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

By China Business Journal reporter | Chen Pengli | China Business Journal 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, reaching a record high; attributable net profit was 43.95 billion yuan. Both the year-on-year growth rates of revenue and net profit were in double digits.

Specifically, in 2025, Midea Group’s To C business (smart home business) and To B business (commercial and industrial solutions) saw revenue growth year over year. Among them, To B business revenue reached 122.8 billion yuan, up 17.5% year over year.

In addition to performance, Midea Group is also planning large-scale dividend payments and a share repurchase.

On the evening of March 30, Midea Group also released a profit distribution plan at the same time: for the full year of 2025, it plans to pay 43 yuan in cash for every 10 shares (including tax). This includes the interim dividend already implemented (5 yuan for every 10 shares). Based on this, the total expected cash dividend for the full year of 2025 is 32.36 billion yuan, accounting for 73.6% of attributable net profit for 2025. In addition, Midea Group announced a new round of share repurchase plan: the company plans to repurchase its A-share stock for 6.5 billion to 13 billion yuan.

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

“At the beginning of 2025, we said ‘set out in the face of storms, to write new stories.’ As it turned out, the storms of 2025 were more intense than we had imagined.”

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

Despite this, Midea Group’s 2025 revenue scale still reached a new high, surpassing the 450 billion yuan mark, up 12.11% year over year; the growth rates of attributable net profit and net profit after deducting non-recurring items were 14.03% and 15.46%, respectively.

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

Within the To B business, revenue in segments such as building technology, robotics and automation, industrial technology, and other innovation businesses all increased year over year. Midea Group also mentioned in its announcement that in 2025, the share of To B business in total revenue was 26.8%, becoming one of the main engines for Midea’s sustained growth.

On a regional basis, in 2025, Midea Group’s domestic operating revenue increased 9.40% year over year, with a slower pace than that of overseas markets. During the reporting period, Midea Group’s overseas revenue was 195.9 billion yuan, up 15.92% year over year, and its localized self-operated business covers 50 major countries worldwide.

However, reporters from the China Business Journal also noted that in 2025, the combined gross margin of Midea Group’s To C and To B businesses fluctuated slightly; the operating costs of these two major businesses increased 11.4% and 18.33% year over year, respectively.

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

Midea Group’s 2025 operating cost composition table shows that, during the reporting period, the cost of raw materials in the home appliance industry increased 12.53% year over year.

At the end of January 2026, at a roadshow event hosted by Midea Group, company executives also discussed volatility in bulk raw materials. Management at the time responded that the company’s bulk hedging business is mainly to deal with fluctuations in the prices of bulk raw materials, and that the company’s bulk procurement also offers a relatively pricing advantage.

The reporter also noted that Midea Group’s acquisition activities in 2025 were also numerous, mainly concentrated in the B-end business field. During the year, it successively acquired assets such as the Arbonia Group, Toshiba Elevator’s China business, and the international business of Rycro Medical, among others. In the To C segment, Midea Group completed the acquisition of 100% of the equity interest in Teka Industrial, S.A. in 2025, with the purpose 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 assembled an AI R&D team of over 400 people, and more than 13,000 agents operate in multiple scenarios every day. According to the introduction, AI helps Midea Group save 700 million yuan in costs for the full year of 2025.

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

Besides high cash dividends, Midea Group is also setting out a share repurchase plan, planning to use another 6.5 billion to 13 billion yuan to repurchase shares. In 2025, the company had implemented two A-share repurchase programs and an H-share repurchase program, with a combined amount of approximately 11.6 billion yuan.

On March 31, against the backdrop of declines in the Shanghai Composite Index and the Shenzhen Component Index, after Midea Group’s shares opened, they rose. By the close of that day, the A-share price increase was close to 6%, while the H-share price increase was close to 7%.

Cover image source: China Business Journal Media Resources Library