Midea Group Co. has dropped its pursuit of Electrolux AB after finding the Swedish home appliance maker unreceptive to a deal,While plans are on ice for now, Midea has been interested in Electrolux for years and it can’t be ruled out that the Chinese firm revisits the deal in the future,
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Midea air station
These days we all want more from our devices. Well, now you can have a standing air conditioner that not only keeps you cool, but combines the functions of a dehumidifier, humidifier, aircon, ventilation fan,and air purifier all into a single device. The Midea Air 5D Space Station Air System comes with a 3L water tank with a silver ion coating, ensuring cleaner and safer water storage.
With the Microclimate Sensory Mode that scientifically adjusts all five properties of air climate: air flow, humidity, temperature, purity, and freshness, taking control of your indoor climate is only a click away.
According to Midea, the Midea Air can purify an apartment by effectively removing 99.5% of PM2.5 articles with its sterilisation technology in 15 minutes.
Electrolux update
After 2 very favorable years for its business, as for all home furnishings, Electrolux has been in difficulty since the end of the health crisis. The Swedish group had launched a cost reduction plan in September 2022, which mainly concerned Europe and North America, with the aim of improving the profit of 2023, recalls Reuters . The Swedish manufacturer would have separated from 4,000 employees in October (8% of its workforce) to “reduce costs, cushion the fall to come and leave serenely” , and specify LSA. Electrolux even closed 2 factories in Hungary (refrigerators) and in Memphis in the USA (ovens). The group recorded some €12 billion in sales in 2022, but a net loss of €116 million. Its turnover was up by 9% in the 1st quarter of 2023, but with a further loss of €52 million.
According to the Bloomberg agency , the Chinese household appliance giant Midea (€45.4 billion in sales in 2022, +0.8% vs 2021) would be interested in acquiring Electrolux. Following this announcement on May 2, Electrolux shares gained around 4% on the Stockholm Stock Exchange, and were at the top of the Stoxx 600. Note that Midea had helped the manufacturer to introduce the AEG brand on the Chinese market . in 2016. According to Reuters and Bloomberg , analysts at JPMorgan questioned whether such a takeover would gain regulatory approval after geopolitical concerns escalated over the Ukraine crisis, given that the United States is the largest market from Electrolux.
According to Bloomberg , Samsung is another potential buyer of Electrolux. “Here we see a bit lower regulatory risk, but Samsung has already built its ecosystem in the West and we believe Electrolux would add little value to that,” JPMorgan said through Reuters , picked up by Boursier.com . Paul Palmstedt, spokesman for Electrolux, has not commented on these elements since May 2. No comment either from Midea, to date…
According to the Bloomberg agency , the Chinese household appliance giant Midea (€45.4 billion in sales in 2022, +0.8% vs 2021) would be interested in acquiring Electrolux. Following this announcement on May 2, Electrolux shares gained around 4% on the Stockholm Stock Exchange, and were at the top of the Stoxx 600. Note that Midea had helped the manufacturer to introduce the AEG brand on the Chinese market . in 2016. According to Reuters and Bloomberg , analysts at JPMorgan questioned whether such a takeover would gain regulatory approval after geopolitical concerns escalated over the Ukraine crisis, given that the United States is the largest market from Electrolux.
According to Bloomberg , Samsung is another potential buyer of Electrolux. “Here we see a bit lower regulatory risk, but Samsung has already built its ecosystem in the West and we believe Electrolux would add little value to that,” JPMorgan said through Reuters , picked up by Boursier.com . Paul Palmstedt, spokesman for Electrolux, has not commented on these elements since May 2. No comment either from Midea, to date…
founder of Midea, creates US$428 million science fund
Chinese billionaire entrepreneur He Xiangjian, founder and largest shareholder of home appliances giant Midea Group, on Sunday unveiled an eponymous 3 billion yuan (US$428 million) science fund to boost artificial intelligence (AI) and climate research in the country.
Midea in numbers
Revenues: $50 billion growth in Q1: profits equal to 8% of revenues and colossal investments in R&D. group presents its 2022 financial statements together with the first quarterly report for 2023. In 2022, the company’s total turnover reached 345, 7 billion Yuan (about US$50 billion), an increase of 0.7% year on year. However, net profit of 29.6 billion yuan (8.6% of revenue) increased by 3.4% over the previous year.
In the first quarter of 2023, Midea increased its revenue by 6.3% and its profit by 12% compared to the same period last year.
Founded in 1968, Midea is not only a leader in the household appliances sector. Its five business segments are smart home, building technology, electromechanics, robotics and automation, and digital innovation. It has spent nearly 50 billion yuan at its 35 R&D centers over the past five years. It has 35 major manufacturing bases around the world.Midea exports 41% of turnover (up in 2022 as domestic market shrinks) and ranks first in China in terms of market share for several product categories both online and offline, including air conditioners, ovens countertop microwaves, countertop ovens, electric stoves, induction cookers, electric kettles, etc. One out of three air conditioners sold in China is made by Midea
Midea Confirms It Has Made Takeover Bid for Sweden’s Electrolux
Midea Group has confirmed a media report that said the Chinese home appliance behemoth has made an initial takeover approach for Swedish competitor Electrolux.
“A deal is being discussed, but no decision has been made yet,” the investor relations department at the Foshan-based company said. A public relations officer at Electrolux China declined to comment.
Midea is exploring the potential acquisition of Electrolux, Bloomberg News reported on April 30, citing people familiar with the matter. The Chinese firm has made a preliminary approach in recent weeks about a possible deal, but Electrolux has not been receptive to the proposal so far, the sources added.
