Source of this article: Times Finance Author: Wang Lin
On the evening of August 30, Haier Smart Home released its 2023 semi-annual report. According to the financial report, its revenue in the first half of the year was 131.63 billion yuan, a year-on-year increase of 8.2%; The net profit attributable to the parent was 8.96 billion yuan, a year-on-year increase of 12.6%. Among them, digital transformation continues to bear fruit, and the 2023H1 rate is optimized by 0.3pct.
People who have been paying attention to Haier Zhijia for a long time will find that the rate issue that investors are concerned about is being optimized year by year: its rate has been reduced for three consecutive years since 2020H1, with a cumulative fee reduction of 1.6pct. Not only that, its net profit margin has also risen for three consecutive years. Haier Zhijia, which has reduced profits and increased profits, has a compound profit growth rate of 47.7% in 3 years, which is the highest in the industry's TOP3.
The rate continues to fall, the net profit rate continues to rise, how does Haier Smart Home do it? The answer is throttling and open source. First of all, Haier Smart Home's continuous digital transformation has allowed him to improve efficiency, reduce unnecessary expenses, and naturally release profit margins. Secondly, Haier Smart Home has opened up new sources of growth through a three-level brand strategy to do high-end and transformation scenarios. In this way, throttling and open source jointly achieve the continuous improvement of Haier Smart Home's net profit rate.
Cost reduction: Digital transformation has improved efficiency significantly, with a cumulative fee reduction of 1.6pct in 3 years
The national "14th Five-Year Plan" clearly points out that it is necessary to give full play to the advantages of massive data and rich application scenarios, promote the deep integration of digital technology and the real economy, empower the transformation and upgrading of traditional industries, give birth to new industries, new formats and new models, and strengthen new engines of economic development.
Looking at Haier Zhijia's financial report, it is not difficult to find that digitalization is a high-frequency word, and this is also an important measure for Haier Zhijia to achieve rate optimization. In the first half of 2023, Haier Smart Home continued to deepen its digital transformation internally, achieving continuous cost reduction and efficiency improvement through digital transformation in R&D, manufacturing, supply chain, logistics and other nodes.
Specifically, on the digital R&D platform, Haier Smart Home realized intelligent design and asynchronous module development, improved the level of material generalization, increased the scale of single-module procurement, and reduced procurement costs, reducing the number of materials by 16.6% in the first half of the year; On the digital manufacturing platform, Haier Smart Home optimizes the allocation of production resources, realizes transparent and visible production processes, and the standard beat completion rate increases by 18% year-on-year. On the digital supply chain platform, Haier Smart Home promotes the reform of order mode and optimizes the order response cycle. In the first half of 2023, the whole process inventory turnover day was optimized by 18%; On the digital logistics platform, Haier Smart Home increased the warehouse utilization rate by 16% through vehicle and cargo matching and digital warehousing.
If you extend the timeline, as shown in the figure above, you can clearly see the trend line of Haier Smart Home's rate continuous optimization: since the 2020 half-year report, Haier Smart Home's rate has been reduced for 3 consecutive years, and the rate has been optimized by 1.6pct cumulatively.
This means huge profit release space for Haier Zhijia, which has a half-year income of more than 130 billion. This also means that Haier Zhijia's throttling has entered the channel of fee reduction and efficiency improvement, and there is still room for continuous exploration in the future.
Open source: Tertiary brands open up new space, and the 3-year compound profit growth rate is the fastest TOP3
In addition to reducing fees and improving efficiency brought by digital transformation, Haier Smart Home also opens up new sources of growth through a three-level brand strategy.
For example, Casati has achieved continuous growth in its share on the basis of high-end first through continuous brand upgrades. According to the financial report, Casati's market share increased from 12.8% to 14.2% in the first half of 2023, a net increase of 1.4pct year-on-year.
Overseas has also continued to outperform the industry through global high-end brand creation and smart home landing. According to the financial report, Haier Smart Home's overseas revenue increased by 8.8%, outperforming the industry in various regions around the world. Specifically, Haier Smart Home's revenue increased by 4.5% in the American market, under the background of a 3.3% decline in the shipment volume of core home appliances in the industry; In the European market, Haier Smart Home's revenue increased by 29.6% against the background of an 8.1% decline in industry sales; South Asia revenue increased 23.5%; Southeast Asia revenue up 6.3%; Haier Smart Home revenue increased by 6.0% against the backdrop of a 9.5% decline in the cold washing industry in the Japanese market.
These new sources of growth, coupled with the results of fee reduction and efficiency improvement brought by digitalization, make Haier Smart Home's profit growth rate not only continue to grow on the basis of last year's high base, but also the compound growth rate in the past three years is the fastest in the industry's TOP3.
Not only that, in order to continue to grow its performance, Haier Smart Home's open source measures are continuous.
First overseas. In the first half of this year, Haier Smart Home first laid the foundation for the Egyptian ecological park, put into operation the Pakistani kitchen appliance factory, and in 2022, it also put into operation the South Asia freezer factory, the Nacarolina water heater factory in the United States and the Turkish dishwasher factory. These localized layouts will release more production capacity of Haier Smart Home to further expand the potential of overseas markets.
This is followed by Casati. Since the beginning of this year, Casati's channel layout has also accelerated. At present, Casati has settled in more than 300 high-end ShoppingMall brand experience scene centers across the country, from East China to North China, with contacts covering high-end circles in first-tier cities and new first-tier cities. Among them, taking the Casati Art and Life Museum Shanghai Global Harbor store, which has been open for more than 2 months, as an example, the store is only 90 square meters, but it has cooperated with 37 ecological brands to build together, and Casati has sold nearly 3 million.
In addition, in the construction of scene brands and ecological brands, Haier Zhijia has strengthened the landing of three-winged birds in the country. Since the beginning of June, Haier Three-winged Bird held the "Rough House" press conference in Hangzhou, directly faced the needs of users to demonstrate the landing ability based on the new positioning of the "smart home scene brand", and launched the "10,000 families nesting" plan. In August, the three-winged bird once again drove the press conference into the Inner Mongolia yurt, further accelerating the landing rhythm of smart homes.
In the two months since the opening of "Nesting in Ten Thousand Homes", Haier three-winged birds entered 2,149 communities across the country, with a scene transaction amount of 850 million yuan and an average transaction price of nearly 400,000 yuan in a single community. Although this number is not very large, it represents a new business model, giving birth to new markets and new increments.
Under the background of intensified industry competition and changing external environment, Haier Zhijia's semi-annual report once again released a positive signal to the outside world, showing the strong resilience and growth potential of performance. In the long run, with the continuous promotion of fee reduction and efficiency improvement, and the continuous opening up of new sources of growth for tertiary brands, Haier Smart Home will usher in more development opportunities and embark on a broader path of high-quality development.