The year 2024 was defined by a rapidly evolving global landscape and significant challenges. Amid a complex domestic and international environment, Midea sharpened its strategic focus on driving value-chain-wide efficiencies and achieving structural growth through innovation and upgrades.
These efforts culminated in historic milestones, with total revenue achieving RMB 409.1 billion. Notably, the ToB segment reached RMB 104.5 billion to total revenue. Net profit attributable to the parent company stood at RMB 38.5 billion, while operating cash flows reached RMB 60.5 billion. In 2024, Midea proudly ranked 277th on the Fortune Global 500 List, marking our ninth consecutive year among the world's top 500 companies.
We were once again honored with nominations to both the Fortune China ESG Impact List and China's Most Admired Companies List, and for the second year in a row, Forbes recognized Midea as one of the World's Best Employers. Additionally, 2024 saw Midea's successful issuance of H-shares and listing on the Main Board of the Hong Kong Stock Exchange. The dual listing of A-shares and H-shares has further solidified our presence on the international stage.
Midea celebrated another remarkable milestone, with our revenue soaring from less than RMB 10 billion at the turn of the century to over RMB 400 billion today. Over the years, our business has evolved from a single sector to a diverse range of ToC and ToB segments. What began at our Shunde base has grown into a global network of R&D, manufacturing, and sales.
Reflecting on the past quarter-century, the storms we have weathered now feel like fleeting breezes in the broader tapestry of our journey. Miracles, after all, are not mere chance; they are the culmination of generations of Mideans questioning, challenging, transforming, and pushing beyond their limits.
The accomplishments we have today arise from consistent, everyday effort. To all Mideans, we extend our heartfelt gratitude—your courage has exceeded our greatest expectations. To our shareholders, we owe a special thanks. In a year marked by volatile global markets and challenging industry cycles, your unwavering trust and support empowered us to see beyond short-term fluctuations and dedicate ourselves to building enduring value.
All stars eventually fade, and all flowers inevitably wither. No company, however successful, is immune to the forces of prolonged global economic stagnation, an increasingly intricate geopolitical landscape, rapid technological revolutions, seismic shifts in commerce, or the extended cycles driven by industry and market competition. Past market darlings risk losing their edge if they fail to adapt to an ever-changing world.
At Midea, we climb the mountain not merely to reach its summit, but to embrace the boundless possibilities that await beyond it. As Peter Drucker wisely observed, "The greatest danger in times of turbulence is not the turbulence itself; it is to act with yesterday’s logic." In the face of intensifying competition, we must seize the initiative, breaking free from the fierce competition, dismantling outdated mindsets, and stepping beyond our comfort zone to innovate, explore, and experiment. It takes courage to drive systemic transformation within Midea, but these internal micro-changes are essential for us to navigate the broader macro environment.
Looking ahead to 2025, Midea will commit to its strategy of streamlining for growth and facing up to challenges through breakthroughs. Simplicity brings clarity to the world, while complexity turns it into a labyrinth. We must pursue courageous simplification, seeking straightforward solutions. This means refining our business framework, product portfolio, operational processes, and organizational structure, thereby eliminating activities that fail to add value and redirecting resources to high-impact priorities.
At the same time, we must challenge ourselves by shedding the crutches of past advantages, the burdens of legacy, and the comfort of familiar paths. We will boldly dismantle outdated structures and systems, reducing institutional costs and inefficiencies. The history of commerce teaches us that companies triumph over adversity only by deconstructing and reinventing themselves—no exceptions. With this in mind, we will stay grounded in common sense, focusing on enhancing product competitiveness, boosting efficiency, optimizing operations, cutting costs, and improving cash flow. Simultaneously, we will pursue our Technology Leadership Strategy by confronting our challenges head-on.
01
Prioritize OBM Products Overseas
We will commit fully to building and expanding our presence in overseas markets, enhancing our global manufacturing network for greater efficiency, and strengthening our product delivery capabilities. Increased investment in R&D for our OBM products will sharpen our competitive edge, broaden our global reach, and drive higher overseas market share.
02
Strengthen DTC Model
We will place users at the heart of our innovation and transformation efforts, accelerating the shift to a direct-to-consumer (DTC) model in the domestic market. By restructuring offline operations to align with our online framework, integrating resources across all channels, and fostering an agile retail organization, we will enhance traffic acquisition and user engagement.
03
Drive Expansion in our ToB Business
New Energy and Industrial Technology will ramp up R&D in key components and green energy solutions. Robotics & Automation will lower structural costs while accelerating growth in the domestic robotics market. Smart Building Technology will move faster to establish a second core market in Europe and improve its offerings of systems solutions, heating, elevators and other products while we grow healthcare and smart logistics, boosting our ToB revenue.
Time waits for no one. Competition among companies ebbs and flows like a river, its currents ever-changing. It is we who will decide whether Midea continues to shine as a beacon in the firmament or fades into quiet obscurity. No matter how the world shifts—through evolving geopolitical dynamics, China's economic transformation, or intensifying industry and market rivalries—we must rise above the turbulence, chart our course, and set sail anew. The world is vast, and Midea is but a small part of it. Yet, there is no journey too great, no dream too bold, and no horizon beyond our reach. We must persevere. Let us summon the courage to dream audaciously, to act decisively, to embrace change, and to fight relentlessly. Let us commit to our Global Impact Strategy, stepping confidently onto the world stage, thriving in familiar lands, and establishing a presence in every corner of the globe.
Together, with our shareholders worldwide, we look forward to authoring Midea's next chapter.
Board of Directors of Midea Group Co., Ltd.,
March 2025