2016-06-22-上交所-青岛海尔2015年年度报告（英文版）_239页_2mb

Qingdao Haier Co., Ltd. 2015 Annual Report Summary

Core Content Overview

Qingdao Haier Co., Ltd. (Stock Code: 600690) is a leading white home appliances company that has undergone strategic transformation and innovation to adapt to the challenges of the Internet era. The report outlines key financial data, business operations, industry trends, and risk warnings for the year 2015.

Main Points and Key Information

I. Company Information and Governance

• Company Name: Qingdao Haier Co., Ltd.
• Legal Representative: Liang Haishan
• Registered Office: Haier Industrial Park, Laoshan District, Qingdao City
• Website: http://www.haier.net/cn/
• Audited Report: Issued by Shandong Hexin Certified Public Accountants (special general partnership), standard and unqualified.
• Profit Distribution Proposal: A cash dividend of RMB2.12 per 10 shares is proposed for the reporting period.
• Director Absences: Peng Jianfeng and Chen Yongzheng were absent from the meeting due to personal affairs, with Wu Changqi and Wu Cheng as proxies, respectively.
• External Guarantees: No external guarantees were provided in violation of prescribed procedures.
• Shareholding and Capital: The Company did not have any fund occupation by controlling shareholders for non-operational purposes.

II. Financial Highlights

• Operating Revenue (2015): RMB89.75 billion, a decrease of 7.41% compared to 2014.
• Net Profits (2015): RMB4.30 billion, a decrease of 19.42% compared to 2014.
• Net Profits After Non-Recurring Items (2015): RMB3.67 billion, a decrease of 15.01% compared to 2014.
• Net Cash Flows from Operating Activities (2015): RMB5.58 billion, a decrease of 17.58% compared to 2014.
• Share Capital (End of 2015): RMB6.12 billion, up by 101.03% from 2014.
• Net Assets (End of 2015): RMB22.69 billion, a decrease of 7.78% from 2014.
• Total Assets (End of 2015): RMB75.96 billion, a decrease of 7.76% from 2014.

III. Financial Indicators

• Basic Earnings Per Share (2015): RMB0.705, a decrease of 24.44% compared to 2014.
• Diluted Earnings Per Share (2015): RMB0.705, a decrease of 24.36% compared to 2014.
• Basic Earnings Per Share After Non-Recurring Items (2015): RMB0.603, a decrease of 20.03% compared to 2014.
• Weighted Average Return on Net Assets (2015): 16.22%, a decrease of 13.12 percentage points from 2014.
• Weighted Average Return on Net Assets After Non-Recurring Items (2015): 13.86%, a decrease of 10.03 percentage points from 2014.

IV. Non-Recurring Profit or Loss Items

• Total Non-Recurring Profit or Loss (2015): RMB625.81 million.
• Key items include:
  • Losses and profits from disposal of non-current assets: RMB13.33 million
  • Government grants (excluding those closely related to normal operations): RMB95.08 million
  • Current net profit of subsidiaries from merger: RMB223.06 million
  • Other non-operating net income and expenses: RMB205.94 million
  • Gain from disposal of long-term equity investment: RMB338.39 million
  • Gain from disposal of financial assets available for sale: RMB54.54 million
  • Profit of remaining equity after re-measurement at fair value: RMB49.20 million
  • Minority shareholders' equity effect: -RMB257.74 million
  • Income tax effect: -RMB95.98 million

V. Fair Value Measured Items

• Forward Foreign Currency Contract: Opening balance RMB103.63 million, closing balance RMB14.36 million, decrease of RMB89.26 million.
• Available-for-Sale Financial Assets: Opening balance RMB1.39 billion, closing balance RMB1.45 billion, increase of RMB59.15 million.
• Total Fair Value Items: Opening balance RMB1.498 billion, closing balance RMB1.468 billion, decrease of RMB30.11 million.
• These items affected the current profit by RMB55.93 million.