The acquisition would help Midea make up for its weaknesses in the mid-to-high-end markets overseas, an industry insider told Yicai Global.
Regardless of the outcome of Midea’s approach, global home appliance giants are moving production to European and American countries such as Mexico and Türkiye, so Chinese home appliance makers will have to improve their global industrial chain positioning, said Zhou Nan, secretary-general of the home appliances branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products.
Midea and Electrolux joined hands in 2016 to bring German kitchen appliance giant AEG to China and acquire the white goods business of Japan’s Toshiba. In 2017, Midea bought its first stake in Kuka and then acquired the remaining 5 percent it did not yet own in the German industrial robot maker last November.
Electrolux owns the Electrolux, AEG, Zanussi, Frigidaire, Eureka, Flymo, and Husqvarna brands. It ranks fourth with around a 10 percent share of the western European market, according to a research report.
The Swedish firm reported a 3.6 drop in operating revenue to USD13.4 billion last year from 2021, with 34.5 percent of the total coming from Europe and 34.9 percent from North America. It turned a SEK4.7 billion (USD462.2 million) net profit into a SEK1.3 billion net loss in the period.
Midea posted CNY343.9 billion (USD49.7 billion) in operating revenue for 2022, up 0.8 percent from the year before, and CNY29.6 billion (USD4.3 billion) in net profit, a 3.4 percent increase.
Midea Floor Scrubber X6
Take your cleaning to a new level: with Midea’s innovative scrubber dryer you can vacuum and wash your floors in a single step. Equipped with fibers, bristles and self-traction force, the integrated brush is designed to remove all types of dirt, debris and stubborn stains.
Double tank systemDirty water and debris are collected in a separate tank, to ensure that your floors are always cleaned with clean water.
Easy controlTo ensure even easier use, the buttons are located on the handle.
Autonomy The latest generation batteries allow long-lasting performance
Midea’s Revenue in 2022
In 2022, Midea ranked first in China in terms of market share for several categories of products both online and offline.headquartered in Foshan, Guangdong Province, recently released its 2022 annual report and 2023 quarterly report. In 2022, the company’s total revenue reached CNY 345.7 billion (USD 50 billion), an increase of 0.7% year-on-year, with a net profit of CNY 29.6 billion, 3.4% higher than in the previous year. In the first quarter of 2023, Midea achieved total revenue of CNY 96.6 billion, up 6.3% year-on-year, and achieved net profit attributable to its parent of CNY 8 billion, an increase of 12.0% from the same period last year.
Founded in 1968, Midea is one of the leading companies in the electrical appliance industry. Its five business segments are smart home, building technology, electro-mechanical, robotics & automation, and digital innovation. It has spent nearly CNY 50 billion on research and development in the past five years and provides services to over 400 million users worldwide each year. Up until now, Midea has about 200 subsidiaries, 35 R&D centers and 35 major production bases worldwide, with operations in more than 200 countries and regions.
In the overseas market, which accounts for up to 41% of its overall revenue, Midea’s 2022 overseas sales revenue reached CNY 142.65 billion, up 3.63% year-on-year. Midea ranked first in China in terms of market share for several categories of products both online and offline, including air conditioners, countertop microwaves, countertop ovens, electric heaters, induction cookers, electric kettles, etc. Among them, Midea’s offline share of air conditioners reached 33.7% of the total market share and its online share reached 33.6%.
Based on current industry trends, Tan Xiguang, chairman of Midea, believes that the electrical appliance industry is heading to a more intelligent, more efficient and greener future. In February 2023, Midea was listed among the “2022 Forbes China Top 50 Sustainable Development Industrial Enterprises”. Besides, Midea is increasing investment in R&D, constantly launching innovative products, and cooperating with technology companies to jointly explore new trends in the home appliance industry.
Midea new front loading washing machine
Midea has unveiled a new front-loading washing machine, the V11F, which will go on sale May 10 for a starting price of $215 in China.
This washing machine is equipped with a 40°C prewash program that activates the enzymatic activity of the detergent to clean and remove stubborn stains, after which the 60°C main wash is completed.This washing machine is equipped with a variable speed BLDC motor and the washing/spinning noise level is: 52/70 dB. The machine is designed for washing 10 kg of laundry, there is a child lock, the possibility of adding laundry in the process and washing on a schedule.
Mhelios, the new energy management service from Midea
Smart home specialist Midea has recently previewed its new Mhelios service, which acts as an intelligent energy management solution for homes
Mhelios has been described as an energy management solution, with a range of features to help homeowners have a more environmentally-friendly lifestyle.
The service can be paired with devices and facilities around the house such as solar panels, smart home appliances and energy storage systems too. By doing this, Mhelios can apparently get the most mileage out of green electricity around the house.
The system also features a smart energy management centre which reportedly has 98.2% efficiency, along with I-V curve scan technology and optimisation with solar energy. If a homeowner suffers an unexpected power outage and does not have access to electricity, the smart energy manager can offer unbalanced off-grid output technology and backup performance.
Beyond that, Mhelios uses artificial intelligence of things technology to track and trace a household’s energy usage. It also provides users with “intelligent control” of a home’s heat pumps and systems for heating, ventilation, and air conditioning. Surplus photovoltaic power is converted and reused throughout the home, whether that is via heating, hot water or even space cooling.
Users can download a companion app to manage Mhelios, with options to configure energy storage, as well as monitor usage and cost savings.
Midea has said it has placed sustainability at the heart of its long-term company vision, committing to a Green Strategy that should make the company carbon neutral by the year 2060
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