1、 1 Midea Group Co.,Ltd.Semi-Annual Report 2022 August 2022Midea Group Co.,Ltd.Semi-Annual Report 2022 2 Section I Important Statements,Contents and Definitions The Board of Directors,the Supervisory Committee,directors,supervisors and senior management of Midea Group Co.,Ltd.(hereinafter referred to

2、 as the“Company”)hereby guarantee that the information presented in this report is free of any misrepresentations,misleading statements or material omissions,and shall together be wholly liable for the truthfulness,accuracy and completeness of its contents.Mr.Fang Hongbo,Chairman of the Board and CE

3、O of the Company,Ms.Zhong Zheng,CFO and Director of Finance of the Company,and Ms.Chen Lihong,head of the accounting department of the Company,have represented and warranted that the financial statements in this report are true,accurate and complete.All directors of the Company attended the Board me

4、eting to review this report.The future plans and other forward-looking statements mentioned in this report shall not be considered as promises of the Company to investors.Therefore,investors are kindly reminded to pay attention to possible investment risks.The Company plans not to distribute cash di

5、vidends or bonus shares or convert capital reserves into share capital.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.Midea Group Co.,Ltd.Semi-Annual Report 2022 3 Contents SE

6、CTION I IMPORTANT STATEMENTS,CONTENTS AND DEFINITIONS.2 SECTION II COMPANY PROFILE AND KEY FINANCIAL RESULTS.6 SECTION III MANAGEMENT DISCUSSION AND ANALYSIS.9 SECTION IV CORPORATE GOVERNANCE.94 SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY.106 SECTION VI SIGNIFICANT EVENTS.131 SECTION VII CHANG

7、ES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS.142 SECTION VIII PREFERENCE SHARES.148 SECTION IX BONDS.149 SECTION X FINANCIAL REPORT.152 Midea Group Co.,Ltd.Semi-Annual Report 2022 4 Documents Available for Reference 1.The original of The Semi-Annual Report 2022 of Midea Group Co.,Ltd.signed by th

8、e legal representative;2.The financial statements signed and stamped by the legal representative,the CFO&Director of Finance and the head of the accounting department;3.The originals of all company documents and announcements that are disclosed to the public via newspaper designated for information

9、disclosure during the Reporting Period;and 4.The electronic version of The Semi-Annual Report 2022 that is released on http:/.Midea Group Co.,Ltd.Semi-Annual Report 2022 5 Definitions Term Definition The“Company”,“Midea”,“Midea Group”or the“Group”Midea Group Co.,Ltd.Midea Holding Midea Holding Co.,L

10、td.TLSC Toshiba Lifestyle Products&Services Corporation KUKA KUKA Aktiengesellschaft Hiconics Hiconics Eco-energy Technology Co.,Ltd.WDM Beijing Wandong Medical Technology Co.,Ltd.Clou Electronics ShenZhen Clou Electronics Co.,Ltd.Swisslog Swisslog Holding AG Servotronix Servotronix Motion Control L

11、td.WINONE WINONE Elevator Company Limited“TTium”or“TTium Motor”WuHan TTium Motor Technology Co.,Ltd.Reporting Period 1 January 2022 to 30 June 2022 Midea Group Co.,Ltd.Semi-Annual Report 2022 6 Section II Company Profile and Key Financial Results 1.Corporate Information Stock name Midea Group Stock

12、code 000333 Stock exchange where the shares of the Company are listed Shenzhen Stock Exchange Name of the Company in Chinese 美的集团股份有限公司 Abbr.of the Company name in Chinese(if any)美的集团 Name of the Company in English(if any)Midea Group Co.,Ltd.Abbr.of the Company name in English(if any)Midea Group Leg

13、al representative Fang Hongbo 2.Contact Us Board Secretary Representative for Securities Affairs Name Jiang Peng You Mingyang Address Midea Headquarters Building,No.6 Midea Avenue,Beijiao Town,Shunde District,Foshan City,Guangdong Province,China Midea Headquarters Building,No.6 Midea Avenue,Beijiao

14、Town,Shunde District,Foshan City,Guangdong Province,China Tel. Fax E-mail IR 3.Other Information 3.1 Ways to Contact the Company Changes to the registered address,office address and their zip codes,website address and email address of the Company in the Repor

15、ting Period:Applicable N/A No such changes in the Reporting Period.The said information can be found in the 2021 Annual Report.Midea Group Co.,Ltd.Semi-Annual Report 2022 7 3.2 Information Disclosure and Place Where the Semi-Annual Report Is Kept Changes to the media for information disclosure and t

16、he place where materials carrying disclosed information such as this Report were kept in the Reporting Period:Applicable N/A The newspapers designated by the Company for information disclosure,the website designated by the CSRC for disclosing this Report and the place where materials carrying disclo

17、sed information such as this Report were kept did not change in the Reporting Period.The said information can be found in the 2021 Annual Report.3.3 Other Information Changes to other information in the Reporting Period:Applicable N/A 4.Key Accounting Data and Financial Indicators Whether the Compan

18、y performed a retroactive adjustment to or restatement of accounting data Yes No H1 2022 H1 2021 Change(%)Operating revenue(RMB000)182,661,009 173,809,565 5.09%Net profit attributable to shareholders of the Company(RMB000)15,995,496 15,009,046 6.57%Net profit attributable to shareholders of the Comp

19、any before non-recurring gains and losses(RMB000)15,691,512 14,636,511 7.21%Net cash flows from operating activities(RMB000)21,394,710 20,176,410 6.04%Basic earnings per share(RMB/share)2.34 2.17 7.83%Diluted earnings per share(RMB/share)2.34 2.16 8.33%Weighted average ROE(%)12.18%12.63%-0.45%30 Jun

20、e 2022 31 December 2021 Change(%)Total assets(RMB000)413,104,145 387,946,104 6.48%Net assets attributable to shareholders of the Company(RMB000)129,665,290 124,868,124 3.84%Midea Group Co.,Ltd.Semi-Annual Report 2022 8 5.Differences in Accounting Data under Domestic and Overseas Accounting Standards

21、 5.1 Differences in the net profit and net assets disclosed in the financial reports prepared under China Accounting Standards(CAS)and International Financial Reporting Standards(IFRS)Applicable N/A No such differences for the Reporting Period.5.2 Differences in the net profit and net assets disclos

22、ed in the financial reports prepared under CAS and foreign accounting standards Applicable N/A No such differences for the Reporting Period.6.Non-recurring Gains and Losses Applicable N/A Unit:RMB000 Item Amount Note Gain or loss from disposal of non-current assets 22,156 Except for effectively hedg

23、ing business related to normal business operations of the Company,gain or loss arising from the change in the fair value of financial assets held for trading,derivative financial assets,financial liabilities held for trading,derivative financial liabilities,and other non-current financial assets,as

24、well as investment income or loss produced from the disposal of the aforesaid financial assets and liabilities-434,341 Other non-operating income and expenses except above-mentioned items 772,377 Less:Corporate income tax 30,095 Minority interests(after tax)26,113 Total 303,984-Particulars about oth

25、er items that meet the definition of non-recurring gain/loss:Applicable N/A Explain the reasons if the Company classifies an item as a recurring gain/loss item,which is enumerated as a non-recurring gain/loss in the:Applicable N/A Midea Group Co.,Ltd.Semi-Annual Report 2022 9 Section III Management

26、Discussion and Analysis 1.Business Scope in the Reporting Period 1.1 Summary of business scope Midea is a global technology group comprising five major business divisions:the Smart Home Business Group,the Industrial Technology Business Group,the Building Technologies Division,the Robotics&Automation

27、 Division,and the Digital Innovation Business.Midea offers diversified products and services.Specifically,the Smart Home Business Group,as the main operating entity of smart appliances,smart home and related peripheral industries and ecological chains,undertakes the construction of intelligent scena

28、rios for end users,user operations and data value discovery,and is committed to providing the best experience of whole-house smart home appliances and service.The Industrial Technology Business Group,with technology as the core driver,commands key technologies in intelligent transportation,industria

29、l automation,green energy and consumer appliances.It operates many brands including GMCC,Welling,HICONICS,SUNYE,SERVOTRONIX,DORNA,MR,MSCT,TOSHIBA,etc.,with its products covering high-precision core components such as compressors,motors,chips,auto parts,electronic expansion valves,variable frequency

30、drive,servo and motion control systems,speed reducers and cooling modules.It provides green,efficient and intelligent products and technology solutions for industrial customers across the world.The Building Technologies Division is responsible for providing products and services in relation to build

31、ings,as well as the relevant operations.With the digital building service platform as the core,it facilitates logistics,information,feeling and energy flows of buildings to provide complete building solutions that are intelligent,digital and low-carbon.The Robotics&Automation Division primarily focu

32、ses on providing solutions of industrial robotics,automatic logistics systems,and transmission systems for future factory-related fields,as well as solutions for health care,entertainment,new consumption,etc.The Digital Innovation Business primarily includes new business arising from the business mo

33、del transformation of Midea Group such as intelligent supply chains and Industrial Internet,which can provide software services,unmanned retail solutions,and production services,among others,for the digital transformation of enterprises.The Digital Innovation Business also comprises Beijing Wandong

34、Medical Technology Co.,Ltd.(WDM)that is engaged in medical imaging devices and related Midea Group Co.,Ltd.Semi-Annual Report 2022 10 services.With“Bring Great Innovations to Life”as its corporate vision,“Integrate with the World,to Inspire Your Future”as its mission,“Embrace whats next-Aspiration、C

35、ustomer First、Innovation、Collaboration、Dedication”as its values,“High-quality Development and High-performance Operations”as its management and operation standard,Midea integrates global resources and promotes technological innovation to create a better life for over 400 million users,major customer

36、s and strategic partners in different areas worldwide every year with satisfying products and services.In face of higher requirements for products and services in the digital Internet era,Midea continues to promote its strategic focus of“Technology Leadership,Direct to Users,Digitization&Intelligenc

37、e Driven,and Global Impact”,so as to rebuild Midea in the new era.Midea,a global operating company,has now established a global platform with around 200 subsidiaries,35 R&D centers,35 major manufacturing bases,and more than 160,000 employees.Its business covers more than 200 countries and regions.Ov

38、erseas,Midea has 20 R&D centers and 18 major manufacturing bases in more than ten countries,with around 30,000 employees.22 currencies are used by Midea in settlement.In addition,Midea is the majority shareholder of KUKA,a Germany-based world-leading provider of robotics and automation solutions,wit

