Leading the Industry
Midea Group saw operating revenue of RMB159.8 billion in 2016, a year-on-year increase of 15 percent. Net Profit was RMB15.9 billion, a year-on-year increase of 16 percent. Net profit attributable to the company was RMB14.7 billion, seeing a growth of 16%. Earnings per share were RMB2.29.
The company’s status within the industry continues to grow. Efficiency indicators and asset structures both progressed. Overall it was a year in which the group took major steps toward becoming a leading global player in consumer appliances, Heating, Ventilation and Air-Conditioning (HVAC) systems, Robot, and Industrial automation systems.
Increased Market Value
The company paid out RMB10 in dividends for every ten shares. Total dividends paid out reached RMB6.5 billion. This good performance has helped increase the company’s market value significantly.
Since it became listed as whole on the Shenzhen Stock Exchange (SZSE) on September 18th 2013, the company’s market value has increased to approximately RMB210 billion, nearly tripling, and has brought impressive profits to shareholders.
R&D and Product Improvement
The company continued to increase investment into research and development, integrate its global R & D resources, and focus on R & D innovation. In the past five years, around RMB20 billion has been invested in R & D, with 17 research centers being established in eight countries.
Staff involved in R&D exceeds 10,000, with more than 300 international experts cooperating closely with over 30 worldwide research institutes. As of 2016, Midea Group had more than 26,000 authorized patents. Last year alone, the group applied for 13,546 patents and 5,562 invention patents.
Midea has shown determination on manufacturing user-centered products and optimizing its product structure. Major products launched by Midea last year include the M-Smart air conditioner series, the 6D flowing-water Water Heater, the high-temperature steam range hood, the precision washer & dryer, the IH rice cooker, and many more. Many product categories achieved their highest-ever profitability, ensuring that product competitiveness and brand value saw continuing growth.
Improved Corporate Governance
At the same time, Midea launched a multi-level incentive program for senior management and key employees. This includes restricted stock incentives and multi-dimensional performance assessments to ensure that there is personal stake in the company’s long-term interests and to further optimize corporate governance. About 2,000 people have participated in the early incentive plan. This time, it will cover more than 1,600 people from the middle and senior management.