Stock code: 000333 Stock name: Midea Group Announcement No.: 2024-028
Midea Group Co., Ltd.Interim Report for the First Quarter 2024Midea Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of theCompany’s Board of Directors have warranted that the information given in this Report is true, accurateand complete, as well as free of any false record, misleading statement or material omission.
Important Reminders:
1. The Board of Directors, the Supervisory Committee as well as all the directors, supervisors andsenior management staff of the Company have warranted that this Report contains no false record,misleading statement or material omission. And they shall be jointly and severally liable for thetruthfulness, accuracy and completeness of the information given in this Report.
2. The legal representative, principal in charge of accounting and head of the accounting departmentof the Company have represented and warranted that the financial information in this Report is true,accurate and complete.
3. Is this Report audited by a CPA firm?
□ Yes √ No
This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
1. Key financial information
1.1 Major accounting data and financial indicators
Does the Company adjust retrospectively or restate accounting data of previous years?
□ Yes √ No
| Jan.-Mar. 2024 | Jan.-Mar. 2023 | YoY Change (%) | |
| Operating revenue (RMB'000) | 106,101,612 | 96,262,922 | 10.22% |
| Net profit attributable to shareholders of the Company (RMB'000) | 9,000,007 | 8,041,853 | 11.91% |
| Net profit attributable to shareholders of the Company before non-recurring gains and losses (RMB'000) | 9,236,971 | 7,672,681 | 20.39% |
| Net cash flows from operating activities (RMB'000) | 13,928,908 | 9,272,312 | 50.22% |
| Basic earnings per share (RMB/share) | 1.31 | 1.18 | 11.02% |
| Diluted earnings per share (RMB/share) | 1.31 | 1.18 | 11.02% |
| Weighted average ROE (%) | 5.37% | 5.46% | -0.09% |
| 31 Mar. 2024 | 31 Dec. 2023 | Change (%) | |
| Total assets (RMB'000) | 497,968,468 | 486,038,184 | 2.45% |
| Net assets attributable to shareholders of the Company (RMB'000) | 172,498,707 | 162,878,825 | 5.91% |
During the Reporting Period, the Company’s Intelligent Building Technology, Energy Solutions &Industrial Technology, and Robotics & Automation recorded respective revenue of RMB8.2 billion (up6% year on year), RMB7.7 billion (up 23% year on year), and RMB6.7 billion (down 12% year onyear).Intelligent Building Technology reported a slowdown in revenue growth during the Reporting Periodmainly due to changes in subsidy policies for heat pumps in some countries and the decline in naturalgas prices in Europe. Exclusive of heat pumps, the other product categories of Intelligent BuildingTechnology combined saw a year-on-year growth of 28% in revenue.Robotics & Automation reported a year-on-year decline in revenue during the Reporting Period mainlydue to the temporary suspension of production ramp-up plans by domestic automakers and theproduct strategy adjustments by overseas automakers; at the same time, the logistics automationbusiness was driven by strong offline consumption overseas, achieving over 9% growth in theReporting Period.
| Total share capital of the Company on the last trading session before disclosure (share) | 6,974,420,601 |
| Fully diluted earnings per share based on the latest share capital above (RMB/share) | 1.29 |
1.2 Non-recurring gains and losses
√ Applicable □ N/A
Unit: RMB’000
| Item | Jan.-Mar. 2024 | Note |
| Gains and losses on disposal of non-current assets | 7,249 | |
| Except for effectively hedging business related to normal business operations of the Company, gains and losses arising from the change in the fair value of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other non-current financial assets, as well as investment gains and losses produced from the disposal of the aforesaid financial assets and liabilities | -381,518 | |
| Other | 233,456 | |
| Less: Corporate income tax | 26,172 | |
| Minority interests (after tax) | 69,979 | |
| Total | -236,964 | -- |
Other items that meet the definition of non-recurring gain/loss:
□ Applicable √ N/A
No such cases for the Reporting Period.Explain the reasons if the Company classifies any non-recurring gain/loss item mentioned in the<Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securitiesto the Public—Non-Recurring Gains and Losses> as a recurring gain/loss item
□ Applicable √ N/A
No such cases for the Reporting Period.
