Haier Smart Home : 1Q 2026 Earnings Report

About this update from Haier Smart Home Co., Ltd. Class A

Haier Smart Home Co., Ltd. * 海 爾 智 家 股 份 有 限 公 司 (a joint stock company incorporated in the People's Republic of China with limited liability) 2026 FIRST QUARTER REPORT The financial data of the Company for the first quarter of 2026 have been prepared in accordance with the China Accounting Standards for Business Enterprises and are unaudited. Net profit attributable to owners of the parent company and equity attributable to owners of the parent company in the consolidated financial statements are not different from those financial data prepared under the International Financial Reporting Standards. Important Notice The board of directors (the "Board"), directors, and senior management of the Company hereby assure that the content set out in the quarterly report is true, accurate and complete, and free from any false record, misleading representation or material omission, and are individually and collectively responsible for the content set out therein. The legal representative of the Company, chief financial officer of the Company and person in charge of accounting department hereby certify that the financial information set out in the quarterly report is true, accurate and complete. Whether the first quarterly financial statement has been audited or not □Yes √No Key Financial Information Major accounting data and financial indicators Unit and Currency: RMB Items During the Reporting Period For the corresponding period of last year Year-on-year increase/decrease during the Reporting Period (%) Operating revenue 73,686,720,161.13 79,118,173,583.72 -6.86 Total profit 5,720,788,744.93 6,840,333,484.64 -16.37 Net profit attributable to shareholders of the listed Company 4,651,612,980.68 5,486,615,176.18 -15.22 Net profit after deduction of non-recurring profit or loss attributable to shareholders of the listed Company 4,441,374,498.46 5,364,091,335.39 -17.20 Net cash flow from operating activities 1,611,474,493.67 2,284,614,694.47 -29.46 Basic earnings per share (RMB per share) 0.50 0.59 -15.25 Diluted earnings per share (RMB per share) 0.50 0.59 -15.25 Weighted average return on net assets (%) 3.86 4.77 decreased 0.91 percentage point At the end of the Reporting Period At the end of last year Increase/decrease at the end of the Reporting Period compared to the end of last year (%) Total assets 300,575,029,393.47 295,795,068,591.57 1.62 Owner equity attributable to shareholders of the listed Company 125,187,727,232.54 118,698,401,416.58 5.47 Brief analysis of the Company's operating performance during the reporting period: Revenue and Profit In the first quarter of 2026, the Company achieved revenue of RMB 73.687 billion, representing a 6.86% decline compared with the same period in 2025. Net profit attributable to shareholders was RMB 4.652 billion, representing a decrease of 15.22% year-on-year, with sequential improvement compared to the fourth quarter of 2025. Profit performance in the first quarter was temporarily under pressure, primarily due to extreme weather events such as blizzards in the North American market, which caused a decline of approximately 10% in the industry, coupled with a significant year-on-year increase in tariff costs, both of which weighed on the Company's performance in the North American market. Excluding the impact of the North American market, the Company's operating profit 1 in the first quarter grew by over 10%, demonstrating strong operational resilience. During the reporting period, facing challenges such as tariff pressures and weak demand in the China-US markets, the Company remained focused on user value, accelerated the integration of large HVAC operations to unlock synergies, deepened its global market presence to enhance brand premium and market share, and comprehensively advanced AI-enabled initiatives to drive full-process efficiency. These measures strengthened endogenous growth momentum and laid a solid foundation for sustainable long-term development. (I) Performance in the Chinese Market Affected by weakening government subsidy-driven demand and other factors, the industry experienced temporary growth pressure. According to AVC all-channel estimates, retail sales of China's home appliance market (excluding 3C) in the first quarter of 2026 declined 6.2% year-on-year. Amid challenges of industry downturn, the Company achieved year-on-year growth in operating profit through retail model transformation, extreme cost optimization supported by AI, and the integration and synergy of large HVAC initiatives. (1) Deepening the full-scope TC model transformation: The Company promoted unified warehouse TC deployment for VIP, KA, and lower-tier channel customers. In the first quarter, the proportion of TC orders at the whole domain touchpoints reached 65%, an increase of 8 percentage points compared with the end of 2025. The unified warehouse TC model shortens transaction and delivery cycles, reducing customer capital occupancy while continuously improving terminal operation efficiency. It also shortens order response time, enhancing supply chain efficiency, and unified warehousing and installation services optimized user experience, improving on-time delivery and installation rates. (2) The multi-brand suite layout has been fully implemented: Casarte achieves precise coverage of all categories and price ranges through its four major product lines: Collector (藏家), Conductor (指揮家), New Ultra-realm (致境), and Languang (攬光). By unifying its IP and promoting related products, Casarte increases the proportion of bundled purchases, driving balanced development across all categories. In the first quarter of 2026, the retail sales share of the Refinement and Radiance series reached 43%, an increase of 13 percentage points compared to 2025. Casarte refrigerators, drum washing machines, air conditioners, dryers, electric water heaters, gas water heaters, and water purifiers all achieved the number one market share in the high-end market. The Haier brand, adhering to its "smarter technology to better understand living" philosophy, has established five product ranges-Seeker, Yunxi, Mai Lang, Tian Yue and Xiao Hong Hua-in line with its positioning as a mainstream premium brand for the mass market. In particular, the globally first L4 and AI-enabled