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Haier Electronics Group Co.,Ltd海爾電器集團有限公司 (stock code: 01169)
2020 Interim Results PresentationAugust 2020
August 2019
2
Disclaimer
This presentation and the accompanying slides (the “Presentation”) which have been prepared byHaier Electronics (the “Company”) do not constitute any offer or invitation to purchase or subscribefor any securities, and shall not form the basis for or be relied on in connection with any contract orbinding commitment whatsoever. This Presentation has been prepared by the Company based oninformation and data which the Company considers reliable, but the Company makes norepresentation or warranty, express or implied, whatsoever, on the truth, accuracy, completeness,fairness and reasonableness of the contents of this Presentation. This Presentation may not be all-inclusive and may not contain all of the information that you may consider material. Any liability inrespect of the contents of or any omission from this Presentation is expressly excluded.
Certain matters discussed in this presentation may contain statements regarding the Company’smarket opportunity and business prospects that are individually and collectively forward-lookingstatements. Such forward-looking statements are not guarantees of future performance and aresubject to known and unknown risks, uncertainties and assumptions that are difficult to predict. TheCompany’s actual results, levels of activity, performance or achievements could differ materially andadversely from results expressed in or implied by this Presentation, including, amongst others:whether the Company can successfully penetrate new markets and the degree to which the Companygains traction in these new markets; the sustainability of recent growth rates; the anticipation of thegrowth of certain market segments; the positioning of the Company’s products and services in thosesegments; the competitive environment; and general market conditions. The Company is notresponsible for any forward-looking statements and projections made by third parties included in thisPresentation.
August 2019
3
Business Segments
Haier Electronics Group
Washing Machine Water heater & Water purifier
Channel Services
- No. 1 brand in China
- Margin expansion
- Strong cash generation
- Next generation smart manufactory
- Distribution full range of Haier
Products through online and offline
- Franchise-model based offline
network
August 2019
4
Agenda
➢ Overall Financial Review
➢ Washing Machine Segment
➢ Water Heater & Water Purifier
Segment
➢ Channel Services Segment
➢ Proposed Privatisation
Transaction Update
➢ Overall Financial Review
August 2019
5
574.0 578.7
713.2 763.4 758.8
145.7
205.1
26.8 28.0 33.8 38.4 41.9 5.0 8.4
4.7% 4.8%
4.7%
5.0%
5.5%
3.4%
4.1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
FY 15(restated) FY 16(restated) FY 17(restated) FY 18(restated) FY19* 20Q1 20Q2
revenue NP NPM
2015-2020H1 Financial Review
Growth trend from FY15 to 20H1
➢ The 5-year growth CAGR of FY15-19 for the group’s overall revenue and net profit
attributable to owners of the Company were respectively 7.23% and 11.82%;
➢ NPM consistently gained from 4.7% to 5.5% from FY15 to FY19 and decreased to
3.8% in 20H1 with NP growth rate of -27.3% due to the influence of COVID-19.
(¥100mn)
Note 1: The NP of FY19 excluding 3.16 billion RMB one-off disposal gain of logistic business
FY19 1
August 2019
6
54.2
21.3
184.2
205.1
WashingMachine
WH&WP
ChannelServices
Total
42.1
18.1
128.0
145.7
WashingMachine
WH&WP
ChannelServices
Total
2020H1 Quarterly Financial Review –
Revenue breakdown by segments
Q1 Revenue breakdown by segments1
Q2 Revenue breakdown by segments1
Note1: Before inter-segment elimination
(¥100mn)