39、h a stake of approximately 95%.1.2 Position in home appliance industry Midea ranks No.245 on the Fortune Global 500 list unveiled in August 2022,moving up 43 places from the year before and marking its seventh year on the list.In July 2022,the Fortune China 500 list was released and Midea ranks No.3

40、5,moving up four places compared with the previous year.Meanwhile,Midea ranks No.217 on the 20th Forbes Global 2000 list released in May 2022.In August 2022,Forbes China and the China Electronics Chamber of Commerce jointly released the list of“China Digital 100”,and Midea was in sixth place for its

41、 comprehensive strength in the area of digital economy.In August 2022,Midea Group topped the list of“Top 200 Enterprises of Chinas Light Industry in 2021”at CLIE Summit 2022 organized by the China National Light Industry Council.In September 2021,Midea won the China Quality Award at the fourth such

42、event with its“5 All 5 Digitalization intelligent quality management model.Up to early 2022,four factories of Midea have been included in the“Global Lighthouse Network”Midea Group Co.,Ltd.Semi-Annual Report 2022 11 initiated by the World Economic Forum,covering air conditioners,microwave ovens,refri

43、gerators and laundry appliances,which represents Mideas leading intelligent manufacturing and digital capabilities across the global manufacturing sector.Meanwhile,Midea takes the lead among domestic home appliance makers by ranking No.36 on the 2022 Brand Finance Tech 100 list released by Brand Fin

44、ance,a British brand assessment institution.Also,Midea ranks No.33 on the 2021 BrandZ Top 100 Most Valuable Chinese Brands list,with its brand value up 58%.Midea has been given excellent credit ratings by the three major international credit rating agencies,Standard&Poors,Fitch Ratings and Moodys.Th

45、e ratings are in a leading position among home appliance manufacturers worldwide as well as among Chinese non-state-owned enterprises.Particularly,Standard&Poors has raised the credit rating on Midea to“A”,making it the highest-rated private manufacturer in China.In the first half of 2022,Midea has

46、successfully retained the Number One Engine of ToC business on the domestic market.According to data provider AVC,Midea ranks first with respect to both the online and offline domestic market share for seven home appliance categories,namely,residential air conditioners,microwave ovens,countertop ove

47、ns,electric fans,electric radiators,induction cookers,and electric kettles.The table below shows the offline market shares and rankings of the Companys primary home appliance products(by retail sales)in H1 2022:Product category Market share Ranking Residential air conditioners 34.27%1 Laundry applia

48、nces 25.66%2 Clothes dryers 26.04%2 Refrigerators 13.91%2 Rice cookers 40.76%1 Microwave ovens 54.74%1 Electric radiators 50.88%1 Induction cookers 46.57%1 Electric fans 40.74%1 Electric kettles 36.96%1 Midea Group Co.,Ltd.Semi-Annual Report 2022 12 Product category Market share Ranking Water dispen

49、sers 43.67%1 Countertop ovens 35.76%1 Electric pressure cookers 39.54%2 Blenders 30.63%2 Water purifiers 19.00%2 Electric water heaters 16.93%3 The table below shows the online market shares and rankings of the Companys primary home appliance products(by retail sales)in H1 2022:Product category Mark

50、et share Ranking Residential air conditioners 35.62%1 Laundry appliances 33.40%2 Clothes dryers 35.47%1 Refrigerators 18.50%2 Microwave ovens 47.11%1 Countertop ovens 25.04%1 Electric pressure cookers 39.15%1 Induction cookers 47.57%1 Dishwashers 29.37%1 Electric kettles 24.52%1 Electric fans 20.94%

51、1 Electric radiators 23.29%1 Water purifiers 19.79%1 Rice cookers 26.68%2 Electric water heaters 31.81%2 Gas water heaters 15.97%2 Sterilizing cabinets 18.39%2 Gas stoves 12.15%2 Water dispensers 13.84%3 Midea Group Co.,Ltd.Semi-Annual Report 2022 13 Product category Market share Ranking Blenders 12

52、.02%3 Range hoods 12.58%3 1.3 Industry Overview A.Home Appliance Industry In the first half of 2022,the domestic economy bumped along under multiple pressures.The domestic GDP growth slowed,the recurrent COVID-19 pandemic dampened economic development,and low income perceptions and confidence indica

53、tors among residents led to a setback in consumption intention and a decline in total retail of consumer goods.In addition,prices of raw materials related to home appliances remained high.According to the 2022 Semi-Annual Report of Chinas Household Electrical Appliance Industry jointly published by

54、the China Household Electric Appliance Research Institute(CHEARI)and the National Household Electrical Appliance Industry Information Center,China saw a decline in both the exports and domestic sales of home appliances.To be specific,the export sales of home appliances was RMB283.3 billion in H1 202

55、2,down 8.2%year-on-year;and the domestic sales of home appliances was RMB360.9 billion in H1 2022,down 11.2%year-on-year.Currently,the world is still in a grave and complex situation due to the pandemic,with multiple challenges for economic development.Nevertheless,in the medium and long run,upgradi

56、ng of the industrial structure,relatively stable increase of household income,diversified consumption,the national policy support for the green and smart industries,as well as continuous upgrading of the standards for home appliances will create new opportunities for growth.In July 2022,the Ministry

57、 of Commerce and 12 other authorities issued the Notice on Several Measures to Promote Consumption of Green and Smart Household Appliances,proposing nine policy measures to promote consumption of green and smart home appliances,which mainly cover four aspects:First,to carry out nationwide household

58、appliance trade-in;second,to promote the use of green and smart home appliances in rural areas;third,to strengthen the whole chain of service and guarantee;and fourth,to consolidate infrastructure support.With the introduction of detailed rules on trade-in and household appliances going to the count

59、ryside,it is expected that household appliance consumption will heat up in the second half of the year.Midea Group Co.,Ltd.Semi-Annual Report 2022 14 According to the data from the National Household Appliances Industry Information Center,the domestic retail sales of air conditioners was RMB78.2 bil

60、lion in H1 2022,down 16.2%year on year.In terms of the product structure,the market share of high-end products kept rising,with the market share(by unit sales)of products with a unit price of over RMB7,000 exceeding 10%in H1 2022.In terms of product functions,the concept of air conditions kept expan

61、ding from the functions of cooling and heating to fresh air,self-cleaning,dehumidification,odor removal,air purification,etc.As the comfort of product experience has been focused on,the fresh air function products have developed rapidly,with their offline market share(by retail sales)surpassing 7%in

62、 H1 2022.According to the data from the National Household Electrical Appliance Industry Information Center,the domestic retail sales of laundry appliances was RMB30 billion in H1 2022,down 9.4%year-on-year,with the retail sales of clothes dryers reaching RMB3.2 billion,up 15.5%year-on-year.In the u

63、pgrade of the laundry appliance market,in terms of the product types,the market share of front-loading products keeps growing stably,with the offline market share(by unit sales)climbing to over 64%(over 35%for washer-dryers).Washing capacity continued to be upgraded,with large-capacity products incr

64、easingly replacing small-capacity ones.The offline unit sales of 10kg-12kg washers occupied a 70%market share,with a year-on-year increase of over 12%.Meanwhile,mid-and high-end products saw a much bigger share in the offline market by unit sales.To give an example,products with a unit price of over

65、 RMB7,000 took up a market share of nearly 10%.According to the data from the National Household Electrical Appliance Industry Information Center,the domestic retail sales of refrigerators were RMB42.7 billion in H1 2022,down 7.3%year-on-year.The market share(by retail sales)of the top five brands i

66、n the domestic refrigerator market has further increased to 72.5%.Due to the impacts of rising raw material prices and structural upgrading,structural upgrading was evident with refrigerators of different prices,with the market share(by unit sales)of products priced over RMB12,000 reaching 7.6%and t

67、he offline market share(by unit sales)of refrigerators with an over-400L capacity exceeding 60%.Consumers intensified willingness to pursue quality life has prompted the refrigerator market to pivot towards high-end multi-dimensional design,which is mainly manifested as good looking,capacious,fresh,

68、and intelligent.In other words,better appearance design and material,larger capacity and structure,improved storage and preservation Midea Group Co.,Ltd.Semi-Annual Report 2022 15 technology,and more smart applications.According to the data from the National Household Electrical Appliance Industry I

69、nformation Center,the domestic retail sales of kitchen appliances was RMB93 billion in H1 2022,down 8.3%year-on-year,with online sales accounting for 50%of the total retail sales.As dishwashers became more popular on the domestic market,the retail sales reached RMB5 billion during H1 2022,up 8.9%yea

70、r-on-year.And product upgrading continued.Integration of functions of washing,sterilization,drying and storage is a growing trend,with nearly 70%of dishwashers carrying the sterilization function and integrated dishwashers becoming more and more popular.With respect to models and specifications,the

71、market share(by unit sales)of built-in products has approximated 85%,with the offline market share(by unit sales)of dishwashers with 15 place settings capacity soaring from 2.5%in H1 2021 to 17%in H1 2022.Integrated stove sales reached RMB11.8 billion in the domestic market,an increase of 16.9%year-

72、on-year.Due to the surge in demand for high-end kitchen appliances,in particular steamers and ovens as a result of the pandemic,integrated stove products have evolved and upgraded rapidly,with the market share(by unit sales)of integrated stoves priced over RMB13,000 reaching 20.8%in H1 2022.The stea

73、mer-ovens have developed dramatically,with the market share(by unit sales)of products priced over RMB8,000 approximating 20%.Smart products with multiple functions are the trend.For instance,intelligent voice control function will be built in to deliver a more convenient handling experience,and inte

74、gration of different cooking methods such as sauting,stir-frying,stewing,baking and steaming enables the multi-cooking scenario possible.According to the data from the National Household Electrical Appliance Industry Information Center,the domestic sales of small domestic appliances was RMB58.9 bill

75、ion in H1 2022,down 10.8%year-on-year,of which the online sales took up a higher 76.7%of the total retail sales.With respect to the market performance of all categories,traditional products such as rice cookers,blenders and electric fans saw a decline in domestic sales while the sales of health-frie

76、ndly vacuum cleaners were relatively strong due to the pandemic.In H1 2022,the domestic sales of vacuum cleaners were RMB12.7 billion,a slight year-on-year growth of 1.1%.By categories,the robot cleaner industry registered a slowdown in growth.According to AVC,the retail sales of robot cleaners were

