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Haier Smart Home publishes Half-Year Results: strong Revenue and Three-Digit Profit Growth with outstanding Premium and Overseas Performance - Seite 2

Casarte: from double-digit growth to doubling revenue. Five-year high level of market share in air conditioners

Haier's premium brand Casarte consolidated leadership in the high-end market, supported by scenario transformation. Compared with the high growth rate of 35% in 4Q20, Casarte's revenue almost doubled at 74.4% YoY growth with market share expansion. According to reports from China Market Monitor, the market share of Casarte in refrigerators priced above RMB10,000 reached 37.9%, in front loading washing machines priced above RMB10,000 reached 78%, and its market share in air conditioners priced above RMB10,000 reached 31.2%.

At the same time, Haier Smart Home's premium air conditioner business continued to rank first, achieving the highest market share in 5 years. In the first half, air condition revenue grew 31.7% leveraging on addition of 3,500 new sales outlets, experience upgrade, product premiumization and scenario transformation. In the premium market, Casarte air conditioner is committed to provide'eco-breathing and hassle-free'experience, achieving a year-on-year revenue increase of 124.6%. According to China Market Monitor's 34^th weekly report, Haier's air conditioner market share reached 32.8%, ranking first in the industry. Haier's air conditioner market share has grown for five consecutive years from 10.5% in 2016 to record level of 18.3% in 2021.

In addition, Haier Smart Home's kitchen appliance business has achieved rapid growth through deployment in premium market and ecological transformation of scenarios. The Company reported 40.8% YoY growth in its kitchen appliance business, with 164.5% growth of Casarte kitchen appliance supported by C6 Galaxy series launched in the first half this year.

Profitability continues to improve overseas and operating profit increased by 113.4%

Haier Smart Home recorded another quarter of solid growth in revenue and profit despite the raw material inflation, leveraging on its dedication in operating a proprietary brand portfolio and localized operations under Rendanheyi model.

In the first half of 2021, the Company's revenue and operating profit from the overseas market amounted to RMB56.9 billion and RMB3.2 billion respectively, representing an increase of 23.4% and 113.4% as compared to the corresponding period in 2020. Operating profit margin was 5.7%, representing an increase of 2.4 pct as compared to the corresponding period in 2020. Profitability continues to improve, surpassing average OEM business in the industry.