(¥100mn)
-17.4%
-10.8%
+13.2%
+12.7%
Washing Machine
22%
WH&WP10%Channel
Services68%
Washing Machine WH&WP Channel Services
-22.4%
-22.4%
Washing Machine
21%
WH&WP8%
Channel Services
71%
Washing Machine WH&WP Channel Services
+14.1%
+10.3%
August 2019
7
5.6
3.8
4.9
WashingMachine
WH&WP
ChannelServices
Washing Machine
39%
WH&WP26%
Channel Service
35%
Washing Machine
21%
WH&WP9%
Channel Services
70%
96.3
39.5
312.2
350.8
WashingMachine
WH&WP
ChannelServices
Total
-4.7%
2020H1 Financial Review –
Revenue & EBIT breakdown by segments
Revenue breakdown by segments1
EBIT breakdown by segments1
Note1: Before inter-segment elimination
(¥100mn)
(¥100mn)
-2.2%
-0.5%
-5.1%
-37.0%
-17.6%
-14.7%
August 2019
8
148170
3524
0
50
100
150
200
250
Dec-19 June-20
Net cash & financial products
Net cash Financial products
Total:183 Total:194
2020H1 Financial Review - Cash Usage
(¥100mn)
41
33
0
5
10
15
20
25
30
35
40
45
Dec-19 June-20
Cash conversion cycle(Days)
5.54 6.16
0
1
2
3
4
5
6
7
8
9
10
19H1 20H1
Capex
Manufacturing Logistics
(¥100mn)
3.14
1.23
1.33
1
1.05
1.1
1.15
1.2
1.25
1.3
1.35
1.4
19H1 20H1
Net CFO/Net income
August 2019
9
Agenda
➢ Overall Financial Review
➢ Washing Machine Segment
➢ Water Heater & Water Purifier
Segment
➢ Channel Services Segment
➢ Proposed Privatisation
Transaction Update
• Market
• Business Composition
• Financial Review
➢ Washing Machine Segment
August 2019
10
WM Business Market - Consumption Trend
According to the offline data from China Market
Monitor, despite the impact of COVID-19, the
consumption upgrade trend continued in 2020
• Market share of front-load products in terms of
sales value increased by 4.2pcts to 78%, while the
ASP of front-load products is about 2.6 times of
that of top-load ones (¥4,550 vs. ¥1,758 )
• Products with higher ASP (¥6,000 and above) and
higher capacity (10kg and above) have been
gaining market share
Market share change
by price range
Market share by product types
Market share change
by capacity
Note: The data source is China Market Monitor (CMM)
(pct) (pct)
21%-3.9pct
78%+4.2pct
1%
top-load front-load others
(3)
(2)
(1)
0
1
2
3
4
5
6
(10)
(5)
0
5
10
15
August 2019
11
18%
13%
7%
3% 2%2%
1%
4.9
1.6
-1.6
0.7
-0.3
-1.1
0.0
-1.6
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
0%
5%
10%
15%
20%
25%
30%
35% market share
market share change yoy (pct)
WM Business Market – Haier’s Market Share
For 20H1:
• Haier ranked No. 1 both online and offline in terms
of sales value, and the online and offline market
shares further climbed by 4.9pcts and 3.6pcts yoy
respectively
• According to the offline data of CMM, Haier’s ASP
(¥3,525) was about 14% higher than the domestic
average (¥3,082), and for the high-end market with
ASP higher than ¥6,000, Haier accounted for about
50% of total market share
Market share by price range (CMM-offline)
20H1 online market share change in terms of sales value
20H1 offline market share change in terms of sales value
39%
38% 38%
31%
49%
13%
18% 20%17%
15% 14%
6%2%0%
8%
18%
12%
0%
10%
20%
30%
40%
50%
60%
ASP<2500 2500≤ASP<4000 4000≤ASP<6000 ASP≥6000
Haier
Little Swan
Midea
Siemens
39%
17%
10%8% 8%
3%1%
2%
3.6
-0.1
0.1
-0.5 -0.1 0.0
-1.4
-0.6
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
market share
market share change yoy (pct)
Note: The data source is China Market Monitor (CMM)
August 2019
12
63
78
9398
96
0
20
40
60
80
100
120
16H1 17H1 18H1 19H1 20H1
Revenue growth
• In 20H1, washing machine revenue decrease by
2.2% to RMB 9.6 billion, higher than 20H1 industry
average of -16.0% according to CMM (online &
offline combined)
• The 16-20H1 CAGR is 11.1%
• Sales volume of Casarte and Leader brand grew by
about 8% and 27% respectively
WM Financial Review - Revenue Growth
(¥100mn)
