Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
Stock code: 000333 Stock name: Midea Group Announcement No.: 2022-031
Midea Group Co., Ltd.
Interim Report for the First Quarter 2022
Midea Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of the
Company’s Board of Directors have warranted that the information given in this Report is true, accurate
and complete, as well as free of any false record, misleading statement or material omission.
Important Reminders:
1. The Board of Directors, the Supervisory Committee as well as all the directors, supervisors and senior
management staff of the Company have warranted that this Report contains no false record, misleading
statement or material omission. And they shall be jointly and severally liable for the truthfulness,
accuracy and completeness of the information given in this Report.
2. The legal representative, principal in charge of accounting and head of the accounting department of
the Company have represented and warranted that the financial information in this Report is true,
accurate and complete.
3. Is this Report audited by a CPA firm?
□ Yes √ No
This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
1. Key financial information
1.1 Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years?
□ Yes √ No
Jan.-Mar. 2021 YoY Change (%)
Jan.-Mar. 2022
Before Restated Restated
Operating revenue (RMB'000) 90,381,167 82,504,017 82,504,017 9.55%
Net profit attributable to shareholders of
7,177,925 6,468,588 6,468,588 10.97%
the Company (RMB'000)
Net profit attributable to shareholders of
the Company before non-recurring gains 6,993,024 6,649,368 6,649,368 5.17%
and losses (RMB'000)
Net cash flows from operating activities
7,978,986 8,553,861 8,553,861 -6.72%
(RMB'000)
Basic earnings per share (RMB/share) 1.06 0.93 0.93 13.98%
Diluted earnings per share (RMB/share) 1.05 0.92 0.92 14.13%
Weighted average ROE (%) 5.57% 5.35% 5.35% 0.22%
31 Mar. 2022 31 Dec. 2021 Change (%)
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
Before Restated Restated
Total assets (RMB'000) 407,842,387 387,946,104 387,946,104 5.13%
Net assets attributable to shareholders of
132,301,754 124,868,124 124,868,124 5.95%
the Company (RMB'000)
Reasons for the changes to the accounting policies:
The Company has prepared the financial statements for the year ended 31 December 2021 and for the
three months ended 31 March 2022 according to the Q&A for the Implementation of the Accounting
Standards for Business Enterprises issued by the Ministry of Finance on 2 November 2021. For
transportation costs that were incurred before the control of goods was handed over to customers and
for the purpose of executing sales contracts, the Company has reclassified them from selling and
distribution expenses to cost of sales, and has retrospectively restated the relevant data in the same
period of last year.
Total share capital of the Company on the last trading session before disclosure:
Total share capital of the Company on the last trading
6,997,053,441
session before disclosure (share)
Fully diluted earnings per share based on the latest share capital above:
Dividend paid to preference shareholders -
Fully diluted earnings per share based on the latest share
1.0258
capital above (RMB/share)
1.2 Non-recurring gains and losses
√ Applicable □ N/A
Unit: RMB’000
Item Jan.-Mar. 2022 Note
Gains and losses on disposal of non-current assets 12,679
Except for effectively hedging business related to normal
business operations of the Company, gains and losses
arising from the change in the fair value of financial assets
held for trading, derivative financial assets, financial
-261,362
liabilities held for trading, derivative financial liabilities and
other non-current financial assets, as well as investment
gains and losses produced from the disposal of the
aforesaid financial assets and liabilities
Other 366,109
Less: Corporate income tax 8,058
Minority interests (after tax) 59,418
Total 184,901 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable √ N/A
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
No such cases for the Reporting Period.
Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the
as a recurring gain/loss item
□ Applicable √ N/A
No such cases for the Reporting Period.
