[年报]美的集团(000333):2023年年度报告（英文版）
原标题:美的集团:2023年年度报告（英文版） Amidst the profound changes in the market environment and formidable challenges in 2023, Midea remained steadfast in implementing the annual business principle of "Stabilize Profitability & Drive Growth”. Our focus on certainties over the long cycle has ultimately resulted in our best-ever business results. In 2023, Midea recorded total revenue of RMB373.7 billion, with a net profit reaching RMB33.7 billion. Our net operating cash flow surpassed RMB57.9 billion. Additionally, Midea ranked No. 278 on the Fortune Global 500 list and was included on the Fortune China ESG Impact list and the Fortune Most Admired Chinese Companies list in 2023. We were also lauded by Forbes as an Industry Benchmark for Sustainable Development Industrial Enterprises in China. We extend our heartfelt gratitude to all Mideans for your going ever onwards. With determination and calmness, we have been pushing our way through the thick mud of all the difficulties. Extraordinary dedication even in the most ordinary positions and a deep-rooted entrepreneurial spirit have been the cornerstone of Midea's continuing vitality for generations, warming every corner of Midea like sunshine every single day. Appreciation also goes to all of our shareholders for your steadfast support through thick and thin. Your trust has been the driving force and bedrock of our unremitting pursuit of long-term growth and sustained shareholder returns. We stand at a new juncture, where we can view the vast world from a fresh perspective. In the past, our business journey resembled a mountaineering expedition, relying solely on our capabilities for success. However, running a business today is more akin to surfing the waves, navigating through rippling uncertainties. We are often caught off guard by the sudden decline of once glorious corporations and rapid falls of new-money. Even industry giants are adapting swiftly. Corporate succession has accelerated, with reshuffles and phaseouts happening every day. The rules of the game are being rewritten, and business paradigms are shifting, leaving every sector and individual facing similar challenges, as we find ourselves in uncharted territory. It's time to bid farewell to illusions and the past cycle, breaking free from outdated thinking and embarking on a journey of reflecting on and challenging ourselves. In this process, resilience and determination are crucial. In the face of sluggish global growth, how does Midea secure its growth? How does Midea cultivate new competitive strengths amidst waves of technological advancements and shifting business models? With formidable challenges overseas, how do we expedite our global business distribution? In the face of anxieties over economic restructuring and shifts in growth models, how do we navigate through the cycles? These challenges test our corporate governance, compliance, operational systems, and agility. In this world, there's no room for pessimism or optimism; only realism. As Game of Thrones, a popular TV drama, aptly put, "Chaos isn't a pit. Chaos is a ladder”. Our choices, not fate, determine our path. In this ever-evolving era, our success depends solely on how we define ourselves. What is certainty? To be certain is to ascend beyond time and space, and to summarize common sense knowledge and methods. To achieve industrial upgrades from basic to premium offerings and from low to high added value, it is essential to harness the cost-efficiency strengths and the force of technological advancement. In essence, innovation and creativity play a pivotal role in this process. The greatness of a company lies in taking common sense to the utmost level, doing the right things, upholding principles, and weathering any storm with resilience. It's not time or circumstances that trap us, but our mindset. We must reflect on ourselves, confront challenges head-on, and brave the waves. Guided by our common sense knowledge and courage as a compass, we are ready to confront storms and sail into uncharted territory. In 2024, Midea will focus on enhancing value chain-wide efficiency alongside structural growth through upgrades. Several economic crises occurred in the world’s history. Maintaining ample liquidity, high-performance operations with low cost and high efficiency, and competitiveness of core business operations is key to navigating economic crises and market downturns. Hence, Midea must stay committed to business model upgrades, structural upgrades, and industrial upgrades and navigate the ever-evolving environment Business model upgrades: Midea will adhere to the “Chinese Market DTC (Direct To Customer), Overseas OBM Priority” strategy. The essence of the DTC strategy is customer-oriented retailing. Meanwhile, global breakthroughs are critical at this time. A truly globalized company is localized. With an internationalized headquarters, we aim to make ourselves at home across the world. To this end, we will resolutely strengthen overseas infrastructure for after-sales services, logistics, branding, etc. Structural upgrades: Upholding a customer-oriented principle, we will redouble our efforts to enhance our "Three Generations" capabilities across research, reserves, and development. We will recruit high-calibre professionals worldwide, including top global talent, experts, and scientists, to drive technological advancement and innovation. Seizing