Haier Smart Home Company

Quarterly Report • Apr 29, 2025

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)

Stock Code: 6690 2025 FIRST QUARTER REPORT

The financial data of the Company for the first quarter of 2025 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"), the board of supervisors, directors, supervisors, 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

I. 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 (%) Before adjustment After adjustment After adjustment Operating revenue 79,118,173,583.72 68,977,513,890.10 71,887,760,027.53 10.06 Net profit attributable to shareholders of the listed Company 5,486,615,176.18 4,772,967,900.81 4,767,413,630.08 15.09 Net profit after deduction of non-recurring profit or loss attributable to shareholders of the listed Company 5,364,091,335.39 4,639,880,144.13 4,639,880,144.13 15.61 Net cash flow from operating activities 2,284,614,694.47 1,724,758,959.43 1,984,673,662.69 15.11 Basic earnings per share (RMB per share) 0.59 0.52 0.52 13.46 Diluted earnings per share (RMB per share) 0.59 0.51 0.51 15.69 Weighted average return on net assets (%) 4.77 4.53 4.60 Increased by 0.17 percentage points

	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 (%)
		Before adjustment	After adjustment	After adjustment
Total assets	293,704,902,753.44	290,113,822,824.61	290,736,357,978.75	1.02
Owner equity attributable to shareholders of the listed Company	117,747,327,883.76	111,366,118,999.17	111,778,874,767.22	5.34

Reasons for retrospective adjustment or restatement:

In December 2024, the Company realised control over Youjin (Shanghai) Corporate Management Co., Ltd. by way of entrustment of voting rights. In March 2025, the Company completed the acquisition of equity interests in COSMOPlat Mould (Qingdao) Co., Ltd. The transaction was accounted for as a business combination under common control in accordance with relevant accounting standards and accordingly, the comparative figures for the corresponding period were restated.

I. Revenue and Profit

In the first quarter of 2025, the Company achieved revenue of RMB 79.118 billion, net profit attributable to shareholders of RMB 5.487 billion, and net profit attributable to shareholders after deducting non-recurring gains and losses of RMB 5.364 billion, representing increases of 10.06%, 15.09%, and 15.61% respectively compared to the corresponding period in 2024.

(I) Performance in the Chinese Market

During the reporting period, the Company accelerated its retail transformation by strengthening digital inventory and digital marketing initiatives, which improved inventory turnover, warehouse distribution efficiency, and marketing ROI. Revenue in the Chinese market grew by 7.8% year-on-year during the reporting period.

The Company continued to lead industry trends in healthy living solutions, integrated home appliances and furnishings, energy efficiency, and product suites through ongoing investment in proprietary technology and strengthening our suite product lineup. These efforts have enhanced our product mix and premium market position: In the first quarter of 2025, the Casarte brand maintained strong momentum with growth exceeding 20%. During the reporting period, the Company accelerated the application of AI technology, launching the Casarte "AI Eye" product series. This innovation utilizes multimodal data integration and deep learning algorithms to enable smart sensing and interactive capabilities in appliances, addressing user experiencing on such as food inventory management in refrigerators, inaccurate fabric detection in washing machines, and suboptimal safety features in cooking ranges.

In digital inventory transformation, the Company has launched the POP customer digital inventory model, enabling inventory sharing for online product models and accelerating product turnover rates. By establishing order forecasting models and warehouse distribution models, we improved order fulfillment and delivery efficiency, reducing distributors' investment and capital commitments while lowering their operational barriers. During the reporting period, the Company's home air conditioner business attracted over 60 new POP professional distributors, with POP channel retail sales surging by more than 100%.

The Company has actively advanced its digital marketing transformation to deliver brand value in ways that connect more closely with consumers, deepening user relationships and building a new ecosystem for meaningful consumer engagement. Through the Haier Smart Home AI data cloud, we precisely identify consumer needs to enable efficient interaction with users and involve them in product design. User feedback is promptly channeled back to planning and R&D processes to expedite product innovation. We have established a three-tier new media account structure comprising KOLs (Key Opinion Leaders), KOEs (Key Opinion Experts), and KOSs (Key Opinion Salespeople), leveraging AI platforms for efficient account management and to accelerate new media touchpoint development and interaction model transformation. During the reporting period, the Haier brand's share of voice (SOV) from organic searches skyrocketed by 140%; the Leader three-drum washing machine for convenience-seekers, Haier Mailang (麦浪) refrigerator, and Haier Little Blue Bottle water heater became trending bestsellers in the industry.

