Shulou(Shulou.com)11/24 Report--

On October 30, Haier Zhijia released its third quarterly report for 2023. According to the financial report, Haier Zhijia's revenue in the first three quarters was 198.657 billion yuan, an increase of 7.5 percent over the same period last year, while its net profit was 13.149 billion yuan, an increase of 12.7 percent over the same period last year.

In this financial report, Haier Zhijia's profit growth rate once again exceeded the revenue growth rate, and the performance was eye-catching. When we look back at the seven financial reports in the past two years, we will find such a rule: Haier Zhijia's profit growth exceeds revenue growth each time, and maintains double-digit high growth. this is also the only one in the home appliance industry to achieve high growth on the basis of a high base.

So what did Haier Zhijia do right behind high-quality growth?

01 two-wheel drive at home and abroad to build a "power source" for growth

The high-quality development of Haier Zhijia is largely due to the fact that under the guidance of the three-tier brand strategy, domestic retail transformation and overseas high-end brand creation continue to open up new growth space.

In China, Haier Zhijia insists on the retail transformation, realizing the change from the thinking of selling products to selling scenes and selling ecology. This is a complete upgrade of corporate thinking.

First of all, Haier Zhijia gave full play to the advantages of the scene, grasped the growth opportunities of the smart home market, and achieved a sustained net increase in its share. According to the data of Yikang in GfK, Haier Zhijia's market share rose to 28.2% in the first three quarters, ranking first in the industry. Behind the net increase in overall share is the continued net increase in the share of various industries. Financial results show that Haier Zhijia refrigerator, washing machine market share on the basis of the first, continue to increase significantly. Among them, the share of refrigerators continued to increase to 45.4%, the first degree of 4.1, and the share of washing machines continued to increase to 47.6%, the first degree of 2.3. The share of water heater in JD.com, Tmall, Douyin, SUNING, Wuxing, Alliance and other channels is TOP1, and the growth rate of each channel is far higher than that of the industry. At the same time, Haier air conditioners achieved a sustained growth in the share of high-end air conditioners, with 4000 + on-hook and 10000 + on cabinets reaching 26.2%. On the basis of winning three firsts in the field of efficient HVAC, smart buildings have also opened up new growth points such as building intelligent control, heat pump heating, industrial environment and so on. In addition, the share of kitchen electricity continues to reverse growth, stable in the industry offline TOP3.

Second, Casati insists on doing high-end and retail transformation with remarkable results. Through retail transformation, Casati moves into the top ShoppingMall in first-and second-tier cities, while continuously arranging product franchise stores, complete stores and other contacts to facilitate users who are decorating or have home renovation plans to match their homes and home appliances in one stop, truly achieving "where there are users, there is Casati", ensuring its absolute leading position in the high-end home appliance market. According to data from Yikang in GfK, the Casati brand ranks first in the high-end market in many categories, with 40.3% retail sales of refrigerators over 10000 yuan, 83.5% of washing machines over 10,000 yuan, and 28.5% of air-conditioning sales over 15000 yuan. Among them, the share of Casati refrigerators and washing machines increased by 1.7 percentage points and 4.1 percentage points respectively compared with the same period last year.

More importantly, the scenario to drive sales, but also opened up a new growth track for Haier Zhijia. According to the latest results of the three-winged bird's third anniversary launch on September 26, the three-winged bird has customized smart living programs for more than 340000 Chinese families and expanded more than 2900 stores. The development of offline stores has brought good commercial returns for the three-winged bird. According to the financial report, the trading volume of the three-winged bird scene reached 4 billion in the first three quarters.

In addition to the retail transformation in the domestic market, Haier Zhijia insists on creating high-end brands overseas, bringing it more business increments.

From a sub-regional point of view, in the European market, Haier Zhijia continues to promote high-end brand transformation, Haier brand price index reached 115. At the same time, Haier brand listed new embedded high-end series design products, achieving a 35% increase in revenue; in the Australian market, New Zealand's dual-brand share increased by 5 percentage points, and Australia's dual-brand high-end T-door refrigerator retail channel sales share increased by 4 percentage points.

