2016-04-18-深交所-美的集团_2015年年度报告（英文版）_204页_3mb

Midea Group Co., Ltd. 2015 Annual Report Summary

Core Content

Midea Group Co., Ltd. (Midea Group) released its 2015 Annual Report on 26 March 2016. The report highlights the company's strategic focus on "Leading Products, Operational Efficiency & Global Operations" and its commitment to innovation, efficiency, and global expansion. Despite the challenges posed by China's "New Normal" economy and a downturn in the household appliance market, Midea achieved year-on-year net profit growth of 17%, demonstrating strong resilience and performance.

Main Points

• Strategic Focus: Midea adheres to three core strategies:

  • Leading Products: Emphasizes R&D investment, product differentiation, and quality control to enhance competitiveness.
  • Operational Efficiency: Aims to improve employee, capital, and property efficiency through lean management and e-commerce development.
  • Global Operations: Expands overseas revenue, optimizes the global business network, and strengthens international brand presence.

• Global Recognition:

  • Ranked 32nd on Fortune Magazine's 2015 China's Top 500 Enterprises.
  • Ranked 13th on China's Top 500 Private Enterprises.
  • Ranked 38th on China's Top 500 Manufacturers.
  • Included in Forbes' Top 500 Global Enterprises, ranking 436th.
  • Became the first Chinese household appliance manufacturer to be rated by S&P, Fitch, and Moody's, with a "Stable" credit outlook.

• Brand Value:

  • The "Midea" brand ranked 6th on the Ruifu Global List 2015 of China's Top 100 Brands in Value, with a brand value of RMB 71.611 billion.

• Patents and Innovation:

  • Midea holds 21,581 granted patents by the end of 2015.
  • Established the Global Innovation Center to build a multi-layered R&D system.

• Financial Highlights (2015):

  • Operating Revenues: RMB 138,441,226,000 (down 2.28% YoY).
  • Net Profit: RMB 12,706,725,000 (up 20.99% YoY).
  • Net Profit After Non-recurring Items: RMB 10,911,341,000 (up 15.14% YoY).
  • Net Cash Flows from Operating Activities: RMB 26,764,254,000 (up 7.97% YoY).
  • ROE (Weighted Average): 29.06%.
  • Share Capital: 4,267,391,228 shares.
  • Dividend Policy: Proposed RMB12 per 10 shares cash dividends and 5 additional shares per 10 shares from capital reserves.

• Product Market Share (2015):

  • Air Conditioners: 25.2% market share, 2nd in ranking.
  • Washing Machines: 21.3% market share, 2nd in ranking.
  • Electric Rice Cookers: 42.3% market share, 1st in ranking.
  • Induction Cookers: 48.6% market share, 1st in ranking.
  • Electric Pressure Cookers: 42.7% market share, 1st in ranking.
  • Electric Kettles: 32.2% market share, 1st in ranking.
  • Water Purifiers: 27.9% market share, 1st in ranking.
  • Microwave Ovens: 44.6% market share, 2nd in ranking.
  • Range Hoods: 8.8% market share, 3rd in ranking.
  • Vacuum Cleaners: 11.3% market share, 3rd in ranking.
  • Water Heaters: 12.2% market share, 3rd in ranking.
  • Refrigerators: 9.6% market share, 4th in ranking.
  • Stoves: 7.2% market share, 4th in ranking.

• Industry Outlook:

  • The household appliance industry faced challenges in 2015 due to the global economic fluctuation, China's New Normal, and declining real estate.
  • Despite this, the industry is expected to grow due to:
    • Urbanization: China's urbanization ratio was 56%, with potential for further growth.
    • Consumption Upgrading: Demand for high-quality, energy-efficient, and smart appliances is increasing.
    • Smart Home and Intelligent Manufacturing: These are seen as the future direction of the industry, with significant growth expected in smart appliances.

• Future Goals:

  • Midea aims to become a multinational company and a respectable hi-tech enterprise.
  • The company plans to reform more effectively in 2016 and align employee ambitions with company goals to maximize ROI for shareholders.

Key Information

• Company Profile:

  • Full name: Midea Group Co., Ltd.
  • Stock abbreviation: Midea Group
  • Stock code: 000333
  • Listed on: Shenzhen Stock Exchange
  • Headquarters: Midea Headquarters Building, No. 6 Midea Avenue, Beijiao Town, Shunde District, Foshan City, Guangdong Province, China
  • Website: http://www.midea.com
  • Contact: IR@midea.com

• Audit and Compliance:

  • Financial statements audited by PricewaterhouseCoopers China (LLP).
  • No material non-recurring profits or losses, except for financial investment profit which became recurring due to the inclusion of financial investment in the business scope.

• Corporate Governance:

  • Emphasizes employee empowerment, incentive reform, and modern governance structures.
  • Encourages entrepreneurship and creativity among employees to align with company objectives.

• Company Structure:

  • Has 14 production bases in China and production bases in Vietnam, Belarus, Egypt, Brazil, Argentina, and India.
  • The company's operating revenues and net profits show resilience in a challenging market.

• Conclusion:

  • Midea Group believes that dreams and innovation are essential for success.
  • The company is committed to reform and transformation to stay competitive in a rapidly evolving market.
  • The report ends with a motivational statement: "With dreams, ANYTHING is possible for Midea!"