Midea Group and Gree Electric Appliance, as the leading enterprises in the field of smart appliances, have often sued each other for patent technology problems in recent years. Recently, they have sorted out the semi annual performance and financial reports of the two companies, sorted out their performance, products and R & D and made a brief analysis.
In the first half of 2019, Gree Electric achieved a total operating revenue of 97.297 billion yuan, an increase of 6.95% over the same period of last year; The net profit attributable to shareholders of listed companies was 13.75 billion yuan, an increase of 7.37% over the same period last year.
In the first half of 2019, Midea Group achieved a total operating revenue of 153.770 billion yuan, a year-on-year increase of 7.82%; The net profit attributable to the parent company was 15.187 billion yuan, a year-on-year increase of 17.39%.
It can be seen from the above data chart that Midea Group was slightly better than gree in revenue, net profit and growth in the first half of 2019. However, from a closer look, Midea Group’s revenue was relatively high, but the net profit was not very ideal. The net profit margin of Midea Group’s revenue was 9.88%, Gree’s net profit margin was 14.13%, and the net profit margin of the two companies was no more than 15%. It can be seen that due to the fierce market competition, the profit of the home appliance industry was relatively low.
By product, 92% of Midea Group’s revenue comes from manufacturing, mainly composed of three revenue businesses: HVAC, consumer appliances, robots and automation systems.
As can be seen from the above figure, in the first half of the year, Midea Group achieved a revenue of 71.439 billion yuan, accounting for 45.46% of the total revenue; The revenue of consumer appliances is 58.351 billion yuan, accounting for 37.95% of the total revenue, and the revenue of robots and automation systems is 12.024 billion yuan, accounting for 7.82% of the total revenue. The product distribution is relatively balanced.
In contrast, 85% of Gree’s revenue comes from manufacturing, mainly including air conditioning, household appliances, intelligent equipment and others.
As can be seen from the above figure, Gree Electric air conditioner is the main source of revenue, with a revenue of 79.325 billion yuan in the first half of 2019, accounting for 81.53% of the total revenue; The revenue of household appliances was 2.561 billion yuan, accounting for 2.63% of the total revenue; The revenue of intelligent equipment is 415 million yuan, accounting for 0.43% of the total revenue; Other revenue was 1.032 billion yuan, accounting for 1.06% of the total revenue.
research and development
Midea Group and Gree Electric have made every effort in R & D in recent years. In the first half of 2019, Midea Group invested 4.535 billion yuan in R & D, accounting for 2.95% of the total revenue, an increase of 16.30% over the previous year. Gree Electric invested 3.064 billion yuan in R & D in the first half of the year, accounting for 3.15% of the total revenue, an increase of 6.98% over the previous year.
Specifically, Midea Group and Gree Electric appliance are fully equipped with strategies for R & D investment.
Midea Group has invested more than 30 billion yuan in R & D in the past five years, and nearly 10 billion yuan in 2018 alone. It has set up 20 research centers in 9 countries, including China, with more than 10000 R & D personnel and more than 500 foreign senior experts. The cumulative number of patent applications has exceeded 100000 and the authorized maintenance volume has exceeded 50000. While strengthening the layout of global R & D centers, it has cooperated with MIT, ucberkeley, UIUC, Stanford, Purdue University, University of Maryland, Milan Institute of technology, Tsinghua, Chinese Academy of Sciences and other top scientific research institutions at home and abroad to establish joint laboratories, in-depth technical cooperation and create a global innovation ecosystem.
Gree Electric Appliance
Gree Electric has 14000 R & D personnel and more than 30000 technical workers; It has 15 research institutes, 96 research institutes, 929 laboratories and 2 academician workstations. At the same time, it has one national key laboratory, one national engineering technology research center, one national industrial design center, one national recognized enterprise technology center and one robot engineering technology R & D center. It has 24 “international leading” technologies, and has won 2 national scientific and technological progress awards, 1 National Technological Invention Award and 4 Chinese patent awards. As of the first half of the year, 53134 patents have been applied for, including 24905 invention patents.
With the application of artificial intelligence technology in the home field, the home appliance market will continue to develop towards intelligence, multi category, multi-dimensional and multi-level in the future. It is expected that Midea Group and Gree will realize benign competition in technology, continue to carry forward in the field of smart home, and take the Chinese national brand to the world.