At Midea Group’s annual shareholder meeting on 5 June, long‑serving CEO Fang Hongbo delivered one of the company’s clearest strategic pivots in years: the era of aggressive expansion is over. After three decades of growth fuelled by more than 30 major acquisitions — from Little Swan and Toshiba’s white‑goods arm to KUKA Robotics and Wandong Medical — Midea is now shifting from “growth by buying” to “growth by building”.

Fang confirmed that the next three years will see no large‑scale mergers, acquisitions, or heavy investment cycles, with profits instead being directed toward shareholder returns. For a business that transformed itself from an air‑conditioning manufacturer into a multi‑industry technology group, the move marks a rare moment of consolidation.

From Buying Growth to Proving It
Analysts interpret the shift as Midea’s attempt to validate the performance of its existing portfolio. The company has already assembled its “first curve” of mature businesses; the challenge now is whether its newer ventures can become sustainable pillars.

The biggest question surrounds Midea’s “second growth curve” — the next major business capable of driving long‑term value. Fang was candid: no one yet knows which sector will break through. Robotics remains the market favourite, especially as domestic substitution accelerates, and KUKA is seen as the most likely candidate to deliver stable profitability within Fang’s remaining tenure.

A Race Against Time
Industry sources suggest Fang may retire around 2027, giving the company a narrow window to prove out its next strategic engine. The performance of robotics, medical technology, new energy and automotive components will likely define not only Midea’s future direction but also Fang’s legacy.