VI. Quarterly Financial Performance (2015)

• First Quarter (Jan-Mar):

  • Operating Revenue: RMB24.24 billion
  • Net Profit: RMB1.08 billion
  • Net Profit After Non-Recurring Items: RMB939.29 million
  • Net Cash Flows: RMB1.77 billion

• Second Quarter (Apr-Jun):

  • Operating Revenue: RMB23.04 billion
  • Net Profit: RMB1.65 billion
  • Net Profit After Non-Recurring Items: RMB1.57 billion
  • Net Cash Flows: RMB80.45 million

• Third Quarter (Jul-Sep):

  • Operating Revenue: RMB23.63 billion
  • Net Profit: RMB857.21 million
  • Net Profit After Non-Recurring Items: RMB642.19 million
  • Net Cash Flows: -RMB641.31 million

• Fourth Quarter (Oct-Dec):

  • Operating Revenue: RMB18.83 billion
  • Net Profit: RMB711.55 million
  • Net Profit After Non-Recurring Items: RMB523.08 million
  • Net Cash Flows: RMB4.38 billion

VII. Business Summary

• Qingdao Haier is engaged in the R&D, production, and sales of white home appliances, including refrigerators, washing machines, air conditioners, water heaters, and smart home solutions.
• The company has established the U+ Smart Life platform and smart connected factory ecosystem, aiming to transform into a platform-type enterprise offering integrated smart life solutions.
• The company has managed Fisher & Paykel Appliances (FPA), a global kitchen appliance brand, and integrated GE home appliance business to enhance global competitiveness.
• The company has been focusing on customization, smart manufacturing, and multi-channel strategies to adapt to the changing market environment.

VIII. Industry Situation and Outlook

1. Global White Appliances Market (2015)

• Global market showed a decline trend due to weak economic recovery, financial market fluctuations, and geopolitical risks.
• Refrigerators, washing machines, and air conditioners all recorded year-on-year declines.
• The Americas market was the only region with positive growth, with increases in refrigerators, washing machines, and air conditioners.
• The Asia-Pacific market remained stable, with slight growth in refrigerators and washing machines, and a decline in air conditioners.

2. Domestic White Appliances Market (2015)

• The market experienced weak growth due to high penetration rates, slow economic growth, and a sluggish real estate sector.
• Air Conditioner Market: Extremely depressed due to a relatively cool summer, with retail sales and volume decreasing by 4.8% and 1.1% respectively.
• Refrigerators and Washing Machines: Slight decline in volume, but better sales performance due to product structural upgrades.
• Product Mix Upgrade: Mid-end and high-end products showed rapid growth, driven by consumer demand for quality, design, and brand.
• Smart Home Trends: Growth in artistic, high-efficiency, and intelligent (WIFI) air conditioners, and high-capacity inverter washing machines.
• Water Heater Market: Gas water heaters showed a year-on-year increase of 13.4%.

IX. Industry Outlook (2016 and Beyond)

• The domestic white appliances market is expected to maintain strong potential for structural upgrading in the medium to long term.
• Smart Home Development: Expected to drive new business models and growth opportunities.
• Consumption Shift: Consumers are shifting from material to spiritual needs, increasing demand for personalized and diversified products.
• Customization Era: Large-scale customization is anticipated to raise product added value and improve industrial value.
• Industry Consolidation: Companies lacking innovation and with homogenized products may be eliminated due to increased industry integration.

X. Risk Warnings

• The report notes that forward-looking statements should not be considered as substantial commitments to investors.
• Investors are advised to pay attention to investment risks.
• The Management Discussion and Analysis section contains detailed information on potential risks.

XI. Important Notes

• The company completed the acquisition of Haier Group's overseas white goods assets, resulting in the merger of enterprises under the same control.
• The financial data for 2014 was restated in accordance with business enterprise accounting standards.
• Zhangqiu Haier Electrical Engineering Co., Ltd. and Haier Medical and Laboratory Products Co., Ltd. were excluded from the consolidated financial statements.
• The non-recurring profit or loss items significantly impacted the financial results.

Conclusion

Qingdao Haier Co., Ltd. remains a major player in the global white appliances market, adapting to industry trends through innovation, smart manufacturing, and multi-channel strategies. Despite challenges such as weak economic growth and market saturation, the company is positioned to benefit from long-term structural upgrades and the rise of smart home technologies. The report highlights both the company's performance and its strategic direction for future growth.