Revenue increase breakdown by volume and ASP
for each brandfor each product type
-15%
-10%
-5%
0%
5%
10%
15%
20%
front-load top-load
3%1%
-11% -11%
volume ASP
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Casarte Leader Haier
8%
27%
-2%
-10%
0% -11%
volume ASP
August 2019
13
WM Financial Review - Revenue Mix Change
Revenue mix change by product type
Revenue mix change by brand Revenue mix change by channel
• Leader brand’s revenue share increased by 3pct with
growth rate of above 25%
• Thanks to the contactless service provided by the
e-commerce channels, online revenue gained share
to 38% due to online traffic surge42%
42%
58%
58%
19H 1
20H 1
Top-load Front-load
84%
79%
7%
10%
11%
11%
19H 1
20H 1
Haier Leader Casarte
51%
47%
23%
15%
26%
38%
19H 1
20H 1
Haier franchise stores KA channels online
August 2019
14
Margin change Main factors
GPM decrease Mianly impact from COVID-19:1. Lower capacity utilization rate and higher unit manufacturing costs2. ① Declined offline traffic volume and less than expected growth rate of high-end products ②The increased proportion of mid-to-low-end products
S&D exp. % More exp. to warehouse and logistics given the unification of warehousing and distribution
G&A exp. % More R&D exp. Less conference fee and office expense
Others Supplier penalty fee decreased
9.0% -2.6%
-0.6% +0.3% -0.3%5.8%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
19H1 GPM S&D exp./Revenue G&A exp./Revenue others 20H1
WM Financial Review - Profitability
Segment results margin change
* The positive contribution from expenses items refers to expenses ratio decline.
August 2019
15
Agenda
➢ Overall Financial Review
➢ Washing Machine Segment
➢ Water Heater & Water Purifier
Segment
➢ Channel Services Segment
➢ Proposed Privatisation
Transaction Update
• Market
• Business Composition
• Financial Review
➢ Water Heater&Water Purifier Segment
August 2019
16
WH Business Market – Consumption Polarization
Market share
by product typeAccording to the offline data from China Market
Monitor
• Market share of gas products in terms of sales
increase by 1pct to 54% while the market share of
electric products in terms of sales remained the
same as 44%
• Although the 20H1 year on year growth rate of
overall offline market sales value declined, the
month by month growth rate has shown growing
momentum since March
44%54%
2%
electric
gas
others
Overall offline market sales value change by month
57,192
16,655
48,238
61,856
81,149 83,828
-24.0%
-68.6%
177.1%
27.8%20.2%
3.4%
-36.2% -54.5% -57.4%
-21.9%-14.3% -8.9%
-100.0%
-50.0%
0.0%
50.0%
100.0%
150.0%
200.0%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
1/1/2020 2/1/20202 3/1/20203 4/1/20204 5/1/20205 6/1/20206
Sales Value Month on Month Year on Year
Note: The data source is China Market Monitor (CMM)
August 2019
17
28%
27%
19%
3%3%
19%35%
26%
20%
3%
3%
12%
Haier AOS Midea Vanward Macro Others
18%
12%
10%
11%11%
38%
18%
17%
14%11%
10%
30%
AOS Media Haier Vanward Macro Others
19H1
23.5%
21.6%
14.9%
7.5%6.7%
5.9%
2.9%
4.3
-1.0
-1.5-0.1
-0.5
+0.4
-1.4 -2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
0%
5%
10%
15%
20%
25%
Haier AOS Midea Vanward Macro Rinnai whirlpool
market share
market share change yoy (pct)
WH Business Market – Haier’s Market Share
Online
20H1 Market Share Change by Channel
Offline
20H1 Market Share Change by Product type
Electric Gas
19H1 20H1 20H1
27.9%25.8%
9.8%
6.6% 6.0% 5.2%
+2.5
+1.8
-2.2
-0.8 -0.2-0.4
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Media Haier AOS Vanward Macro Rinnai
market share
market share change yoy (pct)
Note: The data source is China Market Monitor (CMM)
August 2019
18
• Volume was the major driver for each product type
in 20H1
• Heat-pump products achieved about 11% revenue
growth.
