listed companies have been released. In the air-conditioning field, which has attracted much attention, the major giants also showed their first half of the year.
Interestingly, in the "self-evaluation" of the "midterm exam", two "candidates" both claimed to be the first.
Two financial reports, two “firsts”
These two companies are naturally Midea Group and Gree Electric (hereinafter referred to as Midea and Gree) in the air-conditioning field. Both said in the semi-annual report that they had the largest market share of air conditioners.
data map.
Midea is based on data from Aowei Cloud. It shows that in the first half of 2021, the share of Midea’s main home appliance categories in the domestic market has increased to varying degrees. Among them, the omni-channel share of household air-conditioning products has increased significantly. Both online and offline market shares rank first in the industry, reaching 37.6% and 36.5% respectively.
Gree cited two data on central air-conditioning and household air-conditioning: According to data released by "HVAC Information", in the first half of 2021, Gree central air-conditioning ranked first with a 16.2% market share, and continued Realize the industry leader; according to "Industry Online" statistics, Gree's domestic sales of household air conditioners accounted for 33.89% in the first half of 2021, ranking first in the home appliance industry.
Two "firsts", who is stronger? Look at the data disclosed in the financial report.
Midea achieved operating income of 173.810 billion yuan in the first half of the year, a year-on-year increase of 24.98%; net profit attributable to shareholders of listed companies was 15.009 billion yuan, a year-on-year increase of 7.76%. In terms of air conditioning, Midea’s HVAC business revenue in the first half of the year was 76.408 billion yuan, a year-on-year increase of 19.33%.
Gree Electric achieved total operating income of 92.011 billion yuan in the first half of the year, a year-on-year increase of 30.32%; net profit attributable to shareholders of listed companies was 9.457 billion yuan, a year-on-year increase of 48.64%. The air-conditioning business is still Gree’s main source of revenue. In the first half of the year, Gree air-conditioning earned 67.194 billion yuan in revenue.A year-on-year increase of 62.57%.
's gross profit margins both fell under the price war.
In comparison with the air-conditioning business, the overall revenue of Midea leads Gree by nearly 10 billion yuan, but in terms of revenue growth, Gree significantly leads Midea’s 19.33% with 62.57%.
Gree said that the company's main business revenue increased in the first half of the year compared with the same period last year, mainly due to the impact of the epidemic in the first half of 2020. If you go back to the same period of 2019, which was not affected by the epidemic, Gree achieved revenue of 98.341 billion yuan, that is, Gree’s revenue in the first half of this year fell by about 6.4% compared with 2019. Although
did not return to the same period in 2019, it is vertical. In contrast, Gree's revenue in the first half of 2019 was also the peak of the past five years, and Gree's current revenue situation is basically the same as in 2018.
Data map: Dong Mingzhu, chairman and president of Gree Electric. Photo by China News Service reporter Hou Yu
Midea mentioned in the financial report that the cost of upstream raw materials fluctuates sharply and the pressure on the profit side caused by the appreciation of the renminbi, but under the same circumstances, the decline in Gree's earnings is still smaller than that of Midea.
Although revenue increased, the gross profit margin of the air-conditioning business of the two companies declined. Gree's air-conditioning gross profit margin was 29.79%, down 2.26%; Midea's air-conditioning business gross profit margin was 20.85%, down 3.35%, and Gree led Midea by nearly 9 percentage points.
Increasing income does not increase gross profit or is a pot of price war. Industry analysts believe that in recent years, the " white power double heroes" have continued to compete for the market, and price wars are one of the important means. Since 2019, the gross profit margins of both parties have seen a visible decline, and the latest higher gross profit margins have both decreased by about 10 percentage points.
In the price war, Midea, which "wounds heavier", is also looking for a new breakthrough. On August 31, Midea Group and China Mobile signed a strategic cooperation framework agreement through the cloud. Carry out in-depth cooperation in the fields of international business and operating system ecology.
fights for diversification, Gree no longer claims to be an air conditioner manufacturer
In the protracted confrontation between Midea and Gree, 2020 can be said to be an important watershed.
This year, Midea’s air-conditioning business revenue surpassed Gree for the first time. The air-conditioning business revenue of the two was 12.215 billion yuan and 117.882 billion yuan, a difference of less than 3.4 billion yuan. Today, the revenue gap between the two sides' air-conditioning business has further widened, and the gap in the first half of this year was nearly 10 billion yuan.
Data map: Workers are installing air conditioners. At the same time, the semi-annual report disclosed by Midea shows that its air-conditioning business accounted for 43.96% in the first half of the year, which was basically the same as the 42.65% disclosed in the 2020 annual report; consumer appliances accounted for total revenue The proportion is as high as 40.07%, and the proportion of electric rice cookers, electric pressure cookers, electric heaters, electric fans and other small appliances is almost "50-50%" compared with air conditioners.
Midea’s third largest business is robotics, automation systems and other manufacturing, accounting for 7.30% of total revenue, with revenue of 12.693 billion yuan, a year-on-year increase of 33.28%. This growth rate is also the highest among Midea's three main businesses, and the gross profit margin of this business has also increased by nearly 4%.
Gree is obviously more dependent on the air-conditioning business. Gree air-conditioning revenue accounted for 73.79% in the first half of the year, even higher than the 70.08% in the 2020 annual report.
Gree is naturally unwilling to do so. In self-introduction, Gree no longer claims to be an air-conditioning manufacturer, but a diversified, high-tech global industrial group. "Products cover two major areas of household consumer goods and industrial equipment, including household air conditioners, HVAC, Refrigerators, washing machines, water heaters, kitchen appliances, environmental appliances, and communication products."
On August 31, Gree Electric announced that it would bid for a 30.47% stake in Yinlong New Energy at a price of approximately 1.828 billion yuan, or approximately 336 million. share.Gree Electric said that the company can use Yinlong to accelerate the development of its existing diversified businesses and increase the company's market share of its automotive industry products.
What brand is your air conditioner? How is it used?
Author: Zuo Yukun
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