Core Viewpoint - Midea Group has been expanding its B2B business, which now accounts for 25.67% of total revenue in 2024, up from 18.5% in 2020, indicating significant growth in this segment [1][3]. Group 1: B2B Business Expansion - Midea's B2B business includes areas such as new energy and industrial technology, robotics and automation, and smart building technology, with respective revenue contributions of 8.26%, 7.05%, 6.99%, and 3.37% as of 2024 [3]. - The company employs a strategy of "point-to-surface" to create a closed-loop system, enhancing customer loyalty by cross-selling products within building scenarios [3][9]. - Midea has made strategic acquisitions, such as HeKang New Energy and Kelu Electronics, to complete its full industry chain in solar energy, storage, and smart grids, with the new energy business currently contributing about 10% to overall revenue [9][10]. Group 2: Competitive Landscape and Strategy - The energy sector is dominated by state-owned enterprises, making it challenging for most companies to reach the end-user; however, Midea's focus on solar and storage allows direct access to both B2B and B2C markets [4][6]. - Midea's dual-brand strategy, utilizing both Midea and Kelu, aims to enhance competitiveness in the large storage market, focusing on historical bidding volume, warranty, after-sales capabilities, and safety management [13][14]. - The company is adapting to changes in the commercial storage market, where clients are increasingly interested in the actual benefits of storage solutions rather than just hardware specifications [16][17]. Group 3: Technological Integration and Future Outlook - Midea plans to integrate heat pump technology into its storage systems, leveraging its position as one of the largest heat pump manufacturers globally, which could disrupt the current dominance of electrochemical storage solutions [19]. - The company is also exploring AI-driven operational technologies for virtual power plants and electricity trading, which are becoming key selling points in the commercial storage sector [17][18].

Group 1 - Midea Group's energy-related business launched its brand "Midea Energy" at the 2025 International Solar Photovoltaic and Smart Energy Exhibition, highlighting its strategic focus on renewable energy as a pillar industry [2] - The core strategy of Midea Energy is a three-dimensional approach combining energy storage, heat pumps, and AI to achieve integrated development [2][3] - Midea Energy showcased its next-generation energy solutions, including a box-level direct cooling energy storage platform, advanced heat pump technology, and an AI-driven energy management system [2][3] Group 2 - Midea Group leverages decades of expertise in thermal management and power electronics to enhance its energy storage system development, with thermal energy accounting for over 80% of global energy usage [3] - The company has established an AI research institute to drive efficiency in its energy management systems, applicable to large-scale virtual power plants and home energy stations [3] - Midea Energy's industry footprint spans various sectors, providing customized energy solutions through brands like Midea, Hekang New Energy, Kelu Electronics, and KUKA, with KUKA's heavy-duty robots holding over 25% market share in the renewable energy sector [4] Group 3 - Midea Group aims to balance its B2B and B2C business models, with renewable energy currently accounting for about 10% of total revenue, projected to increase to nearly one-third in the future [6] - Hekang New Energy reported a total revenue of 2.24 billion yuan in Q1 2025, a year-on-year increase of 220.56%, while Kelu Electronics achieved a revenue of 1.214 billion yuan, up 16.2% [4]

Core Viewpoint - Midea Group is positioning its energy business as a pillar industry through a three-dimensional strategy of "Energy Storage + Heat Pumps + AI" [2] Group 1: Midea Energy Strategy - Midea Energy is focusing on next-generation energy storage technology, advanced heat pump solutions, and artificial intelligence to drive business development [2] - The industrial landscape of Midea Energy includes various segments such as power generation, grid, charging, energy storage, and heat pumps [2] Group 2: Market Position and Performance - KUKA's heavy-duty robots have captured over 25% market share in the renewable energy sector [4] - Midea Group's ToB business, including Midea Energy, is a significant part of its overall strategy, with expectations for ToC and ToB revenues to each account for half of total income [5] - In Q1 2025, Midea Group reported revenue of 127.8 billion yuan and a net profit of 12.422 billion yuan, with ToB business revenue exceeding 100 billion yuan, representing over 25% of total revenue [5] Group 3: Industry Context - The scale of China's energy storage industry has reached a trillion yuan level, with increasing competition expected by 2025 [5] - The penetration rate of grid-type energy storage in the global energy storage system integration market is projected to reach 20% over the next five years [5]