(II) Performance in Overseas Markets

In the first quarter of 2025, the Company's overseas business leveraged its global R&D platform to accelerate product innovation and establish high-end market leadership. Through digital transformation in overseas markets, we enhanced product competitiveness and retail operational efficiency, achieving market share breakthroughs and profitability improvements. During the reporting period, overall overseas revenue increased by 12.6% year-on-year.

In North America, revenue from our premium brands achieved double-digit growth. Emerging business segments continued to make breakthroughs, with HVAC business revenue showing triple-digit year-on-year growth. By enhancing our local supply chain capabilities and leveraging localized manufacturing advantages, we achieved ongoing efficiency improvements in US-based production of high-end BM refrigerators, freestanding ranges, and dishwashers with stainless steel interiors during the reporting period.

In Europe, our market share gradually improved as our brand upgrade, product iterations, and organizational restructuring initiatives began to take effect: According to GfK data, the Company's market share by sales volume for refrigerators and washing machines increased by 0.6 and 0.3 percentage points respectively across markets including Italy, France, the UK, and Spain. We actively advanced global supply chain coordination to improve local cost competitiveness while accelerating digital transformation across finance, R&D, supply chain, and after-sales service platforms to enhance operational efficiency.

In emerging markets, we maintained our rapid growth trajectory. In South Asia, revenue grew by over 30% yearon-year. Specifically, our overall retail value and volume market shares in the Indian market increased by 0.6 and 0.7 percentage points respectively, with our side-by-side refrigerators capturing 21% market share. In Southeast Asia, revenue increased by more than 20% year-on-year, with our refrigerator sales volume share in Vietnam reaching 22.8%, ranking first in the industry, and our overall white goods sales volume share in Thailand reaching 14%, leading the market. In the Middle East and Africa, revenue grew by over 50% year-on-year, with our market shares for refrigerators, washing machines, and air conditioners in Egypt doubling year-on-year.

II. Gross Profit Margin

The gross profit margin in the first quarter of 2025 was 25.4%, representing an increase of 0.1 percentage points as compared to the same period in 2024. For the domestic market, we continued to promote the digitalisation of procurement, R&D and manufacturing, developed a digital production and sales coordination system, and improved cost competitiveness through the construction of a cost accounting model, which resulted in an increase in gross profit margin year-on-year. For overseas market, we adhered to the strategy of high-end brands by accelerating the promotion of high-end brands, thereby enhancing high-end experience. We also enhanced cost competitiveness through the construction of a digital procurement platform, strengthened global supply chain collaboration, continuously optimized manufacturing efficiency, and worked on the continuous development of a cross-border logistics platform for all business scenarios, resulting in an increase in gross profit margin year-on-year.

III. Operating Expenses Ratio

1. The selling expense ratio in the first quarter of 2025 was 9.6%, representing an improvement of 0.1 percentage point as compared to the same period in 2024. The domestic market has witnessed a year-on-year improvement of selling expense ratio as a result of the enhanced efficiency in marketing resource allocation, logistics and delivery as well as warehouses operations after the digital reform. As for the overseas market, we have promoted end-to-end retail innovation, integrated global resources to enhance operational efficiency, resulting in a year-on-year improvement of selling expense ratio.

2. The administrative expense ratio in the first quarter of 2025 was 3.1%, representing an improvement of 0.1 percentage point as compared to the same period in 2024. The improvement in domestic and overseas administrative expense ratio was attributable to optimized business processes and improved organizational efficiency through the Company's digital tool applications.

3. The R&D expenses ratio was 4.2% in the first quarter of 2025, which remained basically at the same level as that in the same period of 2024. The R&D expenses primarily reflect the Company's efforts to strengthen core technologies and capabilities in the smart home sector, as well as to advance forward-looking technological initiatives and product innovations across various industries.

4. The financial expense ratio in the first quarter of 2025 was -0.3% ("+" as expense, "-" as income), representing an increase of 0.6 percentage points as compared to the end of 2024, which was mainly due to the increase in foreign exchange gains as a result of the appreciation of the Ruble and the depreciation of the Renminbi.

IV. Working Capital

1. Trade and bill receivable turnover days

Trade and bill receivable turnover days were 46.7 days in the first quarter of 2025, representing an increase of 2 days as compared to the end of 2024, mainly attributable to the increase in the scale of revenue during the current period.

2. Inventory turnover days

Inventory turnover days were 74.8 days in the first quarter of 2025, representing an increase of 1.8 days as compared to the end of 2024, mainly attributable to the increase in seasonal inventory.

3. Trade and bill payable turnover days

Trade and bill payable turnover days were 130.0 days in the first quarter of 2025, representing a decrease of 0.8 days as compared to the end of 2024, indicating a relatively stable performance.

