Company Code: 600690.SH 690D.DE Short Name: Haier Smart Home

Haier Smart Home Co. Ltd.2025 Interim Report

Haier Smart Home Co. Ltd. Interim Report 2025Important Notice

I. The Board of Directors directors and senior management of Haier Smart Home Co. Ltd. (the

“Company”) are individually and collectively responsible for the content set out therein and

hereby assure that the content set out in the interim report is true accurate and complete

and free from any false record misleading representation or material omission.II. All directors attend the Board of Directors.III. The interim report is unaudited.IV. Li Huagang (legal representative of the Company) Sun Jiacheng (chief financial officer of the

Company) and Ying Ke (the person in charge of accounting department) hereby certify that

the financial report set out in the interim report is true accurate and complete.V. Proposal of profit distribution or proposal of converting capital reserves into share capital for

this reporting period resolved and passed by the Board

Proposal of profit distribution for the reporting period are examined and reviewed by the Board: to

declare a cash dividend of RMB2.69 per 10 shares (tax inclusive) to all shareholders based on the total

number of shares held on record date and after deducting the repurchased shares from the

repurchase account upon the execution of distribution proposal with proposed distribution amounting

to RMB2506684210.62 (tax inclusive). The proportion of cash distribution is 20.83% of the net profit

attributable to shareholder of parent company of the Company for the current half-year. If there is any

change in the total share capital of the Company during the period from the date of this report to the

record date of the equity distribution the total distribution amount will be remained unchanged with

corresponding adjustment to the proportion of distribution per share.VI. Disclaimer in respect of forward-looking statements

√ Applicable □ Not Applicable

Forward-looking statements such as future plans development strategies as set out in this report do

not constitute our substantial commitment to investors. Investors are advised to pay attention to

investment risks.VII. Is there any fund occupation by controlling shareholders and other related parties for

non-operational purposes

No

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

procedures

No

IX. Are there more than half of the Directors could not warrant the truthfulness accuracy and

completeness of the interim report disclosed by the Company

No

Haier Smart Home Co. Ltd. Interim Report 2025 1Important Notice

X. Important risk warnings

For the possible risks which the Company may encounter please refer to the relevant information set

out in the section of ‘MANAGEMENT DISCUSSION AND ANALYSIS’ in this report.XI. Others

□ Applicable √ Not Applicable

Chairman of the Board: LI Huagang

Haier Smart Home Co. Ltd

28 August 2025

2 Haier Smart Home Co. Ltd. Interim Report 2025Contents

SECTION I — DEFINITIONS 4

SECTION II — GENERAL INFORMATION OF THE COMPANY AND KEY FINANCIAL INDICATORS 6

SECTION III — MANAGEMENT DISCUSSION AND ANALYSIS 12

SECTION IV — CORPORATE GOVERNANCE ENVIRONMENTAL AND SOCIAL 56

SECTION V — SIGNIFICANT ISSUES 62

SECTION VI — CHANGES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS 74

SECTION VII — RELEVANT INFORMATION OF CORPORATE BONDS 81

SECTION VIII — FINANCIAL REPORT 84

I. 2025 Interim Report of Haier Smart Home Co. Ltd. with signature of the

legal representative.II. Financial statements with signatures or seals of the person in charge of the

Documents Available entity chief accountant and person in charge of accounting department.for Inspection

III. All documents publicly disclosed in China Securities Journal Shanghai

Securities News Securities Daily Securities Times and on the website of

the Shanghai Stock Exchange (www.sse.com.cn) during the reporting

period.Haier Smart Home Co. Ltd. Interim Report 2025 3Section I Definitions

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

DEFINITION OF FREQUENTLY USED TERMS

CSRC China Securities Regulatory Commission

SSE Shanghai Stock Exchange

The Company Haier Smart Haier Smart Home Co. Ltd its original name is “Qingdao Haier Co. Ltd.”

Home and the original short name is “Qingdao Haier”

Four Major Securities China Securities Journal Shanghai Securities News Securities Times

Newspapers Securities Daily

Haier Electronics 1169 Haier Electronics Group Co. Ltd. (a company originally listed in Hong Kong

stock code: 01169.HK) a subsidiary as accounted for in the consolidated

statement of the Company. Haier Electronics has been privatized by way of H

shares issuance on 23 December 2020 and became a wholly-owned

subsidiary of the Company since then.GE Appliances Household appliances assets and business of General Electric Group which

are currently owned by the Company.FPA Fisher & Paykel Appliances Holdings Limited (Chinese Name: 斐雪派克) was

established in 1934 and is known as the national appliance brand of New

Zealand the global top-level kitchen appliance brand and the famous luxury

brand of the world. It has products including ventilator gas stove oven

dishwasher microwave oven built-in freezer washing machine clothes dryer

and etc. Its business covers over 50 countries/regions across the world. FPA

is wholly-owned subsidiary of the Company.Candy Candy Group (Candy S.p.A) is an international professional appliances

manufacturer from Italy. Since its establishment in 1945 it has been

committed to enabling the global users to enjoy a higher quality of life

through innovative technologies and quality services. Candy Group has been

prestigious in the global market with users all over the world via its various

self-owned professional household appliance brands. In January 2019 Candy

became a wholly-owned subsidiary of the Company.Euromonitor Euromonitor established in 1972 is the leading strategic market information

supplier and has over 40-years of experience in respect of publishing market

report commercial reference data and on-line database. They create data and

analysis on thousands of products and services around the world.

4 Haier Smart Home Co. Ltd. Interim Report 2025Section I Definitions

GfK GfK Group the world’s leading market research company. After a long period

of development and accumulation GfK Group’s global market research

business covers consumer durables research consumer research media

research healthcare market research and special studies.All View Cloud All View Cloud (AVC) is a big data integrated solution provider to the smart

home field providing enterprises with big data information services regular

data information services and special data services.IEC The International Electrotechnical Commission. Founded in 1906 it is the

world’s first organization for the preparation and publication of international

electrotechnical standardization and is responsible for international

standardization for electrical engineering and electronic engineering. The goals

of the commission include: to effectively meet the needs of the global market;

to ensure that the standards and conformity assessment programs are

applied globally in a prioritized manner and to the greatest extent; to assess

and improve the quality of products and services involved in its standards; to

create conditions for the common use of complicated systems; to improve the

effectiveness of the industrialization process; to improve human health and

safety and to protect the environment.IEEE The Institute of Electrical and Electronics Engineers an international

association of electronic technology and information science engineers is

currently the largest non-profit professional technology society in the world. It

is committed to the development and research of electrical electronic

computer engineering and science-related fields and has now developed into

an international academic organization with great influence in terms of the

fields of space computer telecommunications biomedicine power and

consumer electronics.Model of Rendanheyi The concept of “Achieving win-win via Rendanheyi (人單合一) “is the(人單合一) guarantee of Haier’s sustainable operation and the driving force of the

Company featuring a self-motivated and empowering corporate culture. “Ren”

is an employee who has the spirit of entrepreneurship and innovation; “Dan”is to create value for users. The “Rendanheyi (人單合一) “management modelencourages employees to create value for users with an entrepreneurial

mindset and to achieve self-value in line with the those of the Company and

its shareholders.APF Annual Performance Factor: a core indicator of air conditioner energy

efficiency as stipulated by national standards. It is calculated by simulating

operating conditions across different seasons and temperature conditions

throughout the year calculating the ratio of total cooling/heating capacity to

total power consumption. A higher APF value indicates that the air

conditioner consumes less power for the same output reflecting higher

energy efficiency.Haier Smart Home Co. Ltd. Interim Report 2025 5Section II General Information of the

Company and Key Financial Indicators

I. INFORMATION OF THE COMPANY

Chinese name 海尔智家股份有限公司

Chinese short name 海爾智家

English name Haier Smart Home Co. Ltd.English short name Haier Smart Home

Legal representative Li Huagang

II. CONTACT PERSON AND CONTACT INFORMATION

Secretary to Representative of Company Secretary

the Board securities affairs (D/H shares) Others

Name Liu Xiaomei Liu Tao Ng Chi Yin Trevor Global Customer

Service Hotline

Address Department of Department of Room 1908 19/F /

Securities of Haier Securities of Haier Harbour Centre

Smart Home Co. Smart Home Co. 25 Harbour Road

Ltd. Haier Science Ltd. Haier Science Wan Chai

and Technology and Technology Hong Kong

Innovation Innovation

Ecological Park Ecological Park

No. 1 Haier Road No. 1 Haier Road

Qingdao City Qingdao City

Tel 0532-8893 1670 0532-8893 1670 +852 2169 0000 4006 999 999

Fax 0532-8893 1689 0532-8893 1689 +852 2169 0880 /

Email finance@haier.com finance@haier.com ir@haier.hk /

6 Haier Smart Home Co. Ltd. Interim Report 2025Section II General Information of the Company and Key Financial Indicators

III. SUMMARY OF THE CHANGES IN GENERAL INFORMATION

Registered address Haier Industrial Park Laoshan District Qingdao City (now known as

Haier Science and Technology Innovation Ecological Park Laoshan

District Qingdao City)

Historical change of the Prior to the Company’s listing in 1993 the registered address of the

registered address Company was No.165 Xiaobaigan Road Sifang District Qingdao City

Shandong Province and has changed to the current address since

1994 during which the address name was adjusted in line with the

change of name of the industrial park but the actual site remains

unchanged.Business address Haier Science and Technology Innovat ion Ecological Park

Laoshan District Qingdao City

Postal code of the 266101

business address

Website https://smart-home.haier.com/cn/

Email 9999@haier.com

Query index for any Not applicable

changes during the

reporting period

IV. MOVEMENT OF PLACE FOR INFORMATION DISCLOSURE AND

DEPOSIT

Designated newspaper for Shanghai Securities News Securities Times China Securities Journal

information disclosure Securities Daily

Website for publishing www.sse.com.cn; https://smart-home.haier.com/cn/; www.xetra.com

interim report www.dgap.de; https://www.hkexnews.hk

Deposit place of interim Department of Securities of Haier Smart Home Co. Ltd.report Haier Science and Technology Innovat ion Ecological Park

No. 1 Haier Road Qingdao City

Query index for any Not applicable

changes during the

reporting period

V. SUMMARIZED INFORMATION OF SHARES OF THE COMPANY

Stock Short

Stock Exchange of Stock Short Name Before

Type of Shares Shares Listed Name Stock Code Variation

A share Shanghai Stock Haier Smart 600690 Qingdao Haier

Exchange Home

D share Frankfurt Stock Haier Smart 690D Qingdao Haier

Exchange Home

H Share Hong Kong Stock Haier Smart 6690 /

Exchange Home

Haier Smart Home Co. Ltd. Interim Report 2025 7Section II General Information of the Company and Key Financial Indicators

VI. OTHER RELATED INFORMATION

□ Applicable √ Not Applicable

VII. K EY ACCOUNTING DATA AND FINANCIAL INDICATORS OF THE

COMPANY

(I) Key accounting data

Unit and Currency: RMB

Increase/decrease

for the reporting

period compared

The corresponding period with the

For the reporting of last year corresponding

period After period of last year

Key accounting data (January-June) adjustment Before adjustment (%)

Operating revenue 156494034448.85 141982482605.75 135622549121.01 10.22

Total profit 14997056148.11 12980773371.76 12739064636.61 15.53

Net profit attributable to shareholders

of the listed Company 12032995820.27 10409642540.63 10420218389.22 15.59

Net profit after deduction of non-

recurring profit or loss attributable

to shareholders of the listed

Company 11702408556.70 10160504902.38 10160504902.38 15.18

Net cash flows from operating

activities 11139045781.34 8424060603.43 7818257937.26 32.23

Increase/

decrease as

at the end of

the reporting

period

compared

As at the end of As at the end of last year with the end

the reporting After Before of last year

period adjustment adjustment (%)

Net assets attributable to shareholders

of the listed Company 114894291018.55 111778874767.22 111366118999.17 2.79

Total assets 301700068337.08 290736357978.75 290113822824.61 3.77

8 Haier Smart Home Co. Ltd. Interim Report 2025Section II General Information of the Company and Key Financial Indicators

(II) Key financial indicators

Increase/

decrease for the

reporting period

The corresponding period compared with

For the reporting of last year the corresponding

period After Before period of last year

Key financial indicators (January-June) adjustment adjustment (%)

Basic earnings per share (RMB/share) 1.30 1.13 1.13 15.04

Diluted earnings per share (RMB/share) 1.29 1.12 1.12 15.18

Basic earnings per share after deducting

non-recurring profit or loss

(RMB/share) 1.27 1.10 1.10 15.45

Increased by 0.52

Weighted average return on net assets (%) 10.34 9.82 9.67 percentage points

Weighted average return on net assets after Increased by 0.62

deducting non-recurring profit or loss (%) 10.05 9.43 9.43 percentage points

Explanation of the key accounting data and financial indicators of the Company

√ Applicable □ Not Applicable

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.VIII. DIFFERENCES IN ACCOUNTING DATA UNDER DOMESTIC AND

OVERSEAS ACCOUNTING STANDARDS

√ Applicable □ Not Applicable

(I) Difference in net profit and net assets attributable to shareholders of the listed

company in financial statements as disclosed in accordance with International

Accounting Standards and Chinese Accounting Standards

□ Applicable √ Not Applicable

There is no difference between the net profit and net assets attributable to shareholders of the

listed company presented in the consolidated financial statements as disclosed in accordance

with International Accounting Standards and Chinese Accounting Standards by the Company.Haier Smart Home Co. Ltd. Interim Report 2025 9Section II General Information of the Company and Key Financial Indicators

(II) Difference in net profit and net assets attributable to shareholders of the listed

company in financial statements as disclosed in accordance with overseas

accounting standards and Chinese Accounting Standards

□ Applicable √ Not Applicable

Apart from the financial statements prepared in accordance with International Accounting

Standards the Company has not prepared financial statements in accordance with other

overseas accounting standards.(III) Explanation on difference in domestic and overseas accounting standards

□ Applicable √ Not Applicable

IX. NON-RECURRING PROFIT OR LOSS ITEMS AND AMOUNT

√ Applicable □ Not Applicable

Unit and Currency: RMB

Non-recurring profit and loss items Amount

Profit or loss from disposal of non-current assets including the write-off of

provision for asset impairment –25721740.02

Government subsidies included in current profit or loss except for government

subsidies that are closely related to the Company’s normal business

operations conformed to requirements of state policies and granted

according to specific criteria and have a sustained impact on the Company’s

profit or loss 511165290.49

Profit or loss arising from changes in fair value of financial assets and financial

liabilities held by non-financial entities and profit or loss arising from disposal

of financial assets and financial liabilities except for effective hedging activities

related to the Company’s normal business operations 57589058.88

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 3593306.97

Other non-operating income and expenses except the aforementioned items –121916440.93

Less: Effect of income tax –70186916.68

Effect of minority equity interest (After Tax) –23935295.14

Total 330587263.57

10 Haier Smart Home Co. Ltd. Interim Report 2025Section II General Information of the Company and Key Financial IndicatorsFor the Company’s recognition of items that are not listed in the “Explanatory Announcement onInformation Disclosure for Companies Offering Their Securities to the Public No.1 — Non-recurringProfit or Loss” as non-recurring profit or loss items and the amount of which is significant and fornon-recurring profit or loss items as illustrated in the “Explanatory Announcement on InformationDisclosure for Companies Offering Their Securities to the Public No.1 — Non-recurring Profit or Loss”

designated as recurring profit or loss items reasons shall be specified.□ Applicable √ Not Applicable

X. COMPANIES WITH EQUITY INCENTIVES AND EMPLOYEE STOCK

OWNERSHIP PLANS MAY CHOOSE TO DISCLOSE NET PROFITS

AFTER DEDUCTION OF THE IMPACT OF SHARE-BASED PAYMENTS

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase/

decrease for

the reporting

period

compared

For the The corresponding period with the

reporting of last year corresponding

period After Before period of last

Key accounting data (January-June) adjustment adjustment year (%)

Net profit after deduction of the

impact of share-based payment 12264041860.05 10572191979.56 10405917567.19 16.00

XI. OTHERS

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 11Section III Management Discussion and

Analysis

I. INTRODUCTION OF THE INDUSTRY WHERE THE COMPANY OPERATES

AND ITS MAJOR BUSINESS DURING THE REPORTING PERIOD

Industry Overview of the First Half of 2025

1. China Market

The nationwide rollout of the home appliance trade-in programs stimulated demand. According to

AVC omni-channel data China’s home appliance market (excluding 3C products) recorded

RMB453.7 billion in retail sales in H1 2025 up 9.2% year-on-year.Air Conditioners

Market demand was boosted by hotter-than-usual summer temperatures and expanded

household subsidies (from one unit in 2024 to three units in 2025). Retail sales volume rose

15.6% to 38.45 million units with sales value up 12.4% to RMB126.3 billion (AVC). Upgrades

were driven by health and comfort features such as multi-outlet airflow fresh air and

sterilization with fresh air penetration in offline channels nearing 10%. Specialized products such

as “air-washing” ACs gained traction. High airflow and ultra-high APF efficiency became key

selling points with Level 1 energy-efficiency models accounting for 98% of online and 95% of

offline sales.Refrigerators

The trade-in program supported steady growth. In H1 2025 retail sales reached RMB67.28

billion up 3.5% with sales volume of 19.889 million units up 2.7% (AVC). The product mix

continued shifting toward French-door and cross-door models which represented over 60% of

online sales and nearly 80% of offline sales. Flush-mount refrigerators expanded rapidly with the

share rising to 52.1% in the first half.Washing Machines

The segment grew steadily supported by essential demand and rising adoption of dryers mini

washers and garment care appliances. Zone-washing models and Leader’s innovative triple-drum

Lazy Wash (懶人洗) washing machines drove product mix upgrades and consumer demand.According to AVC retail sales reached RMB47.6 billion up 11.5% with sales volume of 21.03

million units up 10.1% year-on-year. Dryers recorded RMB7.6 billion in sales (+13.7%) on 1.39

million units (+16.3%).Kitchen Appliances

Driven by continued subsidies the segment maintained steady growth. According to AVC retail

sales of kitchen and bathroom products grew 3.9% and volumes rose 5.4% year-on-year.Lifestyle-driven categories such as dishwashers and built-in microwave-steam-oven combos

performed well with sales up 6.1% year-on-year supported by policy expansion and product

upgrades. In contrast integrated stoves declined 27.6% due to weak demand and a sluggish

property market.Key trends included larger capacity (18-place dishwashers 70L+ steam ovens) greater

professional functionality (integration and specialization) higher efficiency in washing cooking

disinfection and ventilation and more lifestyle-oriented designs.

12 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Water Heater Industry

Both electric storage and gas water heaters remained under pressure. In H1 2025 electric

storage heaters posted sales of RMB10.6 billion (–1.0%) with volume down 1.6% to 8.13 million

units. Gas heaters reached RMB13.1 billion (+2.3%) with volume up 0.7% to 6.05 million units

(AVC). Demand for Level 1 energy efficiency and health-focused models — such as innovative

inner tank designs and mineral-enriched water heaters — continued to rise. Large-capacity and

premium models also grew in importance. Innovation in superconductivity and energy storage

spurred breakthroughs in electric heaters while gas heaters gained recognition for improved

design faster heating and enhanced comfort.Industry Trends

The home appliance industry is growing steadily with ongoing product upgrades while consumer

demand is increasingly polarized between premium and value-for-money segments putting the

mid-range under pressure. Diversified sales channels such as Douyin and Xiaohongshu together

with more transparent information are accelerating the shift from channel-driven (B2B) to

direct-to-consumer (D2C) models. Rising health awareness is driving specialized demand and the

emergence of niche categories such as beauty refrigerators sideboard refrigerators

zone-washing machines and kitchen air conditioners. Content-driven e-commerce and

professional reviews are shaping consumer decisions while price convergence is making

low-price strategies less effective and increasing the pressure on retail capabilities. Short videos

and live streaming have become key touchpoints with content marketing social sharing and

cross-brand collaborations emerging as new growth drivers. As the younger generation emerges

as the core consumer segment demand for emotional value is rising prompting companies to

strengthen brand building expand new media engagement and launch trend-setting products to

improve conversion and sustain growth.

2. Overseas Markets

In the first half of 2025 global home appliance markets showed a clear divergence. Developed

markets were weighed down by high interest rates and persistent inflation keeping demand

subdued with only modest signs of stabilization while parts of the emerging world

continued to grow. U.S. tariff hikes further reshaped global supply chains and accelerated

the trend toward nearshoring pushing companies to add capacity closer to end markets.North America: The market remained under pressure from high interest rates inflation and a

weak housing sector. In H1 2025 large home appliance shipments fell 0.8% year-on-year while

retail sales value inched up 0.5%.Europe: The market showed signs of gradual recovery. According to GfK in Italy the UK

France and Spain the sales volume of major appliances reached 17.4 million units up 2.0%

year-on-year while retail sales value rose 0.4% to EUR 7.7 billion. The average unit price was

EUR 443 down EUR 7.1 year-on-year.South Asia: India’s market grew about 2.4% in retail sales value though sales of air

conditioners and refrigerators fell in April — May due to weather conditions. In Pakistan sales

volume rebounded strongly rising 25% year-on-year with high-efficiency products gaining

significant traction—inverter refrigerators accounted for 75% of sales and inverter air

conditioners for 94%.Haier Smart Home Co. Ltd. Interim Report 2025 13Section III Management Discussion and Analysis

Southeast Asia: Overall demand softened. In the Philippines both sales volume and retail

sales value posted slight growth remaining stable. In contrast Thailand Indonesia and

Malaysia saw volume declines of 7.4% 6.6% and 6% respectively while Vietnam’s sales

volume fell nearly 10% pressured by weaker-than-expected summer temperatures and subdued

consumer spending.Middle East and Africa: Regional markets maintained growth. In Egypt retail sales value

reached USD 2.3 billion up 3% year-on-year. In the Gulf states value rose 9% to USD 1.8

billion. In Saudi Arabia value stood at USD 3.0 billion down 3% year-on-year due to demand

volatility.Australia and New Zealand:

o Australia: Consumer spending remained cautious under high interest rates and rising

inflation. Sales volume of major home appliances grew 0.8% year-on-year while retail

sales value fell 2.0%. Currency fluctuations and higher living costs led to price

adjustments with consumers increasingly focused on value for money.o New Zealand: The economy grew slowly and inflation stayed elevated weighing on

discretionary spending. While sales of high-efficiency products increased overall demand

was mixed. Traditional retailers remained stable while new retail entrants intensified

competition creating a more diversified market landscape.Japan: The refrigerator freezer and washer markets contracted slightly. Overall sales volume

declined 1.4% year-on-year while sales value dropped 1.3%. Refrigerator sales volume fell

2.5% washer sales volume fell 0.9% while freezer sales volume grew 2.6%. Structural shifts

driven by an aging population are supporting demand for high-value user-friendly products but

declining real wages and rising prices are constraining overall consumption.Industry Outlook for the Second Half of 2025

1. China Market

Home appliances have become indispensable to modern living covering food clothing care

housing and bathing. High-quality products enhance daily life and as AI and smart-home

integration advance appliances are becoming more embedded in everyday routines.China is already one of the world’s largest consumer markets for home appliances with a

substantial installed base. According to AVC total demand (excluding 3C) reached 647.2 million

units in 2024 of which major appliances accounted for 279.82 million units. On average

households purchase about 0.6 large appliances annually equivalent to RMB1827 in spending.As categories expand and premiumization and smart features accelerate per-household spending

is expected to continue rising supporting steady growth for the industry.

2. Overseas Markets

Developed markets are likely to recover only gradually under the weight of higher rates and

inflation but demand will continue to gravitate toward energy-efficient smart and premium

products with online channels gaining further share. Cost headwinds including U.S. tariffs will

14 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

remain a challenge. Emerging markets should continue to benefit from urbanization favorable

demographics and consumption upgrades with penetration still rising and strong growth in

demand for smart and green appliances.Explanation of the company’s new material non-core business during the reporting period

□ Applicable √ Not Applicable

II. DISCUSSION AND ANALYSIS ON OPERATIONS

Founded in 1984 the Company is committed to being an enterprise of its time. Through relentless

innovation and iterations we seize opportunities in the industry by continuously launching innovative

products that steer market development. After more than 40 years the Company has become a global

leader in the major home appliance industry as well as a pioneer in global smart home solutions.Market Position

* Global leader of the major home appliance industry: According to data from Euromonitor — an

authoritative market researcher the Company ranked first in terms of sales volume in global

major appliance market for 16 consecutive years. The Company has a global portfolio of brands

including Haier Casarte Leader GE Appliances Candy Fisher & Paykel and AQUA. From 2008

to 2024 Haier brand refrigerators and washing machines ranked first among global major home

appliance brands in sales volume for 17 and 16 consecutive years respectively.* Pioneer of global smart home solutions: Capitalizing on our full-range home appliances products

the Company is recognised by Euromonitor as one of the first in the industry to introduce smarthome solutions. San Yi Niao remained committed to the mission of “providing smart homeexperience for a better home” by establishing the three core capabilities of innovations in smart

home scenario solutions experiential scenario stores and breakthroughs in Smart Home’s main

platform we have been dedicated to providing proactive professional in-depth and customised

smart home solutions for users.Business Layout

Over the years the Company has established a business layout that includes smart solutions for

amongst others food storage and cooking laundry air and water the Overseas Home Appliance and

Smart Home Business and Other Business.* Household food storage and cooking solutions: Through selling products such as refrigerators

freezers kitchen appliances in global market as well as providing one-stop smart kitchen

scenario solutions and ecosystem solutions including smart cooking and nutrition planning the

Company fully addresses users’ need for convenient healthy and tasteful gourmet experiences.For example，Casarte developed its proprietary AI Eye Refrigerator which accurately recognisesover 210 types of ingredients enabling automatic management of inventory and shelf life. Its AI

nitrogen-oxygen intelligent control and fast and deep-freezing technology ensure freshness is

locked in for 7 days and tenderness preserved for 30 days. The flush-mounted design combined

with customised multi-material finishes seamlessly integrates into the kitchen décor.Haier Smart Home Co. Ltd. Interim Report 2025 15Section III Management Discussion and Analysis

* Household laundry management solutions: Haier’s washing machine focuses on applying original

technologies to directly address users’ pain points in home living scenarios and create new

experiences and value for users. With a product lineup of washing machines tumble dryers all-

in-one laundry machines garment care machines and heated drying racks the Company has

evolved from selling individual products to providing scenario-based solutions and offering end-

to-end laundry care services. For example the Casarte AI Eye Washing Machine accurately

identifies fabric types using AI automatically matching optimal washing and care programmes

while providing early warnings of colour transfer risks. The synergy of AI direct algorithms and

technology equips the washing machine with “Smart Home” features capable of instantly

adjusting drum speed within 0.01 seconds and precisely performing rapid stops at specific levels

achieving gentler and scientifically optimised tumbling that prevents fibre damage caused by

excessive agitation.* Air solutions (Internet of air):

Home air-conditioners: Through the double drivers of “technology and scenarios” the Company

sells our products (such as home air-conditioners and fresh air systems) to markets worldwide

and provides full-cycle air-conditioning solutions that include design installation and services with

products featuring smart system based inter-connectivity we have for example formulated

all-spaces all-scenarios intelligent air-conditioning solutions consist of multiple air-conditioner and

purifier coordination adaptive air flow air quality monitoring and air disinfection thereby

delivering a healthy and comfortable experience at home and during commuting that caters to

users’ needs in terms of air temperature humidity and quality. One notable example is Casarte’s

dynamic five-constant system a high-end whole-house air solution designed for villas and large

apartments. It limits temperature fluctuations across the entire space to ≤0.5oC and maintains

humidity levels between 40% and 60%. Employing multi-layer filtration alongside segregated clean

and dirty zones it provides forest-grade fresh air operating at noise levels below 30 decibels.Smart buildings: The Company is committed to becoming a leader in efficient sustainable and

smart building solutions based on China’s “carbon peaking and carbon neutrality” strategy.Focusing on business segments such as smart control environment energy and system

integration of buildings the Company provides green and smart building solutions integrating

“technology + experience + space” for government and public buildings commercial uses

railways schools and hospitals. In areas such as magnetic levitation centrifugal chillers IoT-

based multi-split system and air-to-water heat pump not only have Haier occupied a pivotal

market position in China but also have achieved remarkable success globally.

16 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

* Household water solutions (Internet of water): Through providing worldwide users with electric water

heaters gas water heaters solar water heaters air energy heat pump water heaters POE water

purifiers POU water purifiers water softening equipment Haier offers smart water solutions

including interactions between water heaters and purifiers and between heating appliances and

water heaters so as to comprehensively cater to users’ needs for water purification softening

and heating. One example is the industry’s pioneering AI dual-cycle constant temperaturetechnology which utilise “heat storage constant temperature chamber + secondary heatexchange internal circulation” to achieve zero temperature difference when turning the water off

and on again maintaining water temperature fluctuations within ≤0.1oC. Equipped with stepless

frequency conversion water servo technology it dynamically balances water pressure fluctuations

ensuring stable water temperature even when multiple devices use water simultaneously.Additionally the 56oC high-temperature sterilisation mode paired with bipolar ion sterilisation

effectively eliminates 99.9% of Escherichia coli and Staphylococcus aureus making it the

preferred choice for households with mothers and infants.In 2024 the Company acquired Kwikot an established water heater brand in South Africa. With

its strong market reputation and well-established sales channels the acquisition enables the

Company to rapidly expand its water heater business in South Africa market boosting brand

awareness and market share. This acquisition has further strengthened Haier Smart Home’s

business presence in the overseas water heater segment.Global Market Presence

The Company manufactures and sells a comprehensive portfolio of home appliance products and

provides value-added services in more than 200 countries and regions including North America

Europe South Asia Southeast Asia Australia New Zealand Japan Middle East and Africa.To overseas markets the Company has been manufacturing and selling proprietary appliance products

catering for local users’ demands for more than 20 years. During the time a number of acquisitions

contributed to our growth including acquisitions of Haier Group Corporation’s overseas white goods

business (which included Sanyo Electric Co. Ltd.’s white goods business in Japan and Southeast

Asia) in 2015 home appliances of GE in the US in 2016 Fisher & Paykel in 2018 and Candy in

2019.

In 2024 Haier Smart Home added another two brands namely CCR and Kwikot under its belt

through mergers and acquisitions. The CCR acquisition has enabled Haier Smart Home to push

forward its comprehensive refrigeration chain strategy and broadened its business reach to the

commercial refrigeration segment providing strong support for the Company’s development in the

European market while further promoting the development of the commercial refrigeration sector in

Asia-Pacific and other regions. The acquisition of Kwikot a century-old water heater brand in South

Africa has strengthened Haier Smart Home’s business presence in the water heater sector and further

facilitated the rapid penetration of white goods business into the South African market.Haier Smart Home Co. Ltd. Interim Report 2025 17Section III Management Discussion and Analysis

At present the overseas business of the Company has entered a stage of healthy growth having

achieved a multi-brand cross-product and cross-regional presence on a global basis. According to

Euromonitor the Company’s market shares (by retail volume) for major home appliances in key regions

around the globe in 2024 were as follows: ranked 1st in Asia in terms of retail volume with a market

share of 25.9%; ranked 1st in North America with a market share of 24.5%; ranked 1st in Australia

and New Zealand with a market share of 15.9%; and ranked 3rd in Western Europe with a market

share of 8%.Other Businesses

Building on our established smart home businesses the Company has also developed small home

appliances cleaning robots RRS Logistics channel distribution and other businesses. In particular the

small home appliance business primarily involves small home appliances designed by the Company

produced by outsourced third-party manufacturers and sold under the Company’s brands. It serves to

enrich our smart home solutions product mix. RRS Logistics primarily engaged in the provision of

integrated supply chain management solutions for clients in the home appliance and home furnishing

industries. The channel distribution business primarily offers distribution services for products such as

televisions and consumer electronics for Haier Group or third-party brands leveraging the Company’s

sales network.Honours and Recognitions

During the period Haier Smart Home once again secured a place on the Fortune Global 500 list

rising 17 positions compared to 2024 and marking its seventh consecutive year on the list

demonstrating robust global competitiveness. Additionally the Company has been named one of

Fortune magazine’s “World’s Most Admired Companies” for seven consecutive years standing as the

only company from the home appliance and home furnishing sector across Eurasia and outside the US

to be included. Moreover Haier Smart Home has ranked among BrandZ 2025’s Top 100 Most

Valuable Global Brands for seven consecutive years solidifying its position as the world’s only IoT

ecosystem brand.In terms of corporate social responsibility and sustainable development Haier Smart Home has

delivered outstanding performance. The Company has topped the Fortune China ESG Impact list in its

industry for four consecutive years and has been successfully included in three Hang Seng ESG

indices: the HSI ESG Enhanced Index the HSI ESG Enhanced Select Index and the HSCEI ESG

Enhanced Index. It has also received an AA rating from MSCI placing it at the forefront of the

domestic home appliance industry. Furthermore the Company was listed on Forbes 2025 Global BestEmployers and was honoured with the 2024–2025 Forbes China “Sustainable Development IndustrialEnterprise” award reflecting widespread recognition of its ESG efforts.Discussion and Analysis on Overall Operations for the First Half of 2025

During the reporting period amid increasing external volatilities the Company strengthened business

model advanced organizational transformation while fully embracing digitalization and AI technologies.By applying AI tools across the entire value chain we strengthened operational resilience and

improved market responsiveness user experience operational efficiency and cost competitiveness in

order to enhance profitability.

18 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

In the first half of 2025 the Company achieved revenue of RMB156.494 billion up 10.2% compared to

the same period in 2024. The growth was driven by:

(1) Domestic market. Domestic revenue grew 8.8% in the first half of the year. Despite intensifying

market competition we leveraged advantages in R&D manufacturing distribution and services to

create value for users. We launched industry leading products such as the Haier Mailang (麥浪)

refrigerator and Leader triple-drum Lazy Wash (懶人洗) washing machine. We implemented

initiatives including digital inventory and digital marketing to expand touchpoints accelerate

product turnover and improve user conversion. Leveraging multi-brand collaborations Casarte

revenue grew by over 20% and Leader revenue grew by over 15%.

(2) Overseas markets. Overseas revenue grew 11.7% in the first half of the year. During the reporting

period we advanced premium brand strategy to consolidate market leadership. Through

enhanced collaboration between each product unit and marketing team we accelerated product

localization and improved retail capabilities. We strengthened marketing logistics service and

digital platforms to drive growth. In the first half of 2025 white goods and HVAC businesses

continued to outperform the industry in the U.S. and Europe. Emerging markets grew rapidly with

revenue up 33% in South Asia 18% in Southeast Asia and 65% in Middle East & Africa. The

Company continued to implement the integration of CCR and Kwikot in product synergy market

expansion and technology development establishing a solid foundation for sustained future

growth.In the first half of 2025 net profit attributable to shareholders of the parent company reached

RMB12.033 billion representing a 15.6% increase compared to the same period in 2024. Net profit

attributable to shareholders of the parent company after deducting non-recurring profit or loss reached

RMB11.702 billion up 15.2% year-on-year compared to 2024.

(1) In the first half of 2025 the Company’s gross profit margin reached 26.9% up 0.1 percentage

points compared to the same period in 2024. In the domestic market we focused on

implementing ‘low cost high efficiency’ strategy to enhance end-to-end cost competitiveness

while committing to premium brand strategy overseas to improve user experience strengthening

global supply chain coordination to optimize manufacturing cost and establishing digital

procurement platform as well as cross-border logistics platform.

(2) In the first half of 2025 the Company’s selling expense ratio was 10.1% an optimization of 0.1

percentage points compared to the same period in 2024. The Company accelerated digitalization

to improve marketing logistics and warehouse management in domestic market while focusing

on building retail capabilities and coordinating global resources to improve operational efficiency

overseas.

(3) In the first half of 2025 the Company’s administrative expense ratio was 3.8% flat as compared

with the same period in 2024.

(4) In the first half of 2024 the Company’s financial expense ratio decreased by 0.2 percentage points

to –0.2% (“+” as expenses “—” as income) as a result of exchange gains caused by strong

currencies including the Euro.Haier Smart Home Co. Ltd. Interim Report 2025 19Section III Management Discussion and Analysis

In the first half of 2025 the Company’s net cash flow from operating activities amounted to

RMB11.139 billion an increase of RMB2.715 billion compared to the same period in 2024 attributable

to increased operating profits and improved operational efficiency.I. Household Food Storage and Cooking Solutions

(I) Refrigeration Business

The refrigeration segment reported global revenue of RMB42.853 billion in H1 2025 up

4.2% year-on-year. Overseas emerging markets remained strong with revenues in

Southeast Asia and South Asia up over 25% year-on-year. According to GfK the

Company’s retail market share in China reached 46.4% offline up 2.3 percentage points

year-on-year and 39.4% online up 0.4 percentage points.China Market

In China the Company enhanced consumer experience in healthy food preservation

integrated flush-mount design smart scenarios and energy efficiency with several products

emerging as market bestsellers. In the premium segment Casarte’s ZhiJing series

equipped with proprietary flush-mount design MSA nitrogen — oxygen preservation and

bottom-mounted air curtain cooling achieved sales of 320000 units doubling year-on-year.This drove Casarte’s offline market share in the RMB20000+ segment to exceed 70%

while its online market share in the high-end segment expanded rapidly rising by 1.7

percentage points. In the mid-to-high-end segment Haier’s Heyue and Mailang series —

featuring full-space preservation and ultra-thin zero-clearance design — delivered over

350000 units in H1 tripling year-on-year and cumulative sales of 1.5 million units. The

Heyue 625 remained the industry’s top-selling single model. In the entry segment Leader

gained share with large-capacity energy-efficient and low-noise products. Its Yueji series

with a unique corner design and 594mm zero-clearance installation lifted its share in the

RMB2999–4999 range by 3 percentage points.Overseas Markets

The Company advanced localized product designs tailored to climate power conditions

and space constraints. In South Asia the T-door LUMIèRE series met demand for large

capacity and categorized storage while improving cooling stability and efficiency under hot

and humid conditions with unstable power. Regional retail volume share rose 0.9

percentage points with revenue up 27% year-on-year. The Company remained No.1 in

Pakistan and achieved double-digit growth in other major markets. In Southeast Asia smart

ice-making and SPACE FIT series refrigerators captured rising mid-to-high-end demand

taking the Company to No.1 in the region. Market share reached 17% up 3 percentage

points with Vietnam and Thailand posting the fastest growth.

20 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Technology and Innovation

The Company introduced the AI Vision food recognition system (trained on 5 million+

images backed by 100+ patents identifying 200+ ingredients with mobile tracking)

premium flush-mount installation technology (custom panels six-way adjustment hydraulic

levelling 30-minute installation) and upgraded AI nitrogen — oxygen preservation . These

technologies will be applied in new premium models to be launched in H2 and are

expected to expand share in the RMB10000+ segment while improving margins.(II) Kitchen Appliance Business

In H1 2025 kitchen appliances delivered global revenue of RMB20.672 billion up 2.0%

year-on-year with sales exceeding 8 million units. According to GfK the Company’s

market share in China reached 9.2% offline (+1.8ppts) and 6.7% online (+0.5ppts).China Market

Amid a weak housing market the Company focused on trade-in demand and consumption

upgrades launching the constant-airflow silent hood (for low-noise open kitchens) adaptive

cooktops (adjusting heat to cookware and cooking method) space-saving steam-oven

combos along with AI Vision recognition and smart lift hood functions. By partnering with

leading renovation companies to bundle full-suite built-in kitchens into renovation packages

and carrying out community renovation campaigns in key cities the Company accelerated

penetration in the stock housing market. Casarte kitchen appliances grew revenue over

40% year-on-year retaining leadership in the RMB10000+ segment.

Haier Smart Home Co. Ltd. Interim Report 2025 21Section III Management Discussion and Analysis

Overseas Markets

The Company executed localized strategies adapted to space cooking habits and

efficiency standards. In North America despite slower housing starts and increased

promotional activity the Company leveraged local manufacturing to ensure a stable supply.The launch of the Profile built-in steam-oven combo and the AJEX freestanding induction

range secured 4000 prime displays in key retailers including The Home Depot boosting

product visibility and consumer reach. In Southeast Asia compact and efficient kitchen

suites for small homes drove the Philippines into the top three market positions. In South

Asia sales in Pakistan rose 23% year-on-year consolidating leadership in premium

built-ins. In Middle East & Africa sales of premium built-in suites nearly doubled as a share

of the business.II. Household Laundry Solutions

In the first half of 2025 the washing machine business achieved global revenue of RMB32.006

billion up 7.6% year-on-year by deepening three core strategies: technological innovation

omni-channel marketing and comprehensive cost optimization. According to GfK the Company

continued to lead the domestic industry with an offline retail share of 46.4% up 1.5 percentage

points year-on-year and an online retail share of 38.8% up 0.9 percentage points year-on-year.Euromonitor ranked the Company number one in market shares in Australia New Zealand Italy

Spain Pakistan and Vietnam.China Market

Washing machine business is committed to providing users with outstanding laundry experience

and leading the industry upgrade by leveraging product innovation and technological

advancement. In response to user demands for integrated washing and drying efficient drying

and large capacity the Company launched the Casarte Languang (攬光) Pro washer-dryer suite.This product features a variable frequency motor with full-time 1:1 forward and reverse rotation

preventing tangling and ensuring thorough drying. It includes gentle care functions for washing

precious fabrics like wool. The wash-dry feature automatically starts preheating 15 minutes before

the wash cycle ends enhancing wash-dry efficiency. The 580mm ultra-thin design can be fitted

seamlessly with cabinet. 12kg Casarte washing machines and washer-dryer combo contributed to

over 30% revenue growth driving market share in price segment above RMB15000 to over

90%.

22 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

The Company launched the Casarte Zhongzi Ronglang (中子 *融朗) wash-dry-care all-in-one machine

equipped with AI Vision which manages water levels and detergent ratios enhancing washing

effectiveness. The AI Smart Eye effectively prevents laundry from getting caught and small items from

being missing while detecting residual washing foam and automatically commanding second-round

rinsing. This product helped achieve over 95% market share in the price segment above RMB20000

only two months since its launch.Addressing consumer demand for separate laundry Leader brand launched the “Lazy Wash WashingMachine (懶人洗)” featuring triple-drum design with independent water circulation that enables

simultaneous washing while addressing vibration challenges and ensuring stability using an integrated

steel frame and three coordinated direct-drive motors. This washing machine has become a

phenomenal hit as it precisely meets young consumer needs.As online shopping penetration continued to rise our washing machine business increased investments

in mainstream platforms to enhance page design and create immersive shopping experiences. To

capture opportunities from the rise of social commerce we established official accounts on Douyin

Kuaishou and Xiaohongshu creating engaging short videos showcasing product features to promote

user interaction. In the first half of 2025 sales through e-commerce channels accounted for over 40%

of total domestic laundry sales.Overseas Markets

We increased market share through highly differentiated and competitive products with retail-oriented

go-to market strategies. In Europe we launched ultra-slim built-in front-load washing machines with

0.8-meter depth to fit premium kitchen designs. In emerging markets we maintained our commitment

to high-end brand development by transitioning product mix from twin-tub to front-load washing

machines while pursuing growth opportunities through differentiated products like the X Series and L+

models. During the reporting period revenue grew by over 40% in South Asian and the Middle East &

African markets while Southeast Asian revenue increased by more than 30%.Haier Smart Home Co. Ltd. Interim Report 2025 23Section III Management Discussion and Analysis

III. Air Solutions

During the reporting period the Company’s air solution business realized revenue of RMB32.978

billion up 12.8% year-on-year.(I) Home Air Conditioner Business

Driven by continuous improvement in product competitiveness further expansion of POP

channel touchpoints and enhanced e-commerce platform capabilities in the domestic

market along with strengthened end-to-end competitiveness in overseas markets the home

air conditioner business achieved revenue growth of over 10% in the first half of 2025.Market share performance: (1) In the domestic market according to GfK our offline and

online retail market share for air conditioners reached 19.7% and 11.3% in the first half of

2025 up 1.17 and 0.9 percentage points year-on-year respectively. (2) In overseas

markets according to GfK data the Company ranked first in both the ITS channel share in

Italy and the retail market share in Spain; in Egypt the Company broke into the top three;

in Pakistan the Company maintained its leading industry position with 45% market share.We strengthened innovation leadership with a focus on leading industry trends for high

energy efficiency healthy and comfort features. We leveraged in-house manufacturing of

core components such as compressors and PCBs along with supply chain efficiency

improvements to enhance cost competitiveness and strengthen retail competitive

advantages. (1) Our newly launched Haier Energy-Saving series air conditioners feature an

APF value of 6.12 utilizing AI smart energy-saving technology to reduce daily power

consumption to just 2 kWh in cooling mode and equipped with bipolar ion sterilization and

self-cleansing technology to ensure clean airflow. Sales reached 1 million units in the first

half of the year ranking among the top 10 for sales volume on e-commerce platforms

during the 618-shopping festival. (2) The Haier Smart-Wind series air conditioners feature

innovative Reuleaux triangular wind deflection technology using mechanical arms to

precisely control deflector angles completely solving the direct airflow pain point for users.Sales exceeded 410000 units within six months of launch driving year-on-year volume

growth of over 140% in high-end air conditioner sales priced above RMB3000 per unit.China Market

The Company effectively enhanced our competitiveness in POP and e-commerce channels

through digital inventory and marketing transformation driving rapid business development.

(1) POP channels: we helped distributors establish an asset-light operating model where

inventory is shared across all channels and online bestsellers are also sold in physical

stores thereby accelerating touchpoint expansion and improving retail efficiency. In the first

half of 2025 our POP channel retail sales grew by over 100% and distributor inventory

turnover efficiency improved by more than 30%. (2) E-commerce channels: by establishing

an end-to-end conversion system from “brand awareness to user traffic to product sales”

and developing an industry-leading portfolio of energy efficiency products we improved

operational efficiency and achieved nearly 50% revenue growth among e-commerce

channels during the first half of the year. Our share in emerging e-commerce channels such

as Douyin and Kuaishou rose rapidly with over 5-percentage-point year-on-year increases

respectively.

24 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Overseas Markets

The Company strengthened multi-brand synergies expanded solution-based products and

further localized supply chain achieving revenue growth of over 15% year-on-year.In the European market leveraging the “Haier+Candy+HEC” multi-brand portfolio strategy

we continuously improved channel penetration and user coverage. According to GfK data

Haier air conditioner sales volume share in Italy’s ITS channel reached 20.8% ranking first

in the industry; retail channel share in Spain reached 8.7% also ranking first. We

accelerated solution-based product deployment and launched Haier SENSE product series

which have won the German Red Dot Design Award.In emerging markets we focused on building end-to-end capabilities for the Haier brand

creating optimal user experiences and building market reputation. * In Egypt we launched

the industry’s first R32 cooling-only inverter air conditioner to address local pain points of

high temperatures and expensive electricity. By leveraging our local factory’s agile supply

advantage and strengthening brand store development we increased our market share to

16% breaking into the top three. * In Pakistan we launched solar-powered air

conditioners that provide cooling in high-temperature conditions with zero grid power

consumption allowing users to recoup purchase costs within two years helping us

increase market share by 2 percentage points to reach 45%.(II) Smart Building Business

In the first half of 2025 we deepened our core technology deployment in magnetic and air

bearing accelerated the implementation of innovative products and solutions in the

domestic market and continued to enhance our localized operations and professional

capabilities in overseas markets achieving sustained and healthy development. Our market

share expanded both domestically and internationally: according to China IOL data from

January to June 2025 our domestic central air conditioning market share increased by 0.4

percentage points year-on-year to 10.5% ranking among the top three in the industry; our

export market share rose by 0.7 percentage points year-on-year to 16.2% ranking second

in the industry.Haier Smart Home Co. Ltd. Interim Report 2025 25Section III Management Discussion and Analysis

We continued to focus on core technology R&D in magnetic and air bearing AI and

high-efficiency energy conservation using breakthrough innovations to enhance product

performance and user experience establishing industry standards and consolidating our

market leadership position. (1) Building on our deep technical expertise accumulated over

20 years in magnetic and air bearing technologies we led the development of China’s firstnational standard for magnetic and air bearing central air conditioning — the “Oil-freeBearing Centrifugal Chiller (Heat Pump) Units” national standard. This filled a technical

standards gap and promoted green transformation across the industry through high energy

efficiency thresholds. (2) During the reporting period our proprietary static pressure air

bearing technology filled the gap in large-capacity magnetic and air bearing technology in

the domestic market. Our 600RT air bearing centrifugal chiller equipped with this

technology achieves oil-free operation and ultra-long service life design with energy

efficiency improved by 50% providing green and efficient solutions for high-capacity

high-reliability scenario application such as data centers and large hospitals. We enhanced

the innovative integration of AI technology with hardware which enabled our multi-split

systems to reach 192HP by combining single 48HP modules. This resulted in the industry’s

largest single-unit capacity with 30% energy savings and 10% reduction in equipment

usage and this product won the “Innovation Product Award” at China Refrigeration Expo.In the Yancheng Xifu River Green and Low-Carbon Science and Technology Innovation Park

project Haier Smart Building provided solutions for centralized management and smart

operations of 12 buildings in the park through IoT multi-split systems and HCM03 local

control systems saving nearly 1 million kWh of electricity annually.China Market

The Company strengthened our foundation for long-term development through deepening

our networks enhancing professional capabilities and diversifying our brand portfolio. (1)

Deepening local networks and improving response efficiency: We expanded

operations in regional markets to precisely cover key touchpoints and strengthen localized

service capabilities and market responsiveness. Our regional network coverage rate

increased to 78% and average service response time has been reduced to 24 hours. (2)

Strengthening professional capabilities to ensure user experience: We focused on

building professional capabilities of our frontline teams through systematic training and

standardized processes improving professional standards across sales consultation

installation and after-sales services. In the first half of 2025 we offered specialized training

to over 12000 participants only 0.97% of work orders remained unresolved over one day.

(3) Introducing the PROFROID brand to target high-end market: During the reporting

period we strategically introduced PROFROID a global leading brand in CO2 refrigerant

applications and HVAC refrigeration from CCR to the Chinese market. PROFROID will

integrate CCR’s leading patents and technology in CO2 application with Haier HVAC’s core

technological advantages. In alignment with China’s “carbon peaking and carbon neutrality”

strategic policies we will progressively introduce low-GWP highly efficient reliable and

technologically advanced HVAC refrigeration solutions using R410a/R32/R290/R740 (CO2)

refrigerants to turbocharge our development in the high-end market.

