Haier Smart Home (HAIER SMARTHOME) published its unaudited first-quarter 2026 results, revealing revenue of RMB 73.69 billion, down 6.86 % year on year (YoY). Net profit attributable to shareholders fell 15.22 % to RMB 4.65 billion, weighed mainly by severe weather and tariff pressures in North America. Total profit dropped 16.37 % to RMB 5.72 billion, while net profit after non-recurring items slid 17.20 % to RMB 4.44 billion.
Operating performance • Chinese market: Industry retail sales (ex-3C) contracted 6.2 %, yet Haier maintained YoY operating-profit growth through its unified warehouse TC retail model (TC order mix up 8 ppts to 65 %), multi-brand suite upgrades and early benefits from large HVAC integration. • North America: Industry demand sank c.10 % (AHAM). Weather-related disruption and higher tariffs compressed margins and volumes, offsetting gains from new high-end refrigeration launches and double-digit growth in air and water products. • Europe: Transformation continued to pay off; refrigerator market share in the five major economies rose 1.3 ppts and washing machines 0.2 ppts. HVAC revenue advanced >20 % and commercial refrigeration >15 %. • South & Southeast Asia: Revenues grew 17 % and 12 %, respectively, driven by localisation, network expansion and premium product introductions.
Profitability and costs Gross margin narrowed marginally by 0.1 ppt YoY to 25.3 %. Domestic margin improved on cost optimisation and hedging, but tariffs and raw-material inflation pressured overseas margins. • Selling-expense ratio improved 1.0 ppt to 8.6 % on logistics and digital-marketing efficiencies. • Administrative-expense ratio increased 0.8 ppt to 4.0 % due to strategic spending on AI platforms and HVAC capabilities. • R&D ratio stayed at 4.2 %, reflecting continued investment in smart-home innovation. • Financial-expense ratio rose to 1.0 % (+1.3 ppts) on RMB appreciation–driven FX losses.
Cash flow and balance sheet Operating cash inflow contracted 29.46 % to RMB 1.61 billion, mirroring lower sales. Investing activities consumed RMB 5.06 billion, while financing activities generated RMB 7.04 billion, aided by increased external capital inflows. End-March cash and equivalents stood at RMB 49.50 billion.
Capital structure and liquidity Total assets reached RMB 300.58 billion (+1.62 % versus end-2025); equity attributable to shareholders climbed to RMB 125.19 billion (+5.47 %). The asset-liability ratio declined 2.2 ppts to 55.2 %. Trade receivable days improved by 1.6 days to 42.0, while inventory days lengthened to 78.3 (+4.2 days) due to strategic stock-building ahead of raw-material price rises and North-American weather disruptions.
Capital expenditure & other commitments First-quarter capex totalled RMB 2.25 billion (45 % China, 55 % overseas) for plant, digitalisation and ecosystem projects. Outstanding external guarantees were RMB 7.00 billion (5.6 % of net assets), with foreign-exchange derivatives totalling USD 2.01 billion and entrusted wealth-management balance at RMB 4.66 billion. The board has authorised an A-share buyback of up to RMB 6 billion; 15.35 million shares (0.16 % of capital) had been repurchased by 31 March for RMB 334.01 million at up to RMB 22.40 per share.
Earnings per share dipped to RMB 0.50 (basic and diluted) from RMB 0.59 a year earlier, while weighted ROE eased to 3.86 % (-0.91 ppt YoY).
Management outlook The company underscored its commitment to user-centric innovation, AI-driven efficiency and deeper global market penetration. Excluding the North-American segment, first-quarter operating profit grew more than 10 %, supporting management’s view of “strong operational resilience” and laying the groundwork for long-term sustainable growth.
Comments