(Yicai) March 28 -- Haier Smart Home's stock price fell despite the Chinese home appliance giant announcing all-time high profit and revenue for last year, alongside a generous annual dividend and a new share buyback plan.

Shares of Haier Smart Home [SHA: 600690] dropped 3.2 percent to close at CNY27.16 (USD3.70) each today, while the benchmark Shanghai Composite Index fell 0.7 percent.

Net profit jumped 13 percent to CNY18.7 billion (USD2.5 billion) in the 12 months ended Dec. 31, the Qingdao-based company, which owns brands such as Casarte, Leader, and Aqua, said in its annual report released yesterday. Revenue rose 4 percent to CNY286 billion (USD38 billion), while net operating cash flow increased 5 percent to CNY26.5 billion.

Refrigerators and washing machines were the top product segments by sales, rising 2 percent to CNY83.2 billion and 3 percent to CNY63 billion, respectively, and accounting for more than half of the firm’s entire income. Other best-sellers included air conditioners and kitchen appliances.

“Haier Smart Home has leveraged factors like consumers' shift towards high-end and smart home appliances, the Chinese trade-in policy, and brand synergies to meet the evolving demand of the market,” it said.

China introduced a consumer goods trade-in program last March to stimulate consumption and economic growth, with subsidies for trading in old items, particularly home appliances, vehicles, and digital products.

Overseas markets contributed more than 50 percent of Haier Smart Home's revenue. North America remained the largest foreign market at CNY79.5 billion, followed by Europe at CNY32.1 billion. Emerging markets are becoming key revenue drivers, with South Asian sales exceeding CNY11.5 billion. 

The company noted that the Indian market “performed particularly well,” as sales jumped by more than 30 percent to over USD1 billion for the first time. It aims to double sales there to USD2 billion by 2027, Yicai learned at the recent Appliance and Electronics World Expo in Shanghai.

To reward investors, the company intends to pay an annual dividend of CNY9.65 (USD1.30) per 10 shares (including tax) for last year, amounting to CNY9 billion or 48 percent of its annual net profit.

Haier Smart Home also revealed a plan to repurchase between CNY1 billion and CNY2 billion of its own stock over the next 12 months. The buyback will proceed as long as the purchase price does not exceed CNY40 per share, which represents a 43 percent premium over the previous day's closing price.

The repurchased shares, equivalent to about 0.3 percent to 0.5 percent of the company’s total equity, will be allocated for employee incentive programs.

In a separate announcement yesterday, Haier Smart Home also revealed plans to invest CNY1.8 billion (USD237.5 million) in a new factory in its home city. 

The facility, expected to produce three million washing machines and dryers annually, mainly for markets in eastern and central China, with some exports to Europe and Australia. Construction work is set to begin this month, with operations slated to start in December next year. The estimated payback period is nearly seven years. 

Editors: Tang Shihua, Emmi Laine