smart appliance suite, Seeker, represents the industry's technological pinnacle. The retail sales of the Haier brand package accounted for 25% of total sales, up 8 percentage points from 2025. (3) Large HVAC integration effect gradually materializing: Operational efficiency steadily improved. The home air-conditioning segment, through 1 Operating Profit = Revenue − Cost of Revenue − Taxes and Surcharges − Selling/Administrative/R&D Expenses + Credit Impairment Losses + Asset Impairment Losses brand repositioning, focus on best-selling models, and refined operations, achieved revenue growth year-on-year despite a 13.8% decline in industry retail sales. (II) Performance in Overseas Markets In the first quarter of 2026, the Company's overall overseas revenue decreased by 3.2% year-on-year, primarily due to the impact of the North American market. At the same time, by accelerating growth in emerging markets and advancing transformation in the European market, the Company achieved year-on-year growth in both revenue and profit from other overseas markets combined, effectively mitigating the impact of fluctuations in a single region. U.S. Market In the first quarter of 2026, the North American home appliance industry continued to face significant pressure. Amid severe blizzards, geopolitical uncertainties, and persistent weakness in consumer purchasing power and confidence, industry demand declined approximately 10% year-on-year a ccording to data from AHAM (the Association of Home Appliance Manufacturers) . In response, the Company acted swiftly: leveraging localized manufacturing, procurement, and logistics networks to overcome the impact of extreme weather, maintain supply chain stability, and retain its leading position in the U.S. home appliance market. During the reporting period, the Company accelerated innovation and strengthened its high-end product portfolio by leveraging global R&D capabilities and local consumer insights. In refrigeration, the Company launched a new line of side-by-side refrigerators that addresses pain points related to food accessibility, flexible storage, and daily use, thereby strengthening the competitiveness of its side-by-side refrigerators and increasing user attention to differentiated products. The air and water businesses also achieved double-digit growth. Meanwhile, while optimizing the global supply chain layout, the Company continued to improve production efficiency in North America. Key measures included implementing global product cost benchmarking to enhance cost competitiveness and advancing supply chain optimization for the air-conditioning and refrigeration segments. The Company also improved operational efficiency and addressed industry volatility through digital transformation, stringent cost-control measures, and dynamic pricing. These initiatives enhanced business resilience and laid a solid foundation for sustainable revenue and profitability recovery. European Market During the reporting period, transformation efforts in the European market continued to yield results, with the three major segments-white goods, HVAC, and commercial refrigeration-working synergistically to steadily strengthen growth momentum. ① White Goods: The Company adhered to a high-end strategy and accelerated new product launches. The high-end Horizon series refrigerators received positive market feedback, driving continuous product portfolio upgrades. According to GfK statistics, in the five major markets of Germany, France, the U.K., Italy, and Spain, the Company's refrigerator sales share in the first quarter of 2026 increased 1.3 percentage points year-on-year, while washing machine sales share rose 0.2 percentage points year-on-year, outperforming the industry overall. ② HVAC: The Company continued to strengthen the synergetic integration of technology, products, and channels, actively expanding professional and project channels. Business maintained rapid growth, with the first quarter revenue up over 20% year-on-year, establishing HVAC as a key growth engine in the European market. ③ Commercial Refrigeration (CCR): revenue in the first quarter grew more than 15% year-on-year, exceeding the industry average, demonstrating strong growth potential and global synergy capabilities. Emerging Markets: South Asia and Southeast Asia During the reporting period, emerging markets in South Asia and Southeast Asia maintained strong growth momentum, becoming a significant engine for the Company's global expansion. ① South Asia: Focusing on localized product innovation and upgrading terminal retail capabilities, the Company continuously enriched its product lineup to meet local consumer needs. It strengthened terminal retail network construction, enhancing brand reach and conversion efficiency. Revenue in the first quarter grew 17% year-on-year, with simultaneous improvements in profitability and market share, while operational quality continued to optimize. ② Southeast Asia: Leading structural upgrades with high-end products, the Company launched differentiated new products such as the ultra-thin Space Slim series T-door refrigerator and three-tub washing machine. Focus was placed on brand store development, enhancing end-user experience and service systems. Revenue in the first quarter grew 12% year-on-year, sustaining positive growth momentum. Gross Margin In the first quarter of 2026, the Company's gross margin was 25.3%, down 0.1 percentage points year-on-year. In the Chinese market, the Company's implementation of bulk price risk hedging strategies, increased material code standardization, deployment of hit-product platforms, and enhanced in-house supply chain initiatives contributed to year-on-year margin improvement. In overseas markets, the positive impact from the global supply chain layout and extreme cost optimization was offset by high tariffs and rising bulk material prices, resulting in margin pressure and a year-on-year decline. Operating Expenses Ratios The selling expense ratio in the first quarter of 2026 was 8.6%, representing an improvement of 1.0 percentage point year-on-year. In the domestic market, accelerated deployment of the unified warehouse TC model and ongoing digital marketing transformation improved resource allocation and market investment efficiency. Logistics optimization, including warehouse network and delivery route