26 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Overseas Markets

The Company focused on enhancing localized competitiveness in product solutions

professional channels and supply chains to drive rapid business growth. (1) Building

differentiated competitive product solutions: We deeply integrated domestic and

international product platforms to systematically optimize cost structures. Through in-depth

insights into local demands we created comprehensive product solutions tailored for local

markets that combine cost competitiveness with high compatibility. For example in Middle

East and Africa our cabinet units dedicated to living rooms were integrated with our

domestic platform increasing parts commonality by over 15% and reducing overall costs

by 6%. (2) Implementing in-depth country-specific development: We adopted a market

segmentation strategy. In mature markets we built on our professional expertise to solidify

our leading market position. Our goal was to achieve number one in market share by

making progress across dimensions of product lines regions and sales channels. In less

penetrated markets we accelerated channel coverage achieving breakthrough

improvements in both coverage rate and market share. During the reporting period we

expedited development in Europe by acquiring KLIMA KFT Hungary’s leading HVAC

channel which helped us establish a strong distribution network and professional solution

capabilities that extend throughout Central and Eastern Europe.IV. Household Water Solutions

During the reporting period the water solution business achieved global revenue of RMB9.793

billion through product innovation deepened market segmentation and cost initiatives up 20.8%

year-on-year. In China market according to GfK data our market share continued to lead the

industry with offline and online retail share reaching 31.4% and 43.0% respectively up 2.4 and

0.8 percentage points year-on-year. Overseas water heater doubled sales revenue benefiting

from differentiated product innovation and accelerated expansion of sales channels.China Market

In response to users’ upgraded demand for water quality electric water heaters launched

magnesium rod-free solutions to address water quality issues caused by magnesium rod heating.Gas water heaters introduced the new Casarte Boundless (無界) series to solve the challenge of

condensed water drainage utilizing aerospace-grade atomization technology to achieve 100%

discharge. This product achieved sales of over 10000 units within one month of launch. The

water solution business also focused on upgrading its offerings from single products to

comprehensive solutions driving product mix enhancement. Specifically Casarte water heaters

and water purifiers both maintained revenue growth above 20% while heating boiler revenue

achieved year-on-year growth of 32%.Haier Smart Home Co. Ltd. Interim Report 2025 27Section III Management Discussion and Analysis

Overseas Markets

We strengthened regional product differentiation and innovation. In North America we launched

an industry-leading mixed-water valve heat pump product featuring 1234YF eco-friendly

refrigerant with high energy efficiency superior performance low noise and reduced carbon

emissions contributing to overall 40% water heater revenue growth. In Australia we introduced

330L heat pump water heater with rapid heating large capacity energy efficiency and low noise

level driving overall water heater business revenue growth of over 50%. To improve

responsiveness in emerging regions we established dedicated overseas teams in Southeast Asia

Middle East and Africa resulting in water heater revenue growth of over 80% in Southeast Asian

markets. Driven by the acquisition of South Africa’s Kwikot water heater business and

development in the UAE our water heater business achieved breakthroughs in Middle East and

African markets.V. China Operation

During the reporting period we deepened digital transformation in both inventory and

marketing while strengthening our multi-brand strategy. Through building a digital

operating system across channels we improved efficiency and enhanced customer and

consumer experience.Digital Inventory: Streamlined Operations and Faster Fulfillment

By introducing shared digital inventory in POP channels and a One-inventory TC model in

franchised stores the Company eased distributors’ capital and warehousing pressure enabling

them to focus more on retail execution. In the first half of the year the POP channel added over

100 new distributors while the sales contribution of bestselling models increased by 6

percentage points. In franchised stores the share of orders delivered directly through the

One-inventory system rose from 29% to 55% driving a 22% increase in retail sales for

participating distributors.Logistics and service capabilities were upgraded in parallel. Coverage for 24/48-hour delivery

expanded to 298 additional counties while 12-hour delivery was extended to 30 counties.Integrated delivery-and-installation services now reach 99.9% of the network. Meanwhile by

sharing inventory across online and offline channels and applying AI-based demand forecasting

for warehouse allocation product turnover improved significantly. In the air-conditioning category

for instance inventory turnover days were reduced by 17%.

28 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Digital Marketing: Enhancing User Reach and Conversion Efficiency and Brand

Presence

Leveraging our self-developed digital marketing model the Company achieved more efficient user

targeting conversion and retention. From January to June we generated 526400 leads

translating into RMB1.49 billion in retail sales. By building CTC (Content-to-Consumer) OTO

(Online-to-Offline) and OMO (Online-Merge-Offline) capabilities the Company strengthened traffic

acquisition and conversion creating an end-to-end monetization pipeline. On Douyin

high-engagement A3-tier users grew 52% year-on-year while user-initiated searches on

Xiaohongshu increased 26% gradually establishing a competitive moat in brand influence.At the same time the Company developed a three-tier communication matrix of KOL — KOE —

KOS and introduced an AI-powered influencer selection tool on Xiaohongshu. These initiatives

improved account operation efficiency by 15% and increased quality content exposure by 16%

year-on-year.Strengthening Multi-Brand Synergy to Broaden Consumer Reach and Consolidate

High-End Leadership

Casarte focused on blockbuster products in core price bands and integrated suite solutions

while advancing new media operations and upgrading its digital store system. In the first half of

2025 revenue grew by more than 20% year-on-year with market share reaching 12.3% up 0.9

percentage points (GfK). By expanding new media presence and enhancing online offerings the

brand improved traffic acquisition and conversion efficiency driving a higher share of online

sales.Haier under the theme of AI for Home accelerated its transformation toward youthfulness

globalization and technology leadership. Retail sales rose 18% in the first half with membership

surpassing 130 million. For young consumers the “Little Red Flower” suite exceeded 1.2 million

units in retail sales while the “Mailang” suite targeted middle-class households with AI-powered

health-focused and smart home experiences. Meanwhile 166 new experience centers and

flagship stores were opened across tier-1 and tier-2 cities enhancing product showcases and

shopping experiences.Leader continued to target young consumers with innovative offerings designed around

personalization aesthetics and efficiency needs such as the triple-tub washing machines

shaping a differentiated brand identity. Revenue grew more than 15% in the first half of 2025.Fisher & Paykel positioned as a super-premium brand under the theme Luxury Living launched

the new Series 11 lineup featuring top-tier aesthetics with 3mm seamless built-in and fully

concealed designs which were well received by consumers. Seventeen new experience centers

were added further reinforcing brand presence.Haier Smart Home Co. Ltd. Interim Report 2025 29Section III Management Discussion and Analysis

Sanyiniao focused on its smart-home strategy introducing integrated solutions for HVAC

kitchen and balcony spaces. HVAC leveraged an AI-driven air model for self-sensing

self-judgment and self-adjustment enhancing all-season smart operations. In partnership with

Boloni it rolled out suite-based kitchen solutions — including the Zhijing Max Conductor PRO

and Connoisseur series — strengthening customization and bundled sales. On the AI front the

Company launched the “Xiaoyou” intelligent agent powered by the Uhome foundation model

enabling vertical AI applications such as AI freshness and AI air in refrigerators and air

conditioners — making products more responsive to user needs. Monthly active users of the

Smart Home App surpassed 11 million up 35% year-on-year.VI. Overseas Markets

In the first half of 2025 the Company delivered revenue of RMB79.079 billion up 11.66%

year-on-year. We strengthened our technology edge through global R&D collaboration

accelerating innovation and enhancing product competitiveness. We optimized our market

presence by expanding into HVAC and small appliances enriching the mid— to entry-level

portfolio and improving channel efficiency in both emerging and developed markets. We

advanced our global footprint with deeper local engagement faster organizational response and

supply chain expansion in Belt and Road countries capturing new growth opportunities.North America

During the reporting period GE Appliances delivered positive year-over-year sales growth while

premium and mass premium brand sales achieved double-digit increases.The company continued to expand its portfolio of industry-leading appliance solutions with

innovations rooted in technology to help users streamline everyday tasks. CAFé Smart

Counter-Depth 4-Door French-Door Refrigerator with Dual-Dispense AutoFill Pitcher combines a

seamless built-in look that fits with cabinets and counters for a clean design offering unmatched

style and functionality. GE Profile made its innovative induction cooking technology moreaccessible with the launch of an induction range model. This GE Profile ENERGY STAR 30”

Smart Slide-In Induction and Convection Range gives consumers access to the speed precision

responsiveness easy-to-clean surface and efficiency of induction at price points accessible to a

broader range of households. The Company also expanded our portfolio of room air conditioners

to include new powerful solutions across its GE Profile and GE brands just in time for

summer months. Air and Water Solutions continued to revolutionize residential water heater

solutions with the all-new GE Profile GEOSPRING Smart Hybrid Heat Pump Water Heater

which utilizes advanced heat pump technology to provide up to 4.7 times more energy efficiency

than standard electric water heaters and is up to 20% more energy efficient compared to other

heat pump water heaters it is also selected by Green Builder Media as Sustainable Product of

the Year.

30 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Europe

In the first half of 2025 the Company recorded sales revenue of RMB17.995 billion up 24.07%

compared with the same period in 2024.During the reporting period Candy brand celebrated 80 years of history with a forward-looking

spirit. The top innovations include a brand-new washing machine with a groundbreaking design

created to offer maximum flexibility in garment care and the Active Scent System of the Pro Dry

700 tumble dryer which releases a delicate fragrance through tablets integrated in the filter. In

the kitchen the most innovative techs take centre stage. Candy ovens stand out for their No

Preheat and FullMenu features. In the cooling segment Panorama Light and Circle Fresh have

been extended to the built-in range. Fresco fridges now come in modern colours. I-Master Series

7 Kettle Toaster and Blender received iF Design Award. In May the Candy Bake 800 oven and

the Candy Fresco 500 refrigerator to the Hoover HF2 vacuum cleaner and the Haier I-Master

Series 7 small kitchen appliances line received our prestigious Red Dot Awards. All of these

award-winning products were created at Milan Experience Design Center the creative hub

opened in late 2020 to merge the concepts of design connectivity and user experience in the

development of appliance solutions.The deal between Haier ATP Tour and the French Tennis Federation (FFT) which began in

2023 includes some of the world’s biggest tournaments such as the Roland Garros Mutua

Madrid Open Hamburg Open HSBC Championships European Open Antwerp Rolex Paris

Masters. The Company received over 3 billion mentions during Roland Garros tournament this

year.During the reporting period we actively advanced the post-acquisition integration of CCR and

implemented headquarters synergy initiatives while maintaining steady business growth. (1) Initial

integration benefits emerged as our headquarters and CCR completed collaborative projects

across R&D technology procurement and brand expansion such as the launch of our

fourth-generation CDU in the second half of the year while organizational optimization and

integration of our micro-enterprise mechanisms further ignited team initiative. (2) Our core

European business returned to growth. While we maintained stability with high-end core clients

and expanded our customer base in food retail we doubled down on regional customer

development efforts. (3) Our Asia-Pacific business sustained rapid growth with further expansion

into industrial applications particularly in biopharmaceuticals food processing and specialized

cold storage. (4) In North America we focused on accelerating expansion into the industrial

equipment market of leading local supermarket chains.South Asia

During the period revenue from South Asia grew 32.47% year-on-year to RMB8.666 billion.Haier Smart Home Co. Ltd. Interim Report 2025 31Section III Management Discussion and Analysis

India

During the period the Indian market maintained strong growth with revenue increasing by over

20% year-on-year. This performance was driven by deep consumer insights and enhanced

product differentiation. In response to Indian households’ growing focus on energy consumption

and vegetarian food refrigeration needs we launched variable-temperature side-by-side

refrigerators with up to 83% of their capacity configurable as refrigeration space. The

variable-temperature feature enables flexible food storage and more efficient space utilization. We

also launched the Gravity series inverter ACs — India’s first fabric-clad AI self-learning air

conditioners. Available in seven premium colors such as Morning Mist Moonstone Gray and

Midnight Dream the series combines smart cooling technology with fabric aesthetics enhancing

both comfort and the premium look of modern homes. We also strengthened our retail network

and improved store performance: while online channels maintained rapid growth we expanded

coverage in national retail chains and traditional offline channels reaching 65% coverage.Pakistan

In Pakistan we drove growth through localized product innovation upgraded touchpoints and

improved store efficiency. By accelerating in-house supply chain development to enhance cost

competitiveness we increased our high-end market share and price index achieving over 40%

revenue growth and further strengthening our market leadership.Australia & New Zealand

During the reporting period sales revenue grew 1.02% to RMB3.258 billion.The growth was achieved leveraging upgrading product strategy and solution packages such as

Haier W790 refrigerator featuring industry leading 5.5/5-star energy efficiency 7:3 fridge —

freezer split with Humidity Zone drawer and separate storage bins for more fresh food

flexibility; Haier H500-H600 oven with steam-assist function and AI assistant; X11 washer the

industry’s first “breathable” product with Air Cruise technology to address bacterial growth and

X11 dryer with dual-engine heat pump technology and 3D perspective drying technology to

prevent clothes from tangling. FPA upgraded built-in products including Columns series

refrigerators and 90cm Oven while invested in design interactions and strengthened social media

presence. The Company also completed 119 cost initiatives enhanced the efficiency of freight

transportation and warehouse operations increased the prediction accuracy to 60% and

reduced the inventory turnover from 71 days to 63 days.

32 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Southeast Asia

During the period the Southeast Asian market generated revenue of RMB4.130 billion

representing a year-on-year increase of 18.29%. Market share expanded across the regions. In

Thailand our white goods retail volume share increased by 4.1 percentage points to 14.5%

securing the No.1 position. In Vietnam volume share increased by 2.2 percentage points to

14.9%. In Malaysia we entered the top three in the white goods market share.

In terms of products each market drove growth through differentiated innovations. In Thailand

we launched our first smart voice-controlled air conditioner enabling voice commands for power

temperature and airflow adjustment; sales exceeded 1000 units within three months. In Vietnam

Haier brand washing machines were officially launched including three premium highly

differentiated products — the L+ high-efficiency heat pump washer-dryer the Zhongzi (中子)

all-in-one washer-dryer-care machine and the X Series equipped with Air Cruise technology —

driving the washing machine share to 21% up 1.7 percentage points year-on-year. In Indonesia

we launched large-capacity two-door refrigerators with dual independent variable-temperature

compartments dual storage boxes and a built-in water dispenser further strengthening our

competitiveness.In terms of the supply chain we further developed our local capability to reinforce our market

position. In Thailand construction of a new air conditioner plant progressed optimizing lead

times and reducing costs. In Indonesia we focused on boosting manufacturing efficiency and

shortening production cycles. We also implemented direct-from-factory delivery reducing logistics

costs and improving distribution efficiency.Middle East & Africa

During the reporting period the Middle East and African market generated revenue of RMB2.439

billion representing a year-on-year increase of 65.42%.During the period we further enhanced our localized manufacturing base layout and drove rapid

business growth through key regional partnerships and channel system reforms. (1) Phase I of

our Egypt eco-park has achieved localized manufacturing of air conditioners washing machines

and televisions while Phase II production lines for refrigerators and other categories are under

construction. Our industry-leading localization rate ensured cost advantages in the Egyptian

market with plans to export to neighboring markets in the Middle East and North Africa. (2)

Following our acquisition and integration of Electrolux’s water heater business in the South

African market we leveraged our global network to enhance Kwikot water heater products

across procurement R&D and manufacturing while actively utilizing Kwikot’s local channel

advantages and logistics network to expand sales of Haier brand water purifiers refrigerators

washing machines and other white goods in South Africa and surrounding markets. (3) We

further optimized channel incentive mechanisms in Saudi Arabia and the Gulf region while

advancing digital transformation to stimulate sales team motivation and overall operation

efficiency. (4) Additionally we continued promoting brand and product mix upgrades in key

regions increasing the proportion of mid to high-end product sales to uplift our premium brand

positioning and unify brand image.Haier Smart Home Co. Ltd. Interim Report 2025 33Section III Management Discussion and Analysis

Japan

During the reporting period the Company recorded sales revenue of RMB1.958 billion up 7.17%

year-on-year ranking 2nd with 14.8% volume market share in refrigerator 1st in freezer with

40.4% and 2nd in washing machine with 18.0%.

The Company introduced a collection of innovative products including AQUA NewDelie and

Freezia refrigerator series; new heat pump washing machine that ranked 1st in 10kg range and

helped grow total market share by 1.2 percentage points Haier MX high-end air conditioners

with self-cleansing WIFI control and AI energy saving functions. The Company continued to work

with Yuzuru Hanyu as the brand Ambassador to launch several campaigns across multiple

platforms to capture maximum attention.VII. Digital Transformation

During the reporting period the Company accelerated the deployment of AI across all processes

and established a data-driven intelligent decision-making and closed-loop optimization

system strengthening its advantages in product innovation cost efficiency and operational

excellence.In product innovation the Company introduced an AI-driven demand insight system and

standardized data platform enabling precise identification of user needs and faster discovery of

new opportunities. Supported by intelligent decision-making models product portfolio efficiency

improved by 13% in the first half.In cost management the Company advanced full-chain digital restructuring. In R&D the digital

BOM system and intelligent costing models reduced design costs by 5.98% and streamlined

material codes by 18%. In procurement a transparent digital platform enhanced supplier

onboarding efficiency by 28% while new technology solutions unlocked potential savings

exceeding RMB1 billion. In overseas operations a pilot program in Thailand achieved end-to-end

digital management of suppliers materials orders and operations driving a 20% improvement

in efficiency and generating over USD 40 million in collaborative value.In supply chain and logistics the Company established an integrated digital system covering

forecasting production planning inventory and order management. Daily output at domestic

manufacturing bases rose by 14% planning accuracy improved by 9.7 percentage points and

production scheduling time was reduced from 2 hours to 0.5 hours. Order response cycles

shortened to 8.9 days. In logistics AI-enabled warehousing intelligent dispatch and upgraded

service assistants reduced logistics costs by 0.5% enhanced labor productivity by 11% and

improved raw material VMI unit cost by 14% with retail logistics success rates up by 5.35%.

34 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Development Plan for the Second Half of the Year

Looking ahead to the second half of 2025 faced with changing user demand and competitive

landscape we will drive steady growth through systematic innovation to accelerate market share

expansion and consolidate global leadership.In the domestic market we will continue to deepen digital inventory and marketing transformation to

stay ahead. We will strengthen multi-brand synergies with Casarte brand focusing on innovation and

experience to create value for users so as to strengthen high-end market leadership.In overseas markets we will focus on strategic upgrade and efficiency improvement to drive

breakthroughs. We will continue upgrading global brand portfolio while strengthening localization

capabilities and refining operations across all business processes. We will prioritize retail transition to

expand market capacity through optimizing distributor and user experiences. At the operational level

we will integrate global platforms in quality control logistics services and digitalization to optimize

resource allocation improve market responsiveness reduce cost and enhance efficiency thus driving

steady growth.Significant changes in the Company’s operating conditions during the reporting period and

matters occurring during the reporting period that have and expected to have a significant

impact on the Company’s operating conditions

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 35Section III Management Discussion and Analysis

III. ANALYSIS ON CORE COMPETITIVENESS DURING THE REPORTING

PERIOD

√ Applicable □ Not Applicable

The Company has established a solid strategic presence and competitive advantage in global market.In China’s major home appliance market the Company has long maintained a leading position across

all product categories. According to GfK’s report the Company has established a continued leading

market position in key major home appliance categories during the period. In overseas markets the

Company has adhered to its high-end brand creation strategy. Coupling with the two newly acquired

brands namely CCR and Kwikot this has served us well in building capacity to create global

sustainable growth and continuously gaining market share. Building on this foundation and by

leveraging on the consolidation and synergy of our global unified platform efficiency transformation

driven by digitalisation technological strength and innovative capabilities the Company will further

consolidate its leading position in the industry. As cornerstone for sustainable development our

“Rendanheyi” (人單合一) Model also provided management guidance to the Company and enabled us

to replicate successful experiences. It is believed that the following advantages will help the Company

to continue to strengthen its leading position:

(i) Building up excellent high-end brand operation capabilities and creating a well- recognised high-end

brand through forward-looking layout and long-term investment in the global market to achieve a

leading market position.To better meet the need of consumers in pursuit of quality life the Company has started to

develop the high-end brand Casarte in the Chinese market more than 10 years ago. The creation

of high-end brands requires not only focus experience and patience but also continuous

innovation of technological standards and differentiated service capabilities to fulfil user demand

for high-quality experiences. The Casarte brand combined the Company’s global technological

strengths product development capabilities and manufacturing craftsmanship as well as privilege

marketing and differentiation services which has won the trust of users in China’s high-end

market. According to data from GfK the Casarte brand has assumed a definitive leading position

in China’s high-end major home appliance market during the period ranking first in the retail

sales of refrigerator washing machine and air-conditioner categories in the high-end segment. In

particular market shares (in terms of offline retail sales) of the Casarte brand of refrigerators air-

conditioners and washing machines reached 59.2% 49.2% and 90.4% respectively in the market

with product priced above RMB15000 in China.

36 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

(ii) Providing users with specialised and customised smart household solutions through the San Yi

Niao brand with cross-household design focusing on scenario-based experience to carry out the

mission of “providing smart home experience for a better home”.As users continued to demand for higher living quality coupled with the development of

technologies such as Internet of Things and big data the industry has shown a smart and high-

end development trend that prioritised product suites based upon scenarios and home

appliances integrated with home furnishings. With leading user insights extensive product

coverage and technological accumulation from algorithms big data models and IoT equipment

technology the Company established its three major capabilities in respect of innovations in

smart home scenario solutions experiential scenario stores and breakthroughs in Smart Home’s

main platform to create a new home appliances sales method with cross-household design

focusing on scenario-based experience and develop high-end package and front-end sales

capabilities.(iii) Extensive and solid global presence with localised operational capability

In respect of overseas markets the Company seeks overseas expansion of its own brands as

well as synergies with acquired brands to develop overseas markets. Such business strategy has

guided the Company to establish R&D manufacturing and marketing three-in-one structure

across multiple brands products and regions as well as the model of self-development

interconnection and synergised operation.The Company’s extensive global presence depends on its localised business teams as well as its

flexible and autonomous management mechanisms established in various overseas markets

which have enabled the Company to gain rapid insights and respond swiftly to local user

demands. The Company also proactively integrates into local markets and cultures and has

established a corporate image that is recognised by local communities in the overseas regions

where the Company operates.In the first half of 2025 the Company established 10+N innovative ecosystems 163

manufacturing centres and 126 marketing centres around the world and achieved a coverage of

nearly 230000 points of sales in global markets.(iv) A comprehensive portfolio of proprietary brands recognised by users of all tiers

Through organic growth and acquisitions the Company has formed seven brand clusters

including Haier Casarte Leader GE Appliances Candy Fisher & Paykel and AQUA. To address

the needs of users from different tiers in various markets around the world the Company has

adopted a differentiated multi-brand strategy in different regions that centred around users to

achieve an extensive and in-depth user coverage. For example in the Chinese market: the three

brands of Casarte Haier and Leader achieved the coverage of high-end mainstream and niche

market groups respectively; in the U.S. market the six major brands such as Monogram Café

GE Profile GE Haier Hotpoint comprehensively covered all segments of high-end mid-range

and low-end markets thereby meeting the preferences and needs of different types of users.Haier Smart Home Co. Ltd. Interim Report 2025 37Section III Management Discussion and Analysis

(v) Cross-border acquisition and synergy realisation capabilities

The Company has an excellent track record of acquisition and integration. The Company has

acquired Haier Group Corporation’s overseas white goods business including Sanyo Electric Co.Ltd.’s white goods businesses in Japan and Southeast Asia in 2015 the home appliance

business of General Electric in the US in 2016 the New Zealand company Fisher & Paykel

(which has been entrusted by the Haier Group since 2015) in 2018 and the Italian company

Candy in 2019. In addition the Company successfully acquired CCR a commercial refrigeration

brand in 2024 which has expedited the Company’s comprehensive refrigeration chain strategy

and strengthened the development of its commercial refrigeration segment. The acquisition of

Kwikot a century-old water heater brand in South Africa has expanded the Company’s business

footprint in the African market and strengthened its market competitiveness in the region.Capitalising on the local resources and technological strengths of CCR and Kwikot Haier Smart

Home has rapidly increased its brand awareness and market share in the region.The Company’s capability to perform acquisition and integration is reflected in the following: First

of all the Company implements the “Rendanheyi” (人單合一) Model in the acquired companies

which is a value-added sharing mechanism for the whole-process team under a common goal.Such model can motivate the acquired companies and their employees and enable them to

generate more value. Secondly the Company made use of its global platform to empower the

acquired companies in terms of strategic planning R&D and procurement in order to enhance

their competitiveness. Thirdly the Company’s open and inclusive corporate culture can support

the acquired companies in establishing a flexible and autonomous management mechanism

which can easily earn recognition from the acquired companies and is conducive to the

promotion of integration.(vi) Comprehensive and in-depth global collaborations and empowerment

The Company has made full use of its global collaborative platform as well as its integrated

functions of R&D product development procurement supply chain sales and brand marketing.It was able to share and expand development experience to various markets around the world.By strengthening the synergies among its global businesses the Company has created a strong

driving force for its future development.* Global product collaboration: Focusing on the needs of overseas users and customers we

leverage global R&D resources to ensure close collaboration across all stages including

user demand analysis product planning technical solution design development testing and

trial production and have launched top-selling products in various regions around the

world. For example the only caravan air-conditioner in North America with a heat pump

that operates at temperatures as low as –5 degrees Celsius the first-ever 8.0 Energy Star

refrigerator in the Australian market (which is 40% more energy-efficient than its rivals) a

brand-new washing machine platform that meets the needs of both the China-US and

Europe-Australia markets and the global micro-vaporisation and roasting platform that

integrates the R&D capabilities of Haier from among others China Italy New Zealand

America and Japan. Through global product collaboration overseas brands such as Haier

Fisher & Paykel Candy and GE have significantly expanded their product portfolios.

38 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

* Global capability collaboration: Development of high-caliber young engineers is conducted in

accordance with the unified training model at both the Qingdao headquarters and GE

Appliances in the U.S. which has yielded further progress. In Qingdao young engineers

trained through the Global Engineer Development Programme (GEDP) are continuously

joining industrial R&D teams and becoming key players in product development. Meanwhile

driven by digital transformation various global regions are progressively adopting advanced

development tools and design methodologies from the automotive industry significantly

enhancing development accuracy and product quality.* Global design collaboration: An industrial design collaboration system for global top-selling

products centred on user experience and branding has been established. Through

collaboration with global designers design quality has been greatly improved. For example

the headquarters design team collaborated with the CANDY design team to complete the

creation of Haier’s Titanium Series 2/4/6 ovens under the global platform oven which have

been successively launched in markets included Europe and Australia. Meanwhile the

headquarters design centre supported Candy’s brand transformation and realised Candy’s

price index improvement.* Global procurement collaboration: The Company has established a global procurement

committee to coordinate procurement activities. The committee has built a digital sourcing

platform that brought together partners across industries and regions to develop an

autonomous and controlled global supply chain ecosystem. The committee also created a

global database of preferred suppliers and materials to achieve cost reduction by

aggregating resources at the Company level. By unifying procurement rules and processes

the Company established a standardised operating system with differentiated procurement

strategies to enhance efficiency while lowering risks. We have also developed a Company-

level digital procurement platform to enhance shared capabilities through connecting

“materials businesses people and mechanisms” to the platform thereby improving the

resilience of our global supply chain.* Global supply chain collaboration: The Company has built an end-to-end digital management

system for the global supply chain that spanned from marketing to suppliers to production

and logistics. Using intelligent algorithms the system enabled real-time flexible deployment

of production capacity and factories across the globe could share and develop smart

manufacturing technologies to boost competitiveness.* Global marketing and brand promotion collaboration: The Company operates a global

multi-tier brand portfolio and carries out coordinated brand promotion worldwide. It also

promotes the sharing and replication of successful marketing strategies across regional

markets. For example in Thailand the Company drew on the online — offline integration

strategy used in the Chinese market leveraging social media platforms to deliver targeted

advertising for home appliance products tailored to local household scenarios successfully

capturing consumer attention.Haier Smart Home Co. Ltd. Interim Report 2025 39Section III Management Discussion and Analysis

(vii) Industry-leading R&D and technological capabilities

Haier Smart Home delves into technological innovation to expedite the development of

innovation-driven productivity that aims for high-end smart and green upgrade. Leveraging on

our industry-leading and comprehensive R&D presence we constantly provide global users with

home appliances that meet their needs and customise their smart and convenient way of living

thus enriching users’ life experience as well as cementing our leading position in high-end

brands scenario brands and ecosystem brands.* Leadership in original technologies:

Haier Smart Home has launched a magnetically controlled full-space freshness refrigerator

addressing the challenge of frozen food preservation by keeping frozen fish fresh for 60

days and chilled meat red tender and fresh for 10 days with nutrients retained as

originally stored. The fully built-in range hood equipped with AI Eye enables intelligent

interaction with the hob and introduces the industry’s first anti-overflow technology

allowing real-time monitoring during cooking and intelligent flame adjustment to prevent

spillover. Haier also launched the world’s first integrated triple-drum “lazy” washing

machine meeting users’ needs for zoned washing and care. It introduced the industry’s

first air conditioner capable of achieving 110% cooling capacity at 53oC and stable

operation at 70oC. To address the issue of condensate in gas water heaters with top-rated

energy efficiency Haier uses aerospace-grade atomisation and centrifugal technology to

achieve 100% external discharge of condensate water rejecting its reuse after purification.It also launched the industry’s first magnesium rod-free water heater with a metal inner

tank upgrading to an AI cleaning system that replaces the magnesium rod truly achieving

“no magnesium rod no scale.”

* Certification from authorities:

As of the end of June 2025 the Company received a total of 17 State Science and

Technology Progress Award more than any other company in the industry. The Company

won the highest accolade of the Disruptive Technology Innovation Competition (Winner

Award) and is the only company to have won the highest accolade in the industry for 3

times.* Leadership in patent quality:

As of the end of June 2025 Haier Smart Home has accumulated more than 116000

patents applications globally including more than 75000 invention patents. The Company

also accumulated 12 state patent gold awards ranking first in the domestic market. In the

‘Global Smart Home Invention Patent Ranking’ in the first half of 2025 Haier Smart Home

once again topped the list with 2208 published patent applications ranking 1st in the

world for 13 consecutive times.

40 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

* Leadership in international standards:

As of the end of June 2025 Haier Smart Home has cumulatively led and participated in the

drafting of 116 international standards and 840 state/industrial standards. We are the only

company in the industry to have participated in smart home standards from international

organisations including the IEC ISO IEEE OCF and Matter. We are also the only

enterprise in the world to serve on both the IEC Board and the IEC Market Strategy Board

which have enabled the Company to stay actively involved in the formulation of international

standards.* Leadership in experience design:

Haier won over 600 accolades including international design awards such as the German

IF Design Award and the Red Dot Design Award. The Company won the most international

design gold awards in the industry with six in total and won 3 China Excellent Industrial

Design Gold Awards from the Ministry of Industry and Information Technology which is the

only enterprise in China that have earned three consecutive gold awards.(viii) Leading logistics and delivery capabilities in the PRC

Haier RRS Logistics has demonstrated strong competitiveness particularly in its supply chain

management solutions which cover the entire process and various scenarios as well as a

delivery-loading synchronised logistics service network. By leveraging its digital operation and

management capabilities Haier RRS Logistics has integrated resources such as warehouses

transportation and service outlets. As a result it has built a nationwide logistics network that

extends to villages and households offering services that cover the entire process from

procurement and factory manufacturing to end consumers. Additionally Haier RRS Logistics has

acquired strong capability in provision of customized services boasting its strength in

customising supply chain solutions according to individual customer needs catering to a diverse

range of needs of various clients. The Company also excels in cross-border supply chain

management addressing client needs in cross-border logistics through air marine railway and

multi-modal transportation.(ix) Sustainability

* Global ESG governance structure: To advance the implementation of ESG initiatives Haier

Smart Home has further strengthened its organisational structure framework building on its

3-tier global ESG governance structure (the ESG Committee of the Board of Directors the

ESG Global Executive Office and the Global ESG Executive Working Group). At the

executive level the structure has been expanded to include sub-clusters in areas such as

environmental management sustainable risk management corporate governance and

supply chain management providing organisational support for the effective advancement of

ESG management.Haier Smart Home Co. Ltd. Interim Report 2025 41Section III Management Discussion and Analysis* Green development and low-carbon operation: Haier Smart Home has formulated the “6Green” strategy of green management throughout the entire life cycle which includes“green design green manufacturing green marketing green recycling green disposal andgreen procurement” and promotes green actions throughout the entire life cycle. Haier

Smart Home has integrated low-carbon recycling energy saving and emission reduction

into its daily operations to promote green upgrading of the industry.* Social responsibility and charity work: Haier Smart Home actively participates in public welfare

projects such as the Hope Project rural revitalisation and emergency relief on a global

scale and continues to give back to society through donations and volunteer services.* Leading ESG rating: Haier Smart Home has the leading rating among its peers in China in

respect of the ESG ratings issued by three major organisations namely CSI MSCI and

Wind. Among which its MSCI rating has been upgraded to an AA level. This demonstrates

its excellent performance in environmental social responsibility and corporate governance.(x) Staying committed to the principle of “value of people comes first”

“Value of people comes first” has always been a guiding principle for Haier’s development. From

the autonomous operation team at the start of the venture to the current “Rendanheyi” (人單合

一) model Haier encourages every employee to maximise their own values while creating values

for users. In Haier’s “Rendanheyi” (人單合一) model “Ren” refers to creators; “Dan” refers to user

value; “Heyi” refers to the integration of values realised by employees and the values created for

users. “Value of people comes first” is the highest purpose of the “Rendanheyi” (人單合一)

model.Haier Smart Home adheres to the values of recognising users’ demand as priority and denying

our own perceptions and is committed to the “two creative spirits” of entrepreneurship and

innovation. We turned employees into creators implementers into entrepreneurs and transformed

enterprises into open ecosystem platforms which have supported the Company to become a

global leader of smart home in the Internet of Things era.

42 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

IV. MAJOR OPERATIONS DURING THE REPORTING PERIOD

(I) Analysis of principal business

1. Table of movement analysis on the related items in financial statements

Unit and Currency: RMB

Corresponding

period of

Items Current period last year Change (%)

Operating revenue 156494034448.85 141982482605.75 10.22

Operating cost 114437933108.76 103945159570.63 10.09

Selling expenses 15816814510.07 14517816334.58 8.95

Administrative expenses 5891046898.48 5382166653.05 9.45

Financial expenses —350857561.47 53045789.57 –761.42

R&D expenses 5790436804.10 5182598681.20 11.73

Net cash flow generated from

operating activities 11139045781.34 8424060603.43 32.23

Net cash flow generated from

investing activities —10021560348.60 –9191602063.95 –9.03

Net cash flow generated from

financing activities —2065226988.46 –502661934.85 –310.86

Other gains 775214508.42 585424373.34 32.42

Gain on changes in fair value 34753540.63 –29565597.82 217.55

Gain on disposal of assets –7368037.54 –1569698.49 –369.39

Non-operating income 121855656.14 76490746.47 59.31

Non-operating expenses 257738776.06 96898224.12 165.99

Reasons for significant changes in certain indicators:

(1). Reasons for the changes in financial expenses: the decrease of 761.42% over the

corresponding period was mainly due to the increase in foreign exchange gains and

losses resulting from the appreciation of foreign currencies during the current period.

(2). Reasons for the changes in net cash flow from operating activities: the increase of

32.23% over the corresponding period was mainly due to improved profitability and

operational efficiency.

(3). Reasons for the changes in net cash flow from financing activities: the increase of

310.86% over the corresponding period was mainly due to the increase in cash

outflows for the repurchase of minority interests.

(4). Reasons for the changes in other gains: the increase of 32.42% over the corresponding

period was mainly due to the increase in government subsidies over the

corresponding period.Haier Smart Home Co. Ltd. Interim Report 2025 43Section III Management Discussion and Analysis

(5). Reasons for the changes in the gains on changes in fair value: the increase of 217.55%

over the corresponding period was mainly due to the increase in changes in fair value

of equity investments over the corresponding period

(6). Reasons for the changes in gain on disposal of assets: the decrease of 369.39% over

the corresponding period was mainly due to the year-on-year increase in losses from

the disposal of non-current assets during the current period.

(7). Reasons for the changes in non-operating income: the increase of 59.31% over the

corresponding period was mainly due to the year-on-year increase in incomes

generated during the current period that were not directly related to the Company’s

ordinary operation.

(8). Reasons for the changes in non-operating expenses: the increase of 165.99% over the

corresponding period was mainly due to the year-on-year increase in expenses

generated during the current period that were not directly related to the Company’s

ordinary operation.

2. Detailed explanation on significant changes in the operation types and the

components of profit or sources of profit of the Company during the period

□ Applicable √ Not Applicable

(II) Explanations on the major changes in profits caused by non-principal businesses

□ Applicable √ Not Applicable

44 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

(III) Analysis of assets and liabilities

√ Applicable □ Not Applicable

1. Assets and liabilities

Unit: RMB’0000

Percentage of

Percentage of Change in Amount

Amount at the End from the End of the

Percentage of Amount at the End of the Corresponding

Amount at the End of the Corresponding Period of Last Year

Amount at the end of Current Period to Corresponding Period of Last Year to Current Period

Name of Item of Current Period Total Assets (%) Period of Last Year to Total Assets (%) (%)

Monetary funds 5535710.25 18.35 5559755.46 19.12 –0.43

Account receivables 3112579.67 10.32 2649484.55 9.11 17.48

Inventories 4351727.27 14.42 4318985.57 14.86 0.76

Contract assets 149615.94 0.50 99796.37 0.34 49.92

Investment properties 66537.74 0.22 24616.13 0.08 170.30

Long-term equity investments 2141390.02 7.10 2093243.93 7.20 2.30

Fixed assets 3873335.15 12.84 3761321.58 12.94 2.98

Construction in progress 567744.33 1.88 568605.10 1.96 –0.15

Right-of-use assets 632438.49 2.10 584186.96 2.01 8.26

Short-term borrowings 1612761.46 5.35 1378436.74 4.74 17.00

Contract liabilities 571060.37 1.89 1086533.78 3.74 –47.44

Long-term borrowings 1059561.66 3.51 966507.43 3.32 9.63

Lease liabilities 491625.26 1.63 448089.60 1.54 9.72

Other Explanations

Financial assets held for 881544.83 2.92 123601.78 0.43 613.21

trading

Derivative financial assets 7936.51 0.03 14270.97 0.05 –44.39

Bills receivable 690761.19 2.29 1217985.69 4.19 –43.29

Financing receivables 124819.74 0.41 41292.26 0.14 202.28

Non-current assets due within 230757.40 0.76 143975.87 0.50 60.28

one year

Long-term receivables 13902.22 0.05 22472.41 0.08 –38.14

Derivative financial liabilities 44009.64 0.15 7101.13 0.02 519.76

Other payables 3024054.74 10.02 2174613.58 7.48 39.06

Non-current liabilities due 1114878.50 3.70 1653004.05 5.69 –32.55

within one year

Other comprehensive income 228070.06 0.76 82550.29 0.28 176.28

Reasons for significant changes in certain indicators

(1). The increase in financial assets held for trading of 613.21% from the beginning of the

period was mainly due to an increase in short-term wealth management products;

(2). The decrease in derivative financial assets of 44.39% from the beginning of the period

was mainly due to fluctuations in the fair value of forward foreign exchange

contracts;

Haier Smart Home Co. Ltd. Interim Report 2025 45Section III Management Discussion and Analysis

(3). The decrease in bills receivable of 43.29% from the beginning of the period was mainly

due to the discounting of bills;

(4). The increase in financing receivables of 202.28% from the beginning of the period was

mainly due to the increase in bills expected to be discounted and endorsed for

transfer;

(5). The increase in contract assets of 49.92% from the beginning of the period was mainly

due to the increase in accounts receivable with performance obligations;

(6). The increase in non-current assets due within one year of 60.28% was mainly due to

the increase in time deposits due within one year;

(7). The decrease in long-term receivables of 38.14% was mainly due to the recovery of

previous payments;

(8). The increase in investment properties of 170.30% was mainly due to the increase in

leases during the current period;

(9). The increase in derivative financial liabilities of 519.76% was mainly due to fluctuations

in the fair value of forward foreign exchange contracts;

(10). The decrease in contract liabilities of 47.44% from the beginning of the period was

mainly due to the decrease in advance payment with performance obligations;

(11). The increase in other payables of 39.06% was mainly due to the increase in dividend

payable;

(12). The decrease in non-current liabilities due within one year of 32.55% was mainly due

to the decrease in long-term borrowings due within one year;

(13). The increase in other comprehensive income of 176.28% was mainly due to changes

in exchange differences on translation of financial statement.

2. Overseas Assets

√ Applicable □ Not Applicable

(1) Scope of assets

Among the assets overseas assets amounted to 14812771 (unit and

currency:RMB’0000) representing 49.1% of the total assets.

46 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

(2) Explanation of high percentage of overseas assets

√ Applicable □ Not Applicable

Unit and Currency: RMB

Operating revenue

during the reporting Net profit of the

Name of overseas asset Reason for formation Operating mode period reporting period

Overseas Home Appliance and Overseas mergers & Localized Operations with the 79078994757 4720998499

Smart Home Business acquisitions and the integration of R&D

Company’s own manufacturing and marketing

development

Note: Net profit stated in the above table represents operating profit.

3. Restrictions on major assets as of the end of reporting period

□ Applicable √ Not Applicable

4. Other Explanations

□ Applicable √ Not Applicable

(IV) Analysis of investment

1. Overall analysis on external equity investment

√ Applicable □ Not Applicable

(1). Significant equity investment

√ Applicable □ Not Applicable

Unit and Currency: RMB’00000000

Whether the

subject is

principally Impact on

engaged Statement profit and

Name of in the Percentage account Progress as Estimated loss for the Whether

invested investment Investment Investment of Whether to (if Source of Partner Investment of the balance revenue current involved in Disclosure Disclosure index

company Main business business method amount shareholding consolidate applicable) funds (if applicable) period (if any) sheet date (if any) period litigation date (if any) (if any)

Haier Group Enterprise group No Other 12.6 42% No / Converting / Incomplete / / No 28 March Announcement on the

Finance financial undistributed 2025 Capital Increase in

Co. Ltd. company profits into the Investee Haier

services registered Group Finance Co.capital Ltd. by Converting

Undistributed Profits

into Registered

Capital in

Proportion and the

Related-Party

Transaction of Haier

Smart Home Co.Ltd. (Announcement

no.: Lin 2025–008).Total / / / 12.6 / / / / / / / / / / / /

Haier Smart Home Co. Ltd. Interim Report 2025 47Section III Management Discussion and Analysis

(2). Significant non-equity investment

√ Applicable □ Not Applicable

During the reporting period the 13th meeting of the 11th session of the Board of

Directors of the Company considered and approved a new construction project of 3

million units of washing machines in the SCO Economic Demonstration Zone

Jiaozhou Qingdao with an estimated total investment of RMB1.784 billion. It also

considered and approved the proposed purchase of real estate for Haier White

Goods R&D Center for RMB267 million. For details please refer to the Announcement

on Investing in Construction of a New Washing Machine Production Plant with an

Annual Capacity of 3 Million Units of Haier Smart Home Co. Ltd. (Announcement no.:

Lin 2025–016) and the Announcement on the Acquisition of the Real Estate of Haier

White Goods R&D Centre and the Related-party Transaction of Haier Smart Home

Co. Ltd. (Announcement no.: Lin 2025–015) disclosed by the Company on 28 March

2025. For details of other non-equity investment please refer to “Section VIII FinancialReport” for relevant information of items such as construction in progress.

(3). Items measured at fair value

Profits or Losses Cumulative

of Changes in Changes in Fair Provision for Sold/Redeemed

Fair Value during Value Included in Impairment of Purchases during Amount during

Asset Type Opening Balance the Period Equity during the Period the Period the Period Other Changes Closing Balance

Wealth management products 746436121.40 12840207.01 22851173000.00 15292938000.00 8317511328.41

Investment in other equity instruments 6073680870.82 — –374242839.46 49238.16 87115207.36 37784189.09 5650156251.25

Investment in trading equity instruments 195177368.77 18929447.58 31001704.19 183105112.16

Investment funds 294404349.36 25935689.85 8196533.65 12404953.39 –1299744.42 314831875.05

Financing receivables 412922615.25 17123799299.24 16288524466.15 1248197448.34

Derivative financial instruments 71698406.90 –267552013.91 –149398586.76 –15479086.92 –360731280.69

Total 7794319732.50 –209846669.47 –523641426.22 39983218071.05 31711984331.09 21005357.75 15353070734.52

Note: As of 30 June 2025 the aggregate balance of the Company’s foreign exchange derivative transaction

amounted to approximately US$2.634 billion.

48 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

Investment in securities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Profit and loss Accumulated

Carrying arising from fair value Investment Carrying

Initial amount at the changes in fair changes Purchases Disposals profit or loss amount at the

Type of Securities investment Sources of beginning of value during included in during the during the during the end of the

Securities Code Securities Abbreviation cost funding the Period the Period equity Period Period period Period Accounting items

Stock 601328 Bank of Communications 1803769.50 Self-funding 10584698.04 117494.12 10702192.16 Investments in other equity instruments

Stock 600827 Bailian Group 154770.00 Self-funding 430510.84 — 430510.84 Investments in other equity instruments

Stock 300183 Neusoft Carrier 18713562.84 Self-funding 15125624.10 15125624.10 Investments in other equity instruments

Stock 688455 KENGIC 13820053.00 Self-funding 86936035.20 –4275003.34 29611302.75 23204450.92 76254180.03 Trading financial assets

Total / / 34492155.34 / 113076868.18 –4275003.34 117494.12 29611302.75 23204450.92 102512507.13 /

Explanation of investment in securities

□ Applicable √ Not Applicable

Private equity investment

√ Applicable □ Not Applicable

By the end of the reporting period the Company has historically invested in private

equity funds as follows: the Company invested 63.13% share in Qingdao Haier SAIF

Smart Home Industry Investment Center (Limited Partnership) (青島海爾賽富智慧家庭

創業投資中心(有限合伙)); Qingdao RRS Huitong Investment Management Co. Ltd.(青島日日順匯通投資管理有限公司) a subsidiary of the Company invested 49%

share in Guangzhou Heying Investment Partnership (Limited Partnership) (廣州合贏投

資合夥企業(有限合伙)); Qingdao Haishang Chuangzhi Investment Co. Ltd. (青島海尚

創 智 投 資 有 限 公 司) a subsidiary of the Company invested 30% share in

Huizhixiangshun Equity Investment Fund (Qingdao) Partnership (Limited Partnership)

(匯智翔順股權投資基金（青島）合夥企業(有限合伙)) a private equity fund and 50%

equity of Qingdao Ririshun Huizhi Investment Co. Ltd. (青島日日順匯智投資有限責

任公司) a managing partner of the fund; Qingdao Haier Technology Investment Co.Ltd. (青島海爾科技投資有限公司) a subsidiary of the Company invested in private

equity funds: 1.265% share in Beijing-Tianjin-Hebei Industrial Coordinated

Development Investment Fund (Limited Partnership) (京津冀產業協同發展投資基金

(有限合伙)) 14.85% share in Shenzhen TopoScend Capital Phase I Fund (Limited

Partnership) (深圳市投控東海一期基金 (有限合伙)) 24% share in Qingdao Haimu

Smart Home Investment Partnership (Limited Partnership) (青島海慕智家投資合夥企

業（有限合伙)) and invested in fund management companies: 5.01% equity of CMG-SDIC Capital Co. Ltd. (國投招商投資管理有限公司) 15% equity of Shenzhen

TopoScend Capital Co. Ltd. (深圳市投控東海投資有限公司) 49% equity of Qingdao

Haimu Investment Management Co. Ltd. (青島海慕投資管理有限公司).Haier Smart Home Co. Ltd. Interim Report 2025 49Section III Management Discussion and Analysis

Derivative investment

√ Applicable □ Not Applicable

(1). Derivatives investments for hedging purposes during the reporting period

√ Applicable □ Not Applicable

Unit and Currency: RMB’0000

Proportion of

carrying amount

to net assets of

Gains or losses Accumulative Amount the Company at

Type of Initial Carrying amount on fair value changes in fair purchased Amount sold Carrying amount the end of the

derivatives investment at the beginning changes for the value included in during the during the at the end of the reporting period

investment amount of the Period current period equity reporting period reporting period Period (%)

Forward foreign 1014344.00 1014344.00 –26903.00 –14940.00 1885518.00 16.41

exchange

contracts

Forward 4213.00 4213.00 147 3816.00 0.03

commodity

contracts

Total 1018557.00 1018557.00 –26756.00 –14940.00 1889334.00 16.44

Explanation on any significant Accounting principles are based on the Accounting Standards for Business Enterprises. The Company carried out the accountingchanges in the accounting policies treatment for its business in accordance with the relevant regulations of “Accounting Standards for Business Enterprises No. 22and specific accounting and — Recognition and Measurement of Financial Instruments” “Accounting Standards for Business Enterprises No. 24 — Hedgeauditing principles for the hedging Accounting” “Accounting Standards for Business Enterprises No. 37 — Presentation of Financial Instruments” and “Accountingbusiness during the reporting period Standards for Business Enterprises No. 39 — Fair Value Measurement” published by the Ministry of Finance and its guidance to

as compared to the last reporting reflect the relevant items in the balance sheet and the statement of profit or loss which are consistent with those of the previous

period reporting period.Explanation on actual profit or loss The actual profit and loss for the reporting period amounted to RMB–95.3522 million.during the reporting period

Explanation on the effect of Under the premise of ensuring normal production and operation the Company carried out hedging business to reduce the impact

hedging of exchange rate fluctuations on the Company’s production and operation and to realize the Company’s long-term stable

development.Source of funds for derivative Self-owned funds

investments

Risk analysis and explanations on I. Foreign exchange hedging business

risk control measures for positions

in derivatives during the reporting 1. Risk Analysis

period (including but not limited to

market risk liquidity risk credit risk The Company and its holding subsidiaries conduct foreign exchange derivatives business in accordance with the principle of

operational risk legal risk etc.) stability and do not conduct the foreign exchange transaction for speculative purposes. All foreign exchange funds businesses

are based on normal production and operation and rely on specific business operations to avoid and prevent exchange rate risks.However there are also certain risks in conducting foreign exchange funds business:

50 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

(1) Market risk: Forward settlement of foreign exchange: the Company will determine whether to sign a forward contract based

on the cost of the product (basically consisting of RMB) and market risk. Signing the contract equals to fixing the price of

currency exchange. It is effective to resist market fluctuation risk and ensure a reasonable and stable profit level of the

Company through forward settlement of foreign exchange. Forward purchase of foreign exchange: according to the import

contract entered with the customer and exchange rate risk the future currency exchange cost will be fixed through the

unilateral forward purchase of foreign exchange. Although there is a certain risk of loss the forward purchase of foreign

exchange will effectively reduce the market fluctuation risk and fix procurement costs. Other NDF and options businesses are

mainly carried out when failed to sign the ordinary forward settlement/purchase of foreign exchange or the costs are too

high only serving as the supplement of the above businesses. Exchange rate fluctuation risk in currency swap business is

avoided by adjusting the currency of assets and liabilities in order to match the currency of the assets with the currency of

liabilities. Interest rate fluctuation risk in interest rate swap business is avoided by transfer the floating-rate business to fix-rate

business or transfer the fixed-rate business to floating-rate business when the rate is going downward to reduce the costs.All of the above businesses have a real business background and there is no speculation.

