On January 16, the 2024 Midea Group Management Annual Meeting was held, and Fang Hongbo, Chairman and President of Midea Group, delivered a speech with the theme of "Hitting the Water and Neutralizing the Waves".
Fang Hongbo. On January 27, Haier Group's 2023 Work Summary and Commendation Conference and the Fifth Meeting of the 8th Employee Congress were held. Zhou Yunjie, Chairman of the Board of Directors and CEO of Haier Group, delivered a strategic report entitled "Unbounded Ecology, Infinite Possibilities".
On the evening of January 28, the "Gree 2024 Global Dream Ceremony" was held as scheduled, and Dong Mingzhu, chairman and president of Gree Electric Appliances, delivered a speech in the form of a speech, and the theme of his speech was not mentioned in the public report.
As of January 31, the number of readings of the reports of the three companies on their respective meetings: Midea and Haier are both 100,000+, while Gree is only 3410.
According to public information, at present, the leaders of the Big Three are all ** people.
Fang Hongbo. Born in 1967 in Tongling City, Anhui Province, he is 56 years old. In 1987, he graduated from East China Normal University with a doctorate degree. He joined Midea in 1992 and took over as chairman of the board of directors in 2012 from He Xiangjian, the founder of Midea. Midea is the second employer in his career. Before joining Midea, he worked in Hubei ** Second Automobile.
Zhou Yunjie,Born in Laizhou City, Shandong Province in 1966, he is 57 years old. In 1988, he graduated from Huazhong University of Science and Technology with a bachelor's degree, and entered Haier in the same year with a doctorate degree. Zhou Yunjie has been working at Haier since graduating from university. In November 2021, he took over as Chairman of the Board of Directors and CEO of Haier Group from Zhang Ruimin, the founder of Haier.
Since 2013, Zhou Yunjie has been elected as a deputy to the National People's Congress for three consecutive terms.
Dong Mingzhu,Born in August 1954 in Nanjing, Jiangsu Province, he is 69 years old. He graduated from Wuhu Cadre Education College in Anhui Province with the highest EMBA (Executive Master of Business Administration). In 1975, he worked as an administrative manager in a chemical research institute in Nanjing. He entered Gree in 1990, and in May 2012, Dong Mingzhu took over as chairman of Gree Electric from Zhu Jianghong, the former chairman of Gree Electric Appliances.
Since 2003, Dong Mingzhu has been elected as a deputy to the National People's Congress for five consecutive terms.
The similarities are: since entering the current unit, the working years have been more than 30 years, Zhou Yunjie has worked in Haier for more than 35 years, Dong Mingzhu has worked in Gree for more than 33 years, and Fang Hongbo has worked in the United States for more than 31 years.
Zhou Yunjie served as the director of Haier's sales department, Dong Mingzhu has been engaged in sales since joining Gree, and Fang Hongbo has been responsible for Midea's advertising, marketing and sales since 1996.
The differences are: Dong Mingzhu and Zhou Yunjie are both re-elected deputies to the National People's Congress, only Fang Hongbo is not, from 2012 to 2023, the deputies to the National People's Congress of Midea Group are Yuan Liqun, Li Jinbo and Zhong Zheng.
Dong Mingzhu and Zhou Yunjie are both horses, and Fang Hongbo is a sheep.
Zhou Yunjie and Fang Hongbo both graduated from 985 schools and both obtained doctorates, while Dong Mingzhu studied at a university that was only a junior college at the time, and the highest education was only EMBA.
In Zhou Yunjie's work experience, there is only one unit in Haier, Fang Hongbo has two units in the second automobile and Midea, and Dong Mingzhu should have more than two units.
Dong Mingzhu will turn 70 this year, while the other two are not yet 60 years old.
Fang Hongbo said in his speech: In 2023, Midea people will write the best business performance in history. He mentioned that in the first three quarters of 2023, Midea Group's revenue and profit hit a record high. Although he did not mention the annual operating data, according to him, it can be inferred that the annual operating performance of Midea Group has also hit a record high, which is expected to be close to 400 billion.
According to Haier Group*** data: In 2023, Haier Group's performance will continue to grow steadily: global revenue will be 371.8 billion yuan, an increase of 6%, and total global profit will be 26.7 billion yuan, an increase of 6%; For 15 consecutive years, it has ranked first in the retail volume of large household appliances brands in the world; For 5 consecutive years, it has been selected as the world's only IoT ecological brand in the "Brandz Top 100 Most Valuable Global Brands", and its ranking has continued to improve; For 7 consecutive years, it has been selected as one of the top 50 global brands in China by Google and Kantar Brandz, ranking first in the industry.
