Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Stock code: 000333 Stock name: Midea Group Announcement No.: 2023-022
Midea Group Co., Ltd.
Interim Report for the First Quarter 2023
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. 2023 Jan.-Mar. 2022 YoY Change (%)
Operating revenue (RMB'000) 96,262,922 90,381,167 6.51%
Net profit attributable to shareholders of the
8,041,853 7,177,925 12.04%
Company (RMB'000)
Net profit attributable to shareholders of the
Company before non-recurring gains and 7,672,681 6,993,023 9.72%
losses (RMB'000)
Net cash flows from operating activities
9,272,312 7,978,986 16.21%
(RMB'000)
Basic earnings per share (RMB/share) 1.18 1.06 11.32%
Diluted earnings per share (RMB/share) 1.18 1.05 12.38%
1
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Weighted average ROE (%) 5.46% 5.57% -0.11%
31 Mar. 2023 31 Dec. 2022 Change (%)
Total assets (RMB'000) 441,087,159 422,555,267 4.39%
Net assets attributable to shareholders of
152,352,338 142,935,236 6.59%
the Company (RMB'000)
The Building Technologies Division, the Robotics & Automation Division, and the Industrial Technology
Business Group recorded revenue of RMB7.8 billion (up 41% year-on-year), RMB7.6 billion (up 27%
year-on-year), and RMB6.2 billion (up 11% year-on-year) respectively during the Reporting Period.
Total share capital of the Company on the last trading
7,021,698,756
session before disclosure (share)
Fully diluted earnings per share based on the latest share
1.15
capital above (RMB/share)
1.2 Non-recurring gains and losses
√ Applicable □ N/A
Unit: RMB’000
Item Jan.-Mar. 2023 Note
Gains and losses on disposal of non-current assets 11,344
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
248,525
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 227,585
Less: Corporate income tax 111,249
Minority interests (after tax) 7,033
Total 369,172 --
Other items that meet the definition of non-recurring gain/loss:
□ Applicable √ N/A
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.
2
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
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
2023/January- 2022/January- Reasons for the changes
items (consolidated) (%)
March 2023 March 2022
Financial assets held Mainly due to the increased structured
7,949,326 3,284,593 142.02%
for trading deposits
Derivative financial Mainly due to the changes in the fair value of
449,881 665,484 -32.40%
assets derivative financial instruments
Other receivables 2,968,564 2,211,177 34.25% Mainly due to the increased receivables
Mainly due to the decreased
Other debt investments 6,875,246 11,094,259 -38.03% large-denomination negotiable certificates of
deposit
Short-term borrowings 14,191,536 5,169,480 174.53% Mainly due to the increased borrowings
Employee benefits Mainly due to the payment of remunerations
4,617,834 7,152,217 -35.43%
payable to employees
Current portion of Mainly due to the transfer from long-term
13,846,488 7,240,626 91.23%
non-current liabilities borrowings
Mainly due to the changes in differences on
Other comprehensive
-117,821 108,289 -208.80% translation of foreign currency financial
income
statements
Mainly due to the changes in the operations of
Interest income 373,117 557,424 -33.06%
the finance business
Mainly due to the changes in the operations of
Interest costs 5,743 33,226 -82.72%
the finance business
Financial expenses -710,597 -1,155,050 38.48% Mainly due to the increased exchange losses
Gains/(Losses) on Mainly due to the changes in the fair value of
117,441 -416,409 128.20%
changes in fair value financial assets held for trading
Gains/(Losses) on Mainly due to the increased gains on disposal
11,215 6,945 61.48%
disposal of assets of non-current assets
Non-operating income 35,234 65,080 -45.86% Mainly due to the decreased other income
Non-operating
7,491 18,499 -59.51% Mainly due to the decreased other expenses
expenses
Net profit attributable to Mainly due to the increased profits of joint