V. Cash Flow Analysis

1. Net cash flow from operating activities in the first quarter of 2025 amounted to RMB2.285 billion, representing an increase of RMB0.3 billion as compared to the corresponding period of 2024, which was mainly due to the increase in operating profit during the current period.

2. Net cash outflow from investing activities in the first quarter of 2025 amounted to RMB5.143 billion, representing an increase of net cash outflow of RMB2.705 billion as compared to the corresponding period of 2024, which was mainly due to an increase in cash payments for the purchase of wealth management products from banks during the current period.

3. Net cash inflow from financing activities in the first quarter of 2025 amounted to RMB1.191 billion, while the net cash outflow in the corresponding period of 2024 amounted to 0.357 billion, which was mainly due to the increase in cash received from the issuance of medium-term notes and the addition of new borrowings during the current period.

VI. 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 2025 was RMB1.961 billion, of which RMB0.914 billion and RMB1.047 billion were used in China and overseas, respectively, primarily for plant and equipment construction, property rental, and digital infrastructure.

VII. Asset-liability Ratio

At the end of the first quarter in 2025, the Company's asset-liability ratio was 57.4%, representing a decrease of 1.8 percentage points as compared to the end of 2024, which was mainly due to the increase in net profits.

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	-2,318,361.16
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	204,852,871.56
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	-529,120.47
Net profit or loss of subsidiaries arising from business combinations under common control of the current period from the beginning of the period to the date of consolidation	21,397,715.88
Other non-operating income and expenses other than the above items	-63,944,226.85
Less: amount of effect of income tax	-25,567,782.54
Amount of effect of minority interests (after tax)	-11,367,255.63
Total	122,523,840.79

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

II. Particulars of Shareholders

(I) 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		Total number of preferential shareholders with 188,685 restored voting rights as of the end of the Reporting Period (if any)			/
			Shareholdings of the top 10 shareholders (excluding shares lent through refinancing)
Name of shareholders		Nature of shareholders	Number of shares held	Percentage of shareholdings (%)	Number of shares held subject to trading moratorium	Pledged, marked or frozen
						Status	Number
HKSCC NOMINEES LIMITED		Unknown	2,313,500,930	24.66		Nil
Haier COSMO Co., Ltd.		Domestic non state-owned legal entity	1,258,684,824	13.41		Nil
Haier Group Corporation		Domestic non state-owned legal entity	1,072,610,764	11.43		Nil
Hong Kong Securities Clearing Company Limited		Unknown	580,931,030	6.19		Nil
HCH (HK) INVESTMENT MANAGEMENT CO., LIMITED	entity	Foreign legal	538,560,000	5.74		Nil
China Securities Finance Corporation Limited		Unknown	182,592,654	1.95		Nil
Qingdao Haier Venture & Investment Information Co., Ltd.		Domestic non state-owned legal entity	172,252,560	1.84		Nil
Qingdao Haichuangzhi Management Consulting Enterprise (Limited Partnership)		Domestic non state-owned legal entity	133,791,058	1.43		Nil
Industrial and Commercial Bank of China-SSE 50 ETF		Unknown	68,691,307	0.73		Nil
Industrial and Commercial Bank of China Limited – Huatai-PB CSI 300 ETF		Unknown	61,304,828	0.65		Nil
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			Class and number of shares
		to trading moratorium held		Class			Number
HKSCC NOMINEES LIMITED		2,313,500,930		Overseas listed foreign shares			2,313,500,930
Haier COSMO Co., Ltd.		1,258,684,824		RMB ordinary shares			1,258,684,824
Haier Group Corporation Hong Kong Securities Clearing		1,072,610,764		RMB ordinary shares		1,072,610,764
Company Limited		580,931,030		RMB ordinary shares		580,931,030
HCH (HK) INVESTMENT MANAGEMENT CO., LIMITED		538,560,000		Overseas listed foreign shares		538,560,000
China Securities Finance Corporation Limited		182,592,654		RMB ordinary shares		182,592,654
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
Industrial and Commercial Bank of China-SSE 50 ETF	68,691,307	RMB ordinary shares	68,691,307
Industrial and Commercial Bank of China Limited – Huatai-PB CSI 300 ETF	61,304,828	RMB ordinary shares	61,304,828
Explanation of associations or actions in concert among the above shareholders	(1) 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; (2) 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 59,919,870 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

III. Miscellaneous

Other significant information regarding the Company's operations during the Reporting Period should be brought to the attention of investors

√ Applicable □Not Applicable

• (1) 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 RMB15.882 billion, accounting for 13.5% of the Company's latest net assets and 5.4% of the latest total assets.
• (2) 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\$1.191 billion.
• (3) Entrusted wealth management: As at the end of the Reporting Period, the balance of the Company's entrusted wealth management amounted to RMB5.134 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 RMB5.112 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 RMB22.00 million.

