On October 30, Midea Group released its third quarter report for 2023, achieving continuous growth in operating income and profit. According to the report, Midea Group achieved operating income of 94.1 billion yuan in the third quarter, a year-on-year increase of 7.32%, and net profit attributable to the parent company of 9.5 billion yuan, a year-on-year increase of 11.93%. In the first three quarters of this year, Midea Group achieved operating income of 291.1 billion yuan, a year-on-year increase of 7.67%, and net profit attributable to the parent company of 27.7 billion yuan, a year-on-year increase of 13.27%.
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Driven by digitalization, efficiency has been further improved, and the cash cycle has improved significantly. From the beginning of this year to the end of the reporting period, the cash flow generated by the company's operating activities was 44.8 billion yuan, a year-on-year increase of 51.96%.
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The ToB business continues to maintain good growth momentum. From the beginning of this year to the end of the reporting period, the revenue of new energy and industrial technology was 21.3 billion yuan, a year-on-year increase of 25%; the revenue of intelligent building technology was 21.2 billion yuan, a year-on-year increase of 19%; Robotics and automation revenue was 22.9 billion yuan, a year-on-year increase of 17%. The retail revenue of COLMO and Toshiba in the first three quarters exceeded 8.6 billion yuan, a year-on-year increase of 21%.
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Focusing on the strategy of leading science and technology, we will increase investment in robotics and automation, new energy, energy storage and other directions
In the past 28th Science and Technology Month, Midea Group said that it will continue to unswervingly increase investment in scientific research around the leading strategy of science and technology, and further increase the layout and localization of overseas R&D organizations. On the road of ToB transformation, Midea is determined to invest in robotics and automation, intelligent building technology, new energy and energy storage.
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Midea's industrial technology projects of "Research and Application of Key Technologies of Large Displacement and High Efficiency Inverter Scroll Compressors" and "Research and Industrialization of Key Technologies of Integrated Rotor Compressors" have reached the "international leading" as a whole. Welling Auto Parts, a subsidiary of Midea Industrial Technology, quickly built three product lines of automotive-grade thermal management, electric drive system and chassis actuation system, and its shipments in the third quarter increased by 120% quarter-on-quarter and more than three-fold year-on-year. The U.S. Energy Storage Company of CLU Electronics, a subsidiary of Midea Industrial Technology, was officially unveiled, further consolidating its industry position in overseas markets.
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Midea Intelligent Building Technology officially released the self-developed Kunyu modular maglev inverter centrifugal chiller in the third quarter, providing a greener and more intelligent solution for multiple construction fields such as hotels, commerce, and offices. In addition, the smart operation and maintenance platform of water turbines officially released in the third quarter has functions such as online networking, multi-terminal access, project permission configuration, ensuring the stable operation of equipment, one-click repair, operation report and optimization suggestions, etc., and can also provide local intelligent services in no-signal scenarios.
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In the automation and robotics sector, KUKA's 125th anniversary celebration was successfully held in Augsburg, and Dr. Gu Yanmin, Vice President of Midea Group and Chairman of the Supervisory Board of KUKA Group, said that KUKA plays an important role in the development of Midea Group, and as a long-term investor, Midea will continue to support KUKA. In the third quarter of this year, KUKA released the fifth-generation heavy-duty robot series "KR FORTEC-2 ultra", which adopts a unique design of innovative 2-3 axis double-arm structure connection, which can be widely used in new energy batteries, automobile manufacturing, aviation and other fields. The KUKA KMP 1500P heavy-duty autonomous mobile robot has been certified by TüV Rheinland.
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Strengthen the global breakthrough strategy and spin off the H-share listing to help the brand internationalize
On October 24, Midea Group Co., Ltd. formally submitted a listing application to the Hong Kong Stock Exchange. At present, Midea Group has 31 R&D centers and 40 major production bases around the world. Based on the Group's development strategy, the IPO funds are mainly used to support long-term basic technology research and expand the scale of the global R&D team. develop smarter, higher-end, and greener smart home products; the continuous construction of intelligent manufacturing system and the upgrading of supply chain management; It is used to increase overseas sales of its own brands and expand and upgrade its global sales network.
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In terms of sales volume and revenue in 2022, Midea Group is currently the world's largest home appliance company, ranking first in both online and offline channels in Chinese mainland in six categories, including household air conditioners and desktop microwave ovens. In terms of production volume in 2022, Midea Group's home appliance compressor business ranks first in the global market, with a global market share of 44%. KUKA Group, a subsidiary of Midea Group, is one of the world's four largest industrial robot companies, ranking second in sales of heavy-duty robots in 2022. In the first half of 2023, Midea Group's foreign revenue was 80.536 billion yuan, accounting for 40.88% of its total revenue. With the H-share listing, Midea Group is expected to further promote brand internationalization and increase the proportion of overseas revenue.
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Helping the green and low-carbon transformation The green recycling target for the whole year of 2023 was completed ahead of schedule in the third quarter
In terms of green strategy practice, the 2023 green electricity action was officially launched in September this year, and the green subsidy of 100 million yuan, the home appliance recycling system and Meiyun sales opened up the function of "home" recycling, and provided users with the service ability of "dismantling, sending and assembling". Up to now, the smart home business group has collected more than 2.6 million units through all channels, and has completed the annual green recycling target for 2023 ahead of schedule. In October this year, Ande Zhilian VMI smart warehouse was awarded the national first-class green warehouse authoritative certification by virtue of its core advantages such as energy conservation and emission reduction, resource recycling, and empowerment of user value improvement. The integrated transportation and packaging services from parts offline to factory transportation to VMI warehouse storage, and then according to production needs, JIT distribution to the factory online and the whole process of recyclable weekly packing can be used to achieve paperless, efficiency improvement and carbon reduction, saving an estimated 350,000 cartons per year, and reducing carbon emissions by a total of 5,499 tons. In addition, Midea's carbon footprint platform has been recognized by TüV SüD, an international authoritative third-party testing and certification organization, and China Household Electrical Appliances Research Institute, empowering green services with Midea's experience, working with the value chain to reduce carbon emissions, and adding professional strength to calculate carbon footprint and achieve carbon neutrality.
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On October 29, Midea Group won the 4th "IFF Global Green Finance Award - Annual Award" in recognition of Midea Group's outstanding contributions to promoting green transformation, addressing climate risks and achieving sustainable goals globally or nationally through financial means. Midea Smart Industry won the annual Influential Sustainable Industrial Solution, which adopts a unified digital base and modular design of IoT hardware products and software platforms, which can realize the flexible combination between various sectors.
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