2023-08-30-深交所-美的集团_2023年半年度报告（英文版）_268页_3mb

Midea Group 2023 Semi-Annual Report Summary

Core Content Overview

This document presents the 2023 Semi-Annual Report of Midea Group Co., Ltd., which is listed on the Shenzhen Stock Exchange with the stock code 000333. The report covers key financial results, business strategies, industry trends, corporate governance, and environmental and social responsibilities for the period from 1 January 2023 to 30 June 2023.

Key Financial Results

H1 2023 vs H1 2022

Non-recurring Gains and Losses

• Total Non-recurring Gains and Losses (after tax): 580,438 RMB'000
• Breakdown:
  • Gain/Loss from disposal of non-current assets: 8,525 RMB'000
  • Fair value changes related to financial assets: 25,019 RMB'000
  • Other non-recurring items (government grants, impairment reversals, etc.): 639,381 RMB'000
  • Less: Corporate income tax: 85,263 RMB'000
  • Minority interests (after tax): 7,224 RMB'000

Corporate Profile

• Legal Representative: Fang Hongbo
• Company Name (Chinese): 美的集团股份有限公司
• Company Name (English): Midea Group Co., Ltd.
• Abbreviation (English): Midea Group
• Headquarters: Midea Headquarters Building, No. 6 Midea Avenue, Beijiao Town, Shunde District, Foshan City, Guangdong Province, China
• Contact Details:
  • Board Secretary: Jiang Peng
  • Representative for Securities Affairs: You Mingyang
  • Tel. (Board Secretary): 0757-22607708
  • Tel. (Securities Affairs): 0757-23274957
  • Fax: 0757-26605456
  • Email: IR@midea.com

Business Segments and Strategic Focus

Midea operates in five main business segments:

1. Smart Home Business Group: Focuses on smart appliances, smart home, and related industries, with an emphasis on intelligent scenarios, user operations, and data value discovery.
2. Industrial Technology Business Group: Driven by technology, covering intelligent transportation, industrial automation, green energy, and consumer appliances. Key brands include GMCC, Welling, HICONICS, etc.
3. Building Technologies Division: Provides building-related products and services via the iBUILDING platform, covering HVAC, elevators, energy, and building control.
4. Robotics & Automation Division: Offers industrial robotics, automatic logistics systems, and solutions for health, entertainment, and new consumption.
5. Other Innovation Businesses: Includes new ventures such as Annto (supply chain solutions), Midea Cloud (industrial software), Midea Lighting, WDM (medical imaging), and Midea Finance.

The company's strategic focus is on Technology Leadership, Direct to Users, Digitization & Intelligence Driven, and Global Impact.

Industry Position and Performance

Domestic Market Share (H1 2023)

Online Market Share (H1 2023)

Industry Overview

• Domestic Economy Recovery: The GDP increased by 5.5% year-on-year in the first half of 2023.
• Home Appliance Industry Growth: Domestic retail sales of home appliances reached RMB613.8 billion, with a 2.8% increase in domestic sales and a 5.2% increase in exports.
• Product Upgrades: There is a trend toward green, intelligent, and health-conscious product development, with features like air purification, dehumidification, and sterilization becoming more common.
• Market Trends:
  • Air Conditioners: Domestic retail sales reached RMB90.7 billion, up 16% year-on-year. Midea introduced new products like kitchen air conditioners and air machines.
  • Laundry Appliances: Domestic retail sales were RMB29.6 billion, down 1.3% year-on-year. Front-loading products dominated with over 65% market share.
  • Refrigerators: Domestic retail sales were RMB43.2 billion, up 1% year-on-year. Large-capacity refrigerators and multi-door models saw growth.
  • Kitchen Appliances: Domestic retail sales reached RMB95.7 billion, up 2.8% year-on-year. Dishwashers and integrated stoves saw notable growth.
  • Water Heaters: Domestic retail sales were RMB25.5 billion, up 1.4% year-on-year. Large-capacity models dominated.
  • Water Purifiers: Domestic retail sales were RMB13.3 billion, up 0.6% year-on-year. High-flow rate models and integrated functions (e.g., heating) gained traction.
  • Small Domestic Appliances: Domestic retail sales were RMB57.97 billion, down 1.5% year-on-year. Robot cleaners and floor scrubbers saw improved functions and user experience.

Key Strategic Highlights

• Midea maintains a leading position in the domestic home appliance market.
• The company has no plans for cash dividends, bonus shares, or capital reserve conversion.
• The report is available in both Chinese and English, with the Chinese version taking precedence in case of discrepancies.
• Midea is ranked No. 278 on the Fortune Global 500 and No. 199 on the Forbes Global 2000, demonstrating its global influence.
• It has been recognized as a top ESG company and top female-friendly company by Forbes.
• Midea has received excellent credit ratings from S&P, Fitch, and Moody's, with S&P rating it "A" for the highest private manufacturer rating in China.

Corporate Governance and Environmental Responsibility

• The report includes corporate governance details and environmental and social responsibility sections, emphasizing Midea's commitment to sustainability and ESG practices.
• The company has 200 subsidiaries, 31 R&D centers, and 40 manufacturing bases, with operations spanning over 200 countries and regions.
• Midea uses 22 currencies for international settlements and has a global platform with significant resources and capabilities.

Conclusion

Midea Group continues to demonstrate strong financial performance and strategic innovation in the first half of 2023. With a diversified business portfolio and a focus on technology leadership, digital transformation, and global expansion, the company is well-positioned to lead in the evolving home appliance and industrial technology markets. Its commitment to ESG practices, sustainability, and user-centric innovation reinforces its market leadership and long-term growth potential.