(4) Repurchase of A Shares: On 27 March 2025, the Company convened the 13th meeting of the 11th session of the Board, which considered and approved the Resolution in Relation to the Repurchase Plan of a Portion of Public A Shares of Haier Smart Home Co., Ltd., pursuant to which the Company is allowed to repurchase a portion of 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 repurchase price is no more than RMB40 per share and the proposed total repurchase amount is no more than RMB2.0 billion and no less than RMB1.0 billion. The period of this repurchase is within 12 months from the date the Board considered and approved the resolution of repurchase of shares. As at the end of the Reporting Period, the repurchase plan has not been implemented.

IV. Quarterly Financial Statements

(I) Type of Audit Opinion

□Applicable √Not Applicable

(II) Financial Statements

CONSOLIDATED BALANCE SHEET 31 March 2025

		Unit and Currency: RMB Type of Audit: Unaudited
Items	31 March 2025	31 December 2024
Current assets:
Cash at bank and on hand	54,124,666,444.83	55,597,554,622.83
Provision of settlement fund
Funds lent
Financial assets held for trading	5,628,384,564.10	1,236,017,839.53
Derivative financial assets	52,639,240.74	142,709,716.91
Bills receivable	9,113,504,977.09	12,179,856,870.01
Accounts receivable	28,235,897,044.69	26,494,845,510.56
Financing receivables	389,988,123.94	412,922,615.25
Prepayments	1,845,962,140.82	2,378,144,459.47
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves receivable
Other receivables	4,553,071,858.24	3,601,357,495.02
Including: Interest receivable	820,234,440.71	771,591,076.67
Dividend receivable
Financial assets purchased under resale agreements
Inventories	44,853,207,581.65	43,189,855,697.96
Including: data resources
Contract assets	1,247,853,188.49	997,963,705.67
Assets held for sale
Non-current assets due in one year	1,050,351,673.38	1,439,758,652.55
Other current assets	3,690,000,886.95	4,443,274,038.03
Total current assets	154,785,527,724.92	152,114,261,223.79
Non-current assets:
Loans and advances granted
Debt investments	15,272,737,304.11	15,474,759,856.99
Other debt investments
Long-term receivables	259,702,475.40	224,724,107.31
Long-term equity investments	20,939,092,664.32	20,932,439,255.93
Investments in other equity instruments	5,984,829,573.99	6,073,680,870.82
Other non-current financial assets
Investment properties	245,914,852.41	246,161,259.83
Fixed assets	38,162,445,588.39	37,613,215,769.46

Construction in progress	5,762,640,146.79	5,686,050,990.48
Biological assets for production
Oil and gas assets
Right-of-use assets	6,293,598,258.13	5,841,869,564.36
Intangible assets	13,995,561,254.37	14,042,940,068.17
Including: data resources
Development cost	287,749,336.31	267,267,592.92
Including: data resources
Goodwill	27,515,057,100.66	27,384,007,599.06
Long-term prepaid expenses	593,025,246.16	598,216,433.64
Deferred income tax assets	2,111,671,750.98	2,477,206,492.36
Other non-current assets	1,495,349,476.50	1,759,556,893.63
Total non-current assets	138,919,375,028.52	138,622,096,754.96
Total assets	293,704,902,753.44	290,736,357,978.75
Current liabilities:
Short-term borrowings	18,809,705,985.88	13,784,367,443.93
Borrowings from central bank
Amounts due to banks and other financial institutions
Financial liabilities held for trading
Derivative financial liabilities	143,735,268.16	71,011,310.01
Bills payable	22,212,498,818.19	21,220,364,311.81
Accounts payable	54,802,800,718.91	54,665,277,420.32
Receipts in advance
Contract liabilities	5,861,542,436.58	10,865,337,767.67
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	4,409,005,776.17	5,057,260,277.99
Taxes payable	3,576,913,970.56	3,915,219,916.17
Other payables	18,973,043,632.78	21,746,135,764.08
Including: Interest payable
Dividend payable	1,373,409.41	14,082,609.41
Fees and commissions payable
Reinsurance Accounts payables
Liabilities held for sale
Non-current liabilities due within one year	13,659,004,844.57	16,530,040,461.37
Other current liabilities	1,764,197,668.07	1,899,945,460.39
Total current liabilities	144,212,449,119.87	149,754,960,133.74
Non-current liabilities:
Deposits for insurance contracts
Long-term borrowings	9,513,656,938.33	9,665,074,313.67