1.3 Major changes of main items in financial statements and financial indicators, as well as thereasons for the changes
√ Applicable □ N/A
Unit: RMB’000
| Financial statement items (consolidated) | 31 March 2024/January-March 2024 | 31 December 2023/January-March 2023 | Change (%) | Reasons for the changes |
| Derivative financial assets | 1,759,324 | 1,278,161 | 37.64% | Mainly due to the changes in the fair value of derivative financial instruments |
| Receivables financing | 19,019,180 | 13,330,008 | 42.68% | Mainly due to the increased notes receivable at fair value through other comprehensive income |
| Current portion of non-current | 7,211,636 | 10,760,577 | -32.98% | Mainly due to the decreased current |
| assets | portion of financial product investments with fixed income | |||
| Derivative financial liabilities | 680,097 | 257,668 | 163.94% | Mainly due to the changes in the fair value of derivative financial instruments |
| Employee benefits payable | 5,559,443 | 9,076,027 | -38.75% | Mainly due to the payment of remunerations to employees |
| Current portion of non-current liabilities | 8,230,153 | 14,457,710 | -43.07% | Mainly due to the repayment of the current portion of borrowings |
| Treasury stock | 7,651,734 | 12,871,738 | -40.55% | Mainly due to the retirement of treasury stock |
| Other comprehensive income | -617,669 | -164,202 | -276.16% | Mainly due to the changes in differences on translation of foreign currency financial statements |
| Financial expenses/(income) | -557,258 | 710,597 | -178.42% | Fluctuations in the valuation of assets and liabilities denominated in minor currencies, such as the Egyptian pound, and other foreign currencies, such as the United States dollar, the euro and the Japanese yen |
| Other income | 643,446 | 339,952 | 89.28% | Mainly due to the increased input tax credits |
| Investment income | 27,984 | 266,267 | -89.49% | Mainly due to the decreased investment income from the disposal of derivative financial assets and liabilities |
| Losses/(gains) on changes in fair value | -280,110 | 117,441 | -338.51% | Mainly due to the changes in the fair value of investments in equity instruments |
| Asset impairment losses | -176,207 | -135,237 | -30.29% | Mainly due to the increased inventory valuation losses |
| Losses/(gains) on disposal of assets | -3,777 | 11,215 | -133.68% | Mainly due to the decreased gains on disposal of non-current assets |
| Non-operating income | 115,251 | 35,234 | 227.10% | Mainly due to the increased other income |
| Non-operating expenses | -25,427 | -7,491 | -239.43% | Mainly due to the increased other expenses |
| Net profit attributable to minority interests | 36,314 | 103,879 | -65.04% | Mainly due to the decreased profits of non-wholly-owned subsidiaries |
| Net cash flows from operating activities | 13,928,908 | 9,272,312 | 50.22% | Mainly due to the increased cash received from sales of goods or rendering of services |
| Net cash flows from investing activities | -5,954,871 | -25,100,790 | 76.28% | Mainly due to the increased cash received from disposal of investments and the decreased cash paid to acquire investments |
| Net cash flows from financing activities | -5,090,826 | 9,068,738 | -156.14% | Mainly due to the decreased cash received from borrowings and the increased cash repayments of borrowings |
2. Shareholder information
2.1 Total number of common shareholders and preference shareholders with resumed votingrights, as well as shareholdings of the top ten shareholders at the period-end
Unit: share
| Total number of common shareholders at the period-end | 286,772 | Total number of preference shareholders with resumed | 0 |
| voting rights at the period-end (if any) | |||||||||
| Top 10 shareholders (exclusive of shares lent in refinancing) | |||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage (%) | Number of shares held | Number of restricted shares held | Shares in pledge or frozen | ||||
