Light Always Finds Its Way

On January 16, 2026, Paul Fang, Chairman and President of Midea Group, delivered a keynote address to employees worldwide, titled Light Always Finds Its Way Toward a Brand New Future. In his speech, he said, "In 2025, Mideans overcame numerous challenges, achieving remarkable milestones. 2026 may still present a challenging landscape, but as long as we remain steadfast in our strategic direction and bravely break through, all paths ahead will become passable."

01

Midea's Steady Progress Amid Global Uncertainties

2025 unfolded against a backdrop of global uncertainty—political shifts, economic waves, markets in flux. Yet Midea kept walking. Guided by the strategy that “Streamlining for growth, Facing up to challenges through breakthroughs,” Midea made significant progress in Technology Leadership, Product Innovation, and Global Impact. Every part of Midea's business found its new ways to bloom.

In Smart Home segment, Midea built around people, experiences, and ecosystems—crafting a seamless “Human-Car-Home” world. In the past year, Midea introduced the industry’s first true AI Butler under COLMO brand, continued to lead the industry in the field of residential air conditioners with advantages such as multi-model integrated AI interaction technology, pioneered the world's first 45CM ultra-thin sideboard refrigerator, and established the world's first multi-scenario intelligent washing machine factory.

In Industrial Technology segment, Midea focused on developing and producing key components for HVAC, new energy vehicles, and robotics, launched new products such as wide-frequency rotary compressors and two-stage variable-capacity scroll compressors, invested in building manufacturing bases in Mexico for auto parts, in Brazil for motors, and R&D center in Turkey. Moreover, in the past year, Midea achieved stable delivery of its self‑developed heavy‑duty robotic servo motors.

In Smart Building Technology segment, Midea achieved steady growth. For example, in the elevator business, multi-brand integration has become a new growth engine. Midea also launched new products such as the next-generation MDV9 multi-split system and fully self-developed magnetic centrifugal chillers. In terms of M&A, Midea acquired ARBONIA Climate. Moreover, the factory in Thailand started operations, focusing on industrial segments such as data centers, efficient equipment rooms, and pharmaceuticals. Globally in this field, Midea has successfully completed over 100,000 demonstration projects.

KUKA accelerated its metamorphosis from a robot manufacturer to a comprehensive solution service provider with the launch of iico series collaborative robots, hybrid robots, mobile platforms, AI agents, and multi-scenario automation solutions.

In Energy sector, Midea rode the wave of change. Hiconics delivered its own residential storage systems across China, Europe, and Australia, while distributed solar installations grew. CLOU’s large-scale energy storage solutions reached six regions, including North America, Europe, and Southeast Asia, etc.

In Healthcare, Midea officially established an internal sector. WDM launched the world’s first full-chain AI platform for MRI and a diagnostic imaging model. With the acquisition of Carestream International, Midea stepped firmly into the global high-end medical landscape.

Midea Annto Logistics Technology strengthened its green smart logistics network, serving over 7,000 businesses through its “1+3” service model. Digital management reinforced cost advantage, and standardization and platform strengths enhanced efficiency, becoming the backbone of Midea Group.

In the first three quarters of 2025, Midea once again grew revenue and profit by double digits, representing a new record. Achieving these results amidst the challenging times demonstrates that Midea is walking in the right direction and gives us confidence and courage for the unknown ahead.

02

Forming a "Growth Relay" for Midea's Continued Success

Midea's strategy for 2026 is “Core-Focused Growth.” Midea will focus on what matters most—core businesses, core markets, core capabilities, and weave ToC and ToB into a sustainable "growth relay." That’s how Midea stays vibrant.

For its two core businesses—white goods and HVAC, Midea will further consolidate its market advantages. With continuous efforts to be put in all areas such as technological innovation and user experience, Midea aims to become top one or two globally in these sectors.

Midea is committed to strengthening these two core areas by allocating resources strategically and developing globally leading technologies.

In core markets—China, Southeast Asia, North America, the Middle East, and Africa, Midea will optimize its layout. With refined product structures and advanced smart home solutions, these core businesses demonstrate even stronger growth momentum.

Midea is also committed to its secondary core businesses, seizing opportunities for breakthroughs. While its core operations run smoothly, Midea is innovating for the future. It maintains strategic focus on robotics, energy, and healthcare with vast market potential as crucial pillars for the Group’s resilience across economic cycles. KUKA aims to become the market leader in China, enhancing its product competitiveness. The energy storage business will accelerate its development pace to keep up with industry trends. In healthcare, Midea will continue to increase investments in R&D and M&A integration, capitalizing on the opportunities presented by domestic substitution, to build a hundred-billion-yuan-sales-revenue medical segment within Midea Group.