Bonds payable	1,500,000,000.00
Including: Preference shares
Perpetual bonds
Lease liabilities	4,965,000,766.03	4,480,895,997.36
Long-term payables	312,204,184.27	188,220,056.59
Long-term payables for staff's remuneration	2,475,547,777.64	2,561,647,446.35
Estimated liabilities	2,374,371,342.70	2,386,261,752.92
Deferred income	1,316,054,511.33	1,252,216,590.03
Deferred income tax liabilities	1,637,286,535.79	1,547,287,169.00
Other non-current liabilities	180,002,600.16	98,073,333.45
Total non-current liabilities	24,274,124,656.25	22,179,676,659.37
Total liabilities	168,486,573,776.12	171,934,636,793.11
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital)	9,382,913,334.00	9,382,913,334.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve	19,899,672,898.04	20,310,218,222.04
Less: treasury stock	3,510,728,776.44	3,510,728,776.44
Other comprehensive income	1,799,632,869.54	825,502,860.47
Special reserve
Surplus reserve	5,296,602,892.45	5,296,602,892.45
General risk provisions
Undistributed profits	84,879,234,666.17	79,474,366,234.70
Total equity attributable to owners (or shareholders) of the Parent Company	117,747,327,883.76	111,778,874,767.22
Minority shareholders' interests	7,471,001,093.56	7,022,846,418.42
Total owners' equity (or shareholders' equity)	125,218,328,977.32	118,801,721,185.64
Total liabilities and owners' equity (or shareholders' equity)	293,704,902,753.44	290,736,357,978.75

Person in charge of the Company: Li Huagang Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke

CONSOLIDATED PROFIT STATEMENT

January-March 2025

Unit and Currency: RMB Type of Audit: Unaudited
Items	2025 First Quarter	2024 First Quarter
Ⅰ. Total operating revenue	79,118,173,583.72	71,887,760,027.53
Including: Operating revenue	79,118,173,583.72	71,887,760,027.53
Interest income
Insurance premiums earned
Fee and commission income
Ⅱ. Total cost of operations	72,546,845,620.70	66,464,113,964.07
Including: Operating cost	59,025,209,353.46	53,671,253,365.43
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	348,663,099.15	316,392,449.30
Selling expenses	7,610,520,791.43	6,962,202,144.29
Administrative expenses	2,490,570,288.95	2,321,343,843.10
R&D expenses	3,293,452,649.93	2,988,363,372.60
Financial expenses	-221,570,562.22	204,558,789.35
Including: Interest expenses	723,464,408.49	600,815,370.11
Interest income	454,127,183.65	456,268,685.82
Add: other income	265,906,968.04	238,349,930.29
Investment income (losses are represented by "-")	341,537,924.22	426,051,128.72
Including: Investment income of associates and joint ventures	318,061,530.23	418,155,223.55
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 "-")	-529,120.47	29,465,750.04
Loss on credit impairment (losses are represented by "-")	-38,815,258.04	-38,570,706.54
Loss on assets impairment (losses are represented by "-")	-237,013,700.06	-203,114,289.23
Gain from disposal of assets (losses are represented by "-")	1,862,934.78	17,799,202.76
Ⅲ. Operating profit (losses are represented by "-")	6,904,277,711.49	5,893,627,079.50
Add: non-operating income	41,462,977.64	29,799,038.34

Less: non-operating expenses	105,407,204.49	62,467,902.50
Ⅳ. Total profit (total losses are represented by "-")	6,840,333,484.64	5,860,958,215.34
Less: income tax expense	1,203,106,217.24	929,693,892.99
Ⅴ. Net profit (net losses are represented by "-")	5,637,227,267.40	4,931,264,322.35
(I) Classification by continuous operation
1. Net profit from continuous operation (net losses
are represented by "-")	5,637,227,267.40	4,931,264,322.35
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	5,486,615,176.18	4,767,413,630.08
Company (net losses are represented by "-")
2. Profit or loss attributable to minority shareholders	150,612,091.22	163,850,692.27
(net losses are represented by "-")
VI. Other comprehensive income, net of tax	976,547,330.31	-693,838,887.44
(I) Other comprehensive income attributable to	974,130,009.07	-693,345,084.97
shareholders of the Parent Company, net of tax
1. Other comprehensive income that cannot be	-28,646,247.44	4,020,096.24
reclassified into the profit or loss
(1) Changes arising from re-measurement of defined	-895,650.18	-1,824,681.01
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	-27,750,597.26	5,844,777.25
(4) Changes in fair value of credit risks of the
enterprise
2. Other comprehensive income to be reclassified into the
profit or loss	1,002,776,256.51	-697,365,181.21
(1) Other comprehensive income that can be
transferred into profit or loss under equity	24,556,653.41	-58,801,054.61
method
(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	6,782,412.50	-49,088,528.53
(6) Exchange differences on translation of financial	971,437,190.60	-589,475,598.07
statements denominated in foreign currencies
(7) Others
(II) Other comprehensive income attributable to minority	2,417,321.24	-493,802.47
shareholders, net of tax
Ⅶ. Total comprehensive income	6,613,774,597.71	4,237,425,434.91
(I) Total comprehensive income attributable to the owners	6,460,745,185.25	4,074,068,545.11
of Parent Company
(II) Total comprehensive income attributable to the	153,029,412.46	163,356,889.80
minority shareholders
Ⅷ. Earnings per share:
(I) Basic earnings per share (RMB/share)	0.59	0.52
(II) Diluted earnings per share (RMB/share)	0.59	0.51