adjustments, further enhanced selling expense efficiency. As for the overseas market, we have promoted end-to-end retail innovation, integrated global resources to enhance operational efficiency and developed four-network capabilities, resulting in a year-on-year improvement of selling expense ratio. The administrative expense ratio in the first quarter of 2026 was 4.0%, representing an increase of 0.8 percentage points year-on-year, primarily due to revenue decline, as well as the Company's investments in building capability such as strengthening its AI platform, deepening To B HVAC solutions, and accelerating the localisation of overseas professional platforms and HVAC operations. The R&D expenses ratio was 4.2% in the first quarter of 2026, which remained basically at the same level year-on-year. R&D expenses focused on hit products, accelerated new product iteration, and strategic project investment to strengthen in-house R&D capabilities and enhance core technologies in the smart home sector. The financial expense ratio in the first quarter of 2026 was 1.0% ("+" as expense, "-" as income), representing an increase of1.3 percentage points year-on-year, mainly due to increased foreign exchange losses from the appreciation of RMB. Working Capital Trade and bill receivable turnover days were 42.0 days in the first quarter of 2026, representing a decrease of 1.6 days as compared to the end of 2025, mainly attributable to accelerated collection efforts. Inventory turnover days were 78.3 days in the first quarter of 2026, representing an increase of 4.2 days from as compared to the end of 2025, mainly attributable to strategic stockpiling in response to rising prices of bulk raw materials and the rare blizzards in North America, which affected product sales and order fulfilment. Trade and bill payable turnover days were 130.5 days in the first quarter of 2026, representing an increase of 4.3 days as compared to the end of 2025, reflecting strategic increases in raw material procurement based on anticipated commodity price trends. Cash Flow Analysis Net cash flow from operating activities in the first quarter of 2026 amounted to RMB1.611 billion, representing a decrease of RMB 0.674 billion year-on-year, which was mainly due to lower sales revenue. Net cash outflow from investing activities in the first quarter of 2026 amounted to RMB5.065 billion, representing a decrease of RMB78 million year-on-year. Net cash inflow from financing activities in the first quarter of 2026 amounted to RMB7.043 billion, representing an increase of RMB5.852 billion year-on-year, mainly attributable to increased cash received from investment absorption during the period. Capital Expenditure The Company assesses its capital expenditure and investments in each segment from time to time. The capital expenditure in the first quarter of 2026 was RMB2.246 billion, of which RMB1.016 billion and RMB1.230 billion were used in China and overseas, respectively, primarily for plant and equipment construction, digital transformation and the development of an ecosystem. Asset-liability Ratio At the end of the first quarter in 2026, the Company's asset-liability ratio was 55.2%, representing a decrease of 2.2 percentage points as compared to the end of 2025, which was mainly due to net profit retention and premium transfers of minority equity in subsidiaries. Non-recurring profit or loss items and amounts Applicable ☐ Not applicable Unit and Currency: RMB Non-recurring profit or loss items Amounts for the current period Profit or loss from disposal of non-current assets, including write-off of provision for impairment of assets 6,537,038.17 Government grants included in current profit or loss, except that closely related to the normal business operation, complied with requirements of the national policies, enjoyed in accordance with determined standards and have a continuous impact on the Company's profit or loss 87,498,313.87 Profit or loss from the change in fair value of financial assets and financial liabilities held by non-financial enterprises, and profit or loss arising from the disposal of financial assets and financial liabilities, other than the effective hedging business related to the Company's normal business operations 154,511,575.65 Other non-operating income and expenses other than the above items 5,780,553.96 Less: amount of effect of income tax 36,926,165.38 Amount of effect of minority interests (after tax) 7,162,834.05 Total 210,238,482.22 Reasons shall be given with respect to the Company classifying the items not listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Issuing Their Securities to the Public - Non-recurring Profit or Loss as non-recurring profit or loss items with significant amounts, and classifying the non-recurring profit or loss items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Issuing Their Securities to the Public - Non-recurring Profit or Loss (公開發行證券的公司信息披露解釋性公告第 1 號-非經常 性損益) as recurring profit or loss item. □Applicable √Not Applicable Changes in major accounting data and financial indicators and reasons □Applicable √Not Applicable Particulars of Shareholders Total number of ordinary shareholders and the number of preferential shareholders with restored voting rights and the shareholdings of the top 10 shareholders Unit: share Total number of ordinary shareholders as of the end of the Reporting Period 235,932 Total number of preferential shareholders with restored voting rights as of the end of the Reporting Period (if any) N/A Shareholdings of the top 10 shareholders (excluding shares lent through refinancing) Number of Pledged, marked or Name of shareholders Nature of shareholders Number of shares held Percentage of shareholdings (%) shares held subject to trading frozen Status Number moratorium HKSCC NOMINEES LIMITED Unknown 2,312,625,264 24.66 Nil 2,312,625,264 Haier COSMO Co., Ltd. Domestic non-state- owned legal entity 1,258,684,824 13.42 Nil 1,258,684,824 Haier Group Corporation Domestic non-state-owned legal entity 1,072,610,764 11.44 Nil 1,072,610,764 HCH (HK) INVESTMENT MANAGEMENT CO., LIMITED Foreign legal entity 538,560,000 5.74 Nil 538,560,000 Hong Kong Securities Clearing Company Limited Unknown 333,599,920 3.56 Nil 333,599,920 Qingdao Haier Venture & Investment Information Co., Ltd. Domestic non-state- owned legal entity 172,252,560 1.84 Nil 172,252,560 Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) Domestic non-state-owned legal entity 133,791,058 1.43 Nil 133,791,058 China Securities Finance Corporation Limited Unknown 127,892,278 1.36 Nil 127,892,278 Guofeng Xinghua (Beijing) Private Fund Management Co., Ltd.