On the evening of October 30, Midea Group released its third quarter report for 2024, and its operating income and profit continued to grow. According to the report, Midea Group achieved operating income of 102.2 billion yuan in the third quarter, a year-on-year increase of 8%, and net profit attributable to the parent company of 10.9 billion yuan, a year-on-year increase of 15%. As of the first three quarters of this year, Midea Group achieved operating income of 320.3 billion yuan, a year-on-year increase of 10%, and net profit attributable to the parent company of 31.7 billion yuan, a year-on-year increase of 14%.
The B-end business achieved continuous growth
The cumulative production and sales of air conditioning compressors reached 1 billion units
Thanks to Midea's firm promotion of industrial upgrading this year, further increasing investment in ToB business, continuous improvement of product strength, and independence of the value chain, the second growth engine has been fully ignited.
The data shows that the ToB business continues to maintain a good growth momentum in the overall business of the United States. In the first three quarters of this year, the revenue of new energy and industrial technology was 25.4 billion yuan; revenue from intelligent building technology was $22.4 billion; The revenue of robotics and automation was 20.8 billion yuan.
Among them, the cumulative production and sales volume of GMCC Meizhi air conditioning compressors under New Energy and Industrial Technology reached 1 billion units, and it was certified by the Guinness Book of World Records for "Cumulative Sales of Rotary Compressors". Midea Industrial Technology brought its automation and robotics solutions to the CIIF, and the CDHD2S high-performance servo drive of Gaochuang Transmission won the "CIIF Intelligent Manufacturing Award".
At the same time, based on the support of the iBUILDING digital platform, Midea Building Technology and Alibaba Content Center completed the "cloud-cloud docking" in the third quarter, realizing that all HVAC equipment is "on the cloud", and managers can efficiently manage the multi-online system, greatly reducing operating energy consumption and operating costs.
In the robotics and automation sector, KUKA's performance is still outstanding. At the CIIF, 12 software and hardware products including robots, controllers and teach pendants, pallet stackers and software products were successfully released to serve the entire life cycle of customers' product lines. In addition, the entire range of KUKA robots has passed the L5 certification (CR certification) of Chinese robots, which is at the industry-leading level in terms of safety and reliability, further consolidating KUKA's technological leadership in the robot industry and continuously promoting the high-quality development of the industry.
Accelerate the global layout
Overseas e-commerce sales revenue maintained a 50% growth
In addition to continuing to deepen the development strategy of paying equal attention to the ToC and ToB industries, Midea has made great progress in the pace of "global breakthroughs". During the reporting period, Midea Group was successfully listed on the main board of the Hong Kong Stock Exchange, becoming an "A+H" listed company, accelerating its global layout.
Facing overseas markets, Midea also made a lot of breakthroughs during the reporting period. CLOU Electronics, a subsidiary of New Energy and Industrial Technology, signed a contract for a 105MW/420MWh energy storage project in Chile, which means that the company has made a new milestone in the transformation of its role from an equipment supplier to a system integrator in the overseas energy storage market. During the period, Hekang New Energy launched the "Beautiful Villa" villa green power solution for villa users, which has been delivered to the first household, and will quickly seize the market segment of home independent energy solutions in the future.
The high growth of overseas e-commerce is also helping Midea's overseas OBM priority strategy. At the 2024 IFA exhibition, Midea, Toshiba, COLMO, Eureka and other self-owned brands participated in the exhibition, and newly launched AIECO smart energy-saving solutions, CirQHP Indoor Hybrid heat pump products equipped with hybrid heat pump technology, etc. In terms of specific performance, Midea's overseas e-commerce sales revenue maintained a 50% growth rate in the third quarter, and the Amazon Prime Day promotion increased by more than 35%, which was higher than the industry market.
Thanks to the obvious results achieved by channel breakthroughs. Midea is constantly deepening its cooperation with major global customers. It has successively discussed intelligent manufacturing, sustainable development and market expansion in the Americas with global retailers and reached a strategic consensus. DISCUSSED PRODUCT INNOVATION AND BRAND BUILDING WITH CANADIAN RETAIL GIANT THE BRICK TO STRENGTHEN STRATEGIC COOPERATION.
In terms of user service, Midea continued to build a global three-level spare parts supply chain and expand its service network, achieving a year-on-year increase in the response speed of user-side services by 32%.
Pay attention to ESG construction
The innovative O2O model is applied to trade-in
In addition to the highlights of its performance, Midea is also actively responding to the global trend of sustainable development, attaching great importance to environmental, social and corporate governance (ESG), and taking "green strategy" as an important direction of corporate development.
In October, Midea's washing machine Hefei plant was rated as a "Sustainable Lighthouse Factory" by the World Economic Forum (WEF). This means that Midea's factory has been recognized worldwide in terms of sustainable development, and its declared use cases are leading and meaningful in the world.
In addition, Midea also innovates the O2O model to implement the trade-in, providing solutions with the advantages of full-process digitalization, customer convenience, inclusive small and medium-sized businesses, high audit efficiency, and fast technology implementation, covering more than 98% of provinces and more than 30,000 stores. In addition, Midea has comprehensively promoted customers to enter the cloud warehouse, providing cloud warehousing, cloud distribution, cloud credit, and cloud return rights, improving turnover efficiency, reducing operating costs, and directly benefiting 66,000 customers.