(2) Exchange rate fluctuation risk: After the Company fixing the forward exchange rate according to the foreign exchange

management strategy if the actual trend of the foreign exchange rate deviates significantly from the direction of the

Company’s fixed exchange rate fluctuation the cost of the Company after fixing the exchange rate expenditure may exceeds

the cost of not fixing the exchange rate thus forming a loss of the Company. When the foreign exchange rate changes

greatly if the fluctuating direction of the Company’s fixed foreign exchange hedging contract is inconsistent with that of the

foreign exchange rate the foreign exchange loss will be formed; if the exchange rate does not fluctuate in the future the

vast deviation from the foreign exchange hedging contract will also form a foreign exchange loss.

(3) Internal control risk: The foreign exchange derivatives business is highly specialized and complex so it may cause risks due

to imperfect internal control systems.

(4) Transaction default risk: In the event of a default in the counterparty of foreign exchange derivative transaction the Company

would not be able to obtain hedging profits as agreed to hedge the Company’s actual exchange losses resulting in a loss of

the Company.

(5) Customer default risk: The overdue of customer’s accounts receivable and the customer’s order adjustment will make the

actual payment inconsistent with the expected payment which may result in the actual cash flow could not match the carried

out foreign exchange derivative business term or amount completely leading to a loss of the Company.

2. Risk Control Measures Taken by the Company

(1) The Company may not engage in any foreign exchange derivative transactions except those carried out for the purpose of

avoiding exchange rate risks and only for foreign exchange operations related to the Company’s import and export business

and overseas asset/liability management.

(2) The Company implemented approval process in strict compliance with the Foreign Exchange Risk Management Policy and the

Foreign Exchange Derivatives Transaction Management Rules. The general meeting of shareholders of the Company and the

Board of Directors delegate the President/President Office to take responsibility for the operation and management of the

foreign exchange derivatives business the Treasury Department shall act as the handling department and finance

department shall act as the daily review department.

(3) The Company conducts foreign exchange derivatives business with financial institutions such as large banks with legal

qualifications. The financial department timely tracks the changes in the transaction and strictly controls the occurrence of

closing default risk.

(4) The Company conducts foreign exchange derivatives business must base on the Company’s cautious forecast on the foreign

currency receipts and payments and actual business exposure. The delivery date of the foreign exchange derivatives

business must match with the Company’s predicted receipt time deposit time or payment time of the foreign currency or

match with the corresponding redemption term of the foreign currency bank borrowing.II. Bulk Hedging Business

1. Risk Analysis

(1) Market risk: The futures and derivatives market itself has certain systematic risks while hedging requires certain level of price

trend prediction. If the price prediction is directionally incorrect it may cause losses to the Company.Haier Smart Home Co. Ltd. Interim Report 2025 51Section III Management Discussion and Analysis

(2) Policy risk: Significant changes in laws and regulations of the futures and derivatives markets may cause market fluctuations

or make trading impossible which may result in risks.

(3) Funding risk: Due to the strict margin system and daily mark-to-market system in the futures market there may be corresponding

funding floating loss risks. The Company will reasonably allocate its own funds for hedging business control the scale of

funds and conduct funding projections while formulating trading plans to ensure sufficient funds. In the process of business

operations the Company will plan and utilize margins reasonably and adjust funds appropriately to avoid risks.

(4) Operational risk: There may be cases in which suppliers violate their agreements and cancel or delay deliveries resulting in a

mismatch between the actual hedging quantity and period causing losses to the Company.

(5) Internal control risk: Futures and derivatives transactions are more specialized and complex which may give rise to risks caused

by inadequate internal control systems or human errors in operations. The Company has formulated the Management

Measures for Hedging Business of Bulk Raw Materials which contains clear provisions on the authorization scope approval

procedures risk management and other aspects of hedging transactions. The Company shall strengthen internal control

management and improve professionalism implement risk prevention measures and improve the management standard of

hedging business.

2. Risk control measures adopted by the Company

(1) Matching hedging business with the Company’s production and operation to maximize hedging against the risk of market

fluctuations.

(2) Strictly control the scale of hedging funds and reasonably plan and use margins. The Company will reasonably allocate its own

funds for hedging business and will not use raised funds directly or indirectly for hedging.

(3) The Company has formulated the Management Measures for Hedging Business of Bulk Raw Materials which contains clear

provisions on the organizational structure and its responsibilities business processes risk management file management etc.The Company will strictly follow the provisions of the internal control system to control all aspects of the business and will

implement the Management Measures in accordance with the established regulations.

(4) The Company will strengthen the training of relevant personnel to enhance their professionalism and overall quality; strengthen

research on the futures and derivatives market to grasp market changes and design specific operational plans for trading

business.

(5) The internal audit department of the Company will conduct regular and irregular inspections of hedging trading business

supervise hedging trading business personnel in the implementation of the risk management system and risk management

procedures and prevent operational risks in the business in a timely manner.Changes in market price or fair In respect of changes in market prices or fair value of products gains or losses actually realized from the invested derivatives

value of invested derivatives during amounted to RMB–95.3522 million during the reporting period. As for the specific methodology used and the related assumptions

the reporting period where specific and parameter settings: Foreign exchange and interest rate swap forward quotations from financial institutions were used.methodology used and the settings

of relevant assumptions and

parameters should be disclosed in

the fair value analysis of derivatives

Litigation case (if applicable) N/A

Disclosure date of announcement in 28 March 2025

relation to the consideration and

approval of derivatives investment

by the Board (if any)

Disclosure date of announcement in 29 May 2025

relation to the consideration and the

approval of derivatives investment

by shareholders’ general meeting (if

any)

(2). Derivatives investments for investment purposes during the reporting period

□ Applicable √ Not Applicable

52 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

(V) Sale of material assets and equity

□ Applicable √ Not Applicable

(VI) Analysis on major subsidiaries and Investees

√ Applicable □ Not Applicable

Major subsidiaries and investees with an impact of more than 10% on the Company’s

net profit

□ Applicable √ Not Applicable

Acquisition and disposal of subsidiaries during the reporting period

□ Applicable √ Not Applicable

There were no acquisitions or disposals of subsidiaries that had a material impact during the

reporting period. For details of other changes please refer to the relevant contents of sections

headed “CHANGES OF CONSOLIDATION SCOPE” in “Section VIII Financial Report” of this

report.Other explanations

□ Applicable √ Not Applicable

(VII) Structured entities controlled by the Company

□ Applicable √ Not Applicable

V. OTHER DISCLOSURES

(I) Potential risks

√ Applicable □ Not Applicable

1. Risk of decreasing market demand due to macroeconomic slowdown. Sales of white goods

and home appliances exhibits inherent cyclicality tied to discretionary consumer spending

patterns and their expectations of future disposable income growth. Economic slowdown

will reduce consumer spending and cause headwinds to industry growth. In addition the

persistent sluggish property market will also indirectly affect market demand for home

appliances in a negative way.Haier Smart Home Co. Ltd. Interim Report 2025 53Section III Management Discussion and Analysis

2. Risk of price war caused by intensified industry competitions. As industry concentration level

continues to increase in recent years the white goods industry is highly competitive with

persistent commoditization pressures across core product categories. However the

increase in inventory level in certain verticals due to demand-supply imbalance may lead to

price wars. Furthermore rapid technological development scarcity of talents in the

industry shortened product life cycles and relative easiness of copycat increase the

difficulty to maintain margin levels. Nevertheless new products services and technologies

are often associated with higher selling prices. The Company will actively invest more in

R&D to sustain the product roll-out attract more users through continuous innovation and

maintain our brand awareness.

3. Risk of fluctuations in raw material prices. The Company’s products and core components

use metals such as steel aluminum and copper as well as commodities such as plastics

and foams. If raw material prices continue to increase it will put certain pressures on the

production and operations. In addition the Company relies on third party manufacturers

and suppliers for selected raw materials components and manufacturing equipment. Any

disruption in supply chain or significant price increases will have a negative impact on the

Company’s business. As a leader in the industry the Company will take actions and have

contingency plans including volume and price adjustment mechanism and hedging to

reduce the volatility of raw material prices.

4. Operational risks in overseas markets. As manifested by the increasing percentage of revenue

from overseas markets the Company has developed our global business to a certain extent

and established production bases R&D centers and marketing centers in key regions of

the world. Overseas markets are subject to political and economic events (including events

such as military conflicts and wars) different legal systems and regulatory regimes of those

countries and regions. Significant changes in these factors will pose certain risks to the

Company’s local operations. The Company has taken various measures to mitigate the

relevant impacts including collaborating with suppliers and distributors improving

production efficiency to offset the selling expenses potentially expanding the Company’s

supply resources to other countries and adopting safety measures to protect our

employees and assets.

5. Risk of tariff increases. Potential tariff policies implemented and/or to be introduced by the

U.S. and other major economies could negatively impact the existing supply chains of the

industry and the global home appliance players. Higher tariffs would incur extra costs for

export and import reduce profit margins weaken the consumer sentiment and demand

and intensify market competition in target markets. The increasing uncertainties regarding

tariff policies would force home appliance players to reevaluate their supply chain strategies

and footprints increase operational complexities and management costs. To cope with the

potential tariff shocks the Company will actively leverage our localized supply chain

resources in respective markets further optimize supply chain management enhance

production flexibilities and strengthen regional manufacturing and collaboration capabilities.

54 Haier Smart Home Co. Ltd. Interim Report 2025Section III Management Discussion and Analysis

6. Risk of exchange rate fluctuations. In conjunction with the Company’s ongoing expansion of

global business operations a material portion of its import/export transactions and

cross-border settlements are denominated in foreign currencies including but not limited to

the US Dollar (USD) Euro (EUR) and Japanese Yen (JPY). If the exchange rates of these

currencies fluctuate to a certain extent it will impact the Company’s financial performance

and potentially increase the financial costs. In addition the Company’s consolidated

financial statements are denominated in Renminbi while subsidiaries’ financial statements

are measured and reported in the local currencies where they operate. To mitigate these

exposures the Company maintains a structured currency risk management program

utilizing authorized hedging instruments.

7. Risk of relevant policy changes. The home appliance industry is closely related to the

consumer market and property market. Changes in macroeconomic policies consumption

and investment policies property policies and relevant laws and regulations will affect the

product demands and in turn the sales of the Company. The Company will closely monitor

changes in the relevant policies laws and regulations and make forecasts of market

changes in order to ensure further development of the Company.

8. Credit risk. There are possibilities that either the Company may be unable to collect all trade

receivables from its distributors or the distributors are unable to settle the Company’s all

trade receivables in a timely manner. If that is the case the Company’s business financial

status and operation performance may be affected negatively. To mitigate this risk the

Company will maintain flexibilities by offering credit period of 30 to 90 days to certain

distributors based on their credit history and transaction amount.

9. Inventory risk. Excess inventory might occur as the Company may not accurately predict

trends and events at all times and maintain optimal inventory levels. Therefore the

Company may be forced to offer discounts or promotions to accelerate the slow-moving

inventory in these extreme cases. On the other hand inventory shortage may lead to loss

of revenues. The Company will actively manage its inventory and adjust levels according to

market demand movements in addition to the regular impairment tests.

10. Capital expenditure risk. In the current macroeconomic environment characterized by slowing

global economy and declining consumer demand the existing production capacities may

overwhelm the market in extreme case. This could lead to low utilization rate across the

industry lower down profitability and ROEs. The Company will actively manage the

changes in the macroeconomic environment by forecasting and recalibrating market

demand trends optimizing capacity footprint and improving existing utilization rate in order

to minimize capital expenditure risks.(II) Other disclosures

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 55Section IV Corporate Governance

Environmental and Social

I. C HANGES IN DIRECTORS AND SENIOR MANAGEMENT OF THE

COMPANY

√ Applicable □ Not Applicable

Name Position Held Description of Change

Li Huagang Chairman Chief Executive Elected

Officer

Kevin Nolan Director vice president Elected

Sun Danfeng Director vice president Chief Elected

Digital Officer

Gong Wei Vice Chairman Elected

LI Shaohua Director Elected

Yu Hon To David Director Elected

Chien Da-chun Director Elected

Wong Hak Kun Independent director Elected

Li Shipeng Independent director Elected

Wu Qi Independent director Elected

Wang Hua Independent director Elected

Shao Xinzhi Vice Chairman Resigned

Li Kam Fun Director Resigned

Liu Dalin Chairman of the Board of Resigned

Supervisors

Yu Miao Employee supervisor Resigned

Liu Yongfei Supervisor Resigned

Xie Juzhi Vice president Resigned

Li Pan Vice president Appointed

Zhao Yanfeng Vice president Appointed

Li Yang Vice president Appointed

Song Yujun Vice president Appointed

Guan Jiangyong Vice president Appointed

Wu Yong Vice president Appointed

Fu Songhui Vice president Appointed

Huang Decheng Vice president Appointed

Sun Jiacheng Vice president Chief Financial Appointed

Officer

JAMES QUN LIU Vice president Chief Appointed

Compliance Officer

Huang Xiaoyu Vice president Chief Sustainable Appointed

Development Officer

Liu Xiaomei Secretary to the Board of Appointed

Directors

56 Haier Smart Home Co. Ltd. Interim Report 2025Section IV Corporate Governance Environmental and Social

Explanation of changes in Directors Supervisors and senior management of the Company

√ Applicable □ Not Applicable

During the reporting period due to the expiration of terms of office and re-election of the Company’s

Board of Directors and senior management and the repeal of the Board of Supervisors in accordance

with the regulations there were changes in the Company’s Directors Supervisors and senior

management.II. P ROPOSAL OF PROFIT DISTRIBUTION OR CAPITALIZATION OF

CAPITAL RESERVE

Proposal for interim profit distribution and proposal for conversion of capital reserve

into share capital

Whether distributed or converted Yes

Number of bonus shares for every 10 shares (shares) 0

Dividend per every10 shares (RMB) (tax inclusive) 2.69

Number of shares converted for every 10 shares (shares) 0

Description of the proposal of profit distribution or capitalization of capital reserve

Proposal of profit distribution for the reporting period are examined and reviewed by the Board: to

declare a cash dividend of RMB2.69 per 10 shares (tax inclusive) to all shareholders based on the total

number of shares held on record date and after deducting the repurchased shares from the

repurchase account upon the execution of distribution proposal with proposed distribution amounting

to RMB2506684210.62 (tax inclusive). The proportion of cash distribution is 20.83% of the net profit

attributable to shareholder of parent company of the Company for the half year. If there is any change

in the total share capital of the Company during the period from the date of this report to the record

date of the equity distribution the total distribution amount will be remained unchanged with

corresponding adjustment to the proportion of distribution per share.Haier Smart Home Co. Ltd. Interim Report 2025 57Section IV Corporate Governance Environmental and Social

III. EQUITY INCENTIVE PLAN EMPLOYEE STOCK OWNERSHIP PLAN OR

OTHER EMPLOYEE INCENTIVES AND EFFECTS THEREOF

(I) Relevant incentive events disclosed in temporary announcements and without

any subsequent progress or change

√ Applicable □ Not Applicable

Summary of Matters Query Index

Cancellation of certain 2021 and 2022 equity incentive For details please refer to the

options: In view of the fact that the fourth exercise Announcement of Haier Smart

period of the first/reserved grant portion of the 2021 Home Co. Ltd on the

A Share Option Incentive Scheme and the third Cancellation of Certain Share

exercise period of the 2022 A Share Option Incentive Options in the 2021 A Share

Scheme of the Company did not meet the exercise Option Incentive Scheme the

conditions and due to the resignation or 2022 A Share Option Incentive

redesignation of some of the incentive recipients the Scheme disclosed by the

Company cancelled the corresponding 9652135 Company on 30 April 2025 the

share options and 25262727 share options that had Announcement of Haier Smart

been granted but had not yet been exercised. Home Co. Ltd on the

Completion of Cancellation of

Certain Share Options in the

2021 A Share Option Incentive

Scheme the 2022 A Share

Option Incentive Scheme and

relevant contents disclosed by

the Company on 10 May 2025.Introduction of New Phase of A Share and H Share For details please refer to the

Employee Stock Ownership Plan: In order to further 2025 A Share Core Employee

improve the governance mechanism of the Company Stock Ownership Plan of Haier

create shareholder value and promote the Smart Home Co. Ltd (Draft)

comprehensive implementation of the Company’s IoT the 2025 H Share Core

smart home ecological brand strategy the Company Employee Stock Ownership Plan

considered and introduced the 2025 H Share Core of Haier Smart Home Co. Ltd

Employee Stock Ownership Plan of Haier Smart (Draft) the Announcement of

Home Co. Ltd (Draft) and the 2025 A Share Core Resolutions at the General

Employee Stock Ownership Plan of Haier Smart Meeting disclosed on 29 May

Home Co. Ltd (Draft) at the 14th meeting of the 2025 the Announcement of the

11th session of the Board of Directors held by the Completion of the Establishment

Company on 29 April 2025 and the 2024 Annual of Positions for A Share

General Meeting held by the Company on 28 May Employee Stock Ownership Plan

2025. During the reporting period the establishment disclosed on 21 June 2025 and

of positions for 2025 A Share Employee Stock relevant contents.Ownership Plan has been completed while the

establishment of positions for 2025 H Share

Employee Stock Ownership Plan is still in progress.

58 Haier Smart Home Co. Ltd. Interim Report 2025Section IV Corporate Governance Environmental and Social

(II) I ncentive events not disclosed in provisional announcements or with subsequent

development

Equity incentive

□ Applicable √ Not Applicable

Other explanations

□ Applicable √ Not Applicable

Employee stock ownership plan

□ Applicable √ Not Applicable

Other Incentives

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 59Section IV Corporate Governance Environmental and Social

IV. ENVIRONMENTAL INFORMATION OF LISTED COMPANIES AND THEIR

MAJOR SUBSIDIARIES INCLUDED IN THE LIST OF ENTERPRISES

THAT DISCLOSE ENVIRONMENTAL INFORMATION IN ACCORDANCE

WITH THE LAW

√ Applicable □ Not Applicable

Number of enterprises included in the list of enterprises

that disclose environmental information in accordance

with the law (unit) 6

Query index for reports on legal disclosure of

No. Name of enterprise environmental information

1 Hefei Haier Refrigerator Co. Ltd. https://39.145.37.16:8081/zhhb/yfplpub_html/#/home

2 Qingdao Haier Special Refrigerator Co. Ltd. http://221.214.62.226:8090/EnvironmentDisclosure/

3 Qingdao Haier Washing Appliance Co. Ltd. http://221.214.62.226:8090/EnvironmentDisclosure/

4 Qingdao Economic and Technological http://221.214.62.226:8090/EnvironmentDisclosure/

Development Zone Haier Water Heater

Co. Ltd.

5 Qingdao Haier Smart ElectricsEquipment Co. http://221.214.62.226:8090/EnvironmentDisclosure/

Ltd.

6 Zhengzhou Haier Air-conditioning Co. Ltd. http://222.143.24.250:8247/home/home

Other explanations

□ Applicable √ Not Applicable

60 Haier Smart Home Co. Ltd. Interim Report 2025Section IV Corporate Governance Environmental and Social

V. PARTICULARS ON THE EFFORTS TO CONSOLIDATE AND EXPAND ITS

ACHIEVEMENTS IN POVERTY ALLEVIATION AND RURAL AREA

INVIGORATION

√ Applicable □ Not Applicable

The Company attaches importance to the work of poverty alleviation and rural revitalization. In

accordance with the series of national planning and filing requirements and within the scope of

authorization of the general meeting on donations and other matters the Company has provided

targeted support to support technology development and rural revitalization. In the first half of 2025

the Company’s capital expenditure on targeted poverty alleviation amounted to approximately

RMB6780000 which was mainly used for supporting technology development educational poverty

alleviation etc. The Company has actively responded to the call of the government to fulfill its social

responsibilities.During the reporting period an earthquake struck Tingri Shigatse the Tibet Autonomous Region

leaving residents in urgent need of essential cold-weather supplies and food sparking widespread

concern. Haier immediately responded to develop relevant relief initiatives partnering with the Tibet

Kezong Technology* (西藏科棕科技) Haier store to provide assistance to the disaster area. We donated

electric water heaters and daily necessities to the Shigatse Red Cross Society working against time to

provide assistance to the affected people and help residents of Tingri Shigatse quickly resume their

lives and rebuild their homes.Haier Smart Home Co. Ltd. Interim Report 2025 61Section V Significant Issues

I. FULFILLMENT STATUS OF UNDERTAKINGS

(I) T he undertakings made by the ultimate controllers shareholders related parties

acquirer as well as the Company and other relevant parties during or up to the

reporting period

√ Applicable □ Not Applicable

Whether

Any performed in

Background of Type of Date of deadline for Term of a timely and

undertakings undertakings Covenanter Contents of undertakings undertakings performance undertakings strict way

Undertaking related to Eliminate the Haier Group During the period from September 2006 to May 2007 the 27 September Yes Long-term Yessignificant property right Corporation Company issued shares to Haier Group Corporation (“Haier 2006reorganization of defects in land Group”) to purchase the controlling equity in its four

assets etc. subsidiaries namely Qingdao Haier Air-Conditioner

Electronics Co. Ltd. (青島海爾空調電子有限公司) Hefei

Haier Air-conditioning Co. Limited (合肥海爾空調器有限公

司) Wuhan Haier Electronics Co. Ltd. (武漢海爾電器股份

有限公司) Guizhou Haier Electronics Co. Ltd. (貴州海爾電

器有限公司). With regard to the land and property required

in the operation of Qingdao Haier Air-Conditioner Electronics

Co. Ltd. (青島海爾空調電子有限公司) Hefei Haier

Air-conditioning Co. Limited (合肥海爾空調器有限公司)

Wuhan Haier Electronics Co. Ltd. (武漢海爾電器股份有限

公司) (the “Covenantees”) Haier Group made an

undertaking (the “2006 Undertaking”). According to the

content of 2006 Undertaking and then condition of each

Covenantee Haier Group will constantly assure that

Covenantees will lease the land and property owned by

Haier Group for free. Haier Group will make compensation

in the event that the Covenantees suffer loss due to the

unavailability of such land and property.Address peer Haier Smart Home Prior to the Transaction (hereinafter “the Transaction” refers to 31 July 2020 Yes Long-term Yes

competition Co. Ltd. the transaction in relation to the privatisation of Haier

Electronics by Haier Smart Home) Haier Electric was a

controlling subsidiary of the Company and did not compete

with the Company; after the completion of the Transaction

Haier Electric became a wholly-owned or controlling

subsidiary of the Company and no new competition with the

Company existed or will arise. There is no new peer

competition or potential competition between the Company

and other related parties controlled by the controlling

shareholders or the de facto controllers of the Company.

62 Haier Smart Home Co. Ltd. Interim Report 2025Section V Significant Issues

Whether

Any performed in

Background of Type of Date of deadline for Term of a timely and

undertakings undertakings Covenanter Contents of undertakings undertakings performance undertakings strict way

Address Haier Group 1. The Transaction constitutes a connected transaction and 29 July 2020 Yes Long-term Yes

connected Corporation the connected transaction procedures performed under the

transactions Transaction are in compliance with the relevant regulations.The pricing of the connected transaction is fair and there

are no circumstances under which the interests of the listed

company and the non-connected shareholders are

prejudiced. 2. Upon completion of the Transaction the

Company and its affiliates will take lawful and effective

measures to minimize and regulate the connected

transactions with the listed company take the initiative to

safeguard the interests of the listed company and all

shareholders and refrain from taking advantages of

connected transactions for improper benefits. 3. Provided

that there is no conflict with laws and regulations if

connected transactions between the Company and its

affiliates and the listed company occur or exist which

cannot be avoided or for which there are reasonable

reasons the Company and its affiliates will legally enter into

a transaction agreement with the listed company to ensure

strict compliance with the procedures of connected

transactions required by the laws regulations regulatory

documents and the articles of association of the Company

conduct transactions in accordance with the principles of

marketability and fair prices to ensure the fairness and

compliance of connected transactions and refrain from

taking advantages of such connected transactions to

engage in any acts that are detrimental to the interests of

the listed company or its minority shareholders and at the

same time comply with the information disclosure

obligations in accordance with relevant regulations.Address peer Haier Group 1. The Company and its controlling subsidiary Haier COSMO 29 July 2020 Yes Long-term Yes

competition Corporation Co. Ltd. were principally engaged in investment business

during the reporting period and the Company and its

controlling subsidiary Haier COSMO Co. Ltd. (including its

subsidiaries and entities with more than 30% shareholding)

have no real or potential competition with Haier Smart

Home; 2. the domestic and overseas white goods

businesses and assets held by the Company (including the

Company’s subsidiaries and entities with more than 30%

shareholding) have been injected into Haier Smart Home

through asset consolidation and equity transfer in

accordance with the commitments made by the Company in

January 2011 and the requirements for adjusting such

commitments as considered and approved by Haier Smart

Home at its 2014 annual general meeting; 3 Since the

acquisition of 100% of Haier New Zealand Investment

Holding Company Limited (which holds 100% of the shares

in Fisher & Paykel Appliances Holdings Limited) by Haier

Smart Home’s offshore subsidiary Haier Singapore

Investment Holding Co. Ltd. following the completion in

July 2018 the Company (including the Company’s

subsidiaries and entities with more than 30% shareholding)

and Haier Smart Home do not have any competing

relationship in any business areas both within and outside

the PRC. During the reporting period the Company

(including the Company’s subsidiaries and entities with more

than 30% shareholding) did not have any new peer

competition with Haier Smart Home; 4. Upon completion of

the Transaction the Company (including the Company’s

subsidiaries and entities with more than 30% shareholding)

and its affiliates do not have any new or potential peer

competition with Haier Smart Home; 5. During the period

when the Company is the controlling shareholder of Haier

Smart Home and the shares of Haier Smart Home are listed

on the Hong Kong Stock Exchange the Company and its

other subsidiaries and entities with more than 30%

shareholding will not operate any business that competes

with the business engaged by Haier Smart Home and will

not engage in real or potential competition with Haier Smart

Home.Haier Smart Home Co. Ltd. Interim Report 2025 63Section V Significant Issues

Whether

Any performed in

Background of Type of Date of deadline for Term of a timely and

undertakings undertakings Covenanter Contents of undertakings undertakings performance undertakings strict way

Others Haier Group Upon completion of the Transaction the Company will strictly 29 July 2020 Yes Long-term Yes

Corporation comply with the Company Law the Securities Law the

relevant regulations of the China Securities Regulatory

Commission the Shanghai Stock Exchange and the articles

of association of Haier Smart Home etc. fairly exercise

shareholders’ rights and fulfill shareholders’ obligations

refrain from taking advantage of its shareholding position for

improper benefits ensure the listed company will continue

to be completely separate from the Company and other

enterprises on which the Company exercises control and

exerts significant influence in terms of management

personnel assets finance organization and business

operations and maintain the continued independence of the

listed company in terms of management personnel assets

finance organization and business operations. Upon

completion of the Transaction the Company will comply

with the provisions of the Notice on Several Issues

concerning Regulating Fund Transactions between Listed

Companies and Their Affiliates and the External Guarantee

of Listed Companies and the Circular of China Securities

Regulatory Commission and China Banking Regulatory

Commission on Regulating the External Guaranties Provided

by Listed Companies to regulate the external guarantees by

listed companies and their subsidiaries and will not

misappropriate the funds of the listed company and their

subsidiaries. The Company undertakes to strictly fulfill the

above commitments. In the event that the interests of the

listed company are damaged as a result of any breach of

the above commitments by the Company and other

enterprises on which the Company exercises control and

exerts significant influence the Company will legally bear the

corresponding liability for damage.Address HCH (HK) 1. The Transaction constitutes a connected transaction and 29 July 2020 Yes Long-term Yes

connected INVESTMENT the connected transaction procedures performed under the

transactions MANAGEMENT Transaction are in compliance with the relevant regulations.CO. LIMITED The pricing of the connected transaction is fair and there

are no circumstances under which the interests of the listed

company and the non-connected shareholders are

prejudiced. 2. Upon completion of the Transaction the

Company and other enterprises on which the Company

exercises control will take lawful and effective measures to

minimize and regulate the connected transactions with the

listed company take the initiative to safeguard the interests

of the listed company and all shareholders and refrain from

taking advantages of connected transactions for improper

benefits. 3. Provided that there is no conflict with laws and

regulations if connected transactions between the Company

and other enterprises on which the Company exercise

control and the listed company occur or exist which cannot

be avoided or for which there are reasonable reasons the

Company and other enterprises on which the Company

exercises control will legally enter into a transaction

agreement with the listed company to ensure strict

compliance with the procedures of connected transactions

required by the laws regulations regulatory documents and

the articles of association of the Company conduct

transactions in accordance with the principles of

marketability and fair prices and refrain from taking

advantages of such connected transactions to engage in

any acts that are detrimental to the interests of the listed

company or its minority shareholders and at the same time

comply with the information disclosure obligations in

accordance with relevant regulations. 4. Any covenants and

arrangements between the Company and other enterprises

on which the Company exercise control and the listed

company in relation to connected transactions shall not

prevent the other party from conducting business or dealing

with any third party for its own benefit and on equal

competitive terms in the market.

64 Haier Smart Home Co. Ltd. Interim Report 2025Section V Significant Issues

Whether

Any performed in

Background of Type of Date of deadline for Term of a timely and

undertakings undertakings Covenanter Contents of undertakings undertakings performance undertakings strict way

Undertaking related to Eliminate the Haier Group Haier Group Corporation undertakes that it will assure Haier 24 December Yes Long-term Yes

refinancing property right Corporation Smart Home and its subsidiaries of the constant stable and 2013

defects in land unobstructed use of the leased property. In the event that

etc. Haier Smart Home or any of its subsidiaries suffers any

economic loss due to the fact that leased property has no

relevant ownership certificate Haier Group Corporation will

make compensation to impaired party in a timely and

sufficient way and take all reasonable and practicable

measures to support the impaired party to recover to

normal operation before the occurrence of loss. Upon the

expiration of relevant leasing period Haier Group

Corporation will grant or take practicable measures to

assure Haier Smart Home and its subsidiaries of priority to

continue to lease the property at a price not higher than the

rent in comparable market at that time. Haier Group

Corporation will assure Haier Smart Home and its

subsidiaries of the constant stable free and unobstructed

use of self-built property and land of the Group. In the

event that Haier Smart Home or any of its subsidiaries fails

to continue to use self-built property according to its own

will or in original way due to the fact that self-built property

has no relevant ownership certificate Haier Group

Corporation will take all reasonable and practicable

measures to eliminate obstruction and impact or will

support Haier Smart Home or its affected subsidiary to

obtain alternative property as soon as possible if Haier

Group Corporation anticipates it is unable to cope with or

eliminate the external obstruction and impact with its

reasonable effort. For details please refer to the

Announcement of Qingdao Haier Co. Ltd. on the

Formation Current Situation of the Defective Property the

Influence on Operation of Issuer Caused by Uncertainty of

Ownership Solution for the Defect and Guarantee Measures

(L2014–005) published by the Company on the four major

securities newspapers and the website of Shanghai Stock

Exchange on 29 March 2014.Undertakings related to Others Haier Smart Home The Company will not provide loans or any other forms of 15 September Yes The completion of Yes

equity incentive Co. Ltd financial assistance including guaranteeing their loans to 2021/28 equity incentive

any incentive recipient for acquiring relevant stock options June 2022 implementation

under this incentive plan.Other undertakings Asset injection Haier Group Inject the assets of Haier Photoelectric to the Company or December Yes 30 June 2030 Yes

Corporation dispose such assets through other ways according to the 2015/March

requirements of the domestic supervision before June 2030. 2025

For more details please refer to the Announcement of Haier

Smart Home Co. Ltd. on the Changes in Commitments of

Certain Asset Injection (L2025–013) published by the

Company on the four major securities newspapers and the

website of Shanghai Stock Exchange on 28 March 2025

the Announcement of relevant general meeting resolutions

disclosed on 29 May 2025.Haier Smart Home Co. Ltd. Interim Report 2025 65Section V Significant Issues

II. NON-OPERATING UTILIZATION OF FUNDS BY CONTROLLING

SHAREHOLDERS AND OTHER RELATED PARTIES DURING THE

REPORTING PERIOD.□ Applicable √ Not Applicable

III. INFORMATION ON NON-COMPLIANCE GUARANTEES

□ Applicable √ Not Applicable

IV. INFORMATION ON INTERIM AUDIT

□ Applicable √ Not Applicable

V. CHANGES IN MATTERS COVERED BY THE NON-STANDARD AUDIT

OPINION ON THE PREVIOUS YEAR’S ANNUAL REPORT AND ITS

HANDLING

□ Applicable √ Not Applicable

VI. MATTERS RELATING TO BANKRUPTCY AND RESTRUCTURING

□ Applicable √ Not Applicable

VII. MATERIAL LITIGATION AND ARBITRATION MATTERS

□ Material litigation and arbitration matter during the reporting period

√ No material litigation and arbitration matters during the reporting period

VIII. PUNISHMENT AND CORRECTION ON THE LISTED COMPANY AND ITS

DIRECTORS SENIOR MANAGEMENT CONTROLLING SHAREHOLDERS

AND ULTIMATE CONTROLLERS DUE TO SUSPECT OF LAW

VIOLATIONS AND THE ISSUE OF RECTIFICATION

□ Applicable √ Not Applicable

IX. EXPLANATION OF THE INTEGRITY STATUS OF THE COMPANY AND

ITS CONTROLLING SHAREHOLDERS AND ULTIMATE CONTROLLER

DURING THE REPORTING PERIOD

□ Applicable √ Not Applicable

66 Haier Smart Home Co. Ltd. Interim Report 2025Section V Significant Issues

X. SIGNIFICANT RELATED-PARTY TRANSACTIONS

(I) Related-party transactions relating to daily operation

1. Matters that have been disclosed in temporary announcements and with no

subsequent progress or change

√ Applicable □ Not Applicable

Summary of matters Query index

Renewal of the Framework Agreement on For details please refer to the

Regular Related-Party Transaction and Announcement on the Renewal of the

the Estimated Related-Party Transaction Framework Agreement on Regular

Limit: During the reporting period the Related-Party Transaction and the

Company renewed its regular related- Estimated Related-Party Transaction Limit

party transaction with the related parties of Haier Smart Home Co. Ltd. disclosed

for the procurement of products and by the Company on 28 March 2025 and

materials for the period from 2026 to other related announcements as well as

2028 which was approved by the the Announcement of Resolutions at the

shareholders’ meeting. Shareholders’ Meeting disclosed on 29

May 2025.

2. Matters that have been disclosed in temporary announcements and with subsequent

progress or change

√ Applicable □ Not ApplicablePursuant to among others the “Product and Materials Procurement Framework Agreementbetween Haier Smart Home Co. Ltd. and Haier Group Corporation” 《( 海爾智家股份有限公 司 與 海 爾 集 團 公 司 之 產 品 及 物 料 採 購 框 架 協 議》) and the “Services ProcurementFramework Agreement between Haier Smart Home Co. Ltd. and Haier Group Corporation”

《( 海爾智家股份有限公司與海爾集團公司之服務採購框架協議》) considered and approved

at the 28th meeting of the 10th session of the Board of Directors and the 2021 AnnualGeneral Meeting and the “Resolution of Haier Smart Home Co. Ltd. on Renewing theFramework Agreement on Financial Services with Haier Group Corporation and Haier GroupFinance Co. Ltd. and Estimated Amount of Connected Transactions” 《( 海爾智家股份有限公司關於與海爾集團公司、海爾集團財務有限責任公司續簽〈金融服務框架協議〉暨預計關聯交易額度的議案》) considered and approved at the 4th meeting of the 11th session of

the Board of Directors and the 2022 Annual General Meeting the Company has made

estimation on the connected transactions for the next three years as detailed in the

aforesaid announcements regarding the resolutions of the meetings.For the actual performance of the Company’s connected transactions during the half year

of 2025 please refer to “Related parties and related-party transactions” under Section VIII.Financial Report set out in this regular report.Haier Smart Home Co. Ltd. Interim Report 2025 67Section V Significant Issues

3. Matters not disclosed in temporary announcements

□ Applicable √ Not Applicable

(II) Related-party transactions regarding acquisition or disposal of assets/equity

1. Matters disclosed in temporary announcements and with no subsequent progress

or change

√ Applicable □ Not Applicable

Summary of matters Query index

Acquisition of the Real Estate of Haier For details please refer to the

White Goods R&D Centre and Related- Announcement on the Acquisition of the

party Transaction: Qingdao Haier Air Real Estate of Haier White Goods R&D

Conditioner Gen Corp. Ltd. the Centre and Related-party Transaction of

Company’s wholly-owned subsidiary Haier Smart Home Co. Ltd. disclosed by

purchased the Real Estate of Haier the Company on 28 March 2025.White Goods R&D Centre from Haier

Group Corporation to meet its office

needs. The purchase price was

RMB267.24 million.

2. M atters that have been disclosed in temporary announcements and with subsequent

progress or change

□ Applicable √ Not Applicable

3. Matters not disclosed in temporary announcements

□ Applicable √ Not Applicable

4. I f performance agreement is involved the performance achieved during the reporting

period shall be disclosed

□ Applicable √ Not Applicable

68 Haier Smart Home Co. Ltd. Interim Report 2025Section V Significant Issues

(III) Significant related-party transactions of joint external investment

1. Matters that have been disclosed in temporary announcements and with no

subsequent progress or change

√ Applicable □ Not Applicable

Overview of the matter Query index

Haier Group Finance Co. Ltd. (hereinafter For more details please refer to the

the “Finance Company”) planned to Announcement on the Proportional

increase its capital by converting Capital Increase of the Joint-stock

undistributed profits into capital with a Company Haier Group Finance Co. Ltd.total capital increase of RMB3 billion. by Converting Undistributed Profits into

Upon completion of the capital increase Capital and Related-Party Transaction of

Qingdao Haier Air-Conditioner Haier Smart Home Co. Ltd.’ (L2025–

Electronics Co. Ltd. and Qingdao Haier 008) disclosed by the Company on 28

Air Conditioner Gen Corp. Ltd. the March 2025.Company’s subsidiaries as well as Haier

Group Corporation and Qingdao Haikeda

Electronics Co. Ltd. the Company’s

related parties will increase their capital

contributions to the Finance Company in

proportion to their existing shareholding

and the shareholding of each party in the

Finance Company will remain

unchanged.

2. Matters that have been disclosed in temporary announcements and with subsequent

progress or change

□ Applicable √ Not Applicable

3. Matters not disclosed in temporary announcements

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 69Section V Significant Issues

(IV) Amounts due to or from related parties

1. M atters that have been disclosed in temporary announcements and with no

subsequent progress or change

□ Applicable √ Not Applicable

2. Matters that have been disclosed in temporary announcement and with subsequent

progress or change

□ Applicable √ Not Applicable

3. Matters not disclosed in temporary announcements

□ Applicable √ Not Applicable

(V) Financial business between the Company and the finance company with which

it has a related relationship the company’s controlling finance company and

related parties

√ Applicable □ Not Applicable

1. Deposit business

√ Applicable □ Not Applicable

Unit and Currency: RMB

Changes of the period

Balance as at the Total amount Total amount

Maximum daily Range of deposit beginning of the deposited during withdrawn during Balance as at the

Related party Relationship deposit limit interest period the period the period end of the period

Haier Group Finance Subsidiary of Haier 34 billion 0.00012%–4.1% 33884585069.50 265681947201.56 265600323759.92 33966208511.13

Co. Ltd Group

Total / / / 33884585069.50 265681947201.56 265600323759.92 33966208511.13

70 Haier Smart Home Co. Ltd. Interim Report 2025Section V Significant Issues

2. Lending business

√ Applicable □ Not Applicable

Unit and Currency: RMB

Changes of the period

Total amount Total amount

Balance as at deposited withdrawn Balance as at

Range of loan the beginning during the during the the end of the

Related party Relationship Loan limit interest of the period period period period

Haier Group Subsidiary of 10 billion 1.828%–4.9% 196200183.66 2126324323.00 28461903.15 2294062603.51

Finance Co. Haier Group

Ltd

Total / / / 196200183.66 2126324323.00 28461903.15 2294062603.51

3. Trustee business or other finance businesses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Actual number

Related party Relationship Type of business Total amount of occurrence

Haier Group Subsidiary of Haier Foreign exchange 5.5 billion 724141204.80

Finance Co. Ltd Group derivatives

products

Haier Group Subsidiary of Haier Service charge 80 million 4336109.25

Finance Co. Ltd Group

4. Other explanations

□ Applicable √ Not Applicable

(VI) Other material related transactions

□ Applicable √ Not Applicable

(VII) Others

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 71Section V Significant Issues

XI. SIGNIFICANT CONTRACTS AND THEIR EXECUTION

(I) Trusteeship contracting and leasing

□ Applicable √ Not Applicable

During the reporting period the Company had no material escrow matters. Up to now the

following entrusted assets that have been approved by the Company’s shareholders’ meeting are

still in effect:

According to Haier Group’s commitment on further supporting the development of Qingdao Haier

and resolving peer competition to reduce connected transactions based on the fact that

Qingdao Haier Optoelectronics Co. Ltd. (青島海爾光電有限公司) and its subsidiaries the main

body of Haier Group engaging in the color television business are still in a period of

transformation and integration and their financial performance has not yet met the Company’s

expectations Haier Group is unable to complete the transfer before the aforesaid commitment

period. Haier Group intends to entrust the Company with the operation and management of the

escrow assets and pay the Company an annual escrow fee of RMB1 million during the escrow

period.(II) Significant guarantees performed and outstanding during the reporting period

√ Applicable □ Not Applicable

Unit and Currency: RMB’0000

External guarantees provided by the Company (excluding guarantees for subsidiaries)

Date of

Relationship occurrence Whether

between the of the Whether the Overdue Whether Related-

guarantor and guarantee Expiration guarantee Whether the amount of there is a party

the listed Secured Amount of (date of Commencement date of Type of Main debt Collateral has been guarantee is the counter- guarantee

Guarantor company party guarantee agreement) date of guarantee guarantee guarantee situation (if any) fulfilled overdue guarantee guarantee or not Relationship

Total amount of guarantee occurred during the reporting period (excluding guarantees for subsidiaries)

Total balance of guarantee at the end of the reporting period (A) (excluding guarantees for subsidiaries)

Guarantees provided by the Company for subsidiaries

Total amount of guarantees for subsidiaries occurred during the reporting period 1939517

Total balance of guarantees for subsidiaries at the end of the reporting period (B) 1160607

Total amount of guarantees provided by the Company (including guarantees for subsidiaries)

Total amount of guarantee (A + B) 1160607

Ratio of total amount of guarantees to net assets of the Company (%) 10.1

Including:

Amount of guarantees for shareholders ultimate controllers and their related parties (C) 0

Amount of debt guarantees provided directly or indirectly for the secured party with asset-liability ratio exceeding 70% (D) 664557

The amount of total amount of guarantee in excess of 50% of net assets (E) 0

Total amount of the above three guarantees (C + D + E) 664557

Explanation of possibly bearing related discharge duty for premature guarantees No

Explanation of guarantee status No

(III) Other major contracts

□ Applicable √ Not Applicable

72 Haier Smart Home Co. Ltd. Interim Report 2025Section V Significant Issues

XII. EXPLANATION OF PROGRESS IN USE OF PROCEEDS

□ Applicable √ Not Applicable

XIII. STATEMENT ON OTHER SIGNIFICANT EVENTS

√ Applicable □ Not Applicable

Entrusted wealth management: By the end of the reporting period the balance of the Company’s

entrusted wealth management amounted to RMB8.280 billion. Under the premise of ensuring sufficient

capital required by the principal operating activities and daily operations the Company and some of its

subsidiaries purchased some low-risk 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 president’s office meeting and under the condition of ensuring fund safety.Haier Smart Home Co. Ltd. Interim Report 2025 73Section VI Changes in Shares and

Information About Shareholders

I. CHANGES IN SHARE CAPITAL

(I) Table of Changes in shares

1. Table of Changes in shares

During the reporting period there was no change in the total number of shares and share

capital structure of the Company.

