2021
Annual Report
April 2022
Midea Group Co., Ltd.
Stock code: 000333
Letter to Shareholders
This is a century of change. A falling leaf reveals the coming of the fall, and each leaf, each
person, can feel the changes of this great era. We would like to pay tribute to the
perseverance and dedication of every Midea employee, helping us chase our dreams
regardless of what the future holds. Their strong will and yearning for the future have
become the strength to continue the success and warmth of Midea. We would also like to
pay tribute to our shareholders who have been loyal to Midea for so long. In a turbulent
year of huge changes and market fluctuations, their long-standing trust and insistence on
long-term value are invaluable. With a decade of transformation, Midea's revenue
exceeded RMB300 billion for the first time. For the sixth consecutive year, Midea was
included in the Fortune Global 500 list. Meanwhile, Midea was recognized as one of
"Forbes China 2021 Top 10 Chinese Companies in Industrial Digital Transformation". Also,
four factories of Midea have been included in the “Global Lighthouse Network” initiated by
the World Economic Forum. Even more exceptionally, despite the substantial increase in
various costs related to commodities, shipping logistics, and energy supplies, Midea was
still able to maintain profitability, demonstrating its resilience.
There is neither a better era nor a worse era, only a new era. The changes of the times
have led to disruptive changes in many industries. Every major change and crisis are like
big waves in the sea, and after the wave ebbs away, high-quality companies stand out. In
this great era, no path is entirely smooth, nor is any path set in stone, and a great company
will inevitably undergo different cycles. In this era, uncertainty has become the norm and
part of the mainstream, while the pandemic crisis has served as an accelerator for some
companies to enhance their competitiveness and for the commercial competition. However,
technology-driven transformation remains the main theme of the current era. The
emergence and in-depth application of artificial intelligence and digital technologies, rapid
changes in user needs and the strengthening of the awareness of consumer sovereignty,
as well as the continuous ups and downs of the market have all significantly promoted the
progress of technology-driven transformation. Midea needs to truly listen to the voice of this
era, face up to reality, seek continuous evolution, grasp certainties amid uncertainties to
build strengths, and innovate and change for greater growth in order to adapt to the times
and shape a brighter future.
A company either prospers in making changes or perishes in mediocrity. All seeds of
destruction are planted at the height of business prosperity. All goodness, excellence and
greatness are meant to be broken, just like all athlete records. A decade of course resetting
lies ahead. With a great story woven by all Mideans, Midea must be the first to apply
industry-leading technologies, create a second growth curve at the optimum time, and open
up a new avenue for growth. It must also upgrade and transform itself from a world-leading
home appliance manufacturer to a technology- and innovation-driven group by continually
reforming and challenging itself. In the current time and the new decade ahead, Midea's
key business principle is to implement new strategies to boost new growth areas, including
new business models, new processes, new techniques, new alternative materials, new
products, new technology breakthroughs, new brands, new channels, new marketing
methods, new national market breakthroughs, among others. Innovation is to do things we
have not done before, and it requires our courage and our new mindset.
Our mission and vision are the cornerstones of our everlasting business success. Midea
has repositioned its five business segments and established the new strategic focuses of
"Technology Leadership, Digitization & Intelligence Driven, Direct to Users, and Global
Impact". In the process of implementing new strategies to boost the new growth areas,
operating efficiency is the key to Midea's survival and competitiveness, technology and
innovation are the foundations of Midea, and the customer-oriented approach is the starting
point for all business logic.
In this cold winter, we should further invest in the future, accelerate the upgrading of
existing operations and the creation of further growth, retain the "Number One Engine" of
the core home appliance business, adhere to long-term technology investment, thoroughly
promote IoT and digital transformation, and accelerate product intelligent upgrades and
overall smart home business improvement. We must consolidate our existing strengths.
Meanwhile, given the grand backdrop of intelligent manufacturing, energy conse
查看PDF原文
