Xin Lang Cai Jing·2025-12-30 01:12Core Viewpoint - Midea Group has made significant adjustments to its renewable energy sector by establishing a new "Renewable Energy Division," indicating a heightened focus on solar and energy storage businesses [2][10]. Group 1: Organizational Changes - Midea Group has announced the formation of a "Renewable Energy Division," which will integrate its renewable product companies and energy technology companies, with Wang Jianguo, the Group's Executive President, appointed as the division's president [2][10]. - The establishment of the Renewable Energy Division signifies the increased importance of solar and energy storage businesses within Midea Group, as indicated by internal sources from Hekang New Energy [2][3]. Group 2: Performance of Subsidiaries - Both subsidiaries under Midea's Renewable Energy Division, Hekang New Energy and Kelu Electronics, have recently turned profitable but face significant challenges [2][10]. - Hekang New Energy reported a revenue of 4.776 billion yuan and a net profit of 10.2961 million yuan in 2024, achieving profitability, but its net profit margin remains low at 0.16% [4][12]. - Kelu Electronics has faced continuous losses from 2021 to 2024, totaling 4.64 billion yuan in losses, although it reported a net profit of 232 million yuan in the first three quarters of 2025, driven by a booming overseas energy storage market [5][14]. Group 3: Financial Challenges - Hekang New Energy's overall gross margin is only 8.91%, down 7.13 percentage points from the previous year, with significant declines in gross margins across its main business segments [4][12]. - Kelu Electronics has a high debt ratio exceeding 90%, with short-term debts amounting to 3.3 billion yuan, creating substantial short-term repayment pressure [6][14]. - Midea Group provided a guarantee of 2.3 billion yuan for Kelu Electronics and its subsidiaries to address overseas business performance issues due to the company's precarious financial situation [7][14]. Group 4: Market Dynamics - Kelu Electronics' reliance on the high-margin overseas energy storage market raises concerns about its sustainable profitability, as domestic market conditions may lead to declining margins [15]. - The company has faced operational challenges, including being barred from participating in bidding activities by a major client, Southern Power Grid, due to quality and compliance issues [16][17].