For the business combinations under common control in the current period, the net profit of the parties consolidated before consolidation was: RMB21,397,715.88 and the net profit of the parties consolidated in the previous period was: RMB-5,554,270.73.

Person in charge of the Company: Li Huagang Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke

CONSOLIDATED CASH FLOW STATEMENT

January-March 2025

Items	2025 First Quarter	2024 First Quarter
I. Cash flow from operating activities:
Cash received from the sale of goods and rendering services	82,003,332,728.94	74,102,102,091.65
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	807,873,993.65	573,534,443.74
Cash received from other related operating activities	768,161,495.26	628,212,803.38
Sub-total of cash inflows from operating activities	83,579,368,217.85	75,303,849,338.77
Cash paid on purchase of goods and services	59,902,750,771.26	54,409,624,308.58
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	9,622,818,712.58	8,609,790,151.78
Cash paid for all types of taxes	4,367,046,203.63	3,542,686,945.51
Cash paid to other operation related activities	7,402,137,835.91	6,757,074,270.21
Sub-total of cash outflows from operating activities	81,294,753,523.38	73,319,175,676.08
Net cash flow from operating activities	2,284,614,694.47	1,984,673,662.69
II. Cash flow from investing activities:
Cash received from recovery of investments	8,168,618,454.03	1,855,725,171.06
Cash received from return on investments	301,002,093.56	327,194,012.82
Net cash received from the disposal of fixed assets, intangible assets and other long-term assets	2,790,225.50	8,017,335.14
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	8,472,410,773.09	2,190,936,519.02

Cash paid on purchase of fixed assets, intangible assets and other long-term assets	1,960,795,381.53	2,252,130,106.93
Cash paid for investments	11,504,773,514.70	2,369,692,578.91
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	7,636,368.39
Sub-total of cash outflows from investing activities	13,615,875,346.23	4,629,459,054.23
Net cash flow from investing activities	-5,143,464,573.14	-2,438,522,535.21
III. Cash flow from financing activities:
Cash received from capital contributions	41,200,000.00	252,228,131.22
Including: Cash received from capital contributions by
minority shareholders of subsidiaries
Cash received from borrowings	7,087,360,333.75	2,780,508,277.43
Cash received from bond issuance	1,500,000,000.00
Other cash received from financing activities	111,646,384.65	129,607,198.03
Sub-total of cash inflows from financing activities	8,740,206,718.40	3,162,343,606.68
Cash paid on repayment of loans	4,877,205,219.99	2,249,764,209.39
Cash paid on distribution of dividends, profits or repayment of interest expenses	771,190,837.48	522,003,049.32
Including: Dividend and profit paid to minority shareholders by subsidiaries
Other cash paid to financing activities	1,900,672,608.03	747,564,451.80
Sub-total of cash outflows from financing activities	7,549,068,665.50	3,519,331,710.51
Net cash flow from financing activities	1,191,138,052.90	-356,988,103.83
IV. Effect of fluctuations in exchange rates on cash
and cash equivalents	86,486,684.58	-61,943,902.70
V. Net increase in cash and cash equivalents	-1,581,225,141.19	-872,780,879.05
Add: balance of cash and cash equivalents at the beginning of the period	54,994,595,280.18	56,715,672,668.25
VI. Balance of cash and cash equivalents at the end of the period	53,413,370,138.99	55,842,891,789.20

Person in charge of the Company: Li Huagang Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke

