On August 30, Midea Group officially released its 2023 semi-annual performance report. According to the report, Midea Group's total operating income in the first half of the year reached 197.8 billion yuan, of which the total revenue in the second quarter reached 101.2 billion yuan, breaking the 100 billion mark for the first time and setting a record high for Midea's revenue in a single quarter. The ToC, ToB and innovative businesses have grown rapidly, and the contribution of ToB business to Midea has steadily increased.
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Stable profitability drives growth Revenue in the second quarter exceeded 100 billion, a record high
In the first half of the year, Midea Group firmly established its business philosophy, effectively implemented the annual business principle of "stable profitability and driving growth", continued to focus on core businesses and products, further improved core indicators such as profitability and cash flow, and made breakthroughs in the overall operating situation on the basis of meeting expectations, continuing the long-term trend of Midea's business resilience and high-quality growth.
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During the reporting period, Midea Group achieved a total operating income of 197.8 billion yuan, a year-on-year increase of 7.69%, and a net profit attributable to the parent company of more than 18.2 billion yuan, a year-on-year increase of 13.98%. Among them, the net operating cash flow in the first half of the year exceeded 29.8 billion yuan, a year-on-year increase of 39.22%.
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In terms of B-end business, Midea's industrial technology revenue in the reporting period was 13.6 billion yuan, a year-on-year increase of 12%, building technology revenue in the reporting period was 14.8 billion yuan, a year-on-year increase of 21%, and robotics and automation revenue in the reporting period was 15.2 billion yuan, a year-on-year increase of 24%.
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The smart home business continued to lead, and its market share increased steadily. According to the data of Aowei cloud network, in the first half of the year, Midea's products ranked first in the industry in the domestic online and offline market share of 7 categories, including household air conditioners, desktop pan microwaves, desktop ovens, electric heaters, induction cookers, electric kettles, and electric fans. Among them, Midea's e-commerce sales accounted for more than 48% (including e-commerce sinking), deepening its layout and achieving new growth on interest e-commerce platforms. During the "618" period, the total sales of Midea's entire network ranked first in the industry for 11 consecutive years, with a year-on-year increase of more than 50%, and the total transaction volume (GMV) of Douyin e-commerce exceeded 1 billion yuan for the first time, ranking first in the home appliance industry. In addition, Midea continued to promote the "COLMO + Toshiba" dual-high-end brand strategy, and the overall retail sales of dual-high-end brands increased by 22% year-on-year in the first half of 2023.
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In the first half of the year, Midea's overseas business achieved scale growth and stable profitability, and its operational resilience was improved, with overseas revenue accounting for 40.88% and the gross profit margin of overseas business increasing by 3.3%. Facing the first-tier market, we will continue to pre-position overseas business organizations, improve the organizational team building in overseas regions, continuously optimize the talent system, and integrate localized talents and international talents. Midea Group continues to promote the construction of production bases in Brazil and Mexico, among which the new washing machine production line of the Egyptian production base and the home air conditioning plant in Thailand have been successfully put into operation, further enhancing the competitiveness of overseas markets.
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The contribution of the B-end core business to the Group's revenue has increased steadily
The leading position in the field of core components of consumer appliances continues to be solid. According to industry online data, the global market share of household air conditioning compressors increased to 46% in the first half of the year, continuing to rank first in the world. The global sales share of household air conditioning motors was 42%, maintaining the leading position in the industry.
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In the field of green energy, Midea Industrial Technology completed the acquisition of CLU Electronics, and Hekang New Energy increased the layout of household photovoltaic and household energy storage categories, realizing the layout of the whole value chain from energy supply, energy allocation, energy consumption, energy regulation and control, and energy management. Among them, CLU Electronics actively participates in the related projects of the State Grid and China Southern Power Grid, increases the expansion of overseas markets, and achieves a substantial year-on-year increase in overseas orders.