According to Gree Electric Appliances*** information: Dong Mingzhu mentioned in his on-site speech that 2023 is the best year for Gree in the 33 years since its establishment, with an estimated operating income of 205 billion yuan to 210 billion yuan, a net profit of 27 billion yuan to 29.3 billion yuan, the company contributes about 17.6 billion yuan in taxes, and dividends average more than 140 per year in the past five years7.3 billion yuan. She mentioned that she hopes that in 2024, Gree Electric will pay more than 20 billion yuan in taxes to the country.
From the above information, it can be seen that the three giants have all achieved the best performance in the company's development history in 2023.
In-depth analysis can find that in this performance, Gree's main product is air conditioning, Haier is air conditioning, refrigerators, washing machines, TVs and other major electrical appliances, while Midea has both air conditioners, refrigerators, washing machines and other major appliances, as well as microwave ovens, smoke stoves, electric kettles, rice cookers, induction cookers and other small household appliances. In addition to the 2C business, the Big Three all have 2B business.
The hundreds of billions of revenue of the three giants are mainly due to multi-brand, multi-category and international operations.
Here are the statistics of the Big Three.
Fang Hongbo. In his keynote speech, he said that Midea Group will continue to promote upgrading in three aspects in the future: structural upgrading, industrial upgrading and business model upgrading.
The core of structural upgrading is to do a good job in products and differentiation, increase R&D investment, optimize the "three generations" model, focus on user needs, implement upgrades, improve product added value, and achieve high-quality development.
Industrial upgrading is to achieve the balanced development of TOC and TOB business, form a cycle complementarity of diversified industries, further increase investment in the TOB industry, strengthen the transformation of TOB, grasp market opportunities, encourage reform and innovation, and strengthen incentive mechanisms and talent construction.
The upgrade of the business model is to implement the DTC reform in the domestic market to achieve direct retail and user access; In overseas markets, we will strengthen the OBM priority strategy, increase resource investment, strengthen the localization layout of the whole value chain such as R&D, manufacturing, marketing, and services, improve infrastructure and capacity building, and build a second home field. In 2024, Midea's business focus will be on "improving the efficiency of the whole value chain operation and upgrading structural growth".
Fang Hongbo emphasized that efficiency is the eternal theme of all enterprises since the industrial revolution, and it is also the biggest advantage of Midea and the most fundamental magic weapon for profitability. Midea has no second way to go, and must work hard to improve efficiency, further tap and strengthen efficiency advantages, and replace local optimal traps with the overall optimization and upgrading of the whole value chain, so as to improve the operation efficiency of the whole value chain.
The operation efficiency improvement path designed by Fang Hongbo is: based on the upgrade of digital capabilities, it is necessary to further find room for improvement in every business link and every detail in the future. Digitalization is the trend of the times and the only way for "direct access to users", Midea has invested in digitalization for more than ten years, and it is necessary to firmly digital3The strategic direction of 0 upgrade is to build a digital world without breaks in the whole value chain of Midea.
Zhou Yunjie,In the second part of the speech, Haier's transformation and upgrading was described, and he said that it is necessary to drive the high-quality development of enterprises through in-depth reform.
Haier's strategic direction in 2024 is reflected in five aspects:
Haier has selected two major tracks, smart housing and industrial Internet, as the industrial fields for its future development.
In the field of smart housing, Zhou Yunjie's goal for Haier is to become the world's first brand, the first scale, and the first market value of the smart housing ecological enterprise. This is the main body of Haier's 2C business.
In the field of industrial Internet, Haier should strengthen the three major platforms and deepen the four vertical industries.
The three major platforms are: Kaos Industrial Internet Platform, HCH Entrepreneurship Acceleration Platform and Haiyongshun Cross-border Service Platform.
The four major vertical industries include: the big health industry, the Internet of urban governance, the Internet of the automobile industry, and the Internet of the new energy industry.
Zhou Yunjie's strategic path for Haier includes five aspects: strengthening technology leadership, accelerating model innovation, strengthening global collaboration, deepening organizational change, and innovating incentive space.
At the same time, we will continue to promote the implementation of the achievements of Rendanyi, achieve more dynamic development, adhere to people-oriented, achieve more warm development, practice ESG concepts, and achieve more responsible development.
