Midea Group Reports H1 Revenue of 261 Billion Yuan, Up 3.5% YoY
nashnova research
Midea Group reported first-half revenue of RMB 261 billion and net profit of RMB 26.45 billion — revenue grew faster than profit, exposing a structural gap between a slowing core business and new segments not yet large enough to carry earnings.
Earning more, keeping less — where did the profit go?
First-half revenue hit RMB 261.05 billion, up 3.5% year-on-year; net profit attributable to shareholders reached RMB 26.45 billion, up just 1.7%.
This means → for every extra yuan of revenue, the profit margin actually shrank — classic top-line growth without bottom-line follow-through.
Management pointed to an "efficiency-driven strategy" — digital transformation and product-mix upgrades to offset external headwinds. In plain terms = the company is spending now to build future efficiency, compressing margins in the short term.
The interim dividend stays steady at RMB 0.50 per share.
Two-thirds of revenue comes from appliances — is the core holding up?
Smart home revenue reached RMB 174.3 billion, up 4.3%, accounting for roughly two-thirds of total revenue.
This reflects a business still anchored firmly in appliances — yet 4.3% is the slowest growth rate among Midea's three segments. The biggest engine is running the slowest.
Domestically, Midea is pushing a DTC — direct-to-consumer, bypassing distributors — channel overhaul. Overseas, it prioritizes OBM (own-brand manufacturing) with local production, R&D, and brand-building.
This means → Midea is shifting from "selling to distributors" to "reaching the end user directly" — heavy upfront cost, payoff down the road.
Building tech and robotics both grew over 10% — is the new engine strong enough?
Building technology revenue: RMB 21.6 billion, up 10.8%. Robotics and automation: RMB 16.6 billion, up 10.3%.
Both segments grew at more than twice the pace of the smart-home core — the business mix is visibly splitting.
Building technology has landed benchmark projects in healthcare, data centers, and new-energy manufacturing. In Europe, the MBT Climate platform rolled out HVAC, smart elevators, and full-stack liquid cooling — submerging entire servers in coolant to dissipate heat.
This means → Midea is moving fast on the "more than just appliances" track, but these two segments combined still account for less than 15% of revenue — not yet large enough to anchor group profit.
KUKA climbs to No. 2 in China — what does that position mean?
KUKA China's revenue grew rapidly and now accounts for over 30% of total KUKA group revenue.
According to MIR Databank, KUKA's share of industrial-robot unit sales in China reached 9.7%, rising to second place in the market.
In plain terms = out of every 100 industrial robots sold in Chinese factories, nearly 10 are now KUKA units — second only to the market leader.
This signals that Midea's big bet on acquiring KUKA is starting to pay off in China, though the global competitive landscape remains unchanged.
What to watch in the second half — what is the market testing?
The three-segment split is clear: building tech and robotics are fast but small; appliances are steady but slow.
This means → the key question for H2 is not "can Midea still grow?" but whether the new segments' profit contribution can keep pace with their revenue growth.
With external pressures persisting, overall earnings stability will be the critical test of Midea's operational resilience.
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