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Midea's industrial technology has deepened the layout of incremental components for smart transportation, and quickly built three major systems of thermal management, electric drive system and chassis execution system for automotive-grade new energy vehicles, and has eight existing product lines in mass production, such as electric compressors, drive motors, and EPS steering motors. In the first half of the year, the total sales volume of products reached 150,000 units, a year-on-year increase of more than 3 times. In terms of technological breakthroughs, the company innovatively launched the "Thermal Management Integrated Module" (large integration) and the first rotor electric compressor of A00; In terms of market expansion, 11 new fixed-point customer cooperation projects were added, and the self-developed 800V silicon carbide high-speed electric compressor products continued to gain more recognition from new customers, covering the full range of models of many mainstream car enterprise customers.
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In the first half of the year, according to industry online data, Midea's central air conditioning domestic market share continued to maintain the first place, of which it led the domestic brand in the multi-online market, with a market share of 21%; According to the data of "Central Air Conditioning Market", Midea's market share in core products such as centrifugal units and screw units is in the first place among domestic brands; In the overseas market, according to industry online data, Midea's central air conditioning export scale accounts for more than 27%, ranking first in the industry. In terms of product development, Midea Building Technology has released a number of new products to consolidate its business territory, involving HVAC, building automation and elevators, including the self-developed 8KW energy storage thermal management liquid cooling unit, marking the breakthrough of Midea Building Technology's energy storage thermal management products from 0 to 1.
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KUKA China's production and delivery reached a record high, and continued to promote product and technological innovation, launching new series of robots such as KR CYBERTECH AND KR QUANTEC to adapt to multiple scenarios and market segments. On the production capacity and supply chain side, the second phase of Midea's KUKA Intelligent Manufacturing Science and Technology Park (Shunde, Guangdong) was fully put into operation in May this year, with a planned annual production capacity of up to 100,000 units, which will comprehensively promote the localization of robot supply and support the automation and digital transformation of the manufacturing industry.
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Deepen the transformation of the ToB business model through the promotion of industry-wide solutions
Deepen the transformation of the ToB business model, based on the "1+3+N" ("1" is the smart home business group, "3" is the industrial technology, building technology and robotics and automation, and "N" is a number of innovative businesses) business structure that Midea has formed, facing customers in the whole industry, promoting the upgrade from traditional hardware product portfolio to scenario-based solutions, further expanding the sales scale and brand power in the ToB engineering market, and optimizing and adjusting the existing customers, products and business structure. Improve the overall profitability of the business value chain. In addition to the home appliance industry, through the construction and promotion of industry-wide solutions, we are also engaged in collaborative sales in building technology, robotics and automation, and other innovative businesses.
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Among them, in the field of intelligent manufacturing, it supports the localization and localization development of industrial robots as the core, relies on the Meiqing industrial Internet platform to help enterprises realize digital and intelligent production, intelligent operation and maintenance and digital services, and continues to carry out cross-industry and cross-field empowerment through the platform's business integration and application innovation capabilities, driving the coordinated development of the whole industry chain, and the Meiqing industrial Internet platform has been widely used in more than 50 subdivisions and serving more than 1,000 enterprises. At the same time, it focuses on building comprehensive solutions for new energy vehicle manufacturing, continues to deepen cooperation with leading customers, and provides various products, system integration and services in a wide range of industrial fields.
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In the field of medical and health care, we cooperate with Midea Medical's Wandong Medical, KUKA Medical, Midea Biomedical, Swisslog Medical, Midea Building Technology and other medical industry consortia to achieve business cooperation with key customers in various regions, create Midea's medical benchmark projects, continue to promote the integration of Midea's medical channels in various sectors, realize information exchange, business opportunity sharing, and channel sharing for medical customers, and promote the improvement of delivery quality, efficiency, and service, so as to help the medical industry complete the intelligent upgrade of hospitals.
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In the second half of the year, Midea will continue to unswervingly promote high-quality development, continuously achieve business breakthroughs, and explore new methods, new models, new products and new capabilities. On the product side, we continued to strengthen the adjustment of product structure, the development of new categories and the breakthrough of weak categories; On the channel side, efforts will be made to promote the expansion of new regions, the use of new methods, and the development of new business formats such as interest e-commerce; On the operational side, we have always adhered to the control of operational risks and expenses, balanced investment and returns, achieved profitable growth, and optimized cash flow. Midea will firmly invest in the future, drive sustainable development with technological innovation, optimize industrial structure and corporate governance, and steadily enhance the core competitiveness of the enterprise.