opportunities brought by structural upgrades, Midea aims to establish itself in this era as a pioneering enterprise. Industrial upgrades: We will continue to balance ToC and ToB business development. We are fully aware that the development of ToB business involves longer cycles and additional time. To that end, we will exhibit strategic patience and persistence and continue to invest, gradually laying the groundwork for developing capabilities of overcoming challenges. There are no friends of times, only friends of trends. The end of an era inevitably heralds the dawn of another. In the ebb and flow of industries and in every economic crisis, only a select few enterprises emerge victorious. This is a constant process where new businesses rise and old ones fall. To be a friend of trends in this era full of uncertainties, we must surmount confusion and foster courage. Over the past 55 years, Midea has adeptly navigated changing times, remaining steadfast in the face of challenges. What has propelled Midea forward amidst these ever-shifting tides? It's the entrepreneurial spirit deeply ingrained in our core, driving vitality for generations and fostering sustained growth and progress. This spirit is Midea's legacy. We are dedicated to fostering an environment where every individual is valued, irrespective of their background, and where the entrepreneurial spirit thrives for generations to come. We will seek out those bold sailors home business and the commercial and industrial solutions, Midea boldly embraces evolution, braving the waves to explore broader business prospects. While no one can precisely predict Midea's future, just as in 2014, we couldn't foresee our development in 2024, nor anticipate the profound changes in 2023 when we were at the end of 2022. Yet, Midea's future lies ahead, filled with unexplored markets, regions, and countries, as well as with undeveloped business, waiting for us to deliver better and better business results. Together, they constitute the unwritten chapters of Midea's future. As stated in Blossom Shanghai, a blockbuster TV series in China, running a business is like navigating an ocean; we must row steadfastly until we reach our destination. Midea must brave the waves and forge ahead towards our goal. When the horizon widens and the water turns azure in front of us, we will know that we’ve arrived at the ocean of endless possibilities. We look forward to continuing this journey with our shareholders. Let’s witness Midea’s power to flourish! Board of Directors, Midea Group March 2024 Section I Important Statements, Contents and Definitions The Board of Directors, the Supervisory Committee, directors, supervisors and senior management of Midea Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the information presented in this report is free of any misrepresentations, misleading statements or material omissions, and shall together be wholly liable for the truthfulness, accuracy and completeness of its contents. Mr. Fang Hongbo, Chairman of the Board and CEO of the Company, Ms. Zhong Zheng, Vice President, CFO and Director of Finance of the Company, and Ms. Chen Lihong, head of the accounting department (equivalent to accounting manager) of the Company, have represented and warranted that the financial statements in this report are true, accurate and complete. All directors of the Company attended the Board meeting to review this report. The future plans and other forward-looking statements mentioned in this report shall not be considered as promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks. The Board has considered and approved the following dividend payout plan: based on the 6,920,391,836 shares at the disclosure date of this report (the total share capital of 6,968,950,724 shares minus the repurchased 48,558,888 shares in the repurchased share account at that date), it is proposed that the Company should distribute a cash dividend of RMB30 (tax inclusive) per 10 shares to all the shareholders and should not carry out any bonus issue or convert capital surplus into share capital. When the profit distribution plan is implemented, if any change occurs to the total shares eligible for profit distribution, the profit distribution plan shall be based on the total shares eligible for profit distribution at the record date of the profit distribution, and the total dividend amount shall be adjusted under an unchanged dividend per share. This report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. Contents LETTER TO SHAREHOLDERS ................................................................................................ 2 SECTION I IMPORTANT STATEMENTS, CONTENTS AND DEFINITIONS ............................. 6 SECTION II COMPANY PROFILE AND KEY FINANCIAL RESULTS ...................................... 10 SECTION III MANAGEMENT DISCUSSION AND ANALYSIS ................................................. 15 SECTION IV CORPORATE GOVERNANCE ........................................................................ 122 SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY ....................................... 158 SECTION VI SIGNIFICANT EVENTS ................................................................................... 200 SECTION VII CHANGES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS ..... 220 SECTION VIII PREFERENCE SHARES ............................................................................... 