77、 RMB5.73 billion,up 9%year-on-year.Innovative product functions boosted growth,with the market share of products carrying self-cleaning and automatic Midea Group Co.,Ltd.Semi-Annual Report 2022 16 dust collecting functions continuing to expand.Meanwhile,the product mix has been substantially improve

78、d,with the market share of products priced between RMB3,000 and RMB4,000 reaching 42.7%.Meanwhile,functions and experience of floor scrubbers have been improved as a result of the advancement of technology,represented by the application of new technologies such as roller brush and mop self-drying,st

79、erilization through electrolysed water,push-and-pull.According to AVC,floor scrubbers recorded retail sales of RMB4.2 billion in H1 2022,up 84%year on year.In the meantime,competition is increasingly fierce.As of June 2022,more than 100 floor scrubber brands compete in the online market.According to

80、 the data from the National Household Electrical Appliance Industry Information Center,the online retail sales of home appliances in China surpassed the offline retail sales with RMB199.48 billion in H1 2022,down 1.3%year-on-year,accounting for a higher market share of 55.3%;while the offline retail

81、 sales amounted to RMB161.39 billion,down 21%year-on-year,accounting for a lower 44.7%of the total retail sales.From the perspective of the development trend of the domestic household appliance industry:First,the phenomena of brand concentration and new brand rise coexist,where the concentration of

82、large household appliance brands increase,and brands in the field of kitchen appliances and small household appliances still have opportunities and develop rapidly.Second,the product upgrade is still continuing,mainly focusing on the four development trends of high-end,innovation,integration,and pro

83、duct suites.Third,a variety of channels and scenes jointly promote the progress of the industry.On the one hand,in addition to the traditional offline and online channels and platforms,emerging channels such as Pinduoduo,Douyin,and Kuaishou are rapidly rising.During the 618 period in 2022,the total

84、transaction amount of livestreaming marketing reached RMB144.5 billion,accounting for around 20%of the online transaction amount.On the other hand,new applications and scenes tapped based on insight into new user needs are increasing,expanding from diet,personal care,cleaning,and sleep to health car

85、e,pets,fitness,mother and infant products,security,and more scenes.B.Robotics and Industrial Automation Industry World Robotics 2021 Industrial Robotics released by the International Federation of Robotics(hereinafter referred to as IFR)showed that there will be five trends in robot industry in 2022

86、,which refer to that robots will be applied to more new industries,it will be more easy to operate robots,the skills of robots and workers will get promoted,robots will guarantee manufacturing,and robots will support digital Midea Group Co.,Ltd.Semi-Annual Report 2022 17 automation technology.Global

87、 robot installations rebounded strongly in 2021,with IFR projecting a 13%increase of global robot installations,amounting to 435,000 units.In particular,Americas achieved an increase of 18%year on year,Europe achieved an increase of 7.4%year on year,and Asia achieved an increase of 15%year on year.I

88、FR also predicted that the growth rate of the global industrial robotics industry will slow down relatively from 2022 to 2024,and the annual new installations will exceed 510,000 units in 2024.According to the data released by the National Bureau of Statistics,the domestic production volume of indus

89、trial robotics stood at 202 thousand units in H1 2022,down 11%year on year.In the first half of 2022,the continuation and recurrence of the epidemic had an impact on Chinas economy,as Shanghai and other regions entered a long shutdown one after another.The uncertainty of the international environmen

90、t increased,and factors such as the continued trade friction between China and the United States and the outbreak of the Russia-Ukraine conflict exacerbated the instability of the global supply chain.The robotics industry chain was also greatly affected,as the chip shortage,raw material price rise,a

91、nd logistics disruption and cost increase all had a significant negative impact on the supply side.Some industrial robotics manufacturers encountered capacity shortage and shipping delay,so order delivery was affected.The epidemic also affected the investment plans of downstream manufacturing enterp

92、rises,with some of them suspending or postponing their investment activities.According to the statistical analysis of MIR,in the first half of 2022,only six-axis robots above 20 kg and collaborative robots grew against the trend,whereas all other models showed a decline.Specifically,shipments of six

93、-axis robots above 20 kg grew significantly due to the market demand for new energy vehicles and power batteries;shipments of six-axis robots below 20 kg saw a year-on-year decline due to the contraction of market demand in general industries such as metal processing as a result of the macroeconomic

94、 downturn,commodity price increase,and export obstacles;shipments of SCARA robots declined year-on-year as the 3C electronics industry was affected by the epidemic and slowdown in product innovation and the consumer demand was low;in addition,non-manufacturing sectors such as new retail,health,cater

95、ing,and education were also affected by the epidemic,which led to a decrease in demand for robot applications,while the robot application markets such as electric power,inspection,and medical care performed relatively well.According to the analysis of GG-Robot Industry Institute,with the epidemic un

96、der control and economic stimulation policies introduced successively,the industrial robotics industry Midea Group Co.,Ltd.Semi-Annual Report 2022 18 is expected to achieve a high after a low start.Based on the analysis of the leading economic indicators,the momentum mainly comes from four aspects:F

97、irst,industrial production has stopped falling and trended upward significantly.The industrial value added above the designated size increased by 3.4%year-on-year in the first half of the year,and accelerated and rebound to an year-on-year increase of 3.9%in June.Second,the proportion of manufacturi

98、ng industry in GDP has increased.In the first half of the year,the manufacturing value added above the designated size increased by 2.8%year-on-year,and manufacturing value added accounted for 28.8%of GDP.Third,the driving force of export continues to strengthen.The delivery value for export of indu

99、strial enterprises grew by 10.8%in the first half of the year and increased by 11.1%and 15.1%in May and June,respectively.Fourth,manufacturing investment maintains a high increase.Manufacturing investment increased by 10.4%year-on-year in the first half of the year.As the recovery of the manufacturi

100、ng industry,especially the acceleration of capacity expansion in new energy industries such as lithium battery and photovoltaic markets,drove the growth in demand for industrial robotics,downstream industries will also gradually recover.Meanwhile,in order to reduce the reliance on manpower,the deman

101、d for automated production lines in various fields of manufacturing will continue to increase,and the output of robotics is expected to usher in growth.Moreover,MIR predicts that the industrial robotics market will continue to grow throughout 2022,with a year-on-year growth rate of around 10%.Accord

102、ing to the latest statistics of IFR,in terms of industrial robotic density(the average number of industrial robotics per 10,000 workers),South Korea ranks No.1 in the world with 932 robotics,while the robotic density of China has increased from 49 robotics in 2015 to 246,nearly twice the global aver

103、age of 126.China ranks No.9 in this respect,with great potential and prospects.Supported by diverse factors such as flexible demands of the manufacturing sector,declining demographic dividend,emerging markets and the development of innovative technologies,industrial robotics will be applied to more

104、and more areas.C.Smart Building Industry In the smart building industry,Midea focuses on products,services and related businesses with respect to buildings.It aims to provide users with comprehensive,intelligent and sustainable building solutions based on the digital building platform and by facilit

105、ating the logistics,information,feeling and energy flows.Midea Group Co.,Ltd.Semi-Annual Report 2022 19 The smart building ecosystem mainly includes HVAC,elevator,intelligent building(building automation)and integrated energy management.From the perspective of the industry competition pattern,domest

106、ic HVAC,elevator and building control have the same pattern and two major characteristics.The first is the high proportion of foreign and joint venture brands;the second is the low market concentration.According to the data from HVAC,Industry Online and Changjiang Securities Research Institute,the p

107、roportion of foreign brands of commercial air conditioner in 2021 was about 48%,and the long tail effect was obvious as only four manufacturers have a share of more than 10%.For elevator,the data from the Business Yearbook of Elevator Industry in China and Changjiang Securities Research Institute in

108、dicates that the proportion of foreign and joint venture brands in the elevator market is as high as 70%,while the revenue scale and market share of the top domestic brands are still low.In 2021,the four major brands of Kone,Mitsubishi,Hitachi and OTISs revenues exceeded RMB20 billion in China.The b

109、uilding control market is also dominated by Honeywell,Siemens,Johnson Controls,Schneider and other foreign brands.From the perspective of the market size and development prospects,according to the data from Industry Online,HVAC and Changjiang Securities Research Institute,the sales revenue(excluding

110、 tax)of domestic commercial air conditioner in 2021 was RMB123.2 billion,up 25%year on year,of which domestic sales accounted for about 90%;the compound annual growth rate of the industry in the past five years was 9%.Affected by the real estate industry and the COVID-19 pandemic,sales revenue(net o

111、f tax)of commercial air conditioners was RMB62.7 billion during H1 2022,up 4%year on year.The application field of commercial air conditioner is mainly divided into residential,commercial,industrial and public building.By business type,the sales of ToB business accounted for more than 70%,and the re

112、venue scale was nearly RMB100 billion.In industrial development,the periodicity of the non-residential part of commercial air conditioner was smaller than that of residential part,which was more related to infrastructure investment.For example,government public construction,transportation,data cente

113、r,culture,education and entertainment,medicine and other downstream segmentation still maintained a good growth trend,and a long-term high growth rate.According to the data of National Bureau of Statistics and Changjiang Securities Research Institute,in 2021 the production of domestic elevators,esca

114、lators and lifts was 1.55 million sets,up 17%year on year,which was mainly for domestic sales;the compound annual growth rate was 10%in the past five years,maintaining a steady expansion.Affected by the real estate industry and the COVID-19 pandemic,the domestic output of elevators,escalators and li

115、fts was 647 thousand units during H1 2022,down 11.5%year on year.Judging from the operating data of major manufacturers,Midea Group Co.,Ltd.Semi-Annual Report 2022 20 the output value of a single elevator was about RMB200,000,considering the average factory price of a single elevator equipment and t

116、he maintenance business;the annual market size of domestic elevator equipment was RMB250-300 billion,and the scale of the elevator industry was even larger.The data from EqualOcean Intelligence and Changjiang Securities Research Institute shows that the current market size of intelligent building,wh

117、ich was about RMB7.1 billion in 2021,is relatively small.The equipment-based businesses such as commercial air conditioner and elevator are organs in building construction,whereas building control is the nervous system which controls various equipments for the high-efficiency and low-carbon operatio

118、n of buildings,and determines the overall quality of building solutions.Overall,the domestic revenue of the smart building industry alone is nearly RMB400 billion,and the compound annual growth rate of the industry is between 5%and 10%(revenue caliber).New opportunities are ushered into the smart bu

