Haier Smart Home : 2021 Interim Report

2021 Interim Report

Haier Smart Home Co., Ltd

Company Code: 600690.SH, 690D.DE

Short Name: Haier Smart Home

Haier Smart Home Co., Ltd.

2021 Interim Report

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2021 Interim Report

Haier Smart Home Co., Ltd

Important Notice

1. The Board of Directors, the Board of Supervisors, directors, supervisors and senior management of Haier Smart Home Co., Ltd. (the "Company") are individually and

collectively responsible for the content set out therein and hereby assure that the content set out in the interim report is true, accurate and complete, and free from any false record, misleading representation or material omission.

1. All directors attend the Board of Directors.
   III. The interim report is unaudited.
   IV. Liang Haishan (legal representative of the Company), Gong Wei (chief financial officer of the Company) and Ying Ke (the person in charge of accounting department) hereby certify that the financial report set out in the interim report is true, accurate and complete.

1. Proposal of profit distribution or proposal of converting capital reserves into share capital for this reporting period resolved and passed by the Board

Not Applicable

VI. Disclaimer in respect of forward-looking statements

√Applicable ◻Not Applicable

Forward-looking statements such as future plans, development strategies as set out in this report do not constitute our substantial commitment to investors. Investors are advised to pay attention to investment risks.

VII. Is there any fund occupation by controlling shareholders and their related parties for non- operational purposes

No

VIII. Is there any provision of external guarantee in violation of prescribed decision-making procedures?

No

IX. Are there more than half of the Directors could not warrant the truthfulness, accuracy and completeness of the interim report disclosed by the Company

No

X. Important risk warnings

For the possible risks which the Company may encounter, please refer to the relevant information set out in the section of "DISCUSSION AND ANALYSIS ON OPERATIONS" in this report.

XI. Others

• Applicable √Not Applicable

Haier Smart Home Co., Ltd.

Chairman of the Board: Liang Haishan

30 August 2021

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2021 Interim Report

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Contents

SECTION I - DEFINITIONS	4
SECTION II - GENERAL INFORMATION OF THE COMPANY	6
AND KEY FINANCIAL INDICATORS
SECTION III - MANAGEMENT DISCUSSION AND ANALYSIS	11
SECTION IV - CORPORATE GOVERNANCE	37
SECTION V - ENVIRONMENTAL AND SOCIAL	41
RESPONSIBILITIES
SECTION VI - SIGNIFICANT ISSUES	48
SECTION VII - CHANGES IN SHARES AND INFORMATION	66
ABOUT SHAREHOLDERS
SECTION VIII - RELEVANT INFORMATION OF PREFERRED	76
SHARES
SECTION IX - RELEVANT INFORMATION OF BONDS	77
SECTION X - RESPONIBILITY STATEMENT	84
SECTION XI - FINANCIAL REPORT	85
	I. 2021 Interim Report of Haier Smart Home Co., Ltd. with signature of the
Documents	legal representative.
II. Financial statements with signatures or seals of the person in charge of the
Available for	entity, chief accountant and person in charge of accounting department.
Inspection	III. All documents publicly disclosed on China Securities Journal, Shanghai
	Securities News, Securities Daily, Securities Times and the website of
	Shanghai Stock Exchange (www.sse.com.cn) during the reporting period.

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2021 Interim Report

Haier Smart Home Co., Ltd

SECTION I DEFINITIONS

Unless otherwise stated in context, the following terms should have the following meanings in this report:

Definition of frequently used terms

CSRC	China Securities Regulatory Commission
SSE	Shanghai Stock Exchange
The Company, Haier Smart Home	Haier Smart Home Co., Ltd, its original name is "Qingdao Haier Co., Ltd.",
	and the original short name is "Qingdao Haier"
Four Major Securities Newspapers	China Securities Journal, Shanghai Securities News, Securities Times,
	Securities Daily
Haier Electrics, 1169	Haier Electronics Group Co., Ltd. (a company originally listed in Hong
	Kong, stock code: 01169.HK), a subsidiary as accounted for in the
	consolidated statement of the Company. Haier Electrics has been privatized
	by way of H shares issuance on 23 December 2020 and became a wholly
	owned subsidiary of the Company since then.
GEA	GE Appliances, household appliances assets and business of General
	Electric Group, have currently been owned by the Company.
FPA	Fisher & Paykel Appliances Holdings Limited (Chinese Name: 斐雪派克)
	was established in 1934 and is known as the national appliance brand of
	New Zealand, the global top-level kitchen appliance brand and the famous
	luxury brand of the world. It has products including ventilator, gas stove,
	oven, dishwasher, microwave oven, built-in freezer, washing machine,
	clothes dryer and etc. Its business covers over 50 countries/regions across
	the world. FPA is wholly-owned subsidiary of the Company.
Candy	Candy Group (Candy S.p.A) is an international professional appliances
	manufacturer from Italy. Since its establishment in 1945, it has been
	committed to enabling the global users to enjoy a higher quality of life
	through innovative technologies and quality services. Candy Group has
	been prestigious in the global market with users all over the world via its
	ten self-owned professional household appliance brands. In January 2019,
	Candy became a wholly-owned subsidiary of the Company.
CMM	China Market Monitor Co., Ltd., as an authoritative market research
	institute in Chinese home appliances area, was established in 1994 and has
	been focusing on research of retail sales in China consumption market ever
	since.
Euromonitor	Euromonitor, established in 1972, is the leading strategic market
	information supplier and has over 40-years of experience in respect of
	publishing market report, commercial reference data and on-line database.
	They create data and analysis on thousands of products and services around
	the world.
All View Cloud	All View Cloud (AVC) is a big data integrated solution provider to the
	smart home field, providing enterprises with big data information services,
	regular data information services and special data services.
IEC	The International Electrotechnical Commission. Founded in 1906, it is the
	world's first organization for the preparation and publication of
	international electrotechnical standardization and is responsible for
	international standardization for electrical engineering and electronic
	engineering. The goals of the commission include: to effectively meet the
	needs of the global market; to ensure that the standards and conformity
	assessment programs are applied globally in a prioritized manner and to the
	greatest extent; to assess and improve the quality of products and services
	involved in its standards; to create conditions for the common use of
	complicated systems; to improve the effectiveness of the industrialization
	process; to improve human health and safety, and to protect the
	environment.
IEEE	The Institute of Electrical and Electronics Engineers, an international
	association of electronic technology and information science engineers, is
	currently the largest non-profit professional technology society in the
	world. It is committed to the development and research of electrical,
	electronic, computer engineering and science-related fields, and has now
	developed into an international academic organization with great influence
	in terms of the fields of space, computer, telecommunications, biomedicine,

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2021 Interim Report

Haier Smart Home Co., Ltd

power and consumer electronics.

Model of RenDanHeYiThe concept of " Achieving win-win via RenDanHeYi " is the guarantee of Haier's sustainable operation and the driving force of the Company featuring a self-motivated and empowering corporate culture. "Ren" is an employee who has the spirit of entrepreneurship and innovation; "Dan" is to create value for users. The " RenDanHeYi " management model encourages employees to create value for users with an entrepreneurial mindset, and to achieve self-value in line with the those of the Company and its shareholders.

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