- Guofeng Xinghua Honghu Zhiyuan No. 1 Private Securities Investment Fund III Unknown 68,683,560 0.73 Nil 68,683,560 National Social Security Fund 113 Portfolio Unknown 66,596,734 0.71 Nil 66,596,734 Shareholdings of the top 10 shareholders not subject to trading moratorium (excluding shares lent through refinancing) Name of shareholders Number of listed shares not subject to trading moratorium held Class and number of shares Class Number HKSCC NOMINEES LIMITED 2,312,625,264 Overseas listed foreign shares 2,312,625,264 Haier COSMO Co., Ltd. 1,258,684,824 RMB ordinary shares 1,258,684,824 Haier Group Corporation 1,072,610,764 RMB ordinary shares 1,072,610,764 HCH (HK) INVESTMENT MANAGEMENT CO., LIMITED 538,560,000 Overseas listed foreign shares 538,560,000 Hong Kong Securities Clearing Company Limited 333,599,920 RMB ordinary shares 333,599,920 Qingdao Haier Venture & Investment Information Co., Ltd. 172,252,560 RMB ordinary shares 172,252,560 Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) 133,791,058 RMB ordinary shares 133,791,058 China Securities Finance Corporation Limited 127,892,278 RMB ordinary shares 127,892,278 Guofeng Xinghua (Beijing) Private Fund Management Co., Ltd.- Guofeng Xinghua Honghu Zhiyuan No. 1 Private Securities Investment Fund III 68,683,560 RMB ordinary shares 68,683,560 National Social Security Fund 113 Portfolio 66,596,734 RMB ordinary shares 66,596,734 Explanation of associations or actions in concert among the above shareholders Haier COSMO Co., Ltd. is a holding subsidiary of Haier Group Corporation. Haier Group Corporation holds 51.20% of its equity. Each of Qingdao Haier Venture & Investment Information Co., Ltd., HCH (HK) INVESTMENT MANAGEMENT CO., LIMITED and Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership) is a party acting in concert with Haier Group Corporation; The Company is not aware of the existence of any associations of other shareholders. Explanation of the top 10 shareholders and the top 10 shareholders not subject to trading moratorium engaging in the margin trading and short selling and refinancing business (if any) Nil Note: (1) HKSCC NOMINEES LIMITED is the collective nominee account for the shareholders of H shares of the Company, which is the original data provided by China Hong Kong securities registration agency to the Company after consolidation of figures according to local market practices and technical settings, not representing the ultimate shareholder; (2)As of the end of the reporting period, the Company's repurchase account held a total of 90,757,084 shares (including A shares and D shares). Share lending by shareholders holding more than 5% of the shares, top 10 shareholders and top 10 shareholders not subject to trading moratorium engaging in the refinancing business Applicable √ Not applicable The top 10 shareholders and top 10 shareholders not subject to trading moratorium have changed from the previous period due to lending/returning through refinancing Applicable √ Not applicable Miscellaneous Other significant information regarding the Company's operations during the Reporting Period should be brought to the attention of investors √ Applicable □Not Applicable External guarantees: As at the end of the Reporting Period, the external guarantees provided by the Company and its subsidiaries were guarantees between the Company and its subsidiaries, the total balance of which amounted to RMB6.998 billion, accounting for 5.6% of the Company's latest net assets. Foreign exchange derivative: As at the end of the Reporting Period, the aggregate balance of the Company's foreign exchange derivative transaction amounted to approximately US$2.013 billion. Entrusted wealth management: As at the end of the Reporting Period, the balance of the Company's entrusted wealth management amounted to RMB4.660 billion, including two parts: ①Temporary-idle funds wealth management by certain subsidiaries of the Company: Under the premise of ensuring sufficient capital for the principal operating activities and daily operations, some subsidiaries of the Company purchased some short-term principal-guaranteed wealth management products and structured deposits from major commercial banks to improve the yield of temporarily-idle funds and the return for shareholders within the authority of the general manager's office meeting and under the condition of ensuring fund safety. As at the end of the Reporting Period, the balance of the entrusted wealth management amounted to RMB4.610 billion; ②Idle funds in the asset management account of the Employee Stock Ownership Plans: the asset management institution purchased cash products such as money funds according to the liquidity of the products with some idle funds in the asset management accounts of the Employee Stock Ownership Plans of the Company. The balance of cash products amounted to RMB50 million. Repurchase of A Shares: On 26 March 2026, the Company convened the 4th meeting of the 12th session of the Board, which considered and approved the Repurchase Plan of A-shares Through Centralised Bidding Transactions of Haier Smart Home Co., Ltd., pursuant to which the Company is allowed to repurchase its A Shares by way of centralised bidding using the Company's own funds and/or self-raised funds(including special loans for share repurchase, etc.). The total repurchase amount shall not exceed RMB6 billion (inclusive) and shall not be less than RMB3 billion (inclusive), with upper limit of repurchase price of RMB35/share, the implementation period for this repurchase shall be within 12 months from the date on which the Board approved the share repurchase plan. As at the end of the Reporting Period, the Company repurchased a total of 15,350,000 A shares, accounting for 0.16% of the Company's total share capital. The highest repurchase price was RMB22.40/share and the lowest was RMB21.43/share. The total amount paid was RMB334,007,465.88. Quarterly Financial Statements Type of Audit Opinion □Applicable √Not Applicable Financial Statements CONSOLIDATED BALANCE SHEET 31 March 2026 Prepared