119、ilding industry,which are carbon emission peak and carbon neutrality,digital and intelligent transformation and domestic replacement.With the establishment of the dual-carbon strategy,the intelligent and low-carbon process of building construction is expected to accelerate.As the Building Energy Con

120、servation Research Center of Tsinghua University and the Changjiang Securities Research Institute showed in relevant data,the energy consumption and carbon emissions of buildings account for a high proportion in the whole society.The carbon emissions of building operation accounted for about 22%of t

121、he total domestic carbon emissions in 2019,and the proportion will further increase for the growing newly started buildings and the decreasing inventory buildings.Therefore,as one of the major sources of carbon emissions in the whole society,the low-carbon or even zero-carbon process in the construc

122、tion field will undoubtedly be propelled.In 2021,a series of carbon emissions peaking and carbon neutrality policies were successively issued,such as the Opinions on Implementing the New Development Concept to Achieve Peak Carbon Emissions and Carbon Neutrality in a Complete,Accurate and Comprehensi

123、ve Manner,the Opinions on Advancing the Green Development of Urban and Rural Development,the Action Plan for Peak Carbon Emissions by 2030,and the 14th Five-Year Plan for Comprehensive Work on Energy Conservation and Emission Reduction.In 2022,Chinas local governments issued their action plans for p

124、eaking carbon emissions while the ministries and committees of the central government rolled out documents for the same purpose,such as the Opinion on Fiscal Support for Peaking Carbon Emissions and Achieving Carbon Neutrality issued by the Ministry of Finance.All these policies mention buildings an

125、d constructions,with a view to Midea Group Co.,Ltd.Semi-Annual Report 2022 21 improving the building energy consumption management system,enhancing the building energy consumption monitoring capacity,building energy saving management capacity,and building energy efficiency level,and promoting the la

126、rge-scale development of ultra-low energy consumption,near-zero energy consumption,and low-carbon buildings.With stronger policy incentives and constraints,the building energy-saving upgrading,intelligent operation,and cooperative energy management are bound to become the main measures for the targe

127、ts in addition to the construction of low-carbon building standards and administrative supervision.As to the market side,the electricity price reform,power rationing and other measures have raised the cost and the input-output ratio in building energy saving renovation,energy management,and digital

128、operation,and thus more and more market entities begin to positively carry out the“dual carbon”strategy and energy saving renovation.Taken as a whole,under the background of dual carbon,the building construction,as one of the main sources of energy consumption and carbon emissions in the whole socie

129、ty,accelerates the process of energy conservation and carbon reduction,and catalyzes the outbreak of demand for efficient low-carbon building solutions.The demand for digital intelligent building will also increase significantly,as the development level of buildings is a key link in smart city and s

130、till lagging behind under the trend of digital economy.At the same time,with continuous progress of communication,computing power and algorithms,the system-level control such as HVAC and elevators will move to the building-level control-the first is the space expansion brought by changes from contro

131、l to service;the second is the narrowing gap to foreign enterprises with first mover advantage.Additionally,the more positive and clear signal comes from the transformation and upgrading of the elevator industry driven by digital intelligence.In 2018,the General Office of the State Council issued th

132、e Opinions on Strengthening the Quality and Safety of Elevators for the purpose of promoting the elevator installation on existing residences and the maintenance of old elevators.Specifically,the maintenance should press for quality,and resources should be allocated on the basis of fully grasping th

133、e operation of elevators,hence the application of information technology such as big data and IoT is getting more important.In 2020,the State Administration for Market Regulation divided the maintenance methods of different elevators according to the standard of whether there is a remote monitoring

134、system based on IoT.The domestic replacement of commercial air conditioner has undergone three processes:unit machine,multi-split machine,and large-scale water units.In 2021,the share growth of chillers of domestic brands began to accelerate and made breakthroughs,leading the commercial air conditio

135、ner industry to the stage of domestic replacement in all aspects,and thus there is Midea Group Co.,Ltd.Semi-Annual Report 2022 22 a large space for future increase.Compared with air conditioner,the domestic replacement process of elevator is relatively slow,but the relevant market pattern will be op

136、timized with the gradually weakened real estate dividend,the changes in maintenance mode,and the application of IoT.In the medium and long term,there will be more competition opportunities in the smart building industry with the market structure of high proportion of foreign investment&low market co

137、ncentration.On the one hand,the policy of double carbon is fostering the energy-saving upgrading and smart operation under the context of high proportion of carbon emissions and energy consumption by buildings.On the other hand,with the improvement of digital intelligence,the input-output effect of

138、smart buildings is changing qualitatively,and the optimization of competition pattern is underway.D.The Companys Key Operations during the Reporting Period The business environment remained harsh in the first half of 2022.With the recurrent COVID-19 pandemic and the Russia-Ukraine conflict,the polit

139、ical and economic environment became more complicated both at home and abroad.Meanwhile,due to supply chain disruptions,the prices of bulk raw materials such as copper and aluminum remained at high levels.In face of these challenges,Midea adhered to the profitability-oriented annual operational prin

140、ciple of“rational revenue,and recovery of profitability”.At the very beginning of 2022,it made swift plan adjustments to concentrate on the core businesses and products and return to the nature of business.Upon relentless efforts,remarkable results were achieved in the first half of the year.Overall

141、,Midea delivered expected operating results,with substantial improvement in profit and cash flow,manifesting its resilience once again.Against an increasingly uncertain backdrop,technology-driven transformation remains the main theme of the current era.Midea adhered to the strategic focus with“Techn

142、ology Leadership”as the core,promoted development both in the ToB and ToC business,and ignited the“Number Two Engine”of the ToB business.Through improving product competitiveness and core technologies in the ToC business,Midea is able to increase profitability,which provides strategic support for To

143、B transformation.It is transforming from a Chinese company to a global one by continuously enhancing its globalization capabilities.Also,the Company is shifting its competitive edges from efficiency to products,technologies and innovation.For H1 2022,Midea achieved,on a consolidated basis,total reve

144、nue of RMB183.7 billion,up 5.04%YoY;and a net profit attributable to shareholders of the Company of RMB16 billion,up 6.57%YoY.Midea Group Co.,Ltd.Semi-Annual Report 2022 23 A.Focused on users and scene-based product planning,and continuously refined the whole value chain leveraging Mideas multi-cate

145、gory advantages and digital technologies,so as to upgrade business scenes,products and services In order to carry on with the“customer-oriented”strategic reform,the Company creates more user value in business scenes,products and services which are in direct contact with users.Based on users yearning

146、 and pursuit for a better life,Midea pursues higher goals such as originality,sustainable selling points and technology explicitness,and continues to empower itself with the tool of big data,so as to achieve the vision of Bring Great Innovations to Life.In addition,based on user needs and consumptio

147、n trends with respect to living rooms,balconies,kitchens,bathrooms,among others,Midea offers its own products and ecosystem products.Household service is comprehensively deepened by using IoT technology,so as to provide intelligent comprehensive solutions for the whole house,making home life more ef

148、ficient,convenient,healthy and comfortable,and improving experience and happiness for consumers.By doing so,it aims to lead the way in the innovation of smart household appliances.Midea independently builds a big data platform integrating market,user and public opinion data,constructs a big data-bas

149、ed innovative planning platform,and implements a product innovation model driven by both big and small data.Centering on the planning process,it achieves the integration of SKU planning and smart scene planning process.Midea continues to launch innovative products that lead the way in satisfying dif

150、ferentiated consumer needs,thus driving consumption upgrading in the industry.It is the first to create the planning connect system in the industry,covering the whole planning process.By achieving cross-department data circulation and integrating internal and external data of the entire value chain,

151、Midea enhances the efficiency of data circulation and shortens the cycle of new product development.Meanwhile,through intelligent analysis,intelligent early warning,intelligent prediction,intelligent decision-making and intelligent control,a unique smart decision-making support model for planning is

152、 created to empower planning decision-making.Compared to traditional market research,the intelligent market scanning efficiency of the big data-based innovative planning center has increased by over 50%,which can closely follow up thousands of categories and explore market opportunities and trends o

153、f users demand.It has covered multiple countries and regions around the world,further strengthening Mideas global planning capability.With the big data platforms empowerment,digital marketing extends to the C2M model,while through user insight and user research,brands and products are empowered,wher

154、e Midea Group Co.,Ltd.Semi-Annual Report 2022 24 real-time market feedback on new products is utilized to accurately target marketing.Real-time interaction with consumers is achieved and supply and demand information is closely connected by perceiving users and activating users information through h

155、undreds of millions of global user touch points,and then product development changes from the chain mode to a closed-loop mode.In terms of industrial design,Midea leads the way in user experience and interaction upgrading with ongoing innovations.In H1 2022,Midea won a total of 120 industrial design

156、 awards,including 34 Red Dot Design Awards,58 iF Design Awards,and 28 IDEA Awards.For smart living room scenes:In the first half of 2022,when the domestic epidemic continued and recurred,Midea launched the first mobile air purification and disinfection machine Protector with a focus on Healthy Air.T

157、his product is characterized by the innovative use of the dual elimination factors of plasma and hypochlorous acid.Wind circulation through the plasma friction grid makes it possible to quickly kill 99.9%of the coronavirus in the air in 30 minutes.Moreover,the active release and settlement of hypoch

158、lorous acid can disinfect the surface of objects,which realizes the healthiness and safety of the whole space.The Protector is also equipped with an isolation water pump to avoid the corrosion of hypochlorous acid to the pump and realizes the physical separation of the impeller and the motor,thus en

159、suring that the motor is capable of reliable long-term operation even in extreme and harsh environmental conditions such as high salinity,high humidity,and strong acid.This product has a clean air delivery rate of 600 m/h for particulate matters and 140 m/h for formaldehyde,and can be used repeatedl

160、y by cleaning the filter regularly.Based on users pain point of slow cooling after using water heating products and relevant demands,Midea launched the Cool Boiled Water Smart Instant Thermos.Its application of the industrys pioneer plate water-cooled heat exchanger uses cold water to quickly cool t

161、he boiling water and produces cool boiled water in 10 seconds.Simultaneously,the cold water recovers the heat of boiling water and then enters the heating tube to be heated,which does not produce sewage in the process and can continuously prepare warm boiled water,saving 60%of energy.The product ado

162、pts double-pump control system and multi-sensory temperature probe+PID algorithm to achieve six kinds of water temperature regulation.This product technology led the industry,applied for more than 40 patents,and won the gold medal at the 2022 International Exhibition of Inventions of Geneva.As certi

