Midea Group(SZ:000333) Xin Lang Ke Ji·2025-07-30 01:53Core Viewpoint - Midea Group is undergoing significant organizational changes, focusing on integrating its operations in the refrigerator, washing machine, and kitchen appliance 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][3] - This restructuring is part of a broader strategy to transition towards a Direct-to-Consumer (DTC) model, which has been the main theme in Midea's approach to the Chinese market over the past two years [2][3] - The adjustments have led to significant layoffs across various departments, with older employees being the primary targets of these reductions [2][3] Group 2: Impact on Distributors and Employees - Regional distributors have expressed concerns that the DTC transformation is reducing the support they receive, making it increasingly difficult for them to operate profitably [5][6] - The restructuring may lead to a reduction in the number of operational distributors, pushing them to adapt to a retail model or face potential exit from the market [5][6] - Employees are facing challenges in integrating different teams and maintaining professional standards amid the organizational changes [5][6] Group 3: Financial Performance and Concerns - Midea's revenue for 2024 is projected at 407.15 billion yuan, with a year-on-year growth of 9.44%, and a net profit of 38.54 billion yuan, reflecting a 14.29% increase [8] - However, when excluding non-recurring gains, Midea's net profit growth of 8.39% lags behind competitors like Haier and Gree, indicating concerns about the core business's profitability [8][9] - The management is focused on simplifying operations to drive growth, as highlighted by the chairman's emphasis on self-revolution and operational efficiency [6][8]