Summary of Key Points
Haier Smart Home held a shareholders' meeting in Qingdao, where resolutions on financial reports, profit distribution, and share repurchase were passed. Chairman Li Huagang unveiled a medium- to long-term plan known as the "Three Growth Curves" and announced that this year's share repurchase volume will be five times that of last year, while the number of shares to be cancelled will be ten times more. The market responded positively, with the A-share price rising by over 4% during trading on the following day. The article suggests that Haier Smart Home's willingness to increase shareholder returns during tough industry times stems from its competitive edge in its core markets, a clear path for future growth, and a strong confidence in its own development.
Key Actions at the Shareholders' Meeting: Tangible Benefits for Shareholders
The most notable aspect of the shareholders' meeting was the company's commitment to rewarding shareholders. This year, Haier plans to repurchase approximately 5 billion yuan worth of shares (compared to just 1 billion last year) and cancel more than 150 million shares (up from about 15 million last year). The dividend payout ratio is set to increase to 55% in 2025 and to over 60% by 2027-2028. Based on the current stock price, the dividend yield for shareholders has already exceeded 5%, and management has also invested its own funds in purchasing company shares.
These actions are not merely promises; repurchasing and canceling shares reduces the total number of outstanding shares, making each remaining share more valuable for shareholders. For example, if ten people were originally sharing a certain amount of money, with fewer shares, each person gets a larger portion. Management's increased holdings also bind their interests to those of shareholders, meaning they share both gains and losses. The market recognized this commitment, as evidenced by the 4% increase in the stock price the following day.
Core Markets: Haier Gaining Share in Tough Times
The home appliance industry is facing challenges this year: domestic retail sales decreased by 8.8% in May, and overseas operations are dealing with issues such as tariffs, exchange rate fluctuations, and rising freight costs. However, Haier Smart Home is expanding against the trend in its three main markets—North America, China, and Europe:
- North America: While most competitors are struggling to make a profit or even losing money, GE Appliances under Haier not only continues to be profitable but has also significantly increased its market share.
- China: Haier leads in the white goods market (refrigerators, washing machines, air conditioners) both online and offline, with market shares increasing by 3.1% and 1.4%, respectively.
- Europe: Haier has climbed to among the top three players in the industry, with continuous growth in refrigerator and washing machine market shares.
The article points out that during times of restructuring, leaders have the opportunity to widen their lead. While others are focusing on coping with difficulties, Haier is busy expanding its market share, thereby widening the gap between itself and its competitors.
Three Growth Curves: A Roadmap for Profit Growth Over the Next 10 Years
Investors are concerned about how Haier will grow in the future, and the company has provided three clear strategies:
1. Strengthening the Foundation: Moving from selling individual appliances to offering a "smart home ecosystem"—for example, a refrigerator that can connect with a washing machine and air conditioner, even suggesting grocery purchases. The focus is on providing a convenient lifestyle experience for the entire family, not just a single product.
2. Expanding into New Areas: Haier's large-scale heating, ventilation, and cooling business generated 72.4 billion yuan last year. The company is expanding beyond household air conditioners to smart buildings and commercial refrigeration, targeting both individual consumers (C-end) and corporate clients (B-end), thus opening up a larger market with potential for additional growth.
3. Investing in the Future: Haier is focusing on AI and home robotics, a market expected to be worth trillions of yuan. The company has already demonstrated robots that can peel bananas and automatically complete washing and drying tasks. With existing home scenarios, sales channels, and supply chains, Haier has a solid foundation for this new growth area.
These strategies form a comprehensive approach: strengthening the core business while exploring new opportunities and laying the groundwork for future growth.
Where Does the Confidence Come From? Inner Resilience + Long-Term Planning
The article highlights two key factors behind Haier's willingness to invest during tough times:
- Inner Resilience: The first-quarter report for 2026 showed a 10% increase in actual profit, excluding temporary factors such as North American tariffs and blizzards, indicating the company's strong operational capabilities.
- Long-Term Advantages: Previous investments in globalization (North America, Europe, China), scenario-based products (smart homes), and diversification (heating, ventilation, robotics) are now yielding results. For example, the increase in overseas market share is not temporary but reflects long-term brand and channel building.
In short, Haier relies on its actual capabilities rather than luck, allowing it to take bold actions such as expanding its market share and rewarding shareholders during difficult times.
Industry Insights: The Survival Logic of Leaders During Restructuring
This article also serves as a reminder to investors: in tough industry periods, it's worth paying attention to leading companies. Leaders have the funds, technology, and channels to seize opportunities when others are struggling. Haier Smart Home is a prime example: while others are contracting or reducing dividends, it is expanding its operations and increasing share repurchases. Such counter-cyclical strategies are crucial for leaders to widen their lead.
Finally, it's important to note that this article is for informational purposes only and does not constitute investment advice. However, the underlying logic is worth understanding: companies with genuine strength will not hide during tough times but will prove their capabilities through action.