Midea Records Revenue of CNY 140 Billion in 1H 2020, Twice that of Gree Electric

Consumer Discretionary Author: Yue Liu Editor: Luke Sheehan Aug 31, 2020 02:00 PM (GMT+8)

The gap between Midea and Gree Electric is gradually widening.

Image credit: EqualOcean

On August 30, Midea Group released its first-half financial report of 2020. During the reporting period, the company's revenue reached CNY 140 billion, a year-on-year decrease of 9.47%; net profit was CNY 14 billion, a year-on-year decline of 8.29%.

In terms of products, Midea's HVAC revenue was CNY 64.03 billion, a year-on-year decrease of 10.37%; gross profit margin was 24.20%, a year-on-year decline of 7.88%; consumer electronics business (small appliances, refrigerators, washing machines) revenue was CNY 53.04 billion, a year-on-year decrease of 9.11%; gross profit margin was 31.61 %, an increase of 0.32% year-on-year.

Midea's online channels performed strongly. The company's omnichannel sales exceeded CNY 43 billion, an increase of 30% year-on-year, and it ranked first in all household appliances category on platforms such as JD.com, Tmall and Suning.com.

Midea's online market share of air conditioners was 37.40%, and the offline market share was 34.20%, both increased over the same period last year. The online market share of washing machines was 34.60%, and the offline market share was 27.30%. The online market share of refrigerators is 19%, and the offline market share is 14.30%.

In the field of smart home, data shows that the activation rate of Midea's smart home appliances has increased by 33% from the beginning of 2020. The sampling rate of Midea's smart products in offline channels has reached 78%. Over 10 million households have used Midea's smart home services.