229 SECTION IX BONDS ............................................................................................................ 230 SECTION X FINANCIAL REPORT ........................................................................................ 235 Documents Available for Reference 1. The original of The 2023 Annual Report of Midea Group Co., Ltd. signed by the legal representative; 2. The financial statements signed and stamped by the legal representative, the CFO & Director of Finance and the head of the accounting department; 3. The original of the auditor’s report with the seal of the accounting firm, and signed and stamped by CPAs; 4. The originals of all company documents and announcements that are disclosed to the public via newspaper designated for information disclosure during the Reporting Period; and 5. The electronic version of The 2023 Annual Report that is released on http://www.cninfo.com.cn. Definitions
Section II Company Profile and Key Financial Results 1. Corporate Information
Accounting firm engaged by the Company
□Applicable √N/A Financial advisor engaged by the Company to continuously perform its supervisory function during the Reporting Period □Applicable √N/A 6. Key Accounting Data and Financial Indicators Whether the Company performed a retroactive adjustment to or restatement of accounting data □ Yes √ No
uncertainty about the Company’s ability to continue as a going concern. □ Yes √ No Indicate whether the lower of the net profit before and after non-recurring gains and losses was negative. □ Yes √ No 7. Differences in Accounting Data under Domestic and Overseas Accounting Standards 7.1 Differences in the net profit and net assets disclosed in the financial reports prepared under China Accounting Standards (CAS) and International Financial Reporting Standards (IFRS) □Applicable √N/A No such differences for the Reporting Period. 7.2 Differences in the net profit and net assets disclosed in the financial reports prepared under CAS and foreign accounting standards □Applicable √N/A No such differences for the Reporting Period. 8. Key Financial Results by Quarter RMB'000
and those which have been disclosed in the Company’s quarterly or semi-annual reports □Yes √No 9. Non-recurring Gains and Losses √Applicable □N/A RMB'000
Explain the reasons if the Company classifies an item as a recurring gain/loss item, which is enumerated as a non-recurring gain/loss in the □Applicable √N/A Section III Management Discussion and Analysis 1. Industry Overview for the Reporting Period 1.1 Summary of the business scope Midea is a leading global technology group comprising the Smart Home, Energy Solutions and Industrial Technology, Intelligent Building Technology, Robotics & Automation, and Other Innovation businesses. With a business portfolio that is focused on the coordinated development of the ToC and ToB businesses, Midea offers various smart home products and services to individual consumers, as well as provides diversified commercial and industrial solutions for corporate clients. To be specific, Midea Smart Home primarily covers smart appliances, smart home and related peripheral industries and ecological chains, undertakes the construction of intelligent scenarios for end users, user operations and data value discovery, and is committed to providing end users with the best experience of entire-house smart home appliances and service. Midea Energy Solutions and Industrial Technology, with technology as the core driver, commands key technologies in “green energy” and “key industrial components”. It operates many brands including GMCC, Welling, CLOU Electronics, HICONICS, SERVOTRONIX, MR, MOTINOVA, MSCT, TOSHIBA, SUNYE, etc., with its products covering high-precision core components such as compressors, motors, chips, valves, reducers, auto parts, motion control and automation, high- and low-voltage variable frequency drive, energy storage and cooling modules. It provides green, efficient and intelligent products and technology solutions for pan-industrial customers across the world. Midea Intelligent Building Technology is principally engaged in products and services in relation to buildings, as well as the relevant operations. With iBUILDING, Midea’s digital building service platform, as the core, its business covers HVAC, elevators, energy, building control, etc. Its primary products include VRF units, large chillers, unitary units, machine room air conditioners, escalators, passenger elevators, freight elevators, etc., as well as building automation software and building weak electricity integrated solutions. Supported by “Building Equipment and Facilities + Digital Technology + Industrial Ecosystem”, it facilitates logistics, information, feeling and energy flows of buildings to empower buildings with digital and low-carbon technologies and build sustainable smart automatic logistics systems, and transmission systems for future factory-related fields, as well as solutions for health care, entertainment, new consumption, etc. The Other Innovation Business mainly includes Annto, which provides customers with end-to-end digital and intelligent supply chain solutions; Midea Cloud, which provides industrial software and digitalisation consulting services for intelligent manufacturing and industrial interconnectivity through its industrial internet platform M·IoT; Midea Lighting, which focuses on the