On April 28, Midea Group officially released its 2022 annual report and 2023 first quarter results. According to the announcement, in 2022, the company's total operating income will be 345.7 billion yuan, a year-on-year increase of 0.7%, and the net profit attributable to the parent company will be 29.6 billion yuan, a year-on-year increase of 3.4%. In the first quarter of 2023, Midea Group achieved a total operating income of 96.6 billion yuan, a year-on-year increase of 6.3%; The net profit attributable to the parent company was 8 billion yuan, a year-on-year increase of 12.0%.
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In 2022, Midea Group will firmly adhere to the business principle of "reasonable revenue and profit recovery", and its strategic layout has also taken new steps. In the past year, Midea Group has stabilized and improved profitability through the improvement of product strength and core technologies in the ToC field, providing strategic support for the transformation of ToB business. At the same time, it will promote Midea's breakthrough from a Chinese localized enterprise to a global enterprise, and accelerate the layout and growth of overseas business.
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COLMO, a high-end smart home brand, has grown by 90%, and the "second engine" continues to make efforts to achieve incremental creation
In terms of ToC business, relying on the "Digital One Strategy" of the core home appliance business, Midea Group has further become a leader in smart home product innovation by promoting the integration of technological innovation and household appliances. According to the data of Aowei Cloud Network, in 2022, Midea's six categories, including household air conditioners, desktop pan microwaves, desktop ovens, electric heaters, induction cookers, and electric kettles, will rank first in the industry in terms of domestic online and offline market share. Among them, the dual high-end brands of COLMO and Toshiba are a highlight of Midea's smart home business. According to the data of Midea Group's 2022 annual report, COLMO's overall retail sales in 2022 exceeded 8 billion yuan, a year-on-year increase of 90%. According to the data of Aowei Cloud Network, the proportion of COLMO products in the high-end market will increase significantly in 2022, of which the offline high-end market of drinking water products will account for more than 65%.
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In 2022, while focusing on the upgrading of ToC business stock, Midea Group grasped the development and opportunities in the context of domestic and international dual circulation, responded to the national "dual carbon" goal, achieved incremental creation for ToB transformation, and firmly ignited the "second engine". According to the data of the 2022 annual report, the revenue of the industrial technology business group was 21.6 billion yuan, a year-on-year increase of 7.5%; The revenue of the Building Technology Division was 22.8 billion yuan, a year-on-year increase of 15.7%; The Robotics and Automation Division reported revenue of 27.7 billion yuan, a year-on-year increase of 9.6%.
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Midea's industrial technology business group continues to explore in the fields of smart transportation and green energy, and further consolidates its leading position in the fields of consumer appliances and industrial automation. According to the annual report data, the global market share of household air conditioning compressors has increased to 44%, ranking first in the world, and the sales of heat pump heating compressors have increased by 50% year-on-year. In addition, in terms of the core components of new energy vehicles, the first batch of 800V silicon carbide (SiC) 12,000rpm electric compressors have been mass-produced worldwide, and in the field of green energy, it has continued to deploy in the whole value chain of "source, grid, load and storage".
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At present, Midea Building Technology has 6 major product manufacturing bases and 5 innovative R&D centers in the world, and its sales network covers the global market, forming the largest professional smart building product matrix and service network with complete product series in China. In the domestic market, according to the 2022 annual data of Industry Online, Midea's central air conditioning domestic market share continues to maintain the first place, among which it leads the domestic brand in the multi-online market, with a market share of more than 18%. According to the data of "Central Air Conditioning Market", Midea's market share of air-cooled screw units and water-cooled screw units is in the first place among domestic brands, and the annual sales of centrifuges exceed 1,600 units, ranking first among domestic brands. In the overseas market, according to industry online data, Midea will account for 29% of China's total central air conditioning exports in 2022, ranking first, among which Midea's exports of air source heat pump products will increase by more than 160% year-on-year.
