“Midea has established a rapidly growing commercial and industrial solutions business, commercial and industrial solutions business revenue in the total revenue from 18.5% in 2020 to more than 26% in 2023, and 2023 revenue of nearly 100 billion yuan, commercial and industrial solutions has become one of the main engines of continued growth of Midea business.” On the afternoon of April 7, Fang Hongbo, chairman and president of the United States Group (000333), said at the 2023 annual performance presentation.

HMS01.1N-W0054-A-07-NNNN Previously, the 2023 annual report released by the United States Group showed that the company achieved operating income of 372.037 billion yuan in 2023, an increase of 8.18%; Net profit of 33.72 billion yuan, up 14.1% year-on-year; Basic earnings per share of 4.93 yuan, the best operating performance in history.

In terms of business segments, To B business has become an important contribution to the performance growth of Midea Group, and the new energy and industrial technology segment achieved revenue of about 27.9 billion yuan, an increase of about 29%. The robot and automation segment achieved revenue of about 31.1 billion yuan, an increase of about 12%. The smart building technology segment achieved revenue of about 25.9 billion yuan, an increase of about 14% year-on-year.

Fang Hongbo introduced at the performance presentation that Midea has a diversified business of commercial and industrial solutions, providing integrated solutions to customers in many industries. In terms of horizontal expansion, continue to enrich product categories and expand scale and increase efficiency advantages; In terms of vertical expansion, we continue to develop iterative compressors, motors and other industrial core components and enter cutting-edge technology fields through acquisitions, such as servo systems, industrial robots, etc., and create industrial synergies through horizontal and vertical expansion.

HMS01.1N-W0054-A-07-NNNN Fang Hongbo also mentioned that the Midea Group’s Kuka Group’s revenue and profit reached a record high in 2023, and the revenue contribution of Kuka China rose from 15% in 2020 to more than 22% in 2022, with the business performance in China particularly outstanding.

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In terms of marketing, Jiang Peng, Dong secretary of the United States Group, said that in 2023, the United States domestic market e-commerce sales accounted for more than 50% (including e-commerce sinking), and continued to promote the upgrading of scene sets and trend category breakthroughs in e-commerce channels, strengthen the operation of different subdivisions, deepen the layout of interested e-commerce platforms and achieve continuous breakthroughs. At the same time, it actively laid out the new retail market (sinking market), achieved the overall share of the core new retail channel platform ranked first in the industry, fully entered the new retail stores, and the product coverage rate exceeded 98%

At the production end, Jiang Peng introduced the latest progress of Midea Group’s digital factory construction: In the field of supply chain and manufacturing, the company supported the integrated operation of global HMS01.1N-W0054-A-07-NNNN plans and orders through the integrated supply chain platform (ISC), which contributed more than 150 million yuan in revenue, and improved the efficiency of the whole value chain to save 100,000 hours; Promote the compliance and control of the end-to-end work process of overseas supply chains, and increase the work efficiency of price verification, supporting and system personnel by 15%; Based on reliability reverse analysis to achieve dynamic inspection of incoming materials, a number of overseas factories to achieve online assembly and production scheduling, bulk parts (KD) one-click order proportion increased to 98%, to achieve domestic and overseas KD key material quality traceability, real-time production progress visibility, abnormal time warning, etc., working hours reduced by 30%.

In 2023, Midea Group’s overseas operating income was about 150.9 billion yuan, an increase of 5.79%, accounting for 40.38% of the total revenue. Jiang Peng said that the company continued to expand overseas manufacturing layout, accelerated the “China for the world + regional for regional” model, and promoted the construction of manufacturing bases in Brazil, Indonesia, Italy, Thailand, India, Mexico, Egypt and other countries; At the same time, the overseas manufacturing system 632 project was launched to achieve the standardization of manufacturing process and data management, and the first phase of the project has been completed and launched.

In March this year, The State Council issued the “Promote large-scale equipment renewal and consumer goods for new action plan”, for the view of the policy, Jiang Peng responded that the company will pay close attention to the relevant policies, and actively respond to the national call, continue to promote consumer goods for new.

In October last year, Midea Group also submitted an application to the Hong Kong Stock Exchange to issue H shares and list on the main board of the Hong Kong Stock Exchange. An investor asked about the progress of the company’s issuance of H shares, Fang Hongbo said that the issue is still subject to the approval, approval or filing of relevant government agencies, regulators and stock exchanges such as the China Securities Regulatory Commission, the Hong Kong Securities and Futures Commission and the Hong Kong Stock Exchange, and the matter is still uncertain. The Company will fulfill the obligation of information disclosure in a timely manner according to the progress of the matter.