by: Haier Smart Home Co., Ltd. Unit and Currency: RMB Type of Audit: Unaudited Items 31 March 2026 31 December 2025 Current assets: Cash at bank and on hand 50,580,305,356.36 47,621,657,441.30 Provision of settlement fund Funds lent Financial assets held for trading 5,083,959,790.76 2,034,270,761.53 Derivative financial assets 233,219,025.41 80,641,860.30 Bills receivable 7,079,589,072.29 6,482,353,046.34 Accounts receivable 27,753,016,434.94 27,065,839,108.45 Financing receivables 851,980,136.01 1,787,975,081.92 Prepayments 2,901,943,768.66 2,846,387,274.70 Premiums receivable Reinsurance accounts receivable Reinsurance contract reserves receivable Other receivables 3,444,674,518.21 3,096,465,068.39 Including: Interest receivable 339,121,811.14 342,158,094.18 Dividend receivable 163,577.03 Financial assets purchased under resale agreements Inventories 46,577,517,719.22 46,848,790,687.12 Including: Data resources Contract assets 1,082,267,848.11 1,007,695,591.67 Assets held for sale Non-current assets due in one year 11,011,211,371.11 8,666,892,203.60 Other current assets 4,985,596,609.10 5,294,521,861.08 Total current assets 161,585,281,650.18 152,833,489,986.40 Non-current assets: Loans and advances granted Debt investments 14,378,103,160.65 16,383,203,551.26 Other debt investments Long-term receivables 132,023,849.68 134,840,798.60 Long-term equity investments 21,697,254,659.88 21,756,902,299.19 Investments in other equity instruments 5,392,519,832.34 5,405,101,489.33 Other non-current financial assets Investment properties 327,104,908.76 334,429,715.96 Fixed assets 39,377,234,966.94 40,353,013,813.33 Construction in progress 5,902,061,523.78 4,885,331,872.38 Biological assets for production Oil and gas assets Right-of-use assets 5,796,421,210.86 6,024,233,315.08 Intangible assets 13,766,307,460.30 14,224,842,429.14 Including: Data resources Development cost 418,697,977.10 417,653,270.53 Including: Data resources Goodwill 26,770,151,373.44 27,300,229,637.37 Long-term prepaid expenses 724,156,357.73 661,484,963.82 Deferred income tax assets 2,503,101,370.81 2,779,197,579.27 Other non-current assets 1,804,609,091.02 2,301,113,869.91 Total non-current assets 138,989,747,743.29 142,961,578,605.17 Total assets 300,575,029,393.47 295,795,068,591.57 Current liabilities: Short-term borrowings 22,656,623,168.39 17,420,784,420.86 Borrowings from central bank Amounts due to banks and other financial institutions Financial liabilities held for trading Derivative financial liabilities 82,570,190.33 190,868,603.05 Bills payable 24,524,214,558.85 23,870,662,224.10 Accounts payable 53,790,188,053.81 53,544,741,780.87 Receipts in advance Contract liabilities 5,207,550,270.85 8,534,516,748.92 Disposal of repurchased financial assets Absorbing deposit and deposit in inter-bank market Customer deposits for trading in securities Amounts due to issuer for securities underwriting Payables for staff's remuneration 4,038,035,327.77 5,617,781,339.32 Taxes payable 3,543,030,276.24 3,393,123,835.23 Other payables 17,993,799,213.89 19,493,605,624.57 Including: Interest payable Dividend payable 1,373,409.41 54,860,109.41 Fees and commissions payable Reinsurance Accounts payables Liabilities held for sale Non-current liabilities due within one year 5,187,110,259.02 8,678,897,462.98 Other current liabilities 1,206,426,459.93 1,601,301,581.05 Total current liabilities 138,229,547,779.08 142,346,283,620.95 Non-current liabilities: Deposits for insurance contracts Long-term borrowings 11,435,947,704.26 11,165,886,169.09 Bonds payable 3,500,000,000.00 3,500,000,000.00 Including: Preference shares Perpetual bonds Lease liabilities 4,484,237,262.99 4,551,410,567.84 Long-term payables 165,960,035.50 167,862,276.79 Long-term payables for staff's remuneration 2,340,874,436.38 2,443,566,578.23 Estimated liabilities 2,420,802,210.98 2,490,370,063.63 Deferred income 1,453,901,827.47 1,441,477,536.11 Deferred income tax liabilities 1,641,752,116.79 1,631,293,729.71 Other non-current liabilities 108,252,934.88 79,916,734.11 Total non-current liabilities 27,551,728,529.25 27,471,783,655.51 Total liabilities 165,781,276,308.33 169,818,067,276.46 Owners' equity (or shareholders' equity): Paid-in capital (or share capital) 9,377,629,650.00 9,377,629,650.00 Other equity instruments Including: Preference shares Perpetual bonds Capital reserve 24,189,710,756.76 20,366,679,277.75 Less: treasury stock 4,731,580,860.67 4,261,082,044.07 Other comprehensive income -1,113,187,535.40 432,012,498.23 Special reserve Surplus reserve 5,296,602,892.45 5,296,602,892.45 General risk provisions Undistributed profits 92,168,552,329.40 87,486,559,142.22 Total equity attributable to owners (or shareholders) of the Parent Company 125,187,727,232.54 118,698,401,416.58 Minority shareholders' interests 9,606,025,852.60 7,278,599,898.53 Total owners' equity (or shareholders' equity) 134,793,753,085.14 125,977,001,315.11 Total liabilities and owners' equity (or shareholders' equity) 300,575,029,393.47 295,795,068,591.57 Person in charge of the Company: Li Huagang Person in charge of accounting function: Sun Jiacheng Person in charge of accounting department: Ying Ke CONSOLIDATED PROFIT STATEMENT January-March 2026 Prepared by: Haier Smart Home Co., Ltd. Unit and Currency: RMB Type of Audit: Unaudited Items 2026 First Quarter 2025 First Quarter Ⅰ. Total operating revenue 73,686,720,161.13 79,118,173,583.72 Including: Operating revenue 73,686,720,161.13 79,118,173,583.72 Interest income Insurance premiums earned Fee and commission income Ⅱ. Total cost of operations 68,434,812,246.68 72,546,845,620.70 Including: Operating cost 55,011,714,978.05 59,025,209,353.46 Interest expenses Fee and commission expenses Insurance withdrawal payment Net payment from indemnity Net provisions withdrew for insurance liability Insurance policy dividend paid Reinsurance cost Taxes and surcharges 348,056,419.47 348,663,099.15 Selling expenses 6,317,159,208.54 7,610,520,791.43 Administrative expenses 2,914,299,230.25 2,490,570,288.95 R&D expenses 3,108,930,892.84 3,293,452,649.93 Financial expenses 734,651,517.53 -221,570,562.22 Including: Interest expenses 447,969,015.43 723,464,408.49 Interest income 401,872,958.03 454,127,183.65 Add: other income 164,702,471.41 265,906,968.04 Investment income (losses are represented by "-") 436,428,584.73 341,537,924.22 