2. Statement on the changes in shares

□ Applicable √ Not Applicable

3. Effect of changes in shares on the financial indicators such as earnings per share

and net assets per share (if any) after the reporting period to the disclosure date

of interim report

□ Applicable √ Not Applicable

4. Other disclosure deemed necessary by the Company or required by securities

regulatory authorities

□ Applicable √ Not Applicable

(II) Changes in shares with selling restrictions

□ Applicable √ Not Applicable

II. INFORMATION ON SHAREHOLDERS

(I) Total number of shareholders:

Total number of ordinary shareholders by the end of the reporting period 207505

Total numbers of preferential shareholders with restoration of voting rights 0

by the end of the reporting period

74 Haier Smart Home Co. Ltd. Interim Report 2025Section VI Changes in Shares and Information About Shareholders

(II) Table of shareholdings of top ten shareholders top ten shareholders of tradable

shares (or shares without selling restrictions) by the end of the reporting period

Unit: share

Shareholdings of top ten shareholders (excluding shares lent out under refinancing)

Increase/

decrease Number of Number of

during the shares held shares held

Name of shareholder reporting at the end of Percentage with selling Status of shares pledged Nature of

(full name) period the period (%) restrictions marked or frozen shareholder

Status Number

HKSCC NOMINEES LIMITED 2313497562 24.66 Unknown Unknown

(note)

Haier COSMO Co. Ltd. (海爾卡 1258684824 13.41 None Domestic non-state-

奧斯股份有限公司) owned legal entity

Haier Group Corporation 1072610764 11.43 None Domestic non-state-

owned legal entity

HCH (HK) INVESTMENT 538560000 5.74 None Foreign legal entity

MANAGEMENT CO. LIMITED

Hong Kong Securities Clearing 449764199 4.79 None Unknown

Co. Ltd.China Securities Finance 182592654 1.95 None Unknown

Corporation Limited

Qingdao Haier Venture & 172252560 1.84 None Domestic non-state-

Investment Information Co. owned legal entity

Ltd. (青島海爾創業投資諮詢有

限公司)

Qingdao Haichuangzhi 133791058 1.43 None Domestic non-state-

Management Consulting owned legal entity

Enterprise (Limited Partnership)(青島海創智管理諮詢企業（有限合夥）)

Industrial and Commercial Bank 73636698 0.78 None Unknown

of China-SSE 50 Exchange

Traded Open-End Index

Securities Investment Fund

(中國工商銀行—上證50交易

型開放式指數證券投資基金)

Industrial and Commercial Bank of 66918128 0.71 None Unknown

China Limited — Huatai-

PineBridge CSI 300 Exchange

Traded Open-End Index

Securities Investment Fund

(中國工商銀行股份有限公司

—華泰柏瑞滬深300交易型開

放式指數證券投資基金)

Haier Smart Home Co. Ltd. Interim Report 2025 75Section VI Changes in Shares and Information About Shareholders

Shareholdings of top ten shareholders without selling restrictions (excluding shares lent

out under refinancing and executive lock-up shares)

Number of

tradable shares

held without

selling

Name of shareholder restrictions Class and number of shares

Class Number

HKSCC NOMINEES LIMITED 2313497562 Overseas listed 2313497562

foreign shares

Haier COSMO Co. Ltd. (海爾卡奧 1258684824 RMB ordinary 1258684824

斯股份有限公司)

Haier Group Corporation 1072610764 RMB ordinary 1072610764

HCH (HK) INVESTMENT 538560000 Overseas listed 538560000

MANAGEMENT CO. LIMITED foreign shares

Hong Kong Securities Clearing Co. 449764199 RMB ordinary 449764199

Ltd.China Securities Finance 182592654 RMB ordinary 182592654

Corporation Limited

Qingdao Haier Venture & 172252560 RMB ordinary 172252560

Investment Information Co. Ltd.(青島海爾創業投資諮詢有限

公司)

Qingdao Haichuangzhi 133791058 RMB ordinary 133791058

Management Consulting

Enterprise (Limited Partnership)(青島海創智管理諮詢企業（有限合夥）)

Industrial and Commercial Bank of 73636698 RMB ordinary 73636698

China -SSE 50 Exchange Traded

Open-End Index Securities

Investment Fund (中國工商銀行

—上證50交易型開放式指數證

券投資基金)

Industrial and Commercial Bank of 66918128 RMB ordinary 66918128

China Limited — Huatai-Pine

Bridge CSI 300 Exchange Traded

Open-End Index Securities

Investment Fund (中國工商銀行

股份有限公司—華泰柏瑞滬深

300交易型開放式指數證券投資

基金)

76 Haier Smart Home Co. Ltd. Interim Report 2025Section VI Changes in Shares and Information About Shareholders

Number of

tradable shares

held without

selling

Name of shareholder restrictions Class and number of shares

Class Number

Explanation on repurchase account As at the end of the reporting period the repurchase

of top ten shareholders accounts of the Company held a total of 60269270

shares.Explanation on delegated voting None

rights entrusted voting rights

abstained voting rights of the

above shareholders

Related parties or parties acting in (1) Haier COSMO Co. Ltd. (海爾卡奧斯股份有限公司)

concert among the aforesaid is a subsidiary of Haier Group Corporation. Haier

shareholders Group Corporation holds 51.20% of its equity.Qingdao Haier Venture & Investment Information

Co. Ltd. (青島海爾創業投資諮詢有限公司) HCH

(HK) INVESTMENT MANAGEMENT CO. LIMITED

and Qingdao Haichuangzhi Management

Consulting Enterprise (Limited Partnership) (青島海

創智管理諮詢企業（有限合伙）) are parties acting

in concert with Haier Group Corporation; (2) The

Company is not aware of the existence of any

connections of other shareholders.Explanation of preferential N/A

shareholders with restoration of

voting rights and their

shareholdings

Note: HKSCC NOMINEES LIMITED is the Banking Collection Account for the shareholders of the Company’s H-shares which

is the original data provided by China Hong Kong securities registration agency to the Company after the merger

according to local market practices and technical settings not representing the ultimate shareholder.Haier Smart Home Co. Ltd. Interim Report 2025 77Section VI Changes in Shares and Information About Shareholders

Shareholders holding more than 5% of the shares top ten shareholders and top ten holders of

outstanding shares without selling restrictions participating in the lending of shares under the

refinancing business

□ Applicable √ Not Applicable

Changes in top ten shareholders and top ten holders of outstanding shares without selling

restrictions due to lending/returning under refinancing as compared to the previous period.□ Applicable √ Not Applicable

Number of shares held by top ten shareholders with selling restrictions and the selling

restrictions

□ Applicable √ Not Applicable

(III) Strategic investors or general legal persons who became the top ten

shareholders due to placing of new shares

□ Applicable √ Not Applicable

III. DIRECTORS SENIOR MANAGEMENT

(I) Changes of shareholding of current and retired directors and senior management

during the reporting period

□ Applicable √ Not Applicable

Other explanations

□ Applicable √ Not Applicable

78 Haier Smart Home Co. Ltd. Interim Report 2025Section VI Changes in Shares and Information About Shareholders

(II) Incentive share option granted to directors and senior management during the

reporting period

√ Applicable □ Not Applicable

Unit: ’0000 Shares

Number of Shares

newly subject to

Number of granted Shares of option

options options exercisable exercise Number of

held at the during the rights during during the options held

beginning of reporting the reporting reporting at the end of

Name Position the period period period period the period

Li Huagang Director 36.56 0 0 –18.28 18.28

Gong Wei Director 18.28 0 0 –9.14 9.14

Li Shaohua Director 6.24 0 0 –3.12 3.12

Sun Danfeng Director 3.75 0 0 –1.87 1.87

Li Pan Senior management 18.28 0 0 –9.14 9.14

Zhao Yanfeng Senior management 18.73 0 0 –9.36 9.36

Li Yang Senior management 18.28 0 0 –9.14 9.14

Song Yujun Senior management 12.49 0 0 –6.24 6.24

Guan Jiangyong Senior management 9.14 0 0 –4.57 4.57

Wu Yong Senior management 9.14 0 0 –4.57 4.57

Fu Songhui Senior management 7.49 0 0 –3.75 3.75

Huang Decheng Senior management 9.99 0 0 –4.99 4.99

Sun Jiacheng Senior management 9.99 0 0 –4.99 4.99

JAMES QUN Senior management 10.24 0 0 –10.24 0

LIU

Huang Xiaowu Senior management 18.28 0 0 –9.14 9.14

Liu Xiaomei Senior management 5.82 0 0 –2.91 2.91

Total / 212.70 0 0 –111.45 101.21

Note: The “shares subject to stock option exercised during the reporting period” in the table above refer to the changes

resulting from the partial cancellation of share options by the Company during the reporting period (for details pleaserefer to the disclosure in “(I) Relevant incentive events disclosed in temporary announcements and without anysubsequent progress or change” in SECTION IV — “III. EQUITY INCENTIVE PLAN EMPLOYEE STOCK OWNERSHIPPLAN OR OTHER EMPLOYEE INCENTIVES AND EFFECTS THEREOF”.(III) Other explanations

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 79Section VI Changes in Shares and Information About Shareholders

IV. CHANGES IN CONTROLLING SHAREHOLDER AND THE ULTIMATE

CONTROLLER

□ Applicable √ Not Applicable

V. RELEVANT INFORMATION OF PREFERRED SHARES

□ Applicable √ Not Applicable

80 Haier Smart Home Co. Ltd. Interim Report 2025Section VII Relevant Information of

Corporate Bonds

I. C ORPORATE BOND (INCLUDING ENTERPRISE BOND) AND

NON-FINANCIAL CORPORATE DEBT FINANCING INSTRUMENTS

√ Applicable □ Not Applicable

(I) Corporate bonds (including enterprise bonds)

□ Applicable √ Not Applicable

(II) Funds raised by corporate bonds

□ Corporate bonds involved the use or rectification of raised funds during the reporting period

√ All corporate bonds of the Company did not involve the use or rectification of raised funds during

the reporting period.(III) Other matters that should be disclosed for special purpose bonds

□ Applicable √ Not Applicable

(IV) Important matters related to corporate bonds during the reporting period

□ Applicable √ Not Applicable

(V) Debt financing instruments of non-financial enterprises in the interbank bond

market

√ Applicable □ Not Applicable

1. Basic information on debt financing instruments of non-financial enterprises

Unit and Currency: RMB’00000000

Whether

there is a

Investor risk of

Principal and suitability termination

Expiration Bond Interest rate interest repayment Trading arrangements Trading of listing

Bond name Abbreviation Code Release date Interest date date balance (%) method venues (if any) mechanism and trading

2025 First Tranche of Green 25 Haier Smart 102580830 25 February 26 February 26 February 15 1.99 None / NO

two-New Medium-term Home MTN001 2025 2025 2028

Notes of Haier Smart (Green Annual interest

Home Co. Ltd. Two-New) payment with the

Interbank

2025 Second Tranche of 25 Haier Smart 102582498 17 June 2025 18 June 2025 18 June 20 1.66 principal None / NO

bond market

Green Two-new Science Home MTN002 2028 repayment at

and Technology (Science and maturity.Innovation Bonds Haier Innovation

Smart Home Co. Ltd. Bond)

Haier Smart Home Co. Ltd. Interim Report 2025 81Section VII Relevant Information of Corporate Bonds

The Company’s response to the risk of termination of listing and trading of bonds

□ Applicable √ Not Applicable

Overdue bonds

□ Applicable √ Not Applicable

Explanation of overdue debts

□ Applicable √ Not Applicable

2. Triggering and enforcement of company or investor option clauses and investor

protection clauses

□ Applicable √ Not Applicable

3. Adjustment of credit rating results

□ Applicable √ Not Applicable

4. The implementation and changes of guarantees debt repayment plans and other

debt repayment safeguard measures during the reporting period and their impacts

□ Applicable √ Not Applicable

5. Explanation of other situations of debt financing instruments of non-financial

enterprises

□ Applicable √ Not Applicable

(VI) The Company’s consolidated losses during the reporting period exceeded 10%

of its net assets at the end of the previous year

□ Applicable √ Not Applicable

82 Haier Smart Home Co. Ltd. Interim Report 2025Section VII Relevant Information of Corporate Bonds

(VII) Key accounting data and financial indicators

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase/decrease at

the end of the

reporting period

At the end of the At the end of compared with the

Main indicators reporting period last year end of last year (%)

Current ratio 1.06 1.02 4.56

Quick ratio 0.78 0.73 6.62

Gearing ratio (%) 59.37 59.14 0.39

Increase/decrease for

the reporting

For the reporting period compared

period (January- The corresponding with the corresponding

June) period of last year period of last year (%)

Net profit after deducting non- 11702408556.70 10160504902.38 15.18

recurring gains and losses

EBITDA to total debt ratio 24.58% 23.30% 5.51

Interest coverage ratio 11.37 11.36 0.03

Cash interest coverage ratio 7.70 6.73 14.49

EBITDA interest coverage ratio 14.26 14.54 –1.94

II. CONVERTIBLE CORPORATE BOND

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 83Section VIII Financial Report

I. AUDIT REPORT

□ Applicable √ Not Applicable

II. FINANCIAL STATEMENTS

Consolidated Balance Sheet

30 June 2025

Prepared by: Haier Smart Home Co. Ltd.Unit and Currency: RMB

Items Notes 30 June 2025 31 December 2024

Current assets:

Monetary funds VII.1 55357102536.82 55597554622.83

Provision of settlement fund

Funds lent

Financial assets held for trading VII.2 8815448315.62 1236017839.53

Derivative financial assets VII.3 79365117.40 142709716.91

Bills receivable VII.4 6907611901.39 12179856870.01

Accounts receivable VII.5 31125796665.70 26494845510.56

Financing receivables VII.6 1248197448.34 412922615.25

Prepayments VII.7 1861233589.08 2378144459.47

Premiums receivable

Reinsurance accounts receivable

Reinsurance contract reserves receivable

Other receivables VII.8 4228793070.44 3601357495.02

Including: Interest receivables 904741268.55 771591076.67

Dividends receivables

Financial assets purchased under resale

agreements

Inventories VII.9 43517272732.84 43189855697.96

Including: Data resources

Contract assets VII.10 1496159397.94 997963705.67

Assets held for sale

Non-current assets due within one year VII.11 2307574005.86 1439758652.55

Other current assets VII.12 4330601827.06 4443274038.03

Total current assets 161275156608.49 152114261223.79

Non-current assets:

Loans and advances granted

Debt investments VII.13 14590918331.42 15474759856.99

Other debt investments

Long-term receivables 139022168.65 224724107.31

Long-term equity investments VII.14 21413900164.48 20932439255.93

Investments in other equity instruments VII.15 5650156251.25 6073680870.82

84 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Items Notes 30 June 2025 31 December 2024

Other non-current financial assets

Investment properties VII.16 665377401.85 246161259.83

Fixed assets VII.17 38733351465.18 37613215769.46

Construction in progress VII.18 5677443291.08 5686050990.48

Biological assets for production

Oil and gas assets

Right-of-use assets VII.19 6324384910.10 5841869564.36

Intangible assets VII.20 14455019794.04 14042940068.17

Including: Data resources

Development cost VIII.2 236103656.27 267267592.92

Including: Data resources

Goodwill VII.21 27834626137.04 27384007599.06

Long-term prepaid expenses VII.22 604735820.92 598216433.64

Deferred income tax assets VII.23 2441521911.44 2477206492.36

Other non-current assets VII.24 1658350424.87 1759556893.63

Total non-current assets 140424911728.59 138622096754.96

Total assets 301700068337.08 290736357978.75

Current liabilities:

Short-term borrowings VII.25 16127614637.24 13784367443.93

Borrowings from central bank

Funds borrowed

Financial liabilities held for trading

Derivative financial liabilities VII.26 440096398.09 71011310.01

Bills payable VII.27 25408488465.99 21220364311.81

Accounts payables VII.28 53257299256.55 54665277420.32

Receipts in advance

Contract liabilities VII.29 5710603667.36 10865337767.67

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 VII.30 4438435647.30 5057260277.99

Taxes payable VII.31 3608609516.38 3915219916.17

Other payables VII.32 30240547430.91 21746135764.08

Including: Interest payables

Dividends payables 8995192390.93 14082609.41

Fees and commissions payable

Reinsurance Accounts payables

Liabilities held for sale

Non-current liabilities due within one year VII.33 11148785048.80 16530040461.37

Other current liabilities VII.34 1468735367.99 1899945460.39

Total current liabilities 151849215436.61 149754960133.74

Haier Smart Home Co. Ltd. Interim Report 2025 85Section VIII Financial Report

Items Notes 30 June 2025 31 December 2024

Non-current liabilities:

Deposits for insurance contracts

Long-term borrowings VII.35 10595616602.87 9665074313.67

Bonds payable VII.36 3500000000.00

Including: Preference shares

Perpetual bonds

Lease liabilities VII.37 4916252581.97 4480895997.36

Long-term payables VII.38 138177568.54 188220056.59

Long-term payables for staff’s

remuneration VII.39 2659860931.78 2561647446.35

Estimated liabilities VII.40 2404338137.69 2386261752.92

Deferred income VII.41 1311378644.13 1252216590.03

Deferred income tax liabilities VII.23 1623752433.04 1547287169.00

Other non-current liabilities 122217515.04 98073333.45

Total non-current liabilities 27271594415.06 22179676659.37

Total liabilities 179120809851.67 171934636793.11

Owners’ equity (or shareholders’

equity):

Paid-in capital (or share capital) VII.42 9382913334.00 9382913334.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserve VII.43 19844397232.25 20310218222.04

Less: treasury stock VII.44 4367132060.90 3510728776.44

Other comprehensive income VII.45 2280700601.57 825502860.47

Special reserve

Surplus reserve VII.46 5296602892.45 5296602892.45

General risk provisions

Undistributed profits VII.47 82456809019.18 79474366234.70

Total equity attributable to owners (or

shareholders) of the Parent Company 114894291018.55 111778874767.22

Minority shareholders’ interests 7684967466.86 7022846418.42

Total owners’ equity (or shareholders’

equity) 122579258485.41 118801721185.64

Total liabilities and owners’ equity (or

shareholders’ equity) 301700068337.08 290736357978.75

Person in charge of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying Ke

86 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Balance Sheet of the Parent Company

30 June 2025

Prepared by: Haier Smart Home Co. Ltd.Unit and Currency: RMB

Items Notes 30 June 2025 31 December 2024

Current Assets:

Monetary funds 10337792458.42 8721089765.37

Financial assets held for trading 6094300111.12

Derivative financial assets

Bills receivable

Accounts receivable XIX.1 2547209298.18 2089263590.36

Financing receivables

Prepayments 3124793.19 3124793.19

Other receivables XIX.2 62239070610.58 35309208101.73

Including: Interest receivables 66600316.50 137951583.62

Dividends receivables 3615317738.91 955746044.23

Inventories 58324395.52 9092410.78

Including: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year 321325000.00 1105291666.67

Other current assets 9264931.90 174671080.16

Total current assets 81610411598.91 47411741408.26

Non-current assets:

Debt investments 7029527912.19 7243616935.47

Other debt investments

Long-term receivables

Long-term equity investments XIX.3 62575577386.31 62193654756.17

Investments in other equity instruments 1602852951.00 1602852951.00

Other non-current financial assets

Investment properties

Fixed assets 119811886.16 131874644.27

Construction in progress 3620405.74 490452.83

Biological assets for production

Oil and gas assets

Right-of-use assets

Intangible assets 32137672.64 35196337.86

Including: Data resources

Development cost

Including: Data resources

Goodwill

Long-term prepaid expenses 2652341.22 3502636.81

Haier Smart Home Co. Ltd. Interim Report 2025 87Section VIII Financial Report

Items Notes 30 June 2025 31 December 2024

Deferred income tax assets

Other non-current assets 2557619709.23 1738121667.23

Total non-current assets 73923800264.49 72949310381.64

Total assets 155534211863.40 120361051789.90

Current liabilities:

Short-term borrowings 3700000000.00 2000000000.00

Financial liabilities held for trading

Derivative financial liabilities

Bills payable

Accounts payables 2015053240.92 1526611034.49

Receipts in advance

Contract liabilities 12597148.63 12597148.63

Payables for staff’s remuneration 7979314.64 7798419.39

Taxes payable 565822.40 884572.31

Other payables 99347694829.86 63004946189.17

Including: Interest payable 1234444.45

Dividends payable 8991794045.13

Liabilities held for sale

Non-current liabilities due within one year 1716211250.00 1495350000.00

Other current liabilities 11440662.32 18881166.43

Total current liabilities 106811542268.77 68067068530.42

Non-current liabilities:

Long-term borrowings 2271500000.00 3292370000.00

Bonds payable 3500000000.00

Including: Preference shares

Perpetual bonds

Lease liabilities

Long-term payable

Long-term payables for staff’s

remuneration

Estimated liabilities

Deferred income 16814070.50 14265249.50

Deferred income tax liabilities 394292088.98 394292088.98

Other non-current liabilities

Total non-current liabilities 6182606159.48 3700927338.48

Total liabilities 112994148428.25 71767995868.90

Owners’ equity (or Shareholders’

equity):

Paid-in capital (or share capital) 9382913334.00 9382913334.00

Other equity instruments

Including: Preference shares

Perpetual bonds

Capital reserve 25843919017.13 25680561451.57

Less: treasury stock 1505380117.76 1467523464.56

88 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Items Notes 30 June 2025 31 December 2024

Other comprehensive income 675788147.41 618368749.67

Special reserve

Surplus reserve 4691456667.00 4691456667.00

Undistributed profits 3451366387.37 9687279183.32

Total owners’ equity (or shareholders’

equity) 42540063435.15 48593055921.00

Total liabilities and owners’ equity

(or shareholders’ equity) 155534211863.40 120361051789.90

Person in charge of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying Ke

Haier Smart Home Co. Ltd. Interim Report 2025 89Section VIII Financial Report

Consolidated Profit Statement

January-June 2025

Unit and Currency: RMB

Items Notes 2025 Interim 2024 Interim

I. Total operating revenue 156494034448.85 141982482605.75

Including: Operating revenue VII.48 156494034448.85 141982482605.75

Interest income

Insurance premiums earned

Fee and commission income

II. Total cost of operations 142264928563.02 129691089346.09

Including: Operating cost VII.48 114437933108.76 103945159570.63

Interest expenses

Fee and commission expenses

Insurance withdrawal payment

Net payment from indemnity

Net provisions withdrew for insurance

contract liability

Insurance policy dividend paid

Reinsurance cost

Taxes and surcharges VII.49 679554803.08 610302317.06

Selling expenses VII.50 15816814510.07 14517816334.58

Administrative expenses VII.51 5891046898.48 5382166653.05

R&D expenses VII.52 5790436804.10 5182598681.20

Financial expenses VII.53 –350857561.47 53045789.57

Including: Interest expenses 1446615689.51 1252571601.13

Interest income 908582647.56 947056127.00

Add: Other income VII.54 775214508.42 585424373.34

Investment income (losses are

represented by ‘-’) VII.55 917258503.36 931730990.63

Including: investment income of

associates and joint ventures 850409233.36 913969362.35

Income generated from the derecognition

of financial assets measured at

amortized cost (losses are represented

by ‘-’)

Exchange gain (losses are represented by

‘-’)

Gains on net exposure hedges (losses are

represented by ‘-’)

Income from change in fair value (losses

are represented by ‘-’) VII.56 34753540.63 –29565597.82

Loss on credit impairment (losses are

represented by ‘-’) VII.57 –71912087.85 –69794942.03

90 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Items Notes 2025 Interim 2024 Interim

Loss on assets impairment (losses are

represented by ‘-’) VII.58 –744113044.82 –706437535.88

Gain from disposal of assets (losses are

represented by ‘-’) VII.59 –7368037.54 –1569698.49

III. Operating profit (losses are represented

by ‘-’) 15132939268.03 13001180849.41

Add: non-operating income VII.60 121855656.14 76490746.47

Less: non-operating expenses VII.61 257738776.06 96898224.12

IV. Total profit (total losses are represented

by ‘-’) 14997056148.11 12980773371.76

Less: income tax expense VII.62 2511940348.67 2207175817.26

V. Net profit (net losses are represented by

‘-’)12485115799.4410773597554.50

(1) Classification by continuous operation

1. Net profit from continuous operation

(net losses are represented by ‘-’) 12485115799.44 10773597554.50

2. N et profit from discontinued

operation (net losses are

represented by ‘-’)

(2) Classification by ownership of the

equity

1. N et profit attributable to shareholders

of the Parent Company (net losses

are represented by ‘-’) 12032995820.27 10409642540.63

2. Profit or loss attributable to minority

shareholders (net losses are

represented by ‘-’) 452119979.17 363955013.87

VI. Other comprehensive income net of tax VII.63 1452271379.89 –334806467.13

(I) O ther comprehensive income

attributable to owners of the Parent

Company net of tax 1455197741.10 –335021596.15

1. Other comprehensive income that

cannot be reclassified into the

profit or loss –158056399.69 –128316608.25

(1) Changes arising from re-

measurement of defined benefit

plans 135857881.73 –2491664.07

(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 –293914281.42 –125824944.18

Haier Smart Home Co. Ltd. Interim Report 2025 91Section VIII Financial Report

Items Notes 2025 Interim 2024 Interim

(4) C hanges in fair value of credit

risks of the enterprise

2. Other comprehensive income to be

reclassified into the profit or loss 1613254140.79 –206704987.90

(1) Other comprehensive income

that can be transferred into

profit or loss under equity

method 28468182.86 23160537.38

(2) Changes in fair value of other

debt Investments

(3) Reclassified financial assets that

are credited to other

comprehensive income

(4) C redit impairment provision for

other debt investments

(5) Reserve for cash flow hedging –130457670.38 –30039858.31

(6) Exchange differences on

translation of financial

statements denominated in

foreign currencies 1715243628.31 –199825666.97

(7) Others

(II) Other comprehensive income

attributable to minority shareholders

net of tax –2926361.21 215129.02

VII. Total comprehensive income 13937387179.33 10438791087.37

(I) T otal comprehensive income

attributable to the owners of Parent

Company 13488193561.37 10074620944.48

(II) Total comprehensive income

attributable to the minority

shareholders 449193617.96 364170142.89

VIII. Earnings per share:

(I) Basic earnings per share (RMB/share) XXI.1 1.30 1.13

(II) Diluted earnings per share

(RMB/share) XXI.1 1.29 1.12

For business combination under common control occurring in the current period the net profit of the

acquiree before the combination was RMB3593306.97 and the net profit of the acquiree for the

previous period was RMB-10575848.59.Person in charge of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying Ke

92 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Profit Statement of the Parent Company

January-June 2025

Unit and Currency: RMB

Items Notes 2025 Interim 2024 Interim

I. Operating income 453790319.36 251601614.76

Less: operating cost XIX.4 421626827.34 223444233.50

Taxes and surcharges 4975640.95 2634526.12

Selling expenses 6114834.66 21861602.21

Administration expenses 230730912.40 379191355.33

R&D expenses 3468437.28 7802548.59

Financial expenses –82235139.76 –179030129.87

Including: interest expenses 94567133.67 52482308.39

Interest income 173636781.09 233381967.37

Add: other income 3036529.45 4280121.77

Investment income (losses are

represented by ‘-’) XIX.5 2871560525.29 508175341.20

Including: investment income of

associates and joint ventures 182219429.45 180476867.12

Derecognition income on

financial assets

measured at amortized

cost (losses are

represented by ‘-’)

Gains on net exposure hedges

(losses are represented by ‘-’)

Income from change in fair value

(losses are represented by ‘-’) 13176519.93

Loss on credit impairment (losses

are represented by ‘-’) –700000.00

Loss on assets impairment (losses

are represented by ‘-’)

Gain from disposal of assets (losses

are represented by ‘-’) –241461.19

II. Operating profit (losses are represented by

‘-’)2755940919.97308152941.85

Add: non-operating income 200.00

Less: non-operating expenses 59870.79 134512.56

III. Total profit (total losses are represented

by ‘-’) 2755881249.18 308018429.29

Less: income tax expenses

IV. N et profit (net losses are represented by

‘-’)2755881249.18308018429.29

Haier Smart Home Co. Ltd. Interim Report 2025 93Section VIII Financial Report

Items Notes 2025 Interim 2024 Interim

(I) Net profit from continuous operations

(net losses are represented by ‘-’) 2755881249.18 308018429.29

(II) N et profit from discontinued operations

(net losses are represented by ‘-’)

V. Other comprehensive income net of tax 57419397.74 38468441.16

(I) Other comprehensive income that

cannot be reclassified into the profit or

loss

1. Changes arising from re-

measurement of defined benefit

plans

2. O ther 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 57419397.74 38468441.16

1. Other comprehensive income that

can be transferred into profit or loss

under equity method 57419397.74 38468441.16

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. E xchange differences on translation

of financial statements denominated

in foreign currencies

7. Others

VI. Total comprehensive income 2813300646.92 346486870.45

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

94 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Consolidated Cash Flow Statement

January-June 2025

Unit and Currency: RMB

Items Notes 2025 Interim 2024 Interim

I. Cash flow from operating activities:

Cash received from the sale of goods

and rendering services 166973160557.73 144804449491.40

Net increase in distributor 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 cash borrowed

Net increase in cash received from

repurchase operation

Net cash received from customer

deposits for trading in securities

Refunds of taxes 1265635650.92 1067732811.42

Cash received from other related

operating activities VII.64 1512184469.60 1435678595.14

Sub-total of cash inflows from operating

activities 169750980678.25 147307860897.96

Cash paid on purchase of goods and

services 118785453051.35 103618664285.75

Net increase in loans and advances of

distributors

Net increase in deposits in the PBOC and

inter bank

Cash paid for compensation payments

under original insurance contact

Net increase in cash lent

Cash paid for interest bank charges and

commissions

Cash paid for insurance policy dividend

Haier Smart Home Co. Ltd. Interim Report 2025 95Section VIII Financial Report

Items Notes 2025 Interim 2024 Interim

Cash paid to and on behalf of

employees 18846597606.70 16435257033.85

Cash paid for all types of taxes 9435218293.50 7917809512.74

Cash paid to other operation related

activities VII.64 11544665945.36 10912069462.19

Sub-total of cash outflows from operating

activities 158611934896.91 138883800294.53

Net cash flow from operating activities VII.65 11139045781.34 8424060603.43

II. Cash flow from investing activities:

Cash received from recovery of

investments 20072795541.03 9707697079.51

Cash received from return on

investments 449498890.02 480559603.84

Net cash received from the disposal of

fixed assets intangible assets and

other long-term assets 17203877.85 9279434.48

Net cash received from disposal of

subsidiaries and other operating

entities

Other cash received from investment

activities VII.64 131428806.14

Sub-total of cash inflows from investing

activities 20670927115.04 10197536117.83

Cash paid on purchase of fixed assets

intangible assets and other long-term

assets 3764462806.18 4204198714.75

Cash paid for investments 26928024657.46 15184939467.03

Net increase in secured loans

Net cash paid on acquisition of

subsidiaries and other operating

entities

Other cash paid on investment activities

Sub-total of cash outflows from investing

activities 30692487463.64 19389138181.78

Net cash flow from investing activities –10021560348.60 –9191602063.95

III. Cash flow from financing activities:

Cash received from capital contributions 47830000.00 268875731.22

Including: cash received from capital

contributions by minority shareholders

of subsidiaries

Cash received from borrowings 13818811428.03 6237610857.45

Cash received from issuance of bonds 3500000000.00

Other cash received from financing

activities VII.64 111646384.65 115332534.00

96 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Items Notes 2025 Interim 2024 Interim

Sub-total of cash inflows from financing

activities 17478287812.68 6621819122.67

Cash paid on repayment of loans 14319613817.74 4633695648.37

Cash paid on distribution of dividends

profits or repayment of interest

expenses 1318338742.42 1191435719.30

Including: dividend and profit paid to

minority shareholders by subsidiaries

Other cash paid to financing activities VII.64 3905562240.98 1299349689.85

Sub-total of cash outflows from

financing activities 19543514801.14 7124481057.52

Net cash flow from financing activities –2065226988.46 –502661934.85

IV. Effect of fluctuations in exchange

rates on cash and cash equivalents 467537948.61 –41638689.56

V. Net increase in cash and cash

equivalents –480203607.11 –1311842084.93

Add: b alance of cash and cash

equivalents at the beginning of the

period VII.65 54994595280.18 56715672668.25

VI. B alance of cash and cash equivalents

at the end of the period VII.65 54514391673.07 55403830583.32

Person in charge of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying Ke

Haier Smart Home Co. Ltd. Interim Report 2025 97Section VIII Financial Report

Cash Flow Statement of the Parent Company

January-June 2025

Unit and Currency: RMB

Items Notes 2025 Interim 2024 Interim

I. Cash flow from operating activities:

Cash received from the sale of goods and

rendering of services 142867762.31 219993729.62

Refunds of taxes 3291819.49 38214.96

Other cash received from operating

activities 136466207.24 164614625.43

Sub-total of cash inflows from operating

activities 282625789.04 384646570.01

Cash paid on purchase of goods and

services 133785234.50

Cash paid to and on behalf of employees 19501379.07 27649816.71

Cash paid for all types of taxes 12863251.19 11299372.62

Other cash paid to operation activities 124465778.03 104532697.84

Sub-total of cash outflows from

operating activities 290615642.79 143481887.17

Net cash flow from operating

activities –7989853.75 241164682.84

II. Cash flow from investing activities:

Cash received from recovery of

investments 13152000000.00 7222000000.00

Cash received from return on

investments 80944929.78 88433946.88

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 1726172255.14 389573294.54

Sub-total of cash inflows from investing

activities 14959117184.92 7700007241.42

Cash paid on purchase of fixed assets

intangible assets and other long-term

assets 4390059.31 2692652.09

Cash paid for investments 18278117869.26 12422000000.00

Net cash paid on acquisition of

subsidiaries and other operating

entities

98 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Items Notes 2025 Interim 2024 Interim

Other cash paid on investment activities 1434000000.00

Sub-total of cash outflows from

investing activities 19716507928.57 12424692652.09

Net cash flow from investing

activities –4757390743.65 –4724685410.67

III. Cash flow from financing activities:

Cash received from capital injections

Cash received from borrowings 2515000000.00 940000000.00

Cash received from issuance of bonds 3500000000.00

Other cash received from financing

activities 2941508886.50 7717935238.95

Sub-total of cash inflows from financing

activities 8956508886.50 8657935238.95

Cash paid on repayment of borrowings 1626480000.00 14000000.00

Cash paid on distribution of dividends

profits or repayment of interest

expenses 87281645.03 50962018.77

Other cash paid on financing activities 857354695.20 466600210.43

Sub-total of cash outflows from

financing activities 2571116340.23 531562229.20

Net cash flow from financing

activities 6385392546.27 8126373009.75

IV. E ffect of fluctuations in exchange

rates on cash and cash equivalents –3309255.82 –120980.13

V. Net increase in cash and cash

equivalents 1616702693.05 3642731301.79

Add: balance of cash and cash

equivalents at the beginning of the

period 8721089765.37 7579640524.79

VI. Balance of cash and cash equivalents

at the end of the period 10337792458.42 11222371826.58

Person in charge of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying Ke

Haier Smart Home Co. Ltd. Interim Report 2025 99Section VIII Financial Report

100 Haier Smart Home Co. Ltd. Interim Report 2025

Consolidated Statement of Changes in Owner’s Equity

January-June 2025

Unit and Currency: RMB

2025 Interim

Equity attributable to owners of the Parent Company

Other equity instruments

Other Minority

Paid-in capital Preference Perpetual Capital Less: treasury comprehensive Special Surplus General risk Undistributed shareholders’ Total owners’

Items (or share capital) shares bonds Others reserve stock income reserve reserve provision profits Others Sub-total interests equity

I. Closing balance for the previous period 9382913334.00 20115358921.93 3510728776.44 793828357.47 5296602892.45 — 79288144269.76 111366118999.17 7022846418.42 118388965417.59

Add: changes in accounting policies

Error correction for prior period

Business combination under common

control 194859300.11 31674503.00 186221964.94 412755768.05 412755768.05

Others

II. Opening balance for the current year 9382913334.00 20310218222.04 3510728776.44 825502860.47 5296602892.45 79474366234.70 111778874767.22 7022846418.42 118801721185.64

III. Increase/decrease for the current period

(decrease is represented by ‘-’) –465820989.79 856403284.46 1455197741.10 2982442784.48 3115416251.33 662121048.44 3777537299.77

(I) Total comprehensive income 1455197741.10 12032995820.27 13488193561.37 449193617.96 13937387179.33

(II) Capital injection and reduction by

owners –465820989.79 856403284.46 –1322224274.25 220334331.09 –1101889943.16

1. Ordinary shares invested by owners 220334331.09 220334331.09

2. Capital contribution by holders of

other equity instruments

3. Share-based payment included in

owners’ equity 221073939.39 221073939.39 221073939.39

4. Others –686894929.18 856403284.46 –1543298213.64 –1543298213.64

(III) Profit distribution –8991794045.13 –8991794045.13 –7406900.61 –8999200945.74

1. Withdrawal of surplus reserves

2. Withdrawal of general risk provision

3. Distribution to owners (or

shareholders) –8991794045.13 –8991794045.13 –7406900.61 –8999200945.74

4. Others

(IV) Internal transfer of owner’s equity

1. Transfer of capital reserves into

capital (or share capital)

2. Transfer of surplus reserves into

capital (or share capital)

3. S urplus reserves used for

remedying loss —

4. Changes in defined benefit plans

carried forward to retained

earnings

5. Other comprehensive income

carried forward to retained

earnings

6. Others

(V) Special reserve

1. Withdrawal for the period

2. Utilization for the period

(VI) Others –58758990.66 –58758990.66 –58758990.66

IV. Closing balance for the period 9382913334.00 19844397232.25 4367132060.90 2280700601.57 5296602892.45 82456809019.18 114894291018.55 7684967466.86 122579258485.41Section VIII Financial Report

Haier Smart Home Co. Ltd. Interim Report 2025 101

2024 Interim

Equity attributable to owners of the Parent Company

Other equity instruments

Other Minority

Paid-in capital Preference Perpetual Capital Less: treasury comprehensive Special Surplus General risk Undistributed shareholders’ Total owners’

Items (or share capital) shares bonds Others reserve stock income reserve reserve provision profits Others Sub-total interests equity

I. Closing balance for the previous period 9438114893.00 21514544884.54 5034065107.42 1969365062.65 4842338543.80 68535686494.60 101265984771.17 6264355202.17 107530339973.34

Add: changes in accounting policies

Error correction for prior period

Business combination under common

control 194859300.11 15856718.90 306295814.70 517011833.71 517011833.71

Others

II. Opening balance for the current year 9438114893.00 21709404184.65 5034065107.42 1985221781.55 4842338543.80 68841982309.30 101782996604.88 6264355202.17 108047351807.05

III. I ncrease/decrease for the current period

(decrease is represented by ‘-’) 144594822.81 466600210.43 –334178995.99 2755755351.36 2099570967.75 500251942.91 2599822910.66

(I) Total comprehensive income –335021596.15 10409642540.63 10074620944.48 364170142.89 10438791087.37

(II) C apital injection and reduction by

owners 145437422.97 466600210.43 –321162787.46 149901492.31 –171261295.15

1. Ordinary shares invested by owners 149901492.31 149901492.31

2. C apital contribution by holders of

other equity instruments

3. Share-based payment included in

owners’ equity 201405574.94 201405574.94 201405574.94

4. Others –55968151.97 466600210.43 –522568362.40 –522568362.40

(III) Profit distribution –7513967094.69 –7513967094.69 –13819692.29 –7527786786.98

1. Withdrawal of surplus reserves

2. W ithdrawal of general risk

provision

3. Distribution to owners (or

shareholders) –7513967094.69 –7513967094.69 –13819692.29 –7527786786.98

4. Others

(IV) Internal transfer of owner’s equity

1. Transfer of capital reserves into

capital (or share capital)

2. Transfer of surplus reserves into

capital (or share capital)

3. Surplus reserves used for

remedying loss

4. Changes in defined benefit plans

carried forward to retained

earnings

5. Other comprehensive income

carried forward to retained

earnings

6. Others

(V) Special reserve

1. Withdrawal for the period

2. Utilization for the period

(VI) Others –842600.16 842600.16 –139920094.58 –139920094.58 –139920094.58

IV. Closing balance for the period 9438114893.00 21853999007.46 5500665317.85 1651042785.56 4842338543.80 — 71597737660.66 103882567572.63 6764607145.08 110647174717.71

Legal representative of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying KeSection VIII Financial Report

102 Haier Smart Home Co. Ltd. Interim Report 2025

Statement of Changes in Owners’ Equity of the Parent Company

January-June 2025

Unit and Currency: RMB

2025 Interim

Other equity instruments

Other

Paid-in capital (or Preference Perpetual Capital Less: treasury comprehensive Special Undistributed Total owners’

Items share capital) shares bonds Others reserve stock income reserve Surplus reserve profits equity

I. Closing balance for the previous period 9382913334.00 25680561451.57 1467523464.56 618368749.67 4691456667.00 9687279183.32 48593055921.00

Add: changes in accounting policies

Error correction for prior period

Others

II. Opening balance for the current year 9382913334.00 25680561451.57 1467523464.56 618368749.67 4691456667.00 9687279183.32 48593055921.00

III. Increase/decrease for the current period (decrease is

represented by ‘-’) 163357565.56 37856653.20 57419397.74 — –6235912795.95 –6052992485.85

(I) Total comprehensive income 57419397.74 2755881249.18 2813300646.92

(II) Capital injection and reduction by owners 163357565.56 37856653.20 125500912.36

1. Ordinary shares invested by owners

2. C apital contribution by holders of other equity

instruments

3. Share-based payment included in owners’ equity 187782906.31 187782906.31

4. Others –24425340.75 37856653.20 –62281993.95

(III) Profit distribution –8991794045.13 –8991794045.13

1. Withdrawal of surplus reserves

2. Distribution to owners (or shareholders) –8991794045.13 –8991794045.13

3. Others

(IV) Internal transfer of owner’s equity

1. Transfer of capital reserves into capital (or share

capital)

2. Transfer of surplus reserves into capital (or share

capital)

3. Surplus reserves used for remedying loss

4. Changes in defined benefit plans carried forward

to retained earnings

5. Other comprehensive income carried forward to

retained earnings

6. Others

(V) Special reserve

1. Withdrawal for the period

2. Utilization for the period

(VI) Others

IV. Closing balance for the period 9382913334.00 25843919017.13 1505380117.76 675788147.41 — 4691456667.00 3451366387.37 42540063435.15Section VIII Financial Report

Haier Smart Home Co. Ltd. Interim Report 2025 103

2024 Interim

Other equity instruments

Other

Paid-in capital (or Preference Perpetual Capital Less: treasury comprehensive Special Undistributed Total owners’

Items share capital) shares bonds Others reserve stock income reserve Surplus reserve profits equity

I. Closing balance for the previous period 9438114893.00 27263651777.44 3175293942.36 630674691.95 — 4237192318.35 7484026291.62 45878366030.00

Add: changes in accounting policies

Error correction for prior period

Others

II. Opening balance for the current year 9438114893.00 27263651777.44 3175293942.36 630674691.95 4237192318.35 7484026291.62 45878366030.00

III. Increase/decrease for the current period (decrease is

represented by ‘-’) 182744999.21 466600210.43 38468441.16 -7205948665.40 -7451335435.46

(I) Total comprehensive income 38468441.16 308018429.29 346486870.45

(II) Capital injection and reduction by owners 182744999.21 466600210.43 -283855211.22

1. Ordinary shares invested by owners

2. Capital contribution by holders of other equity

instruments

3. Share-based payment included in owners’ equity 182744999.21 182744999.21

4. Others 466600210.43 -466600210.43

(III) Profit distribution -7513967094.69 -7513967094.69

1. Withdrawal of surplus reserves

2. Distribution to owners (or shareholders) -7513967094.69 -7513967094.69

3. Others

(IV) Internal transfer of owner’s equity

1. Transfer of capital reserves into capital (or share

capital)

2. Transfer of surplus reserves into capital (or share

capital)

3. Surplus reserves used for remedying loss

4. Changes in defined benefit plans carried forward

to retained earnings

5. Other comprehensive income carried forward to

retained earnings

6. Others

(V) Special reserve

1. Withdrawal for the period

2. Utilization for the period

(VI) Others

IV. Closing balance for the period 9438114893.00 — — — 27446396776.65 3641894152.79 669143133.11 — 4237192318.35 278077626.22 38427030594.54

Legal representative of the Company: Li Huagang

Person in charge of accounting function: Sun Jiacheng

Person in charge of accounting department: Ying KeSection VIII Financial Report

III. GENERAL INFORMATION OF THE COMPANY

1. Overview of the Company

√ Applicable □Not Applicable

The predecessor of Haier Smart Home Co. Ltd (hereinafter referred to as the Company) was

Qingdao Refrigerator Factory which was established in 1984. As permitted to offering by

People’s Bank of China Qingdao Branch on 16 December 1989 with the document of Qing Ti

Gai [1989] No. 3 issued on 24 March 1989 based on the reconstruction of the original Qingdao

Refrigerator Factory a limited company was set up by directional fund raising of RMB150 million.In March and September 1993 as approved by the document of Qing Gu Ling Zi [1993] No. 2

and No. 9 issued by the pilot leading team of Qingdao joint stock company the Company was

converted from a directional offering company to a public subscription company and issued

additional 50 million shares to the public and listed with trading on Shanghai Stock Exchange in

November 1993. In October 2018 D-shares in issue of the Company were listed on the China

Europe International Exchange AG. In December 2020 H-shares in issue of the Company were

listed on the Stock Exchange of Hong Kong Limited by way of introduction.The Company’s registered office is located at the Haier Science and Technology Innovation

Ecological Park of Laoshan District Qingdao Shandong Province and the headquarters is

located at the Haier Science and Technology Innovation Ecological Park of Laoshan District

Qingdao Shandong Province.The Company is mainly engaged in research and development manufacturing and sales of home

appliances including refrigerators/freezers kitchen appliances air-conditioners laundry appliances

and water appliances and other smart home business as well as providing smart home

packaged solutions.The ultimate controlling parent company of the Company is Haier Group Corporation.These financial statements have been approved for publication by the Board of the Company on

28 August 2025.

2. Scope of consolidated statements

For details of changes in the scope of consolidated financial statements for the current period

please refer to “IX. Changes in Consolidation Scope” and “X. Interest in Other Entities” of this

note.

104 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

IV. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

1. Basis of preparation

The financial statements of the Company were prepared on the going concern basis according to

the transactions and matters actually occurred in accordance with the Accounting Standards for

Enterprises — Basic Standards published by the Ministry of Finance specific accounting

standards and guidance on application of accounting standards for enterprises interpretations to

accounting standards for enterprises and other relevant requirements (hereinafter collectively

referred to as the “Accounting Standards for Enterprises”) which issued subsequently and in

combination with the disclosure provisions of the Rules for the Information Disclosure and

Compilation of Companies Publicly Issuing Securities No. 15: General Provisions for Financial

Report (Revised in 2023) of CSRC as well as the following significant accounting policies and

accounting estimation.

2. Going Concern

√ Applicable □Not Applicable

The Company has ability to continue its operation for at least 12 months since the end of the

reporting period and there are no significant events affecting its ability to continue as a going

concern.V. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

√ Applicable □Not Applicable

According to the characteristics of its production and operation the Company formulated a series of

specific accounting policies and accounting estimates including the provisions for impairment for

accounts receivable (Note V.11); the measurement of inventories (Note V.12); the depreciation and

amortization of the investment properties (Note V.15); the depreciation of fixed assets (Note V.16) the

amortization of intangible assets (Note V.19) the criterion for determining of long-term assets

impairment (Note V.20); and the date of revenue recognition (Note V.26) etc.

1. Statement of compliance with Accounting Standards for Enterprises

The financial statements prepared by the Company meet the requirements of the Accounting

Standards for Enterprises which accurately and completely reflected information relating to the

financial position results of operations changes in shareholders’ equity and cash flows of the

Company.

2. Accounting period

The accounting year of the Company is from 1 January each year to 31 December of the same

year in solar calendar.

3. Operating period

√ Applicable □Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 105Section VIII Financial Report

The Company takes the period from the acquisition of assets for processing to the ultimate

realization of cash or cash equivalents as a normal operating cycle. The Company takes 12

months as an operating period which is also the classification basis for the liquidity of its assets

and liabilities.

4. Recording currency

Renminbi is the recording currency of the Company

5. Materiality criteria determination method and selection basis

√ Applicable □Not Applicable

Case Materiality criteria

Material receivables for The amount of provision on an individual basis accounts for more

which bad debt provision than 10% of the total bad debt provisions for various types of

is individually assessed receivables and is greater than RMB100 million

Material receivables and The amount of recovery or reversal on an individual basis accounts

bad debt provisions for more than 10% of the total amount of various types of

which are recovered or receivables and is greater than RMB100 million

reversed

Actual write-off of material The amount of write-off on an individual basis accounts for more

accounts receivable than 10% of the total bad debt provisions of various types of

receivables and is greater than RMB100 million

Material prepayments aged Prepayment aged more than 1 year on an individual basis

more than one year accounts for more than 10% of the total prepayments and is

greater than RMB100 million

Material projects under The ending balance of a project on an individual basis is greater

construction than RMB100 million

Material capitalized R&D The ending balance of a project on an individual basis accounts

projects for more than 10% of the ending balance of development

expenditure and is greater than RMB100 million

Material accounts payable Accounts payable/other payables with aged more than 1 year on

and other payables aged an individual basis account for more than 10% of the total

more than one year accounts payable/other payables and are greater than RMB100

million

Material contract liabilities Contract liabilities aged more than 1 year on an individual basis

aged more than one year account for more than 10% of the total contract liabilities and

are greater than RMB100 million

Material non-wholly owned The net assets of the subsidiaries account for more than 5% of

subsidiaries the Company’s net assets or the net profits and losses of the

subsidiaries account for more than 10% of the Company’s

consolidated net profit.Material joint ventures or The book value of long-term equity investment in an individual

associates invested unit accounts for more than 5% of the Company’s net

assets or the investment profits and losses under the long-term

equity investment equity method account for more than 10% of

the Company’s consolidated net profit.

106 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

6. Accounting methods of business combinations under common control and not

under common control

√ Applicable □Not Applicable

A business combination is a transaction or event that brings together two or more separate

entities into one reporting entity. Business combinations are classified into business combinations

under common control and business combinations not under common control.

(1) Business combinations under common control

A business combination under common control is a business combination in which all of

the combining entities are ultimately controlled by the same party or parties both before

and after the combination and that control is not transitory. For business combination

under common control the party that obtains the control over the other parties on the

combination date is the acquirer and other parties involving in the business combination

are the transferors. The combination date is the date on which the acquiring party

effectively obtains the control over the party being acquired.For business combination under common control the transferor’s assets and liabilities

obtained by the Company (as the acquirer) in a business combination are accounted for at

the carrying amount of the transferor in the ultimate controller’s consolidated financial

statements as at the date of combination except for adjustments due to differences in

accounting policies. The difference between the carrying amount of the combination

consideration paid by the Company (or the aggregate nominal value of shares issued) and

the carrying amount of net assets obtained in a business combination shall be adjusted to

capital reserve in case the capital reserve is insufficient for the elimination the retained

earnings shall be adjusted.Intermediary fees (such as audit legal services and valuation consultancy) and other

relevant management fees incurred in the business combination by the Company (as the

acquirer) are credited in profit or loss in the period when they occurred. Trading expenses

in direct relation to the issuance of equity instrument as the consideration for the

combination is written down to the capital reserve (share premium) where the capital

reserve (share premium) is insufficient and to surplus reserves and undistributed profits in

order. Trading expenses in direct relation to the issuance of debt instrument as the

consideration for the combination is included in the initial recognition amount of the debt

instrument.

(2) Business combinations involving entities not under common control

A business combination not under common control is a business combination in which all

of the combining entities are not ultimately controlled by the same party or parties both

before and after the combination. For business combination not under common control the

party that obtains the control of the other parties at the combination date is the acquirer;

other parties involving in the business combination are the transferors. The combination

date is the date on which the acquirer effectively obtains control of the transferors.Haier Smart Home Co. Ltd. Interim Report 2025 107Section VIII Financial Report

In business combination involving entities not under common control the cost of

combination of the Company (as the acquirer) shall be the sum of the assets paid

obligations incurred or assumed and the fair value of the equity securities issued by the

Company for obtaining control of the transferor at the date of acquisition. Intermediary fees

(such as audit legal services and valuation consultancy) and other relevant management

fees incurred by the Company for the purpose of business combination are credited in

profit or loss in the period when they occurred. Transaction fees for the equity instruments

or debt instruments issued by the Company as combination consideration is included in the

initial recognition amount of such equity instruments or debt instruments. Contingent

consideration involved shall be recorded as the combination cost based on its fair value on

the acquisition date. Should any new or further evidence arise within 12 months after the

acquisition date and makes it necessary to adjust the contingent consideration on the

acquisition date the goodwill arising from the business combination shall be amended

accordingly.The cost of combination and identifiable net assets obtained by the Company (as the

acquirer) in a business combination involving entities not under common control are

measured at fair value on the acquisition date. Where the cost of the combination exceeds

the acquirer’s interest in the fair value of the transferor’s identifiable net assets the

difference is recognized as goodwill; where the cost of combination is lower than the

acquirer’s interest in the fair value of the transferor’s identifiable net assets the difference

is initially recognized in profit or loss for the current year after the Company conducted a

review of computation for the identifiable assets liabilities or fair value of contingent

liabilities and combination cost and where the combination cost is still lower than the fair

value of the identifiable net assets of the transferor obtained during the course of

combination then the difference is recorded in the profit and loss.

7. Judgement Criteria for Control and Preparation of Consolidated Financial

Statements

√ Applicable □Not Applicable

Judgement Criteria for Control:

The scope of consolidation of consolidated financial statements is on the basis of control. Control

means that the Company has the power over the investee enjoys variable returns by

participating in relevant activities of the investee and has the ability to use its power over the

investee to influence the amount of its return. Control refers to the Company’s right over the

investee to enjoy variable returns through involvement in the investee and have the ability to exert

the right to affect those returns The Company will reassess when changes in relevant facts and

circumstances result in changes in the relevant elements involved in the definition of control.

108 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Preparation method of consolidated statements:

(1) Scope of consolidated financial statements

The Company incorporated all subsidiaries under its control (including the separate entities

controlled by the Company) into the scope of consolidation financial statements including

the enterprises under the Company’s control divisible part in the investees and structured

entities. Control refers to the Company having power over the investee and is entitled to

variable returns from its involvement with the investee and has the ability to use its power

over the investee to affect the amount of those return.

(2) To unify the accounting policies balance sheets date and accounting periods of the

Company and subsidiaries

When preparing consolidated financial statements adjustments are made if subsidiaries’

accounting policies or accounting periods are different from that of the Company in

accordance with the Company’s accounting policies and accounting periods.

(3) Offset matters in the consolidated financial statements

The consolidated financial statements shall be prepared by the Company on the basis of

the financial statements of the Company and subsidiaries and based on other relevant

information. In preparing the consolidated financial statements all significant balances

transactions and unrealized profits between the Company and subsidiaries and among

subsidiaries are eliminated. In preparing the consolidated financial statements the Company

treats the entire enterprise group as one accounting entity and reflects the overall financial

position operating results and cash flows of the Group in accordance with the

requirements for recognition measurement and presentation of relevant accounting

standards for enterprises and consistent accounting policies. The owner’s equity of thesubsidiaries not attributable to the Company shall be presented separately as “minorityequity” under the owner’s equity item in the consolidated balance sheet. The minority equity

attributable to net profit or loss of subsidiaries in the current period shall be presented as

“minority interest” under the “net profit” item in the consolidated profit statement. Where the

amount of loss of a subsidiary attributable to the minority shareholders exceeds their share

of the opening balance of owner’s equity of the subsidiary the excess shall be allocated

against minority equity. The long-term equity investment of the Company held by the

subsidiaries deemed as treasury stock of the corporate group as well as the reduction of

owners’ equity shall be presented as “Less: Treasury stock” under the owner’s equity item

in the consolidated balance sheet.Haier Smart Home Co. Ltd. Interim Report 2025 109Section VIII Financial Report

(4) Accounting treatment of subsidiaries acquired from combination

For subsidiaries acquired from business combination under common control of the

Company the opening amount of the consolidated balance sheet is adjusted as if the

business combination has taken place since the ultimate controller began its control. The

income expenses and profits of subsidiaries or business combinations from the beginning

of the current period to the end of the reporting period are included in the consolidated

profit statement. The cash flows from the beginning of the current period to the end of the

reporting period of a subsidiary or business combination are included in the consolidated

cash flow statement and the related items in the comparative statements are adjusted

Where control can be exercised over the investee under the same control due to additional

investment and other reasons the Company shall deem the parties participating in the

business combination to have made adjustments in their current status when the ultimate

controller began its control. Equity investments held by the Company before control of the

transferor are recognised for profit or loss other comprehensive income and other changes

in net assets between the later of the date on which the original equity interest is acquired

and the date on which the Company and the transferor are under the same control and the

date of combination which are offset against the opening retained earnings or current profit

or loss respectively in the period of the comparative statements.For subsidiaries acquired from business combination under non-common control the

opening amount of the consolidated balance sheet is not adjusted. The income expenses

and profits of the subsidiary or business from the date of purchase to the end of the

reporting period are included in the consolidated profit statement. The cash flows of the

subsidiary or business from the date of purchase to the end of the reporting period are

included in the consolidated statement of cash flows. Where control can be exercised over

an investee that is not under the same control due to additional investment or other

reasons the Company remeasures the equity interest of the investee held before the

purchase date based on the fair value of the equity interest at the purchase date and the

difference between the fair value and its carrying amount is included in the current

investment income. Where the equity interest in the transferor held before the purchase

date relates to other comprehensive income under the equity method and other changes in

owner’s equity other than net profit or loss other comprehensive income and profit

distribution other comprehensive income and other changes in owner’s equity relating

thereto are transferred to investment income of the current period as at the purchase date

except for other comprehensive income arising from the remeasurement of net liabilities or

changes in net assets of defined benefit plans by the investee.

