Thanks to the continued improvement of the economy, the steady expansion of domestic demand, and the steady development of the home appliance industry, Midea Group's net profit in 2023 broke through the 30 billion yuan mark, reaching a record high.

On Wednesday, March 27, after Haier Smart Home, Midea Group, one of the “Big Three White Power Companies,” also released financial reports for the year ending December 31, 2023. Financial reports show that in 2023, Midea Group's total revenue was 373.7 billion yuan, up 8.18% year on year, and net profit to mother increased 13.95% year over year to 33.7 billion yuan.

Midea Group stated in its financial report that the dividend plan is to distribute cash of 30 yuan for every 10 shares to all shareholders.

The board of directors of Midea Group stated:

“Midea's business focus in 2024 is improving the efficiency of operation and structural growth and upgrading of the entire value chain. The world has experienced many economic crises. The most critical factor for all enterprises to cope with the crisis and market downturn is to maintain sufficient cash resources and liquidity, maintain excellent operating advantages at low cost and high efficiency, and maintain core business competitiveness. Midea must firmly promote business model upgrading, structural upgrading and industrial upgrading, and respond to uncertain environments and changes with strategic certainty.”

Eight categories have the largest domestic market share, and the HVAC business is growing steadily

In 2023, with the continuous improvement of the external environment, the scale of exports and domestic sales of the domestic home appliance industry grew.

According to data from Aowei Cloud Network, among the eight categories of household air conditioners, desktop microwave ovens, electric heaters, electric fans, induction cookers, electric kettles, and air fryers, American products rank first in the domestic online and offline market share in the industry.

In terms of revenue, the HVAC business is still the main source of revenue, accounting for 43.31% of total revenue, reaching 161.11 billion yuan, achieving a year-on-year increase of 6.9%; consumer appliances increased 7.51% year over year to 134.69 billion yuan; robotics, automation systems and other manufacturing businesses grew the most, surging 25% year over year to 37.26 billion yuan.

By region, domestic revenue accounted for 60%, recording 221.13 billion yuan, a year-on-year growth rate of 9.87%; overseas revenue increased 5.79% year-on-year to 15.9 billion yuan.

According to the report, in 2023, the Midea Group will be user-centered, focus on scenario-based product layout, give full play to Midea's multi-category advantages and use digital means to continuously promote the optimization of the entire value chain and achieve business scenarios, products and service upgrades.

Increased R&D investment and obtained more than 4,000 patents throughout the year

Midea Group insists on increasing investment in R&D to achieve leading results, leading trends, increasing industry influence, and improving the R&D environment through leading investment.

By the end of 2023, Midea had 16 national science and innovation platforms, including national key laboratories, national artificial intelligence open innovation platforms, national industrial design centers and enterprise technology centers, postdoctoral research workstations, etc.; 70 provincial and ministerial science and innovation platforms, including provincial and ministerial enterprise technology centers, engineering technology research centers, industrial design centers or key laboratories.

While engaging in core technology research, Midea continues to increase the dissemination of R&D results. By the end of 2023, it maintained more than 80,000 patent licenses, and obtained more than 4,000 invention patents worldwide throughout 2023.

Accelerating retail transformation, domestic e-commerce accounts for more than half of sales

In 2023, Midea Group will deepen channel transformation and transformation, continue to improve channel efficiency, reshape retail service capabilities, and achieve e-commerce sales accounting for more than 50% in the domestic market. The group continues to promote scenario package upgrades and breakthroughs in trend categories in this channel, strengthen channel management in different segments, and deepen the layout and achieve continuous breakthroughs in interest-based e-commerce platforms.

During the “618” and “Double 11” promotions in 2023, the total sales volume of Midea's entire network ranked first in the industry for 11 consecutive years.

On the first-line sales side, the Midea Group has completed the full categorization, front-loading, and retail upgrade of more than 17,000 stores, built more than 8,000 digital retail benchmark stores, and promoted retail operation transformation through the Free Meiyunping App. The average daily page visits (PV) of the Meiyun App increased by more than 100% over the same period last year.