Including: Investment income of associates and joint ventures 339,434,580.98 318,061,530.23 Income generated from the derecognition of financial assets measured at amortised cost Exchange gain (losses are represented by "-") Gains on net exposure hedges (losses are represented by "-") Income from changes in fair value (losses are represented by "-") 79,241,831.65 -529,120.47 Loss on credit impairment (losses are represented by "-") -55,314,043.06 -38,815,258.04 Loss on assets impairment (losses are represented by "-") -168,495,606.38 -237,013,700.06 Gain from disposal of assets (losses are represented by "-") 2,276,975.71 1,862,934.78 Ⅲ. Operating profit (losses are represented by "-") 5,710,748,128.51 6,904,277,711.49 Add: non-operating income 43,855,379.39 41,462,977.64 Less: non-operating expenses 33,814,762.97 105,407,204.49 Ⅳ. Total profit (total losses are represented by "-") 5,720,788,744.93 6,840,333,484.64 Less: income tax expense 913,997,015.03 1,203,106,217.24 Ⅴ. Net profit (net losses are represented by "-") 4,806,791,729.90 5,637,227,267.40 (I) Classification by continuous operation 1. Net profit from continuous operation (net losses are represented by "-") 4,806,791,729.90 5,637,227,267.40 2. Net profit from discontinued operation (net losses are represented by "-") (II) Classification by ownership of the equity 1. Net profit attributable to shareholders of the Parent Company (net losses are represented by "-") 4,651,612,980.68 5,486,615,176.18 2. Profit or loss attributable to minority shareholders (net losses are represented by "-") 155,178,749.22 150,612,091.22 VI. Other comprehensive income, net of tax -1,546,455,972.00 976,547,330.31 (I) Other comprehensive income attributable to shareholders of the Parent Company, net of tax -1,545,200,033.63 974,130,009.07 1. Other comprehensive income that cannot be reclassified into the profit or loss -52,606,704.43 -28,646,247.44 (1) Changes arising from re-measurement of defined benefit plans -45,520,889.34 -895,650.18 (2) Other comprehensive income that cannot be transferred into profit or loss under equity method (3) Changes in fair value of investments in other equity instruments -7,085,815.09 -27,750,597.26 (4) Changes in fair value of credit risks of the enterprise 2. Other comprehensive income to be reclassified into the profit or loss -1,492,593,329.20 1,002,776,256.51 (1) Other comprehensive income that can be transferred into profit or loss under equity method 6,395,215.08 24,556,653.41 (2) Changes in fair value of other debt investments (3) Reclassified financial assets that are credited to other comprehensive income (4) Credit impairment provision for other debt investments (5) Reserve for cash flow hedging 32,668,197.53 6,782,412.50 (6) Exchange differences on translation of financial statements denominated in foreign currencies -1,531,656,741.81 971,437,190.60 (7) Others (II) Other comprehensive income attributable to minority shareholders, net of tax -1,255,938.37 2,417,321.24 Ⅶ. Total comprehensive income 3,260,335,757.90 6,613,774,597.71 (I) Total comprehensive income attributable to the owners of Parent Company 3,106,412,947.05 6,460,745,185.25 (II) Total comprehensive income attributable to the minority shareholders 153,922,810.85 153,029,412.46 Ⅷ. Earnings per share: (I) Basic earnings per share (RMB/share) 0.50 0.59 (II) Diluted earnings per share (RMB/share) 0.50 0.59 For the business combinations under common control in the current period, the net profit of the parties consolidated before consolidation was: RMB0 and the net profit of the parties consolidated in the previous period was: RMB21,397,715.88. Person in charge of the Company: Li Huagang Person in charge of accounting function: Sun Jiacheng Person in charge of accounting department: Ying Ke CONSOLIDATED CASH FLOW STATEMENT January-March 2026 Prepared by: Haier Smart Home Co., Ltd. Unit and Currency: RMB Type of Audit: Unaudited Items 2026 First Quarter 2025 First Quarter I. Cash flow from operating activities: Cash received from the sale of goods and rendering services 79,029,178,811.49 82,003,332,728.94 Net increase in customer and inter-bank deposits Net increase in borrowing from the central bank Net cash increase in borrowing from other financial institutes Cash received from premiums under original insurance contract Net cash received from reinsurance business Net increase in deposits of policy holders and investment Cash received from interest, fee and commissions Net increase in placement from banks and other financial institutions Net increase in cash received from repurchase operation Net cash received from customer deposits for trading in securities Refunds of taxes 898,724,402.38 807,873,993.65 Cash received from other related operating activities 966,821,516.96 768,161,495.26 Sub-total of cash inflows from operating activities 80,894,724,730.83 83,579,368,217.85 Cash paid on purchase of goods and services 56,882,805,669.79 59,902,750,771.26 Net increase in loans and advances of customers Net increase in deposits in the PBOC and inter-bank Cash paid for compensation payments under original insurance contract Net increase in cash lent Cash paid for interest, bank charges and commissions Cash paid for insurance policy dividend Cash paid to and on behalf of employees 10,424,858,310.85 9,622,818,712.58 Cash paid for all types of taxes 4,101,874,940.37 4,367,046,203.63 Cash paid to other operation related activities 7,873,711,316.15 7,402,137,835.91 Sub-total of cash outflows from operating activities 79,283,250,237.16 81,294,753,523.38 Net cash flow from operating activities 1,611,474,493.67 2,284,614,694.47 II. Cash flow from investing activities: Cash received from recovery of investments 12,525,989,092.36 8,168,618,454.03 Cash received from return on investments 446,691,723.19 301,002,093.56 Net cash received from the disposal of fixed assets, intangible assets and other long-term assets 4,013,700.74 2,790,225.50 Net cash received from disposal of subsidiaries and other operating entities Other cash received from investment activities Sub-total of cash inflows from investing activities 12,976,694,516.29 8,472,410,773.09 Cash paid on purchase of fixed assets, intangible assets and other long-term assets 2,246,401,706.14 1,960,795,381.53 Cash paid for investments 15,795,230,026.07 11,504,773,514.70 Net increase in