110 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(5) Dispose of equity interests in subsidiaries achieved in stages until losing control

* General treatment

During the reporting period when the Company disposes of a subsidiary or business

the income expenses and profits of that subsidiary or business from the beginning of

the period to the date of disposal are included in the consolidated income statement

of the Company; The cash flows from the beginning of the period to the disposal

date of the subsidiary or operation are included in the consolidated statement of cash

flows of the Company.When control over the investee is lost due to the disposal of part of the equity

investment or other reasons the Company remeasures the remaining equity

investment after disposal at its fair value at the date when control is lost. The

difference between the sum of the consideration obtained on disposal of the equity

interest and the fair value of the remaining equity interest less the sum of the share

of the net assets of the original subsidiary calculated by the Company based on the

original shareholding ratio and goodwill calculated on a continuing basis from the date

of purchase or consolidation is included in investment income in the period in which

control is lost and goodwill is written off. The Company converts other comprehensive

income relating to the equity investment in the original subsidiary etc. to investment

income in the current period when control is lost.* Disposal of subsidiaries step by step

Where the Company disposed of equity investment in a subsidiary step by step

through multiple transactions until control is lost for example the terms conditions

and economic impact of each transaction that disposes of the equity investment in a

subsidiary meet one or more of the following conditions the Company accounts for

multiple transactions as a single transaction:

i. The transactions were entered into simultaneously or with mutual influence in

mind;

ii. The transactions as a whole are capable of achieving a complete commercial

outcome;

iii. The occurrence of one transaction depends on the occurrence of at least one

other transaction;

iv. The transaction is uneconomical by itself but economic when considered in

conjunction with other transactions.Haier Smart Home Co. Ltd. Interim Report 2025 111Section VIII Financial Report

Where each transaction that disposes of an equity investment in a subsidiary until

control is lost is a blanket transaction the Company accounts for each transaction as

a transaction that disposes of the subsidiary and loses control; However the

Company recognises the difference between each disposal price before the loss of

control and the share of net assets of the subsidiary corresponding to the disposal of

the investment as other comprehensive income in the consolidated financial

statements and is transferred to profit or loss in the period in which control is lost

when control is lost.Where each transaction that disposes of an equity investment in a subsidiary until the

loss of control is not a blanket transaction the relevant policy for partial disposal of

an equity investment in a subsidiary without loss of control is accounted for before

the loss of control by the Company; When control is lost accounting is performed in

the same manner as would be done for a disposal subsidiary.

(6) Purchase of minority interests in subsidiaries

The difference between the Company’s costs of newly acquired long-term equity

investment resulting from the purchase of minority interests and the share of net assets

attributable to the subsidiary calculated on an ongoing basis from the date of purchase (or

the date of combination) based on the newly increased shareholding ratio the equity

premium in the capital reserve in the consolidated balance sheet is adjusted and if the

equity premium in the capital reserve is insufficient to offset the retained earnings is

adjusted.

(7) Partial disposal of equity investments in subsidiaries without loss of control

The Company adjusts the equity premium in the capital reserve in the consolidated balance

sheet for the difference between the disposal price obtained from the partial disposal of the

long-term equity investment in the subsidiary without loss of control and the share of the

net assets of the subsidiary that would continue to be calculated from the purchase date or

the combination date corresponding to the disposal of the long-term equity investment or

adjust the retained earnings if the equity premium in the capital reserve is insufficient to

offset.

8. Classification of joint arrangement and accounting methods of joint operations

√ Applicable □Not Applicable

A joint arrangement refers to an arrangement jointly controlled by two or more parties. In

accordance with the Company’s rights and obligations under a joint arrangement the Company

classifies joint arrangements into joint operations and joint ventures.

(1) Joint operations

Joint operations refer to a joint arrangement in which the Company is a party and is

entitled to relevant assets and obligations of this arrangement.

112 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

The Company recognizes the following items in relation to its interest in a joint operation

and accounts the same in accordance with relevant accounting standards for business

enterprises: * recognize the assets held solely by the Company and recognize assets

held jointly by the Company in appropriation to the share of the Company; * recognize the

obligations assumed solely by the Company and recognize obligations assumed jointly by

the Company in appropriation to the share of the Company; * recognize revenue from

disposal of joint operations in appropriation to the share of the Company; * recognize

revenue from disposal of joint operations in appropriation to the share of the Company; *

recognize fees solely occurred by the Company and recognize fees from joint operations in

appropriation to the share of the Company.When the Company as a joint venture invests or sells assets to or purchase assets (the

assets do not constitute a business the same below) from joint operations the Company

shall only recognize the part of profit or lost from this transaction attributable to other

parties of joint operations before these assets are sold to a third party. In case of an

impairment loss incurred on these assets which meets the requirements as set out in

Accounting Standards for Business Enterprises No. 8 — Asset Impairment the Company

shall full recognize the amount of this loss in relation to its investment in or sale of assets

to joint operations or recognize the loss according to the Company’s share of commitment

in relation to the its purchase of assets from joint operations.

(2) Joint ventures

Joint ventures refer to a joint arrangement during which the Company only is entitled to net

assets of this arrangement. Investment in joint venture is accounted for using the equitymethod according to the accounting policies referred to under “14. Long-term equityinvestment” of Note V.

9. Recognition standard for cash and cash equivalents

Cash recognized in the cash flow statements represents the cash on hand and deposits available

for payment of the Company at any time.Cash equivalents recognized in the cash flow statements refer to short-term highly liquid

investments held by the Company that are readily convertible to known amounts of cash and

which are subject to an insignificant risk on change in value.

10. Foreign currency businesses and translation of foreign currency statements

√ Applicable □Not Applicable

(1) Foreign currency transactions

If foreign currency transactions occur they are translated into the amount of functional

currency by applying the exchange rate at the transaction date.Haier Smart Home Co. Ltd. Interim Report 2025 113Section VIII Financial Report

Monetary items denominated in foreign currencies are translated by the Company into

functional currencies at the rates of exchange ruling at the balance sheet date. All foreign

exchange difference are credited in the profit or loss of the current period except those

arising from the funds denominated in foreign currency specially borrowed for the

establishment of the qualifying assets are treated based on the principal of capitalization of

borrowing costs.Non-monetary items in foreign currency measured at historical cost are translated by the

Company using the spot exchange rate prevailing on the date when transaction occurred

and its functional currency shall remain unchanged. Non-monetary items denominated in

foreign currencies that are measured at fair value are translated using the foreign exchange

rate at the date the fair value is determined; the exchange differences between the

translated and original amounts of functional currencies are recognized in the statement of

profit or loss or other comprehensive income as changes in fair value (including changes in

exchange rate).

(2) Translation of foreign currency financial statements

If the functional currencies used as the bookkeeping base currency by the subsidiaries joint

ventures and associates under the control of the Company are different from that of the

Company their financial statements denominated in foreign currencies shall be translated to

perform accounting and prepare the consolidated financial statements.The assets and liabilities of the foreign currency balance sheet of the Company are

translated using the spot exchange rate at the balance sheet date; all items except for

“undistributed profits” of the owner’s equity are translated at the spot exchange rate on the

transaction date. The revenue and expenses in the foreign currency income statement of

the Company are translated using the approximate rate of the spot exchange rate on the

transaction date. Exchange differences on translation of financial statements denominated in

foreign currencies are presented as the “other comprehensive income” in the owner’s

equity of the balance sheet.Foreign currency cash flow and cash flows of a foreign subsidiary of the Company is

translated using the approximate rate of the spot exchange rate on the date of the cash

flows. The impact of exchange rate changes on cash amount is regarded as a

reconciliation item and reflected separately in the cash flow.When disposing overseas operations the translation difference in the foreign currency

financial statements as shown in the owner’s equity of the balance sheet and related to the

overseas operation shall be transferred from owner’s equity to profit or loss in the current

period of disposal. If part of the overseas operations is disposed of the translation

difference in the foreign currency financial statements of the disposal part shall be

calculated based on the proportion of the disposal and transferred to profit or loss in the

current period of disposal.

114 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

11. Financial instruments

√ Applicable □Not Applicable

A financial instrument refers to any contract that gives rise to a financial asset of one entity and

a financial liability or equity instrument of another entity. A financial asset or financial liability and

equity instrument is recognized when the Company becomes a party to the contract of a

financial instrument.

(1) Classification recognition and measurement of financial assets

On initial recognition of a financial asset according to the business model for managing

financial assets and the contractual cash flow characteristics of financial assets the

Company classifies financial assets into: Financial assets measured at amortized cost;

financial assets measured at fair value through other comprehensive income; financial

assets measured at fair value through profit or loss of the current period.Financial assets are measured at fair value upon initial recognition. For financial assets

measured at fair value through profit and loss of the current period related transaction

costs are directly included in profit and loss of the current period; for other types of

financial assets related transaction costs are included in their initial recognized amounts.For the accounts receivable or bills receivable arising from the sale of products or the

provision of labor services that do not contain or consider the significant financing

components etc. the Company shall take the consideration amount entitled to be received

as the initial recognized amount.

1) The debt instruments held by the Company:

* Financial assets measured at amortized cost

The Company’s business model for managing such financial assets is: With the

aim of obtaining contractual cash flow the contractual cash flow characteristics

of such financial assets shall be consistent with the basic lending arrangements

that is the cash flow generated on a specific date is only the payment for the

principal and the interest based on the outstanding principal amount. For such

financial assets the Company recognizes the interest income in accordance

with the effective interest method. Such financial assets are subsequently

measured at amortised cost. The gains or losses arising from amortisation or

impairment are recognised in profit or loss of the current period. Such financial

assets of the Company mainly include cash and cash equivalents bills

receivable accounts receivable other receivables creditor’s right investment

and long-term receivables. The Company lists the creditor’s rights investments

and long-term receivables matured within one year (inclusive) from the balance

sheet date as non-current assets matured within one year; the creditor’s rights

investments matured within one year (inclusive) when being obtained are listed

as other current assets.Haier Smart Home Co. Ltd. Interim Report 2025 115Section VIII Financial Report

* Financial assets measured at fair value through other comprehensive income

The Company’s business mode for managing such financial assets is: With the

aim of obtaining contractual cash flow and selling the financial assets the

contractual cash flow characteristics of such financial assets shall be consistent

with the basic lending arrangements. Such financial assets are measured at fair

value through other comprehensive income but impairment gains and losses

exchange gains and losses and interest income calculated by the effective

interest method are included in profit and loss of the current period. Such

financial assets of the Company mainly include financing receivables and other

creditor’s rights investments. The Company lists other creditor’s rights

investments matured within one year (inclusive) from the balance sheet date as

non-current assets matured within one year; other creditor’s rights investments

matured within one year (inclusive) when being obtained are listed as other

current assets.* Financial assets measured at fair value through profit or loss of the current period

The Company classifies financial assets other than those above measured at

amortized cost and those measured at fair value through other comprehensive

income as financial assets measured at fair value through profit or loss of the

current period. In addition at the time of initial recognition in order to eliminate

or significantly reduce accounting mismatch the Company designated some

financial assets as financial assets measured at fair value through profit or loss

of the current period. Such financial assets are subsequently measured at fair

value and changes in fair value are included in profit or loss of the current

period. Such financial assets that are matured more than one year and are

expected to be held for more than one year from the balance sheet date are

listed as other non-current financial assets.

2) Equity instrument investments of the Company:

The Company classifies equity instrument investments that have no control joint

control and significant influence on itself as financial assets measured at fair value

through profit or loss of the current period; investments that are expected to be held

for more than one year from the balance sheet date are listed as other non-current

financial assets.In addition the Company designated some non-trading equity instrument investments

as financial assets measured at fair value through other comprehensive income which

are listed as other equity instrument investments. Such designation cannot be

revoked once made. The Company includes the relevant dividends and interest

income of such financial assets in profit and loss of the current period and changes

in fair value are included in other comprehensive income. When the financial asset is

derecognised the Company transfers the cumulative gain or loss previously included

in other comprehensive income directly to retained earnings and is not included in

profit or loss of the current period.

116 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(2) Classification recognition and measurement of financial liabilities

On initial recognition financial instruments or their components issued by the Company are

classified into financial liabilities or equity instruments based on the contractual terms of the

financial instruments and the economic nature rather than solely on its legal form together

with the definition of financial liability and equity instruments.The Company classifies financial liabilities as financial liabilities at fair value through profit

and loss of the current period and other financial liabilities at initial recognition.Financial liabilities at fair value through profit and loss of the current period are

subsequently measured at fair value. Any gains or losses arising from changes in the fair

value and any interest expenses related to the financial liabilities are recognized in profit or

loss of the current period. The financial liabilities at fair value through profit and loss of the

current period of the Company mainly consist of financial liabilities held for trading.Other financial liabilities are subsequently measured at amortized costs using effective

interest method. Other financial liabilities of the Company are financial liabilities measured at

amortized cost including bills payable accounts payable other payables borrowings

bonds payable etc. Such financial liabilities are recognized initially at fair value less

transaction costs and subsequently measured using the effective interest method. Financial

liabilities with a maturity of less than one year (inclusive) are listed as current liabilities:

those with maturity of more than one year but are mature within one year from the balance

sheet date (inclusive) are listed as non-current liabilities due within one year; the rest are

presented as non-current liabilities.

(3) Classification and treatment of financial liabilities and equity instruments

The Company classifies financial liabilities and equity instruments on the following

principles: (1) Where the Company is unable to unconditionally avoid delivering cash or

another financial asset to fulfil a contractual obligation the contractual obligation meets the

definition of a financial liability. Although some financial instruments do not explicitly include

the terms and conditions imposing the contractual obligation to deliver cash or another

financial asset they may indirectly give rise to the contractual obligation through other

terms and conditions. (2) Where a financial instrument shall or may be settled in the

Company’s own equity instrument consideration shall be given to whether the Company’s

own equity instrument as used to settle the instrument is a substitute of cash or another

financial asset or the residual interest in the assets of the Company after deducting all of its

liabilities. In the former case the instrument shall be the Company’s financial liability; in the

latter case the instrument shall be the equity instrument of the Company. Under certain

circumstances whereby a financial instrument contract stipulates that the Company shall or

may use its own equity instrument to settle the financial instrument and the amount of the

contractual right or obligation equal to the number of its own equity instruments to be

received or delivered multiplied by their fair value at the time of settlement the contract

shall be classified as a financial liability regardless of whether the amount of the

contractual right or obligation is fixed or fluctuates in full or in partly in response to

changes in a variable other than the market price of the Company’s own equity instruments

(for example an interest rate a commodity price or a financial instrument price).Haier Smart Home Co. Ltd. Interim Report 2025 117Section VIII Financial Report

When classifying a financial instrument (or a component thereof) in consolidated financial

statements the Company shall consider all terms and conditions agreed between members

of the Group and the holders of the financial instrument. If the Group as a whole has an

obligation in respect of the instrument to settle it by delivering cash or another financial

asset or in such a way that it would be a financial liability such instrument shall be

classified as a financial liability.If the financial instrument or its component is attributable to the financial liability the

relevant interests dividends gains or losses and gains or losses arising from redemption

or refinancing shall be recorded in the profit or loss of the current period.If the financial instrument or its component is attributable to equity instrument the

Company treats it as change in equity when it is issued (including refinanced) repurchased

sold or cancelled. Changes in fair value of equity instrument is not recognized by the

Company. Transaction costs related to equity transactions are deducted from equity. The

Company recognizes the distribution to holders of the equity instruments as distribution of

profits and dividends paid do not affect total amount of shareholders’ equity.

(4) Recognition and measurement on transfer of financial assets

A financial asset shall be de-recognized when one of the following conditions is met: * the

contractual right for receiving cash flows from the financial asset is terminated; * the

financial asset is transferred and the risk and rewards of ownership of the financial asset

have been substantially transferred to the transferee; and * the financial asset is

transferred; the Company neither transfers nor retains substantially all the risks and rewards

of ownership of the financial asset but ceases the control over the financial asset. If the

Company neither transfers nor retains substantially all the risks and rewards of ownership of

the financial asset and the control over the financial asset is not ceased the financial asset

and the related financial liabilities should be recognized based on the degree of continuing

involvement. The degree of continuing involvement means the level of risks borne by the

Company resulting from the change in value of the financial asset.On de-recognition of other equity instruments investment the difference between the

carrying amount and the sum of the consideration received and the cumulative changes in

fair value that had been recognized directly in other comprehensive income is recognized in

the retained earnings. On de-recognition of other financial assets the difference between

the carrying amount and the sum of the consideration received and the cumulative changes

in fair value that had been recognized directly in other comprehensive income is recognized

in current profit or loss.

118 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

For financial assets that are sold with recourse or endorsement the Company needs to

determine whether the risk and rewards of ownership of the financial asset have been

substantially transferred. If the risk and rewards of ownership of the financial asset have

been substantially transferred the financial asset shall be derecognized. If the risk and

rewards of ownership of the financial asset have been substantially retained the financial

asset shall not be de-recognized. If the Company neither transfers nor retains substantially

all the risks and rewards of ownership of the financial asset the Company shall assess

whether the control over the financial asset is retained and the financial assets shall be

accounted for according to the above paragraphs.

(5) Derecognition of financial liabilities

If the current obligation of a financial liability (or part of it) has been discharged the

Company derecognizes the financial liability (or part of the financial liability). The Company

(borrower) enters into an agreement with the lender to replace the original financial liability

in the form of a new financial liability and if the new financial liability is substantially

different from the original financial liability the original financial liability is derecognized and

the new financial liability is recognized. If the Company makes substantial changes to the

contractual terms of the original financial liability (or a part thereof) the original financial

liability is derecognized and the new financial liability is recognized in accordance with the

revised terms.If the financial liability (or a part thereof) is derecognized the difference between the

carrying amount and the consideration paid (including the transferred non-cash assets or

liabilities assumed) is recognized in current profit or loss.

(6) Offsetting financial assets and financial liabilities

When the Company has the legal right to offset recognized financial assets and financial

liabilities and the legal right can be executed at present and the Company has a plan to

settle the financial assets and financial liabilities at the same time or at net amount the

financial assets and financial liabilities can be presented in the balance sheet at net amount

after offsetting. Except for the above circumstances financial assets and financial liabilities

cannot be offset and shall be presented separately in the balance sheet.Haier Smart Home Co. Ltd. Interim Report 2025 119Section VIII Financial Report

(7) Determination of fair value of financial assets and financial liabilities

Fair value is the amount at which an asset could be sold or a liability could be transferred

between willing parties in an orderly transaction on a measurement date. The fair value of a

financial instrument that is traded in an active market is determined at the quoted price in

the active market. Quoted price in the active market represents quoted price which can be

easily obtained periodically from exchange market brokers industry associations or pricing

services agency etc. which is the transactions amount in arm’s length transactions. The

fair value of a financial instrument that is not traded in an active market is determined by

using a valuation technique. Valuation techniques include using prices of recent market

transactions between knowledgeable and willing parties reference to the current fair value

of another financial asset that is substantially the same with this instrument discounted

cash flow analysis and option pricing models etc. During the valuation the Company

adopts an applicable valuation technique under current conditions and there are enough

available data and other information to support. Those inputs should be consistent with the

inputs a market participant would use when pricing the asset or liability and the Company

should maximize the use of relevant observable inputs. When related observable inputs

can’t be acquired or are not feasible to be acquired then use unobservable inputs.In summary the Company categorizes inputs for fair value measurement into three levels

and uses the inputs by the order of Level 1 Level 2 and Level 3. Level 1: quoted prices

(unadjusted) in active markets for identical assets or liabilities at the measurement date.Level 2: inputs other than quoted prices included within Level 1 that are observable for the

asset or liability either directly or indirectly. Level 3: unobservable inputs for the asset or

liability.

(8) Impairment of financial assets

For financial assets measured at amortized cost and debt instrument investments measured

at fair value through other comprehensive income contract assets and financial guarantee

contracts the Company recognizes the loss provision based on the expected credit losses.The Company considers reasonable and reliable information about past events current

conditions and forecasts of future economic conditions and takes the risk of default as a

weight and calculates the probability-weighted amount of the present value of the

difference between the cash flow receivable and the cash flow expected to be received of

the contract to confirm the expected credit losses.On each balance sheet date the Company measures the expected credit losses of

financial instruments in different phases. If the credit risk has not increased significantly

since the initial recognition the financial instruments are in the first phase. The Company

measures the loss provision according to the expected credit losses in the next 12 months;

if credit risk has increased significantly but credit impairment has not yet occurred since the

initial recognition the financial instruments are in the second phase. The Company

measures the loss provision according to the expected credit losses of the instruments

during the entire duration; if credit impairment has occurred since the initial recognition the

financial instruments are in the third phase. The Company measures the loss provision

according to the expected credit losses of the instruments during the entire duration.

120 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

For financial instruments with lower credit risk on the balance sheet date the Company

measures the loss provision according to the expected credit losses in the next 12 months

assuming that its credit risk has not increased significantly since the initial recognition.For financial instruments in the first phase and second phase and financial instruments with

relatively lower credit risk the Company calculates interest income based on their book

balance before the deduction of provisions and effective interest rate. For financial

instruments in the third phase the Company calculates interest income based on their

amortized cost after the impairment provision has been deducted from the book balance

and effective interest rate.For bills receivable accounts receivable and contract assets whether there exist significant

financing components the Company measures loss provision based on expected credit

loss over the entire duration.The Company classifies accounts receivable into groups on the basis of shared credit risk

characteristics and calculates the expected credit losses on groups the bases of group

determination are as follows:

For each group of bills receivable the Company applies exposure at default and expected

credit losses rate over the entire duration to calculate the expected credit losses by taking

into account the historical credit losses experience the existing conditions and forecast of

future economic conditions.For each group of accounts receivable the Company makes the comparison of expected

credit losses rates of accounts receivable in overdue days and over the entire duration to

calculate the expected credit losses by taking into account the historical credit losses

experience the existing conditions and forecast of future economic conditions.For each group of other accounts receivable the Company applies exposure at default and

expected credit losses rate within the next 12 months or over the entire duration to

calculate the expected credit losses by taking into account the historical credit losses

experience the existing conditions and forecast of future economic conditions.The Company recognizes the loss impairment provision or reversed in profit or loss of the

current period. For held debt instruments at fair value through other comprehensive

income the Company recognizes loss/gain on impairment in profit or loss of the current

period and adjusts other comprehensive income at the same time.Haier Smart Home Co. Ltd. Interim Report 2025 121Section VIII Financial Report

12. Inventory

√ Applicable □Not Applicable

(1) Classification of inventory

Inventory refers to finished products and commodities held by the Company in daily

activities for sale products in progress materials and supplies consumed in the process of

production or provision of labour services including mainly raw materials turnover

materials materials for commissioned processing work packaging materials products in

progress semi-finished products through in-house manufacturing finished products

(products in stock) and project construction among others.

(2) Pricing of dispatch of inventory

The actual cost of inventories upon delivery is calculated using the weighted average

method.

(3) Impairment provision for inventory

At the balance sheet date inventory is measured at the lower of cost and net realisable

value.The net realisable value of inventories that can be directly put to sale including finished

products commodities and materials for sale is determined as the estimated selling price of

such inventory less estimated selling expenses and related tax expenses; the net realisable

value of or inventories held for production is determined as the estimated selling price of

finished products manufactured less estimated cost incurred upon completion estimated

selling expenses and related tax expenses; the net realisable value of inventory held for the

execution of sales contract or labour contract is computed on the basis of the contract

price. If the quantity of inventories held by the Company is more than the quantity ordered

under a sales contract the net realisable value of the inventories in excess is computed on

the basis of the general selling price.Inventory impairment provision is made on the basis of individual inventory items provided

that if certain inventories are related to a series of products manufactured and sold in the

same region with identical or similar end uses or purposes and are difficult to measure

separately with other items their cost and net realisable value may be measured on an

aggregate basis. Inventories The cost and net realizable value of inventories in large

quantity with low unit prices are measured according to inventory types.At the balance sheet date if the cost of inventory of the Company is higher than its net

realisable value impairment provision is made and charged to current profit or loss. If the

factor causing the write-down of inventory value has been removed the amount of

write-down should be reversed and transferred out of the previous inventory impairment

provision amount. The reversed amount is included in current profit or loss.

122 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(4) Inventory system

The Company adopts the perpetual inventory system as its inventory system.

(5) Amortisation of low-value consumables and packaging materials

The Company adopts one-off amortisation of its low-value consumables and packaging

materials.

13. Contract assets

√ Applicable □Not Applicable

The Company presents the right of the Company to charge consideration from the customer

unconditionally (i.e. only depends on the passage of time) as a receivable while the

consideration that the Company has the right (and this right depends on factors other than

passage of time) to receive for goods transferred to customers is presented as a contract

assets. If the Company sells two clearly distinguishable goods to the customer and it has the

right to receive payment because one of the goods has been delivered but the receipt of such

payment is conditioned on the delivery of another goods the Company shall recognise such right

to receive payment as contract asset.For the determination and accounting treatment methods of the expected credit loss of contract

assets please see note V.11 “Impairment of financial assets”.

14. Long-term equity investments

√ Applicable □Not Applicable

Long-term equity investments hereunder refer long-term equity investments in which the

Company exercises control joint control or significant influence over the investee.

(1) Determination of initial investment cost

* The initial cost of long-term equity investments acquired through business combination

involving parties under common control should be recognised as the share of the

carrying value of the owner’s equity of the acquired party; the initial cost of long-term

equity investments acquired through business combination involving parties not under

common control should be recognised as the combination costs determined at the

date of acquisition;

* The Company invested in other equity investment other than long-term equity

investments acquired through combination the initial investment cost of long-term

equity investments acquired with cash payment is the acquisition price actually paid;

the initial investment cost of long-term equity investments acquired with the issuance

of equity- based securities is represented by the fair value of equity-based securities;

the initial investment cost of long-term equity investments acquired through debt

restructuring is determined in accordance with relevant provisions under Accounting

Standards for Business Enterprises No.12 — Debt Restructuring; the initial investment

cost acquired in exchange for non-monetary assets shall be determined in

accordance with relevant provisions of the standard.Haier Smart Home Co. Ltd. Interim Report 2025 123Section VIII Financial Report

(2) Subsequent measurement and recognition of profit or loss

* Cost method

Long-term equity investments in which the Company is able to exercise control over

the investee is accounted for using the cost method. Under the cost method the

carrying value of long-term equity investments other than additional investment or

recouped investment shall remain constant. The Company declared the distribution of

profit or cash dividend to the investee and calculated the portion of entitlement

which is recognised as investment income.* Equity method

The equity method is used by the Company to account for long-term equity

investments in associates and joint ventures. Under the equity method the initial

investment cost is not adjusted for any excess of the initial investment cost over the

share of the net fair value of the investee’s identifiable assets. When the initial

investment cost is less than the share of the fair value of the investment’s identifiable

net assets the difference is recognised in current profit or loss and the cost of

long-term equity investment is adjusted accordingly.Under the equity method share of net profit or losses and other comprehensive

income of the investee are recognised by the Company as investment income and

other comprehensive income respectively and the carrying amount of the long-term

equity investment is adjusted accordingly. Share of profit or cash dividend declared

by the investee is charged against the carrying value of the long-term equity

investment; changes in owners’ equity of the investee other than net profit or loss

other comprehensive income and profit distribution are adjusted against the carrying

value of long-term equity investment and included in capital reserve. Share of net

profit or loss of the investee is recognised by the Company on the basis of the fair

value of the identifiable assets of the investee when the investment is acquired and

adjusted against the net profit of the investee. If the accounting policy and

accounting period of the investee are inconsistent with those of the Company the

financial statements of the investee is adjusted to align with the accounting policy and

accounting period of the Company and investment income and other comprehensive

income is recognised accordingly.Net losses of the investee is recognised by the Company by deducting the carrying

value of the long-term equity investment together with long-term equity that in

substance forms part of the net investment in the investee until it reaches zero.Moreover if the Company has incurred obligations to assume additional losses of the

investee estimated liabilities are recognised according to the obligation expected to

be assumed and charged to current investment loss. If the investee records net profit

in future periods the Company shall recognise its share of gains after applying such

share of gains to make up for the unrecognised share of loss.

124 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(3) Change of accounting method for long-term equity investment

* Change from fair value measurement to the equity method: If an equity investment in

the investee not previously affording control joint control or significant influence and

accounted for in accordance with the standard for recognition and measurement of

financial instruments becomes capable of affording joint control or significant influence

over the investee as a result of increased shareholding following additional

investment the accounting method should be changed to the equity method and the

fair value of the original equity investment determined according to the standard for

recognition and measurement of financial instruments plus the fair value of

consideration paid for the acquisition of the new investment shall be changed the

initial investment cost under the equity method.* Change from fair value measurement or equity method to cost method: if an equity

investment previously held in the investee not previously affording control joint control

or significant influence and accounted for in accordance with the standard for

recognition and measurement of financial instruments or a long- term equity

investment previously held in associates or joint ventures becomes capable of

affording control over the investee it is accounted for long-term equity investment

formed through business combination.* Change from equity method to fair value measurement: if a long-term equity investment

previously held in the investee affording joint control or significant influence ceases to

afford joint control or significant influence as a result of decrease in shareholding

percentage following partial disposal the remaining equity investment is recognised in

accordance with the standard for recognition and measurement of financial

instruments and the difference between the fair value at the date of loss of joint

control or significant influence and the carrying value is included in current profit or

loss.* Change from cost method to equity method or fair value measurement: when preparing

separate financial statements if the Company losses control over an investee due to

disposal of some equity-based investment and other reasons the Company accounts

for the remaining equity affording joint control or significant influence over an investee

as a result of disposal based on the equity method and the remaining equity will be

adjusted as if it is accounted for using the equity method from the date of

acquisition; for the remaining equity not affording joint control or significant influence

over an investee as a result of disposal it is accounted for in accordance with

relevant requirements of Accounting Standards for Business Enterprises No. 22—

Recognition and measurement of financial assets and the differences between the fair

value and book value on the date when control is lost are included in profit or loss.When preparing consolidated financial statements it shall be accounted for in

accordance with relevant requirements of Accounting Standards for Business

Enterprises No.33— Consolidated financial statements.Haier Smart Home Co. Ltd. Interim Report 2025 125Section VIII Financial Report

(4) Bases for determining joint control or significant influence over an investee

Joint control is the contractually agreed sharing of control over an arrangement which

relevant activities of such arrangement must be decided by unanimously agreement from

parties who share control. If all the parties or a group of parties must act in concert to

decide on the relevant activities of certain arrangement it can be considered that all parties

or a group of parties have collective control over the arrangement. When determining if

there is any joint control it should first be determined if the arrangement is controlled

collectively by all parties or a combination of parties and then determined whether

decisions about activities related to the arrangement must be made by the unanimous

agreement of those parties who have collective control over the arrangement. If there are

two or more party groups that can collectively control certain arrangement it does not

constitute joint control. When determining if there is any joint control the relevant

protection rights will not be taken into account.Significant influence is the power of the investor to participate in the decision-making of an

investee’s financial and operational policies but neither control nor jointly control the

formulation of such policies with other parties. When determining if there is any significant

influence on the investee the influence of the voting shares of the investee held directly or

indirectly and the potential voting rights held by the Company and other parties which are

exercisable in the current period and converted to the equity of the investee including the

warrants stock options and convertible bonds that are issued by the investee and can be

converted in the current period shall be taken into account by the Company.When the Company holds directly or indirectly through the subsidiary 20% (inclusive) to

50% of the voting shares of the investee it is generally considered to have significant

influence on the investee unless there is concrete evidence to prove that it cannot

participate in the production and operational decisions of the investee and cannot pose

significant influence in this situation.The Company usually determines whether there is significant influence on the investee

through the following one or several circumstances:

* Representation at the board or similar authority of the investee.* Participation in the decision-making process of the investee’s financial and operational

policies.* Having important transactions with the investee.* Posting of management personnel at the investee.* Providing key technical data to the investee.Having one or several of the above circumstances does not mean that the Company must

have significant influence on the investee. The Company needs to comprehensively

consider all the facts and circumstances to make an appropriate judgment.

126 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(5) Methods for impairment test and impairment provision

At the balance sheet date the Company inspects whether there are indications of possible

impairment of a long-term equity investment. If there are indications of impairment an

impairment test should be performed to ascertain its recoverable amount and an

impairment provision equivalent to the margin by which the recoverable amount is lower

than the carrying value should be made. Once recognised impairment loss will not be

reversed in subsequent accounting periods. The recoverable amount is determined as the

higher of net fair value of the long-term equity investment on disposal and present value of

estimated future cash flow.

(6) Disposal of long-term equity investments

Upon the Company’s disposal of long-term equity investments the difference between the

carrying value and consideration actually acquired is included in current profit or loss. Upon

disposal of long-term equity investment the portion previously included in other

comprehensive income is accounted for according to the relevant percentage on the same

basis adopted in the direct disposal of the relevant assets or liabilities by the investee.

15. Investment properties

(1) Types and measurement models of investment properties

The Company’s investment properties include the following types: leased land-use rights

and leased buildings.The Company’s investment properties is initially measured at cost and subsequently on a

cost basis.

(2) Adoption of cost model as accounting policy

Among the Company’s investment properties leased buildings are subject to depreciation

on a straight-line basis in accordance with accounting policies identical with accounting

policies for fixed assets. Leased land-use rights and land-use rights held for disposal after

appreciation land- use rights in investment properties are amortised using the straight-line

method in accordance with accounting policies identical with fixed asset accounting

policies for intangible assets.At the balance sheet date the Company inspects whether there are indications of possible

impairment of an investment property. If there are indications of impairment an impairment

test should be performed to ascertain its recoverable amount and an impairment provision

equivalent to the margin by which the recoverable amount is lower than the carrying value

should be made. Once recognised impairment loss will not be reversed in subsequent

accounting periods.Haier Smart Home Co. Ltd. Interim Report 2025 127Section VIII Financial Report

Where the investment properties are sold transferred retired or damaged the differences

from disposal after deducting the carrying amount and related taxes are recognised in profit

or loss for the current period by the Company. When the Company has evidence indicating

the self-occupied houses and buildings are converted to leasing or leasing out its

properties held for sale under operating leases the carrying amount of such fixed assets

intangible assets or inventories before the conversion are transferred to investment

properties. When the Company has evidence indicating the property held to earn rentals or

for capital appreciation are converted to self-occupation or the property intended for

operating lease purpose are open for sale the carrying amount of such properties before

the conversion are transferred to fixed assets intangible asset or inventories.

16. Fixed assets

(1) Recognition criteria

√ Applicable □Not Applicable

Fixed assets of the Company refer to tangible assets held for the production of

commodities provision of labour services lease or operational management with a useful

life of more than one accounting year. Fixed assets are recognised if all of the following

conditions are met:

* Economic benefits relating to such fixed assets are likely to flow into the Company;

* The cost of the fixed assets can be reliably measured.Subsequent expenditure incurred for a fixed asset that meets the recognition criteria shall

be included in the cost of the fixed asset and the carrying amount of the component of

the fixed asset that is replaced shall be derecognised. Otherwise such expenditure shall be

recognised in profit or loss for the period in which it is incurred.Fixed assets of the Company are initially measured at cost. The purchase cost of a fixed

asset comprises its purchase price related taxes and any directly attributable expenditure

for bringing the asset to its working condition for its intended use such as transportation

costs and installation expenses. If the payment for a purchased fixed asset is deferred

beyond the normal credit terms the cost of the fixed asset shall be determined based on

the present value of the instalment payments. The difference between the actual payment

and the present value of the purchase price is recognised in profit or loss over the credit

period except for such difference that is capitalised according to Accounting Standard for

Business Enterprises No. 17 — Borrowing Costs.

128 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(2) Classification and depreciation of fixed assets

The Company’s fixed assets are mainly classified into: buildings machinery equipment

transportation equipment and office and other equipment; depreciation is conducted on a

straight-line basis. The useful life and estimated net residual value of fixed assets are

determined based on the nature and use of the fixed assets. At the end of the year the

useful life and estimated residual value of and depreciation method for fixed assets are

reviewed and adjustment is made for any difference with the original estimated amount.Other than fully depreciated fixed assets which remain in use and the land which is

separately priced and recorded the Company measures depreciation for all fixed assets.The type depreciation method estimated useful lives estimated residual values and yearly

depreciation of the Company’s fixed assets are as follows:

Estimated Estimated

useful lives residual

Type of assets Depreciation method (years) values net

Buildings Life average method 8–40 0–5%

Machinery equipment Life average method 4–20 0–5%

Transportation equipment Life average method 5–10 0–5%

Office and other equipment Life average method 3–10 0–5%

(3) Methods for impairment test and impairment provision for fixed assets

At the balance sheet date the Company inspects whether there are indications of possible

impairment of fixed assets. If there are indications of impairment an impairment test should

be performed to ascertain its recoverable amount and an impairment provision equivalent

to the margin by which the recoverable amount is lower than the carrying value should be

made. Once recognised impairment loss will not be reversed in subsequent accounting

periods.

(4) Disposal of fixed assets

Fixed assets are derecognised upon disposal or when no economic benefits are expected

from use or disposal. The difference between gains on disposal transfer retirement or

damage of fixed assets net of their book value and related taxes are included in profit and

loss.

17. Construction in progress

√ Applicable □Not Applicable

(1) Measurement of construction in progress

The cost of the Company’s construction in progress is recognised at actual construction

expenses including all necessary construction expenses incurred during the construction

and borrowing costs capitalized before the work reaches the expected conditions for use

and other related costs.Haier Smart Home Co. Ltd. Interim Report 2025 129Section VIII Financial Report

(2) Criteria for and timing of the transfer of construction in progress to fixed assets

The Company’s construction in progress is transferred to fixed assets when the work is

completed and reaches the expected conditions for use. The criteria for judgement of

expected conditions for use should meet one of the following:

* The physical construction (including installation) of fixed assets has been completed in

full or substantially completed in full;

* Trial production or operation has commenced and the result indicates that the asset

can operate normally or can manufacture compliant products in a consistent manner

or the trial operation indicates that it can operate or conduct business normally;

* The amount of fixed asset expenditure of the construction is minimal or almost certain

not be further incurred;

* Fixed assets acquired have reached design or contractual requirements or are

essentially consistent with design and contractual requirements.

(3) Methods for impairment test and impairment provision for construction in progress

At the balance sheet date the Company inspects whether there are indications of possible

impairment of construction in progress. If there are indications of impairment an

impairment test should be performed to ascertain its recoverable amount and an

impairment provision equivalent to the margin by which the recoverable amount is lower

than the carrying value should be made. Once recognised impairment loss will not be

reversed in subsequent accounting periods.The recoverable amount is determined as the higher of net fair value of the asset less

disposal cost and the present value of estimated future cash flow.

18. Borrowing costs

√ Applicable □Not Applicable

(1) Principle for recognition of capitalisation of borrowing cost

Borrowing costs incurred by the Company that can be directly attributed to the acquisition

or production of assets qualified for capitalisation are capitalised and included in relevant

asset costs; other borrowing costs are recognised as cost at the amount incurred at the

time of incurrence and charged to current profit or loss. Assets qualified for capitalisation

refer to fixed assets investment properties and inventory that require a considerably long

period of acquisition or production activities to reach the expected conditions for use or

sale.

130 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(2) Computation of capitalised amounts

Capitalisation period: from the point of time at which the capitalisation of borrowing costs

begins to the point of time at which capitalisation ceases. The period of suspension of

capitalisation of borrowing costs is not included.Period of suspension of capitalisation: In case of abnormal disruption during the acquisition

or production process for a consecutive period of more than 3 months the capitalisation

period for borrowing costs should be suspended.Computation of capitalised amount: * For specific borrowings the amount is determined

as interest expense incurred for the period in respect of the specific borrowing less interest

income received through the deposit of unutilised borrowed funds or investment gains

received through provisional investments; * For general borrowings utilised the amount is

determined as the weighted average amount of the portion of cumulative asset expenses in

excess of the asset expense of specific borrowings multiplied by the capitalisation rate for

the general borrowings utilised where the capitalisation rate is the weighted average

interest rate of general borrowings; * where there is a discount or premium in the

borrowings the amortisation of such discount or premium for each accounting period is

determined according to the effective interest rate and the interest amount for each period

is adjusted accordingly.

19. Intangible assets

Intangible assets are the identifiable non-monetary assets which have no physical form and are

possessed or controlled by the Company and are recognized when the following conditions are

met:

* it is probable that economic benefits attributable to the intangible assets will flow into the

Company;

* the costs of the intangible assets can be measured reliably.

(1) Measurement of intangible assets

Intangible assets of the Company are initially recognized at costs. The actual costs of

purchased intangible assets include the consideration and relevant expenses actually paid.For intangible assets contributed by investors relevant actual costs are determined based

on the value agreed in the investment contract or agreement. But if the value agreed in the

investment contract or agreement is not a fair value the actual costs should be determined

based on the fair value. The cost of a self-developed intangible asset is the total

expenditure incurred in bringing the asset to its intended use. Intangible assets acquired in

a business combination not under common control that are owned by the acquiree but not

recognised in its financial statements are recognised as intangible assets at fair value on

initial recognition of the acquiree’s assets.Haier Smart Home Co. Ltd. Interim Report 2025 131Section VIII Financial Report

Subsequent measurement of intangible assets of the Company: * Intangible assets with

finite useful lives are amortized on a straight-line basis; their useful lives and amortization

methods are reviewed at the end of each year and adjusted accordingly if there is any

variance with the previous estimates; * Intangible assets with indefinite useful lives are not

amortized and their useful lives are reviewed at the end of each year. If there is an

objective evidence that the useful life of an intangible asset is finite an estimation should

be made on the useful life and the intangible asset should be amortized using the straight-

line method.

(2) Criterion of determining indefinite useful life

The useful life of an intangible asset is indefinite if the period in which the asset brings

economic benefits for the Company is unforeseeable or the useful life could not be

ascertained.Criterion of determining indefinite useful lives: * the period is derived from contractual

rights or other legal rights and there are no explicit years of use stipulated in the contract

or laws and regulations; * the period in which the intangible assets generate benefits for

the Company still could not be estimated after considering the industrial practice or

relevant expert opinions.At the end of each year the Company reviews the useful lives of the intangible assets with

indefinite useful lives. The assessment is primarily reviewed by relevant departments that

use the intangible assets using the down-to-top approach to determine if there are

changes to the determination basis of indefinite useful lives.

(3) Methods of test and provision for impairment of intangible assets

At the balance sheet date the Company reviews intangible assets to check whether there

is any sign of impairment. If yes the recoverable amount is recognized through an

impairment test and provision for impairment is made based on the difference between the

carrying value and the recoverable amount.Impairment loss will not be reversed in subsequent accounting periods once provision is

made for it. The recoverable amount of intangible assets should be based on the higher of

the net fair value of the assets less the disposal expense and the present value of

estimated future cash flow of the assets.

132 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(4) Basis for research and development phases for internal research and development

project and basis for capitalization of expenditure incurred in development stage

As for an internal research and development project expenditure incurred in the research

stage is recognized in the profit or loss as incurred. Expenses incurred in the development

stage are capitalized only if all of the following conditions are met: * the technical

feasibility of completing the intangible assets so that they will be available for use or for

sale; * the intention to complete the intangible assets for use or for sale; * how the

intangible assets will generate economic benefits including there is evidence that the

products produced by the intangible assets has a market or the intangible assets

themselves have a market; if the intangible assets are for internal use there is evidence

that there exists usage for the intangible assets; * the availability of adequate technical

financial and other resources to complete the development and gain the ability to use or

sell the intangible assets; * the capability to reliably measure the expenditures attributable

to the development stage of the intangible assets.Specific standards for distinguishing research stage and development stage of an internal

research and development project: the Company refers to the research stage as the stage

of planned investigation and search for obtaining new technology and knowledge which

features planning and exploration; before commercial production or other uses the

Company regards the stage of applying the research achievements and other knowledge in

a plan or design to produce new or substantially improved materials equipment and

products as development stage which features pertinence and is very likely to form

results.All the expenditures incurred on research and development which cannot be distinguished

between research stage and development stage are recognized in the profit or loss.

20. Impairment of long-term assets

√ Applicable □Not Applicable

Long-term equity investment investment properties measured based on cost model fixed assets

construction in progress intangible assets and other long-term assets are tested for impairment

if there is any sign of impairment at the balance sheet date. If the result of the impairment test

indicates that the recoverable amount of the assets is less than the carrying amount a provision

for impairment will be made based on the difference and will be recorded in impairment loss. The

recoverable amount is the higher of the net fair value of the assets less the disposal expense

and the present value of estimated future cash flow of the assets. Provision for asset impairment

is calculated and recognized on the individual asset basis. If it is not possible to estimate the

recoverable amount of an individual asset the recoverable amount of the asset group to which

the asset belongs is determined. An asset group is the smallest asset portfolio that can generate

cash inflows independently.Goodwill arising from a business combination and an intangible asset with an indefinite useful life

is tested for impairment at least at each year end irrespective of whether there is any indication

that the asset may be impaired. Intangible assets that have not been ready for intended use are

tested for impairment each year.Haier Smart Home Co. Ltd. Interim Report 2025 133Section VIII Financial Report

When the Company carries out impairment test of the goodwill the carrying amount of the

goodwill arising from business combination shall be allocated to the related asset groups on

reasonable basis since the acquisition date or to the related asset group portfolios if it is difficult

to be allocated to the related asset groups. When the carrying amount of the goodwill is

allocated to the related asset groups or asset group portfolios it shall be allocated in the

proportion of the fair value of each asset group or asset group portfolio against the total fair

value of related asset groups or asset group portfolios. If it is difficult to measure the fair value

reliably it shall be allocated in the proportion of the carrying amount of each asset group or

asset group portfolio against the total carrying amount of related asset groups or asset group

portfolios.When impairment test is made by the Company to the related asset groups or asset group

portfolios including goodwill if there is a sign that the related asset groups or asset group

portfolios are prone to impair the Company shall first conduct impairment test on the asset

groups or asset group portfolios excluding goodwill calculate the recoverable amount and

recognize the corresponding impairment loss by comparing with its carrying amount. The

Company shall then conduct impairment test on the asset groups or asset group portfolios

including goodwill and compare the carrying amount (including the carrying amount of allocated

goodwill) of related asset groups or asset group portfolios with the recoverable amount thereof.Impairment loss shall be recognized in accordance with the differences when the recoverable

amount of the related asset groups or asset group portfolios is lower than the carrying amount

thereof. The amount of the impairment loss is first reduced by the carrying amount of the

goodwill allocated to the asset group or set of asset groups and then the carrying amount of

other assets (other than the goodwill) within the asset group or set of asset groups pro rata

based on the carrying amount of each asset.Once the above impairment loss on assets is recognized it shall not be reversed by the

Company in any subsequent accounting period.

21. Long-term prepaid expense

√ Applicable □Not Applicable

Long-term prepaid expenses of the Company are expenditures which have incurred but the

benefit period of which is more than one year (exclusive). They are amortized by installments over

the benefit period based on each item under the expenses. If items under the long-term pre-paid

expenses are no longer beneficial to the subsequent accounting periods the amortized value of

such unamortized items is then fully transferred to the profit or loss.

134 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

22. Contract liabilities

√ Applicable □Not Applicable

A contract liability represents the Company’s obligation to transfer goods to a customer for

which the Company has received consideration (or an amount of consideration is due) from the

customer. If the customer has already paid the contract consideration before the Company

transfers goods to the customer or the Company has obtained the unconditional collection right

the Company will recognise such amount received or receivable as contract liabilities at earlier of

the actual payment by the customer or the amount payable becoming due. Contract assets and

contract liabilities under the same contract are presented on a net basis and contract assets

and contract liabilities under different contracts are not offset.

23. Staff’s remuneration

Staff’s remunerations are all forms of compensation and other relevant expenditure given by the

Company in exchange for services rendered by employees including short-term remunerations

post-employment benefits termination benefits and other long-term benefits.

(1) Accounting treatment of short-term remunerations

√ Applicable □Not Applicable

Short-term remunerations provided by the Company include short-term salaries bonus

allowance subsidies employee welfare housing provident fund labor union fee and

education fee medical insurance premiums work-related injury insurance premiums

maternity insurance premiums short-term compensated leave short-term profit-sharing

plans etc. During the accounting period when employees render services the Company

shall recognize short-term remunerations that actually incurred as liabilities and credited into

the current profit or loss or the cost of relevant assets on an accrual basis by the benefit

objects.

(2) Accounting treatment of post-employment benefits

√ Applicable □Not Applicable

Post-employment benefits mainly include the basic pension insurance enterprise annuity

etc. In accordance with the risks and obligations undertaken by the Company the

post-employment benefits are classified as defined contribution plans and defined benefit

plans.Defined contribution plans: the Company shall recognize the sinking funds paid on the

balance sheet date to individual entities in exchange for services from employees in the

accounting period as liabilities and shall credit such funds into the profit or loss or the cost

of relevant assets in accordance with the benefit objects.Haier Smart Home Co. Ltd. Interim Report 2025 135Section VIII Financial Report

Defined benefit plans: the Company determines the cost for providing benefits using the

expected cumulative welfare unit method with actuarial valuations being carried out by

independent actuary at the interim and annual balance sheet date. The costs for staff’s

remunerations incurred by the defined benefit plans of the Group are categorized as

follows: (1) service cost including current period service cost past service cost and

settlement profit or loss. Specifically current period service cost means the increase of the

present value of defined benefit obligations resulted from the current period services offered

by employees. Past service cost means the increase or decrease of the present value of

defined benefit obligations resulted from the revision of the defined benefit plans related to

the prior period services offered by employees; (2) interest expenses of defined benefit

plans; (3) changes caused by the remeasurement of liabilities for defined benefit plans.Unless other accounting standards require or permit the credit of the costs for employee

welfare into the cost of assets the Company will credit (1) and (2) above into the profit or

loss; and recognize (3) above as other comprehensive income and will not transfer it back

to the profit or loss in subsequent accounting periods.

