Approaching Hong Kong Listing, ToB Business Transformation Gains Momentum
In the first three quarters of this year, Midea Group achieved significant growth, with operating revenue totaling CNY 291.1 billion, marking a 7.67% increase from the previous year. Additionally, net attributable profit showed a remarkable upswing to CNY 27.7 billion, which is a 13.27% surge year-on-year.
The company noted that its digitalization strategy led to enhanced efficiency and a marked improvement in cash turnover. From the start of the year until the end of the reporting period, the company experienced a 51.96% year-on-year increase in cash flow from operating activities, reaching CNY 44.8 billion. The surge in cash flow was primarily driven by the sale of goods and provision of labor services.
During recent years, Midea Group has made impressive strides by actively revamping its ToB business. From the start of this year until the end of the reporting period, the revenue for new energy and industrial technology amounted to CNY 21.3 billion, marking a 25% increase year-over-year. Additionally, revenue generated from intelligent building technology totaled CNY 21.2 billion, exhibiting a 19% increase year-over-year. Furthermore, revenue obtained from robotics and automation reached CNY 22.9 billion, increasing by 17% year-over-year.
In addition, Midea's ToC high-end brands, COLMO and Toshiba, exhibited robust growth momentum, generating over 8.6 billion yuan in retail revenues during the first three quarters, marking a 21% year-on-year increase.
Midea's strategic plan envisions listing on the Hong Kong stock market as the next step. Accordingly, Midea Group Inc. applied for listing in Hong Kong on October 24, 2023.
According to Midea Group, the funds raised from the listing will mainly support long-term basic technology research and expand the global research and development team. Additionally, the funds will go towards developing smarter, higher-end and greener smart home products, continuing construction of the smart manufacturing system, upgrading supply chain management, and increasing overseas sales of private brands while expanding and upgrading the global sales network. At present, Midea Group operates 31 research and development centers and 40 major production bases worldwide.
As of October 30's closing bell, Midea Group shares closed at CNY 54.50, up 1.41% for the day.