163、fied by a third-party authority,Midea Group Co.,Ltd.Semi-Annual Report 2022 25 the sterilization rates of all water temperature grades are greater than 99.9%,significantly improving the user experience.With the industrialization application of this product technology,the group standard T/CAB 0150-20

164、22 Instant Heating and Cooling Water Boiler(for Cool Boiled Water)was successfully released in May 2022.To create a more comfortable living environment,Midea continued to research and apply various fan technologies.Midea achieved self-adaptive comfortable wind adjustment through research on the comf

165、ort wind control technology of wind changing with temperature.Midea realized whole-house 3D surround stereo wind of thermostatic warm air through research on dual-engine PTC control technology of staggered temperature difference.Midea also achieved multi-angle positioning blowing and intelligent obs

166、tacle avoidance through research on contactless detection control positioning technology of oscillating stepping motors.Midea Micro-electrolysis Water Washing Air Cooling Tower Fan AAF12PXJ uses innovative micro-electrolysis sterilization to electrolyze tap water into sterilized water with a sterili

167、zation efficiency of 99.9%.The tower fan uses a water curtain waterfall to flush and clean the air in depth and is equipped with an air-conditioner-level cross flow turbine to offer healthy,fresh and clean wind.Midea Formaldehyde Digital Display Air Purifier KJ800G-H Pro adopts IFD micro-electrostat

168、ic purification technology.It uses the charge device to charge particulate matters in the air and uses the strong electric field to achieve a sterilization rate of 99.9%.IFD cartridge can be highly effective in filtering particles in the full particle size range of PM0.01-PM10,with a purification ra

169、te of 99%.The IFD filter cartridge is washable and reusable,and the formaldehyde sensor carried has strong anti-interference ability and can display indoor formaldehyde concentration in real time.In the first half of 2022,Midea continued the Eureka brands concept of green healthy technology and laun

170、ched the multifunctional fabric cleaning machine Ubox,and multiple functional innovations have been made.The application of electrolytic water sterilization technology achieves green pollution-free bacteria removal technology alongside effective cleaning of fabric.The pioneer shoe product cleaning f

171、unction satisfies the daily care demands of trendy shoes with the unique brush head.The brush head specially designed for pets cleans the hair while combing and can recover dirt in real time,meeting daily pet cleaning needs.The LCD dynamic interactive screen displays cleaning status in real time to

172、enhance users cleaning experience.Mideas floor scrubber products meet consumers demand for ground Midea Group Co.,Ltd.Semi-Annual Report 2022 26 cleaning with its functional integration of suction,dragging,and washing.The new high-end flagship products further optimize the product performance and us

173、e experience.The handle sensor offers two-way forward and backward boost to reduce the burden of cleaning.The forward and reverse rotation control technology for the integrated self-cleaning roller brush improves the self-cleaning effect and fully cleans hidden corners with no residue of stains from

174、 the water jet.The integrated roller brush drying technology prevents long-time moisture which breeds bacteria.The flat lying design with a tilt angle of up to 170 allows cleaning deep to the bottom of furniture,preventing sewage backflow.The integrated electrolytic water sterilization technology,wi

175、th a sterilization efficiency of 99.9%.The close-to-edge dead-angle-free design and unique detachable roller brush design constitute the pioneer truly close-to-edge and dead-angle-free design in the industry,cleaning any dead angle with a single push.The application of intelligent technology allows

176、human-computer interaction,so water volume,suction power,and other parameters can be adjusted as needed.In the first half of 2022,Midea released the first intelligent robot W11,Midea Small White Box,M9,P8,A8,A8+,and other products successively,adhering to the innovative design principle of focusing

177、on user experience.Midea used dual duct dust collection,base station self-cleaning,automatic rag washing,rag drying,bacterial inhibition and deodorization,and other new cleaning technology to provide users with a better cleaning experience.These products are equipped with the industrys leading power

178、 management unit to achieve accurate and intelligent charge and discharge control and enhance the service life and safety of the battery.For smart balcony scenes:The COLMO Light Dry Cleaning 2.0 steam care technology upgrades dry cleaning care and ushers in a new era.Equipped with the industrys pion

179、eer special program for ten types of odor elimination,it achieves A-class rapid odor elimination in five minutes and low temperature bacteria removal of no more than 60C with a bacteria removal rate of 99.9%,winning the China Aerospace Science and Technology|ASES Certification.Key Technology and Ind

180、ustrialization of Double-Driven,Dewatering and Double-Drum Washing Machine with Large Capacity,Key Technology and Industrial Application of Long-Acting Plasma for Deodorization and Sterilization and Application and Industrialization of New Special Effect Technology of Electrode Catalytic Coating for

181、 Use in Washing Machines included in Light Dry Cleaning Technology 2.0 have also been certified as Internationally Advanced by the China National Midea Group Co.,Ltd.Semi-Annual Report 2022 27 Light Industry Council.The original TM technology uses the industrys smallest dual engine system of two-app

182、liance coordination and electric auxiliary heating to meet the demand for fast drying and whole-machine lean design and achieve product suite cost optimization.The industrys pioneer drum hole-free washing machine technology introduces a new water inlet to rinse clothes with running water in a dynami

183、c manner and prevent dirt from flowing back.In addition,the formation of water film effect on the drum wall reduces friction between the clothing and the drum wall,achieving a 26%reduction in the rate of clothing wear and tear.Meanwhile,the independent chamber water storage not only reduces the wate

184、r use between the inner and outer drums to save water by up to 50%but also improves the washing power.The COLMO Interstellar Station dry cleaning care kit combines the intelligent frequency conversion compressor equipped with AI dual frequency conversion upgraded technology and a BLDC intelligent fr

185、equency conversion motor and can intelligently adjust the working frequency,speed,and steering,so as to achieve precise odor elimination for various kinds of delicate and luxurious fabrics as well as dry cleaning care for silk,cashmere,and other high-end fabrics.It is equipped with a plasma generato

186、r,which ionizes the air with a high voltage to achieve odor elimination and sterilization in a truly zero-dead-angle and residue-free manner.The application of the Light Dry Cleaning 2.0 steam care technology achieves precise dust removal,bacteria removal,wrinkle removal,and odor elimination of high

187、-end fabrics through the release of ultra-high-energy soft steam.The intelligent DC frequency conversion motor with the German VDE certification is capable of whole-procedure intelligent regulation of the inner drum rotation speed,steering,and turn-stop ratio and can precisely control the inner drum

188、 rotation speed when drying.The dual frequency conversion source noise reduction,in combination with the multi-layer rear cover passive noise blocking system,achieves remarkable noise reduction effects.With a slim 440 mm case design,the Interstellar Station dry cleaning and care kit can be perfectly

189、 incorporated into most household scenes and spaces.In addition,ergonomically designed,it allows users to easily pick up their clothes.Midea Vigor Series Washer-Dryer Kit is equipped with hole-free inner drum technology to prevent sewage laundry and reduce clothing wear and tear and achieves efficie

190、nt cleaning of clothes while maintaining the original quality of clothing.This product is the industrys first to be awarded the medical-grade laundry certification.The cycle spray technology and fast cleaning 2.0 technology achieve the full utilization of detergent and can shorten laundry time by up

191、 to 30%.Moreover,it is equipped with multi-functional modules:The blue rod silver ion module can achieve sterilization in cold water environment without electricity or heating;the red rod scale inhibition module can adjust the concentration of calcium and Midea Group Co.,Ltd.Semi-Annual Report 2022

192、28 magnesium ions and maintain the softness and color of clothing.Vigor Clothes Dryer,equipped with a hybrid drying system,ensures the thermal temperature conditions for whole-space inactivation of pathogens by setting the coordination of heat,time,and temperature.Adopting UV ultraviolet bacteria re

193、moval technology,it achieves a 99.9%mite removal rate under the national testing standards.Toshiba T15 Series Front-loading Washing Machine has been upgraded to cover products of various capacities and functions.These products realize WIFI intelligent interconnection and OTA upgrade through IoT inte

194、lligence,adopt minimalist glass door appearance design,and achieve the European A-class energy efficiency.The automatic detergent input function uses the third generation of Midea smart detergent input technology with a precision error of only 1 ml to reduce detergent residue.The unique Ultra Fine B

195、ubble mode,with the front cavity pressuring on the special microporous outlet structure at the back end,can produce hundreds of millions of ultra fine bubbles to instantly dissolve sebum and grease for thorough cleanness.The unique Greatwaves program provides the same washing effect as heating by ad

196、justing the washing pace to create strong water flows,saving energy and protecting colors.Additionally,the Steam Care function produces high temperature steam for sterilization and wrinkle removal.The MA500 Series top-loading products for the American market have capacities of 13 Kg and 16 Kg.With l

197、ocalized UI and UX design,these products are equipped with the Turbo fast cleaning function.The products adopt pulsator blade simulation optimization and barrel strength enhancement,which lead to a cleaning capacity increase of 12%and a moisture content reduction of 12%.The products use the Auto Cle

198、an technology and can achieve Brazils A-class energy efficiency.For smart kitchen scenes:The rapid purification technology of Midea Refrigerator has been awarded the certification of first-class purification and healthy preservation,creating a secure storage environment.Specifically,the technology o

199、f high concentration AC silent ion field generation can significantly increase the discharge area and active particle concentration while effectively reducing the short circuit risk arising from high voltage discharge in the low temperature and high humidity environment in the refrigerator.The high

200、odor affinity nano-catalysis technology enhances the catalysts affinity to odor molecules and its own stability.The ionomer induced high current-carrying migration catalysis technology ensures that the catalytic efficiency basically does not decay,meeting the long-cycle use demand of refrigerators.T

201、he light quantum nutrition Midea Group Co.,Ltd.Semi-Annual Report 2022 29 enhancement technology of Midea Refrigerator is a nutrition enhancement technology for fruits and vegetables.Specifically,the 450 nm high-energy blue light can induce the high level of expression of anthocyanin genes,increasin

202、g anthocyanin content by more than 220%.The intelligent sensing moisture control technology achieves the upgrade from passive freshness storage to active freshness locking,accurately identifying the type of food ingredients and matching it with the best storage humidity,so as to ensure the first-cla

203、ss seven-day freshness of fruits and vegetables.The three-layer waterproof design and super scale surface area heat dissipation significantly increase the waterproof performance.COLMOs new AVANT Series Refrigerators,equipped with AI active nutrition technology,overturn passive storage and realize ac

204、tive nutrition management.The industrys pioneer photovoltaic-level wireless power supply technology is used to ensure that meat maintains initial freshness and does not freeze while slowing down the production of hypoxanthine in aquatic products.The VC+active nutrition locking technology is applied