(3) Accounting treatment of termination benefits

√ Applicable □Not Applicable

Termination benefits are the indemnity proposal provided by the Company for employees

for the purpose of terminating labor relations with employees before expiry of the labor

contracts or encouraging employees to accept downsizing voluntarily. When the Company

could not unilaterally withdraw the termination benefits provided as a result of plan for

termination of labor relations or the redundancy offer or upon recognition of costs or

expenses related to a restructuring involving the payment of termination benefits whichever

is earlier the staff’s remuneration liabilities arising from such termination benefits are

recognized and included in current profit or loss.

24. Estimated liability

√ Applicable □Not Applicable

(1) Criterion for determining of estimated liability

If an obligation in relation to contingencies such as external guarantees discounting of

commercial acceptance bills pending litigation or arbitration and product quality assurance

is the present obligation of the Company and the performance of such obligation is likely to

lead to an outflow of economic interests and its amount can be reliably measured such

obligation shall be recognized as an estimated liability.

(2) Measurement of estimated liability

The estimated liability shall be initially measured according to the best estimate of the

necessary expenses for the performance of the present obligation. If there is a continuous

range for the necessary expenses and if all the outcomes within this range are equally likely

to occur the best estimate shall be determined according to the middle estimate within the

range; if there are two or more items involved the best estimate should be determined

according to all possible outcomes and relevant probabilities.

136 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

At the balance sheet date the carrying value of estimated liabilities should be reviewed. If

there is objective evidence that the carrying value could not reflect in the current best

estimate the carrying value shall be adjusted to reflect the current best estimate.If all or part of the expense necessary for settling the provisions is expected to be

compensated by the third party the amount of compensation is separately recognized as

an asset when it is basically determined to be recoverable and the recognized amount of

the compensation shall not exceed the carrying amount of the provisions.

25. Share-based payments

√ Applicable □Not Applicable

Share-based payments of the Company are transactions in which equity instruments are granted

to employees in exchange for services rendered by employees or for the assumption of liabilities

based on equity instruments. Share-based payments of the Company are equity-settled

share-based payments and cash-settled share-based payments.For equity-settled share-based payment transaction in return for services from employees it shall

be measured at the fair value of equity instruments granted to the employees at the date of

grant by the Company. On each balance sheet date within the vesting period the Company

makes the best estimation of the number of vested equity instruments based on subsequent

information such as the updated changes in the number of employees who are granted to vest

and the achievement of specified performance conditions. Based on the above results the

services received in the current period are included in the relevant cost or expenses based on

the fair value on the date of grant with the increase in the capital reserve accordingly. The

recognized relevant cost or expenses and the total amount of owners’ interest shall no longer be

adjusted after the vesting date. However equity instruments vested immediately after the date of

grant shall be included in the relevant cost or expenses based on its fair value on the date of

grant with the increase in the capital reserve accordingly.The cash-settled share-based payment shall be measured at the fair value of liability assumed by

the Company which is determined based on the shares or other equity instruments. For the

cash-settled share-based payment that may be exercised immediately after the grant the fair

value of the liability assumed by the Company shall on the date of the grant be recognized in

relevant costs or expenses and the liabilities shall be increased accordingly. For cash-settled

share-based payment that may be exercised if services are fulfilled during the vesting period or

the specified performance condition is achieved on each balance sheet date within the vesting

period the services acquired in the current period shall based on the best estimate of exercise

be recognized in relevant costs or expenses at the fair value of the liability assumed by the

Company and the liabilities shall be adjusted correspondingly. At each balanced sheet date and

the settlement date prior to the settlement of liabilities the fair value of the liability is

re-measured with its change consolidated in profit/loss.Haier Smart Home Co. Ltd. Interim Report 2025 137Section VIII Financial Report

When there is changes to the Company’s share-based payment plans if the modification

increases the fair value of the equity instruments granted corresponding recognition of service

increase in accordance with the increase in the fair value of the equity instruments; if the

modification increases the number of equity instruments granted the increase in fair value of the

equity instruments is recognized as a corresponding increase in service achieved. Increase in the

fair value of equity instruments refer to the difference between the fair values of the equity

instrument on the modified date before or after the modification. If the Company modifies the

vesting conditions in such manner conductive to the employees including the shortening of the

vesting period change or cancellation of the performance conditions (rather than market

conditions) the modified vesting conditions are considered upon the disposal of vesting

conditions. If the modification reduces the total fair value of shares paid or the Company uses

other methods not conductive to employees to modify the terms and conditions of share-based

payment plans the Company will continue to be accounted for the services obtained in the

accounting treatment as if the change had not occurred unless the Company cancelled some or

all of the equity instruments granted.During the vesting period if the Company cancel equity instruments granted which will be treated

as accelerating the exercise of rights and any amount to be charged over the remaining vesting

period should be recognized immediately in the profit or loss while at the same time recognize

the capital reserve. Employees or other parties can choose to meet non-vesting conditions but

for those that are not met in the vesting period the Company will treat it as cancellation of

equity instruments granted.

26. Revenue

Revenue is the total inflow of economic benefits formed by the Company and its subsidiaries

during day-to-day operations which might lead to increase of shareholders’ equity and be

irrelevant to capital invested by shareholders.The Company and its subsidiaries performed performance obligations stated in the contract i.e.recognized revenue when the client obtains the control right of relevant goods or services.Where the contract includes two or more performance obligations during the starting date of the

contract the Company and its subsidiaries allocate transaction price to various single

performance obligation in accordance with the relevant proportion of separate selling price of

goods or services promised by various single performance obligation and measure revenue in

accordance with transaction price allocated to various single performance obligation.Transaction price is the amount of consideration that the Company and its subsidiaries are

expected to be entitled to collect due to transfer of goods and services transferred to the client

excluding the amount collected for any third party. The transaction price recognized by the

Company and its subsidiaries does not exceed the amount of recognized revenue when relevant

uncertainties are eliminated and might not incur material carrying back. The amount that is

expected to be returned to the client is taken as liability of returned goods and is not recorded

in transaction price.

138 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

When one of the following conditions is met the Company and its subsidiaries perform

performance obligations during a certain time horizon otherwise it belongs to fulfilling

performance obligations at a certain time point:

* The client simultaneously obtains and consumes economic benefits as the Company and its

subsidiaries perform the contract;

* The client is able to control goods under construction during the process of performance of

the Company and its subsidiaries;

* Goods produced by the Company and its subsidiaries during the process of performance

have no alternative use and the Company and its subsidiaries are entitled to collect the

amount for the cumulative completed and performed portion to date during the entire

contractual period.For the performance obligations performed during a certain time horizon the Company and its

subsidiaries recognize revenue in accordance with the schedule of performance during such time

horizon. When the schedule of performance can’t be reasonably recognized where the costs that

have been incurred by the Company and its subsidiaries are estimated to be compensated

revenue shall be recognized in accordance with the amount of costs that has been incurred until

the schedule of performance can be reasonably confirmed.For performance obligations performed at a certain time point the Company and its subsidiaries

recognize revenue at the time point when the client obtains the control right of relevant goods or

services. When judging whether the client has obtained control right over goods or services the

Company and its subsidiaries will consider the following signs:

* The Company and its subsidiaries enjoy the right of instant collection over such goods and

services;

* The Company and its subsidiaries have transferred the material objects of such goods to

the client;

* The Company and its subsidiaries have transferred statutory ownership right of the goods

or major risks and rewards of the ownership to the client;

* The client has accepted such goods or service.The right that the Company and its subsidiaries are entitled to collect the consideration for

having transferred goods or services to the client (and such right depends on other factors other

than time lapse) is presented as contract asset and contract asset is provisioned impairment on

the basis of expected credit losses. The right owned by and unconditionally collected from the

client by the Company and its subsidiaries (only depend on time lapse) shall be presented as

accounts receivable. Obligations that the Company and its subsidiaries have collected or shall

collect consideration from the client and shall transfer goods or services to the client are

presented as contractual obligations.Haier Smart Home Co. Ltd. Interim Report 2025 139Section VIII Financial Report

Specific accounting policies relating to major activities that the Company and its subsidiaries

obtain revenue are described as follows:

(1) Sale of goods

Generally contracts for sale of goods between the Company and its clients only include

performance obligation of transferring the whole machine of home appliance. Generally on

the basis of taking into account the following factors comprehensively the Company

recognizes the revenue at the time point of transfer of control right of goods: the right of

instant collection for obtaining goods transfer of major risks and rewards on ownership of

goods transfer of statutory ownership of goods transfer of assets of material objects of

goods the client’s acceptance of such goods.

(2) Construction contract income

Construction contract between the Company and the client generally includes performance

obligations of construction and installation of commercial air-conditioner and smart home

because the client is able to control goods under construction during the Company’s

performance process the Company takes them as performance obligations performed

during a certain time horizon and recognizes revenue in accordance with the schedule of

performance and it is an exemption when the schedule of performance can’t be

reasonably confirmed. The Company confirms the schedule of performance of services

provided in accordance with the input method. When the schedule of performance can’t be

reasonably confirmed where the costs that have been incurred by the Company are

estimated to be compensated the revenue will be recognized in accordance with the

amount of costs that has been incurred until the schedule of performance can be

reasonably confirmed.

(3) Warranty obligations

According to contractual agreement and regulations of laws the Company provides quality

assurance for goods sold and project constructed. For guarantee-type quality assurance in

order to ensure the client that goods sold comply with existing standards the Company

conducts accounting treatment in accordance with estimated liabilities. For service-type

quality assurance in order to ensure the client that we also provide a separate service other

than that the goods sold comply with existing standards the Company takes it as a

separate performance obligation and allocates partial transaction price to service-type

quality assurance in accordance with the relevant proportion of separate selling price of

goods and service-type quality assurance and recognizes revenue when the client obtains

control right over services. When assessing whether quality assurance provides a separate

service other than ensuring the client that the goods sold comply with existing standards

the Company shall consider factors such as whether such quality assurance is under

statutory requirements or industrial practices the term of quality assurance and the nature

of the Company’s commitment to perform the tasks.

140 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

27. Government grants

√ Applicable □Not Applicable

(1) Types of government grants

Government grants refer to the gratuitous monetary assets or non-monetary assets

obtained by the Company from the government excluding the capital invested by the

government as an owner. The government grants are mainly divided into asset-related

government grants and revenue-related government grants.

(2) Accounting treatment of government grants

Asset-related government grants shall be recognized as deferred income in current profit or

loss on an even basis over the useful life of relevant assets; government grants measured

at nominal amount shall be recognized directly in current profit or loss. Revenue-related

government grants shall be treated as follows: * those used to compensate relevant

expenses or losses to be incurred by the enterprise in subsequent periods are recognized

as deferred income and recorded in current profit or loss when such expenses are

recognized; * those used to compensate relevant expenses or losses that have been

incurred by the enterprise are recorded directly in current profit or loss.

(3) Basis for determination of asset-related government grant and revenue-related

government grant

If the government grant received by the Company is used for purchase construction or

other project that forms a long-term asset it is recognized as asset-related government

grant.If the government grant received by the Company is not asset-related it is recognized as

revenue-related government grant.Government grant received without clear objective shall be classified as asset-related

government grant or revenue-related government grant by:

* Government grant subject to a certain project shall be separated according to the

proportion of expenditure budget and capitalization budget and the proportion shall

be reviewed and modified if necessary on each balance sheet date;

* Government grant shall be categorized as revenue-related if its usage is described in

general statement and no specific project is specified in the relevant government

document.

(4) Amortization method and determination of amortization period of deferred revenue

related to government grants

Asset-related government grant received by the Company is recognized as deferred

revenue and is evenly amortized to the profit or loss in the current period over the

estimated useful life of the relevant asset starting from the date when the asset is available

for use.Haier Smart Home Co. Ltd. Interim Report 2025 141Section VIII Financial Report

(5) Recognition of government grants

Government grant measured at the amounts receivable is recognized at the end of

the period when there is clear evidence that the relevant conditions set out in the

financial subsidy policies and regulations are fulfilled and the receipt of such financial

subsidy is assured.Other government grants other than those measured at the account receivable is

recognized upon actual receipt of such subsidies.

28. Deferred tax assets/deferred tax liabilities

√ Applicable □Not Applicable

Deferred income tax assets and deferred income tax liabilities of the Company are calculated and

recognized based on the differences between the tax bases and the carrying amounts of assets

and liabilities (temporary differences).

(1) Deferred income tax assets are recognized by the Company to the extent that it is probable

that future taxable profits will be available against which the deductible temporary

differences can be utilized. For deductible losses and tax credits that can be carried

forward to future years deferred income tax assets shall be recognized to the extent that it

is probable that taxable profit will be available in the future to offset the deductible losses

and tax credits. Save as the exceptions deferred income tax liabilities shall be recognized

for the taxable temporary differences.

(2) Deferred income tax asset of the Company is recognized to the extent that there is enough

taxable income for the deduction of the deductible temporary difference. At the balance

sheet date if there is sufficient evidence that there will be enough taxable income in the

future for the deduction of the deductible temporary difference the deferred income tax

asset not recognized in previous accounting period is recognized. If there is no sufficient

evidence that there will be enough taxable income in the future for the deduction of the

deferred income tax asset the carrying value of the deferred income tax asset is reduced.

(3) The Company recognizes deferred income tax liability for taxable temporary difference arising

from investments in subsidiaries and associated companies unless the Company could

control the time of reversal of the temporary differences and the temporary differences

would not be probably reversed in the foreseeable future. The Company recognizes

deferred income tax asset for deductible temporary differences arising from investments in

subsidiaries and associated companies if the temporary difference will be very probably

reversed in the foreseeable future and it is highly probable that taxable income will be

available in the future to deduct the deductible temporary difference.

142 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(4) The Company does not recognize deferred income tax liability for a temporary difference

arising from the initial recognition of goodwill. No deferred income tax asset or deferred

income tax liability is recognized for the temporary differences resulting from the initial

recognition of assets or liabilities due to a transaction other than a business combination

which affects neither accounting profit nor taxable income (or deductible loss). At the

balance sheet date deferred income tax assets and deferred income tax liabilities of the

Company are measured at the tax rates that apply to the period when the asset is

expected to be recovered or the liability is expected to be settled.

(5) Deferred income tax assets and deferred income tax liabilities are offset when:

1) deferred tax assets and deferred tax liabilities relate to income taxes levied by the same

taxation authority on the same taxable entity within the Company;

2) such taxable entity within the Company has a legally enforceable right to settle current

income tax assets and current income tax liabilities on a net basis.

29. Leases

√ Applicable □Not Applicable

Lease is a contract in which the Company transfers or obtains the right of use of an identified

asset or several identified assets under control for the exchange or payment of consideration

within a certain period of time. At inception of a contract the Company assesses whether a

contract is or contains a lease.

(1) The Company as the lessee

1) Initial measurement

On the commencement date of the lease term the Company recognizes its right to

use leased assets over the lease term as right-of-use assets and recognizes the

present value of the lease payments that have not been paid as lease liabilities

except for short-term leases and low-value leases. The lease payments are

discounted using the implicit interest rate in the lease when calculating the present

value of the lease payments. If that rate cannot be readily determined the Company

uses its incremental borrowing rate as the discount rate.Right-of-use assets shall be initially measured at costs. The costs include:

a. initial measurement amount of the lease liabilities;

b. a lease payment paid on or before the date of commencement of the lease term

where there were lease incentives such incentives received shall be deducted;

c. initial direct costs incurred by the lessee;

d. costs expected to be incurred by the Company for demolition and removal of

leased assets restoration of the premises where the leased assets are located

or restoration of the leased assets to the conditions of the lease terms.Haier Smart Home Co. Ltd. Interim Report 2025 143Section VIII Financial Report

2) Subsequent measurement

If the Company accrues depreciation for right-of-use assets by reference to the

depreciation policy for fixed assets (see this Note V.16 “Fixed assets” for details) and

can reasonably determine that the ownership of the leased asset can be acquired at

the expiration of the lease term the Company shall depreciate the leased asset within

its remaining useful life. If the Company cannot reasonably determine that the

ownership of the leased asset can be acquired at the expiration of the lease term the

Company shall depreciate the leased asset within the lease term or its remaining

useful life whichever is shorter. For lease liabilities the Company shall calculate the

interest expenses for each period over the lease term at the fixed periodic interest

rate and recognize it in current profit or loss or the cost of relevant assets. Variable

lease payments that are not included in the measurement of lease liabilities are

recognized in current profit or loss or the cost of relevant assets when they are

actually incurred. After the commencement date of the lease term in the event that

there is a change in the substantive fixed payments a change in expected payment

under a guaranteed residual value a change in an index or rate used in determining

the lease payments or a change in the evaluation result or actual exercise of

purchase option extension option or termination option the Company remeasures the

lease liabilities based on the present value of the lease payments after the change

and adjusts the carrying value of the right-of-use asset accordingly. If the carrying

amount of the right-of-use asset has been reduced to zero but a further reduction in

the measurement of the lease liabilities is still warranted the Company recognizes the

remaining amount of the remeasurement in current profit or loss.

3) Short-term leases and leases of low-value assets

For short-term leases (leases with a term of less than 12 months as of the lease

commencement date) and leases of low-value assets the Company adopts a

simplified approach by not recognizing the right-of-use assets and lease liabilities and

instead recognizes the cost of relevant assets or current profit or loss on a

straight-line basis for each period over the lease term.

(2) The Company as the lessor

The Company classifies leases into finance leases and operating leases based on the

substance of the transaction at the inception date of the lease. A finance lease is a lease

that transfers substantially all the risks and rewards incidental to ownership of the leased

asset. An operating lease is a lease other than a finance lease.

1) Operating leases

The Company uses the straight-line method to recognize lease receipts under

operating leases as rental income for each period during the lease term. Variable

lease payments relating to operating leases that are not recognized as lease receipts

are recognized in current profit or loss when they are actually incurred.

144 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

2) Finance leases

On the commencement date of the lease term the Company recognizes finance lease

receivables and derecognizes finance lease assets. Finance lease receivables are

initially measured at the net investment in the lease (the sum of the unguaranteed

residual value and the present value of the lease receipts not yet received on the

commencement date of the lease term discounted at the interest rate embedded in

the lease) and interest income is recognized over the lease term calculated at a fixed

periodic interest rate. Variable lease payments acquired by the Company that are not

included in the measurement of the net investment in the lease are recognized in

current profit or loss when they are actually incurred.

30. Other significant accounting policies and accounting estimates

√ Applicable □Not Applicable

(1) Asset securitisation

The Company has securitised certain receivables to entrust the assets to specific-purpose

entities which would issue such securities to investors. As asset service provider the

Company is responsible for the provision of maintenance and daily management of the

assets formulation of annual asset disposal plans formulation and implementation of asset

disposal plan signing of relevant asset disposal agreements and preparation asset service

reports on a regular basis.In applying the accounting policy for the securitisation of financial assets the Company has

considered the extent to which the risk and reward of the assets have been transferred to

other entities and the extent to which the Company exercises control over the entity:

* When the Company has transferred substantially all risk and reward relating to the

ownership of a financial asset such financial asset is derecognised;

* When the Company retains substantially all risk and reward relating to the ownership

of a financial asset the Company continues to recognise such financial asset;

* If the Company neither transfers nor retains substantially all risk and reward relating to

the ownership of a financial asset the Company considers whether it has control over

the financial asset. If the Company does not retain control the financial asset is

derecognised and the rights and obligations arising from or retained the transfer are

recognised as assets and liabilities respectively. If the Company retains control the

financial asset is recognised according to the extent of continued involvement in the

financial assets.

(2) Hedge accounting

Hedge refers in respect of the risk exposure arising from the company’s management of

specific risks such as foreign exchange risks interest rate risks price risks and credit risks

to risk management activity of designating financial instruments as hedging instruments

such that the change in the fair value or cash flow of the hedging instruments can be

expected to set off the change in the fair value or cash flow of the hedged item.Haier Smart Home Co. Ltd. Interim Report 2025 145Section VIII Financial Report

The hedged item refers to an item designated for hedge against the risk of change in fair

value or cash flow that can be reliably measured.Hedging instruments are financial instruments designated for hedge the change in fair value

or cash flow of which is expected to set off the change in the fair value or cash flow of the

hedged item.The Company assesses whether the hedge relationship fulfills the requirement for hedge

effectiveness at the inception date of the hedge and continuously in subsequent periods.The effectiveness of hedge refers to the extent to which the change in the fair value or

cash flow of the hedging instruments can offset the change in the fair value or cash flow of

the hedged item caused by the risk against which the hedge is made. The change in the

fair value or cash flow of a hedging instrument in excess or shortfall of the change in the

fair value or cash flow of the hedging instruments can offset the change in the fair value or

cash flow of the hedged item represents the ineffective portion of the hedge.

(3) Significant accounting estimates

In the course of applying accounting policies the Company is required to make

judgements estimations and assumptions on the carrying values of statement items that

cannot be accurately measured owing to uncertainties to which operating activities are

subject. Such judgements estimations and assumptions are made based on the past

experience of the management and taking into consideration of other relevant factors. Such

judgements estimations and assumptions affect the reported amounts of income

expenses assets and liabilities and the disclosure of contingent liabilities as at the balance

sheet date. However the actual outcome resulting from the uncertainty of such estimates

could be different from the current estimates of the management thereby resulting in

significant adjustments to the carrying value of the future assets or liabilities affected. The

Company regularly reviews such judgements estimations and assumptions on a going

concern basis. If the change in accounting estimates affects only the current period in

which the change occurs the affected amount is recognized for the period in which the

change occurs; if both the current period and future periods are affected the affected

amount is recognised for the current period and the future periods.At the balance sheet date important aspects in which the Company is required to make

judgements estimations and assumptions on the amount of items on the financial

statements are as follows:

* Estimated liabilities

The Company estimates and makes provision for product warranty and estimated

contract loss according to contract terms existing knowledge and historical

experience. When such contingencies have given rise to a present obligation and the

performance of such present obligation is likely to result in the outflow of economic

benefit from the Company the Company recognises estimated liabilities for the

contingencies based on the best estimates of expenses required for the performance

of relevant present obligations. The recognition and measurement of estimated

liabilities is dependent to a large extent on management judgement. In the course of

judgement the Company is required to assess factors such as risks uncertainties

146 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

and the time value of currency relating to such contingencies. In particular the

Company recognises estimated liabilities in respect of after-sales undertaking to

customers for return and replacement maintenance and installation of goods sold.The recognition of estimated liabilities has taken into account the maintenance

experience and data of the Company for recent years although past experience in

maintenance may not reflect maintenance in the future. Any increase or decrease in

this provision might affect the profit or loss of future years.* Provision for ECL

The Company measures ECL through default risk exposure and the ECL rate which

is determined based on the default probability rate and default loss rate. In

determining the ECL rate the Company uses data such as internal historic credit loss

experience and adjusts the historic data taking into consideration current conditions

and prospective information. When considering prospective information indicators

adopted by the Company include the risk of economic downside expected growth in

unemployment rate and changes in external market conditions technical conditions

and customer conditions. The Company monitors and reviews the assumptions

relating to ECL computation on a regular basis. There was no significant change to

aforesaid estimation technique and key assumptions during the year.* Impairment provisions for inventory

The Company makes impairment provisions for inventory of which cost is higher than

net realisable value and obsolete and slow-moving inventory based on the lower of

cost and net realisable value according to its inventory accounting policy. The

impairment of inventory to its net realisable value is based on assessment of the

sellability of inventory and its net realisable value. The authentication of inventory

impairment requires the management to obtain conclusive evidence and make

judgment and estimates taking into consideration factors such as the purpose of

inventory and post-balance sheet date events. Any difference between the actual

outcome and the previous estimate will affect the carrying value of inventory and the

charge or reversal of impairment provisions for inventory during the period in which

the estimates are modified.Haier Smart Home Co. Ltd. Interim Report 2025 147Section VIII Financial Report

* Fair value of financial instruments

For financial instruments without an active trading market the Company determines

its fair value using valuation techniques. Such valuation techniques include discounted

cash flow model analysis and others. During the assessment the Company is

required to make estimates on future cashflow credit risk market volatility rate and

relevance and select an appropriate discount rate. Such relevant assumptions are

subject to uncertainty and any change will affect the fair value of financial

instruments.* Impairment of other equity instrument investments

The Company’s determination of impairment for other equity instrument investments is

largely dependent on the management’s judgment and assumptions to determine

whether impairment should be recognised. In the course of making judgments and

assumptions the Company is required to assess the extent and duration of the fair

value of the investment being lower than cost as well as the financial conditions and

short-term business prospects of the investee including industry conditions

technological revolution credit rating default rate and counterparty risks.* Impairment provision for long-term assets

At the balance sheet date the Company assesses whether there are indications of

possible impairment of non-current assets other than financial assets. In addition to

the annual impairment test intangible assets with indefinite useful life are also tested

for impairment when there are indications of the same. Impairment tests on non-

current assets other than financial assets are conducted when there are indications

that its carrying value may not be recoverable. An impairment has occurred when the

carrying value of an asset or asset group is higher than the recoverable amount (the

higher of net fair value less disposal cost and the present value of estimated future

cash flow). The net fair value less disposal cost is determined with reference to the

agreed selling price of similar assets in a fair transaction or observable market prices

less incremental costs attributable directly to the disposal of such asset. In estimating

the present value of future cashflow significant judgement is required to be made in

respect of the production volume and selling price of the asset or (asset group)

relevant operating cost and discount rate for the computation of present value. The

Company takes into consideration all available relevant information when making

estimates on the recoverable amount including forecasts on production volume

selling price and relevant operating costs based on reasonable and justifiable

assumptions. The Company conducts goodwill impairment tests at least annually. This

requires estimates on the present value of future cashflow of asset group or portfolio

of asset groups to which goodwill has been allocated. When making estimates on the

present value of future cashflow the Company is required to make estimates on

cashflow generated from future asset group or portfolio of asset groups and at the

same time select an appropriate discount rate to determine the present value of

future cashflow.

148 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

* Depreciation and amortisation

Depreciation and amortisation of investment properties fixed assets and intangible

assets is charged on a straight-line basis over their useful life after taking their

residual values into account. The Company reviews the useful life on a regular basis

to determine the amount of depreciation and amortisation charge to be allocated to

each reporting period. The useful life is determined based on past experience relating

to similar assets taking into consideration expected technological upgrades. If there

are significant changes in previous estimates the depreciation and amortisation

charge for future periods will be adjusted.* Deferred income tax assets

The Company recognises deferred income tax assets in respect of all unutilised tax

losses to the extent that it is probable that sufficient taxable profit will be available to

offset the loss. This requires the exercise of significant judgement by the Company’s

management to estimate the timing and amount of future taxable profit taking into

account its tax planning strategy to determine the amount of deferred income tax

assets to be recognised.* Income tax

In the Company’s usual operating activities the final tax treatment and computation

of certain transactions are subject to uncertainty. Whether certain items can be

presented on a pretax basis is subject to approval of the competent taxation

authority. If the final confirmed outcome of such taxation matters is different from the

amount of the initial estimates such difference will affect the current income tax and

deferred income tax for the period of final confirmation.* Provision for sales rebate

The Company and its subsidiaries adopt a sales rebate policy for sales agent

customers. Based on relevant provisions of the sales agreements vetting of specific

transactions market conditions channel inventory level and past experience with

reference to the status of completion of agreed appraisal indicators by sales agent

customers the Company and its subsidiaries makes estimates on and provision for

sales rebate on a regular basis. The provision of sales rebate involves judgment and

estimation by the management. In the event of any material change in previous

estimates the aforesaid difference will affect the sales rebate for the period for which

the estimates are changed.

31. Changes in significant accounting policies and accounting estimation

√ Applicable □Not Applicable

In accordance with the Interpretation No. 18 of Accounting Standards for Business Enterprises

issued by the Ministry of Finance provision for the guarantee-type quality assurance expenses of

the Company are included in “Operating cost” instead of “Selling expenses”.Haier Smart Home Co. Ltd. Interim Report 2025 149Section VIII Financial Report

The Company adopted the retrospective approach to adjust the data of financial statements for

comparable periods accordingly and the effects of the above changes in accounting policies on

the consolidated income statement for the same period are as follows:

Statement Item Adjustment

Operating cost 4218830574.18

Selling expenses –4218830574.18

VI. TAXATION

1. Main tax categories and rates

Main tax categories and rates

√ Applicable □Not Applicable

Tax types Basis of taxation Tax rate

Value-added tax Taxable revenue from sales of goods 6% 9% 13%

and rendering services

(Local) education Circulation tax payable 1% 2% 3%

surcharge

City maintenance and Circulation tax payable 7%

construction tax

EIT Taxable income Statutory tax rate or

preferential rates as follows

2. Preferential tax

√ Applicable □Not Applicable

Companies subjected to preferential tax and preferential tax rate:

Company Tax rate Preferential tax

Qingdao Haier Refrigerator Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Special Refrigerator Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Dishwasher Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Special Freezer Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Intelligent Home Appliance 15.00% entitled to the preferential taxation

Technology Co. Ltd. policies as a hi-tech enterprise

Wuhan Haier Electronics Holding Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

150 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Company Tax rate Preferential tax

Wuhan Haier Freezer Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Hefei Haier Refrigerator Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Air Conditioner Gen Corp. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Hefei Haier Air-conditioning Co. Limited 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Zhengzhou Haier Air-conditioning Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Shenyang Haier Refrigerator Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Air-Conditioner Electronics Co. 15.00% entitled to the preferential taxation

Ltd. policies as a hi-tech enterprise

Qingdao Meier Plastic Powder Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Hai Gao Design and Manufacture Co. 15.00% entitled to the preferential taxation

Ltd. policies as a hi-tech enterprise

Qingdao Hairi High Technology Co. Ltd 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier (Jiaozhou) Air-conditioning Co. 15.00% entitled to the preferential taxation

Limited policies as a hi-tech enterprise

Qingdao Haier Intelligent Technology 15.00% entitled to the preferential taxation

Development Co. Ltd. policies as a hi-tech enterprise

Foshan Haier Freezer Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Central Air Conditioning Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Haier U+smart Intelligent Technology (Beijing) 15.00% entitled to the preferential taxation

Co. Ltd. policies as a hi-tech enterprise

Qingdao Haier Electronic Plastic Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Wei Xi Intelligent Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Special Refrigerating Appliance 15.00% entitled to the preferential taxation

Co. Ltd. policies as a hi-tech enterprise

Qingdao Haier Smart Kitchen Appliance Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Hefei Haier Air Conditioning Electronics Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Shanghai Haier Medical Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Shanghai Haier Smart Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Haier Smart Home Co. Ltd. Interim Report 2025 151Section VIII Financial Report

Company Tax rate Preferential tax

Qingdao Yunshang Yuyi IOT Technology Co. 15.00% entitled to the preferential taxation

Ltd. policies as a hi-tech enterprise

Haier (Shanghai) Home Appliance Research and 15.00% entitled to the preferential taxation

Development Center Co. Ltd. policies as a hi-tech enterprise

Haier (Shenzhen) R&D Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Laiyang Haier Smart Kitchen Appliance Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Guangdong Haier Intelligent Technology Co. Ltd 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Dalian Haier Refrigerator Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Jijia Cloud Intelligent Technology Co. 15.00% entitled to the preferential taxation

Ltd. policies as a hi-tech enterprise

Hefei Haier Washing Machine Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Washing Machine Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Laundry Appliances Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Foshan Shunde Haier Electric Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Tianjin Haier Cleaning Electrical Appliances Co. 15.00% entitled to the preferential taxation

Ltd. (天津海尔洗涤电器有限公司) policies as a hi-tech enterprise

Qingdao Economic and Technological 15.00% entitled to the preferential taxation

Development Zone Haier Water Heater Co. policies as a hi-tech enterprise

Ltd.Wuhan Haier Water Heater Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Foshan Haier Drum Washing Machine Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Strauss Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier New Energy Electric Appliance 15.00% entitled to the preferential taxation

Co. Ltd. policies as a hi-tech enterprise

Qingdao Haier Washing Appliance Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Lexin Cloud Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Hefei Haier Drum Washing Machine Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao Haier Smart Electrics Equipment Co. 15.00% entitled to the preferential taxation

Ltd. policies as a hi-tech enterprise

152 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Company Tax rate Preferential tax

Qingdao Haier Smart Living Appliance Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Qingdao RRS Lejia IoT Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Tonghai Energy Technology Development Co. 15.00% entitled to the preferential taxation

Ltd. (同海能源科技發展有限公司) policies as a hi-tech enterprise

Jiangxi Haier Medical Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Chongqing Haier Electrical Appliance Sales Co. 15.00% entitled to the preferential taxation

Ltd. and some Western companies policies under the Western

Development initiative of the PRC

Chongqing Haier Air-conditioning Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Chongqing Haier Refrigeration Appliance Co. 15.00% entitled to the preferential taxation

Ltd. policies under the Western

Development initiative of the PRC

Chongqing Haier Washing Machine Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Guizhou Haier Electronics Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Chongqing Hairishun Home Appliance Sales Co. 15.00% entitled to the preferential taxation

Ltd. and some Western companies policies under the Western

Development initiative of the PRC

Chongqing Haier Washing Machine Co. Ltd 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Chongqing Haier Water Heater Co. Ltd 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Chongqing Haier Drum Washing Machine Co. 15.00% entitled to the preferential taxation

Ltd policies under the Western

Development initiative of the PRC

Guizhou Peiji Logistics Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Central Asia Baofeng International Logistics Co. 15.00% entitled to the preferential taxation

Ltd. policies under the Western

Development initiative of the PRC

Haier Smart Home Co. Ltd. Interim Report 2025 153Section VIII Financial Report

Company Tax rate Preferential tax

Central Asia Baofeng International Logistics Co. 15.00% entitled to the preferential taxation

Ltd. Xi’an Branch policies under the Western

Development initiative of the PRC

Shenzhen Furunde Supply Chain Management 15.00% entitled to the preferential taxation

Co. Ltd. policies under the Western

Development initiative of the PRC

Gooday Supply Chain Technologies Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Haier Robotics Technology (Qingdao) Co. Ltd. 15.00% entitled to the preferential taxation

policies as a hi-tech enterprise

Guiyang Ririshun Logistics Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Xi’an Gooday Smart Supply Chain Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Chongqing Gooday Supply Chain Management 15.00% entitled to the preferential taxation

Co. Ltd. policies under the Western

Development initiative of the PRC

Qusong Tonghai Energy Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Linzhou Tonghai Energy Technology Co. Ltd. 15.00% entitled to the preferential taxation

policies under the Western

Development initiative of the PRC

Qingdao Haier Technology Co. Ltd. 10.00% entitled to the preferential taxation

policies as a key software

enterprise

154 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

VII. EXPLANATORY NOTES FOR ITEMS IN CONSOLIDATED FINANCIAL

STATEMENTS

Unless otherwise specified the following closing balances represent the amount as at 30 June 2025

and opening balances represent the amount as at 31 December 2024; amount for the period

represents the amount from 1 January to 30 June 2025 and amount for the previous period

represents the amount from 1 January to 30 June 2024.

1. Monetary funds

Items Closing balance Opening balance

Cash on hand 1685740.35 560953.91

Cash in bank 53646652252.87 54256005280.85

Other cash balances 1708764543.60 1340988388.07

Total 55357102536.82 55597554622.83

Include: total amount of overseas deposits 20946662922.06 21113746333.40

Deposit in Finance Company 20194208511.13 20565469130.81

Other monetary funds mainly included investment fund deposit on third party payment platforms

guarantees and other restricted fund etc.

2. Financial assets held for trading

Items Closing balance Opening balance

Short-term wealth management products 8317511328.41 746436121.40

Investments in equity instruments 183105112.16 195177368.77

Investment funds 314831875.05 294404349.36

Total 8815448315.62 1236017839.53

Haier Smart Home Co. Ltd. Interim Report 2025 155Section VIII Financial Report

3. Derivative financial assets

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Forward foreign exchange contracts 77736648.25 138404575.66

Cross-currency interest rate swaps 4254681.44

Forward commodity contracts 1628469.15 50459.81

Total 79365117.40 142709716.91

4. Bills receivable

(1) Details of bills receivable

Items Closing balance Opening balance

Bank acceptance notes 4970941573.88 10382273687.38

Commercial acceptance notes 1937657931.73 1798754865.96

Balance of bills receivable 6908599505.61 12181028553.34

Allowance for bad debts 987604.22 1171683.33

Bills receivable net 6907611901.39 12179856870.01

(2) Changes in allowance for bad debts of bills receivable in the current period

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for

the current Other Write-off/other

period movement Reversal movement

Allowance for bad debts 1171683.33 184079.11 987604.22

Total 1171683.33 184079.11 987604.22

The Company’s bills receivables were mainly generated from daily operation activities such

as sales of commodity provision of labor etc. and the allowance for bad debts was

measured based on expected credit loss over the entire duration whether there exist

significant financing components.The bills receivable pledged by the Company at the end of the period was

RMB2411049768.49 (amount at the beginning of the period: RMB5115222700.13).

156 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

5. Accounts receivable

(1) Accounts receivable are disclosed by aging as follows:

Aging Closing balance Opening balance

Within 1 year 30916671290.48 26234170508.25

1–2 years 657666795.64 689351514.18

2–3 years 359369408.62 388342245.65

Over 3 years 309571739.21 252055595.77

Balance of accounts receivable 32243279233.95 27563919863.85

Allowance for bad debts 1117482568.25 1069074353.29

Accounts receivable net 31125796665.70 26494845510.56

(2) By method of provision of allowance for bad debts

√ Applicable □ Not Applicable

Closing balance

Categories Book balance Allowance for bad debts Carrying value

Percentage of

Amount Percentage (%) Amount provision (%)

Account receivables subject to

provision for bad debts on

a separate basis 350826367.32 1.09 340572030.01 97.08 10254337.31

Account receivables subject to

provision for bad debts on

a collective basis 31892452866.63 98.91 776910538.24 2.44 31115542328.39

Total 32243279233.95 100.00 1117482568.25 3.47 31125796665.70

(continued)

Opening balance

Categories Book balance Allowance for bad debts Carrying value

Percentage of

Amount Percentage (%) Amount provision (%)

Account receivables subject to

provision for bad debts on

a separate basis 401873990.95 1.46 384907108.05 95.78 16966882.90

Account receivables subject to

provision for bad debts on

a collective basis 27162045872.90 98.54 684167245.24 2.52 26477878627.66

Total 27563919863.85 100.00 1069074353.29 3.88 26494845510.56

Haier Smart Home Co. Ltd. Interim Report 2025 157Section VIII Financial Report

(3) Account receivables subject to provision for bad debts on a separate basis at the end of

the period

√ Applicable □ Not Applicable

Unit and Currency: RMB

Closing balance Reason for provision

Allowance for Percentage of

Name Book balance bad debts provision (%)

44 customers in total 350826367.32 340572030.01 97.08 The obligors were in

significant financial

difficulty

Total 350826367.32 340572030.01 97.08 /

Explanation of provision for bad debts on a separate basis:

√ Applicable □ Not Applicable

The account receivables of significant individual amount and subject to provision for bad

debts on a separate basis at the end of the period was RMB195473905.66 (amount at the

beginning of the period: RMB195473905.66).

(4) Account receivables subject to provision for bad debts on a collective basis

√ Applicable □ Not Applicable

Aging Closing balance

Allowance for Percentage of

Book balance bad debts provision (%)

Within 1 year 30834777556.79 439252101.78 1.42

1–2 years 631096459.95 127175019.89 20.15

2–3 years 241746317.55 82424055.54 34.10

Over 3 years 184832532.34 128059361.03 69.28

Total 31892452866.63 776910538.24 2.44

158 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(continued)

Aging Opening balance

Allowance for Percentage of

Book balance bad debts provision (%)

Within 1 year 26106894301.60 389323682.89 1.49

1–2 years 659738683.37 100738283.50 15.27

2–3 years 181282912.23 60958005.85 33.63

Over 3 years 214129975.70 133147273.00 62.18

Total 27162045872.90 684167245.24 2.52

(5) Changes in allowance for bad debts of accounts receivable in the current period:

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for

the current Other Write-off/other

period movement Reversal movement

Allowance for bad debts 1069074353.29 108717671.67 53424844.11 6884612.60 1117482568.25

(6) The aggregate amount of the top 5 account receivables and contract assets as at the end

of the period was RMB6232723478.43 (amount at the beginning of the period:

RMB6775144962.81) accounting for 18.42% (at the beginning of the period: 23.65%) of

the book balance of account receivables and contract assets and the amount of provision

for bad debts was RMB45450462.85 (amount at the beginning of the period:

RMB18226518.24).

(7) Actual write-off of accounts receivable in the current period

The amount of accounts receivable actually written off in the current period was

RMB56324142.82 (amount for the corresponding period: RMB708946193.17) and the

amount of significant bad debt write-off of accounts receivable was RMB0.00.

(8) The Company’s accounts receivable that were terminated due to the transfer of financial

assets in the current period

The amount of accounts receivable that the company terminated at the end of the period

due to the transfer of financial assets was RMB7092705208.95 (amount at the beginning

of the period: RMB6095179589.77) and the transfer method was outright sale factoring.

(9) Restricted accounts receivable in the current period

The amount of accounts receivable restricted at the end of the period is RMB0.00 (amount

at the beginning of the period: RMB0.00).Haier Smart Home Co. Ltd. Interim Report 2025 159Section VIII Financial Report

6. Financing receivables

(1) Presentation by category

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Bills receivable 1115591707.01 235730229.72

Accounts receivable 132605741.33 177192385.53

Total 1248197448.34 412922615.25

(2) The amount of the Company’s pledged financing receivables at the end of the period is

RMB129036825.42 (amount at the beginning of the period: RMB0.00).

(3) Financing receivables at the end of the period that had been endorsed or discounted by the

Company and were not yet due at the balance sheet date

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amounts Amounts not

derecognized at derecognized at

the end of the end of

Items the period the period

Bills receivable 10658378486.25

Total 10658378486.25

(4) No provision for bad debts has been made for financing receivables during the period.

(5) There were no financing receivables written off during the period.

160 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

7. Prepayments

(1) Prepayments are presented by aging:

Aging Closing balance Opening balance

Amount Percentage Amount Percentage

Within 1 year 1766042471.00 94.44% 2319075168.29 97.16%

1–2 years 62002314.43 3.32% 43056825.13 1.80%

2–3 years 17620244.77 0.94% 8098753.24 0.34%

Over 3 years 24323435.95 1.30% 16669039.88 0.70%

Balance of prepayments 1869988466.15 100.00% 2386899786.54 100.00%

Provision for impairment of

prepayments 8754877.07 8755327.07

Net prepayments 1861233589.08 2378144459.47

(2) Provision for impairment

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for

the current Other Write-off/other

period movement Reversal movement

Provision for impairment 8755327.07 450.00 8754877.07

Total 8755327.07 450.00 8754877.07

(3) The total amount of the top 5 in the prepayments at the end of the period was

RMB383730344.99 accounting for 20.52% of the book balance of prepayment (amount at

the beginning of the period: RMB974866936.72 accounting for 40.84%).

(4) There was no significant prepayment aged over 1 year at the end of the period.

8. Other receivables

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Interest receivable 904741268.55 771591076.67

Other receivables 3324051801.89 2829766418.35

Total 4228793070.44 3601357495.02

Haier Smart Home Co. Ltd. Interim Report 2025 161Section VIII Financial Report

Interest receivable

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Within 1 year 379874423.51 374172658.71

1–2 years 339218399.38 316667022.35

2–3 years 184276615.52 80000932.60

Over 3 years 1371830.14 750463.01

Total 904741268.55 771591076.67

Other receivables

* Other receivables are disclosed by aging as follows:

Aging Closing balance Opening balance

Within 1 year 2635235474.03 2251224809.42

1–2 years 194411405.63 161728827.38

2–3 years 121693437.81 73549505.88

Over 3 years 435978580.19 392681572.53

Balance of other receivables 3387318897.66 2879184715.21

Allowance for bad debts 63267095.77 49418296.86

Other receivables net 3324051801.89 2829766418.35

* Provision of allowance for bad debts based on the general model of expected credit losses

Allowance for bad debts Stage 1 Stage 2 Stage 3 Total

Expected credit Lifetime expected Lifetime expected

losses for the credit losses (not credit losses

coming 12 months credit-impaired) (credit-impaired)

Opening balance 39245962.81 10172334.05 49418296.86

Provision for the current period 14477006.96 7576676.61 22053683.57

Reversal for the current period 5250344.17 5250344.17

Write-off and others for the current

period 2954540.49 2954540.49

Closing balance 45518085.11 17749010.66 63267095.77

162 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

* Changes in allowance for bad debt provision of other receivables in the current period

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for Write-off/

the current Other other

period movement Reversal movement

Allowance for bad debts 49418296.86 22053683.57 5250344.17 2954540.49 63267095.77

* The total amount of the top 5 other receivables at the end of the period was

RMB855104972.12 (amount at the beginning of the period: RMB1038763021.83)

accounting for 25.24% of the book balance of other receivables (at the beginning of the

period: 36.08%) and the amount of provision for bad debts was RMB0.00 (amount at the

beginning of the period: RMB0.00).* Other receivables written off during the period

The amount of other receivables actually written off in the current period was

RMB4122692.97 (amount for the corresponding period: RMB8107151.46) and no

significant other receivables were written off for bad debts.* Other receivables mainly included deposits quality guarantees employee loans tax refunds

and advance payments etc.

9. Inventories

(1) Details of inventories

Items Closing Balance

Impairment

provision of

Book balance inventories Carrying value

Raw materials 6699772457.36 255379870.71 6444392586.65

Work in progress 428109423.20 428109423.20

Finished goods 38209369513.57 1564598790.58 36644770722.99

Total 45337251394.13 1819978661.29 43517272732.84

Haier Smart Home Co. Ltd. Interim Report 2025 163Section VIII Financial Report

(Continue)

Items Opening Balance

Impairment

provision of

Book balance inventories Carrying value

Raw materials 6899891071.77 229902166.82 6669988904.95

Work in progress 388624719.50 388624719.50

Finished goods 37599053611.30 1467811537.79 36131242073.51

Total 44887569402.57 1697713704.61 43189855697.96

(2) Impairment provision of inventories

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for

the current Other Write-off/other

period movement Reversal movement

Raw materials 229902166.82 31908473.98 6430770.09 255379870.71

Work in progress

Finished goods 1467811537.79 433086565.54 336299312.75 1564598790.58

Total 1697713704.61 464995039.52 342730082.84 1819978661.29

(3) Details of impairment provision of inventories are as follows

Specific basis for Reason for reversing or

determining net writing off the impairment

Items realizable value provision of inventories

Raw materials Measurement at the lower Production use or sales

of cost and net realizable

value

Finished goods Measurement at the lower sales

of cost and net realizable

value

164 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

10. Contract assets

(1) Details

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing Balance Opening Balance

Allowance for Allowance for

Book balance bad debts Carrying value Book balance bad debts Carrying value

Relating to construction

service contract 1587563750.08 91404352.14 1496159397.94 1089472041.72 91508336.05 997963705.67

Total 1587563750.08 91404352.14 1496159397.94 1089472041.72 91508336.05 997963705.67

(2) Classification by method of provision for bad debts

Categories Closing balance

Book balance Allowance for bad debts Carrying value

Percentage of

Amount Percentage (%) Amount provision (%)

Contract assets subject to

provision for bad debts on

a separate basis 56845712.92 3.58 55755776.06 98.08 1089936.86

Contract assets subject to

provision for bad debts on

a collective basis 1530718037.16 96.42 35648576.08 2.33 1495069461.08

Total 1587563750.08 100.00 91404352.14 5.76 1496159397.94

(Continue)

Categories Opening balance

Book balance Allowance for bad debts Carrying value

Percentage of

Amount Percentage (%) Amount provision (%)

Contract assets subject to

provision for bad debts on

a separate basis 55755776.06 5.12 55755776.06 100.00

Contract assets subject to

provision for bad debts on

a collective basis 1033716265.66 94.88 35752559.99 3.46 997963705.67

Total 1089472041.72 100.00 91508336.05 8.40 997963705.67

Haier Smart Home Co. Ltd. Interim Report 2025 165Section VIII Financial Report

(3) Contract assets subject to provision for bad debts on a separate basis at the end

of the period

√ Applicable □ Not Applicable

Unit and Currency: RMB

Closing balance Reason for provision

Allowance for Percentage of

Name Book balance bad debts provision (%)

7 customers in total 56845712.92 55755776.06 98.08 The obligors were in

significant financial

difficulty

Total 56845712.92 55755776.06 98.08 /

(4) Contract assets subject to provision for bad debts on a collective basis at the end

of the period

√ Applicable □ Not Applicable

Unit and Currency: RMB

Name Closing balance

Allowance for Percentage of

Book balance bad debts provision (%)

Relating to construction

service contract 1530718037.16 35648576.08 2.33

Total 1530718037.16 35648576.08 2.33

(5) Provision for bad debts on contract assets during the current period

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for

the current Other Write-off/other

period movement Reversal movement

Relating to construction

service contract 91508336.05 103983.91 91404352.14

Total 91508336.05 103983.91 91404352.14

166 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

11. Non-current assets due within one year

Items Closing balance Opening balance

Debt investments due within one year 2307574005.86 1439758652.55

Total 2307574005.86 1439758652.55

Including: time deposit in finance company 1695536677.09 334466985.88

12. Other current assets

(1) Details

Items Closing Balance Opening Balance

Impairment Impairment

Book balance provision Book balance provision

Deductible taxes products 3353363884.61 3618407941.29

Short-term deposits 115221674.82 491724709.59

Returns cost receivables 590584931.58 279221989.21 566481435.22 281079517.50

Entrusted loans 496677379.89

Others 53975945.37 47739469.43

Total 4609823816.27 279221989.21 4724353555.53 281079517.50

(2) Impairment provision

Opening Increase for Decrease for Closing

Items balance the current period the current period balance

Provision for

the current Other Write-off/other

period movement Reversal movement

Returns cost receivables 281079517.50 279221989.21 281079517.50 279221989.21

Total 281079517.50 279221989.21 281079517.50 279221989.21

(3) Time deposit in Finance Company was RMB115221674.82 at the end of the period.