BALANCE SHEET OF THE PARENT COMPANY

31 March 2025

		Unit and Currency: RMB Type of Audit: Unaudited
Items	31 March 2025	31 December 2024
Current Assets:
Monetary funds	9,421,626,976.37	8,721,089,765.37
Financial assets held for trading	2,423,315,566.66
Derivative financial assets
Bills receivable
Accounts receivable	2,239,773,549.87	2,089,263,590.36
Financing receivables
Prepayments	3,124,793.19	3,124,793.19
Other receivables	46,439,029,719.07	35,309,208,101.73
Including: Interests receivable	158,511,120.88	137,951,583.62
Dividends receivable	955,746,044.23	955,746,044.23
Inventories	6,597,571.56	9,092,410.78
Including: data resources
Contract assets
Assets held for sale
Non-current assets due within one year	319,050,000.00	1,105,291,666.67
Other current assets	1,009,025.87	174,671,080.16
Total current assets	60,853,527,202.59	47,411,741,408.26
Non-current assets:
Debt investments	6,978,292,634.40	7,243,616,935.47
Other debt investments
Long-term receivables
Long-term equity investments	62,493,714,399.29	62,193,654,756.17
Investments in other equity instruments	1,602,852,951.00	1,602,852,951.00
Other non-current financial assets
Investment properties
Fixed assets	125,768,535.23	131,874,644.27
Construction in progress	3,620,405.74	490,452.83
Biological assets for production
Oil and gas assets
Right-of-use assets
Intangible assets	33,667,005.15	35,196,337.86
Including: data resources
Development cost
Including: data resources
Goodwill

Long-term prepaid expenses	3,077,327.13	3,502,636.81
Deferred income tax assets
Other non-current assets	1,738,121,667.23	1,738,121,667.23
Total non-current assets	72,979,114,925.17	72,949,310,381.64
Total assets	133,832,642,127.76	120,361,051,789.90
Current liabilities:
Short-term borrowings	3,500,000,000.00	2,000,000,000.00
Financial liabilities held for trading
Derivative financial liabilities
Bills payable
Accounts payable	1,657,704,712.32	1,526,611,034.49
Receipts in advance
Contract liabilities	12,597,148.63	12,597,148.63
Payables for staff's remuneration	4,575,797.67	7,798,419.39
Taxes payable	2,170,298.70	884,572.31
Other payables	73,182,504,770.75	63,004,946,189.17
Including: Interests payable		1,234,444.45
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year	2,041,350,000.00	1,495,350,000.00
Other current liabilities	18,835,148.72	18,881,166.43
Total current liabilities	80,419,737,876.79	68,067,068,530.42
Non-current liabilities:
Long-term borrowings	2,739,370,000.00	3,292,370,000.00
Bonds payable	1,500,000,000.00
Including: Preference shares
Perpetual bonds
Lease liabilities
Long-term payable
Long-term payables for staff's remuneration
Estimated liabilities
Deferred income	16,241,949.50	14,265,249.50
Deferred income tax liabilities	394,292,088.98	394,292,088.98
Other non-current liabilities
Total non-current liabilities	4,649,904,038.48	3,700,927,338.48
Total liabilities	85,069,641,915.27	71,767,995,868.90
Owners' equity (or shareholders' equity):
Paid-in capital (or share capital)	9,382,913,334.00	9,382,913,334.00
Other equity instruments

Including: Preference shares
Perpetual bonds
Capital reserve	25,878,642,547.98	25,680,561,451.57
Less: treasury stock	1,467,523,464.56	1,467,523,464.56
Other comprehensive income	675,788,147.41	618,368,749.67
Special reserve
Surplus reserve	4,691,456,667.00	4,691,456,667.00
Undistributed profits	9,601,722,980.66	9,687,279,183.32
Total owners' equity (or shareholders' equity)	48,763,000,212.49	48,593,055,921.00
Total liabilities and owners' equity (or shareholders' equity)	133,832,642,127.76	120,361,051,789.90