205、to intelligently detect the humidity of ingredients and provide the optimal humidity control program,and the vitamin C retention rate of fruits and vegetables can reach 80%or more.Equipped with intelligent human-aware ambient lights,the refrigerator is capable of human-computer interaction and refri

206、geration lighting at the same time.Toshiba Zhiwei Series Refrigerator,equipped with star cuisine freshness technology,precisely matches the ecological storage environment required for meat and seafood ingredients with the three modes of quick micro-freezing,quick chilling,and original flavor defrost

207、ing.It is also equipped with Toshibas patented UNIT moisture-permeable film,achieving the effect of moisture-permeability and air-impermeability,which prevents cold air from blowing directly on fruits and vegetables,delivers delicate water vapor that directly reaches the cells of fruits and vegetabl

208、es,creates a constant moisture environment suitable for fruit and vegetable storage,and guarantees the freshness of fruits and vegetables for seven days.The industrys pioneer Toshiba patented iTouch technology,is used to solve the pain point of the kitchen scene where both hands are occupied and inc

209、onvenient to open the door.It has the 60-minute rapid ice making function.In addition,special clean water filters cold air to avoid taint of odor,ice making parts are treated by antibacterial processing,and the built-in water filter ensures the cleanliness of the ice.The height design of the middle

210、fruit and vegetable chamber fits Asian consumers body shape,so it is comfortable to use.With a small volume and a large capacity,the inner wall of the refrigerator is made of an imported vacuum insulation material,the thickness of which is only 1/3 of ordinary insulation materials and the insulation

211、 effect of which is better,and the dual frequency conversion technology is used to achieve ultra-low energy consumption.Midea Group Co.,Ltd.Semi-Annual Report 2022 30 Following the current general trend of diversified and intelligent user demands,COLMO CXSP927W-SS8 Range Hood is ultra thin and low-p

212、rofile,exhausting cooking oily fume from the source.The low deep suction structure design makes it closer to the smoke,and the ultra-thin design does not block the pan,so that the oily fume is quickly exhausted without choking the user.The intelligent fresh air purification function can be activated

213、 with a mere touch,and the APP can customize different ventilation scenes at will.The DC frequency conversion cruise booster,equipped with a high-power frequency conversion copper wire motor,has strong power and a frying air volume of up to 28.5 m/min.It can provide 1,260 pa of maximum static pressu

214、re,exhausting the smoke more smoothly and effectively reducing the peak hour backflow of oily fume.Throughout the cooking process,the AI-assisted cooking has no need of manual adjustment,the concentration of oily fume is automatically recognized,and the air volume is automatically adjusted by the AI

215、 algorithm.RF linkage technology enables the activation of the kitchen hood to exhaust oily fume at the moment of ignition.Equipped with IR sensing technology,the refrigerator automatically adjusts the gear based on the concentration of oily fume and pipe pressure without manual adjustment.Its AI ac

216、tive noise reduction function automatically adjusts the power level through the intelligent smoke sensor module to select the appropriate wind gear and reduce noise,thus achieving active noise reduction.Midea launched a new series of products,Oxygen Stove Q63 is designed for better cooking efficienc

217、y on the delicious,aroma-producing basis.With the concept of rapidly well-done,it provides consumers with cooking experience with more tender meat.Also,it is equipped with the smoke-stove linkage technology.Always focusing on users pain points in installation and use,COLMO Star Atlas Water Purifier

218、X1500 adopts modular design based on the global platform development concept.The thickness is only 105 mm,easily meeting the demands of under-sink space installation in various scenes.The product is the industrys first to be equipped with an intelligent front solenoid valve,effectively solving the p

219、roblem that in the winter the water stored in the machine easily freezes and damages the filter cartridge.The pioneer dual-membrane fine filtration system has a larger contact area with water,greatly enhancing the flow and water-saving efficiency.Moreover,the product implements the green concept and

220、 is the first to adopt a recyclable metal body,greatly reducing environmental pollution.The product has won the Valuable Product award of the water purification industry in 2022,the Industry Contribution Award”for the water purifier category in 2022,and the iF Award 2022.COLMO TURING Water Purifier-

221、Heater T2000 opens Midea Group Co.,Ltd.Semi-Annual Report 2022 31 the new purification and heating all-in-one track.The product is the first in the field of water purification to design and position the faucet as a complete intelligent product and the first to introduce the TFT screen,infrared senso

222、r,light-sensitive button technology,springback handle,and other new technologies to the faucet.In addition,the introduction of the optocoupler flowmeter makes accurate quantification possible even in high temperature and strong magnetic conditions,and the error is controlled within 5%,which is bette

223、r than the industry average.The innovative use of proportional temperature adjustment technology can prevent the decay of water flow alongside stepless temperature adjustment,increasing the water flow of the temperature adjustment system by three times,which easily meets the needs of drinking water

224、in different scenes.Based on an in-depth insight into user needs,Midea launched a series of innovative rice cooker products,such as Red Flame Premium Aroma,Live Rice Fresh Aroma,Wind-blown Rice Aroma,Watery Pleasant Aroma,and Rapid Aroma.When the rice leaves the rice field for the table,it experienc

225、es a long period of storage and multiple shipments and can be easily oxidized and lose the original rice aroma.Specifically,the original second-generation rice grain activation technology of the Wind-blown Rice Aroma cooker can solve the pain point of stale rice.In order to meet users requirements f

226、or fried and roasted product storage,Midea launched the Ultra-thin Electric Grill,which is equipped with the industrys latest film heating technology and adopts high-efficiency HP insulation materials.The thickness of the whole machine is only 62 mm,which reduces the thickness by 40%in comparison wi

227、th traditional products.The heating plate adopting film heating technology makes heating more uniform and more efficient and can achieve a whole-machine heating power of more than 2200 W,increasing the preheating speed by 50%.The upper and lower baking trays of the product are free to disassemble an

228、d wash and easy to clean and can also be put into the dishwasher for automatic cleaning.The upper layer of Midea 200XQ2 Sterilizing Cabinet realizes drying,odor elimination,and moisture and mildew resistance with circulating hot air and achieves the maintenance effect of long-term bacterial inhibiti

229、on and odor elimination through PTC hot air circulation drying.The middle and lower layers are featured by two-star dual-effect sterilization and disinfection,which strictly guards the health line of defense and achieves combined disinfection through ultraviolet+light waves,with a sterilization rate

230、 of over 99%.The thermostatic heating technology fully destroys stubborn germs in just 35 minutes.In addition,the intelligent cloud housekeeper can achieve ten customized disinfection modes,and the 72-hour cruise disinfection function makes long-term storage Midea Group Co.,Ltd.Semi-Annual Report 20

231、22 32 possible.The cabinet also has a new inner cavity design of mirror finish stainless steel.COLMO VRF Kitchen Air Conditioner responds to the core needs of users with the anti-oily-fume design of the indoor unit.Specifically,the Premium Golden Fin of the evaporator reduces the accumulation of gre

232、ase and oil,and the return air panel equipped with dual filters realizes seven-layer filtration.It also has a smart self-cleaning function through the indoor unit evaporator and a stepless speed control air supply function.In addition,the indoor unit is as slim as 200 mm,easy to install and space-sa

233、ving.For smart bathroom scenes:Based on users actual needs in water use scenes,Midea independently developed an on-demand heat preservation and energy-saving program as well as an intelligent and precise heating mode to achieve an innovative energy-saving system for efficient use of electricity,whic

234、h can ensure that users use sufficient hot water without wasting and outperforms the first-class energy efficiency performance of the national standard.The programs directional design technology of balanced heat insulation is a cross-border innovative application of aerospace-grade insulation materi

235、als,which achieves efficient and precise temperature locking in all respects and allows quick access to hot water while saving energy and electricity.It can also achieve on-demand quantitative and accurate heating based on the users customized water use needs,conduct real-time AI monitoring of bathi

236、ng time,and display the bathing time of remaining hot water.To solve the main pain points of villa and large family residence users,COLMO Gas Water Heater CE116 provides an effective solution.The product has a beautiful appearance with a glass panel,which is fingerprint resistant,high temperature re

237、sistant,and easy to clean,and the body is also compact and easy to install.The built-in high-performance brushless DC water pump provides strong water power,increases single-point water output by 90%,and can drive a lift height of 17 meters,meeting the multi-point water use demands of multi-storey v

238、illas or large residence users.The gas proportional valve and the solenoid valve can achieve the intelligent control combustion of the four-segment fire row burner with a water temperature difference less than 0.5C.Meanwhile,equipped with intelligent temperature sensing technology,it independently l

239、earns about user habits and take into account weather changes for the self-adaptive adjustment of appropriate water temperature.The aerospace-grade noise reduction,combined with micro-hole noise reduction technology,achieves multi-dimensional noise reduction effect with a working noise as quiet as 3

240、8.7 dB.Midea Electric Water Heater Midea Group Co.,Ltd.Semi-Annual Report 2022 33 F6032-UD(HE)responds to the needs of users and is equipped with user-friendly functions covering the five dimensions of the shape,experience,energy saving,intelligence,and installation,and three bathing scene modes can

241、 be set,namely the extremely fast bath with time-saving rapid heating,the bathtub wash with ten times of normal water amount,and the skin cleaning bath.Specifically,the skin cleaning bath achieves deep disinfection through six layers of cleaning filtration,namely deep filtration of impurities,dynami

242、c running water,whole-pipeline bacterial inhibition,80C high temperature disinfection,interception sterilization,and scattered scale inhibition.Also,equipped with self-cruise frequency conversion,it can independently match two heating powers,and the low power insulation is more energy efficient.Its

243、small volume slim and flat bucket has a large capacity of 60 L.B.Adhered to the strategy of“Technology Leadership”,increased R&D investments,built a global R&D platform for better R&D efficiency,established a digital R&D system for agile innovation,and implemented the strategy of“Innovation Patentab

244、ility,Patent Standardization,Standard Internationalization and Midea Standard Goes Out”Midea continued to invest in R&D.Through larger investments in this respect,it aims to achieve leadership in R&D achievements and product trends,as well as a stronger presence in the industry and a better R&D envi

245、ronment.The Company made innovations with respect to mechanism,and developed more leading products through both excellent user experience and differentiated technologies,reform of the whole value chain of R&D using digital technology,and deep integration of big data analysis and R&D.It kept reformin