| Status | Shares | ||||||||
| Midea Holding Co., Ltd. | Domestic non-state-owned corporation | 31.12 | 2,169,178,713 | ||||||
| Hong Kong Securities Clearing Company Limited | Foreign corporation | 20.36 | 1,419,137,016 | ||||||
| China Securities Finance Co., Ltd. | Domestic non-state-owned corporation | 2.84 | 198,145,134 | ||||||
| Fang Hongbo | Domestic individual | 1.68 | 116,990,492 | 87,742,869 | |||||
| Central Huijin Asset Management Ltd. | State-owned corporation | 1.27 | 88,260,460 | ||||||
| Huang Jian | Domestic individual | 1.24 | 86,140,000 | ||||||
| Industrial and Commercial Bank of China Limited－Huatai-PineBridge CSI 300 Traded Open-ended Index Securities Investment Fund | Other | 0.76 | 53,109,693 | ||||||
| Li Jianwei | Foreign individual | 0.65 | 45,591,545 | ||||||
| China Construction Bank Corporation－E Fund CSI 300 Traded Open-ended Index Promoter Securities Investment Fund | Other | 0.53 | 37,076,546 | ||||||
| Yuan Liqun | Domestic individual | 0.51 | 35,414,050 | ||||||
| Top 10 non-restricted shareholders | |||||||||
| Name of shareholder | Number of non-restricted shares held at the period-end | Type of shares | |||||||
| Type | Shares | ||||||||
| Midea Holding Co., Ltd. | 2,169,178,713 | RMB common stock | 2,169,178,713 | ||||||
| Hong Kong Securities Clearing Company Limited | 1,419,137,016 | RMB common stock | 1,419,137,016 | ||||||
| China Securities Finance Co., Ltd. | 198,145,134 | RMB common stock | 198,145,134 | ||||||
| Central Huijin Asset Management Ltd. | 88,260,460 | RMB common stock | 88,260,460 | ||||||
| Huang Jian | 86,140,000 | RMB common stock | 86,140,000 | ||||||
| Industrial and Commercial Bank of China Limited－Huatai-PineBridge CSI 300 Traded Open-ended Index Securities Investment Fund | 53,109,693 | RMB common stock | 53,109,693 | ||||||
| Li Jianwei | 45,591,545 | RMB common stock | 45,591,545 | ||||||
| China Construction Bank Corporation－E Fund CSI 300 Traded Open-ended Index Promoter Securities Investment Fund | 37,076,546 | RMB common stock | 37,076,546 | ||||||
| Yuan Liqun | 35,414,050 | RMB common stock | 35,414,050 | ||||||
| Huang Xiaoxiang | 34,005,286 | RMB common stock | 34,005,286 | ||||||
| Related-parties or acting-in-concert parties among the shareholders above | N/A | ||||||||
| Special account for repurchased shares among the top 10 shareholders | 48,558,888 shares (or 0.70% of the Company’s total share capital) were held in the special account for repurchased shares of Midea Group Co., Ltd. at the end of the Reporting Period. |
| Explanation on the top 10 common shareholders participating in securities margin trading | The Company’s shareholder Yuan Liqun holds 5,912,100 shares in the Company through her common securities account and 29,501,950 shares in the Company through her account of collateral securities for margin trading, representing a total holding of 35,414,050 shares in the Company. The Company’s shareholder Huang Xiaoxiang holds 24,805,286 shares in the Company through his common securities account and 9,200,000 shares in the Company through his account of collateral securities for margin trading, representing a total holding of 34,005,286 shares in the Company. |
5% or greater shareholders, top 10 shareholders, and top 10 non-restricted public shareholdersinvolved in refinancing shares lending
√ Applicable □ N/A
Unit: share
| Top 10 shareholders, and top 10 non-restricted public shareholders involved in refinancing shares lending | ||||||||
| Full name of shareholder | Shares in the common account and credit account at the period-begin | Shares lent in refinancing and not yet returned at the period-begin | Shares in the common account and credit account at the period-end | Shares lent in refinancing and not yet returned at the period-end | ||||
