Haier Hits Record RMB302B Revenue as Stock Dips 3.5%

Edgen Stock·Mar 26 2026, 15:28

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Key Takeaways

Haier Smart Home reported record annual revenue and profit for 2025 but saw its stock decline, suggesting the results did not meet market expectations. The company also committed to a multi-year plan to increase its dividend payout ratio, signaling a shift toward enhancing shareholder returns as growth moderates.

Record Revenue Milestone: For the fiscal year 2025, revenue crossed the RMB300 billion threshold for the first time, reaching RMB302.3 billion, a 5.7% year-over-year increase.
Slowing Profit Growth: Net profit grew by a modest 4.4% to RMB19.553 billion, while gross profit expansion slowed to just 1.3%, indicating potential margin pressure that concerned investors.
Enhanced Shareholder Returns: The company raised its 2025 dividend payout ratio to 55% and plans to increase it to at least 60% by 2027, signaling a commitment to returning more capital to investors.

Haier's Revenue Surpasses RMB300B as Profit Growth Slows

Haier Smart Home (06690.HK) announced on March 26 that its revenue for the 2025 fiscal year rose 5.7% to RMB302.329 billion, the first time the appliance giant has exceeded the RMB300 billion mark. However, profitability metrics showed signs of pressure. Net profit attributable to shareholders increased 4.4% to RMB19.553 billion, while gross profit grew by a comparatively sluggish 1.3% to RMB78.955 billion.

The market reacted coolly to the single-digit growth figures. The company's Hong Kong-listed shares fell 3.55% following the announcement. The decline suggests investors had anticipated a stronger performance, and the modest profit expansion was not sufficient to sustain upward momentum for the stock.

Company Commits to 60% Dividend Payout Ratio by 2027

In a move to bolster investor confidence, Haier's management unveiled a more aggressive shareholder return strategy. For 2025, the company declared a final dividend of RMB8.867 per 10 shares, bringing the annual cash dividend payout ratio to 55%. This marks a significant 7 percentage point increase from the previous year.

Looking ahead, Haier outlined a three-year plan to further boost returns. The company aims for a cash dividend payout ratio of no less than 58% for 2026, rising to at least 60% for both 2027 and 2028. This policy shift may attract income-oriented investors and provide a valuation floor for the stock, especially if top-line growth continues to moderate in a competitive global appliance market.