Dong Mingzhu,In the speech, there was no clear introduction to the strategic goals and paths of Gree's future development, but from the report of Yicai, we can see that the future development direction of Gree is: focusing on the air conditioning industry, enriching product categories, expanding sales channels, and making efforts in diversified fields such as high-end equipment, industrial products, and green energy, so as to achieve double growth in revenue and profits, and strive to double its performance in the next five years.
In 2024 and beyond, Midea and Haier have clear strategic goals and path plans to achieve them, and through such planning, the uncertainty of the future will be turned into certainty.
At the same time, we can see that although Midea, Haier and Gree started with home appliances, their current and future business areas are not only home appliances, nor are they limited to consumer business, but are transformed and upgraded to 2B industrial and industrial services.
This is worth thinking about and learning from other pan-home enterprises.
Fang Hongbo and Dong Mingzhu both took over as chairmen in 2012, and it will be exactly 10 years by 2022.
Midea Group's 2012 annual report financial indicators.
Midea Group's 2022 annual report financial indicators.
Financial indicators of Gree Electric 2012 annual report.
Financial indicators of Gree Electric's 2022 annual report.
In terms of revenue, we compare
Midea Group's revenue increased from 680 in 2012700 million to 3,439 in 2022200 million, 10 years, an increase of 4 times, the absolute value increased by 275.8 billion, and the compound growth rate remained above 15% for 10 consecutive years.
Gree Electric's revenue increased from 993 in 2012200 million grew to 1889 in 2022900 million, an increase of less than 1 times in 10 years, and an increase of 896 in absolute terms600 million, with a compound annual growth rate of less than 7%.
Comparison in terms of net profit
Midea Group's net profit increased from 34 in 20127.7 billion grew to 295 in 2022500 million, an increase of 7 in 10 years5 times, an increase of 260 in absolute terms7.3 billion.
Gree Electric's net profit increased from 73 in 2012800 million, an increase of 24.5 billion in 2022, an increase of only 23 times, an increase of 171 in absolute terms200 million.
In terms of total assets, it is compared
The total assets of Midea Group have increased from 60.9 billion yuan in 2012 to 425.5 billion yuan in 2022, an increase of 6 times in 10 years, and an absolute increase of 364.6 billion yuan.
The total assets of Gree Electric Appliances have increased from 107.6 billion in 2012 to 355 billion in 2022, an increase of only 2 in 10 years29 times, an increase of 247.4 billion in absolute terms.
From the comparison of basic earnings per share,
Midea Group's basic earnings per share increased from 103 yuan increased to 4. in 202234 yuan, an increase of 32 times, an increase of 3 in absolute terms31 yuan.
Gree Electric's basic earnings per share increased from 2 percent in 201247 yuan, an increase to 4. in 202243 yuan, an increase of only 08 times, an increase of 1 in absolute terms96 yuan.
From the operating cash flow comparison,
Midea Group's cash flow in 2012 was only 4.3 billion, which increased to 34.6 billion in 2022, while Gree Electric's cash flow was 18.4 billion in 2012 and only increased to 28.6 billion in 2022.
From the return on assets comparison,
Midea Group's yield in 2012 was 1673%, which increased to 22 in 202221%, while Gree Electric's yield in 2012 was 3138%, which decreased to 24 in 202219%。
From the above comparison, we can see that in the 10 years of operation and management, the financial indicators of Midea Group are better than those of Gree Electric. In the first year of delivery, the fundamentals of Gree Electric Appliances are much better than those of the United States Group, that is to say, at the beginning of the game, Dong Mingzhu got a good card, but after 10 years of operation, Dong Mingzhu's good card did not play a better result.
And Fang Hongbo's "card skills" are obviously better than Dong Mingzhu.
Although Zhou Yunjie** is only two years, we can also look at 2021 and 2022Haier GroupChanges in financial indicators:
According to the official website of Haier Group, in 2021, Haier Group's global turnover will be 332.7 billion yuan, a year-on-year increase of 10%; Ecological income was 29.2 billion yuan, a year-on-year increase of 235%。
According to data from the official website of Haier Group, its global revenue in 2023 will be 371.8 billion yuan, an increase of 6%, and its total global profit will be 26.7 billion yuan, an increase of 6%.
In two years, Haier's revenue increased by 39.1 billion, with a cumulative increase of 11%.
On the whole, the three giants have maintained a good momentum of development after the handover, and they can become the benchmark enterprises in China's home appliance industry, thanks to their successful technological innovation, scientific corporate governance mechanism, international management and talent training and incentive system, which are worthy of learning and reference from enterprises in the pan-home industry.