| Total shares held | As % of the Company’s total share capital | Total shares held | As % of the Company’s total share capital | Total shares held | As % of the Company’s total share capital | Total shares held | As % of the Company’s total share capital | |
| Industrial and Commercial Bank of China Limited－Huatai-PineBridge CSI 300 Traded Open-ended Index Securities Investment Fund | 36,737,633 | 0.53% | 10,100 | 0.00% | 53,109,693 | 0.76% | - | 0.00% |
| China Construction Bank Corporation－E Fund CSI 300 Traded Open-ended Index Promoter Securities Investment Fund | 13,740,646 | 0.20% | 68,000 | 0.00% | 37,076,546 | 0.53% | 216,300 | 0.00% |
Changes in the top 10 shareholders and the top 10 non-restricted public shareholders due tolending/returning shares in refinancing compared with the prior period
□ Applicable √ N/A
2.2 Total number of preference shareholders and shareholdings of the top 10 preferenceshareholders at the period-end
□ Applicable √ N/A
3. Other significant events
□ Applicable √ N/A
4. Financial statements
4.1 Financial statements
| Consolidated and Company Balance Sheets | ||||
| Prepared by Midea Group Co. Ltd. As at 31 March 2024 Unit: RMB’000 | ||||
| ASSETS | 31 March 2024 | 31 December 2023 | 31 March 2024 | 31 December 2023 |
| Consolidated | Consolidated | Company | Company | |
| Current assets: | ||||
| Cash at bank and on hand | 95,952,306 | 81,673,846 | 34,754,572 | 30,260,602 |
| Financial assets held for trading | 1,979,857 | 1,790,588 | 269,518 | 299,001 |
| Derivative financial assets | 1,759,324 | 1,278,161 | - | - |
| Notes receivable | 4,057,066 | 5,521,960 | - | - |
| Accounts receivable | 39,977,677 | 32,884,739 | - | - |
| Receivables financing | 19,019,180 | 13,330,008 | - | - |
| Advances to suppliers | 3,807,586 | 3,316,194 | 48,391 | 81,244 |
| Contract assets | 3,885,838 | 4,045,925 | - | - |
| Loans and advances | 15,418,859 | 14,296,958 | - | - |
| Other receivables | 1,760,697 | 2,181,878 | 22,367,722 | 19,614,359 |
| Inventories | 41,203,729 | 47,339,255 | - | - |
| Current portion of non-current assets | 7,211,636 | 10,760,577 | 5,802,294 | 9,363,826 |
| Other current assets | 55,625,631 | 62,900,891 | 35,531,289 | 43,712,760 |
| Total current assets | 291,659,386 | 281,320,980 | 98,773,786 | 103,331,792 |
| Non-current assets: | ||||
| Other debt investments | 6,233,578 | 6,319,047 | 3,223,289 | 3,334,059 |
| Long-term receivables | 235,538 | 250,519 | - | - |
| Loans and advances | 908,904 | 975,272 | - | - |
| Long-term equity investments | 4,951,568 | 4,976,109 | 75,473,696 | 75,957,844 |
| Investments in other equity instruments | 37,820 | 37,874 | - | - |
| Other non-current financial assets | 7,851,142 | 7,769,938 | 264,099 | 285,170 |
| Investment properties | 1,269,879 | 1,293,629 | 383,780 | 393,988 |
| Fixed assets | 30,550,827 | 30,937,963 | 1,316,105 | 1,300,998 |
| Construction in progress | 5,302,760 | 4,681,220 | 827,829 | 749,934 |
| Right-of-use assets | 2,874,129 | 3,048,785 | 421 | 1,683 |
| Intangible assets | 17,873,109 | 18,457,736 | 619,542 | 583,714 |
| Goodwill | 30,160,121 | 30,858,237 | - | - |
| Long-term prepaid expenses | 1,749,818 | 1,736,199 | 69,995 | 72,745 |
| Deferred tax assets | 13,578,003 | 12,771,150 | 291,698 | 289,426 |
| Other non-current assets | 82,731,886 | 80,603,526 | 73,305,290 | 71,132,070 |
| Total non-current assets | 206,309,082 | 204,717,204 | 155,775,744 | 154,101,631 |
| TOTAL ASSETS | 497,968,468 | 486,038,184 | 254,549,530 | 257,433,423 |
| Consolidated and Company Balance Sheets (Cont’d) | ||||
| Prepared by Midea Group Co. Ltd. As at 31 March 2024 Unit: RMB’000 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | 31 March 2024 | 31 December 2023 | 31 March 2024 | 31 December 2023 |
| Consolidated | Consolidated | Company | Company | |
| Current liabilities: | ||||
| Short-term borrowings | 9,995,764 | 8,819,176 | - | 400,000 |
| Customer deposits and deposits from banks and other financial institutions | 96,718 | 88,960 | - | - |
