DGAP-News

Haier Smart Home publishes Third Quarter Report: Results far beyond Expectations

DGAP-News: Haier Smart Home Co.,Ltd. / Key word(s): Quarterly / Interim Statement/Quarter Results Haier Smart Home publishes Third Quarter Report: Results far beyond Expectations 30.10.2020 / 08:00 The issuer is solely responsible for the content of this announcement. Haier Smart Home publishes Third Quarter Report: Results far beyond Expectations

- Profit increased by 38% in third quarter

- Operating Revenue and Profit outperformed its Peers

- Significant increase in growth of overseas market

Qingdao / Shanghai / Frankfurt, 30 October 2020 - Haier Smart Home Co., Ltd. (D-Share ISIN CNE1000031C1, A-Share ISIN CNE000000CG9, "Haier Smart Home" or the "Company") one of the listed subsidiaries of Haier Group, published its third quarter report for fiscal 2020 on 29 October 2020. In the first three quarters of 2020, the Company achieved a revenue of RMB 154.4 billion and a net profit attributable to owners of the Parent Company of RMB 6.3 billion. The net profit attributable to owners of the Parent Company after deduction of non-recurring profit or loss amounted to RMB 4.1 billion.

In particular, the performance in the third quarter was outstanding. The revenue of the Company amounted to RMB 58.7 billion, representing an increase of 17% YoY; the net profit attributable to owners of the Parent Company increased by 38% to RMB 3.5 billion compared to the third quarter of last year. Furthermore, net profit attributable to owners of the Parent Company after deduction of non-recurring profit or loss amounted to RMB 1.5 billion. This was an increase of 43% YoY.

The Company experienced a heterogeneous development throughout the first three quarters of 2020. Due to coronavirus pandemic, the growth rate slowed down in the first quarter. On the other side, the rapid adjustment of the corporate strategy in the second quarter ushered in a turning point of the business results. The fast recovery in the second quarter accelerated significantly in the third quarter. As a result, Haier Smart Home showed a much higher growth in sales than the industry on average. At the same time, both profit growth and earning quality far exceeded the market expectations.