13. Debt investments

Items Closing balance Opening balance

Principal Interest Principal Interest

Time deposit -long term 16142500000.00 755992337.28 16292500000.00 622018509.54

Less: Debt investments due within

one year 2187500000.00 120074005.86 1327500000.00 112258652.55

Total 13955000000.00 635918331.42 14965000000.00 509759856.99

Include: time deposit in

Finance Company 12065000000.00 583553482.11 12605000000.00 448060172.04

Haier Smart Home Co. Ltd. Interim Report 2025 167Section VIII Financial Report

14. Long-term equity investments

√ Applicable □ Not Applicable

Investees Increase/decrease for the current period

Adjustment in

Investment income other Declaration of

Investment recognized under comprehensive Other changes in cash dividends or

Opening balance increase equity method income equity profits

Associate：

Haier Group Finance Co. Ltd. 8219298837.87 377480635.87 –691.01 –235200000.00

Bank of Qingdao Co. Ltd. 3473162128.86 222430213.11 144943528.84 — –76288906.40

Wolong Electric (Jinan) Motor Co. Ltd. 198467631.66 14338896.00 –15000000.00

Qingdao Hegang New Material

Technology Co. Ltd. 342315345.52 6843983.51 — –4186865.40

Qingdao Haier SAIF Smart Home

Industry Investment Center (Limited

Partnership) 191276594.86 — —

Mitsubishi Heavy Industries Haier

(Qingdao) Air-conditioners Co. Ltd. 698845993.61 71576418.84 —

Qingdao Haier Multimedia Co. Ltd. 88300000.00

Baoshihua Energy Technology Co. Ltd.(宝石花能源科技有限公司)31132443.76–1409295.17

Zhengzhou Highly Electric Appliance

Co. Ltd. (鄭州海立电器有限公司) 98560581.01

Zhejiang Futeng Fluid Technology

Co. Ltd. 73460549.11

Hongtong Environmental Technology

(Guangzhou) Co. Ltd. (宏通環境技術（廣州）有限公司)6464386.26

Qingdao Haimu Investment

Management Co. Ltd. 2692755.00

Qingdao Haimu Smart Home

Investment Partnership (Limited

Partnership) 56749040.79

Qingdao Guochuang Intelligent Home

Appliance Research Institute Co.Ltd. 40920413.54 2015812.22

Guangzhou Heying Investment

Partnership (Limited Partnership) 132620094.53

Qingdao Home Wow Cloud Network

Technology Co. Ltd. 1083682.47 –1108867.33

Bingji (Shanghai) Corporate

Management Co. Ltd. 1095450007.15 27395141.18

Shangang Luhai International Logistics

(Jinan) Co. Ltd. (山港陆海国际物流（济南）有限公司)58941327.061047222.88

Haier Best Water Technology Co. Ltd. 148369638.40 2124281.52

Huizhixiangshun Equity Investment Fund

(Qingdao) Partnership (Limited

Partnership) 188907510.60

Qingdao Ririshun Huizhi Investment

Co. Ltd. 4083482.78

Qingdao Xiaoshuai Intelligent

Technology Co. Ltd 9578046.65 2125935.87

Qingdao Xinshenghui Technology Co.Ltd. 11365227.21 599131.76

168 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Investees Increase/decrease for the current period

Adjustment in

Investment income other Declaration of

Investment recognized under comprehensive Other changes in cash dividends or

Opening balance increase equity method income equity profits

Ningbo Beilian Intelligent Technology

Co. Ltd. (宁波贝立安智能科技有限

公司)3724499.78–236575.45

Qingdao Oriental Haisheng Technology

Co. Ltd. (青岛東方海盛科技有限

公司)9980000.00

Konan Electronic Co. Ltd. 59415065.89 –2439536.52 4305373.50 –218290.50

HNR (Private) Company Limited 140530747.42 34169113.58 –5099023.40

HPZ LIMITED 11203257.77 — —

Controladora Mabe S.A. de C.V. 5638478867.77 126143371.74 –112929878.77 –8251636.94 –80024194.29

Middle East Air conditioning Company

Limited 7389990.91 –2260730.88 –458145.29

Total 21032788148.24 9980000.00 882244447.90 30761163.87 –8251636.94 –412327551.76

(Continued)

Closing balance of

Investees Increase/decrease for the current period Closing balance impairment provision

The disposal of

Other movement the investment

Associate：

Haier Group Finance Co. Ltd. 8361578782.73

Bank of Qingdao Co. Ltd. 3764246964.41

Wolong Electric (Jinan) Motor Co. Ltd. 197806527.66

Qingdao Hegang New Material

Technology Co. Ltd. 344972463.63

Qingdao Haier SAIF Smart Home

Industry Investment Center (Limited

Partnership) 191276594.86

Mitsubishi Heavy Industries Haier

(Qingdao) Air-conditioners Co. Ltd. 770422412.45

Qingdao Haier Multimedia Co. Ltd. 88300000.00 –88300000.00

Baoshihua Energy Technology Co. Ltd.(宝石花能源科技有限公司)29723148.59

Zhengzhou Highly Electric Appliance

Co. Ltd. (鄭州海立电器有限公司) 98560581.01

Zhejiang Futeng Fluid Technology

Co. Ltd. 73460549.11

Hongtong Environmental Technology

(Guangzhou) Co. Ltd. (宏通環境技術（廣州）有限公司)6464386.26

Qingdao Haimu Investment

Management Co. Ltd. 2692755.00

Qingdao Haimu Smart Home Investment

Partnership (Limited Partnership) 56749040.79

Haier Smart Home Co. Ltd. Interim Report 2025 169Section VIII Financial Report

Closing balance of

Investees Increase/decrease for the current period Closing balance impairment provision

The disposal of

Other movement the investment

Qingdao Guochuang Intelligent Home

Appliance Research Institute Co.Ltd. 42936225.76

Guangzhou Heying Investment

Partnership (Limited Partnership) 132620094.53

Qingdao Home Wow Cloud Network

Technology Co. Ltd. –25184.86

Bingji (Shanghai) Corporate

Management Co. Ltd. 1122845148.33

Shangang Luhai International Logistics

(Jinan) Co. Ltd. (山港陆海国际物流（济南）有限公司)–108598.9759879950.97

Haier Best Water Technology Co. Ltd. 150493919.92

Huizhixiangshun Equity Investment Fund

(Qingdao) Partnership (Limited

Partnership) –17011435.35 171896075.25

Qingdao Ririshun Huizhi Investment Co.Ltd. 4083482.78

Qingdao Xiaoshuai Intelligent

Technology Co. Ltd 11703982.52

Qingdao Xinshenghui Technology Co.Ltd. 11964358.97

Ningbo Beilian Intelligent Technology

Co. Ltd. (宁波贝立安智能科技有限

公司)3487924.33

Qingdao Oriental Haisheng Technology

Co. Ltd. (青岛東方海盛科技有限

公司)9980000.00

Konan Electronic Co. Ltd. 61062612.37

HNR (Private) Company Limited 169600837.60

HPZ LIMITED 11203257.77 –11203257.77

Controladora Mabe S.A. de C.V. 5563416529.51

Middle East Airconditioning Company

Limited –4671114.74

Total –21791149.06 21513403422.25 –99503257.77

170 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

15. Investments in other equity instruments

(1) Details of investments in other equity instruments at the end of the period:

Items Closing balance Opening balance

SINOPEC Fuel Oil Sales Corporation Limited 1328800000.00 1674427670.51

Haier COSMO IOT Ecosystem Technology

Co. Ltd. 2795887119.07 2786307000.00

Others 1525469132.18 1612946200.31

Total 5650156251.25 6073680870.82

(2) Dividends from investment in other equity instruments during the current period:

Amount for the

Items current period

Others 3225726.29

Total 3225726.29

16. Investment properties

(1) The changes in investment properties measured at cost this year are as follows:

Houses and

Items buildings Land use rights Total

I. Original book value

1. Opening balance 162700718.91 108900075.76 271600794.67

2. Increase for the current period

(1) External acquisition 214599883.20 214599883.20

(2) Intangible asset/fixed assets/

construction in progress

transferred in 191660227.89 191660227.89

(3) Increase from business

combinations

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Other transferring out

4. Change in foreign exchange rate

and others 17269237.18 17269237.18

5. Closing balance 586230067.18 108900075.76 695130142.94

Haier Smart Home Co. Ltd. Interim Report 2025 171Section VIII Financial Report

Houses and

Items buildings Land use rights Total

II. A ccumulated depreciation and

accumulated amortization

1. Opening balance 19258789.34 6180745.50 25439534.84

2. Increase for the current period

(1) Provision or amortization 3238920.77 292591.07 3531511.84

(2) Intangible asset/fixed assets/

construction in progress

transferred in 574600.56 574600.56

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Other transferring out

4. Change in foreign exchange rate

and others 207093.85 207093.85

5. Closing balance 23279404.52 6473336.57 29752741.09

III. Provision for impairment

1. Opening balance

2. Increase for the current period

(1) Provision

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Other transferring out

4. C hange in foreign exchange rate

and others

5. Closing balance

IV. Book value

1. Closing book value 562950662.66 102426739.19 665377401.85

2. Opening book value 143441929.57 102719330.26 246161259.83

(2) The depreciation and amortization amount charge for the period is RMB3531511.84 (amount

for the corresponding period: RMB2084840.88).

(3) The recoverable amount of the investment real estate of the Company at the end of the

period is not less than its book value so no provision for impairment is made.

172 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

17. Fixed assets

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Fixed assets 38733351465.18 37613215769.46

Total 38733351465.18 37613215769.46

(1) Fixed assets:

Houses and Production Transportation

Items buildings equipment equipment

I. Original book value:

1. Opening balance 23587425943.99 39983465124.95 282740896.81

2. Increase for the current period

(1) Acquisition 19579747.22 363026991.03 3553499.21

(2) Construction in progress

transferred in 1311473701.82 1212516592.93 15834494.14

(3) Increase in business

combinations

(4) Investment properties

transferred in

3. Decrease for the current period

(1) Disposal or write-off 187771425.53 456000308.57 14132509.90

(2) Disposal of subsidiaries

(3) T ransfer to investment

properties 191660227.89

4. Change in foreign exchange rate

and others 576231484.63 519106432.99 15281247.26

5. Closing balance 25115279224.24 41622114833.33 303277627.52

II. Accumulated depreciation

1. Opening balance 7079072646.10 21078671488.71 161340026.39

2. Increase for the current period

(1) Provision 544248174.34 1670014498.41 21976770.00

(2) I nvestment properties

transferred in

3. Decrease for the current period

(1) Disposal or write-off 76124981.15 354877165.74 6928570.79

(2) Disposal of subsidiaries

(3) Transfer to investment

properties 574600.56

4. Change in foreign exchange rate

and others 102890975.29 199092965.34 6037374.50

5. Closing balance 7649512214.02 22592901786.72 182425600.10

Haier Smart Home Co. Ltd. Interim Report 2025 173Section VIII Financial Report

Houses and Production Transportation

Items buildings equipment equipment

III. Provision for impairment

1. Opening balance 42187643.34 17624919.83 105101.78

2. Increase for the current period

(1) Provision

(2) Investment properties

transferred in

3. Decrease for the current period

(1) Disposal or write-off 15847683.49 1708197.46 78319.36

(2) Disposal of subsidiaries

(3) T ransfer to investment

properties

4. Change in foreign exchange rate

and others 1664391.35 334943.59 1982.35

5. Closing balance 28004351.20 16251665.96 28764.77

IV. Book value

1. Closing book value 17437762659.02 19012961380.65 120823262.65

2. Opening book value 16466165654.55 18887168716.41 121295768.64

(Continue)

Items Office furniture Others Total

I. Original book value:

1. Opening balance 1866237560.00 3564759601.87 69284629127.62

2. Increase for the current period

(1) Acquisition 20546040.73 450588.77 407156866.96

(2) C onstruction in progress

transferred in 88896896.04 120084199.19 2748805884.12

(3) Increase in business

combinations

(4) I nvestment properties

transferred in

3. Decrease for the current period

(1) Disposal or write-off 72935367.28 155134680.58 885974291.86

(2) Disposal of subsidiaries

(3) Transfer to investment

properties 191660227.89

4. Change in foreign exchange rate

and others 145846374.30 163116974.53 1419582513.71

5. Closing balance 2048591503.79 3693276683.78 72782539872.66

174 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Items Office furniture Others Total

II. Accumulated depreciation

1. Opening Balance 1091419033.13 2198543345.96 31609046540.29

2. Increase for the current period

(1) Provision 120671021.82 159543528.56 2516453993.13

(2) Investment properties

transferred in

3. Decrease for the current period

(1) Disposal or write-off 64369294.86 108606377.69 610906390.23

(2) Disposal of subsidiaries

(3) Transfer to investment

properties 574600.56

4. Change in foreign exchange rate

and others 66440830.74 113796374.71 488258520.58

5. Closing Balance 1214161590.83 2363276871.54 34002278063.21

III. Provision for impairment

1. Opening balance 209527.14 2239625.78 62366817.87

2. Increase for the current period

(1) Provision

(2) I nvestment properties

transferred in

3. Decrease for the current period

(1) Disposal or write-off 5323.23 14269.95 17653793.49

(2) Disposal of subsidiaries

(3) T ransfer to investment

properties

4. Change in foreign exchange rate

and others 14684.17 181318.43 2197319.89

5. Closing balance 218888.08 2406674.26 46910344.27

IV. Book value

1. Closing book value 834211024.88 1327593137.98 38733351465.18

2. Opening book value 774608999.73 1363976630.13 37613215769.46

(2) In the current period the balance of the construction in progress transferred to the original

value of the fixed assets in a total of RMB2748805884.12 (amount for the corresponding

period: RMB2107328131.20).

(3) As at 30 June 2025 the net book value of the buildings for which the Company has not yet

obtained certificates of title was RMB71 million (amount at the beginning of the period

RMB396 million) and the relevant certificates of title were being processed. The Company

can legally and effectively occupy and operate the above-mentioned buildings for which no

certificates of title have been obtained.

(4) The amount of mortgage secured by the fixed assets mortgage at the end of the period was

RMB31825255.89 and there was no mortgage secured by the fixed assets mortgage at

the beginning of the period.Haier Smart Home Co. Ltd. Interim Report 2025 175Section VIII Financial Report

18. Construction in progress

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing Balance Opening Balance

Construction in progress 5677443291.08 5686050990.48

Total 5677443291.08 5686050990.48

(1) Balance of construction in progress

√ Applicable □ Not Applicable

Unit and Currency: RMB

Projects Closing Balance Opening Balance

Impairment Impairment

Book balance Provision Book Value Book balance provision Book Value

Qingdao Water Ecology

Technology Project 1107019900.03 1107019900.03 1066513889.60 1066513889.60

New Zealand FPA Project 774202009.02 774202009.02 404446522.30 404446522.30

Qingdao Refrigeration

Appliance Project 604379654.55 604379654.55 598424118.21 598424118.21

Qingdao HV Equipment

Project 332086933.65 332086933.65 760657151.21 760657151.21

Haier Thailand Project 316627436.01 316627436.01 94645094.35 94645094.35

America GE Appliances

Project 165078821.53 24711494.86 140367326.67 255332644.93 24814364.49 230518280.44

Europe Candy Project 130621013.23 130621013.23 195308817.72 195308817.72

Qingdao Haishi IoT

Technology Project 117647025.54 117647025.54 74638984.28 74638984.28

Haier India Project 103944468.67 103944468.67 29688644.93 29688644.93

Eastern European Project 103746218.69 2611599.07 101134619.62 134970342.86 1890763.38 133079579.48

Others 1950250639.94 837735.85 1949412904.09 2098967643.81 837735.85 2098129907.96

Total 5705604120.86 28160829.78 5677443291.08 5713593854.20 27542863.72 5686050990.48

176 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(2) Details of changes of significant construction in progress for the current period

Change in

Transfer to foreign

Opening Increase for the Transfer to fixed investment exchange rate

Project name balance current period assets properties and others Closing balance Source of fund

Qingdao Water Ecology Technology

Project 1066513889.60 73840906.03 33334895.60 1107019900.03 Self-funding

New Zealand FPA Project 404446522.30 403328632.37 71591550.85 38018405.20 774202009.02 Self-funding

Qingdao Refrigeration Appliance Project 598424118.21 231071301.37 225115765.03 604379654.55 Self-funding

Qingdao HV Equipment Project 760657151.21 110792017.76 539362235.32 332086933.65 Self-funding

Haier Thailand Project 94645094.35 218630522.36 3351819.30 316627436.01 Self-funding

America GE Appliances Project 255332644.93 130126099.16 219594881.75 –785040.81 165078821.53 Self-funding

Europe Candy Project 195308817.72 50773226.31 130994895.37 15533864.57 130621013.23 Self-funding

Qingdao Haishi IoT Technology Project 74638984.28 43008041.26 117647025.54 Self-funding

Haier India Project 29688644.93 131357635.68 56980042.05 –121769.89 103944468.67 Self-funding

Eastern European Project 134970342.86 66921762.68 103625833.16 5479946.31 103746218.69 Self-funding

Others 2098967643.81 1201876571.09 1368205784.99 17612210.03 1950250639.94 Self-funding

Total 5713593854.20 2661726716.07 2748805884.12 79089434.71 5705604120.86

(3) Impairment provision of construction in progress

Change in

Increase for foreign

Opening the current Transfer to Other exchange rate Closing

Project name balance period fixed assets decrease and others balance

America GE Appliances Project 24814364.49 –102869.63 24711494.86

Eastern European Project 1890763.38 720835.69 2611599.07

Lejia IOT Project 837735.85 837735.85

Total 27542863.72 617966.06 28160829.78

Haier Smart Home Co. Ltd. Interim Report 2025 177Section VIII Financial Report

19. Right-of-use assets

Houses and Production Transportation

Items buildings equipment equipment

I. Original book value:

1. Opening balance 7414325184.86 424335480.27 287794375.66

2. Increase for the current period

(1) Acquisition 839125111.44 69060505.50 66554028.46

(2) Increase from business

combinations

3. Decrease for the current period

(1) Disposal 442834662.97 4906292.42 21136622.99

(2) Disposal of subsidiaries

4. Change in foreign exchange rate and

others 380810924.40 9998146.43 7050297.26

5. Closing balance 8191426557.73 498487839.78 340262078.39

II. Accumulated depreciation

1. Opening balance 2728106200.79 72300559.30 141273353.79

2. Increase for the current period

(1) Provision 623087733.49 32380649.79 47860539.92

3. Decrease for the current period

(1) Disposal 404315509.20 136499.46 23315553.70

(2) Disposal of subsidiaries

4. Change in foreign exchange rate and

others 194441487.85 –829925.81 1983091.56

5. Closing balance 3141319912.93 103714783.82 167801431.57

III. Impairment provision

1. Opening balance

2. Increase for the current period

(1) Provision

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

4. Change in foreign exchange rate and

others

5. Closing balance

IV. Book Value

1. Closing book balance 5050106644.80 394773055.96 172460646.82

2. Opening book balance 4686218984.07 352034920.97 146521021.87

178 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(continued)

Items Office furniture Other Total

I. Original book value:

1. Opening balance 407420134.04 624841431.90 9158716606.73

2. Increase for the current period

(1) Acquisition 748444.05 86884036.47 1062372125.92

(2) Increase from business

combinations

3. Decrease for the current period

(1) Disposal 4371913.63 22099005.23 495348497.24

(2) Disposal of subsidiaries

4. Change in foreign exchange rate and

others 34204873.15 –2768491.58 429295749.66

5. Closing balance 438001537.61 686857971.56 10155035985.07

II. Accumulated depreciation

1. Opening balance 65901643.86 309265284.63 3316847042.37

2. Increase for the current period

(1) Provision 22726847.88 45259244.86 771315015.94

3. Decrease for the current period

(1) Disposal 4371913.63 17842283.50 449981759.49

(2) Disposal of subsidiaries

4. Change in foreign exchange rate and

others –1776008.63 –1347868.82 192470776.15

5. Closing balance 82480569.48 335334377.17 3830651074.97

III. Impairment provision

1. Opening balance

2. Increase for the current period

(1) Provision

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

4. Change in foreign exchange rate and

others

5. Closing balance

IV. Book Value

1. Closing book balance 355520968.13 351523594.39 6324384910.10

2. Opening book balance 341518490.18 315576147.27 5841869564.36

Haier Smart Home Co. Ltd. Interim Report 2025 179Section VIII Financial Report

20. Intangible assets

(1) Intangible assets

√ Applicable □ Not Applicable

Proprietary Licenses and

Items technology franchises Land use rights

I. Original book value

1. Opening balance 2233838691.22 5045290131.23 3896750377.76

2. Increase for the current period

(1) Acquisition 15352.56 76419471.62

(2) Internal research and development 69980046.81

(3) Increase from business combinations

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Transfer to investment properties

4. Change in foreign exchange rate and

others 77544677.40 61765460.62 13484758.08

5. Closing balance 2381363415.43 5107070944.41 3986654607.46

II. Accumulated amortization

1. Opening balance 1544511772.33 1379799620.89 611504507.21

2. Increase for the current period

(1) Provision 99291747.05 97138585.99 43433194.20

(2) Increase from business combinations

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Transfer to investment properties

4. Change in foreign exchange rate and

others 43977809.69 41997286.23 –294664.59

5. Closing balance 1687781329.07 1518935493.11 654643036.82

III. Impairment provision

1. Opening balance 67588227.33

2. Increase for the current period

(1) Provision

(2) Increase from business combinations

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Transfer to investment properties

4. Change in foreign exchange rate and

others –270053.18

5. Closing balance 67318174.15

IV. Book Value

1. Closing book balance 693582086.36 3520817277.15 3332011570.64

2. Opening book balance 689326918.89 3597902283.01 3285245870.55

180 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(continued)

Application

management

Customer software and

Items Trademark rights relationship others Total

I. Original book value

1. Opening balance 2771507897.39 1635555560.33 7212821183.79 22795763841.72

2. Increase for the current period

(1) Acquisition 241792911.97 318227736.15

(2) Internal research and development 213256003.90 283236050.71

(3) Increase from business combinations

3. Decrease for the current period

(1) Disposal 9227469.01 9227469.01

(2) Disposal of subsidiaries

(3) Transfer to investment properties

4. C hange in foreign exchange rate and

others 194757505.82 164784826.85 181286504.86 693623733.63

5. Closing balance 2966265403.21 1800340387.18 7839929135.51 24081623893.20

II. Accumulated amortization

1. Opening balance 34235166.67 184372755.73 4907168057.06 8661591879.89

2. Increase for the current period

(1) Provision 6364943.11 39682709.36 430109734.49 716020914.20

(2) Increase from business combinations

3. Decrease for the current period

(1) Disposal 5590363.48 5590363.48

(2) Disposal of subsidiaries

(3) Transfer to investment properties

4. Change in foreign exchange rate and

others 171759.18 13858214.93 63909422.63 163619828.07

5. Closing balance 40771868.96 237913680.02 5395596850.70 9535642258.68

III. Impairment provision

1. Opening balance 23643666.33 91231893.66

2. Increase for the current period

(1) Provision

(2) Increase from business combinations

3. Decrease for the current period

(1) Disposal

(2) Disposal of subsidiaries

(3) Transfer to investment properties

4. C hange in foreign exchange rate and

others –270053.18

5. Closing balance 23643666.33 90961840.48

IV. Book Value

1. Closing book balance 2925493534.25 1562426707.16 2420688618.48 14455019794.04

2. Opening book balance 2737272730.72 1451182804.60 2282009460.40 14042940068.17

(2) At the end of the period the intangible assets developed through the Company accounted

for the 18.92% of the original value at the end of the period (accounting for 18.63% at the

beginning of the period).

(3) The amount of intangible assets pledged at the end of the period was RMB96501464.38

and the amount of intangible assets pledged at the beginning of the period was

RMB97328830.10.Haier Smart Home Co. Ltd. Interim Report 2025 181Section VIII Financial Report

21. Goodwill

Change in foreign

Increase for the Decrease for the exchange rate

Items Opening balance current period current period and others Closing balance

GEA 21360922505.97 –89241338.93 21271681167.04

Candy 1946245938.72 226726259.94 2172972198.66

CCR 2141379302.22 232115027.75 2373494329.97

Others 1935459852.15 81018589.22 2016478441.37

Total 27384007599.06 450618537.98 27834626137.04

In the case of a goodwill impairment test the Company compares the carrying amount of the

relevant asset group or asset group combination (including goodwill) with its recoverable amount.If the recoverable amount is less than the book value corresponding difference will be

recognized in profit or loss.The recoverable amount of the asset group (including goodwill) is calculated with discounted

estimated future cash flow method based on a management-approved 5–15 years budget. Future

cash flows beyond the budget period are estimated using the estimated perpetual annual growth

rate. The perpetual annual growth rate (mainly 1.5%–2.0%) adopted by the management is

consistent with industry forecast data and does not exceed the long-term average growth rate of

each product. The management determines the compound income growth rate (mainly 2.58%-

9.39%) and the EBITDA profit margin (mainly –0.51%–10.57%) based on historical experience and

market development forecasts and adopts the pre-tax interest rate that can reflect the specific

risks of the relevant asset group as the discount rate (mainly 10.31%–12.63%). The management

analyzes the recoverable amount of each asset group based on these assumptions and believes

that there is no need to make provision for goodwill.

182 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

22. Long-term amortized expenses

Change in

Amortization foreign

Increase for the for the current Other exchange rate

Items Opening balance current period period decrease and others Closing balance

Renovation fees 204123378.57 121469346.01 125473432.01 350013.36 200469305.93

Improvement expenses on leased

plants 199983171.28 33148047.57 22329737.35 2063522.61 212865004.11

Others 194109883.79 26512021.22 31096899.56 1876505.43 191401510.88

Total 598216433.64 181129414.80 178900068.92 4290041.40 604735820.92

23. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets before elimination

Items Closing balance Opening balance

Provision for assets impairment 691981589.67 601791456.35

Liabilities 3154339908.57 3015752813.85

Internal unrealized earnings eliminated due to

combination 588137302.88 887557367.83

Uncovered losses 216845200.00 248331903.96

R&D expenses 1627294523.53 1523977439.36

Others 627274920.57 620466885.20

Total 6905873445.22 6897877866.55

(2) Deferred income tax liabilities before elimination

Items Closing balance Opening balance

Assets amortisation 4972767171.56 4823267766.46

Remeasurement of fair value of the reaming

equity on the day when the control right

was lost 374198127.62 374198127.62

Changes in fair value of investments in other

equity instruments 301824503.26 301550087.64

Others 439314164.38 468942561.47

Total 6088103966.82 5967958543.19

(3) The deferred income tax assets and the deferred income tax liabilities eliminated at the end

of the period was RMB4464351533.78 (amount at the beginning of the period

RMB4420671374.19).Haier Smart Home Co. Ltd. Interim Report 2025 183Section VIII Financial Report

24. Other non-current assets

Items Closing balance Opening balance

Prepayments for equipment and land 1247083649.62 1381218293.01

Others 411266775.25 378338600.62

Total 1658350424.87 1759556893.63

25. Short-term borrowings

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Borrowings — secured by pledge 68435097.93 46809229.31

Borrowings — secured by guarantee 161714550.04 466702681.40

Borrowings — secured by credit 15868184989.27 13270855533.22

Borrowings — secured by mortgage and

guarantee 29280000.00

Total 16127614637.24 13784367443.93

26. Derivative financial liabilities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Forward foreign exchange contracts 440096398.09 71011310.01

Total 440096398.09 71011310.01

27. Bills payable

√ Applicable □ Not Applicable

Unit and Currency: RMB

Types Closing balance Opening balance

Commercial acceptance notes 11258358504.79 8488327100.21

Bank acceptance notes 14150129961.20 12732037211.60

Total 25408488465.99 21220364311.81

184 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

28. Accounts payables

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Accounts payables 53257299256.55 54665277420.32

Total 53257299256.55 54665277420.32

The book balance at the end of the period was mainly the unpaid expenditures on material and

labour. There were no significant accounts payables aged over 1 year at the end of the period.

29. Contract liabilities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Contract liabilities 5710603667.36 10865337767.67

Total 5710603667.36 10865337767.67

The book balance at the end of the period was mainly due to the advance payment that has

been collected and has not yet performed the contractual obligations. There were no significant

contract liabilities aged over 1 year at the end of the period.Haier Smart Home Co. Ltd. Interim Report 2025 185Section VIII Financial Report

30. Payables for staff remuneration

√ Applicable □ Not Applicable

(1) Payables for staff remuneration

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

I. Short-term remuneration 4970397275.48 17034336515.06 17693216743.16 4311517047.38

II. Post-employment benefits

defined contribution plan 24053768.47 1273899140.40 1241280437.44 56672471.43

III. Termination benefits 17767282.21 46810377.72 28121598.54 36456061.39

IV. Other benefits due within

one year 45041951.83 0.00 11251884.73 33790067.10

Total 5057260277.99 18355046033.18 18973870663.87 4438435647.30

(2) Short-term remuneration

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

I. Salaries bonus allowances and

benefit 3486859330.29 13024898003.46 13752801891.35 2758955442.40

II. Employee welfare 387478465.49 595540683.42 561111371.56 421907777.35

III. Social benefit 266622546.55 917334162.94 903782280.67 280174428.82

IV. Housing fund 5690085.85 322195513.20 303836297.64 24049301.41

V. L abor union fee and education

fund 13453646.86 77883367.29 72892482.50 18444531.65

VI. Short-term compensated leave 278959789.45 289158119.51 309380283.53 258737625.43

VII. Others 531333410.99 1807326665.24 1789412135.91 549247940.32

Total 4970397275.48 17034336515.06 17693216743.16 4311517047.38

186 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(3) Defined contribution plan

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

1. Basic pension insurance 22019009.13 1213177585.15 1182699270.41 52497323.87

2. Unemployment insurance 384540.87 23027096.51 22441034.34 970603.04

3. Enterprise annuity payment 1650218.47 37694458.74 36140132.69 3204544.52

Total 24053768.47 1273899140.40 1241280437.44 56672471.43

(4) Termination benefits

Items Closing balance Opening balance

Termination compensation 36456061.39 17767282.21

Total 36456061.39 17767282.21

31. Taxes payable

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Value-added tax 1080794130.97 961504803.99

Corporate income tax 2207094090.18 2649673418.47

Individual income tax 98361951.41 127574718.36

City maintenance and construction tax 32038914.11 40152216.35

Education surcharge 16327025.64 16711119.94

Other taxes 173993404.07 119603639.06

Total 3608609516.38 3915219916.17

Haier Smart Home Co. Ltd. Interim Report 2025 187Section VIII Financial Report

32. Other payables

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Dividends payable 8995192390.93 14082609.41

Other payables 21245355039.98 21732053154.67

Total 30240547430.91 21746135764.08

(1) Dividends payable

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Haier COSMO Co. Ltd. 1214681202.55

Haier Group Corporation 1035112291.69

Other public shareholders 6745398896.69 14082609.41

Total 8995192390.93 14082609.41

(2) Other payables

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Other payables 21245355039.98 21732053154.67

Total 21245355039.98 21732053154.67

The closing balance mainly included the incurred but unpaid costs. There were no

significant other payables aged over 1 year at the end of the period.

188 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

33. Non-current liabilities due within one year

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Long-term borrowings due within one year 6915081823.51 10365227785.72

Lease liabilities due within one year 1529016877.33 1352476354.94

Estimated liabilities due within one year 2633982143.94 2710430236.34

Long term payables due within one year 44950023.28 50806318.73

Non-current liabilities due within one year 14282930.74 2051099765.64

Bonds interest payable due within one year 11471250.00

Total 11148785048.80 16530040461.37

34. Other current liabilities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Payable refund 637978483.14 624122847.31

Tax amount to be transferred to output tax 715726430.19 1134910313.73

Others 115030454.66 140912299.35

Total 1468735367.99 1899945460.39

35. Long-term borrowings

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Borrowings — secured by pledge 184194404.30 108200000.00

Borrowings — unsecured by credit 10411422198.57 9556874313.67

Total 10595616602.87 9665074313.67

The interest rates of the Company’s long-term borrowings: 1.50%–5.50%.Haier Smart Home Co. Ltd. Interim Report 2025 189Section VIII Financial Report

36. Bonds payable

Items Closing balance Opening balance

Medium-term notes 3511471250.00

Less: Bonds interest payable due within one year 11471250.00

Total 3500000000.00

As of 30 June 2025 the balance of bonds payable is as follows:

whether

there is a

Interest Premium/ Reclassified breach

Name of Face Coupon Date of Bonds Issue Opening provision at discount Current as due within Closing of

bonds value rate issue maturity amount balance Current issue face value amortization repayment one year balance contract

MTN001 100 1.99% 2025/2/25 3 years 1500000000.00 1500000000.00 10364583.33 10364583.33 1500000000.00 No

MTN002 100 1.66% 2025/6/17 3 years 2000000000.00 2000000000.00 1106666.67 1106666.67 2000000000.00 No

Total 3500000000.00 3500000000.00 11471250.00 11471250.00 3500000000.00

37. Lease liabilities

Items Closing balance Opening balance

Lease liabilities 6445269459.30 5833372352.30

Less: lease liabilities due within one year 1529016877.33 1352476354.94

Total 4916252581.97 4480895997.36

38. Long-term payables

Items Closing balance Opening balance

Investment from CDB development fund 36500000.00 36500000.00

Others 146627591.82 202526375.32

Less: long-term payables due within one year 44950023.28 50806318.73

Total 138177568.54 188220056.59

Under the Investment Contract of China Development Fund executed by the Company and its

subsidiaries including Qingdao Haier Air Conditioner Gen Corp. Ltd. Qingdao Haier (Jiaozhou)

Air-conditioning Co. Limited together with China Development Fund Co. Ltd. in 2015 and 2016

China Development Fund Co. Ltd. invested RMB73 million in Qingdao Haier (Jiaozhou)

Air-conditioning Co. Limited. China Development Fund Co. Ltd. obtained an annual return of

1.2% by means of dividends or buyback premium for the above investments. As of the end of

the period the subsidiaries of the Company made buyback in amount of RMB36.5 million.

190 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

39. Long-term employee benefits payable

√ Applicable □ Not Applicable

(1) Long-term employee benefits payable

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

I. Post-employment benefits: net liability of

defined benefit plans 1810349667.72 1766487772.54

II. Termination benefits 575746527.21 541765948.00

III. Other long-term benefits 100396953.09 100022169.77

IV. P rovision for work-related injury

compensation 173367783.76 153371556.04

Total 2659860931.78 2561647446.35

(2) Defined benefits plans

Some subsidiaries of the Company have set several defined benefit plans for the qualified

staff. Under these plans the employees are entitled to the retirement benefits agreed in

such defined benefit plans.These plans are exposed to interest rate risks changes in life expectancy of the beneficiary

and other risks.The recent actuarial evaluation of the assets and the present value of defined benefit

obligations under such plans are determined by using the projected unit credit method.* The defined benefit plan of HaierU.S.ApplianceSolutionsInc. a subsidiary of

the Company

HaierU.S.ApplianceSolutionsInc. a subsidiary of the Company has provided

post-employment defined benefit plan of health care benefits to eligible employees.Actuarial assumptions used in the defined benefit plan

Items Rate

Discount rate 5.51%

Haier Smart Home Co. Ltd. Interim Report 2025 191Section VIII Financial Report

Present value of defined benefit obligations

Items Amount

I. Opening balance 138011845.57

II. Business combination not under common control

III. Defined benefit cost recognized in current profit or loss –11743337.59

1. Current service cost

2. Past service cost

3. Settlement gains (losses are represented by ‘-’)

4. Interest cost –11743337.59

IV. D efined benefit cost recognized in other

comprehensive income

1. Actuarial losses (gains are represented by ‘-’)

V. Other changes –22668625.98

1. The consideration paid at the time of settlement

2. Benefit paid –22194274.48

3. Exchange differences –474351.50

VI. Closing balance 103599882.00

Net liability (net asset) of the defined benefit plan

Items Amount

I. Opening balance 138011845.57

II. Business combination not under common control

III. Defined benefit cost recognized in current profit or loss –11743337.59

IV. Defined benefit cost recognized in

other comprehensive income

V. Other changes –22668625.98

VI. Closing balance 103599882.00

192 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

* The defined benefit plan of CarrierRefrigerationBeneluxB.V a subsidiary of the

Company

CarrierRefrigerationBeneluxB.V. a subsidiary of the Company has provided

post-retirement defined benefit plan of health care benefits for the eligible employees.Actuarial assumptions used in the defined benefit plan

Items Rate

Discount rate 3.30%

Present value of defined benefit obligations

Items Amount

I. Opening balance 1423443470.41

II. Business combination not under common control

III. Defined benefit cost recognized in current profit or loss 27876203.99

1. Current service cost 4550387.66

2. Past service cost

3. Settlement gains (losses are represented by ‘-’)

4. Interest cost 23325816.33

IV. Defined benefit cost recognized in other

comprehensive income –130196605.30

1. Actuarial losses (gains are represented by ‘-’) –130196605.30

V. Other changes 73768244.65

1. The consideration paid at the time of settlement

2. Benefit paid –23362234.12

3. Exchange differences 97130478.77

VI. Closing balance 1394891313.75

Haier Smart Home Co. Ltd. Interim Report 2025 193Section VIII Financial Report

Fair value of plan assets

Items Amount

I. Opening balance 50570397.42

II. Business combination not under common control

III. Defined benefit cost recognized in current profit or loss

1. Interest income

IV. D efined benefit cost recognized in other

comprehensive income

1. Return on plan assets (except those included in

net interests)

2. Changes in impact of asset cap (except those

included in net interests)

V. Other changes 3777042.00

1. Employer contributions

2. Benefit paid

3. Exchange differences 3777042.00

VI. Closing balance 54347439.42

Net liability (net asset) of the defined benefit plan

Items Amount

I. Opening balance 1372873072.99

II. Business combination not under common control

III. Defined benefit cost recognized in current profit or loss 27876203.99

IV. Defined benefit cost recognized in

other comprehensive income –130196605.30

V. Other changes 69991202.65

VI. Closing balance 1340543874.33

194 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Classification of the balance of defined benefit plans

Items Closing balance Opening balance

Short-term Benefit 25763889.81 37042017.07

Long-term Benefit 1810349667.72 1766487772.54

Total 1836113557.53 1803529789.61

40. Estimated liabilities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance

Active litigation 34489279.27 52893571.31

Others 402474952.22 353215103.35

Projection of warranty expenses and

installation fees 1967373906.20 1980153078.26

Total 2404338137.69 2386261752.92

Significant assumption and estimation relating to estimation of warranty expenses and installation

fees: the Company reasonably estimated the warranty expenses and installation fees rate based

on its actual expenses on the warranty expenses and installation fees as well as sales data in the

past. The Company estimated the warranty expenses and installation fees that are likely to be

incurred in the future according to its policies on the warranty expenses and installation fees as

well as the actual sales data.

41. Deferred income

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

Government grants 1252216590.03 118604129.24 59442075.14 1311378644.13

Total 1252216590.03 118604129.24 59442075.14 1311378644.13

Haier Smart Home Co. Ltd. Interim Report 2025 195Section VIII Financial Report

42. Share capital

Increase for the Decrease for the

Share category Opening balance current period current period Closing balance

I. Restricted shares

1. State-owned shares

2. S hares held by domestic

non-state-owned legal entities

3. Shares held by domestic

individuals

4. Shares held by offshore non-state-

owned legal entities

II. Non-restricted shares 9382913334 9382913334

1. Ordinary shares in RMB 6254501095 6254501095

2. Domestic listed foreign Shares

3. Offshore listed foreign Shares 3128412239 3128412239

4. Others

III. Total shares 9382913334 9382913334

43. Capital reserve

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

Capital premium (Share premium) 18567161037.20 6098611.77 692993540.95 17880266108.02

Others capital reserve 1743057184.84 221073939.39 1964131124.23

Total 20310218222.04 227172551.16 692993540.95 19844397232.25

The main reasons for the change in capital premium: capital reduction by the minority

shareholders for the current period resulted in the decrease in capital premium of

RMB305871527.15; share premium in the current period was offset by combination under

common control of RMB385944236.13.The main reasons for the change in other capital reserves: the amortized share-based payment

for the current period included in other capital reserves of RMB221073939.39.

196 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

44. Treasury stock

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

Treasury stock 3510728776.44 856403284.46 4367132060.90

Total 3510728776.44 856403284.46 4367132060.90

The main reasons for the change in treasury stock: the repurchase of treasury stock for the

current period of RMB856403284.46.

45. Other comprehensive income

Items Opening balance Amounts for the current period

Attributable to

Amount before Deduction of Attributable to the minority

current income impact of income parent company shareholders

tax tax after tax after tax Others Closing balance

a –362738623.59 30761163.87 28468182.86 2292981.01 –334270440.73

b –122083113.66 –166241633.23 33928506.29 –130457670.38 –1855456.56 –252540784.04

c 83057616.24 1711876540.52 1715243628.31 –3367087.79 1798301244.55

d 1081059271.89 –377719032.49 83807965.31 –293914281.42 3214.24 787144990.47

e 146207709.59 134750500.02 1107369.60 135857881.73 –12.11 282065591.32

Total 825502860.47 1333427538.69 118843841.20 1455197741.10 –2926361.21 2280700601.57

Notes:

(1) Item a b and c are other comprehensive income that will be reclassified to profit or loss the details are as follows:

Item a represents other comprehensive income classified to profit and loss under the equity method.Item b represents cash flow hedge reserves (the effective part of the cash flow hedge profit and loss).Item c represents exchange differences on translation of financial statements denominated in foreign currencies.

(2) Item d and e are other comprehensive income that cannot be reclassified into profit or loss. Details are as follows:

Item d represents the change in fair value of investments in other equity instruments.Item e represents changes arising from remeasurement of net liabilities or assets of defined benefit plans.Haier Smart Home Co. Ltd. Interim Report 2025 197Section VIII Financial Report

46. Surplus reserve

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for the Decrease for the

Items Opening balance current period current period Closing balance

Statutory surplus reserve 5248946090.86 5248946090.86

Discretionary surplus reserve 26042290.48 26042290.48

Reserve fund 11322880.64 11322880.64

Enterprise expansion fund 10291630.47 10291630.47

Total 5296602892.45 5296602892.45

Pursuant to the Company Law of the People’s Republic of China and the Articles of Association

the Company is required to appropriate the statutory surplus reserve at 10% of its net profit of

the year. When the accumulated statutory surplus reserve reaches 50% of the registered capital

no further withdrawal will be made.

47. Undistributed profits

√ Applicable □ Not Applicable

Items Amounts

Undistributed profits at the end of previous year 79288144269.76

Change in accounting policy

Combination under common control 186221964.94

Undistributed profits at the beginning of the year 79474366234.70

Add: net profit attributable to owners of the parent company 12032995820.27

Other transfer in –58758990.66

Adjustment due to implementation of enterprise accounting standard

Profit available for distribution for the year 91448603064.31

Less: appropriation of statutory surplus reserve

Dividend payable for ordinary shares –8991794045.13

Undistributed profits at the end of the period 82456809019.18

198 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

48. Operating income and operating cost

(1) Operating income

Amount for Amount for

the current the previous

Items period period

Primary business 155737423233.75 141200772557.97

Other Business 756611215.10 781710047.78

Total 156494034448.85 141982482605.75

(2) Primary business income and primary business cost by product category

Categories Amount for the current period Amount for the previous period

Primary Primary Primary Primary

business income business cost business income business cost

Air conditioner 32773116118.25 24821013600.94 29010601435.70 22060525312.37

Refrigerator 42517263682.82 30243865847.23 40858797164.04 29158061137.72

Kitchen appliance 20507654798.42 14636534679.15 20121663515.89 14415361584.50

Water appliance 9568195570.47 6035597553.81 7891692972.94 5002145224.53

Washing machine 31645348772.57 22036825098.96 29427102302.00 20539974853.10

Equipment product and

integrated channel

services 18725844291.22 16413846241.67 13890915167.40 12443153339.38

Total 155737423233.75 114187683021.76 141200772557.97 103619221451.60

49. Taxes and surcharge

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

City maintenance and construction tax 216826875.38 205158082.67

Education surcharge 111002174.00 119339956.37

Property tax 87636662.47 73405594.04

Land use tax 26449754.79 24445566.26

Stamp duty 207214672.39 160693601.14

Others 30424664.05 27259516.58

Total 679554803.08 610302317.06

Haier Smart Home Co. Ltd. Interim Report 2025 199Section VIII Financial Report

50. Selling expenses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Selling expenses 15816814510.07 14517816334.58

Total 15816814510.07 14517816334.58

The Company’s selling expenses are mainly salary expenses transportation and storage fees

and advertising and promotion fees.

51. Administrative expenses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Administrative expenses 5891046898.48 5382166653.05

Total 5891046898.48 5382166653.05

The Company’s administrative expenses are mainly salary expenses office fees depreciation and

amortization of assets fees etc.

200 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

52. R&D expenses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

R&D expenses 5790436804.10 5182598681.20

Total 5790436804.10 5182598681.20

The Company’s R&D expenses are mainly salary expenses R&D equipment expenses inspection

and testing fees.

53. Financial expenses

Amount for Amount for

the current the previous

Items period period

Interest expense 1446615689.51 1252571601.13

Less: interest income 908582647.56 947056127.00

Less: cash discount 102284390.50 62102125.84

Exchange gains or losses

(gains are represented by ‘-’) –881376818.22 –263159366.26

Others 94770605.30 72791807.54

Total –350857561.47 53045789.57

Interest expenditure in lease liabilities for the current period was RMB176593110.63 (amount for

the corresponding period: RMB96013680.91).Haier Smart Home Co. Ltd. Interim Report 2025 201Section VIII Financial Report

54. Other income

√ Applicable □Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Classified by nature period period

Government grants related to revenue 728969755.04 532638111.02

Government grants related to assets 46244753.38 52786262.32

Total 775214508.42 585424373.34

55. Investment income (losses are represented by ‘-’)

Amount for Amount for

the current the previous

Items period period

Long-term equity investments income calculated

by the equity method 850409233.36 913969362.35

Investment income from disposal of long-term

equity investments –4387023.49 –14953215.38

Investment income from other equity instrument

investments during holding period 3225726.29 2996902.10

Income from wealth management products 45175048.95 29641941.56

Investment income from disposal of financial

assets measured at fair value with changes

included in current profit or loss 22835518.25 76000.00

Total 917258503.36 931730990.63

202 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

56. Gains on changes in fair value (losses are represented by ‘-’)

Amount for Amount for

the current the previous

Items period period

Changes in fair value of equity investments –4275003.34 –54049574.20

Changes in fair value of fund investments 25935689.85 22787943.83

Others 13092854.12 1696032.55

Total 34753540.63 –29565597.82

57. Credit impairment losses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Bad debts losses on bills receivables 184079.11 360918.35

Bad debts losses on accounts receivable –55292827.56 –136457834.87

Bad debts losses on other receivable –16803339.40 66301974.49

Total –71912087.85 –69794942.03

Haier Smart Home Co. Ltd. Interim Report 2025 203Section VIII Financial Report

58. Impairment losses on assets (losses are represented by ‘-’)

Amount for Amount for

the current the previous

Items period period

Impairment losses on inventory –464995039.52 –428210654.99

Impairment losses on other current assets –279221989.21 –280012125.83

Impairment losses on fixed assets

Impairment losses on construction in progress

Impairment losses on intangible assets

Impairment losses on contract assets 103983.91 1738301.13

Impairment losses on long-term equity

investments

Impairment losses on prepayments 46943.81

Total –744113044.82 –706437535.88

59. Gains on disposal of assets

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Gains on disposal of non-current assets 6280751.77 9015344.34

Losses on disposal of non-current assets –13648789.31 –10585042.83

Total –7368037.54 –1569698.49

204 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

60. Non-operating income

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Gains on disposal of non-current assets 4626638.73 96154.87

Quality claims and fines 23563630.75 24265721.43

Others 93665386.66 52128870.17

Total 121855656.14 76490746.47

61. Non-operating expenses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Losses on disposal of non-current assets 18593317.72 7312366.85

Others 239145458.34 89585857.27

Total 257738776.06 96898224.12

Haier Smart Home Co. Ltd. Interim Report 2025 205Section VIII Financial Report

62. Income tax expenses

(1) Statement of income tax expenses

Amount for Amount for

the current the previous

Items period period

Current income tax expense 2258469724.26 2273026691.14

Deferred income tax expense 253470624.41 –65850873.88

Total 2511940348.67 2207175817.26

(2) Reconciliation between accounting profit and income tax expenses for the current

period

Items Amounts

Total accounting profit 14997056148.11

Income tax expense calculated pursuant to statutory tax rate 3749264037.03

Impact from different tax rates applicable to subsidiaries –1395463023.45

Impact from adjustment to income tax in prior periods –238625913.73

Impact from non-taxable income –238916572.24

Impact from non-deductible cost expense and loss 215003853.81

Impact from deductible provisional differences or deductible

losses of unrecognized deferred tax 447958728.00

Others –27280760.75

Total income tax expense 2511940348.67

63. Other comprehensive income

√ Applicable □ Not Applicable

Please refer to notes VII.45 for details.