103,879 50,656 105.07%
minority interests venture subsidiaries
Net cash flows from Mainly due to the increased cash paid to
-25,100,790 -11,536,258 -117.58%
investing activities acquire investments
Net increase in cash Mainly due to the decreased net cash flows
-6,852,405 5,005,074 -236.91%
and cash equivalents from investing 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 preference
Total number of common shareholders at shareholders with resumed
404,380 0
the period-end voting rights at the
period-end (if any)
3
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Top 10 shareholders
Shareholding Number of Shares in pledge or
Nature of Number of frozen
Name of shareholder percentage restricted
shareholder shares held
(%) shares held Status Shares
Domestic
In
non-state-ow
Midea Holding Co., Ltd. 30.88 2,169,178,713 pledg 100,000,000
ned
e
corporation
Hong Kong Securities Clearing Foreign
19.13 1,344,012,114
Company Limited corporation
Domestic
non-state-ow
China Securities Finance Co., Ltd. 2.82 198,145,134
ned
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 86,170,000
individual
Foreign
UBS AG 0.96 67,140,912
corporation
Canada Pension Plan Investment
Foreign
Board－ own funds (stock 0.88 61,913,903
corporation
exchange)
Foreign
Li Jianwei 0.66 46,154,545
individual
Foreign
Merrill Lynch International 0.64 45,284,179
corporation
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 1,344,012,114 1,344,012,114
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 86,170,000 86,170,000
stock
RMB common
UBS AG 67,140,912 67,140,912
stock
Canada Pension Plan Investment Board－ own RMB common
61,913,903 61,913,903
funds (stock exchange) stock
RMB common
Li Jianwei 46,154,545 46,154,545
stock
RMB common
Merrill Lynch International 45,284,179 45,284,179
stock
RMB common
Yuan Liqun 39,838,159 39,838,159
stock
Related-parties or acting-in-concert parties among
N/A
the shareholders above
Special account for repurchased shares among 146,638,028 shares (or 2.09% of the Company’s total share capital)
4
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
the top 10 shareholders were held in the special account for repurchased shares of Midea
Group Co., Ltd. at the end of the Reporting Period.
The Company’s shareholder Midea Holding Co., Ltd. holds
2,106,178,713 shares in the Company through its common
securities account and 63,000,000 shares in the Company through
its account of collateral securities for margin trading, representing a
Explanation on the top 10 common shareholders total holding of 2,169,178,713 shares in the Company.
participating in securities margin trading The Company’s shareholder Yuan Liqun holds 6,062,100 shares in
the Company through her common securities account and
33,776,059 shares in the Company through her account of collateral
securities for margin trading, representing a total holding of
39,838,159 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
5
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
4. Financial statements
4.1 Financial statements
Consolidated and Company Balance Sheets
Prepared by Midea Group Co. Ltd. As at 31 March 2023 Unit: RMB’000
31 March 2023 31 December 2022 31 March 2023 31 December 2022
ASSETS
Consolidated Consolidated Company Company
Current assets:
Cash at bank and on hand 58,975,173 55,270,099 30,137,556 28,492,401
Financial assets held for trading 7,949,326 3,284,593 348,168 274,120
Derivative financial assets 449,881 665,484 - -
Notes receivable 5,609,072 4,758,129 - -
Accounts receivable 35,551,438 28,237,973 - -
Receivables financing 15,945,626 13,526,540 - -
Advances to suppliers 3,893,601 4,367,211 23,348 34,724
Contract assets 4,548,077 4,498,956 - -
Loans and advances 16,955,505 14,138,756 - -
Other receivables 2,968,564 2,211,177 26,302,847 26,175,101
Inventories 33,356,961 46,044,897 - -
Current portion of non-current assets 45,553,373 37,553,078 40,166,137 33,168,421
Other current assets 42,421,081 46,542,378 37,188,818 33,476,601