| Financial liabilities held for trading | 1,183,559 | 1,346,674 | - | - |
| Derivative financial liabilities | 680,097 | 257,668 | - | - |
| Notes payable | 21,892,827 | 21,707,608 | - | - |
| Accounts payable | 79,091,053 | 72,530,465 | - | - |
| Contract liabilities | 37,555,322 | 41,765,475 | - | - |
| Employee benefits payable | 5,559,443 | 9,076,027 | 55,327 | 169,349 |
| Taxes payable | 6,967,511 | 5,455,102 | 339,786 | 411,715 |
| Other payables | 4,299,715 | 4,442,928 | 173,118,603 | 170,693,950 |
| Current portion of non-current liabilities | 8,230,153 | 14,457,710 | 420,406 | 6,621,910 |
| Other current liabilities | 78,444,281 | 71,297,928 | 102,267 | 147,552 |
| Total current liabilities | 253,996,443 | 251,245,721 | 174,036,389 | 178,444,476 |
| Non-current liabilities: | ||||
| Long-term borrowings | 46,026,826 | 46,138,736 | 16,600,000 | 16,600,000 |
| Bonds payable | 3,200,010 | 3,217,969 | - | - |
| Lease liabilities | 1,927,772 | 2,047,319 | - | - |
| Provisions | 973,582 | 782,539 | - | - |
| Deferred income | 1,752,408 | 1,734,932 | 203,629 | 157,917 |
| Long-term employee benefits payable | 1,333,241 | 1,433,874 | - | - |
| Deferred tax liabilities | 4,832,588 | 5,098,280 | - | - |
| Other non-current liabilities | 58,362 | 39,165 | - | - |
| Total non-current liabilities | 60,104,789 | 60,492,814 | 16,803,629 | 16,757,917 |
| Total liabilities | 314,101,232 | 311,738,535 | 190,840,018 | 195,202,393 |
| Shareholders’ equity: | ||||
| Share capital | 6,969,777 | 7,025,769 | 6,969,777 | 7,025,769 |
| Capital surplus | 17,147,777 | 21,243,156 | 25,393,761 | 29,479,180 |
| Less: Treasury stock | (7,651,734) | (12,871,738) | (7,651,734) | (12,871,738) |
| Other comprehensive income | (617,669) | (164,202) | (7,945) | (6,639) |
| General risk reserve | 670,310 | 642,525 | - | - |
| Special reserve | 16,823 | 16,040 | - | - |
| Surplus reserve | 10,702,928 | 10,702,928 | 10,702,928 | 10,702,928 |
| Undistributed profits | 145,260,495 | 136,284,347 | 28,302,725 | 27,901,530 |
| Total equity attributable to shareholders of the Company | 172,498,707 | 162,878,825 | 63,709,512 | 62,231,030 |
| Minority interests | 11,368,529 | 11,420,824 | - | - |
| Total shareholders’ equity | 183,867,236 | 174,299,649 | 63,709,512 | 62,231,030 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 497,968,468 | 486,038,184 | 254,549,530 | 257,433,423 |
| Legal representative: Principal in charge of accounting: Head of accounting department: Fang Hongbo Zhong Zheng Chen Lihong | ||||
| Consolidated and Company Income Statements | ||||
| Prepared by Midea Group Co., Ltd. For the three months ended 31 March 2024 Unit: RMB’000 | ||||
| Item | For the three months ended 31 March 2024 | For the three months ended 31 March 2023 | For the three months ended 31 March 2024 | For the three months ended 31 March 2023 |
| Consolidated | Consolidated | Company | Company | |
| Total revenue | 106,483,190 | 96,636,184 | 126,624 | 160,324 |
| Including: Operating revenue | 106,101,612 | 96,262,922 | 126,624 | 160,324 |
| Interest income | 381,460 | 373,117 | - | - |
| Fee and commission income | 118 | 145 | - | - |
| Total operating cost | (95,739,487) | (87,373,044) | 35,257 | 160,614 |
| Including: Cost of sales | (77,114,398) | (73,120,434) | (10,304) | (10,202) |
| Interest costs | (41) | (5,743) | - | - |
| Fee and commission expenses | (190) | (590) | - | - |
| Taxes and surcharges | (527,711) | (428,940) | (10,616) | (4,052) |
| Selling and distribution expenses | (10,629,812) | (8,444,025) | - | - |
| General and administrative expenses | (3,315,089) | (2,801,492) | (408,831) | (330,901) |
| Research and development expenses | (3,594,988) | (3,282,417) | - | - |
| Financial expenses/(income) | (557,258) | 710,597 | 465,008 | 505,769 |
| Including: Interest expenses | (531,995) | (566,174) | (714,160) | (1,059,937) |
| Interest income | 1,830,446 | 1,503,878 | 1,180,285 | 1,565,822 |
