According to Bloomberg, Midea Group (000333.SZ) is ready to accept investors to subscribe for its Hong Kong offering shares as soon as next week, which will be the largest listing of Chinese companies in two years.
The Foshan-based home appliance maker plans to raise about $4 billion through a stake offering in Hong Kong, according to people familiar with the matter. That's about 6% of the market value of Midea's Shenzhen-listed shares. One of the people familiar with the matter said that Midea is considering setting the Hong Kong offering price at a maximum discount of 20% to the price of A-shares.
As of the close of trading on September 5, Midea Group's A shares were reported at 63.59 yuan per share, with a market value of 444.194 billion yuan.
Synthesis | Company Announcement Prospectus Edit | Arti
This article is for informational purposes only and does not constitute any trading advice
On September 5, Midea Group (000333.SZ) announced that the third meeting of the fifth board of directors of the company deliberated and approved the "Proposal on Determining the Company's H-share Global Offering (Including Hong Kong Public Offering and International Offering) and Listing on the Hong Kong Stock Exchange".
The board of directors of Midea Group agreed to the relevant arrangements for the global offering of H shares of the company, issued a prospectus and other relevant documents that meet the requirements of relevant laws and regulations, handled the H share issuance procedures and related matters, and authorized relevant persons to handle specific matters related to the issuance and listing in accordance with relevant resolutions.
Midea Group appointed Mr. Jiang Peng and Ms. Lai Siu-kuen as joint company secretaries; Mr. Fang Hongbo and Ms. Lai Siu-kuen were appointed as the Company's authorized representatives responsible for communication with the Hong Kong Stock Exchange under Rule 3.05 of the Hong Kong Listing Rules governing the listing of securities on The Stock Exchange of Hong Kong Limited.
Previously, Midea Group had passed the listing hearing on the main board of the Hong Kong Stock Exchange, with CICC and BofA Securities acting as joint sponsors.
According to the prospectus, Midea Group is a leading global provider of technology-driven smart home and commercial and industrial solutions.
Through the smart home business, the company provides consumers with various types of household appliances; Through commercial and industrial solutions, we provide a variety of solutions for enterprise customers, such as home appliance compressors and motors, commercial air conditioners, industrial robots and supply chain services.
Midea Group has been listed on the Fortune Global 500 list for nine consecutive years, with operations in more than 200 countries and regions, 33 R&D centers, 43 major production bases around the world, and more than 190,000 employees worldwide. During the Track Record Period, the majority of the Company's revenue was derived from the sale of home appliances in the smart home business.
After this journey, Midea Group has made extraordinary achievements in many business areas today. The key achievements are as follows (each according to the Frost & Sullivan report):
In terms of sales volume and revenue in 2023, the company is the world's largest home appliance company, with a market share of 7.9% in terms of sales volume. In 2023, in terms of sales volume, it ranked among the top three in the world in terms of household air conditioners, washing machines, refrigerators, and kitchen appliances and other home appliances, with market shares of 23.7%, 14.2%, 10.5% and 6.0%, respectively. During the same period, the company also ranked among the top three in the world in terms of retail sales, with market shares of 21.1%, 12.5%, 7.7% and 4.6% respectively, among which the household air conditioner and kitchen appliances and other home appliances ranked first.
Based on the output in 2023, the company's home appliance compressor business ranks first in the global market, with a market share of 30.3%. The company's residential air conditioning compressor business also ranked first in the global market in terms of output, with a global market share of 45.1%.
In terms of revenue in 2023, the company is the largest commercial air conditioning provider in Chinese mainland (market share 14.3%) and the top five in the world (market share 6.6%).
The company's KUKA Group, one of the world's four largest industrial robot companies, ranked second in heavy-duty robot sales and revenue in 2023, with market shares of 18.6% and 17.9%, respectively.
Looking forward to the future, Midea Group will continue to move forward around the four strategic axes of "leading technology, direct access to users, driven by digital intelligence, and global breakthrough". The company's goal is to continue to grow its commercial and industrial solutions business as an important engine of growth, while being firmly committed to the continued expansion of the smart home business.
In terms of finance, in the four months ended April 30, 2021, 2022, 2023 and 2024, Midea Group's revenue was approximately RMB343.361 billion, RMB345.709 billion, RMB373.710 billion and RMB145.780 billion respectively, and the profit for the same period was approximately RMB29.031 billion, RMB29.812 billion, RMB33.747 billion and RMB13.646 billion respectively.
According to the prospectus, Midea Group's Hong Kong stock IPO is intended to raise funds for global science and technology research and development; the continuous construction of intelligent manufacturing system and the upgrading of supply chain management; Improve global sales channels and networks, as well as increase overseas sales of private labels; Replenishment of working capital and general corporate purposes, etc.
Previously, Midea Group (000333.SZ) released its 2024 semi-annual report, and during the reporting period, the company achieved operating income of 217.274 billion yuan, a year-on-year increase of 10.30%. The net profit attributable to shareholders of the listed company was 20.804 billion yuan, a year-on-year increase of 14.11%. The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 20.181 billion yuan, a year-on-year increase of 14.33%. Basic earnings per share was 3.02 yuan.
In the first half of the year, on the one hand, the growth rate of consumer demand in the domestic market slowed down compared with last year and the domestic white goods retail market was obviously under pressure, on the other hand, affected by overseas economic fluctuations, exchange rate changes and intensified overseas geopolitical conflicts, the global political and economic environment was still complex, and the business situation was still facing challenges. The overall scale of the Group has further increased, and core indicators such as profitability and cash flow have been further improved, demonstrating the long-term trend of Midea's operational resilience and high-quality growth.
In terms of stock price, Midea Group has continued to rebound since the end of last year, with its share price coming from below 50 yuan to more than 60 yuan, with a market value of more than 450 billion yuan.