secured loans Net cash paid on acquisition of subsidiaries and other operating entities Other cash paid on investment activities 150,306,450.00 Sub-total of cash outflows from investing activities 18,041,631,732.21 13,615,875,346.23 Net cash flow from investing activities -5,064,937,215.92 -5,143,464,573.14 III. Cash flow from financing activities: Cash received from capital contributions 5,926,786,091.74 41,200,000.00 Including: Cash received from capital contributions by minority shareholders of subsidiaries Cash received from borrowings 10,140,820,228.06 7,087,360,333.75 Cash received from bonds issuance 1,500,000,000.00 Other cash received from financing activities 111,646,384.65 Sub-total of cash inflows from financing activities 16,067,606,319.80 8,740,206,718.40 Cash paid on repayment of debts 7,407,269,419.05 4,877,205,219.99 Cash paid on distribution of dividends, profits or repayment of interest expenses 474,772,688.44 771,190,837.48 Including: Dividend and profit paid to minority shareholders by subsidiaries Other cash paid to financing activities 1,142,894,708.97 1,900,672,608.03 Sub-total of cash outflows from financing activities 9,024,936,816.46 7,549,068,665.50 Net cash flow from financing activities 7,042,669,503.34 1,191,138,052.90 IV. Effect of fluctuations in exchange rates on cash and cash equivalents -351,934,701.96 86,486,684.58 V. Net increase in cash and cash equivalents 3,237,272,079.13 -1,581,225,141.19 Add: balance of cash and cash equivalents at the beginning of the period 46,267,687,864.46 54,994,595,280.18 VI. Balance of cash and cash equivalents at the end of the period 49,504,959,943.59 53,413,370,138.99 Person in charge of the Company: Li Huagang Person in charge of accounting function: Sun Jiacheng Person in charge of accounting department: Ying Ke BALANCE SHEET OF THE PARENT COMPANY 31 March 2026 Prepared by: Haier Smart Home Co., Ltd. Unit and Currency: RMB Type of Audit: Unaudited Items 31 March 2026 31 December 2025 Current Assets: Monetary funds 7,191,348,556.99 6,823,857,021.79 Financial assets held for trading 1,601,098,666.67 Derivative financial assets Bills receivable 85,102.59 Accounts receivable 3,586,166,707.74 3,380,866,320.45 Financing receivables Prepayments 3,200,895.80 Other receivables 91,554,560,063.20 86,288,251,654.38 Including: Interests receivable 6,413,872.26 3,164,444.44 Dividends receivable 5,764,255,305.39 5,764,255,305.39 Inventories 71,574,508.55 8,771,266.45 Including: Data resources Contract assets Assets held for sale Non-current assets due within one year 4,089,968,817.20 1,934,770,698.92 Other current assets 835,050,666.49 1,006,425,692.53 Total current assets 108,932,968,882.64 99,443,027,757.11 Non-current assets: Debt investments 4,609,481,881.72 7,032,941,801.07 Other debt investments Long-term receivables Long-term equity investments 73,571,066,607.75 72,677,530,760.67 Investments in other equity instruments 1,602,333,806.12 1,602,333,806.12 Other non-current financial assets Investment properties Fixed assets 19,265,323.77 20,054,479.76 Construction in progress 323,539.82 4,712,836.53 Biological assets for production Oil and gas assets Right-of-use assets Intangible assets 33,151,409.66 30,071,927.84 Including: Data resources Development cost Including: Data resources Goodwill Long-term prepaid expenses 773,711.59 870,249.60 Deferred income tax assets Other non-current assets 2,170,292,448.68 2,170,292,448.68 Total non-current assets 82,006,688,729.11 83,538,808,310.27 Total assets 190,939,657,611.75 182,981,836,067.38 Current liabilities: Short-term borrowings 2,401,301,111.10 2,001,113,555.55 Financial liabilities held for trading Derivative financial liabilities Bills payable Accounts payable 2,353,955,957.09 2,753,829,826.14 Receipts in advance Contract liabilities 12,672,460.67 12,672,460.67 Payables for staff's remuneration 5,538,887.78 11,844,528.82 Taxes payable 753,568.39 11,647,239.66 Other payables 128,355,254,953.15 119,944,998,021.77 Including: Interests payable Dividends payable Liabilities held for sale Non-current liabilities due within one year 1,162,564,722.23 1,730,066,805.56 Other current liabilities 4,773,218.77 6,034,650.00 Total current liabilities 134,296,814,879.18 126,472,207,088.17 Non-current liabilities: Long-term borrowings 2,803,427,143.55 2,312,000,000.00 Bonds payable 3,500,000,000.00 3,500,000,000.00 Including: Preference shares Perpetual bonds Lease liabilities Long-term payables Long-term payables for staff's remuneration Estimated liabilities Deferred income 15,705,919.40 15,705,919.40 Deferred income tax liabilities 393,898,743.39 393,898,743.39 Other non-current liabilities Total non-current liabilities 6,713,031,806.34 6,221,604,662.79 Total liabilities 141,009,846,685.52 132,693,811,750.96 Owners' equity (or shareholders' equity): Paid-in capital (or share capital) 9,377,629,650.00 9,377,629,650.00 Other equity instruments Including: Preference shares Perpetual bonds Capital reserve 25,934,597,155.91 25,710,105,926.41 Less: treasury stock 2,186,163,826.04 1,715,665,009.44 Other comprehensive income 600,586,264.69 592,395,413.02 Special reserve Surplus reserve 4,691,456,667.00 4,691,456,667.00 Undistributed profits 11,511,705,014.67 11,632,101,669.43 Total owners' equity (or shareholders' equity) 49,929,810,926.23 50,288,024,316.42 Total liabilities and owners' equity (or shareholders' equity) 190,939,657,611.75 182,981,836,067.38 Person in charge of the Company: Li Huagang Person in charge of accounting function: Sun Jiacheng Person in charge of accounting department: Ying Ke PROFIT STATEMENT OF THE PARENT COMPANY January-March 2026 Prepared by: Haier Smart Home Co Ltd Unit and Currency: RMB Type of Audit: Unaudited Items 2026 First Quarter 2025 First Quarter I. Operating revenue 191,218,646.48 154,578,706.91 Less: operation cost 185,942,124.08 137,855,956.83 Taxes and surcharges 1,354,868.02 4,643,833.78 Selling expenses 783,349.58 1,989,652.87 Administrative expenses 232,452,230.54 233,748,441.73 R&D expenses 2,045,790.65 1,084,163.47 Financial expenses -31,403,347.12 -33,959,984.27 Including: Interest expenses 45,653,653.10 44,322,165.70 Interest income 78,449,535.15 88,055,668.70 Add: other income 32,803.83 2,336,529.45 Investment income (losses are represented by "-") 78,172,974.89 92,149,519.93 Including: Investment income of associates and joint