Total current assets
274,177,678 261,099,271 134,166,874 121,621,368
Non-current assets:
Other debt investments 6,875,246 11,094,259 3,923,460 7,215,301
Long-term receivables 567,323 614,598 - -
Loans and advances 664,369 693,294 - -
Long-term equity investments 5,168,584 5,188,817 73,312,304 73,103,569
Investments in other equity
41,515 41,359 - -
instruments
Other non-current financial assets 10,216,723 10,625,244 336,340 347,698
Investment properties 789,097 809,936 376,233 386,435
Fixed assets 26,287,025 26,082,992 1,194,320 1,223,553
Construction in progress 4,042,591 3,843,777 665,973 504,757
Right-of-use assets 2,405,328 2,339,878 5,469 8,040
Intangible assets 16,690,265 16,908,915 649,360 653,320
Goodwill 28,733,337 28,548,653 - -
Long-term prepaid expenses 1,586,401 1,579,899 86,679 85,109
Deferred tax assets 11,081,497 10,244,296 280,230 327,251
Other non-current assets 51,760,180 42,840,079 43,163,622 35,423,939
Total non-current assets 166,909,481 161,455,996 123,993,990 119,278,972
TOTAL ASSETS 441,087,159 422,555,267 258,160,864 240,900,340
6
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Consolidated and Company Balance Sheets (Cont’d)
Prepared by Midea Group Co. Ltd. As at 31 March 2023 Unit: RMB’000
LIABILITIES AND SHAREHOLDERS’ 31 March 2023 31 December 2022 31 March 2023 31 December 2022
EQUITY Consolidated Consolidated Company Company
Current liabilities:
Short-term borrowings 14,191,536 5,169,480 400,000 -
Customer deposits and deposits from
banks and other financial 67,651 77,469 - -
institutions
Financial liabilities held for trading 1,595,723 1,580,771.00 - -
Derivative financial liabilities 272,452 234,606 - -
Notes payable 18,237,381 25,572,421 - -
Accounts payable 66,320,879 64,233,225 - -
Contract liabilities 28,415,514 27,960,038 - -
Employee benefits payable 4,617,834 7,152,217 49,048 173,824
Taxes payable 5,887,653 4,955,335 605,195 718,181
Other payables 4,466,566 4,322,025 175,053,365 159,953,351
Current portion of non-current
13,846,488 7,240,626 12,495,887 5,896,701
liabilities
Other current liabilities 64,251,434 57,843,528 53,203 77,066
Total current liabilities 222,171,111 206,341,741 188,656,698 166,819,123
Non-current liabilities:
Long-term borrowings 43,769,565 50,685,948 9,019,900 15,619,900
Bonds payable 3,098,329 3,163,616 - -
Lease liabilities 1,505,430 1,507,480 506 2,350
Provisions 407,856 394,977 - -
Deferred income 1,870,683 1,721,092 151,584 152,548
Long-term employee benefits
1,418,686 1,488,456 - -
payable
Deferred tax liabilities 4,720,248 4,647,673 - -
Other non-current liabilities 680,516 680,482 - -
Total non-current liabilities 57,471,313 64,289,724 9,171,990 15,774,798
Total liabilities 279,642,424 270,631,465 197,828,688 182,593,921
Shareholders’ equity:
Share capital 7,024,197 6,997,273 7,024,197 6,997,273
Capital surplus 21,267,192 19,693,139 29,465,144 27,826,208
Less: Treasury stock (14,933,944) (14,933,944) (14,933,944) (14,933,944)
Other comprehensive income (117,821) 108,289 7,795 (5,679)
General risk reserve 655,307 671,999 - -
Special reserve 16,732 16,350 - -
Surplus reserve 10,702,928 10,702,928 10,702,928 10,702,928
Undistributed profits 127,737,747 119,679,202 28,066,056 27,719,633
Total equity attributable to
152,352,338 142,935,236 60,332,176 58,306,419
shareholders of the Company
Minority interests 9,092,397 8,988,566 - -
Total shareholders’ equity 161,444,735 151,923,802 60,332,176 58,306,419
TOTAL LIABILITIES AND
441,087,159 422,555,267 258,160,864 240,900,340
SHAREHOLDERS’ EQUITY
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
7
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Consolidated and Company Income Statements
Prepared by Midea Group Co., Ltd. For the three months ended 31 March 2023 Unit: RMB’000
For the three months For the three months For the three months For the three months
Item ended 31 March 2023 ended 31 March 2022 ended 31 March 2023 ended 31 March 2022
