Written | Planet
Source | Bedouin Finance
On August 9, Midea Group (SZ: 000333) issued the "Announcement on Research and Demonstration of Major Issues", stating that it is conducting preliminary demonstrations on overseas issuance of securities (H shares) and listing. If the issuance is successful, Midea Group will achieve "A+H" dual listing.
Market insiders revealed that Midea Group chose Bank of America and CICC to be responsible for its listing in Hong Kong. According to Beido Finance, Midea Group was listed on the main board of the Shenzhen Stock Exchange on September 18, 2013, with the code "000333".
In addition to Midea Group itself, the company is also promoting the A-share listing of its subsidiaries. Among them, Meizhi Optoelectronics Technology Co., Ltd. (hereinafter referred to as "Meizhi Optoelectronics"), the lighting business subsidiary of Midea Group, will sprint for listing on the Growth Enterprise Market in April 2023. In July 2023, it plans to spin off Ande Zhilian and list on A shares. .
Bedouin Finance found that even Midea Group's foundry, Hefei Xueqi Electric Co., Ltd. (hereinafter referred to as "Xueqi Electric"), is also sprinting to be listed on the main board of the Shenzhen Stock Exchange. On July 14 this year, Xueqi Electric’s IPO meeting was held and registration was submitted on August 4.
1. Stable performance and full confidence in various indicators
According to public information, Midea Group, established in 1968, is a global group covering the five business sectors of smart home, industrial technology, building technology, robotics and automation, and digital innovation. It has successfully built a business matrix with equal emphasis on ToC and ToB .
At present, Midea Group has formed a portfolio of brands such as Midea, Little Swan, Hualing, COLMO, KUKA, Welling, Hekang, Gaochuang, Wandong and Lingwang, and has about 200 subsidiaries and 35 subsidiaries worldwide. R&D centers and 35 major production bases, with business covering more than 200 countries and regions.
According to data from Aowei Cloud.com, among the six categories of household air conditioners, desktop pan-microwaves, desktop ovens, electric heaters, induction cookers, and electric kettles, Midea’s products rank first in the industry both online and offline. one. In addition, its market share in washing machines, refrigerators and other categories is also among the best.
According to the 2022 financial report of Midea Group, its operating income in 2022 will be 343.918 billion yuan, a year-on-year increase of 0.79%;
In 2022, Midea Group's HVAC revenue will be 150.635 billion yuan, a year-on-year increase of 6.17%; consumer electrical appliances revenue will be 125.285 billion yuan, a year-on-year decrease of 4.99%; robot and automation system business revenue will be 29.928 billion yuan, a year-on-year increase of 9.70%.
In the first quarter of 2023, Midea Group achieved revenue of 96.263 billion yuan, a year-on-year increase of 6.51%; net profit of 8.042 billion yuan, a year-on-year increase of 12.04%; net profit after deducting non-profits was 7.673 billion yuan, a year-on-year increase of 9.72%. As of March 31, 2023, Midea Group's total assets were 441.087 billion yuan.
2. Successive mergers and acquisitions, brand power continues to rise
It is worth mentioning that the fate of Midea Group and Hong Kong stocks has a long history.
It is understood that Midea Electric was listed on the Shenzhen Stock Exchange in 1993 with "Yuemei's A" as its securities abbreviation. Since then, Midea has started the road of "development while acquiring". In October 2004, Midea Group fully acquired Hualing Group, which was listed in Hong Kong at that time, and became the controlling shareholder of Hualing Group.
When the time came to 2007, Midea Group increased its investment in the electromechanical industry. Midea’s electromechanical industry was listed in Hong Kong under the shell of Hualing Group. Hualing Group changed its name to "Welling Holdings". In 2018, Midea Group privatized Welling Holdings and bid farewell to the Hong Kong stock market. A year later, Valin Group returned to Midea Group with a new identity as a younger brand.
Looking at the M&A process of Midea Group, it can be said that it is "make a plan and then move". According to public information, as early as 1998 in the last century, Midea Group acquired Toshiba Macro and expanded its business to the compressor field. In 2016, Midea Group acquired Toshiba's white goods business and obtained a 40-year global authorization of the Toshiba brand.