1.3 Major changes of main items in financial statements and financial indicators, as well as the
reasons for the changes
√ Applicable □ N/A
Unit: RMB’000
31 March 31 December
Financial statement Change
2022/January- 2021/January-Mar Reasons for the changes
items (consolidated) (%)
March 2022 ch 2021
Mainly due to the increased monetary
Other current assets 46,465,237 33,156,012 40.14%
investment products
Loans with the Central Mainly due to the changes in the
308,403 178,878 72.41%
Bank operations of the finance business
Financial liabilities held Mainly due to the increased business
1,565,346 - 100.00%
for trading combinations
Derivative financial Mainly due to the changes in the fair
252,234 157,602 60.04%
liabilities value of derivative instruments
Employee benefits Mainly due to the payment of salaries to
4,551,048 7,535,168 -39.60%
payable employees
Bonds payable 2,853,438 - 100.00% Mainly due to the issuance of bonds
Mainly due to the changes in the
Interest costs 33,226 15,059 120.64%
operations of the finance business
Mainly due to the decreased interest
Investment income 261,189 531,167 -50.83%
income from structured deposits
Gains/(losses) on Mainly due to the changes in the fair
-416,409 -830,632 -49.87%
changes in fair value value of financial assets
Mainly due to the increased gains on
Asset impairment losses 6,945 1,400 396.07%
disposal of non-current assets
Net profit attributable to Mainly due to the decreased profits of
50,656 100,849 -49.77%
minority interests non-wholly-owned subsidiaries
Net cash flows from Mainly due to the increased cash paid
-11,536,258 -932,059 -1137.72%
investing activities to acquire investments
Mainly due to the decreased cash
Net cash flows from
8,587,145 -3,537,964 342.71% payments relating to other financing
financing activities
activities
2. Shareholder information
2.1 Total number of common shareholders and preference shareholders with resumed voting
rights, as well as shareholdings of the top ten shareholders at the period-end
Unit: share
Total number of common shareholders at Total number of preference
438,206 shareholders with resumed 0
the period-end
voting rights at the
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
period-end (if any)
Top 10 shareholders
Sharehol Pledged or frozen
Number of
Nature of ding Number of shares
Name of shareholder restricted
shareholder percenta shares held
shares held Status Shares
ge (%)
Domestic
Pledg
Midea Holding Co., Ltd. non-state-owned 30.99 2,169,178,713 100,000,000
ed
corporation
Hong Kong Securities Clearing Foreign
16.89 1,182,613,943
Company Limited corporation
Domestic
China Securities Finance Co., Ltd. non-state-owned 2.83 198,145,134
corporation
Domestic
Fang Hongbo 1.67 116,990,492 87,742,869
individual
Central Huijin Asset Management State-owned
1.26 88,260,460
Ltd. corporation
Domestic
Huang Jian 1.23 86,140,000
individual
Canada Pension Plan Investment
Foreign
Board－ own funds (stock 1.00 70,126,251
corporation
exchange)
Foreign
Li Jianwei 0.68 47,852,845
individual
Domestic
Yuan Liqun 0.56 39,320,997
individual
Domestic Pledg
Huang Xiaoxiang 0.54 37,835,332 17,348,318
individual ed
Top 10 non-restricted shareholders
Number of non-restricted Type of shares
Name of shareholder shares held at the
period-end Type Shares
RMB common
Midea Holding Co., Ltd. 2,169,178,713 2,169,178,713
stock
RMB common
Hong Kong Securities Clearing Company Limited 1,182,613,943 1,182,613,943
stock
RMB common
China Securities Finance Co., Ltd. 198,145,134 198,145,134
stock
RMB common
Central Huijin Asset Management Ltd. 88,260,460 88,260,460
stock
RMB common
Huang Jian 86,140,000 86,140,000
stock
Canada Pension Plan Investment Board－ own funds RMB common
70,126,251 70,126,251
(stock exchange) stock
RMB common
Li Jianwei 47,852,845 47,852,845
stock
RMB common
Yuan Liqun 39,320,997 39,320,997
stock
RMB common
Huang Xiaoxiang 37,835,332 37,835,332
stock
RMB common
Merrill Lynch International 35,362,310 35,362,310
stock
Explanation of related relationship or/and
acting-in-concert parties among the above-mentioned N/A
shareholders
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
126,983,003 common shares (or 1.81% of the Company’s total
Special account for repurchased shares among the top share capital) were held in the special account for repurchased
10 shareholders shares of Midea Group Co., Ltd. at the end of the Reporting
Period.
The Company’s shareholder Yuan Liqun holds 680,000 shares
in the Company through her common securities account and
38,640,997 shares in the Company through her account of
collateral securities for margin trading, representing a total
Explanation on the top 10 common shareholders holding of 39,320,997 shares in the Company.
participating in securities margin trading The Company’s shareholder Huang Xiaoxiang holds 27,257,332
shares in the Company through his common securities account
and 10,578,000 shares in the Company through his account of
collateral securities for margin trading, representing a total
holding of 37,835,332 shares in the Company.