| Add: Other income | 643,446 | 339,952 | 45 | 1,007 |
| Investment income | 27,984 | 266,267 | 334,159 | 54,577 |
| Including: Investment income from associates and joint ventures | 124,468 | 106,190 | 80,109 | 52,833 |
| Losses/(Gains) on changes in fair value | (280,110) | 117,441 | (49,594) | 63,598 |
| Asset impairment losses | (176,207) | (135,237) | - | - |
| Credit impairment losses | (301,592) | (277,955) | (852) | (1,035) |
| Losses/(Gains) on disposal of assets | (3,777) | 11,215 | - | - |
| Operating profit | 10,653,447 | 9,584,823 | 445,639 | 439,085 |
| Add: Non-operating income | 115,251 | 35,234 | 26,935 | 503 |
| Less: Non-operating expenses | (25,427) | (7,491) | (204) | (201) |
| Total profit | 10,743,271 | 9,612,566 | 472,370 | 439,387 |
| Less: Income tax expenses | (1,706,950) | (1,466,834) | (75,101) | (92,964) |
| Net profit | 9,036,321 | 8,145,732 | 397,269 | 346,423 |
| (1) Classified by continuity of operations | ||||
| Net profit from continuing operations | 9,036,321 | 8,145,732 | 397,269 | 346,423 |
| Net profit from discontinued operations | - | - | - | - |
| (2) Classified by ownership of the equity | ||||
| Attributable to shareholders of the Company | 9,000,007 | 8,041,853 | 397,269 | 346,423 |
| Minority interests | 36,314 | 103,879 | - | - |
| Other comprehensive income, net of tax | (553,667) | (306,041) | (1,306) | 13,474 |
| Other comprehensive income attributable to equity owners of the Company, net of tax | (453,467) | (226,110) | (1,306) | 13,474 |
| (1) Other comprehensive income items which will not be reclassified subsequently to profit or loss | 21,034 | (4,559) | - | - |
| 1) Changes arising from remeasurement of defined benefit plan | 21,022 | (4,538) | - | - |
| 2) Changes in fair value of investments in other equity instruments | 12 | (21) | - | - |
| (2) Other comprehensive income items which will be reclassified subsequently to profit or loss | (474,501) | (221,551) | (1,306) | 13,474 |
| 1) Other comprehensive income that will be transferred subsequently to profit or loss under the equity method | 5,999 | 20,146 | (1,306) | 13,474 |
| 2) Cash flow hedging reserve | (216,731) | 228,680 | - | - |
| 3) Differences on translation of foreign currency financial statements | (255,697) | (438,048) | - | - |
| 4) Other | (8,072) | (32,329) | - | - |
| Other comprehensive income attributable to minority shareholders, net of tax | (100,200) | (79,931) | - | - |
| Total comprehensive income | 8,482,654 | 7,839,691 | 395,963 | 359,897 |
| Attributable to equity owners of the Company | 8,546,540 | 7,815,743 | 395,963 | 359,897 |
| Attributable to minority interests | (63,886) | 23,948 | - | - |
| Earnings per share: | ||||
| (1) Basic earnings per share (RMB Yuan) | 1.31 | 1.18 | Not applicable | Not applicable |
| (2) Diluted earnings per share (RMB Yuan) | 1.31 | 1.18 | Not applicable | Not applicable |
| Legal representative: Principal in charge of accounting: Head of accounting department: Fang Hongbo Zhong Zheng Chen Lihong | ||||
| Consolidated and Company Cash Flow Statements | ||||
| Prepared by Midea Group Co., Ltd. For the three months ended 31 March 2024 Unit: RMB’000 | ||||
| Item | For the three months ended 31 March 2024 | For the three months ended 31 March 2023 | For the three months ended 31 March 2024 | For the three months ended 31 March 2023 |
| Consolidated | Consolidated | Company | Company | |
| 1. Cash flows from operating activities | ||||
| Cash received from sales of goods or rendering of services | 88,582,691 | 76,222,164 | - | - |
| Net increase in customer deposits and deposits from banks and other financial institutions | 7,758 | - | - | - |
| Net decrease in deposits with the Central Bank, banks and other financial institutions | 204,214 | 53,905 | - | - |
| Cash received from interest, fee and commission | 384,976 | 378,547 | - | - |
| Refund of taxes and surcharges | 2,430,455 | 1,940,204 | - | - |
