Source: Yicai Global Dec. 21

Haier Electronics Group will delist from the Hong Kong stock exchange on Dec. 23, stepping aside to make way for a secondary listing the same day on the HK bourse by its sister company Haier Smart Home as the two firms prepare to merge their home appliance businesses.

The company has received approval from the Bermuda authorities, where it is registered, to go private, Haier Electronics said yesterday.

Parent firm Haier Group plans to merge the household goods business of Haier Electronics, which manufactures washing machines, hot water dispensers and water purifiers, with that of Haier Smart Home, which makes refrigerators, air conditioners and kitchen appliances. Both firms do many deals together and their management overlaps. Merging will enhance their managerial and operational efficiency and better equip them to go toe-to-toe with China’s two other big appliance makers Midea Group and Gree Electric Appliance, an analyst said.

By streamlining their procurement, sales, marketing and other channels, the move will also help to optimize the group's overseas business, a major earner, as domestic sales dip.

Haier Smart Home has been expanding aggressively in foreign markets in recent years. It took over the white goods business of Japan’s Sanyo Electric in 2011, New Zealand’s appliance maker Fisher and Paykel in 2012, the US’ General Electric’s home appliance unit in 2017 and Italian household appliance brand Candy in 2018.

Its overseas net profit surged 58 percent in the third quarter from the same period last year while revenue leapt 17.5 percent. However, in the first three quarters, overall profit dropped 17.23 percent year on year to CNY6.3 billion (USD961.8 million). Revenue was up 2.78 percent to CNY154.4 billion (USD23.6 billion).