2.2 Total number of preference shareholders and shareholdings of the top 10 preference
shareholders at the period-end
□ Applicable √ N/A
3. Other significant events
□ Applicable √ N/A
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
4. Financial statements
4.1 Financial statements
4.1.1 Consolidated and Company balance sheets
Consolidated and Company Balance Sheets
Prepared by Midea Group Co. Ltd. As at 31 March 2022 Unit: RMB’000
31 March 2022 31 December 2021 31 March 2022 31 December 2021
ASSETS
Consolidated Consolidated Company Company
Current assets:
Cash at bank and on hand 69,846,860 71,875,556 42,594,726 48,153,997
Financial assets held for trading 5,759,640 5,879,202 3,386,356 3,442,317
Derivative financial assets 697,915 545,865 229,328 157,501
Notes receivable 4,881,564 4,784,914 - -
Accounts receivable 29,667,624 24,636,440 - -
Receivables financing 10,734,607 10,273,552 - -
Advances to suppliers 4,676,190 4,352,807 224,001 106,838
Contract assets 4,258,097 3,823,476 - -
Loans and advances 20,116,922 20,656,600 - -
Other receivables 2,823,263 3,104,065 30,038,666 31,447,849
Inventories 41,761,065 45,924,439 - -
Current portion of non-current
assets 21,571,870 19,851,577 20,822,606 19,095,262
Other current assets 46,465,237 33,156,012 24,720,153 11,713,182
Total current assets 263,260,854 248,864,505 122,015,836 114,116,946
Non-current assets:
Other debt investments 8,643,633 7,893,935 6,768,201 6,034,563
Long-term receivables 841,098 871,356 - -
Loans and advances 871,011 851,927 - -
Long-term equity investments 3,739,027 3,796,705 69,205,856 66,805,691
Investments in other equity
instruments 43,536 45,747 - -
Other non-current financial
assets 7,050,279 5,912,873 471,007 537,214
Investment properties 838,482 859,195 418,091 428,460
Fixed assets 22,909,694 22,852,848 646,786 661,692
Construction in progress 3,233,882 2,690,930 918,984 800,243
Right-of-use assets 2,322,651 2,297,354 646 2,585
Intangible assets 16,846,723 17,173,072 665,199 669,158
Goodwill 27,370,595 27,874,752 - -
Long-term prepaid expenses 1,409,424 1,394,240 86,332 79,799
Deferred tax assets 8,871,002 8,192,309 250,606 289,964
Other non-current assets 39,590,496 36,374,356 35,769,753 33,023,304
Total non-current assets 144,581,533 139,081,599 115,201,461 109,332,673
TOTAL ASSETS 407,842,387 387,946,104 237,217,297 223,449,619
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
Consolidated and Company Balance Sheets (Cont’d)
Prepared by Midea Group Co. Ltd. As at 31 March 2022 Unit: RMB’000
31 March 2022 31 December 2021 31 March 2022 31 December 2021
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Consolidated Consolidated Company Company
Current liabilities:
Short-term borrowings 13,388,929 5,381,623 - -
Loans with the Central Bank 308,403 178,878 - -
Customer deposits and
deposits from banks and
other financial institutions 88,231 78,180 - -
Financial liabilities held for trading 1,565,346 - - -
Derivative financial liabilities 252,234 157,602 - -
Notes payable 31,334,031 32,752,007 - -
Accounts payable 64,861,539 65,983,559 - -
Contract liabilities 26,513,521 23,916,595 - -
Employee benefits payable 4,551,048 7,535,168 450,714 420,536
Taxes payable 4,510,543 5,404,267 658,013 1,184,813
Other payables 4,708,922 4,288,104 164,814,558 151,450,555
Current portion of non-current
liabilities 26,999,131 28,947,540 90,666 92,647
Other current liabilities 53,360,594 48,227,953 12,804 35,932
Total current liabilities 232,442,472 222,851,476 166,026,755 153,184,483
Non-current liabilities:
Long-term borrowings 19,531,218 19,734,020 12,509,900 12,509,900
Lease liabilities 1,580,313 1,533,552 - -
Bonds payable 2,853,438 - - -
Provisions 311,704 310,571 - -
Deferred income 1,197,587 1,228,459 154,015 154,015
Long-term employee benefits
payable 1,539,671 1,825,016 - -
Deferred tax liabilities 4,835,799 4,950,245 12,145 17,028
Other non-current liabilities 687,595 687,689 - -
Total non-current liabilities 32,537,325 30,269,552 12,676,060 12,680,943
Total liabilities 264,979,797 253,121,028 178,702,815 165,865,426
Shareholders’ equity:
Share capital 6,999,815 6,986,564 6,999,815 6,986,564
Capital surplus 21,122,274 20,516,930 28,187,196 27,105,153
Less: Treasury stock (14,624,578) (14,044,550) (14,624,578) (14,044,550)
Other comprehensive income (1,542,699) (1,758,948) (9,876) (7,295)
General risk reserve 700,351 719,922 - -
Special reserve 16,370 15,542 - -
Surplus reserve 9,449,901 9,449,901 9,449,901 9,449,901