206 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

64. Cash flow statement items

(1) Cash related to operating activities

Other cash received from operating activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for the

Items current period

Deposits and securities 271876028.06

Government grants 466806344.50

Non-operating income excluding government grants 36649145.18

Interest income 654969731.79

Others 81883220.07

Total 1512184469.60

Other cash paid to operating activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for the

Items current period

Cash paid on selling and after-sales expenses 7723584328.13

Cash paid on administrative and R&D expenses 3623107522.91

Cash paid on financial expenses 88422457.30

Non-operating expenses 18627498.30

Deposits and securities 32264475.02

Others 58659663.70

Total 11544665945.36

Haier Smart Home Co. Ltd. Interim Report 2025 207Section VIII Financial Report

(2) Cash related to investing activities

Other cash received from significant investing activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for the

Items current period

Redemption of wealth management products 19962026830.53

Total 19962026830.53

Other cash paid to significant investing activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for the

Items current period

Purchase of wealth management products 26918044657.46

Total 26918044657.46

Other cash received from investing activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for the

Items current period

Recovery of amounts from disposal of equity interests in

previous years 128938719.56

Others 2490086.58

Total 131428806.14

208 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(3) Cash related to financing activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Other cash received from financing activities

Amount for the

Items current period

Amount recovered from the capital pool of COSMOPlat Mould

(Qingdao) Co. Ltd. 111646384.65

Total 111646384.65

Other cash paid to financing activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for the

Items current period

Repurchase of shares 856403284.46

Cash paid to lease 813449403.83

Purchase of minority interests in subsidiaries 2155055760.34

Cash paid for business combination under common control 77749769.26

Others 2904023.09

Total 3905562240.98

Changes of various liabilities arising from financing activities

√ Applicable □ Not Applicable

Unit and Currency: RMB

Increase for Decrease for

Items Opening balance the current period the current period Closing balance

Non-cash Non-cash

Cash change change Cash change change

Short-term borrowings 13784367443.93 11512725588.49 218280882.32 9347387559.64 40371717.86 16127614637.24

Long-term borrowings

(including those due

within one year) 20030302099.39 2306085839.54 146536745.55 4972226258.10 17510698426.38

Lease liabilities (including

those due within one

year) 5833372352.27 1464770128.25 813449403.83 39423617.39 6445269459.30

Bonds payable (including

those due within one

year) 3500000000.00 11471250.00 3511471250.00

Total 39648041895.59 17318811428.03 1841059006.12 15133063221.57 79795335.25 43595053772.92

Haier Smart Home Co. Ltd. Interim Report 2025 209Section VIII Financial Report

65. Supplementary information to the cash flow statement

(1) Supplementary information to the cash flow statement

Amount for the Amount for the

Supplementary information current period previous period

1. Net profit adjusted to cash flow of

operating activities:

Net profit 12485115799.44 10773597554.50

Add: impairment provision for assets 744113044.82 706437535.88

Losses from credit impairment 71912087.85 69794942.03

Depreciation of fixed assets depletion of

oil and gas assets depreciation of

biological assets for production 2519985504.97 2321884231.99

Amortization of right-of-use assets 771315015.94 735739606.98

Amortization of intangible assets 716020914.20 689256426.61

Amortization of long-term prepaid

expenses 178900068.92 236321231.56

Losses from disposal of fixed assets

intangible assets and other long-term

assets (gains are represented by “—”) 21334716.53 8785910.47

Losses from changes of fair value (gains

are represented by “—”) –34753540.63 29565597.82

Financial expenses (gains are represented

by “—”) 1326152965.53 803559417.21

Losses from investments (gains are

represented by “—”) –917258503.36 –931730990.63

Decrease in deferred income tax assets

(increase is represented by “—”) 217417921.39 –18620089.52

Increase of deferred income tax liabilities

(decrease is represented by “—”) 36052703.02 –47230784.35

Decrease in inventories (increase is

represented by “—”) –772501496.05 –383440948.12

Decrease of operational account

receivables (increase is represented by

“—”)–1945082457.96–3781790557.04

Increase of operational account payables

(decrease is represented by “—”) –4559914956.76 –2961721296.82

Others 280235993.49 173652814.86

Net cash flow generated from operational

activities 11139045781.34 8424060603.43

210 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Amount for the Amount for the

Supplementary information current period previous period

2. Significant investment and financing

activities not involving cash inflows

and outflows:

Capital transferred from debts

Convertible corporate bonds due within

one year

Fixed assets under finance lease

3. Net changes of cash and cash

equivalents:

Cash balance at the end of the period 54514391673.07 55403830583.32

Less: cash balance at the beginning of

the period 54994595280.18 56715672668.25

Add: cash equivalents balance at the end

of the period

Less: cash equivalents balance at the

beginning of the period

Net increase of cash and cash

equivalents –480203607.11 –1311842084.93

(2) Composition of cash and cash equivalents

Items Closing balance Opening balance

I. Cash 54514391673.07 54994595280.18

Including: Cash on hand 1685740.35 560953.91

Bank deposits always available for

payment 53646652252.87 54256005280.85

Other monetary funds always available for

payment 866053679.85 738029045.42

II. Cash equivalents

Including: b ond investments due within

three months

III. Closing balance of cash and cash

equivalents 54514391673.07 54994595280.18

Including: restricted cash and cash

equivalents used by the parent

company or subsidiaries of

the Group

Haier Smart Home Co. Ltd. Interim Report 2025 211Section VIII Financial Report

(3) Monetary funds that are not cash and cash equivalents

√ Applicable □ Not Applicable

Unit and Currency: RMB

Items Closing balance Opening balance Reasons

Deposit 769431523.05 532703901.59 Poor marketability not readily

Restricted special account deposit 40756203.22 36317505.47 realizable or not available

Others 32523137.48 33937935.59 for payment

Total 842710863.75 602959342.65 /

(4) Information about Supplier Financing Arrangements

1) Terms and conditions of supplier financing arrangements

* Accounts payable financing factoring: The subsidiaries of the Company engage

in accounts payable financing with banks whereby the subsidiaries of the

Company apply to the banks for the banks to directly pay the supplier on the

due date of the accounts payable. Upon the expiration of the agreed financing

period (generally 6–12 months) the subsidiaries of the Company will repay the

corresponding amount to the banks. When the banks make payment to the

supplier on behalf of the subsidiaries the subsidiaries of the Company cease to

recognize the related accounts payable and simultaneously incur a liability to the

banks.* Accounts payable supply chain factoring: The subsidiaries of the Company

conduct supply chain financing business. According to the relevant

arrangements participating suppliers can choose to receive payment for

invoices under this arrangement in advance from financial institutions without

being influenced by the Company. Regardless of whether the supplier opts for

early payment the subsidiaries of the Company will repay the full invoice

amount on the agreed payment due date and are not responsible for paying

interest or other fees to the financial institutions. Since this arrangement does

not extend the original payment period the subsidiaries’ debts to the financial

institutions are classified as accounts payable.

212 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

2) Information of financial liabilities related to supplier financing arrangements

Item Closing balance Opening balance

Short-term borrowings 128166335.69 98355349.41

Including: Amounts received by

s uppliers from financing

provider 128166335.69 98355349.41

Accounts payable 9124785121.93 8502906169.43

Including: Amounts received by

suppliers from financing

provider 5045915845.75 4674536705.90

The payment period for comparable accounts payable not under supplier financing

arrangements ranges from 30 to 270 days.Haier Smart Home Co. Ltd. Interim Report 2025 213Section VIII Financial Report

66. Monetary items in foreign currency

Items Closing balance Opening balance

Balance in Balance in

foreign foreign

currency Exchange rate Balance in RMB currency Exchange rate Balance in RMB

Monetary funds

USD 2342544643.15 7.1586 16769340082.48 2212325253.41 7.1884 15903078851.59

EUR 90052655.68 8.4024 756658434.09 171400140.17 7.5257 1289906034.89

JPY 5230348450.42 0.049594 259393901.05 4381349907.64 0.046233 202562950.28

HKD 451020938.83 0.9120 411331096.21 539613158.97 0.9260 499681785.21

Others 3515374745.41 3453401844.51

Subtotal 21712098259.24 21348631466.48

Accounts receivables

USD 1258488324.01 7.1586 9009014516.28 1463282401.93 7.1884 10518659218.06

EUR 666945428.33 8.4024 5603942266.96 637522791.08 7.5257 4797805268.81

JPY 4331666640.12 0.049594 214824675.35 4138295194.99 0.046233 191325801.75

Others 7254967234.95 4807501407.14

Subtotal 22082748693.54 20315291695.76

Short-term borrowings

USD 965044955.47 7.1586 6908370818.26 774590743.79 7.1884 5568068102.65

EUR 111437799.93 8.4024 936344970.14 129161874.07 7.5257 972033515.70

JPY 0.049594 1952854108.54 0.046233 90286304.00

HKD 770000000.00 0.9120 702240000.00 2530000000.00 0.9260 2342780000.00

Others 2561041908.66 1734146904.27

Subtotal 11107997697.06 10707314826.62

Accounts payables

USD 1947283184.27 7.1586 13939821402.91 2204807610.20 7.1884 15849039025.17

EUR 688313334.47 8.4024 5783483961.59 799305156.44 7.5257 6015330815.80

JPY 3734984438.04 0.049594 185232818.22 4562773337.01 0.046233 210950699.69

NZD 156447192.17 4.3475 680154167.94 144506699.36 4.0955 591827187.21

Others 4174823217.11 3963471194.55

Subtotal 24763515567.77 26630618922.42

Non-current liabilities due

within one year

USD 500000000.00 7.1586 3579300000.00 500000000.00 7.1884 3594200000.00

EUR 74640143.00 8.4024 627156337.54 573987092.00 7.5257 4319654658.26

Others 999885485.96 941786481.62

Subtotal 5206341823.50 8855641139.88

Long-term borrowings

USD 660000000.00 7.1586 4724676000.00 660000000.00 7.1884 4744344000.00

EUR 200000000.00 8.4024 1680480000.00

Subtotal 6405156000.00 4744344000.00

214 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

67. Leases

(1) As lessee

√ Applicable □ Not Applicable

Variable lease payments not included in the measurement of lease liabilities:

√ Applicable □ Not Applicable

RMB39906692.00

Lease expenses of short-term leases or leases of low-value assets which are subject to

simplified treatment:

√ Applicable □ Not Applicable

RMB689733552.24

Total cash outflow for leases: 1543089648.07 (Unit and Currency:RMB)

The leased assets leased by the Company include housing and buildings production

equipment transportation equipment office equipment and others used in the course of

operations. Some of the leases contain renewal options and termination options.

(2) As lessor

a. Lease incomes from operating leases as lessor for the current period:

RMB25464848.81 including incomes related to variable lease payments not included

in lease receipts: nil.b. Undiscounted lease receipts for the next five years:

Undiscounted lease receipts

Lease receipts per year

Closing amount Opening amount

Within 1 year 59345996.78 11744103.00

1 to 2 years 59883319.31 10343953.00

2 to 3 years 62855681.29 10343953.00

3 to 4 years 66006384.98 10343953.00

4 to 5 years 69346130.90 10343953.00

Over 5 years 189526144.08 132155812.00

Total 506963657.34 185275727.00

The leased assets leased out by the Company are mainly housing buildings and land

use rights. For details of changes of the leased assets please refer to Note VII.16.Haier Smart Home Co. Ltd. Interim Report 2025 215Section VIII Financial Report

VIII. RESEARCH AND DEVELOPMENT EXPENDITURE

1. By the nature of expenses

√ Applicable □ Not Applicable

Unit and Currency: RMB

Amount for Amount for

the current the previous

Items period period

Independent research and development expenses 5739193531.77 5088836211.86

Outsourcing research and development expenses 277375105.19 362452756.21

Total 6016568636.96 5451288968.07

Including: expensed research and development

expenditure 5790436804.10 5182598681.20

Capitalized research and development expenditure 226131832.86 268690286.87

2. Development expenditure on research and development projects eligible for capitalization

Decrease for the current period

Change in

Recognized as Included in foreign

Opening Increase for the intangible current profit exchange rate Closing

Items balance current period asset and loss and others balance

Living Environment Intelligent

Detection PROGRAM 28814783.25 117555459.48 146370242.73

OWNERSHIP EXPERIENCE

PROGRAM 51656319.93 7096261.81 48028438.77 –89037.53 10635105.44

91ABD.ERP IT PROGRAM 28007204.85 12887648.20 164768.71 –154992.65 40575091.69

Others 158789284.89 88592463.37 88672600.50 26184311.38 184893459.14

Total 267267592.92 226131832.86 283236050.71 25940281.20 236103656.27

216 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

IX. CHANGES OF CONSOLIDATION SCOPE

1. Business combination not under common control

□ Applicable √ Not Applicable

2. Business combination under common control

√ Applicable □ Not Applicable

(1) Business combination under common control occurring in the current period

The basis for the

The proportion of transaction of

equity acquired in constituting business Recognition basis

Name of the the business combination under Combination of combination

acquiree combination common control date date

Controlled by Haier Group

COSMOPlat Mould Corporation before and Transfer of voting

(Qingdao) Co. Ltd. 100.00% after combination 2025.3 rights

(Continued)

The income of the Net profit of the

acquiree from the acquiree from the

beginning of the beginning of the The income of the Net profit of the

current period to current period to acquiree during the acquiree during the

Name of the acquiree combination date combination date comparison period comparison period

COSMOPlat Mould

(Qingdao) Co. Ltd. 139744829.73 3593306.97 133233842.59 –5554270.73

(2) Combination cost

√ Applicable □ Not Applicable

Unit and Currency: RMB

Combination cost —— Cash —— Equity

COSMOPlat Mould (Qingdao) Co. Ltd. 77749769.26

Haier Smart Home Co. Ltd. Interim Report 2025 217Section VIII Financial Report

(3) The carrying amount of the assets and liabilities of the acquiree as of the

combination date

√ Applicable □ Not Applicable

Unit and Currency: RMB

a. Acquiree’s assets and liabilities

COSMOPlat Mould (Qingdao)

Items Co. Ltd.End of the

Combination date previous period

Monetary funds 8151371.17 13712033.13

Accounts receivables 36498914.84 298755305.13

Inventories 138787502.80 145441470.58

Contract assets 10457165.36 10294407.38

Other current assets 12292032.78 13922096.30

Investments in other equity instruments 86992207.36

Fixed assets 73851879.90 94570444.38

Construction in progress 2842390.82 5949707.82

Intangible assets 8660560.56 8265155.63

Accounts payables –229495562.35 –219041447.08

Payables for staff’s remuneration –6839598.34 –16710350.13

Taxes payable –640750.97 –137995.99

Other current liabilities –1956603.11 –8653112.52

Deferred income –17089283.86 –20604153.94

Net assets 35520019.60 412755768.05

Less: minority interests

Net assets acquired 35520019.60 412755768.05

3. Disposal of subsidiary

Whether single disposal of investment in subsidiary will result in losing control power:

Qingdao Haier

Kitchen IoT

Technology

Co. Ltd. (青島海 Haier Israel

尔厨聯网物聯科技 Innovation

Items 有限公司) Center Ltd

Equity disposal price — —

Proportion of equity disposal 100% 100%

Method of equity disposal Cancellation Cancellation

Time of loss-of-control June 2025 March 2025

Basis for determination the time of loss-of- control Cancellation Cancellation

Difference between consideration and its share of

net assets of the subsidiary as respect to the

disposal in the consolidated level –110214.59 –4296665.23

218 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

4. Changes of consolidation scope due to other reasons

√ Applicable □Not Applicable

(1) During the period Qingdao Ruibo Ecological Environmental Technology Co. Ltd. (青岛瑞博

生态环保科技有限公司) a subsidiary of the Company established Qingdao Haier

Environmental Protection Material Technology Co. Ltd. (青岛海尔环保材料科技有限公司).

(2) During the period Qingdao Haier Home AI Industry Innovation Center Co. Ltd. a subsidiary

of the Company established Haier Jingling Technology (Zhejiang) Co. Ltd. (海尔景龄科技（浙江）有限公司).

(3) During the period Qingdao Haier Intelligent Home Appliance Technology Co. Ltd. a

subsidiary of the Company established Qingdao Haiyi Wenhua Commercial Management

Co. Ltd. (青岛海逸文华商業管理有限公司).X. INTERESTS IN OTHER ENTITIES

1. Interests in subsidiaries

(1) Composition of the Group

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Flourishing Reach Mainland of China Bermuda Group company which mainly 100.00% 100.00% Establishment

Limited engage in investment

holding the production and

sale of washing machines

and water heaters

distribution service

Haier Electronics Group Mainland of China and Bermuda Group company which mainly 100.00% 100.00% Establishment

Co. Ltd. Hong Kong engage in investment

holding the production and

sale of water equipment

distribution service

Haier U.S. Appliance the United States the United States Group company which mainly 100.00% 100.00% Establishment

Solutions Inc. engage in home appliances

production and distribution

business

Haier Singapore Singapore and other Singapore Group company which mainly 100.00% 100.00% Business

Investment Holding overseas areas engage in home appliances combination

Co. Ltd. production and distribution under common

business control

Haier New Zealand New Zealand New Zealand Group company which mainly 100.00% 100.00% Business

Investment Holding engage in home appliances combination

Company Limited production and distribution under common

business control

Candy S.p.A Europe Italy Group company which mainly 100.00% 100.00% Business

engage in home appliances combination not

production and distribution under common

business control

Carrier Refrigeration Europe Germany Group company which mainly 100.00% 100.00% Business

Benelux B.V. engage in home appliances combination

production and distribution under common

business control

Haier Smart Home Co. Ltd. Interim Report 2025 219Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Kwikot (Haier) SA (Pty) South Africa South Africa Mainly engage in water heater 100.00% 100.00% Business

Ltd production and distribution combination

business under common

control

Qingdao Haier Air Qingdao High-tech Qingdao High-tech Manufacture and sale of 92.37% 92.37% Business

Conditioner Gen Corp. Zone Zone household air-conditioners combination

Ltd. under common

control

Guizhou Haier Huichuan District Huichuan District Manufacture and sale of 59.00% 59.00% Business

Electronics Co. Ltd. Zunyi City Guizhou Zunyi City Guizhou refrigerator combination

Province Province under common

control

Hefei Haier Air- Hefei Haier Industrial Hefei Haier Industrial Manufacture and sale of 100.00% 100.00% Business

conditioning Co. Park Park air-conditioners combination

Limited under common

control

Wuhan Haier Electronics Wuhan Haier Industrial Wuhan Haier Industrial Manufacture and sale of 59.86% 59.86% Business

Holding Co. Ltd. Park Park air-conditioners combination

under common

control

Qingdao Haier Air- Qingdao Development Qingdao Development Manufacture and sale of 97.43% 97.43% Business

Conditioner Electronics Zone Zone air-conditioners combination

Co. Ltd. under common

control

Qingdao Haier Qingdao High-tech Qingdao High-tech Manufacturing of plastic 100.00% 100.00% Business

Information Plastic Zone Zone products combination

Development Co. Ltd. under common

control

Dalian Haier Precision Dalian Export Dalian Export Manufacture and sale of 90.00% 90.00% Business

Products Co. Ltd. Expressing Zone Expressing Zone precise plastics combination

under common

control

Hefei Haier Plastic Co. Hefei Economic & Hefei Economic & Manufacture and sale of plastic 95.17% 4.83% 100.00% Business

Ltd. Technological Technological parts combination

Development Area Development Area under common

control

Qingdao Meier Plastic Qingdao Development Qingdao Development Manufacture of plastic powder 40.00% 60.00% 100.00% Business

Powder Co. Ltd. Zone Zone plastic sheet and combination

high-performance coatings under common

control

Chongqing Haier Jiangbei District Jiangbei District Plastic products sheet metal 90.00% 10.00% 100.00% Business

Precision Plastic Co. Chongqing City Chongqing City work electronics and combination

Ltd. hardware under common

control

Qingdao Haier Qingdao High-tech Qingdao High-tech Manufacture and production of 97.91% 97.91% Establishment

Refrigerator Co. Ltd. Zone Zone fluorine-free refrigerators

Qingdao Haier Pingdu Development Pingdu Development Manufacture of refrigerators 100.00% 100.00% Establishment

Refrigerator Zone Qingdao Zone Qingdao

(International) Co. Ltd.Qingdao Household Qingdao High-tech Qingdao High-tech Research and development of 100.00% 100.00% Establishment

Appliance Technology Zone Zone home appliances mold and

and Equipment technological equipment

Research Institute

Qingdao Haier Whole Set Qingdao High-tech Qingdao High-tech Research development and 98.33% 98.33% Establishment

Home Appliance Zone Zone sales of health- related small

Service Co. Ltd. home appliance

Qingdao Haier Special Qingdao Development Qingdao Development Manufacture and sales of 100.00% 100.00% Establishment

Refrigerator Co. Ltd. Zone Zone fluorine-free refrigerators

Qingdao Haier Qingdao Development Qingdao Development Manufacture of dish washing 99.59% 99.59% Establishment

Dishwasher Co. Ltd. Zone Zone machine and gas stove

220 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Qingdao Haier Special Qingdao Development Qingdao Development Research manufacture and 96.78% 96.78% Establishment

Freezer Co. Ltd. Zone Zone sales of freezer and other

refrigeration products

Dalian Haier Air- Dalian Export Dalian Export Air conditioner processing and 90.00% 90.00% Establishment

conditioning Co. Ltd. Expressing Zone Expressing Zone manufacturing

Dalian Haier Refrigerator Dalian Export Dalian Export Refrigerator processing and 100.00% 100.00% Establishment

Co. Ltd. Expressing Zone Expressing Zone manufacturing

Qingdao Haier Electronic Qingdao Development Qingdao Development Development assembling and 100.00% 100.00% Establishment

Plastic Co. Ltd. Zone Zone sales of plastics electronics

and products

Wuhan Haier Freezer Wuhan Economic & Wuhan Economic & Research manufacture and 82.93% 4.36% 87.29% Establishment

Co. Ltd Technological Technological sales of freezer and other

Development Zone Development Zone refrigeration products

High-tech Industrial High-tech Industrial

Park Park

Qingdao Haidarui Qingdao High-tech Qingdao High-tech Develop purchase and sell 98.00% 2.00% 100.00% Establishment

Procurement Service Zone Zone electrical products and

Co. Ltd. components

Qingdao Haier Intelligent Qingdao High-tech Qingdao High-tech Development and application of 91.46% 1.01% 92.47% Establishment

Home Appliance Zone Zone home appliances

Technology Co. Ltd. communication electronics

and network engineering

technology

Chongqing Haier Jiangbei District Jiangbei District Manufacture and sales of air 76.92% 23.08% 100.00% Establishment

Air-conditioning Co. Chongqing City Chongqing City conditioners

Ltd.Qingdao Haier Precision Qianwang ang Road Qianwang ang Road Development and manufacture 70.00% 70.00% Establishment

Products Co. Ltd. Jiaonan City Jiaonan City of precise plastic metal

plate mold and electronic

products for home

appliances

Qingdao Haier Air Jiaonan City Qingdao Jiaonan City Qingdao Manufacture of home 100.00% 100.00% Establishment

Conditioning appliances and electronics

Equipment Co. Ltd.Dalian Free Trade Zone Dalian Export Dalian Export Domestic trade 100.00% 100.00% Establishment

Haier Air-conditioning Expressing Zone Expressing Zone

Trading Co. Ltd.Dalian Free Trade Zone Dalian Export Dalian Export Domestic trade 100.00% 100.00% Establishment

Haier Refrigerator Expressing Zone Expressing Zone

Trading Co. Ltd.Chongqing Haier Jiangbei District Jiangbei District Sales of home appliances 95.00% 5.00% 100.00% Establishment

Electronics Sales Co. Chongqing City Chongqing City

Ltd.Chongqing Haier Jiangbei District Jiangbei District Processing and manufacturing 84.95% 15.05% 100.00% Establishment

Refrigeration Appliance Chongqing City Chongqing City of refrigerator

Co. Ltd.Hefei Haier Refrigerator Hefei Haier Industrial Hefei Haier Industrial Processing and manufacturing 100.00% 100.00% Establishment

Co. Ltd. Park Park of refrigerator

Qingdao Haier Intelligent Qingdao Development Qingdao Development Air-conditioning engineer 100.00% 100.00% Establishment

Building Technology Zone Zone

Co. Ltd.Chongqing Lianmai Jiangbei District Jiangbei District Sales of home appliances and 51.00% 51.00% Establishment

Electric Appliance Chongqing City Chongqing City electronics

Sales Co. Ltd. (重庆聯邁电器銷售有限公

司)

Qingdao Haier (Jiaozhou) Jiaozhou City Jiaozhou City Manufacture and sale of 100.00% 100.00% Establishment

Air-conditioning Co. Qingdao Qingdao air-conditioners

Limited

Qingdao Haier Jiaozhou City Jiaozhou City Manufacture and sales of 100.00% 100.00% Establishment

Component Co. Ltd. Qingdao Qingdao plastic and precise sheet

metal products

Haier Smart Home Co. Ltd. Interim Report 2025 221Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Haier Shareholdings Hong Kong Hong Kong Investment 100.00% 100.00% Establishment

(Hong Kong) Limited

Harvest International Cayman Islands Cayman Islands Investment 100.00% 100.00% Establishment

Company

Shenyang Haier Shenbei New Area Shenbei New Area Manufacture and sales of 100.00% 100.00% Establishment

Refrigerator Co. Ltd. Shenyang City Shenyang City S refrigerator

Foshan Haier Freezer Sanshui District Sanshui District Manufacture and sales of 100.00% 100.00% Establishment

Co. Ltd. Foshan City Foshan City refrigerator

Zhengzhou Haier Zhengzhou Economic Zhengzhou Economic Manufacture and sales of 100.00% 100.00% Establishment

Air-conditioning Co. and Technological and Technological freezer

Ltd. Development Zone Development Zone

Qingdao Haidayuan Qingdao Development Qingdao Development Develop purchase and sell 100.00% 100.00% Establishment

Procurement Service Zone Zone electrical products and

Co. Ltd. components

Qingdao Haier Intelligent Qingdao High-tech Qingdao High-tech Development and research of 100.00% 100.00% Establishment

Technology Zone Zone home appliance products

Development Co. Ltd.Qingdao Hairi High Qingdao High-tech Qingdao High-tech Design manufacture and sales 100.00% 100.00% Business

Technology Co. Ltd. Zone Zone of product model and mould combination

under common

control

Qingdao Hai Gao Design Qingdao High-tech Qingdao High-tech Industrial design and prototype 75.00% 75.00% Business

and Manufacture Co. Zone Zone production combination

Ltd. under common

control

Zhongshan Haier HV Zhongshan Zhongshan Sales of home appliances 100.00% 100.00% Establishment

Equipment Co. Ltd.(中山海尔暖通设备有

限公司)

Qingdao Haier HV Qingdao Qingdao Manufacture and sale of air 100.00% 100.00% Establishment

Equipment Technology conditioning equipment

Co. Ltd. (青島海尔暖

通设备科技有限公司)

Shanghai Haier Medical Shanghai Shanghai Wholesale and retail of medical 66.87% 66.87% Establishment

Technology Co. Ltd. facility

Qingdao Haier Qingdao Qingdao Development and sales of 100.00% 100.00% Business

Technology Co. Ltd. software and information combination

product under common

control

Qingdao Haier Qingdao Qingdao Entrepreneurship investment 100.00% 100.00% Establishment

Technology Investment and consulting

Co. Ltd.Qingdao Casarte Smart Qingdao Qingdao Development production and 100.00% 100.00% Establishment

Living Appliances Co. sales of appliances

Ltd.Qingdao Haichuangyuan Qingdao Qingdao Sales of home appliances and 100.00% 100.00% Establishment

Appliances Sales Co. digital products

Ltd.Haier Overseas Electric Qingdao Qingdao Sales of home appliances 100.00% 100.00% Establishment

Appliance Co. Ltd. international freight

forwarding

Haier Group (Dalian) Dalian Dalian Sales of home appliances 100.00% 100.00% Business

Electrical Appliances international freight combination

Industry Co. Ltd. forwarding under common

control

Qingdao Haier Central Air Qingdao Qingdao Production and sales of air and 100.00% 100.00% Establishment

Conditioning Co. Ltd. refrigeration equipment

Chongqing Haier Home Hefei Hefei Sales of home appliances 100.00% 100.00% Establishment

Appliance Sale Hefei

Co. Ltd.Qingdao Weixi Smart Qingdao Qingdao Intelligent sanitary ware 85.00% 85.00% Establishment

Technology Co. Ltd.

222 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Haier U+smart Intelligent Beijing Beijing Software development 100.00% 100.00% Establishment

Technology (Beijing)

Co. Ltd.Haier (Shanghai) Shanghai Shanghai Sales research and 100.00% 100.00% Establishment

Electronics Co. Ltd. development of home

appliances

Shanghai Haier Zhongzhi Shanghai Shanghai Business management 100.00% 100.00% Establishment

Fang Chuang Ke consulting chuangke

Management Co. Ltd. management

Qingdao Haier Smart Qingdao Qingdao Production and sales of kitchen 85.82% 85.82% Establishment

Kitchen Appliance Co. smart home appliances

Ltd.GE Appliance (Shanghai) Shanghai Shanghai Sales of home appliances 100.00% 100.00% Establishment

Co. Ltd.Qingdao Haier Special Qingdao Qingdao Production and sales of home 100.00% 100.00% Establishment

Refrigerating Appliance appliances

Co. Ltd.Shanghai Zhihan Shanghai Shanghai Promotion of technological 100.00% 100.00% Establishment

Technology Co. Ltd. development

(上海摯瀚科技有限公

司)

Laiyang Haier Smart Laiyang Laiyang Production and sales of home 100.00% 100.00% Establishment

Kitchen Appliance Co. appliances

Ltd.Hefei Haier Air Hefei Hefei Production and sales of home 100.00% 100.00% Establishment

Conditioning appliances

Electronics Co. Ltd.Haier (Shanghai) Home Shanghai Shanghai Research and development of 100.00% 100.00% Establishment

Appliance Research home appliances

and Development

Center Co. Ltd.Haier (Shenzhen) R&D Shenzhen Shenzhen Development research and 100.00% 100.00% Establishment

Co. Ltd. technical services of

household and commercial

electrical

Guangzhou Haier Air Guangdong Guangdong Manufacturing of refrigeration 100.00% 100.00% Establishment

Conditioner Co. Ltd. and air conditioning

equipment

Qingdao Yunshang Yuyi Qingdao Qingdao IoT technology research and 60.00% 60.00% Establishment

IOT Technology Co. development

Ltd.Qingdao Jijia Cloud Qingdao Qingdao R&D and sales of lighting 80.00% 80.00% Establishment

Intelligent Technology appliances

Co. Ltd.Qingdao Haimeihui Qingdao Qingdao Leasing and business services 100.00% 100.00% Establishment

Management

Consulting Co. Ltd.(青島海美匯管理諮詢

有限公司)

Wuxi Yunshang Internet Wuxi Wuxi Internet of Things technology R 100.00% 100.00% Establishment

of Clothing Technology & D

Co. Ltd. (無錫云裳衣

聯网科技有限公司)

Qingdao Haidacheng Qingdao Qingdao Develop purchase and sell 100.00% 100.00% Establishment

Procurement Service electrical products and

Co. Ltd. components

Guangdong Haier Guangzhou Guangzhou Scientific research and 76.72% 76.72% Business

Intelligent Technology technology service sector combination not

Co. Ltd. (廣東海尔智 under common

能科技有限公司) control

Haier Smart Home Co. Ltd. Interim Report 2025 223Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Beijing Haixianghui Beijing Beijing Scientific research and 100.00% 100.00% Establishment

Technology Co. Ltd. technology service sector

(北京海享匯科技有限

公司)

Haier Smart Home Qingdao Qingdao Technology development of 100.00% 100.00% Establishment

Experience Cloud smart home products whole

Ecological Technology furniture customization etc.Co. Ltd. (海尔智家体驗云生態科技有限公

司)

Haier Smart Home Qingdao Qingdao Technical services 100.00% 100.00% Establishment

(Qingdao) Network Co. development consulting

Ltd. (海尔智家（青島） transfer etc.网絡有限公司)

Haier Smart Home Qingdao Qingdao Residential interior decoration 100.00% 100.00% Establishment

(Qingdao) Network professional construction

Operation Co. Ltd. (海 operation special equipment

尔智家（青島）网絡运 installation upgrading and

營有限公司) repair etc.Qingdao Internet of Wine Qingdao Qingdao Urban distribution and 100.00% 100.00% Establishment

Technology Co. Ltd. transportation services

(青島酒聯网物聯科技 import and export of goods

有限公司) technology import and

export and food business

etc.Qingdao Linghai Air Qingdao Qingdao Manufacture and production of 100.00% 100.00% Establishment

Conditioning air conditioner and

Equipment Co. Ltd. refrigeration equipment

(青島菱海空調設备有

限公司)

Qingdao Haixiangxue Qingdao Qingdao Professional intermediary 100.00% 100.00% Establishment

Human Resources Co. activities

Ltd. (青島海享学人力

資源有限公司)

Jiangxi Haier Medical Jiangxi Jiangxi Wholesale and retail of medical 100.00% 100.00% Establishment

Technology Co. Ltd. equipment

Qingdao Haizhi Shenlan Qingdao Qingdao Technical service development 100.00% 100.00% Establishment

Technology Co. Ltd.Qingdao Haishengze Qingdao Qingdao Air conditioning equipment 100.00% 100.00% Establishment

Technology Co. Ltd. technical services

Qingdao Hailvyuan Qingdao Qingdao Electrical and electronic 100.00% 100.00% Establishment

Recycling Technology products waste treatment

Co. Ltd.Qingdao Haier HVAC Qingdao Qingdao Manufacture and sale of 75.00% 25.00% 100.00% Establishment

Equipment Co. Ltd. air-conditioners

(青島海尔暖通空調设

备有限公司)

Qingdao Haier Home AI Qingdao Qingdao Integrated service of AI 100.00% 100.00% Establishment

Industry Innovation industry application system

Center Co. Ltd. (青島海尔家庭人工智能產

業創新中心有限公司)

Zhejiang Weixi IoT Zhejiang Zhejiang IoT application service 100.00% 100.00% Establishment

Technology Co. Ltd.(浙江衛玺物聯科技有

限公司)

Qingdao Haier Quality Qingdao Qingdao Inspection and testing of home 100.00% 100.00% Business

Inspection Co. Ltd. appliance combination

(青島海尔質量檢測有 under common

限公司) control

224 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Qingdao Haiyongcheng Qingdao Qingdao Product certification service 100.00% 100.00% Business

Certification Service combination

Co. Ltd.(青島海永成 under common

認證服務有限公司) control

Qingdao Zhonghai Borui Qingdao Qingdao Home appliance testing and 100.00% 100.00% Business

Testing Technology technology consulting combination

Service Co. Ltd.(青島 under common

中海博睿檢測技術服 controls

務有限公司)

Qingdao Haier Special Qingdao Qingdao Manufacture and sale of 100.00% 100.00% Business

Plastic Development refrigerator doors combination

Co. Ltd. under common

controls

Qingdao Haizhiling Air Qingdao Qingdao Software development and sale 100.00% 100.00% Establishment

Conditioning of daily necessities

Engineering Co. Ltd.(青島海智菱空調工程

有限公司)

Haier Smart Home Qingdao Qingdao Promotion of energy-saving 100.00% 100.00% Establishment

(Xiongan Hebei) technology

Technology Co. Ltd.(海尔智家科技(河北雄

安)有限公司)

Qingdao Ruibo Qingdao Qingdao Environmental and AI 89.13% 89.13% Establishment

Ecological technology consulting

Environmental

Technology Co. Ltd.(青島瑞博生態環保科

技有限公司)

Qingdao Sanyiniao Qingdao Qingdao Technology service and 100.00% 100.00% Establishment

Technology Co. Ltd. advertisement design

(青島三翼鸟科技有限

公司)

Qingdao Jingzhi Recycle Qingdao Qingdao Operation of dangerous waste 100.00% 100.00% Establishment

Environmental

Technology Co. Ltd.(青島鯨智再生環保科

技有限公司)

Qingdao Yunshang Qingdao Qingdao Professional cleaning and sale 51.00% 51.00% Establishment

Jieshen Yilian of daily necessities

Technology Co. Ltd.(青島云裳洁神衣聯科

技有限公司)

Shanghai Yunshang Yuyi Shanghai Shanghai Professional cleaning and sale 100.00% 100.00% Establishment

IoT Technology Co. of daily necessities

Ltd. (上海云裳羽衣物

聯科技有限公司)

Shijiazhuang Yunshang Shijiazhuang Shijiazhuang Professional cleaning and sale 51.00% 51.00% Establishment

Yilian Technology Co. of daily necessities

Ltd. (石家庄云裳衣聯

科技有限公司)

Nanjing Yunshang Yilian Nanjing Nanjing Professional cleaning and sale 80.00% 80.00% Establishment

Technology Co. Ltd. of daily necessities

(南京云裳衣聯科技有

限公司)

Shanxi Yunshang Yilian Shanxi Shanxi Professional cleaning and sale 51.00% 51.00% Establishment

Technology Co. Ltd. of daily necessities

(山西云裳衣聯科技有

限公司)

Haier Smart Home Co. Ltd. Interim Report 2025 225Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Tianjin Yunshang Yilian Tianjin Tianjin Professional cleaning and sale 51.00% 51.00% Establishment

Technology Co. Ltd. of daily necessities

(天津云裳衣聯网科技

有限公司)

Chengdu Yunshang Chengdu Chengdu Professional cleaning and sale 80.00% 80.00% Establishment

Meier Yilian Technology of daily necessities

Co. Ltd. (成都云裳美

尔衣聯科技有限公司)

Qingdao Haier Smart Qingdao Qingdao Manufacture research and 100.00% 100.00% Establishment

Dishwasher Co. Ltd. development and sales of

(青島海尔智慧洗碗机 home appliances

有限公司)

Qingdao Haixiangmian Qingdao Qingdao Sale of food and daily 100.00% 100.00% Establishment

Technology Co. Ltd. necessities

(青島海享眠科技有限

公司)

Qingdao Haier Kitchen Qingdao Qingdao Technology service and sale of 100.00% 100.00% Establishment

IoT Technology Co. daily necessities

Ltd. (青島海尔厨聯网

物聯科技有限公司)

Tibet Haifeng Intelligent Tibet Tibet Development of software and 100.00% 100.00% Establishment

Innovation Technology medical equipment

Co. Ltd. (西藏海峰智

能創新科技有限公司)

Qingdao Haixiangzhi Qingdao Qingdao Manufacturing of home 100.00% 100.00% Establishment

Technology Co. Ltd. appliances

(青島海享智科技有限

公司)

Qingdao Haier Qingdao Qingdao Manufacturing of home 100.00% 100.00% Establishment

Refrigeration Appliance appliances

Co. Ltd. (青島海尔制

冷电器有限公司)

Chongqing Haier Chongqing Chongqing Manufacturing of home 100.00% 100.00% Establishment

Washing Appliance appliances

Co. Ltd. (重庆海尔洗

涤电器有限公司)

Tonghai Energy Beijing Beijing Technology development 84.32% 84.32% Business

Technology service combination not

Development Co. Ltd. under common

(同海能源科技發展有 control

限公司)

Qingdao Haier Youyang Qingdao Qingdao Technology development 51.00% 51.00% Establishment

Technology Co. Ltd. service

(青島海尔有養科技有

限公司)

Qingdao Haier Yikang Qingdao Qingdao Technology development 100.00% 100.00% Establishment

Technology Co. Ltd. service

(青島海尔益康科技有

限公司)

Qingdao Haier Smart Qingdao Qingdao Manufacturing of home 100.00% 100.00% Establishment

Dishwasher Co. Ltd.(青島海尔智慧洗碗机

有限公司)

Zhongshan Haier HV Zhongshan Zhongshan appliances 100.00% 100.00% Establishment

Equipment Co. Ltd.(中山海尔暖通设备有限

公司)

Qingdao Haier HV Qingdao Qingdao Manufacturing of home 100.00% 100.00% Establishment

Equipment Technology

Co. Ltd. (青島海尔暖

通设备科技有限公司)

226 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Principal place of % of voting

Name of subsidiary business Place of registration Nature of business Shareholding right Method

Direct Indirect

Jingzhou Haier Jingzhou Jingzhou Renewable Energy Recycling 100.00% 100.00% Establishment

Environmental

Protection Material

Technology Co. Ltd.(荆州海尔环保材料科

技有限公司)

Jingzhou Haizhi Cycle Jingzhou Jingzhou Renewable Energy Recycling 100.00% 100.00% Establishment

Technology Co. Ltd.(荆州海智循环科技有

限公司)

Qingdao Haier Qingdao Qingdao Renewable Energy Recycling 51.00% 51.00% Establishment

Environmental

Protection Material

Technology Co. Ltd.(青島海尔环保材料科

技有限公司)

Haier Jingling Technology Zhejiang Zhejiang Technology development 66.00% 66.00% Establishment

(Zhejiang) Co. Ltd.(海 service

尔景龄科技（浙江）有

限公司)

Qingdao Haiyi Wenhua Qingdao Qingdao Park Management Service 95.56% 95.56% Establishment

Commercial

Management Co. Ltd.(青島海逸文华商業管

理有限公司)

Microenterprises such as All over the country All over the country Sales of home appliances Establishment

Qingdao Hai Heng

Feng Electrical

Appliances Sale &

Service Co. Ltd.Reasons for including subsidiaries which the Company has 50% or less of the equity into

the scope of consolidated financial statements:

At the end of the reporting period the Company had substantial control over the finance

and operation of companies like Qingdao Hai Heng Feng Electrical Appliances Sale &

Service Co. Ltd which were included into the scope of consolidated financial statements.

(2) Material non-wholly owned subsidiaries

□ Applicable √ Not Applicable

Haier Smart Home Co. Ltd. Interim Report 2025 227Section VIII Financial Report

2. Transactions leading to the change of shareholding in subsidiaries but not losing

the control

√ Applicable □ Not Applicable

(1) Description of changes in the share of owners’ equity in subsidiaries:

√ Applicable □ Not Applicable

Capital contribution by minority shareholders of the subsidiary of the Company leads to

changes in the Company’s shareholding ratio.

(2) Impact of the transactions on minority interest and the equity attributable to

shareholders of the Company:

Items Amount

Total Consideration for acquisition/disposal 2153437783.43

Less: share of net assets of subsidiaries in respect to the

shareholding proportion acquired/disposed 2152502266.28

Difference –935517.15

Including: adjustment to decrease capital reserve –304169114.78

3. Interests in joint ventures and associates

√ Applicable □ Not Applicable

(1) Joint ventures and associates

Principal place of Place of Nature of Accounting treatment

Name of joint venture and associates business registration Nature of business business of investment

Haier Group Finance Co. Ltd Qingdao Qingdao Financial services 42.00% Equity method

Bank of Qingdao Co. Ltd Qingdao Qingdao Commercial Bank 8.19% Equity method

Wolong Electric (Jinan) Motor Co. Ltd. Jinan Jinan Motor Manufacturing 30.00% Equity method

Qingdao Hegang New Material Technology Qingdao Qingdao Steel plate manufacturing 23.94% Equity method

Co. Ltd. (青岛河钢新材料科技股份有限

公司)

Qingdao Haier SAIF Smart Home Industry Qingdao Qingdao Venture Capital 63.13% Equity method

Investment Center (Limited Partnership)

Mitsubishi Heavy Industries Haier (Qingdao) Qingdao Qingdao Manufacturing of home 45.00% Equity method

Air-conditioners Co. Ltd. appliances

Qingdao Haier Multimedia Co. Ltd. Qingdao Qingdao R&D and sales of 20.20% Equity method

television

Baoshihua Energy Technology Co. Ltd. Beijing Beijing Technology service 20.00% Equity method

(宝石花能源科技有限公司) development

Zhengzhou Highly Electric Appliance Co. Zhengzhou Zhengzhou Manufacture and sale of 49.00% Equity method

Ltd. (郑州海立电器有限公司) press

228 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

Principal place of Place of Nature of Accounting treatment

Name of joint venture and associates business registration Nature of business business of investment

Zhejiang Futeng Fluid Technology Co. Ltd. Huzhou Huzhou Gas compression 48.00% Equity method

machinery

development and

manufacturing

Hongtong Environmental Technology Guangzhou Guangzhou Machinery and equipment 15.00% Equity method

(Guangzhou) Co. Ltd. development and

(宏通环境技术（廣州）有限公司) manufacturing

Qingdao Haimu Investment Management Qingdao Qingdao Investment management 49.00% Equity method

Co. Ltd.Qingdao Haimu Smart Home Investment Qingdao Qingdao Investment management 24.00% Equity method

Partnership (Limited Partnership)

Qingdao Guochuang Intelligent Household Qingdao Qingdao Development of home 35.51% Equity method

Appliance Research Institute Co. Ltd. appliances

(青岛国创智能家电研究院有限公司)

Guangzhou Heying Investment Partnership Guangzhou Guangzhou Investment 49.00% Equity method

(Limited Partnership)

Qingdao Home Wow Cloud Network Qingdao Qingdao Home online service 22.10% Equity method

Technology Co. Ltd

Bingji (Shanghai) Corporate Management Shanghai Shanghai Investment management 45.00% Equity method

Co. Ltd.Shangang Luhai International Logistics Jinan Jinan Logistic service 40.00% Equity method

(Jinan) Co. Ltd.(山港陆海国际物流（济南）有限公司)

Haier Best Water Technology Co. Ltd. Qingdao Qingdao Water equipment 49.00% Equity method

(倍世海尔饮水科技有限公司) technology

development service

Huizhixiangshun Equity Investment Fund Qingdao Qingdao Investment management 30.00% Equity method

(Qingdao) Partnership (Limited

Partnership)

Qingdao RRS Huizhi Investment Co. Ltd. Qingdao Qingdao Investment management 50.00% Equity method

Qingdao Xiaoshuai Intelligent Technology Qingdao Qingdao Information technology 32.13% Equity method

Co. Ltd. development

(青岛小帅智能科技股份有限公司)

Qingdao Xinshenghui Technology Co. Ltd. Qingdao Qingdao Technology service 20.00% Equity method

(青岛鑫晟汇科技有限公司) development

Ningbo Beilian Intelligent Technology Co. Ningbo Ningbo Technology service 35.00% Equity method

Ltd.(宁波贝立安智能科技有限公司) development

Qingdao Oriental Haisheng Technology Co. Qingdao Qingdao Technology service 49.90% Equity method

Ltd. (青岛東方海盛科技有限公司) development

Konan Electronic Co. Ltd Japan Japan Motor Manufacturing 50.00% Equity method

HPZ LIMITED Nigeria Nigeria Manufacturing of home 25.01% Equity method

appliance

HNR (Private) Company Limited Pakistan Pakistan Manufacturing of home 31.72% Equity method

appliance

Controladora Mabe S.A. de C.V. Mexico Mexico Manufacturing of home 48.41% Equity method

appliance

Haier Smart Home Co. Ltd. Interim Report 2025 229Section VIII Financial Report

(1) The basic profile and financial information of important associates

√ Applicable □ Not Applicable

Unit and Currency: RMB

* The basic profile of important associates:

Haier Group Finance Co. Ltd. (hereinafter referred to as “Finance company”) was

established by Haier Group Corporation and its three affiliates. Registration place and

principal place of business: No.178–2 Haier Road Laoshan District Qingdao City. The

Company’s subsidiaries hold an aggregate of 42.00% equity interest in Finance

Company.* Financial information of important associates:

Items Finance company

Closing balance/ Opening balance/

Amount for the Amount for the

current period previous period

Current assets 56917526305.59 55206996489.12

Non-current assets 19491481313.77 20913398205.82

Total assets 76409007619.36 76120394694.94

Current liabilities 56225741230.14 55911360017.96

Non-current liabilities 274745478.17 639275539.37

Total liabilities 56500486708.31 56550635557.33

Minority interests

Equity attributable to shareholders of the parent

company 19908520911.05 19569759137.61

Including: share of net assets calculated per

shareholding percentage 8361578782.64 8219298837.80

Operating income 573153401.34 931067464.94

Net profit 898763418.72 677251560.13

Other comprehensive income –1645.28 17229.38

Total comprehensive income 898761773.44 677268789.51

Dividend received from associates for the year 235200000.00 235200000.00

230 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

(2) Summarized financial information of insignificant joint ventures and associates

Closing balance/ Opening balance/

Amount for the Amount for the

Investment in associates current period previous period

Bank of Qingdao Co. Ltd. 3764246964.41 3473162128.86

Wolong Electric (Jinan) Motor Co. Ltd. 197806527.66 198467631.66

Qingdao Hegang New Material Technology Co. Ltd.(青岛河钢新材料科技股份有限公司)344972463.63342315345.52

Qingdao Haier SAIF Smart Home Industry Investment

Center (Limited Partnership) 191276594.86 191276594.86

Mitsubishi Heavy Industries Haier (Qingdao)

Airconditioners Co. Ltd. 770422412.45 698845993.61

Qingdao Haier Multimedia Co. Ltd. 88300000.00 88300000.00

Baoshihua Energy Technology Co. Ltd.(宝石花能源科技有限公司)29723148.5931132443.76

Zhengzhou Highly Electric Appliance Co. Ltd.(郑州海立电器有限公司)98560581.0198560581.01

Zhejiang Futeng Fluid Technology Co. Ltd. 73460549.11 73460549.11

Hongtong Environmental Technology (Guangzhou) Co.Ltd. (宏通环境技术（廣州）有限公司) 6464386.26 6464386.26

Qingdao Haimu Investment Management Co. Ltd. 2692755.00 2692755.00

Qingdao Haimu Smart Home Investment Partnership

(Limited Partnership) 56749040.79 56749040.79

Qingdao Guochuang Intelligent Household Appliance

Research Institute Co. Ltd.(青岛国创智能家电研究院有限公司)42936225.7640920413.54

Guangzhou Heying Investment Partnership (Limited

Partnership) 132620094.53 132620094.53

Qingdao Home Wow Cloud Network Technology Co.Ltd –25184.86 1083682.47

Bingji (Shanghai) Corporate Management Co. Ltd. 1122845148.33 1095450007.15

Shangang Luhai International Logistics (Jinan) Co. Ltd.(山港陆海国际物流（济南）有限公司)59879950.9758941327.06

Haier Best Water Technology Co. Ltd.(倍世海尔饮水科技有限公司)150493919.92148369638.40

Huizhixiangshun Equity Investment Fund (Qingdao)

Partnership (Limited Partnership) 171896075.25 188907510.60

Qingdao RRS Huizhi Investment Co. Ltd. 4083482.78 4083482.78

Qingdao Xiaoshuai Intelligent Technology Co. Ltd.(青岛小帅智能科技股份有限公司)11703982.529578046.65

Qingdao Xinshenghui Technology Co. Ltd.(青岛鑫晟汇科技有限公司)11964358.9711365227.21

Ningbo Beilian Intelligent Technology Co. Ltd.(宁波贝立安智能科技有限公司)3487924.333724499.78

Haier Smart Home Co. Ltd. Interim Report 2025 231Section VIII Financial Report

Closing balance/ Opening balance/

Amount for the Amount for the

Investment in associates current period previous period

Qingdao Oriental Haisheng Technology Co. Ltd. (青岛

東方海盛科技有限公司)9980000.00

Konan Electronic Co. Ltd 61062612.37 59415065.89

HNR (Private) Company Limited 169600837.60 140530747.42

HPZ LIMITED 11203257.77 11203257.77

Controladora Mabe S.A. de C.V. 5563416529.51 5638478867.77

Middle East Airconditioning Company Limited 7389990.91

Total book balance 13151824639.52 12813489310.37

Total amount of the following financial data of

associates calculated based on shareholding

percentage

— Net profit 504763812.03 629523707.09

— Other comprehensive income 30761854.88 21625261.80

— Total comprehensive income 535525666.91 651148968.89

232 Haier Smart Home Co. Ltd. Interim Report 2025Section VIII Financial Report

XI. SEGMENT REPORT

√ Applicable □ Not Applicable

The Company is principally engaged in manufacture and sales of home appliances and relevant

services business manufacture of upstream home appliances parts distribution of products of third

party logistics and after-sale business.The Company has five business segments: (1) Household Food Storage and Cooking Solutions: mainly

manufacturing and selling refrigerator/freezers and kitchen appliances; (2) Air Solutions: mainly

manufacturing and selling air conditioners; (3) Household Laundry Management Solutions: mainly

manufacturing and selling washing machines and dryers; (4) Household Water Solutions: mainly

manufacturing and selling water home appliances such as water heaters and water purifiers; (5) Other

business: mainly include channel equipment components small home appliance business and others.The management of the Company assesses operating performance of each segment and allocates

resources according to the division. Sales between segments were mainly based on market price.Due to centralized management under the headquarters or exclusion from the assessment scope of

segment management the total assets of segments exclude monetary funds financial assets held for

trading derivative financial assets dividends receivable held-for-sale financial assets other current

assets debt investment long-term accounts receivable long-term equity investment other equity

instruments investment other non-current financial assets goodwill and deferred income tax assets;

the total liabilities of segments exclude long-term and short-term borrowings financial liabilities held for

trading derivative financial liabilities taxes payable interests payable dividends payable held-for-sale

liabilities bonds payable deferred income tax liabilities and other non-current liabilities; profits of

segments exclude financial expenses profit or loss in fair value changes income from investment and

income on disposal of assets Non-value-added tax refundable upon imposition component of other

income non-operating incomes and expenses and income tax.

(1) Information of reportable segments

Segment information for the period

Household Food Storage and

Cooking Solutions

Household Laundry

Management

Segment information Refrigerator/freezers Kitchen appliances Air Solutions Solutions