Futu News reported on August 30 that Haier Electric announced its performance report for the first half of 2019 yesterday evening. Performance was better than market expectations. Haier Electric rapidly strengthened today. As of press release, it is currently up 8.56% to HK$20.3, with provisional transactions of HK$42.934,700, and the latest total market value of HK$56.982 billion.

According to Haier Electric's performance report, for the six months ended June 30, 2019, the company's revenue was 41.18 billion yuan (same unit), down 2.7% year on year; profit attributable to shareholders was 1,806 billion yuan, up 8.2% year on year; basic profit per share was 0.65 yuan; no dividends.

According to reports, revenue from the washing machine business increased by 5.8%. It mainly benefits from Haier washing machine's continuous leadership and innovation in product technology, as well as continuous upgrades in contact networks, social interaction, and user experience. Judging from the driving factors, the average unit price and sales volume of washing machines have both increased. From a brand perspective, Casadi continues to make breakthroughs in technology, maintaining an absolute lead in the high-end market. At the same time, Leader has recorded rapid growth of more than 20% by creating popular products, and continues to lead the young home appliance market.

Revenue from the water heater business increased 5.1%. It is mainly due to the focus and deepening of retail transformation strategies, the expansion and upgrading of various store networks represented by home improvement and building materials channels, and the rapid improvement of online operation capabilities. From a brand perspective, industries such as Casadi thermal waterfall washing and thin electric heating and instant heating led technology to achieve high-end breakthroughs and recorded double-digit growth. Targeting the young fashion user base, Leader has recorded rapid growth of more than 20% through active product and marketing strategies.

The Group's overall gross margin for the first half of 2019 was 17.8%, up 0.9 percentage points from 16.9% in the first half of 2018. The increase in overall gross margin was mainly due to the increase in the share of the washing machine and water heater business with high gross margin and the increase in the gross margin of the washing machine and channel service business.