Haier Smart Home reported first-half 2026 revenue of RMB152.11 billion, down 2.8% year-on-year, as domestic appliance demand softened and U.S. sales weakened. Gross profit slipped 1.3% to RMB40.71 billion, yet the gross margin improved 0.4 percentage point to 26.8% on supply-chain optimisation and product mix upgrades.
Net profit attributable to shareholders fell 14.3% to RMB10.32 billion, primarily due to a RMB0.70 billion foreign-exchange loss versus a RMB0.88 billion gain a year earlier. Basic earnings per share declined to RMB1.12 from RMB1.30.
Segment performance was mixed:
• Smart Home Appliances revenue decreased 6.2% to RMB89.65 billion as China’s replacement cycle and U.S. tariff-driven weakness weighed on refrigerators, washing machines and kitchen products. • Smart HVAC Solutions rose 6.1% to RMB45.36 billion, benefiting from integrated cooling-heating-ventilation offerings and expansion in overseas projects. • Other Business contributed RMB42.34 billion; intra-group eliminations totalled RMB25.24 billion.
Operating metrics:
• Selling & distribution expenses rose to 10.8% of revenue (up 0.7 ppt) amid increased marketing and logistics for the direct-to-consumer model. • Administrative expenses held at 8.0% of revenue. • Adjusted operating profit slipped 3.4% to RMB12.75 billion.
Cash flow and balance sheet:
• Operating cash inflow was RMB9.75 billion (-12.4% YoY). • Cash, cash equivalents and current wealth-management products totalled RMB57.11 billion; interest-bearing borrowings stood at RMB38.32 billion. • Gearing ratio edged up to 34.4% from 33.8% at end-2025. • Capital expenditure reached RMB4.37 billion, focused on factory construction and digital transformation.
The board declared no interim dividend. Share buy-backs continued: 75.79 million A-shares (RMB1.61 billion) and 0.87 million D-shares (EUR1.79 million) were repurchased during the period.
Outlook-wise, management plans to deepen AI-driven product development, accelerate overseas localisation and pursue cost synergies between the newly formed Smart Home Appliances and Smart HVAC divisions in the second half of 2026.