Undistributed profits 110,180,320 102,982,763 28,512,024 28,094,420
Total equity attributable to
shareholders of the
Company 132,301,754 124,868,124 58,514,482 57,584,193
Minority interests 10,560,836 9,956,952 - -
Total shareholders’ equity 142,862,590 134,825,076 58,514,482 57,584,193
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 407,842,387 387,946,104 237,217,297 223,449,619
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
4.1.2 Consolidated and Company income statements
Consolidated and Company Income Statements
Prepared by Midea Group Co., Ltd. For the three months ended 31 March 2022 Unit: RMB’000
For the three For the three For the three For the three
months ended months ended months ended months ended
Item 31 March 2022 31 March 2021 31 March 2022 31 March 2021
Consolidated Consolidated Company Company
Total revenue 90,938,820 83,017,120 436,315 442,664
Including: Operating revenue 90,381,167 82,504,017 436,315 442,664
Interest income 557,424 513,036 - -
Fee and commission income 229 67 - -
Total operating cost (82,511,495) (75,354,650) 55,260 257,173
Including: Cost of sales (70,336,385) (64,720,868) (10,369) (11,610)
Interest costs (33,226) (15,059) - -
Fee and commission expenses (1,520) (1,776) - -
Taxes and surcharges (388,006) (390,356) (10,612) (18,648)
Selling and distribution expenses (7,599,881) (6,262,170) - -
General and administrative expenses (2,380,911) (2,404,839) (407,140) (233,265)
Research and development expenses (2,926,616) (2,519,694) - -
Financial income 1,155,050 960,112 483,381 520,696
Including: Interest expenses (417,184) (317,428) (596,719) (504,197)
Interest income 1,308,788 1,158,995 1,082,164 1,024,813
Add: Other income 373,682 345,651 - 152,367
Investment income 261,189 531,167 54,893 254,440
Including: Investment income from associates and joint
ventures 103,807 136,353 59,564 70,473
Gains/(Losses) on changes in fair value (416,409) (830,632) (49,401) (249,001)
Credit impairment losses (219,124) (180,953) -1,178.00 -664.00
Asset impairment losses (117,425) (115,967) 0 0
Gains on disposal of assets 6,945 1,400 (268) (964)
Operating profit 8,316,183 7,413,136 495,621 856,015
Add: Non-operating income 65,080 72,204 5,218 448
Less: Non-operating expenses (18,499) (25,720) (295) -
Total profit 8,362,764 7,459,620 500,544 856,463
Less: Income tax expenses (1,134,183) (890,183) (82,940) (25,533)
Net profit 7,228,581 6,569,437 417,604 830,930
(1) Classified by continuity of operations
Net profit from continuing operations 7,228,581 6,569,437 417,604 830,930
Net profit from discontinued operations - - - -
(2) Classified by ownership of the equity
Attributable to shareholders of the Company 7,177,925 6,468,588 417,604 830,930
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
Minority interests 50,656 100,849 - -
Other comprehensive income, net of tax 184,270 (42,607) (2,581) 11,480
Other comprehensive income attributable to equity owners of
the Company, net of tax 216,310 (25,743) (2,581) 11,480
(1) Other comprehensive income items which will not be
reclassified subsequently to profit or loss 128,387 94,651 - -
1) Changes arising from remeasurement of defined benefit
plan 127,142 94,607 - -
2) Changes in fair value of investments in other equity
instruments 1,245 44 - -
(2) Other comprehensive income items which will be reclassified
subsequently to profit or loss 87,923 (120,394) (2,581) 11,480
1) Other comprehensive income that will be transferred
subsequently to profit or loss under the equity method (4,176) 12,308 (2,581) 11,480
2) Cash flow hedging reserve 117,901 (197,769) - -
3) Differences on translation of foreign currency financial
statements (25,802) 65,067 - -
Other comprehensive income attributable to minority
shareholders, net of tax (32,040) (16,864) - -
Total comprehensive income 7,412,851 6,526,830 415,023 842,410
Attributable to equity owners of the Company 7,394,235 6,442,845 415,023 842,410
Attributable to minority interests 18,616 83,985 - -
Earnings per share:
(1) Basic earnings per share (RMB Yuan) 1.06 0.93 Not applicable Not applicable
(2) Diluted earnings per share (RMB Yuan) 1.05 0.92 Not applicable Not applicable
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
4.1.3 Consolidated and Company cash flow statements
Consolidated and Company Cash Flow Statements
Prepared by Midea Group Co., Ltd. For the three months ended 31 March 2022 Unit: RMB’000
For the three For the three For the three For the three
