Midea Group(000333.SZ) has released its 2024 annual report, which shows that,Midea GroupIn 2024, completely liquidate all holdings in hand.Xiaomi GroupStock (01810.HK).

Since 2015,Midea GroupHaving held Xiaomi stocks for nearly 10 years, I began accelerating the sale of Xiaomi stocks since 2020, and have now cashed out a total of nearly 2 billion yuan. Based on what considerations,Midea GroupFinally chose to clear out Xiaomi?

Holding for nearly 10 years

Midea completely clears out Xiaomi inventory.

The Red Star Capital Bureau noticed,Midea GroupSince holding Xiaomi stocks in 2015, it has been nearly 10 years. After selling Xiaomi stocks in 2020,美的集团 Midea GroupIn 2023, Xiaomi stocks were sold again. Following that, this operation occurred once more in 2024.

Midea GroupThe 2024 annual report shows,Midea GroupIn 2024, the company achieved operating revenue of 407.1 billion yuan, a year-on-year increase of 9.43%; net profit attributable to the parent company of 38.5 billion yuan, up 14.28%; adjusted net profit attributable to the parent company of 35.7 billion yuan, a year-on-year growth of 8.39%; and operating cash flow of 60.5 billion yuan, an increase of 4.51%.

The year 2024,Midea GroupSold over 900 million yuanXiaomi GroupStocks, and completely liquidate.Midea GroupThe 2023 annual report shows the sale.Xiaomi GroupThe amount is 59.18 million yuan; 2022, 2021Midea GroupAll correct.Xiaomi CorporationNo relevant operations; 2020Midea Groupthen cashed outXiaomi Group876 million yuan.

According to Yicai Business News, Yu Fenghui, an advisor at the HK100 Strong Research Center, said thatMidea GroupSell off in 2024Xiaomi GroupThe sale of shares reflects Midea's reassessment and adjustment of its investment portfolio: on one hand, it may be motivated by considerations of capital liquidity or the belief that Xiaomi's stock price has reached its target, prompting a decision to cash in on profits; on the other hand, given Xiaomi's active expansion into the home appliance sector, which positions it as a direct competitor to Midea, the divestment can also be viewed as a strategic move to mitigate potential conflicts of interest.

The investment manager at奶酪fund Hu Kunchao stated that Midea's investment in Xiaomi is purely a financial investment. As Xiaomi's stock price continues to rise, selling Xiaomi shares to lock in profits is a normal capital operation.Midea GroupIt may be due to the consideration of risk diversification to reduce potential investment risks by selling stocks, or it may be related to the adjustment of its business strategy, focusing on the main business or exploring new business opportunities.

Xiaomi raises HK$42.5 billion in 'lightning' share placement

New competition between both sides' businesses

Recently,Midea GroupandXiaomi CorporationThe capital market is active.

March 25th,Xiaomi CorporationThe company announced on the Hong Kong Stock Exchange that it plans to sell 800 million existing shares at a price of HK$53.25 per share (the placement price is approximately 6.6% lower than the closing price of HK$57 on March 24). This represents about 3.2% of the company's issued share capital. The net proceeds from the placement are expected to be approximately HK$42.5 billion, which will be used for business expansion, R&D investment, and other general purposes.Xiaomi GroupThis placement financing is the third largest lightning share placement project in the history of Hong Kong.

Last September 17th,Midea GroupOfficially completed the listing in Hong Kong, with a global offering of approximately 566 million shares, at an offer price of HKD 54.8 per share, with a net fundraising amount of HKD 30.668 billion.

Business aspect,Midea GroupVice President Zhao Lei previously revealed in a media interview that Midea's household air conditioner sales will exceed 70 million units for the first time in both domestic and overseas markets in 2024.Xiaomi GroupThe company forecasts that the air conditioner shipments in 2024 will exceed 6.8 million units, with a year-over-year growth rate of over 50%. Among these, the shipments of air conditioners, refrigerators, and washing machines have all set new records. Additionally, the company is also stepping up its efforts in the automotive business.

Xiaomi GroupIt is reported that the first-year delivery volume of the Xiaomi SU7 series in 2024 reached 136,800 units. The ASP (average selling price) of smart electric vehicles is 234,500 yuan per vehicle, and the full-year delivery target for 2025 is expected to increase to 350,000 units.

Midea GroupThe annual report states: "Midea and NIO signed a strategic cooperation agreement in April 2024. Both parties will conduct extensive cooperation in areas such as new energy vehicle components, automation, digitalization, low-carbon sustainable parks, and smart logistics, aiming to create a model of intelligent manufacturing in the new energy vehicle industry."

Annual reportMidea GroupIn the field of green transportation, we will increase investment in product technology to achieve new breakthroughs in new energy vehicle parts and components products, continuously expand the market and develop new customers for thermal management modules, and achieve project breakthroughs for domestic economic models and overseas mainstream customers; constantly improve manufacturing capabilities, complete the construction of overseas factories and put them into operation, and strengthen the construction of overseas logistics delivery and operation capability systems.