incredible! Haier Zhijia’s Q3 revenue and profits increased against the trend, and overseas profits exploded
On October 29th, Haier Group’s Haier Smart Home (600690.SH/690D) released the 2020 third quarter report. The report shows that in the first three quarters of 2020, the company achieved revenue of 154.4 billion yuan, net profit of 6.3 billion yuan to the parent, and 4.1 billion yuan of net profit to the parent after deduction. Among them, the performance in the third quarter was eye-catching, with revenue of 58.7 billion yuan in a single quarter, a year-on-year increase of 17%; net profit attributable to the parent was 3.5 billion yuan, a year-on-year increase of 38%; net profit attributable to the parent after deduction was 1.5 billion yuan, a year-on-year increase of 43%.
Throughout the first three quarters of 2020, the company’s growth rate in the first quarter affected by the epidemic declined, but the rapid adjustment of strategy in the second quarter ushered in an inflection point, and the third quarter results broke out, and the company’s revenue growth outperformed Industry, the profit growth rate is strong, the profit quality is high, far exceeding market expectations.
Building a retail operation system in the domestic market to improve efficiency and reduce costs in an all-round way
In the domestic market, the company focuses on the construction of a retail system that efficiently reaches users. The four reconstructions of ”, process, organization, and mechanism” are used to organize and improve efficiency, and further digital transformation will be carried out through “products, marketing, services, logistics, customers, and users” to improve operational efficiency.
In the third quarter, the company’s domestic revenue increased by 16.3%, and the sales expense ratio was optimized by 1.4%. The cumulative offline and online retail sales share of refrigerators, washing machines, household air conditioners, water heaters and kitchen appliances has achieved overall growth and continued to expand its leading edge. Among them, the cumulative online and offline retail sales share of refrigerators were 35.1%and 38.9%, an increase of 1.3 percentage points and 2.3 percentage points; the cumulative online and offline retail sales share of washing machines were 39.4%and 39.9%, an increase of 4.6 points. Percentage points, 3.8 percentage points, the ice washing leader position is stable.
It is worth noting that the company has adjusted its air-conditioning business development strategy. It has greatly boosted the performance of the air-conditioning business by focusing on the improvement of the whole-process operation capability and the market-side channel reform. The report shows that household air-conditioning revenue increased 27%in the single quarter of Q3 2020. From January to September 2020, the cumulative online and offline retail sales share of air conditioners will be 11.2%and 14.5%respectively, an increase of 2.5 percentage points and 2.3 percentage points. Among them, the share of Cassard increased from 1.2%to 3.7%, doubling the share. The high-end brand Casarte continues to grow at a high rate. Casarte’s revenue has increased by more than 20%, and various categories continue to lead the high-end market.
Overseas market ushered in explosive growth, operating profit increased by 58%
In overseas markets, the Rendanheyi mechanism ensures that small and micro businesses in each region are challenged by the epidemic Under the rapid response, relying on the global procurement, supply chain, and R&D platform to give full play to the advantages of global resource layout to overcome the adverse effects of the external environment and achieve sustainable business development.
The report shows that the company’s overseas revenue increased by 17.5%in the third quarter, and operating profit increased by 58%. Overseas independent brand creation achieved full leadership of high-end brands. The three major industries of refrigeration, washing and air entered more than 20 countries. TOP3 ranks, expanding the leading advantage in all directions. Facing the severe epidemic challenge overseas, Haier Smart Home global factories insisted on normalizing epidemic prevention and resumption of production at the same time to overcome the shortage of parts , Labor shortage and other risks, and spare no effort to guarantee order demand.
At the same time, the company leverages the localization advantages of the “three-in-one” of R&D, intelligent manufacturing, and marketing to accelerate the upgrade of offline contacts, increase online channel expansion and exploration of new online sales models, and deepen the experience of Yunzhong Broadcasting mode, realize the transformation from product premium to experience premium, and enhance performance and brand voice. For example, in the European market, the company entered the TOP3 e-commerce channels in various countries; in the Australian market, the company entered the five major online channel brand areas, and online sales doubled.
Scene brand Triwing Bird”fly” into the country, leading the new track of industry growth
In order to adapt to the consumption trend of scene experience, Haier Smart Home has been exploring the transformation from”selling products” to”selling scenes”, achieving differentiated competition while striving to improve user experience and Industry development has brought a new dimension. In September of this year, the company launched the world’s first scene brand-Triwing Bird, working with the ecological side to promote the home Internet of things into thousands of households, not only can provide users with balcony, kitchen, living room, bathroom, bedroom, whole house air And other smart home full-scenario solutions, it also innovatively opened up full-scenario upgrade services for whole-house renovation and bureau reform.
Currently, Haier Smart Home has formed a”Global Leading Explosive Scenario Plan” and”Landing Guarantee 1 Three core capabilities, including +N capabilities” and”the only experience cloud platform in the industry”. The financial report shows that in the first three quarters, the company sold 687,000 sets of scenario plans, a year-on-year increase of 24.5%. Relying on smart scenarios, the ecological income brought to the company continued to grow. In the third quarter, ecological income reached 3.4 billion yuan, a year-on-year increase of 138%. At the same time, the company has covered more than 30,000 contact networks, 6,000 service butlers and 9,000 resource parties so far to ensure user experience. On the experience cloud platform, the network device binding volume from January to September increased by 116%year-on-year, while the daily activity of Zhijia APP increased by 225%year-on-year in September.
is to promote and popularize the company’s full-scene solutions and upgrade services faster and better. On the one hand, the company has deployed Zhijia experience stores in various cities around the world and China. Up to now, the company has 260+Haier Smart Home 001 stores, and there will be 1,000 Smart Homes to experience by the end of the year The store has been transformed and completed one after another, and it has the ability to take over.
On the other hand, the company is continuing to promote the privatization of Haier Electric. On July 31, Haier Smart Home officially released the privatization plan; on September 1, Haier Zhijia shareholders meeting passed the privatization proposal with high votes; September 10, formally submitted the H-share listing application to the Hong Kong Stock Exchange and listed on the Hong Kong Stock Exchange The listing application version data collection is published on the website. A series of actions show that the company is continuing to promote the privatization process, and the privatization transaction is expected to achieve the improvement and improvement of the home appliance business sector of Haier Smart Home The improvement is in line with the development of home appliance and home integration, integration, and intelligence in the Internet of Things era, and is conducive to the overall acceleration of Haier Smart Home Leading the landing from product brand to scene brand.
Facing the development environment where the domestic big cycle is the mainstay and the domestic and international double cycles are supplemented, Haier Smart HomeRelying on the wisdom home experienceCloud Express to realize the transformation and efficiency of the global market, while relying on the scene brand Triwing Bird to open up a new track, through The full implementation of smart homes provides a powerful answer with performance.