Midea's ToC and ToB businesses will achieve synergistic growth. The ToC business, the key advantage for our current survival and development, will adhere to the principles of product innovation and user-centeredness. Midea will bridge online and offline channels through the transformation of the DTC (Direct-to-Consumer) model, making the dual premium brands deeply resonate with consumers. The ToB business, as the second engine for growth, will focus on breakthroughs in core technologies and industry solutions, enhancing industrial collaboration. This will facilitate Midea's transition from a product supplier to an ecosystem service provider, enabling the two segments to form a continuous cycle of growth. Together, they will support Midea's advancement toward becoming a globally leading technology group.

03

Enhancing Efficiency and Achieving Global Impact Are Strategic Imperatives

In an era of intense turbulence and transformation, only by adhering to sound business principles and solidifying core capabilities can certainty be grasped amid uncertainty. In 2026, we must focus on three key dimensions—efficiency, product innovation, and globalization, to safeguard Midea’s continued growth.

Efficiency is always a competitive advantage for an enterprise. Midea must pursue comprehensive cost leadership across the entire value chain, deeply explore efficiency potential in all areas from supply chain and manufacturing to inventory and sales, refine the MBS lean model, reduce waste, and make continuous improvements. We will strengthen Digitalization, break down data barriers, and enable more precise decision-making and more efficient operations. Furthermore, we will foster shared growth and symbiosis across the upstream and downstream segments of the supply chain, empower suppliers, enhance collaborative efficiency, and build a stable and highly efficient industrial ecosystem.

Products and technology are the fundamental pillars of growth. Midea must shift its focus back to customer needs, follow the "Three-Generation" R&D strategy, strengthen basic research and forward-looking technology deployment, and make competitive differentiated innovations in products. We will increase R&D investment, enhance our capability to tackle key challenges, deepen the application of AI in areas such as R&D, production, and services, explore new paradigms, and improve human efficiency, thus truly translating technology into market competitiveness.

Achieving Global Impact is an essential path forward. Midea will steadfastly implement the OBM First strategy, enhance the localization of overseas R&D, manufacturing, and supply chains, and focus on key regions such as North America, South America, Southeast Asia, the Middle East, and Africa to achieve economies of scale. Midea will also strengthen overseas compliance management and risk management, improve localized capabilities, and ensure that our products and services better meet local market demands. Additionally, Midea will ramp up overseas brand promotion and M&A integration to enhance global brand influence and build a truly globalized footprint.

04

Reinventing Ourselves to Weather Economic Cycles

In business, there is no permanent victory—only permanent reinvention. Midea’s story is one of continual self-reflection and evolution. As competition intensifies, Midea will stay alert, even restless—with the courage to break its own patterns and rediscover growth.

Throughout business history, there is no permanent success, only perpetual change and reinvention. Midea’s journey has been one of continuous self-challenge and self-evolution. In the face of increasingly fierce market competition, we must remain vigilant with the mindset that "only the paranoid survive." With the courage to revolutionize ourselves, we must break free from path dependency and achieve strategic transformation and renewed growth.

We must break the molds of thought and structure. Growth sometimes requires disruption. Midea will avoid Large Enterprise Syndromes, where responsibility blurs, decisions slow, and innovation sleeps. We must dare to "take action against ourselves," proactively break the existing interest structure and business framework, and drive fundamental transformations in products, channels, and organizational systems.

We must always maintain an enterprising spirit and a determined mindset. The times are changing, customer needs are evolving, and competitors are transforming. We must adapt by embracing change ourselves. The new generation of management must grow through adversity and shoulder the responsibility for growth. The key to navigating cycles lies in our own hands: with humility, focus, patience, and perseverance, supported by a strong organization and resilience, we will drive every strategy with a strong commitment. Pragmatic action, innovative transformation, and self-improvement will become the most defining traits of Midea.

05

Each Path Is Full

of Opportunities

From a small township workshop to a global technology group, every step across 58 years has been guided by a simple longing: to innovate, to elevate, to make life better.

We will continue to firmly seize the opportunities of the era, placing equal emphasis on both ToC and ToB businesses. The expansive landscape of the ToC sector allows us to navigate freely and explore vast horizons, while the strategic expansion of ToB enables us to gaze upon a boundless sky. Domestically, we are driving a qualitative shift through technological and product leadership, advancing DTC transformation to uncover new growth spaces. Internationally, we remain committed to prioritizing OBM, optimizing investment strategies and enhancing our marketing and manufacturing systems to strengthen localized capabilities.

The tides of time surge forward, yet fundamental principles remain unchanged. We firmly believe that as long as we stay focused on our core strengths and embrace change courageously, and as long as we unite as one and act decisively, every direction will open up as a path to the future.

We still have a long way to go

Yet look—

We have already come this far

……

May every road ahead be passable!