds, please refer to the Special Audit Report of Haier Smart Home Co., Ltd. on the Deposit
and Actual Utilization of Funds Raised in 2021, which was disclosed on the same date as this report.
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Section X Financial Report
I. AUDIT REPORT
√ Applicable □ Not Applicable
Audit Report
He Xin Shen Zi. (2022) No.000358
To all shareholders of Haier Smart Home Co., Ltd.:
I. AUDIT OPINION
We have audited the financial statements of Haier Smart Home Co., Ltd. (hereinafter referred to
as the ‘Haier Smart Home Co.’), which comprise the Consolidated and the Company’s Balance Sheet as
at 31 December 2021, the Consolidated and the Company’s Income Statement, the Consolidated and the
Company’s Cash Flow Statement, the Consolidated and the Company’s Statement of Changes in
Shareholders’ Equity for the year 2021, and notes related to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
Consolidated and the Company’s financial position of the Haier Smart Home Co as at 31 December 2021,
and the Consolidated and the Company’s financial performance and cash flow for the year 2021 in
accordance with the requirements of Accounting Standards for Business Enterprises.
II. BASIS OF OUR AUDIT OPINION
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities
under those standards are further described in Auditor’s responsibilities for the Audit of Financial
Statements section of the report. We are independent of Haier Smart Home Co in accordance with the
CICPA’s Code of Ethics for Professional Accountants (the Code), and we have fulfilled our other ethical
responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
III. KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements for the current period. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. We identify the following matters as the key audit matters
that need to be communicated in the audit report:
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Key Audit Matters Audit Response
(I) Provision for impairment of goodwill and intangible assets with indefinite useful lives
Relevant disclosures are included in Note V. 28 Other significant
We mainly implemented the following audit procedures on the
accounting policies and accounting estimates and Note V.19
provisions for the impairment of goodwill and intangible assets
Impairment of long-term assets to the financial statements.
with indefinite useful life:
As of 31 December 2021, the book value of goodwill was
(1) Compared the actual operating results of the related assets
RMB21.827 billion, and the book value of intangible assets with
group with previous year’s forecasted figures, to assess the
indefinite useful lives was RMB2.476 billion, without any provision
reliability of the management forecast on cash flow;
for asset impairment. Whether the provision for impairment of long-
term assets was sufficient had great influence to the financial
(2) Compared the input of cash flow forecast with historical data,
statements.
approved budget and business plan;
Significant management judgments are involved in calculation of
(3) Tested the calculation accuracy of the discounted cash flow
asset group’s recoverable amount, such as revenue growth rate, gross
model;
margin, discount rate, etc.
(4) Assessed the appropriateness of parameters in the cash flow
Provision for impairment of goodwill and intangible assets with
conversion model, such as the discount rate and the perpetual
indefinite useful lives is considered as the key audit matter due to the
growth rate. The assessment is based our understanding of the
significant amount and management judgement involved in
Company’s businesses and the industry.
calculation.
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(II) Provision for impairment of inventory
Relevant disclosures are included in Note VII.8 Inventory to the
financial statements.