246、g its product development model according to the strategic focus of“Leading Products”.An innovative R&D model featuring a“Three-Tier Technical Committee System”and a“Four-Tier R&D System”from the organizational dimension and“Three Generations”from the technology dimension has been put in place and c

247、onstantly refined to support the fulfillment of the goal of“Being the Number One or the Only One”in respect of various product categories.Centering on customer needs and based on different organizations and technologies,the Company carries out innovative product development,research on cutting-edge

248、platforms,research on core components,creation of differentiated selling points and improvement of the basic product performance.Through group development of products across the world,building a global product platform,as well as increasing product development efficiency by way of group planning and

249、 group development,Midea is building“Technology Leadership”.As of June 2022,Midea Group Co.,Ltd.Semi-Annual Report 2022 34 Midea boasts ten corporate technology centers/industrial design centers/post-doctoral research centers at the state level,19 academicians with long-term cooperation and eight ac

250、ademician workstations/workshops,in addition to more than 60 corporate technology centers/engineering centers/industrial design centers/key labs at the ministerial or provincial levels.By doing so,it builds competitive edges with its strength in technology.Under the guidance of the strategy of“Techn

251、ology Leadership”,the innovation platform serves as the core of its technology innovation system and is responsible for the implementation of technology development strategies and the commercialization and application of technology innovation achievements,thus driving Mideas transformation towards a

252、 global technology group in a faster manner.Midea Group is committed to investing in the research of core technologies and has made significant breakthroughs in the main track of household appliances and in the field of new industrial technology.In the project of Research on the Application of Preci

253、sion Washing System based on AI Vision and Electric Spray Arms in Household Dishwashers,Midea invented the precision washing technology based on multi-task image intelligent recognition and realized a truly intelligent and fully automatic mode to meet the demands of Chinese families for the cleannes

254、s and hygiene,convenience and efficiency,and precision washing of dishwasher.In the project of Key Technology and Application of Multi-Grade High-Efficiency Heat Energy Supply of Air Source Heat Pumps,an innovative breakthrough of key technology of air source heat pump water heaters is made to solve

255、 the problem that conventional air source heat pumps cannot operate reliably in the cold areas in the north and to ensure the high efficiency and low-carbon supply of industrial steam,which leads the technical progress and industrial development of air source heat pump heating,achieves pollution and

256、 carbon reduction,energy saving,and efficiency increase,and produces significant economic and social benefits.In the project of Research and Application of Key Technology of Low-noise Heavy-rare-earth-free Permanent Magnet Motors for Compressors,the multiplicative noise of compressors is reduced thr

257、ough the electromagnetic force of the motor body,and its double pioneer technology makes household appliances quieter and more environment-friendly and significantly improves the noise of air conditioning system.In addition,the dependence of permanent magnet motors on heavy rare earth materials is e

258、ffectively relieved through the comprehensive optimization of the magnetic circuit structure of the stator and rotor.As of June 2022,Midea has received a total of 190 Internationally Advanced certificates for its technologies.Midea Group Co.,Ltd.Semi-Annual Report 2022 35 Midea has strengthened the

259、transformation of R&D achievements while carrying out the core technology research.By June 2022,Midea(inclusive of TLSC)held more than 77,000 valid patents.In H1 2022,Midea was granted more than 2,000 invention patents around the globe.Midea continues to improve patent quality.It won multiple awards

260、 at the 2022 23rd China Patent Awards.To be specific,the Dishwasher and the Control Method,Controller,and Refrigerator of Meat Subcooling Preservation won two Silver Invention Awards,the Window Air Conditioner won a Silver Design Award,and the Compressor and the Heat Exchange System with it,Recommen

261、dation Method,System,and Big Data Server of the Air Conditioner and Its Operation Parameters and other patents won six Excellence Awards.In order to provide strong support for the fulfillment of the strategic objective of“Technology Leadership”,Midea further implements the“3+1”standardization strate

262、gy of“Innovation Patentability,Patent Standardization,Standard Internationalization and Midea Standard Goes Out”,and a two-tier(Group-business divisions)standardization management system has been put in place.Meanwhile,to ensure the effective execution of the standardization strategy,the Group has s

263、et up a standardization management committee.With the double drivers of“standard innovation+production innovation”,Midea shifts innovation achievements to advanced technological standards.Additionally,it endeavors to play a bigger part with respect to advanced technology standards of the industries,

264、aiming to create more value for users,partners and industries.During H1 2022,Midea took part in the formulation/revision of 149 technological standards,including six international standards,33 national standards,11 industry standards,and 99 local and group standards,including the Guidelines for Info

265、rmation Disclosure of Enterprise Carbon Emission Management,Artificial Intelligence-Audio,Video and Image Analysis Algorithm Interface,A.C.Ventilating Fans and Regulators for Household and Similar Purposes-Methods for Measuring Performance,Fine Bubble TechnologyGeneral Principals for Usage and Measu

266、rement of Fine BubblesPart 1:Terminology,Information TechnologyDigital TwinsPart 1:General Requirements,Radio Interference of Antenna and Receiving SystemPart 4-1:EMC Test Method for Electronic Equipment Combined with Radio Module,Minimum Allowable Values of Energy Efficiency and Energy Efficiency G

267、rades for Domestic Waste Food Disposers,and General Technical Requirements for Smart Aging Household Products.In addition,Midea was also awarded the Third Science and Technology Award-Standard Contribution Award by the China Society for the Promotion of Science and Technology Commercialization.Midea

268、 Group Co.,Ltd.Semi-Annual Report 2022 36 C.Deepened the channel transformation,further improved the channel efficiency and rebuilt the retail and ToB service abilities so as to achieve direct connection with customers Being customer-oriented,Midea continues to enhance vertical efficiency and horizo

269、ntal synergy efficiency,as well as accelerate retail growth and retail transformation.Through the reform of direct retailing,Midea has been continuously promoting the vertical efficiency improvement of offline channels,with the shift from distributors to operators completed and the retail operation

270、capability greatly improved.Meanwhile,organizational reform has provided effective support for the horizontal synergy efficiency enhancement.The China division and product divisions give play to their expertise and work with the operation center.Thus,the operation center is made the“main battlefield

271、”,with deep coordination among all product categories.Horizontal synergy efficiency has been greatly improved in channel expansion,scenario-based transformation at the retail end,etc.Through the corporate operations of the operation center,Midea has realized One Midea for all markets,ensuring the co

272、nsistency of user service and experience.In H1 2022,online sales as a percentage of Mideas total sales remained over 45%.Mideas online sales exceeded RMB44 billion,and it remained the best-selling household appliance manufacturer on major e-commerce channels such as JD and T-mall for ten consecutive

273、 years.In terms of e-commerce,Midea strengthened the segmentation of channel operation,reconstructed and specially built the sales channels on Pinduoduo,interest e-commerce,and KA/TOP,focused on developing COLMO and Toshibas ability of online consistency operation,and accelerated the all-channel and

274、 all-brand structure optimization.As its sales growth rate far exceeded that of mainstream e-commerce platforms,Midea achieved new growth.Meanwhile,Midea focused on enhancing new capabilities such as self-operation,self-livestreaming,and content marketing to consolidate the operation competitiveness

275、.As online and offline markets integrated at a faster speed,based on different levels and characteristics of different channels,as well as changes to customers needs and ways of spending,Midea drives the retail transformation based on user demands and experience,and keeps refining the retail operati

276、ons system,so as to achieve direct connection with retail customers.This mainly involves the following aspects.Firstly,being customer experience-oriented,it provides just the shopping experience wanted by customers by putting in place an exclusive store network covering all channels.To be specific,i

277、t possesses more than 1,300 pre-decoration stores in the domestic channels of building materials and home decoration,over 2,600 flagship stores in districts and Midea Group Co.,Ltd.Semi-Annual Report 2022 37 counties,as well as over 14,000 multi-category stores in towns and villages.Second,in terms

278、of the retail segment,Midea integrated the advantages of all product categories and united with brands in other industries to create an all-scene,fully interconnected,and whole-household ecological immersion experience for consumers.Midea built intelligent and digital terminals and promoted the inst

279、allation of intelligent scenes in terminal stores.More than 1,700 stores have been covered and more than 3,100 scenes exhibition areas have been built,and the construction of all-category halls has been piloted in offline channels.Meanwhile,Midea builds immersive 3D model rooms for entire home appli

280、ances focused on home decoration users,providing a roaming shopping experience to achieve accurate recommendations and exclusive intelligent shopping guide.At the same time,focused on the improvement of the product suite purchase,it builds the service chain and exclusive rights and interests system

281、for home decoration product suite purchase,driving transformation to integrated services for home decoration+home appliances,and providing home decoration users with time-saving,cost-effective and worry-free comprehensive solutions.Third,Midea actively seeks new business opportunities.On emerging ch

282、annels such as Pinduoduo,Douyin,Kuaishou,and Xiaohongshu,Midea has refined its product offering and optimized the marketing and rating system.It also continued to build the operation platform for e-commerce.By strengthening content and digital marketing,gaining insight into users,and segmenting thei

283、r needs,Midea promoted the integration of quality and efficiency,improved DTC capability,and upgraded from traffic operation to user operation.The number of members and acquired customers on JD,Tmall,and other platforms was leading in the industry,and the proportion of self-broadcast on Douyin in Ju

284、ne was over 85%.Fourth,special campaigns have been carried out to make product mix breakthroughs.User needs are accurately identified through data analysis,new measures are taken to drive growth in new product categories,efforts are made to improve the smart scenario operation capability,and breakth

285、roughs are constantly made on the high-end market.Fifth,post-sales service and logistics experience are well optimized.Midea promoted the construction of the unified distribution cloud warehouse and customer service middle office and the transformation of reverse process and improved the ToB forward

286、 fulfillment timeliness and reverse service capability.Midea leverages the“Digitization&Intelligence Driven”strategy to be“Direct to Users”,and initiates a series of business moves in user experience,user operation and user service from user needs and service scenarios.Based on the underlying data c

287、apabilities for user demand insights,Midea can better serve users through user life cycle management,membership and private domain operations to enhance user Midea Group Co.,Ltd.Semi-Annual Report 2022 38 loyalty.Firstly,Midea focuses on user experience and improves the user experience of the whole

288、value chain under the guidance of the Net Promoter Score(NPS),with the NPS increasing by 10%compared to H1 2021.In addition,Midea strengthens user operation,promotes the establishment of membership system and private domain traffic,and deeply promotes the intelligence and IoT of products.By the end

