Nan Fang Du Shi Bao·2025-05-13 11:32Core Viewpoint - The recent comments by Midea Group's Chairman and President, Fang Hongbo, regarding succession planning have sparked discussions, particularly in relation to his long-standing rivalry with Gree Electric's Chairwoman, Dong Mingzhu [1][3][4]. Group 1: Leadership and Succession - Fang Hongbo has indicated that there are several potential successors within Midea Group, although he has not disclosed their identities [4][6]. - Dong Mingzhu, who has been the Chairwoman of Gree Electric since 2012, was referenced by Fang in a manner suggesting ongoing competition between the two leaders [3][4]. Group 2: Competitive Landscape - Midea and Gree have been in fierce competition in the domestic home appliance market for over 20 years, engaging in various forms of rivalry including price wars and marketing battles [6][10]. - Since both leaders took their respective positions in 2012, the competition has intensified, with both companies focusing heavily on air conditioning products [6][9]. Group 3: Financial Performance - In 2024, Midea reported a revenue of 409.1 billion yuan, a 9.5% increase year-on-year, while Gree's revenue was 189.16 billion yuan, a decrease of 7.26% [14][16]. - Midea's net profit for 2024 was 38.54 billion yuan, reflecting a 14.3% increase, while Gree's net profit was 22.1 billion yuan, down 53.73% from the previous year [14][16]. Group 4: Strategic Initiatives - Midea has diversified its business significantly, with non-home appliance revenue accounting for nearly 30% of total revenue, focusing on sectors like smart home solutions and industrial automation [15][16]. - Gree is also attempting to diversify but still relies heavily on its core air conditioning business, which constitutes a significant portion of its revenue [16].