R&D, production, and sales of lighting and intelligent pre-decoration electrical products; and WDM, which is committed to innovation in medical imaging technology, providing high-quality medical imaging products and services for clinical use. With “Bring Great Innovations to Life” as its corporate vision, “Integrate with the World, to Inspire Your Future” as its mission, “Embrace what’s next - Aspiration、Customer First、Innovation、Collaboration、 Dedication” as its values, “High-quality Development and High-performance Operations” as its management and operation standard, Midea integrates global resources and promotes technological innovation to create a better life for over 400 million users, major customers and strategic partners in different areas worldwide every year with satisfying products and services. In face of higher requirements for products and services in the digital Internet era, Midea continues to promote its strategic focus of “Technology Leadership, Direct to Users, Digitization & Intelligence Driven, and Global Impact”, so as to build Midea in the new era. To be specific, it strives to achieve Technology Leadership by building scale advantages in R&D and strengthening the efforts and investment in core and cutting-edge technologies; be Direct to Users through direct contact and interaction with users and reinventing product service and business models; be Digitization & Intelligence Driven through “Comprehensive Digitalization and Comprehensive Intellectualization”, as well as improving efficiency internally and focusing on users externally; and achieve Global Impact by seeking breakthroughs in key regions in terms of market, channel and business model dimensions and serving global users. Midea, a global operating company, has now established a global platform with around 200 subsidiaries, 33 R&D centers, 40 major manufacturing bases, and more than 190,000 employees. Its business covers more than 200 countries and regions. Overseas, Midea has 17 R&D centers and 21 major manufacturing bases in more than ten countries. Midea Group ranks No. 278 on the Fortune Global 500 list unveiled in August 2023, marking its eighth consecutive year on the list. Meanwhile, Midea has also been named to the 2023 Fortune China ESG Impact list for its high-value practices in environmental management and social contribution, in addition to being included in the 2023 Fortune Most Admired Chinese Companies list for its outstanding performance in business resilience, sustainability, social responsibility and the like. In June 2023, the Forbes magazine released its 2023 Global 2000 list and Midea ranks No. 199, up 18 places from last year. Also, Midea Group has been named as one of the Forbes 2023 World’s Top Companies for Women and the 2022 Forbes World’s Best Employers, among others. In the “2022 Forbes China Sustainable Development Industrial Enterprises Top 50 Selection” held in February 2023, Midea was selected as an Industry Benchmark for Sustainable Development Industrial Enterprises by virtue of its solid performance in green manufacturing, carbon neutrality, sustainable development and ESG practices. As shown on the “TIME World's Best Companies 2023” list jointly released in September 2023 by America’s TIME magazine and Statista, the world's top business data platform, Midea Group earned itself a spot and was rated “very high” in terms of “Growth Rate”. Midea Group was successfully selected and performed very high in the Growth Rate dimension of the list. In July 2023, the Summit Forum of Top Enterprises in China Light Industry released the 2022 list of “Top 200 Enterprises in China Light Industry”, and Midea Group once again topped the list with an outstanding score of 98.07. In March 2023, Midea won the China Industrial Grand Prize at the Seventh China Industrial Grand Prize Ceremony jointly organized by the China Federation of Industrial Economics and 13 national industry associations for its excellent performance in technology innovation, quality management and branding, among others. By the end of 2023, five of Midea’s factories had been included in the “Global Lighthouse Network” initiated by the World Economic Forum, covering air conditioners, refrigerators, laundry appliances, microwave ovens, dishwashers, etc., which demonstrates Midea’s leading position in intelligent manufacturing and digital development among manufacturers worldwide. Meanwhile, Midea takes the lead among domestic home appliance makers by ranking No. 39 and No. 36 respectively on the 2023 China 500 list and the 2023 Tech 100 list released by Brand Finance, a British brand assessment institution. Midea has been given excellent credit ratings by the three major international credit rating agencies, Standard & Poor’s, Fitch Ratings and Moody’s. The ratings are in a leading position among home appliance manufacturers worldwide as well as among Chinese non- making it the highest-rated private manufacturer in China. In 2023, Midea has successfully retained the "Number One Engine" of ToC business on the domestic market. According to data provider AVC, Midea ranks first in the industry with respect to both the online and offline domestic market share for eight home appliance categories, namely, residential air conditioners, countertop pan-microwave ovens, countertop electric ovens, electric radiators, electric fans, induction cookers, electric kettles, and air fryers.