Person in charge of the Company: Li Huagang

Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke

PROFIT STATEMENT OF THE PARENT COMPANY

January-March 2025

		Unit and Currency: RMB Type of Audit: Unaudited
Items	2025 First Quarter	2024 First Quarter
I. Operating revenue	154,578,706.91	106,178,155.25
Less: operation cost	137,855,956.83	94,563,000.63
Taxes and surcharges	4,643,833.78	406,641.94
Selling expenses	1,989,652.87	2,327,210.37
Administration expenses	233,748,441.73	235,369,142.21
R&D expenses	1,084,163.47	3,836,325.20
Financial expenses	-33,959,984.27	-89,607,397.39
Including: Interest expenses	44,322,165.70	24,879,450.07
Interest income	88,055,668.70	115,935,583.47
Add: other income	2,336,529.45	3,559,526.35
Investment income (losses are represented by "-")	92,149,519.93	385,525,387.15
Including: Investment income of associates and
joint ventures	70,060,216.87	75,149,880.20
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 "-")	10,982,566.66
Loss on credit impairment (losses are represented		-77.28
by "-")
Loss on assets impairment (losses are represented
by "-")
Gain from disposal of assets (losses are	-241,461.19
represented by "-")
II. Operating profit (losses are represented by "-")	-85,556,202.65	248,368,068.51
Add: non-operating income
Less: non-operating expenses	0.01	77,177.37
III. Total profit (total losses are represented by "-")	-85,556,202.66	248,290,891.14
Less: income tax expenses
IV. Net profit (net losses are represented by "-")	-85,556,202.66	248,290,891.14
(I) Net profit from continuous operation (net losses are	-85,556,202.66	248,290,891.14
represented by "-")
(II) Net profit from discontinued operation (net losses
are represented by "-")
V. Other comprehensive income net of tax	57,419,397.74	18,941,480.38
(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	57,419,397.74	18,941,480.38
1. Other comprehensive income that can be transferred into profit or loss under equity method	57,419,397.74	18,941,480.38
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	-28,136,804.92	267,232,371.52
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: Gong Wei Person in charge of accounting department: Ying Ke

CASH FLOW STATEMENT OF THE PARENT COMPANY

January-March 2025

	Unit and Currency: RMB Type of Audit: Unaudited
Items	2025 First Quarter	2024 First Quarter
I. Cash flow from operating activities:
Cash received from the sale of goods and rendering of services	129,150,491.14	114,113,926.20
Refunds of taxes		38,214.96
Other cash received from operating activities	184,210,135.77	75,964,873.71
Sub-total of cash inflows from operating activities	313,360,626.91	190,117,014.87
Cash paid on purchase of goods and services
Cash paid to and on behalf of employees	11,921,078.23	17,119,015.44
Cash paid for all types of taxes	8,313,253.37	6,861,209.19
Other cash paid to operation activities	123,226,950.12	27,370,037.46
Sub-total of cash outflows from operating activities	143,461,281.72	51,350,262.09
Net cash flow from operating activities	169,899,345.19	138,766,752.78
II. Cash flow from investing activities:
Cash received from recovery of investments	6,430,000,000.00	1,322,000,000.00
Cash received from return on investments	27,422,797.20	18,419,623.50
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
Sub-total of cash inflows from investing activities	6,457,422,797.20	1,340,419,623.50
Cash paid on purchase of fixed assets intangible assets and other long-term assets	2,232,839.31	1,259,098.25
Cash paid for investments	7,884,005,369.26	1,634,000,000.00
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	9,306,238,208.57	1,635,259,098.25
Net cash flow from investing activities	-2,848,815,411.37	-294,839,474.75
III. Cash flow from financing activities:
Cash received from capital contributions
Cash received from borrowings	1,500,000,000.00
Cash received from bond issuance	1,500,000,000.00
Other cash received from financing activities	431,714,066.29	8,515,019,172.34
Sub-total of cash inflows from financing activities	3,431,714,066.29	8,515,019,172.34
Cash paid on repayment of borrowings	7,000,000.00	7,000,000.00
Cash paid on distribution of dividends, profits or interest expenses	44,554,736.13	23,762,967.35

Other cash paid on financing activities		466,600,210.43
Sub-total of cash outflows from financing activities	51,554,736.13	497,363,177.78
Net cash flow from financing activities	3,380,159,330.16	8,017,655,994.56
IV. Effect of fluctuations in exchange rates on cash and
cash equivalents	-706,052.98	-114,698.55
V. Net increase in cash and cash equivalents	700,537,211.00	7,861,468,574.04
Add: balance of cash and cash equivalents at the
beginning of the period	8,721,089,765.37	7,579,640,524.79
VI. Balance of cash and cash equivalents at the end of
the period	9,421,626,976.37	15,441,109,098.83

Person in charge of the Company: Li Huagang Person in charge of accounting function: Gong Wei Person in charge of accounting department: Ying Ke

(III) 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 2025

□Applicable √Not Applicable

The Board of Haier Smart Home Co., Ltd. 29 April 2025 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 29 April 2025

As at the date of this announcement, the executive directors of the Company are Mr. LI Huagang and Mr. GONG Wei; the non-executive directors are Mr. YU Hon To, David, Ms. Eva LI Kam Fun and Ms. SHAO Xinzhi; and the independent non-executive directors are Mr. CHIEN Da-Chun, Mr. WONG Hak Kun, Mr. LI Shipeng and Mr. WU Qi.

* For identification purpose only