ventures 67,002,313.50 70,060,216.87 Derecognition income on financial assets measured at amortised cost Gains on net exposure hedges (losses are represented by "-") Income from changes in fair value (losses are represented by "-") 1,036,477.99 10,982,566.66 Loss on credit impairment (losses are represented by "-") 393,796.83 Loss on assets impairment (losses are represented by "-") Gain from disposal of assets (losses are represented by "-") -241,461.19 II. Operating profit (losses are represented by "-") -120,320,315.73 -85,556,202.65 Add: non-operating income 2,757.23 Less: non-operating expenses 79,096.26 0.01 III. Total profit (total losses are represented by "-") -120,396,654.76 -85,556,202.66 Less: income tax expenses IV. Net profit (net losses are represented by "-") -120,396,654.76 -85,556,202.66 (I) Net profit from continuous operation (net losses are represented by "-") -120,396,654.76 -85,556,202.66 (II) Net profit from discontinued operation (net losses are represented by "-") V. Other comprehensive income net of tax 8,190,851.67 57,419,397.74 (I) Other comprehensive income that cannot be reclassified into the profit or loss 1. Changes arising from re-measurement of defined benefit plans 2. Other comprehensive income that cannot be transferred into profit or loss under equity method 3. Changes in fair value of investments in other equity instruments 4. Changes in fair value of credit risks of the enterprise (II) Other comprehensive income to be reclassified into the profit or loss 8,190,851.67 57,419,397.74 1. Other comprehensive income that can be transferred into profit or loss under equity method 8,190,851.67 57,419,397.74 2. Changes in fair value of other debt investments 3. Reclassified financial assets that are credited to other comprehensive income 4. Credit impairment provision for other debt investments 5. Reserve for cash flow hedging 6. Exchange differences on translation of financial statements denominated in foreign currencies 7. Others VI. Total comprehensive income -112,205,803.09 -28,136,804.92 VII. Earnings per share: (I) Basic earnings per share (RMB/share) (II) Diluted earnings per share (RMB/share) Person in charge of the Company: Li Huagang Person in charge of accounting function: Sun Jiacheng Person in charge of accounting department: Ying Ke CASH FLOW STATEMENT OF THE PARENT COMPANY January-March 2026 Prepared by: Haier Smart Home Co., Ltd. Unit and Currency: RMB Type of Audit: Unaudited Items 2026 First Quarter 2025 First Quarter I. Cash flow from operating activities: Cash received from the sale of goods and rendering of services 13,116,981.43 129,150,491.14 Refunds of taxes Other cash received from operating activities 51,646,601.24 184,210,135.77 Sub-total of cash inflows from operating activities 64,763,582.67 313,360,626.91 Cash paid on purchase of goods and services 56,411,025.59 Cash paid to and on behalf of employees 7,276,896.15 11,921,078.23 Cash paid for all types of taxes 14,024,088.22 8,313,253.37 Other cash paid to operation activities 49,253,770.61 123,226,950.12 Sub-total of cash outflows from operating activities 126,965,780.57 143,461,281.72 Net cash flow from operating activities -62,202,197.90 169,899,345.19 II. Cash flow from investing activities: Cash received from recovery of investments 9,000,000,000.00 6,430,000,000.00 Cash received from return on investments 143,417,286.20 27,422,797.20 Net cash received from the disposal of fixed assets, intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other operating entities Other cash received from investment activities 1,446,965,740.00 Sub-total of cash inflows from investing activities 10,590,383,026.20 6,457,422,797.20 Cash paid on purchase of fixed assets intangible assets and other long-term assets 117,600.00 2,232,839.31 Cash paid for investments 11,549,740,991.96 7,884,005,369.26 Net cash paid on acquisition of subsidiaries and other operating entities Other cash paid on investment activities 1,420,000,000.00 Sub-total of cash outflows from investing activities 11,549,858,591.96 9,306,238,208.57 Net cash flow from investing activities -959,475,565.76 -2,848,815,411.37 III. Cash flow from financing activities: Cash received from capital contributions Cash received from borrowings 945,000,000.00 1,500,000,000.00 Cash received from bonds issuance 1,500,000,000.00 Other cash received from financing activities 1,581,477,746.16 431,714,066.29 Sub-total of cash inflows from financing activities 2,526,477,746.16 3,431,714,066.29 Cash paid on repayment of debts 606,572,856.45 7,000,000.00 Cash paid on distribution of dividends, profits or interest expenses 60,101,103.78 44,554,736.13 Other cash paid on financing activities 470,498,816.60 Sub-total of cash outflows from financing activities 1,137,172,776.83 51,554,736.13 Net cash flow from financing activities 1,389,304,969.33 3,380,159,330.16 IV. Effect of fluctuations in exchange rates on cash and cash equivalents -135,670.47 -706,052.98 V. Net increase in cash and cash equivalents 367,491,535.20 700,537,211.00 Add: balance of cash and cash equivalents at the beginning of the period 6,823,857,021.79 8,721,089,765.37 VI. Balance of cash and cash equivalents at the end of the period 7,191,348,556.99 9,421,626,976.37 Person in charge of the Company: Li Huagang Person in charge of accounting function: Sun Jiacheng Person in charge of accounting department: Ying Ke The adjustments of the relevant items of the financial statements at the beginning of the year due to the first implementation of new accounting standards or interpretations to accounting standards since 2026 □Applicable √Not Applicable The Board of Haier Smart Home Co., Ltd. 27 April 2026 This announcement is published in both Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail. By order of the Board Haier Smart Home Co., Ltd. * LI Huagang Chairman Qingdao, the PRC 27 April 2026 As at the date of this announcement, the executive Directors of the Company are Mr. LI Huagang and Mr. Kevin Nolan; the non-executive Directors are Mr. GONG Wei, Mr. YU Hon To, David, Mr. CHIEN Da-Chun and Mr. LI Shaohua; the independent non-executive Directors are Mr. WONG Hak Kun, Mr. LI Shipeng, Mr. WU Qi and Mr. WANG Hua; and the employee representative Director is Ms. SUN Danfeng. * For identification purpose only -

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