289、of June 2022,the cumulative number of registered members exceeded 120 million.Furthermore,Midea reinforces the building of data platform and commercial data analysis.Analysis of user consumption behavior data serves as a strong support for business decision-making.Midea deepens and promotes the busi

290、ness model change and the digital and intelligent transformation of the user service system to provide one-stop whole-home smart home appliance service solutions for users.First,Midea reconstructed the user experience from the user perspective with a focus on 24-hour service speed improvement,reache

291、d an achievement rate of 86%,upgraded the 521 service standards,and reconstructed the return and replacement procedure experience.Replacement instead of repair has been fully implemented for small domestic appliances and partly piloted for major domestic appliances.The return and replacement time ha

292、s been shortened to three days through online identification/no identification or the simultaneous delivery of the new appliance and recovery of the old one.Second,Midea accelerated the construction of active service capabilities,transformed from passive waiting to active service for users,and built

293、 the active service platform.Twenty-one active service scenes were launched,with more than 1.85 million active service times,more than 400,000 private domain users,and a retention rate of up to 96%.Third,Midea built a whole-chain closed-loop system for the voice of customers(VOC)and launched the use

294、r voice intelligent analysis platform to achieve rapid discovery,exploration,distribution,closed-loop management,and monitoring of all-channel problems,with a closed-loop improvement rate of over 98%for VOC.Fourth,Midea improved COLMOs high-end service experience,promoted the suite-based constructio

295、n of the COLMO network,selected high-quality service providers,and invested resources in cultivating suite service capabilities.More than 2,200 COLMO suite service outlets have been developed to select high-quality engineers from multiple dimensions and guarantee and improve the reputation of high-e

296、nd brand services.Fifth,Midea carried out green recycling business,deployed the two modes of self-owned channel recycling and external cooperation for the market recycling end,and built the Internet+recycling platform.Phase Three of the green recycling system has been launched,achieving the online c

297、irculation of recycling information.Midea Group Co.,Ltd.Semi-Annual Report 2022 39 Transformation of the ToB business model has been further deepened.Based on the Groups five business segments,the business model has been upgraded from traditional hardware product packages to scene-based solutions ta

298、rgeting customers in the whole industry,so as to enhance sales and brand presence on the ToB market.Meanwhile,refinements have been carried out for the existing customer,product and business structures,thus increasing the profitability of the business value chain.Midea has enhanced cross-division ho

299、rizontal synergy,forming a regular special collaboration mechanism for information exchange,business opportunity sharing,market strategy making,resource allocation and other aspects.In addition to the traditional home appliance industry,Midea has unfolded coordinated marketing in the ToB business of

300、 the Building Technologies Division,the Robotics&Automation Division,and the Digital Innovation Business through industry-wide solution development and promotion.In the first half of 2022,Midea focused on improving delivery capability to enhance customer satisfaction while focusing on promoting the

301、transformation of Mideas ToB business model toward systematic solutions.In terms of key industries such as intelligent manufacturing,new and old infrastructure,office R&D,business services,and medical and health care,Midea cooperated with head customers in various industries,designed and delivered s

302、pecialized solutions based on industrial characteristics and customer needs,and strongly supported the transformation of relevant industries and corporate customers toward intelligence,automation,low carbon,and digitalization in the context of the carbon peak and carbon neutrality policy.Annto,a sub

303、sidiary of Midea Group,is a technological innovation-based provider of supply chain(logistics)service.It is committed to providing customers with end-to-end digital and intelligent supply chain solutions.In terms of internal support and services,under the background of Midea Group promoting the T+3

304、business model deep reform,Annto further promoted the logistics reform and improved B2C logistics capacity.Through big data analysis and data modeling and based on user needs,Annto refines and integrates its warehouse network across the country and expands the unified warehousing and distribution mo

305、del to retail stores.Overall planning of channel inventories and unified operation of warehousing and distribution boost channel efficiency and provide support for comprehensive standardization and digitalization of user services.Annto refines the integrated delivery and installation service network

306、 and connects the links from manufacturing to consumption,providing support for the achievement of Mideas“Direct to Users”strategy.Annto has established an integrated and smart logistics Midea Group Co.,Ltd.Semi-Annual Report 2022 40 platform for the whole process of production logistics,warehousing

307、,urban distribution,delivery and installation.It also cooperated with Sino-US Global Logistics Institute of Shanghai Jiao Tong University to establish the Joint Research Center for Smart Logistics and Supply Chain,generating achievements in route planning for delivery vehicles,scheduling and control

308、ling of digital manufacturing logistics and other fields.In the first half of 2022,Annto completed the deepening and application of urban delivery capacity scheduling algorithm and corresponding scheduling system in 65 operation centers nationwide and launched research and application projects on co

309、re warehouse operation capabilities such as storage network optimization and warehouse storage and sorting efficiency optimization,in order to form practical results such as solutions,key algorithms,and decision support tools.The service network of Annto of warehousing,trunk line transportation,dist

310、ribution,delivery,and installation has realized the whole-procedure visualized direct distribution to districts,counties,and towns,and the service capacity has been continuously upgraded.In terms of warehouse network layout,Annto has laid out large logistics distribution centers and thousands of dis

311、tributed mini warehouses in more than 140 cities across China,realized real-time inventory sharing and allocation,and effectively reduced inventory costs and capital occupation through unified warehouse and unified distribution.In terms of warehouse management,Annto accelerated the deepening applica

312、tion of intelligent logistics warehousing center,realized intelligent unmanned warehouse management through intelligent equipment and advanced technology in high-standard automated warehouses for expensive consumer goods,reduced sorting operation,and improved sorting efficiency through procedure opt

313、imization and information system function enhancement.Annto optimized the layout of distributed mini warehouses through online big data analysis and scientific algorithms and achieved a 10%saving in the storage service area which meets the same market demand.Also,it optimized the integration service

314、s of terminal warehousing and distribution and of delivery and installation through inventory sharing and intelligent replenishment.In terms of intelligence,Annto focused on smart parks to realize the whole-procedure intelligent management system for parks,promote the improvement of the operational

315、capacity of self-built parks,and create integrated products of smart parks.In terms of production logistics,Annto realized the functions of factory logistics planning collaboration,wave-based sorting,JIT delivery,inventory sharing and visualization,intelligent replenishment,etc.through the whole-pro

316、cedure digital construction of Vendor Managed Inventory(VMI),which increased the human efficiency of the VMI intelligent warehouse by 50%,the surface efficiency by 46%,and the inventory reconciliation efficiency by 45%.In terms of trunk line urban distribution,Annto Midea Group Co.,Ltd.Semi-Annual R

317、eport 2022 41 realized direct inter-city delivery through the LCL trunk line network,and achieved optimal timing configuration through route planning.Meanwhile,it strengthened the cultivation and expansion of terminal outlets,built a scheduling center platform based on the whole procedure of order-s

318、cheduling-capacity-operation-system,broke the management boundary between the project system and shipping capacity resources,integrated line resources,and built the operation capacity of domestic trunk line network,thus improving user experience comprehensively.In terms of terminal delivery and inst

319、allation,Annto optimized the integrated delivery and installation and rebuilt the main procedure of the after-sales platform in the first half of 2022 and realized the digitalization of order and engineer management.The per capita order receiving efficiency of engineers increased by 34%year-on-year,

320、and Annto effectively supported business models such as complied delivery and installation and delivery of the new and recovery of the old,with more than 3,000 delivery and installation outlets and a team of more than 32,000 professional engineers,covering more than 2,700 districts and counties in C

321、hina.In terms of capacity optimization,Annto deepened the construction of online freight platform capacity,realized online capacity and cost transparency through digital construction,accumulated valuable capacity resources and cost data,and realized the integration of logistics,capital flow,informat

322、ion flow,contract flow,and bill flow.In terms of external business expansion,adhering to the business philosophy of building and sharing with customers,Annto provides strong support for corporate customers in promoting channel efficiency and sales growth.It focuses on industrial customers and indust

323、ry in depth,while continuing to strengthen the construction of core capabilities such as LTL,urban distribution and integrated delivery and installation to steadily improve customer service experience,thus increasing its market share year by year.In the first half of 2022,Annto relied on the 1+3 ser

324、vice model,i.e.,whole chain+a shared inventory system,integration of delivery and installation,production and logistics to help customers promote channel transformation and supply chain efficiency optimization and to assist corporate customers in whole-chain value enhancement with smart logistics.Th

325、e service model can provide integrated supply chain services covering the whole chain of parts-finished products-stores-users and help customers to solve problems such as rising fulfillment costs caused by diversified channels and fragmented orders through a shared inventory system and to establish

326、a whole-value-chain monitoring system for operation indicators,continuously optimize costs,strengthen risk control capabilities,and provide effective data support for enterprises operation decisions.Integrated delivery and installation can help customers to better reach Midea Group Co.,Ltd.Semi-Annu

327、al Report 2022 42 users and improve service experience.Production and logistics means transforming Mideas years of experience in lean manufacturing into the Lighthouse Factory Supply Chain Solution and to realize the output of systematic solutions based on customer needs and industrial characteristi

328、cs.Based on Mideas industry-leading experience of channel transformation and sound smart supply chain systems and networks,Annto has provided services to thousands of enterprises,with clients spanning many industries across home appliances,consumer electronics,food and beverage,maternal and infant,a

329、nd household necessities and chemicals.D.Promoted“Global Impact”,enhanced localized operations overseas and accelerated the cooperative integration of TLSC Midea further promoted its global business layout to solidify its global competency.It formulated a global supply cooperative mechanism,strength

330、ened the global manufacturing network and localized operations overseas,optimized the global logistics and service system,and promoted product globalization and regionalization.Its overseas business spans more than 200 countries and regions in North America,South America,Europe,Asia,Africa and Ocean

331、ia.Meanwhile,guided by the market and focusing on users,Midea builds a global user research network with foresight.Midea has established an organization for local consumer and market observation,built a digital marketing ecosystem,implemented product lifecycle management based on the changing trends

332、 of user needs and consumption habits around the world,built user touch points throughout the entire chain,and continuously optimized and matched the retail operation system for the user-growth market.Midea has reconstructed the overseas sales operation system,continuously deepened the user-oriented

333、 digital transformation,and established end-to-end procurement as well as execution processes,tools,operation mechanisms and information connection for sales orders to achieve online and visual overseas planning and order execution.Midea exerted great efforts to build the intelligent overseas commercial system,constantly deepened its data-based business decision-making capability,and created a dig