Consolidated Consolidated Company Company
Total revenue 96,636,184 90,938,820 160,324 436,315
Including: Operating revenue 96,262,922 90,381,167 160,324 436,315
Interest income 373,117 557,424 - -
Fee and commission income 145 229 - -
Total operating cost (87,373,044) (82,511,495) 160,614 55,260
Including: Cost of sales (73,120,434) (70,336,385) (10,202) (10,369)
Interest costs (5,743) (33,226) - -
Fee and commission expenses (590) (1,520) - -
Taxes and surcharges (428,940) (388,006) (4,052) (10,612)
Selling and distribution expenses (8,444,025) (7,599,881) - -
General and administrative
(2,801,492) (2,380,911) (330,901) (407,140)
expenses
Research and development
(3,282,417) (2,926,616) - -
expenses
Financial income 710,597 1,155,050 505,769 483,381
Including: Interest expenses (566,174) (417,184) (1,059,937) (596,719)
Interest income 1,503,878 1,308,788 1,565,822 1,082,164
Add: Other income 339,952 373,682 1,007
-
Investment income 266,267 261,189 54,577 54,893
Including: Investment income from
associates and joint 106,190 103,807 52,833 59,564
ventures
Gains/(Losses) on changes in fair
117,441 (416,409) 63,598 (49,401)
value
Credit impairment losses (277,955) (219,124) (1,035) (1,178)
Asset impairment losses (135,237) (117,425) - -
Gains/(Losses) on disposal of
11,215 6,945 - (268)
assets
Operating profit 9,584,823 8,316,183 439,085 495,621
Add: Non-operating income 35,234 65,080 503 5,218
Less: Non-operating expenses (7,491) (18,499) (201) (295)
Total profit 9,612,566 8,362,764 439,387 500,544
Less: Income tax expenses (1,466,834) (1,134,183) (92,964) (82,940)
Net profit 8,145,732 7,228,581 346,423 417,604
(1) Classified by continuity of operations
Net profit from continuing operations 8,145,732 7,228,581 346,423 417,604
Net profit from discontinued operations - - - -
(2) Classified by ownership of the equity
Attributable to shareholders of the
8,041,853 7,177,925 346,423 417,604
Company
Minority interests 103,879 50,656 - -
Other comprehensive income, net of tax (306,041) 184,270 13,474 (2,581)
Other comprehensive income attributable to
(226,110) 216,310 13,474 (2,581)
equity owners of the Company, net of tax
(1) Other comprehensive income items
which will not be reclassified (4,559) 128,387 - -
subsequently to profit or loss
1) Changes arising from
remeasurement of defined (4,538) 127,142 - -
benefit plan
2) Changes in fair value of
investments in other equity (21) 1,245 - -
instruments
8
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
(2) Other comprehensive income items
which will be reclassified subsequently (221,551) 87,923 13,474 (2,581)
to profit or loss
1) Other comprehensive income that
will be transferred subsequently
20,146 (4,176) 13,474 (2,581)
to profit or loss under the equity
method
2) Cash flow hedging reserve 228,680 117,901 - -
3) Differences on translation of foreign
(438,048) (25,802) - -
currency financial statements
4) Other (32,329)
Other comprehensive income attributable to
(79,931) (32,040) - -
minority shareholders, net of tax
Total comprehensive income 7,839,691 7,412,851 359,897 415,023
Attributable to equity owners of the
7,815,743 7,394,235 359,897 415,023
Company
Attributable to minority interests 23,948 18,616 - -
Earnings per share:
(1) Basic earnings per share (RMB Yuan) 1.18 1.06 Not applicable Not applicable
(2) Diluted earnings per share (RMB Yuan) 1.18 1.05 Not applicable Not applicable
Legal representative: Principal in charge of accounting: Head of accounting department:
Fang Hongbo Zhong Zheng Chen Lihong
9
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Consolidated and Company Cash Flow Statements
Prepared by Midea Group Co., Ltd. For the three months ended 31 March 2023 Unit: RMB’000
For the three months For the three months For the three months For the three months
ended 31 March 2023 ended 31 March 2022 ended 31 March 2023 ended 31 March 2022
Item
Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from sales of goods or
76,222,164 77,541,698 - -
