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On August 19, Midea Group, a leading enterprise in the field of home appliances and intelligent manufacturing in China, released its 2024 interim performance report. In the first half of 2024, the Company achieved significant growth in both revenue and net profit, delivering excellent results to the market.
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According to the report, in the first half of 2024, Midea Group achieved revenue of RMB 217.274 billion, a year-on-year increase of 10.30%. Net profit attributable to shareholders of the listed company reached RMB 20.804 billion, reflecting a 14.11% rise. Despite uncertainties in the external environment, Midea Group still managed to achieve remarkable performance, showing out the Company’s strong comprehensive strength and operational resilience.
Development Ascended in Overseas Business, while Global Layout Further Improved
In the first half of 2024, Midea Group accelerated its global expansion, continuously deepening and expanding its international business layout. Midea’s original brand manufacture (OBM) business experienced rapid growth, with OBM revenue accounting for over 40% of its overseas smart home business revenue in 2023, demonstrating strong competitiveness. Among them, the OBM of overseas e-commerce business saw accelerated growth, with e-commerce sales revenue increasing by more than 50% year-on-year in the first half of 2024. The Company maintained a leading position in core category advantage in online channels in multiple countries, with multiple products listed on the Amazon's bestseller list.
At the same time, Midea Group accelerated investment and scale expansion of overseas R&D centre, integrated global R&D resources to build complementary advantages in global technological research and development. The Company continuously promoted a “diverse, equitable, and inclusive” (DEI) corporate culture, enhanced the building of overseas local talent teams, continuously integrated localisation talents into the system of internationalisation and optimisation talents, and optimised its talent system to ensure continuing development of overseas business.
Moreover, Midea Group continued to expand its overseas manufacturing layout, promoted the smooth production of four national manufacturing bases and the construction of new plants in four production bases. The Company also promoted collaborative support between domestic and overseas plants in the manufacturing end, bolstering its global supply chain capabilities as well as enhancing global competitiveness.
To date, Midea Group operates 17 overseas R&D centers in 10 countries and has 22 out of 43 major production bases located abroad, achieving global production and delivery and fully capitalizing on growth opportunities in overseas markets.
While maintaining rapid business expansion, Midea Group also accelerated the development of its overseas smart home industry and improved user experience. In the first half of 2024, the new registered overseas users of the MSmartLife App exceeded 1 million and its registered users reached 3.1 million, and the average monthly active users increased by nearly 150% year-on-year.
Additionally, Midea Group also advanced differentiated product technologies to enhance product competitiveness. In the first half of 2024, for the European air conditioning market, Midea rolled out the industry’s first user-DIY PortaSplit portable split air conditioner. The product boasts an innovative, self-developed multi-scenario-adapted mounting bracket and a cooling and heating effect far beyond traditional portable air conditioners with its energy efficiency reaching the EU A++ level and the operation noise is far lower than that of traditional portable air conditioners. It has won a number of international awards, such as the iF Design Award, and has been praised by overseas professional media, such as Germany’s EMT Evaluation Magazine and The Verge, a U.S. technology medium. For North America’s heating needs, Midea rolled out a modular heat pump air duct for cold weather. With the industry’s first quick-dismantle modular structure, it can replace the traditional gas heater through direct installation with a smaller size. The energy efficiency of the product reaches the leading level of the U.S. CEE Advanced Tier standard, and enables 100% output of heating performance at low temperatures down to -15?, being an alternative solution to most gas heaters, thereby further enhancing Midea’s brand influence.
Attaching Great Importance to Environmental and Social Responsibility, Established a Positive Corporate Image Globally
Midea Group’s commitment to advanced ESG principle is one of its core values and a cornerstone of its long-term development.
For many years, Midea attaches great importance to environmental and social responsibility, striving for sustainable development. In the first half of 2024, Midea implemented 1,415 energy-saving and carbon-reduction projects, with an expected annual energy-saving and carbon-reduction benefit of approximately RMB 171.62 million.
Midea Group's unwavering commitment to ESG (Environmental, Social, and Governance) is underscored by its adherence to the UN Women's Empowerment Principles and an A2 Moody's credit rating, showcasing financial stability. The company's innovative edge is reflected in its cutting-edge manufacturing, including 3 zero-carbon, 9 5G-enabled, and 5 World Lighthouse Factories. Recognized globally, Midea Group has consistently ranked in the Fortune Global 500, securing the 277th spot in 2024, and as the 205th company in the 2024 Forbes Global 2000 list, alongside being rated the 236th most valuable brand by Brand Finance, affirming its strong global brand presence and market influence.
Thanks to its outstanding performance in ESG, Midea Group has received widespread recognition and acclaim within the industry. It was successfully included in the “Fortune China ESG Influential List 2024” and was recognized as one of the exemplary ESG cases by “Forbes China ESG Inspiration Cases 2023,” highlighting its excellence and industry leadership in environmental, social, and corporate governance aspects, as well as establishing a positive corporate image in the global market.
Overall, in the first half of 2024, Midea Group achieved impressive results in the face of intense market competition through a series of strategic business adjustments, proactive market expansion, and effective execution. In the second half of the year, the Company will steadfastly pursue its OBM priority strategy, actively seek business growth opportunities, and expand comprehensively into overseas markets, striving to become an international enterprise and deliver satisfying products and services to global consumers.