In terms of washing machine business, in 2008, Midea Group acquired a 24.01% stake in Little Swan, the "first Chinese washing machine stock", becoming the latter's largest shareholder, and injected Royalstar washing machine business into it in 2010. In 2018, Midea Group officially announced the acquisition and merger of Little Swan. In May of the following year, Little Swan withdrew from the capital market.
In the field of robotics and automation, Midea Group acquired German KUKA, one of the "Four Global Robot Families" in 2016, and officially entered the robotics and industrial automation market. promote. In 2022, KUKA will be privatized.
In addition, Midea Group has also completed related acquisitions in the field of new energy. In May 2023, Midea Group took a stake in the smart grid provider Kelu Electronics, holding 22.79% of the shares. In June of the same year, Hekang Xinneng planned to issue shares to Midea Group, raising no more than 1.473 billion yuan, and the latter's shareholding ratio in the former increased to 37.56%.
3. Spin-offs keep going, and the capital chess game has been played many times
Since 2023, Midea Group's layout in the capital market has shifted from "mergers and acquisitions" to "spin-offs." Up to now, Midea Group has publicly implemented two "A-split A" plans. The corresponding spin-off subsidiaries are Meizhi Optoelectronics, which is mainly engaged in the lighting business, and Ande Zhilian, which is mainly engaged in the smart logistics business.
Among them, Meizhi Optoelectronics is an enterprise focusing on the design, research and development, production and sales of lighting and intelligent front-loading products. Its products are widely used in commercial real estate, education and medical care, urban transportation, cultural tourism and other scenarios. Poly, Xincheng, Country Garden and many other demonstration projects.
In fact, Meizhi Optoelectronics’ spin-off and listing journey has already taken its first step as early as 2021. According to the information disclosed by the Shenzhen Stock Exchange, Meizhi Optoelectronics’ listing application materials were accepted by the Shenzhen Stock Exchange’s Growth Enterprise Market in June 2021, but in July 2022, it voluntarily withdrew its IPO application one year later.
Until April 19, 2023, Meizhi Optoelectronics submitted the form to the Shenzhen Stock Exchange again, and replied to the Shenzhen Stock Exchange’s first round of audit inquiry letter on July 20, including the company’s independence, related transactions, spin-off and listing, and the previous withdrawal wait. At present, the Shenzhen Stock Exchange has sent two rounds of inquiries to Meizhi Optoelectronics.
Regarding the voluntary withdrawal of the previous spin-off and listing, Meizhi Optoelectronics explained in its reply that the main reason was that its independent operation time was relatively short during the previous reporting period, and there were still unresolved horizontal competitions after the reporting benchmark date. In addition, Meizhi Optoelectronics at that time also had the problem of sharing IT systems with Midea Group.
On July 29, 2023, Midea Group announced that it would spin off Ande Zhilian and list it on the main board of the Shenzhen Stock Exchange. According to public information, based on Midea's T+3 production and sales model and the one-in-one inventory transformation practice of channels, Ande Zhilian has established an end-to-end full-link digital intelligent logistics operation iteration capability, which can provide customers with integrated supply chain solutions.
At present, Ande Zhilian has 29 branches, 136 distribution centers, 3,000 distribution outlets, 1,500 front warehouses, nearly 200,000 mature lines, and a distribution network covering 39,000 towns and towns, serving more than 3,000 companies. corporate customers. In 2021, Ande Zhilian's annual revenue will exceed 11 billion yuan.
Four. Conclusion
In fact, Midea Group is not short of money. The H-share listing plan is based on "the need to deepen the global strategic layout."
According to Beiduo Finance, Midea Group put forward the four major strategic axes of "leading technology, direct access to users, digital intelligence drive, and global breakthrough" as early as 2021. Transformation and development of internationalized enterprises, and accelerate the layout and growth of overseas business.
On the manufacturing side, Midea Group will continue to promote the construction and commissioning of manufacturing bases in Brazil, Egypt, and Mexico, and promote capacity planning in key market regions such as Europe and ASEAN; on the user service side, Midea Group will complete the construction of global spare parts centers in China and Thailand. The construction of the main warehouse realizes the full coverage of the global call center.
It is not difficult to see that "sailing out to sea" is a very important step in the globalization strategy of Midea Group, and whether the vast overseas market can give it the opportunity to "show its strengths" and whether the spin-off and listing can drive its long-term development. The author will continue to pay attention.