• Sales volume of Casarte and Leader brand grew by
over 77% and over 7% respectively
WH Financial Review - Revenue increase breakdown
Revenue increase breakdown by volume and ASP
for each brandfor each product type
-25%
-15%
-5%
5%
15%
25%
35%
heat-pump gas electric
23%
5%
13%
-10%-12% -13%
volume ASP
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Casarte Leader Haier
77%
7% 10%
-9% -12% -13%
volume ASP
August 2019
19
23%
29%
61%
59%
16%
13%
19H 1
20H 1
online Haier franchise stores KA channels
WH Financial Review - Revenue Mix Change
Revenue mix change by product type
Revenue mix change by brand Revenue mix change by channel
For 20H1:
• Solar&Heat Pump product achieved higher revenue
percentage
• Casarte gained noticeable revenue share
• The contribution of online revenue rose by 6pct67%
67%
22%
20%
11%
13%
19H 1
20H1
Electronics Gas Solar&Heat Pump
81%
79%
14%
13%
5%
8%
19H 1
20H1
Haier Leader Casarte
August 2019
20
84%
6%
5%3% 2%
RO ultra and nano filtration POE water dispenser drinking heater
(6)
(4)
(2)
0
2
4
6
8
WP Business Market Landscape
Market share change
by price range
Market share by product types
(pct)
According to the offline data from China Market
Monitor of 2020H1,
• the ASP of RO products is about 1.2 times of that of
ultra and nano filtration ones. (¥4,229 vs. ¥3,482 )
• Products with ASP above ¥6,000 and less than 3000
have been gaining market share, meaning that
consumers’ demand showed polarized trend
-2.00
-1.50
-1.00
-0.50
0.00
0.50
1.00
1.50
RO ultra andnano
filtration
waterdispenser
drinkingheater
POE
Market share change
by product type(pct)
Note: The data source is China Market Monitor (CMM)
August 2019
21
28%
15%13% 12%
10%
2%
4.1
-6.9
-2.1
-0.9
3.5
-2.2
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
0%
5%
10%
15%
20%
25%
30%
AOS Midea anjier qinyuan Haier whirlpool
market share
market share change yoy (pct)
WP Business Market – Haier’s Market Share
According to the offline data of CMM,
For 20H1,
• Haier ranked No.1 offline and No.5 offline in terms
of sales value, and the online and offline market
shares further climbed by 1pct and 3.8pct yoy
respectively.
• Haier’s ASP (¥3,478) was approximately equal to
the domestic average (¥3,365)
20H1 online market share change in terms of sales value
20H1 offline market share change in terms of sales value Market share by price range (CMM-offline)
low-mid-end mid-end mid-high-end high-end
25%21%
13%
2%3%
11%
33%
65%
12%15% 15%
7%
17% 18%
11%
2%
10%13%
12%
3%0%
10%
20%
30%
40%
50%
60%
70%
ASP<3000 3000≤ASP<4000 4000≤ASP<6000 ASP≥6000
Midea
AOS
Anjier
Qinyuan
Haier
14% 14%
11%10%
9%
4%
1.0
-1.7
1.7
-0.3-0.1
-2.6
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
0%
2%
4%
6%
8%
10%
12%
14%
16%
Haier Media Xiaomi qinyuan AOS anjier
market share
market share change yoy (pct)
Note: The data source is China Market Monitor (CMM)
August 2019
22
11.5% -1.4%
-1.7%
-0.1%+1.2% 9.5%
0%
2%
4%
6%
8%
10%
12%
14%
19H1 GPM S&D exp./Revenue G&A exp./Revenue others 20H1
WH&WP Financial Review - Profitability
Segment results margin change
* The positive contribution from expenses items refers to expenses ratio decline.
