Qingdao, Shandong – Haier reported a 30% jump in refrigerator sales last year to CNY 47.1bn ($7.4bn). The business had 32% gross margin, down by 1% from 2016.
Overall the world’s largest home appliance maker recorded CNY 159bn revenue in 2017, up by 34% from 2016. Net profit jumped 37% to CNY 6.9bn.
According to the company’s annual report, in 2017 China’s refrigerator market saw a 3.7% rise in sales volume compared with negative growth in 2016. The value of sales value climbed 9.8%, thanks to the China market’s ‘structural upgrade.’
Smarter, greener products contributed to the increases. Sales of refrigerators priced over CNY 10,000 in the China market jumped 60% last year. Sales of refrigerators priced over CNY 15,000 grew by 221%, said the annual report.
In 2017 Haier accounted for 32% of China’s refrigerator market in sales value, up by 3.4% from 2016, followed by Midea with a nearly 13% share.
The company also raised its high-end refrigerator revenue by 37% in Europe last year with strong growth in the rest of the Asia markets. Its refrigerator capacity at the Russia plant was doubled to meet higher demand.