In the long run, Haier Zhijia's two-line drive at home and abroad not only gives Haier Zhijia the opportunity to "take advantage of the wind", but also has the strength and courage to resist the wind in the face of environmental changes.

02 the value of digital transformation appears, and the rate is optimized year after year.

If the smooth progress of domestic and foreign business has built a new growth momentum for Haier Zhijia, then the significance of digitization is to further improve the company's profitability through internal efficiency optimization. Throughout the development of Haier Zhijia, digital transformation can be said to be the key point for the company to move towards high-quality growth. In the first three quarters of this year, Haier Zhijia continued to deepen the digital reform, accelerating the transformation from "enterprise digitization" to "digital enterprise" through four reconstructions of goal, organization, mechanism and process.

Looking back at Haier Zhijia's seven financial reports in the past two years, its rates are always optimizing: 0.7% for 2022Q1, 0.9% for 2022H1, 0.8% for the first three quarters of 2022, 0.5% for 2022, 0.5% for 2023Q1, 0.3% for 2023H1, and 0.3% for the first three quarters of 2023. It is not difficult to find that with the deepening of digital transformation, the downward trend of expense rate will continue.

03 the "long-term doctrine" behind the growth of Haier Zhijia

Just as Rome was not built in a day, it took Haier Zhijia decades of growth to gain its status as a world brand.

Standing at the historical point of Haier Zhijia's A-share listing for 30 years, looking back, it is not difficult to find that Haier Zhijia is often able to grasp the changes of the times, from the earliest Haichuang brand to the later layout of high-end brands and smart families. Haier Zhijia is all substantially ahead of the industry. Today, these "sowing" have bloomed into bright "flowers" in the performance.

Although these layouts have large early investment and high time cost, Haier Zhijia is able to invest unswervingly, which is due to its long-term adherence to value. Over the past 30 years since its listing, Haier Zhijia has focused on the needs of users, from the continuous leadership of products to the continuous leadership of intelligent scenes. Continuous innovation to create value for users and bring a better life experience.

The growing performance has also brought a return on investment for shareholders. Public data show that over the past 30 years since listing, Haier Zhijia's income has grown at an average annual rate of 21.8%, and its net profit has grown at an average annual rate of 20.3%. So far, it has accumulated 29.687 billion yuan in dividends, with an average annual dividend rate of 32%.

While Haier Zhijia has achieved commercial success, it does not forget the back-feeding of social value and employee value.

In terms of social value, Haier Zhijia actively practices the concept of ESG. Among them, in terms of green development, Haier Zhijia has built the industry's first recycling interconnection factory around product life cycle carbon reduction, such as recycling. In terms of social welfare, Haier Zhijia has the largest number of enterprises assisting in the construction of Hope Primary School in the Central Hope Project of the Communist Youth League, donating materials and cash to local public welfare organizations and charitable activities in Britain, Italy, Indonesia and other countries. At the same time, Haier Zhijia itself provides 100000 + jobs and drives more than 1 million jobs in related industries.

In terms of employee value, Haier Zhijia pays special attention to the training of employees. Since its establishment, the number of employees of Haier Zhijia has grown from 1568 at the beginning to over 100000 today. What is more commendable is that on the platform of Haier Zhijia, every employee can get full experience and growth to maximize personal value. From 2007 to 2023, 243 employees of Haier Zhijia manufacturing system alone won municipal honors, 27 employees won provincial honors and 7 employees won national honors.

To some extent, the above value resonance is precisely the core reason why Haier Zhijia can develop by leaps and bounds. Returning to the perspective of investors, one of the revelations is that what is more important than chasing the industrial logic of tenfold shares is the capture and perspective of a company's ability to resist entropy increase in a long period.

And this also reveals the future of Haier Zhijia: take value resonance as the underlying logic, through the business end of digital, intelligent, global transformation as the starting point, so that Haier Zhijia this towering tree continues to grow upward.

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