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In 2022, KUKA China received and delivered a record number of orders. According to the analysis of MIR Rui Industry, the share of KUKA China's domestic shipments of industrial robots in China will reach 8% in 2022, and it will continue to deepen cooperation with leading customers of new energy vehicles. Last year, KUKA's first fully automated production line for the production of heavy-duty robots in China was officially put into use, which is the first "robot production robot" production line in Guangdong Province and has become a benchmark for industrial intelligent manufacturing. In addition, KUKA also actively assists Midea Group in improving its intelligent manufacturing level. By the end of 2022, Midea's robot usage density has reached 500 units per 10,000 people, and it will further increase investment in the next two years to achieve the goal of 700 units per 10,000 people.
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In 2022, the R&D investment will exceed 12 billion yuan to build a global innovation ecosystem and scientist system
In the past five years, Midea Group has invested more than 50 billion yuan in R&D, including more than 12 billion yuan in 2022, hitting a record high. At present, Midea Group has set up 35 research centers in 12 countries around the world, with more than 20,000 R&D personnel, and has established a global R&D scale advantage through the "2+4+N" global R&D network. In China, the Global Innovation Center of Shunde Headquarters and the Shanghai Global Innovation Park are the core; Overseas with the United States, Germany, Japan, Italy four full-category R&D centers as the mainstay, give full play to the advantages of location technology, integrate global R&D resources, form complementary advantages of global technology R&D capabilities, drive talent density and thickness with leading science and technology strategy, and build a global R&D layout.
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As of the end of 2022, Midea Group has 10 national enterprise technology centers, industrial design centers and postdoctoral research workstations, 19 long-term cooperative academicians and 8 academician workstations (rooms), and more than 60 provincial and ministerial enterprise technology centers, engineering centers, design centers or key laboratories, achieving competitive advantages in the industry with scientific and technological strength. Driven by the strategy of leading science and technology, the innovation platform, as the core of the technological innovation system, is responsible for the implementation of the company's technology development strategy, promotes the transformation and application of technological innovation achievements, and helps Midea Group accelerate its transformation into a global technology group.
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In addition, Midea Group continues to deepen the research and development of artificial intelligence (AI) technology and comprehensively promote the application of intelligent technology. According to the company's annual report, Midea's AI Innovation Center will continue to make efforts and achieve application breakthroughs in the four major directions of AI-enabled smart home, AI-empowered smart manufacturing, AI-empowered smart healthcare, and home service robots in 2022.
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Overseas market revenue accounted for 41.5% Accelerate the promotion of the "China for the global + regional for the region" model
At present, Midea is unswervingly promoting "global breakthroughs" and further promoting global business layout. According to the company's 2022 annual report, Midea Group's overseas revenue reached 142.6 billion yuan, a year-on-year increase of 3.6%, and its overseas business covers more than 200 countries and regions in North America, South America, Europe, Asia, Africa, and Oceania. In 2022, through continuous cultivation of overseas e-commerce business, Midea's e-commerce sales revenue increased by 14% year-on-year. It is worth mentioning that by continuously promoting the optimization of product structure, the average price of overseas independent brand products will increase by more than 20% in 2022, among which microwave oven products have achieved breakthroughs in the high-end market, becoming a model for Midea's product upgrading in overseas markets.
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In addition, by continuously improving the overseas manufacturing layout, Midea is accelerating the "China for the world + regional for the region" model. In 2022, the construction and operation of the new production base in Egypt and the new air-conditioning base in Thailand will be completed and put into operation, further improving the overseas production capacity layout of major home appliance categories, continuing to promote the construction of production bases in Brazil and Mexico to effectively cover the American market, and vigorously promoting the domestic lean manufacturing system and cultivating overseas lean talents in overseas manufacturing bases to improve global manufacturing efficiency and delivery capabilities.
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Midea Group has now become a global technology group integrating five major sectors: smart home, industrial technology, building technology, robotics and automation, and innovative business, and has formed a "1+3+N" business structure with ToC business and ToB business going hand in hand, and innovative business growing rapidly. In 2023, Midea Group will adhere to the annual business principle of "stable profitability and driven growth" based on the four strategic axes with leading technology as the core, stabilize the core business, establish the second curve, boldly go to every corner of the world, and achieve global breakthroughs.
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