Midea Group(SZ:000333) Sou Hu Cai Jing·2025-07-30 01:34Core Viewpoint - Midea Group is undergoing significant organizational changes, focusing on integrating its operations in the refrigerator, washing machine, and kitchen sectors, reflecting a shift from wholesale to retail thinking [2][3][4] Group 1: Organizational Changes - Midea has announced an organizational restructuring aimed at consolidating its operational centers and optimizing its accountability mechanisms [2] - The restructuring includes merging operational centers in various locations, such as the transfer of the Linyi operational center to Qingdao, resulting in significant staff reductions [3] - This is the second major adjustment within a few months, indicating a trend towards streamlining operations and enhancing efficiency [3] Group 2: Retail Transformation - The shift towards retail is described as the main theme for Midea in the Chinese market over the past two years, with a focus on Direct-to-Consumer (DTC) strategies [4][10] - Midea's management has emphasized the need for simplification and self-revolution to meet market challenges, as articulated by Chairman Fang Hongbo [6][10] - The company is prioritizing DTC and overseas Original Brand Manufacturing (OBM) strategies, which may impact traditional distributors and retailers [4][10] Group 3: Impact on Distributors and Employees - The restructuring has led to complaints from regional distributors about reduced support and increased operational difficulties, as resources are being redirected towards e-commerce and direct consumer engagement [4][5] - Distributors are facing heightened competition and operational challenges due to decreased traffic support for physical stores, leading to increased customer acquisition costs [5] - Employees within the operational centers are also facing uncertainty regarding job security and the integration of different teams post-restructuring [5][10] Group 4: Financial Performance Concerns - Midea's revenue for 2024 is reported at 407.15 billion yuan, with a year-on-year growth of 9.44%, while net profit attributable to shareholders is 38.54 billion yuan, up 14.29% [10] - However, when excluding non-recurring gains, Midea's net profit growth of 8.39% lags behind competitors like Haier and Gree, raising concerns about its core business profitability [10] - The company is under pressure to enhance its main business revenue and profit growth amid a slowing home appliance market [10]