Research on the Financial Performance of Haier Smart Home and Strategies for Improvement in the Context of the Digital Economy

Purpose - For the manufacturing industry, digital transformation and development are essential future trends and requirements for the manufacturing industry, serving as the internal driving force for achieving sustainable development. After 40 years of development, Haier Smart Home Co., Ltd. has consistently focused on the home appliance sector, continually refining its business model, embracing digital transformation, and enhancing its overall performance. Design/Methodology/Approach - Through the financial data from 2014 to 2023, this paper analyzes and researches the four dimensions of solvency, operating ability, profitability, and growth ability, assesses the financial performance of Haier Smart Home, searches for more efficient operation methods. Findings - Haier Smart Home initially benefited from the rapid development of the digital economy from 2014 to 2018. However, after 2018 with the rapid development of the digital economy Haier Smart Home instead lagged behind the development of the digital era. In order to enhance financial performance, corresponding countermeasures are proposed to optimize the enterprise capital structure, establish diversification strategies, and improve the competitive advantage of digital products. Research Implications - This paper examines the relationship between China’s digital economic development and the growth process of Haier’s smart home and proposes corresponding improvement countermeasures for existing problems, providing a reference for the development of other home appliance manufacturing enterprises.