Haier Electronics Group Co Ltd

Summary (from latest annual report – 2014)

• Total equity  : 1.85 billion USD
• Market Cap is 36.2 billion HKD = 4.67 billion usd ( last price of the stock is 13.48 HKD)
• Haier Electronics Group Co Ltd is an investment holding company. The Company and its subsidiaries are engaged in the research, development, manufacturing and sale of washing machines and water heaters under the brand name of "Haier"
• Company has 1.65 billion USD in cash on account
• Total equity – cash on account = 1.85 billion usd – 1.65 billion usd = 200 million usd
• In 2014 short-term debt was zero, long – term debt was 289 million usd                                   (In 2013 company had 25 million usd short-term debt , long-term debt was 115 million usd)
• Haier balance sheet has become stronger  in 2014 (In latest annual report - total equity increased to 1.85 billion  USD from 1.24 in 2013, total debt was 289 million usd in 2014)
• Company's revenue increased in 2014 to 10.7 billion usd from 9.9 billion in 2013
• Net income increased in 2014 to 393 million USD from 327 million usd in 2013
• In 2014 company paid 34 million usd dividend to its shareholders

Haier Electronics Group Subsidiaries

Haier Electronics Group Co., Ltd. is an investment holding company. Through its subsidiaries, the Company is engaged in the manufacture and sale of washing machines and water heaters, as well as the provision of integrated channel services, including the provision of logistics services and distribution of home appliances and other products. The company operates in three segments: Washing Machine business segment - which manufactures and sells washing machines, Water Heater business segment - which manufactures and sells water heaters, and Integrated Channel services segment - which provides logistics, after-sale and other value-added consumer services, as well as sells and distributes home appliances and other products. The Company’s subsidiaries include Qingdao Haier Washing Machine Co., Ltd., Foshan Shunde Haier Electric Co., Ltd., Hefei Haier Washing Machine Co., Ltd. and Foshan Shunde Haier Intelligent Electronic Co., Ltd, Qingdao Goodaymart Lejia Trading Co., Ltd (among others, Haier Electronics Group has more than 60 subsidiaries ).

• The Washing Machine segment worth 450 million usd
• Integrated Channel Services worth 4.1 billion usd
• Water Heater Business worth 100 million usd

Total = 4.65 billion usd

Qingdao Haier Co owns 43.8% shares of Haier Electronics Group Co (worth 2.04 billion usd)

Haier corporate ownership structure:

Haier Electronics Group Co., Ltd is a member company of Haier Group Corporation

Haier Group is a Chinese multinational consumer electronics and home appliances company. It designs, develops, manufactures and sells products including air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions

• In 2012, Haier Group bought the New Zealand appliance manufacturing company Fisher & Paykel for 700 million usd
• In January, 2016 Haier Group acquired General Electric's appliance division for 5.4 billion usd
• Qingdao Haier Co is a subsidiary of Haier Group ( worth 8.6 billion usd)
• Haier Electronics Group Co is a subsidiary of Haier Group ( worth 4.67 billion usd)

Opinion about the company

Fundamentally it is a very  good company and in the future we can expect its growth (Acceptable debt (289 million usd), big amount of cash on company's account, ROE is around 22 %).