Hong Kong/Shenzhen – Midea Group, one of the world’s leading home appliance manufacturers, announced its 2024 financial results on Thursday, showcasing robust growth across key business segments. The company’s annual revenue reached RMB 409.1 billion, a 9.5% increase year-on-year, while net profit attributable to owners of the company jumped by 14.3% to RMB 38.539 billion.
The results, filed with the Hong Kong Stock Exchange, highlight Midea’s successful diversification strategy and its increasing focus on high-growth sectors. The company’s gross profit margin improved from 25.5% to 26.2%, and the net profit margin rose from 9% to 9.5%, indicating enhanced operational efficiency.
Key Highlights from the Report:
- Smart Home Business: Remains the core revenue driver, generating RMB 269.5 billion in revenue, a 9.4% year-on-year increase. This underscores Midea’s continued dominance in the traditional appliance market while successfully integrating smart technologies.
- New Energy and Industrial Technology: This segment experienced significant growth, with revenue reaching RMB 33.6 billion, a substantial 20.6% increase compared to the previous year. Even after adjusting for mergers and acquisitions, the organic growth rate remained impressive at 17.8%, demonstrating the strong underlying demand for Midea’s offerings in this sector.
- Smart Building Technologies: This division also contributed significantly to the overall growth, reporting revenue of RMB 28.5 billion, a 9.9% year-on-year increase. This reflects Midea’s growing presence in the commercial building sector, providing integrated solutions for smart and energy-efficient buildings.
- Geographic Performance: Midea saw solid growth in both domestic and international markets. Revenue in mainland China reached RMB 240.1 billion, a 7.7% increase year-on-year. Meanwhile, revenue from other countries and regions grew by 12.0% to RMB 169.0 billion, indicating successful expansion in overseas markets.
Analysis:
Midea’s strong performance in 2024 reflects its strategic investments in research and development, its focus on innovation, and its ability to adapt to changing market dynamics. The company’s diversification into new energy, industrial technology, and smart building solutions has proven to be a successful strategy, mitigating the risks associated with relying solely on the traditional home appliance market.
The impressive growth in overseas markets also demonstrates Midea’s increasing global competitiveness and its ability to capture market share in key regions.
Looking Ahead:
Midea Group’s 2024 results paint a picture of a company well-positioned for future growth. Its continued investment in innovation, its diversification strategy, and its global expansion efforts are likely to drive further success in the years to come. The company’s focus on smart home solutions, new energy technologies, and smart building solutions aligns with global trends and positions it to capitalize on emerging opportunities.
Source: Midea Group’s official announcement on the Hong Kong Stock Exchange; IT Home News.
Disclaimer: This article contains information obtained from publicly available sources. While every effort has been made to ensure accuracy, no guarantee is made as to the completeness or correctness of the information.
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