Decoding Midea Group's 2025 Annual Report: Overseas and To B Business Support Revenue Growth, with Planned Cash Dividends Exceeding 32 Billion Yuan for the Year

Ask AI · How Can Midea’s B2B Business Become a Major Engine for Revenue Growth?

China Economic Daily reporter: Chen Pengli    China Economic Daily editor: Huang Bowen

On the evening of March 30, 2026, Midea Group (SZ000333, share price 76.35 yuan, market capitalization 580.5 billion yuan) released its 2025 annual report. In 2025, Midea Group’s total operating revenue was 458.5 billion yuan, setting a new record; attributable net profit was 43.95 billion yuan. Both revenue and net profit year-on-year growth rates were in the double digits.

Specifically, in 2025, Midea Group’s revenue from its B2C business (smart home business) and B2B business (commercial and industrial solutions) both grew year on year. Among them, B2B business revenue reached 122.8 billion yuan, up 17.5% year on year.

In addition to performance, Midea Group also plans to distribute dividends on a sizable scale and to repurchase shares.

On the evening of March 30, Midea Group simultaneously released a profit distribution plan: for the full year of 2025, it plans to distribute 43 yuan in cash per 10 shares (tax included). This includes the interim dividends already implemented (5 yuan per 10 shares). Based on this, the total expected cash dividend for 2025 is 32.36 billion yuan, accounting for 73.6% of 2025 attributable net profit. In addition, Midea Group also announced a new round of share repurchase: the company plans to repurchase its A-share stock for 6.5 billion yuan to 13.0 billion yuan.

With a series of positive developments, on March 31, both Midea Group’s A-share and H-share prices rose.

Revenue and attributable net profit both grow in double digits

“At the start of 2025, we said, ‘Set out amid wind and rain, and write new stories.’ As it turned out, the storms of 2025 were more intense than we had imagined.”

This is the first sentence of the “Letter to Shareholders” section in Midea Group’s 2025 annual report. Every year, the “Letter to Shareholders” from Midea Group’s board of directors is one of the highlights of the annual report.

Despite that, Midea Group’s revenue scale still hit new highs, surpassing the 450 billion yuan mark, up 12.11% year on year; attributable net profit and net profit after deducting non-recurring items increased by 14.03% and 15.46%, respectively.

By business segment, in 2025 Midea Group’s B2C business revenue was close to 300 billion yuan, up 11.28% year on year, and it remains the company’s “core base” business.

In the B2B segment, revenue from sectors such as building technology, robotics and automation, industrial technology, and other innovation businesses all grew year on year. In its announcement, Midea Group also mentioned that in 2025, the B2B business accounted for 26.8% of total revenue, becoming one of the key engines for Midea’s sustained growth.

From a regional perspective, in 2025 Midea Group’s domestic operating revenue grew 9.40% year on year, with a slower growth rate than the overseas market. During the reporting period, Midea Group’s overseas revenue was 195.9 billion yuan, up 15.92% year on year, and its localized self-operated business covers 50 major countries worldwide.

However, reporters from China Economic Daily also noted that in 2025 Midea Group’s consolidated gross margin for B2C and B2B business experienced slight fluctuations: the operating costs for these two major businesses increased by 11.4% and 18.33%, respectively, year on year.

During the reporting period, Midea Group’s net cash flow from operating activities declined 11.84% year on year, mainly due to an increase in cash outflows from operating activities, which in turn was related to an increase in cash paid for “purchase of goods and receipt of services.”

Midea Group’s 2025 operating cost structure shows that during the reporting period, raw material costs in the household appliances industry increased 12.53% year on year.

In late January 2026, during a roadshow event hosted by Midea Group, company executives also discussed the volatility of bulk raw materials. Management responded at the time that the company carries out bulk hedging primarily to address fluctuations in bulk raw material prices, while the company’s bulk procurement also has a relative pricing advantage due to its centralized procurement format.

Plans for sizable dividends, and another share repurchase plan

The reporter also noted that in 2025, Midea Group also carried out a number of M&A activities, mainly concentrated in the B-side business field. During the year, it successively acquired assets such as the Arbonia Group, Toshiba Elevator China business, and the international medical business of Stryker (Accuray). In the B2C segment, Midea Group completed the acquisition of 100% of the equity interest in Teka Industrial, S.A. in 2025, with the goal of expanding its smart home overseas business.

Looking across Midea Group’s annual report, “AI (artificial intelligence)” is also a core keyword. It is understood that Midea Group has formed an AI R&D team of more than 400 people, with more than 13,000 agents running in multiple scenarios every day. According to the introduction, AI helped Midea Group save 700 million yuan in costs throughout 2025.

In addition, after implementing a dividend of 5 yuan in cash per 10 shares during mid-2025, Midea Group announced that it plans to distribute an additional 38 yuan per 10 shares at year-end. As a result, for 2025, Midea Group’s total cash dividend per 10 shares will be 43 yuan (tax included). The total expected cash dividends for the full year are 32.36 billion yuan, accounting for 73.6% of 2025 attributable net profit.

Beyond high cash dividends, Midea Group has again floated a stock repurchase plan, proposing to allocate 6.5 billion yuan to 13.0 billion yuan to repurchase shares. In 2025, the company already implemented two A-share repurchase and H-share repurchase programs, with a combined amount of about 11.6 billion yuan.

On March 31, against the backdrop of declines in the Shanghai Composite Index and the Shenzhen Component Index, after the market opened, Midea Group’s share price edged up. By the close of the day, its A-share price had risen by nearly 6%, and its H-share price had risen by nearly 7%.

China Economic Daily