rendering of services
Net increase in customer deposits and
deposits from banks and other financial - 10,051 - -
institutions
Net decrease in loans and advances - 527,693 - -
Net decrease in deposits with the Central
Bank, banks and other financial 53,905 - - -
institutions
Net increase in loans with the Central Bank - 129,526 - -
Cash received from interest, fee and
378,547 474,350 - -
commission
Refund of taxes and surcharges 1,940,204 2,324,371 - -
Cash received relating to other operating
1,007,190 1,305,290 16,429,105 15,290,251
activities
Sub-total of cash inflows 79,602,010 82,312,979 16,429,105 15,290,251
Cash paid for goods and services (42,177,900) (51,917,522) - -
Net increase in loans and advances (2,738,924) - - -
Net decrease in customer deposits and
deposits from banks and other financial (9,818) - - -
institutions
Net increase in balances with the Central Bank - (17,361) - -
Cash paid for interest, fee and commission (6,333) (35,019) - -
Cash paid to and on behalf of employees (11,721,976) (10,851,471) (193,662) (143,499)
Payments of taxes and surcharges (4,663,631) (3,966,746) (5,357) (156,665)
Cash paid relating to other operating
(9,011,116) (7,545,874) (634,476) (730,277)
activities
Sub-total of cash outflows (70,329,698) (74,333,993) (833,495) (1,030,441)
Net cash flows from operating activities 9,272,312 7,978,986 15,595,610 14,259,810
2. Cash flows from investing activities
Cash received from disposal of investments 28,212,804 20,762,454 18,724,000 14,200,000
Cash received from returns on investments 1,247,758 1,537,811 1,093,165 1,093,468
Net cash received from disposal of fixed
assets, intangible assets and other 40,201 28,857 - 23
long-term assets
Net cash received from disposal of
- 9,349 - -
subsidiaries and other business units
Cash received relating to other investing
- 335,082 - -
activities
Sub-total of cash inflows 29,500,763 22,673,553 19,817,165 15,293,491
Cash paid to acquire fixed assets, intangible
(1,554,048) (1,555,626) (204,471) (170,899)
assets and other long-term assets
Cash paid to acquire investments (53,047,504) (32,615,005) (33,650,000) (24,155,045)
Net cash paid to acquire subsidiaries and
- (39,180) - -
other business units
Cash paid relating to other investing activities (1) - - -
Sub-total of cash outflows (54,601,553) (34,209,811) (33,854,471) (24,325,944)
Net cash flows from investing activities (25,100,790) (11,536,258) (14,037,306) (9,032,453)
3. Cash flows from financing activities
Cash received from capital contributions 479,733 556,188 468,718 555,188
Including: Cash received from capital
contributions by minority 11,015 1,000 - -
shareholders of subsidiaries
Cash received from borrowings 11,302,163 7,529,546 400,000
-
10
Interim Report for the First Quarter 2023 of Midea Group Co., Ltd.
Cash received from issuance of bonds - 2,841,690 - -
Cash received relating to other financing
- 3,200 - -
activities
Sub-total of cash inflows 11,781,896 10,930,624 868,718 555,188
Cash repayments of borrowings (1,764,323) (954,060) - -
Cash payments for interest expenses and
(417,966) (446,421) (1,122,267) (639,276)
distribution of dividends or profits
Including: Cash payments for dividends or
profit to minority shareholders of (30,823) (21,038) - -
subsidiaries
Cash payments relating to other financing
(530,869) (942,998) (68,903) (649,449)
activities
Sub-total of cash outflows (2,713,158) (2,343,479) (1,191,170) (1,288,725)
Net cash flows from financing activities 9,068,738 8,587,145 (322,452) (733,537)
4. Effect of foreign exchange rate changes
(92,665) (24,799) - -
on cash and cash equivalents
5. Net increase in cash and cash equivalents (6,852,405) 5,005,074 1,235,852 4,493,820
Add: Cash and cash equivalents at the
51,131,968 40,550,039 27,904,229 21,957,042
beginning of the period
6. Cash and cash equivalents at the end of
44,279,563 45,555,113 29,140,081 26,450,862
the period
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.
29 April 2023
11