A. Home Appliance Industry In 2023, as the external environment continued to improve, the economy saw an ongoing upward trend, and domestic demand steadily expanded, the gross domestic product ("GDP") grew by 5.2% year on year. Meanwhile, the domestic home appliance industry experienced growth in both export and domestic sales. According to the statistics released by the General Administration of Customs, China's total export value of home appliances reached RMB617.42 billion in 2023, marking a 9.9% increase compared to the previous year. According to the data from AVC, the domestic home appliance retail market hit a size of RMB849.8 billion in 2023, showing a 3.6% year-on-year increase. In terms of categories, different categories exhibited different development trends. Products such as air conditioners, refrigerators, laundry appliances, and major kitchen appliances, due to their high visibility, exhibited a structural upgrade trend driven by the demand for newer and more advanced models. Meanwhile, categories such as dishwashers, built-in microwave-steamer-ovens, cleaning appliances, and water purifiers were experiencing a steady increase in their market penetration rates. In terms of consumers, consumers showed a "K-shaped" differentiation pattern. While rapid growth was seen in the high-end home appliance market, there was also notable demand for highly cost-effective home appliances. In terms of products, industry focus was still placed on green, healthy, and smart home appliances. Regarding retail, there was a notable shift towards whole-process services, with a heightened emphasis among retailers on the shopping experience, convenience, and the quality of post-sale services. In 2024, policies will be focused on green, smart, and elderly-friendly home appliances. Local governments and home appliance enterprises will be encouraged to introduce more practical subsidy policies, thus expanding green consumption and continually enhancing the sustainability of consumption. According to the data from AVC, the domestic retail sales of air conditioners were RMB211.7 billion in 2023, up by 7.5% year on year. Due to the improved macroeconomic landscape and the favourable consumer environment, 2023 was the first year of growth recovery for the air conditioning sector after three years of subdued performance. In terms of products, an upgrade continued in the horsepower ("HP") structure. Particularly, both online and offline sales of 2-HP wall-mounted air conditioners surged by 30.2% and 32.1%, respectively, compared to the previous year. In terms of price, the strategy of boosting sales using favourable prices was adopted for the large-capacity wall-mounted air conditioners, while the pricing structure for floor-standing air conditioners continued its upward trend. In the offline market, products in the RMB5,000 to RMB6,000 range accounted for nearly 27% of 2-HP wall-mounted air conditioners, while those priced within a range of RMB9,000 to RMB10,999 represented more than 19% of 3-HP floor-standing air conditioners. From a functionality perspective, the sales share of new Energy Efficiency Grade 1 products grew continuously, surpassing 84% in the offline market. Furthermore, health, comfort, and intelligence-related functions played a significant role in fueling growth across the industry. According to the data from AVC, the domestic retail sales of laundry appliances were RMB93.4 billion in 2023, up 5.8% year on year, and the retail sales of clothes dryers reached RMB12.9 billion, up 23.8% year on year. The wash and care segment enjoys a large market, diverse demand scenarios, and highly inelastic demand. As a major driving force, the washer-dryer suites captured more than 15% of the retail sales in the wash and care industry in 2023. Moreover, they experienced steady and robust upgrading of the product structure. According to the projection by AVC, the average price of clothes dryers will increase by 8.5% year on year, and products priced at RMB8,000 and above will constitute over 70% of the washer-dryer suites. According to the data from AVC, the domestic retail sales of refrigerators were RMB133.3 billion in 2023, up by 7.0% year on year. The product structure of refrigerators was significantly optimised. In terms of price, the average online product price saw a year-on-year increase of 9.2%, whereas offline products witnessed a 5.7% rise. In the offline market, the retail sales share of refrigerators priced at RMB8,000 and above approximated 55%. In terms of products, cross-four-door and French-style multi-door refrigerators emerged as the main growth drivers of high-end refrigerators. Their combined retail sales share in the offline market exceeded 71%. Meanwhile, driven by renovation scenarios, the trend towards the "compact yet spacious" feature became more prominent, with attention also given to a high ratio of freezer capacity. With the integration of home appliances and home scenarios, the penetration rate of built-in refrigerators has been steadily rising. In 2023, the retail sales shares of built-in refrigerators in the online and offline markets reached 17.6% and 36.7%, respectively. According to the data from AVC, the domestic retail sales of major kitchen appliances were RMB167 billion in 2023, up by 5.3% year on year. Overall, the market exhibited features such as steady demand for inelastic categories and a growing preference for high-quality products. In 2023, performance disparities were seen among categories. The retail sales of inelastic categories such as range hoods, stoves and water heaters reached RMB99.8 billion, marking a 6.5% year-on-year increase. Meanwhile, quality-living categories, including dishwashers, water purifiers, and sterilising cabinets, saw retail sales experienced a 4.0% decline. By categories, the retail sales of water heaters hit RMB50.5 billion, rising by 7.4% year on year. Due to the accelerated replacement and upgrade, the retail sales share of gas water heaters increased to 41.3%. Smart features, health-related functions, and increased capacity of water heaters contributed to their structural upgrades. Water purifiers achieved a total of RMB20.5 （未完）  |