In early 2025, we said, “Let’s ride the storm and write a new chapter”. As it turned out, the storms of 2025 were far more intense than we had imagined, with constantly shifting tariffs, global adjustments to production capacity, the unprecedented impact of the AI technology wave, and the ongoing evolution and escalation of geopolitical conflicts. Despite these challenges, Midea still achieved record-breaking performance, with total revenue of RMB 458.5 billion and net profit attributable to owners of the Company of RMB 43.95 billion in 2025, marking double-digit growth in both revenue and profit. Our overseas revenue reached RMB 195.9 billion, representing a year-on-year increase of 16%. The localized self-operated business now spans 50 major countries worldwide, with 29 R&D centers and 43 major manufacturing bases established overseas. The foundational framework and system for our global operations have largely taken shape. Our ToB business revenue reached RMB 122.8 billion, representing a year-on-year increase of 17.5%. The Company completed the acquisitions of Arbonia, Toshiba Elevator China operations, and Carestream Health’s international business, and has largely established the framework for the second growth curve of ToB. All these stem from the unwavering determination of every Midea employee to move forward resolutely in the midst of wind and rain. From the round-the-clock efforts to expand overseas production capacity to the determination of each business unit to overcome challenges, and from the relentless pursuit of technological innovation to the unceasing drive for market expansion, Midea employees around the world have embodied the essence of the Midea spirit through their dedication and hard work. We would like to pay tribute to everyone at Midea. Your hard work and perseverance are what give Midea the strength to weather the storm. We are grateful to all our shareholders. In the face of an uncertain era, your unwavering support is our greatest source of motivation to embrace change and forge ahead with courage.
The tide of time rolls on, and we are all part of it. The K-shaped divergence is accelerating the reshaping of the destinies of nations, industries, companies, and individuals. The history of corporate evolution over the past two centuries illustrates a simple truth: business failure or decline are commonplace; the momentum of success can accumulate into a force that pulls a company down, and the vast majority of businesses ultimately end up in mediocrity. The ultimate strength of a sustainable enterprise lies not in growth, but in its ability to continually reboot or regenerate itself. Today, we must dare to question the paths and methods we once took for granted; we must dare to break away from our ingrained habits and ways of thinking; and we must dare to change the mechanisms and systems that are currently in place and have proven successful in the past. As long as we change, reinvent ourselves, and break new ground, the future of Midea is limitless.
In 2026, the world will continue to move forward amid turmoil and change. Believing in common sense is our way of dealing with it. Common sense is like air—the higher you go, the thinner it gets. Midea will adopt a strategy focusing on core growth and reducing complexity, and will drive comprehensive transformation with the resolve to take a hard look at itself:
Focusing on core growth: We should focus on core businesses, core markets, and core capabilities. We must ensure the growth of our core businesses, white goods and HVAC; we must become one of the top players in the industry and strive to be No. 1 globally. We must firmly commit to our secondary core businesses, robotics and new energy, and seize opportunities to achieve breakthroughs. We must carefully monitor promising businesses and decisively address problematic ones. We must secure sustainable growth chains for ToC and ToB businesses.
Maintaining comprehensive cost leadership across the entire value chain: We must “either lead on cost, or be out of the ordinary”. With a focus on continuous improvement and waste reduction, we shall consistently enhance efficiency, delivering outstanding performance on both the revenue and cost sides. With regard to the fundamentals and the core issues, we should reduce structural costs, institutional costs, complexity costs, and synergy costs, and achieve comprehensive cost leadership throughout the entire value chain.
Pushing for Global Expansion: We shall prioritize overseas OBM operations, establish a global industrial footprint, increase investment in infrastructure, channel networks, and service centers, strengthen overseas compliance management and risk control, and enhance localized operational capabilities, so as to ensure that our products and services better align with local market needs, and achieve our transition from “product exports” to “brand globalization”, thereby boosting Midea’s global brand recognition and product competitiveness.
Committed to Product and Technological Innovation:Innovation is the foundation and core of all business success. We shall intensify our exploration and research in cutting-edge fields such as AI, embodied intelligence, new energy, and healthcare, fully embrace digital and intelligent transformation, build the “Home Brain” and “Factory Brain”, and reshape the industrial ecosystem, focusing on four core scenarios (smart homes, smart manufacturing, smart offices, and industry empowerment).
Unleashing Organizational Agility and Resilience:We shall promote the flattening of all business units within the Group, shortening decision-making chains, implementing a 24-hour response mechanism, establishing clear lines of accountability and consistent performance metrics, upholding a performance-first, results-driven approach, breaking free from bureaucratic inertia and structural “greenhouse effects,” and cultivating “true warriors” with an entrepreneurial spirit to ensure that the organization maintains an agile and efficient entrepreneurial mindset.
The price of prosperity is eternal unrest; growth comes only through disruption, and stability is nothing but an illusion. In these uncertain times, the key to Midea’s success across economic cycles lies in our own hands. Looking back, we’ve been very lucky: the vast frontier of our ToC business has allowed us to roam the world, while our ToB strategy has enabled us to gaze upon the boundless sky. For Midea today, every direction is a path wide open—whether it’s ToC, ToB, domestic, or international. As long as we dare to set out, the path will reveal itself. Market competition will always present new challenges and tests, but every time we face them head-on, we’ll find a new solution and a new path forward. No matter how long and arduous the journey, we will always find a way.
May all paths ahead be clear, and we look forward to continuing our journey with all our shareholders in 2026!
“We still have such a long way to go,
Yes, but you see,
We've come this far.”