Margin change Main factors
GPM decrease Because of COVID-19, manufacturing costs increasedThe proportion of mid-to-low-end products has increased
S&D exp. % More exp. to warehouse and logisticsMore exp. to sales network of whole-house water using and network of BWT channel
G&A exp. % More R&D exp.More exp. on new factoriesLess conference fee and office expense
Others Government rewards increased
August 2019
23
Agenda
➢ Overall Financial Review
➢ Washing Machine Segment
➢ Water Heater & Water Purifier
Segment
➢ Channel Services Segment
➢ Proposed Privatisation
Transaction Update
• Market
• Business Flow Chart
• Financial Review
➢ Channel Services Segment
August 2019
24
-13.7%
-24.1%
-17.6% -15.6%-18.6%
-35.7%
-24.5%-31.0%
refridgerator air-con. washing machine water heater
Haier industry
21.7%
-17.3%
0.5%
-28.4%
-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%
online
offline
industry haier
Growth rate (offline) comparison by product type
Home Appliance Industry
Growth rate comparison by channel
Haier’s retail sales growth rate is
higher than industry in major product
type
Note 1: Online and offline revenue consist of
refrigerator, air-con, washing machine, water
heater
Note 2: The data source is China Market
Monitor (CMM)
2 2
22
1
1
August 2019
25
45%
42%
13%
54%39%
7%
JD Tmall Haier
28%
72%
38%
62%
Online Offline
Channel Services Financial Review - Revenue Breakdown
Revenue breakdown by product
• Refrigerator & Freezer, Washing machine,
Water heater further gained share
• For online business, revenue share of JD
gained share
Online revenue breakdown
19H1 20H119H1 20H1
Revenue breakdown by channel
30%
31%
25%
24%
23%
24%
10%
11%
6%
6%
6%
4%
19H1
20H1
Refrigerator & Freezer Air-con
Washing machine Water heater
TV Kitchenware & others
August 2019
26
1.8% -0.8%
+0.3%
+0.3% 0.0%1.6%
0%
1%
1%
2%
2%
19H1 GPM S&D exp./Revenue G&A exp./Revenue others 0H1
Channel Services Financial Review - Profitability
Segment results margin change
* The positive contribution from expenses items refers to expenses ratio decline
Margin change Main factors
GPM decrease Declined offline traffic volume and less than expected growth rate of high-end products The increased proportion of mid-to-low-end products
S&D exp. % Reduction of cost input and improvement of input-output efficiency
G&A exp. % Reduction of conference fee and office expense
Others Same as 19H1
August 2019
27
Agenda
➢ Overall Financial Review
➢ Washing Machine Segment
➢ Water Heater & Water Purifier Segment
➢ Channel Services Segment
➢ Proposed Privatisation Transaction
Update
➢ Proposed Privatisation
Transaction Update
August 2019
28
Proposed Privatisation Transaction
Note 1: If the EB to CB Proposal is not approved or otherwise does not become effective , and EB holders exercise their exchange right after the completion of the Privatisation Proposal , EB holders will become HEG’s shareholders and HEG may not be wholly owned by HSH after the privatisationNote 2: Assuming none of the HSH Exchangeable Bonds are exercised prior to the Scheme Record TimeNote 3: Other HEG Shareholders include the HEG Trustee and certain directors of HEG
After2:
HSH(A+H+D share)
Haier Group and Other HSH Concert Parties
(A+H+D)
Other public HSH D Shareholders
Other public HSH AShareholders
HEG(Delisted)
100%1
➢ Haier Smart Home Co., Ltd. (“HSH”) is proposing to put forward a proposal for the privatisation of Haier Electronics
Group Co., Ltd. (“HEG”) by way of a scheme of arrangement. Scheme Shareholders are HEG Shareholders other than
HSH and any of its wholly-owned subsidiaries. Scheme Shareholders include HCH (HK), an indirect subsidiary of
Haier Group, and Other HSH Concert Parties
➢ Upon the Scheme becoming effective, HEG will become a wholly-owned subsidiary of HSH1 and its shares will be
delisted from the Hong Kong Stock Exchange; HSH H Shares will then be listed on the Main Board of the Hong Kong
Stock Exchange by way of a listing by introduction; the Scheme Shareholders will become HSH H Shareholders
Other HEG Shareholders
Before:
11.95%
13.94%
0.78% 41.59%
Haier Group
Other Public HSH D
shareholders
Other Public HSH A
shareholders
Other HEG Shareholders3
3.25% 56.72% 19.13%
Haier Electric Appliances
51.20%20.90%
67%
13%
HEG(SEHK:1169)
HCH(HK)
HS (HK)
31.74%
100%
HSH(SSE:600690)(A+D share)
Scheme Shareholders
Other HSH Concert Parties
35.53% 41.34% 2.37% 20.76%
August 2019
2929
Privatisation Transaction -- Key Terms
Offeror • HSH, ticker: SSE: 600690 and 690D.DF
Transaction
Structure• By way of a scheme of arrangement under Section 99 of the Companies Act 1981 of
