Midea Group Achieves Record High Q1 Revenue.
On April 29, Midea Group (000333:SZ) resubmitted its prospectus to the Hong Kong Stock Exchange, primarily updating the group's 2023 financial report data. Simultaneously, Midea Group released its Q1 2024 report.
It is understood that in October 2023, Midea Group's shareholders' meeting passed the "Proposal on the Company's Issuance of H Shares and Listing on the Stock Exchange of Hong Kong Limited" and submitted the prospectus to the Hong Kong Stock Exchange. The prospectus indicates that the funds raised this time will be used for the company's global technological research and development, including a focus on long-term basic technological research and product platform innovation projects.
Midea Electric was listed on the Shenzhen Stock Exchange in 1993, and in 2013, Midea Group and Midea Electric merged and were listed on the main board of the Shenzhen Stock Exchange. Subsequently, Midea continuously expanded its territory through mergers and acquisitions, such as the acquisition of Little Swan, KUKA Group, Eureka Forbes, Toshiba Lifestyle, and others. Currently, Midea Group's business mainly includes HVAC, consumer appliances, robot automation systems, and other manufacturing sectors.
According to the prospectus, based on the 2023 sales volume and revenue, it is the world's largest home appliance company, with a market share of 7.9% by sales volume.
In 2023, based on retail sales, the company ranked among the top three globally in the fields of household air conditioners, washing machines, refrigerators, kitchen appliances, and other home appliances, with market shares of 21.1%, 12.5%, 7.7%, and 4.6% respectively, ranking first in household air conditioners and kitchen appliances and other home appliances.
In addition, based on the 2023 production volume, the company's household compressor business ranks first in the global market with a market share of 30.3%; based on the 2023 revenue, the company is the largest (market share of 14.3%) commercial air conditioning provider in mainland China and among the top five globally (market share of 6.6%); KUKA Group under the company is one of the world's four major industrial robot companies, with its heavy-duty robot sales volume and revenue ranking second in 2023, with market shares of 18.6% and 17.9% respectively.
In terms of performance, from 2021 to 2023, the company achieved revenues of CNY 343.361 billion, CNY 345.709 billion, and CNY 373.710 billion respectively, and during the same period, achieved annual profits of approximately CNY 29.031 billion, CNY 29.812 billion, and CNY 33.747 billion respectively.
According to Midea Group's Q1 2024 report, the company's revenue reached CNY 106.102 billion, a year-on-year increase of 10.22%; the net profit attributable to the parent company reached CNY 9 billion, a year-on-year increase of 11.91%, reaching a new high for a single quarter. Among them, the company's smart building technology revenue was CNY 8.2 billion, a 6% increase year-on-year; new energy and industrial technology revenue was CNY 7.7 billion, a 23% increase year-on-year; robot and automation revenue was CNY 6.7 billion, a 12% decrease year-on-year.
Furthermore, Midea is steadfastly implementing its "Global Breakthrough" strategy, vigorously expanding new channels and markets overseas, and further promoting localization services. In the first quarter of 2024, the overseas e-commerce retail sales achieved a substantial increase, with a year-on-year increase of about 60%, and sales of its own brands in Brazil, Egypt, Malaysia, and the Middle East markets increased by over 50% year-on-year. In addition, Midea's first HVAC showroom in North America officially opened in New York, and it obtained Intertek's first R454B split air conditioning certification and heat pump water heater demand response certification, further enhancing its influence in overseas markets and contributing to global green and low-carbon initiatives.
Midea continues to steadfastly implement its OBM (Original Brand Manufacturing) priority strategy in overseas markets, planning to increase investment by CNY 3 billion to accelerate the development of its overseas own-brand business. It strengthens the full value chain localization layout in research and development, manufacturing, marketing, and services, improves infrastructure and capacity building, enhances its influence and competitiveness, and brings more high-quality products and services to global consumers.
In the first quarter, Midea also appeared at several internationally renowned exhibitions, such as the Kitchen and Bath Industry Show (KBIS) in the United States and the 2024 AHR Expo, displaying its theme "Live Green Live Smart" at the 135th Canton Fair, showcasing a range of its smart home appliances and energy solutions, externally demonstrating its green and low-carbon concept, aiming to provide global users with greener, more energy-efficient, and environmentally friendly products and services.
As of the time of writing, Midea Group's stock price is CNY 69.78 per share, with a total market value of CNY 486.5 billion.