Shang Hai Zheng Quan Bao·2025-05-31 15:58Core Viewpoint - The chairman of Midea Group, Fang Hongbo, expressed a tactical respect for Xiaomi in the home appliance market while maintaining a strategic indifference towards its competition, indicating that the home appliance industry is highly competitive and saturated [4][5][6]. Group 1: Competition with Xiaomi - Fang Hongbo stated that while he tactically respects Xiaomi's entry into the home appliance sector, he does not fear it strategically, as the industry is characterized by low barriers to entry and intense competition [4][5]. - Xiaomi has gained a significant market share in the air conditioning sector, ranking third in online channels as of April 2025, although it still trails behind Midea and Gree [4]. - Midea Group has been divesting its shares in Xiaomi, having sold a total of 9 billion yuan worth of shares, indicating a strategic shift in their relationship [6][7]. Group 2: Corporate Culture and Governance - Midea Group promotes a culture of facing competition head-on and adapting to changes, with initiatives like the entrepreneur IP project to embrace social media [8]. - Fang Hongbo emphasized that Midea's growth is driven by corporate governance rather than reliance on individual leadership [8]. Group 3: Shareholder Returns - Midea Group plans to distribute a cash dividend of 35 yuan per 10 shares, totaling 26.712 billion yuan, which represents nearly 70% of its net profit for 2024, an increase of 8 percentage points from the previous year [9]. - Fang Hongbo assured investors that the company would continue to enhance its dividend and share buyback policies while increasing investment in research and development [9]. Group 4: Future Growth Strategies - Midea Group's revenue surpassed 400 billion yuan for the first time in 2024, with plans to transition to a second growth curve through its ToB (business-to-business) operations [11]. - The company aims for a balanced growth model where both home appliance and ToB businesses contribute equally to revenue, focusing on high-value sectors like medical imaging and robotics [11][12]. - Fang Hongbo highlighted the potential of the domestic medical imaging market and the company's commitment to investing in this sector, with plans to possibly establish a dedicated medical division in the future [12].