| Cash received relating to other operating activities | 4,680,030 | 1,007,190 | 2,832,114 | 16,429,105 |
| Sub-total of cash inflows | 96,290,124 | 79,602,010 | 2,832,114 | 16,429,105 |
| Cash paid for goods and services | (53,754,061) | (42,177,900) | - | - |
| Net increase in loans and advances | (1,103,429) | (2,738,924) | - | - |
| Net decrease in customer deposits and deposits from banks and other financial institutions | - | (9,818) | - | - |
| Cash paid for interest, fee and commission | (231) | (6,333) | - | - |
| Cash paid to and on behalf of employees | (14,145,520) | (11,721,976) | (226,355) | (193,662) |
| Payments of taxes and surcharges | (4,372,588) | (4,663,631) | (1,554) | (5,357) |
| Cash paid relating to other operating activities | (8,985,387) | (9,011,116) | (3,299,351) | (634,476) |
| Sub-total of cash outflows | (82,361,216) | (70,329,698) | (3,527,260) | (833,495) |
| Net cash flows from operating activities | 13,928,908 | 9,272,312 | (695,146) | 15,595,610 |
| 2. Cash flows from investing activities | ||||
| Cash received from disposal of investments | 37,756,875 | 28,212,804 | 30,466,734 | 18,724,000 |
| Cash received from returns on investments | 1,021,086 | 1,247,758 | 1,035,768 | 1,093,165 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 100,970 | 40,201 | - | - |
| Net cash received from disposal of subsidiaries and other business units | 21,251 | - | - | - |
| Sub-total of cash inflows | 38,900,182 | 29,500,763 | 31,502,502 | 19,817,165 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | (1,481,175) | (1,554,048) | (257,575) | (204,471) |
| Cash paid to acquire investments | (43,372,769) | (53,047,504) | (19,500,000) | (33,650,000) |
| Cash paid relating to other investing activities | (1,109) | (1) | - | - |
| Sub-total of cash outflows | (44,855,053) | (54,601,553) | (19,757,575) | (33,854,471) |
| Net cash flows from investing activities | (5,954,871) | (25,100,790) | 11,744,927 | (14,037,306) |
| 3. Cash flows from financing activities | ||||
| Cash received from capital contributions | 679,615 | 479,733 | 679,615 | 468,718 |
| Including: Cash received from capital contributions by minority shareholders of subsidiaries | - | 11,015 | - | - |
| Cash received from borrowings | 4,127,287 | 11,302,163 | - | 400,000 |
| Sub-total of cash inflows | 4,806,902 | 11,781,896 | 679,615 | 868,718 |
| Cash repayments of borrowings | (9,086,442) | (1,764,323) | (6,600,000) | - |
| Cash payments for interest expenses and distribution of dividends or profits | (404,993) | (417,966) | (729,371) | (1,122,267) |
| Including: Cash payments for dividends or profit to minority shareholders of subsidiaries | (32,786) | (30,823) | - | - |
| Cash payments relating to other financing activities | (406,293) | (530,869) | (24,272) | (68,903) |
| Sub-total of cash outflows | (9,897,728) | (2,713,158) | (7,353,643) | (1,191,170) |
| Net cash flows from financing activities | (5,090,826) | 9,068,738 | (6,674,028) | (322,452) |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | (114,203) | (92,665) | - | - |
| 5. Net increase in cash and cash equivalents | 2,769,008 | (6,852,405) | 4,375,753 | 1,235,852 |
| Add: Cash and cash equivalents at the beginning of the period | 59,887,260 | 51,131,968 | 29,283,157 | 27,904,229 |
| 6. Cash and cash equivalents at the end of the period | 62,656,268 | 44,279,563 | 33,658,910 | 29,140,081 |
| Legal representative: Principal in charge of accounting: Head of accounting department: Fang Hongbo Zhong Zheng Chen Lihong | ||||
4.2 Adjustments to financial statement items at the beginning of the year of the firstimplementation of the new accounting standards which have been implemented since 2024
□Applicable √N/A
4.3 Auditor’s report
Is this Report audited by a CPA firm?
□Yes √No
This Report is unaudited by a CPA firm.
The Board of Directors of Midea Group Co., Ltd.30 April 2024