Bermuda (as amended)
Valuation and
Implied Premium
• The theoretical total value for each Scheme Share cancelled = 1.60 Share Exchange
Ratio * the mid-point of the valuation range estimated by the Valuation Adviser of
HK$18.47 per HSH H Share + Cash Payment of HK$1.95 for every Scheme Share
cancelled, which represents premium as follows:
Offeree • HEG, ticker: SEHK: 1169
Scheme
Shareholders
will receive
• New HSH H Shares: 1.60 new HSH H Shares for every Scheme Share cancelled under
the Scheme
• Cash Payment to be made by HEG only if the Scheme becomes effective: HK$1.95 for
every Scheme Share cancelled under the Scheme
August 2019
30
Consolidate Product Portfolio
Strong water heaters segment
HEG
For examples: smoother collaboration between HEG and GEA in water heaters business after the transaction
Leverage on HSH’s global platform in the development of washing machines and water appliance business
Global production optimization
12
Improve Efficiency and Reduce Cost
Enhance operational efficiency and reduce cost through end
to end digital operation
3
Accelerate Development of Washing Machines and Water Appliance Overseas
Provide full scenario and customized user experience
HSH Product
HEGProduct
Experience cloud platform
Develop Experiential Cloud4
FullProcess Integration
Business of HEG pre transaction Business of HSH pre transaction (excluding HEG)
Upon the completion of the transaction, all product categories could utilize a unified experiential cloud, through which HSH Group could accelerate online and offline integration and provide users with customized services during the entire life cycle
Smar
t H
om
e S
olu
tio
ns
Internet of Air
Internet of Water
Internet of Clothing,
Washing and Caring
Internet of Kitchen
Manufacturing Manufacturing
E-commerce, franchised stores and logisticsGome、Suning
Experience cloud platform
R&DR&D
R&D system
Procurement
Brand
Potential Synergies of Privatisation Transaction
-- Enhance operational efficiency
August 2019
31
Potential Synergies of Privatisation Transaction
-- Increase shareholder return
40%
Annual Dividend/Profit Attributable to the
Owners of the Company(%)
2015 2016 2017 2018 20195-year Avg.
HSH 30.1 30.0 30.0 29.9 30.1 30.0
HEG 10.4 15.3 20.2 24.7 16.7 17.4
Dividend Pay-out Ratios of HSH and HEG in 2015-20191
Aggregate capital allocation
HSH
HEG
Onshore
Offshore
Onshore
Dividend
Dividend
Operating Entity of
HEG
Dividend
tax under
red-chip
structure
Optimize capital structure
• Reduce leverage ratio
Increase the dividend pay-out ratio in 3 years to1
Optimize Capital Allocation1
Improve Shareholder Return2
Note 1: Calculated based on audited financial figures of HSH and HEG for FY2015-2019 by total cash dividends and net profit attributable to ordinary shareholders
August 2019
32
Potential Synergies of Privatisation Transaction
-- Improve Corporate Governance
Connected Party Procurement by HEG from HSH and its associates 2
As % of COGS
Note 1: Environment, Social Responsibility and Corporate Governance
Note 2: HEG’s information. Figures derived from management accounts on an unrestated basis; Connected party procurement as % of COGS and connected party sales as % of revenue are higher in 2019 due to deconsolidation of logistic business; Connected party procurement includes purchase of finished goods, equipment and raw materials, and mould; Connected party sales includes export sales of products after expense and domestic sales of products
Design Incentive Programme for Global Employees Raise ESG Standards
Commit to sustainable business
development
Comply with the disclosure
requirements of the Task Force on
Climate-related Financial Disclosures
(TCFD) and standards of the
Sustainable Accounting Standards
Board (SASB), to constantly improve
information disclosure standard
Reduce Connected Party Transactions
1 3
2
(RMB mn)
Connected Party Sales by HEG to HSH and its associates 2
As % of Revenue
(RMB mn)
The listing of H share accommodates our
desire for a global and flexible approach in
retaining the best of the talent.
The Enlarged HSH Group attaches great
importance in aligning management
compensation with shareholders’ return,
and the programme will be designed to
reflect immediate performance and longer
term sustainability.
Reap the benefits of simpler corporate structure
72.2% 73.9% 89.2%2
46,915
51,770 52,917
2017 2018 2019
2.4% 2.5% 3.8%2
1,8552,106
2,849
2017 2018 2019
August 2019
33
Thanks! ir@haier.hk
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