months ended 31 months ended 31 months ended 31 months ended 31
Item March 2022 March 2021 March 2022 March 2021
Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from sales of goods or rendering of services 77,541,698 70,624,192 - -
Net increase in customer deposits and deposits from banks
and other financial institutions 10,051 11,250 - -
Net decrease in loans and advances 527,693 - - -
Net decrease in deposits with the Central Bank, banks and
other financial institutions - 823,134 - -
Net increase in loans with the Central Bank 129,526 - - -
Cash received from interest, fee and commission 474,350 449,113 - -
Refund of taxes and surcharges 2,324,371 2,185,291 - -
Cash received relating to other operating activities 1,305,290 1,612,552 15,290,251 23,394,410
Sub-total of cash inflows 82,312,979 75,705,532 15,290,251 23,394,410
Cash paid for goods and services (51,917,522) (43,141,773) - -
Net increase in loans and advances - (3,182,455) - -
Net increase in balances with the Central Bank (17,361) - - -
Cash paid for interest, fee and commission (35,019) (17,033) - -
Cash paid to and on behalf of employees (10,851,471) (10,119,594) (143,499) (5,245)
Payments of taxes and surcharges (3,966,746) (3,252,112) (156,665) (14,624)
Cash paid relating to other operating activities (7,545,874) (7,438,704) (730,277) (7,745,089)
Sub-total of cash outflows (74,333,993) (67,151,671) (1,030,441) (7,764,958)
Net cash flows from operating activities 7,978,986 8,553,861 14,259,810 15,629,452
2. Cash flows from investing activities
Cash received from disposal of investments 20,762,454 27,124,590 14,200,000 17,800,000
Cash received from returns on investments 1,537,811 942,913 1,093,468 987,658
Net cash received from disposal of fixed assets, intangible
assets and other long-term assets 28,857 16,233 23 255
Net cash received from disposal of subsidiaries and other
business units 9,349 2,479 - -
Cash received relating to other investing activities 335,082 - - -
Sub-total of cash inflows 22,673,553 28,086,215 15,293,491 18,787,913
Cash paid to acquire fixed assets, intangible assets and
other long-term assets (1,555,626) (2,145,202) (170,899) (78,204)
Cash paid to acquire investments (32,615,005) (26,718,699) (24,155,045) (25,870,441)
Net cash paid to acquire subsidiaries and other business
units (39,180) (146,982) - -
Cash paid relating to other investing activities - (7,391) - -
Sub-total of cash outflows (34,209,811) (29,018,274) (24,325,944) (25,948,645)
Net cash flows from investing activities (11,536,258) (932,059) (9,032,453) (7,160,732)
3. Cash flows from financing activities
Cash received from capital contributions 556,188 358,749 555,188 358,749
Including: Cash received from capital contributions by
minority shareholders of subsidiaries 1,000 - - -
Cash received from borrowings 7,529,546 9,152,583 - 6,200,000
Cash received from issuance of bonds 2,841,690 - - -
Cash received from issuance of short-term financing bonds - 2,999,629 - 2,999,629
Cash received relating to other financing activities 3,200 16,742 - -
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Interim Report for the First Quarter 2022 of Midea Group Co., Ltd.
Sub-total of cash inflows 10,930,624 12,527,703 555,188 9,558,378
Cash repayments of borrowings (954,060) (5,081,076) - (4,308,744)
Cash paid for repayment of short-term financing bonds - (3,000,000) - (3,000,000)
Cash payments for interest expenses and distribution of
dividends or profits (446,421) (426,488) (639,276) (461,849)
Including: Cash payments for dividends or profit to minority
shareholders of subsidiaries (21,038) (81,772) - -
Cash payments relating to other financing activities (942,998) (7,558,103) (649,449) (7,394,100)
Sub-total of cash outflows (2,343,479) (16,065,667) (1,288,725) (15,164,693)
Net cash flows from financing activities 8,587,145 (3,537,964) (733,537) (5,606,315)
4. Effect of foreign exchange rate changes on cash and
cash equivalents (24,799) (50,198) - -
5. Net increase in cash and cash equivalents 5,005,074 4,033,640 4,493,820 2,862,405
Add: Cash and cash equivalents at the beginning of the
period 40,550,039 23,548,509 21,957,042 16,595,063
6. Cash and cash equivalents at the end of the period 45,555,113 27,582,149 26,450,862 19,457,468
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
4.2 Auditor’s report
Is this Report audited by a CPA firm?
□ Yes √ No
This Report is not audited by a CPA firm.
The Board of Directors of Midea Group Co., Ltd.
30 April 2022
11