On January 12, 2022, commencing the "new decade" of digitalization at the Midea annual Conference Paul Fang, Chairman and President of Midea Group greeted Global Mideans from across the world and delivered a keynote speech entitled "Built to Grow, Expand to Fly". Paul, together with 160,000 Mideans, listened to what the era has to say and reviewed Midea's transformation journey for future growth.
Technology-driven transformation remains the main theme of the current era. Standing at this turning point, Paul, together with Mideans, analyzed the "risks" and "opportunities" of continuous change and evolution guided by technology-driven transformation. Midea will continue to upgrade its existing operations and create new businesses, firmly heading towards the goal of becoming a century-old company, starting from this "new decade".
Chasing Our Dreams
Regardless of What the Future Holds
Facing profound change unseen in a century such as the COVID-19 pandemic, peak-carbon and carbon-neutral challenges, social upheaval and tests from new technologies, all Mideans have worked together and grown with resilience over the past two extraordinarily difficult years. Mediocrity has been a strength for Midea inspiring Midea Group to buck the trend and obtain remarkable results.
Midea's Four Strategic Focuses – "Technology Leadership, Direct to Users, Digitalization & Intelligence Driven, Global Impact" – have been firmly planted in each Midean's mind, yielding significant results. Midea continuously optimizes its five business segments to break new ground:
The Smart Home Business Group has created a fully open home ecosystem and launched brand-new smart home solutions, and the scope of our IoT ecosystems continues to expand.
The HVAC & Building Technologies Division has been reformed into Midea Building Technologies Division, a provider of comprehensive smart building solutions. It has launched LINVOL, a new digital elevator brand, and iBuilding, a digital building platform.
The Electromechanical Business Unit has been transformed into Midea Industrial Technology Business Group. It is exploring the broader industry of large-scale production of home appliance chips, the launch of five key NEV (electric vehicle) parts and automated manufacturing.
The Robotic & Industrial Automation Division has seen substantial improvement in business performance. KUKA has placed a number of new products on the market, with breakthroughs made in new industries rather than just their traditionally strong business fields such as automobile. Both E-Commerce retail sales and profit of Swisslog have doubled.
The Digital Innovation Business keeps incubating and absorbing new brands and new businesses, always remaining highly sensitive to the cutting-edge market. Midea Cloud is empowering more manufacturing companies in digital transformation. Annto Logistics Technology enables the omni-channel development of industry partners. Wandong Medical has made breakthroughs in medical device manufacturing in China.
Mideans will always rise to challenges regardless of any ups and downs! There is always hope, and we will have a brighter future as long as we continue to forge ahead in a set direction.
Prosper in Making Changes
or Perish in Mediocrity
In an ever-changing market with accelerating uncertainty, following the old paths equals mediocrity, and means death. We must continue to reform in both business model and technology innovation to maintain our vitality and market competitiveness.
At this new junction, aiming for global impact, we need to examine ourselves and our situations against higher requirements, higher standards, and a broader vision.
Midea needs to enhance its global competitiveness and achieve significant breakthroughs in basic research and technology R&D. We have not been decisive enough in innovation and reform of our systems and business models. It is imperative for us not to be arrogant and get out of our comfort zone.
In Midea, the only thing that never changes is change itself. There is neither a better era nor a worse era, only a new era. Continuous evolution is the only pathway towards a brand-new Midea.
Implement New Strategies
to Boost New Growth Areas
Technology Leadership is the core strategy of Midea. In the next few years, Midea’s key business principle is to implement new strategies, firmly investing in technology to boost new growth areas, continually upgrading existing operations and achieving further growth by enhancing our own perspective and breaking down established mindsets.
Midea innovates and changes for greater growth, and innovation is to do things we have not done before. We should further invest in the future and build capabilities that give us a competitive edge surpassing current trends and drive Midea towards a brighter future.
In this cold winter, we need to be more determined to grow. We should ignite our "Number Two Engine" decisively and embrace ToB transformation to break new ground whilst still retaining the "Number One Engine" of ToC business.
Midea has grown from a startup into a global enterprise like a magnificent tree growing from a tiny seed. Thanks to its advanced governance mechanism, future-proof values, and managerial mindset growth, which are its three strong roots reaching deeply into the soil nourishing the branches and leaves. Under an advanced governance mechanism, we empower responsibilities, rights and obligations and encourage entrepreneurship. With future-proof values, we should truly put employees, users, customers and partners at the center of all things. Only if we share the same belief and ideas can Midea continue to prosper far into the future. The Management needs to reflect on and challenge themselves, endeavoring to achieve all-round growth both spiritually and intellectually.
A Decade of Course Resetting,
Embracing a Brand New Midea
We need to plan ahead using correct interpretations of the past. Transformations over the last century tell us that "established" companies hate to take risks and challenge themselves. But history also tells us that "successful" companies continually reform and challenge themselves.
Each change made along Midea's development journey has borne fruit. Midea reformed its corporate system and went public in 1993. Since the digital transformation and model revamping from 2012, it has accomplished many of its short-term business targets. We have also made long-term plans. Amid the 10-year transformation, Midea experienced radical changes in business data and industrial deployment.
Great truths are always simple. While aiming high, Midea needs to find certainties amid uncertainties to build strengths. We must be the first to apply industry-leading technologies, create a second growth curve at the optimum time, and open up a new avenue for growth to realize a transition from low added value to high added value.
With a great story woven by all Mideans, Midea calls upon new heroes for the new era, eagerly seeking talent, and expanding the team of scientists.
A great company will inevitably undergo different cycles. Midea must guard against itself, never retreating and boldly embracing transformation. We should persist in doing the right things over the long term and avoid being "big but not perfect". We should advocate altruism, inspire entrepreneurship, and develop via technological investments, industrial transformation and upgrading, appointment of competent managers, and emphasis on new-generation talent to embrace a decade of course resetting.
Youth Has No Age,
Stay Young Inside
Over the past 54 years, Midea has been built by all hard-working Mideans.
Many people may have been pursuing dreams their whole lives, constantly waiting, but may not get the opportunity they need; some may have never had an opportunity, and have been left behind in the rapidly changing digital era.
After the decade of course resetting, Midea and Mideans are standing in front of opportunities unseen in a century to deliver robust growth. Let's make every effort to seize the day, since it will never occur again. Built to Grow, Expand to Fly. Our youth and dreams have the power to drive Midea higher and further.
We will never stop pursuing our youth and dreams as there are no limits upon us! Let's join forces to build Midea into a technology-driven group with global impact!
It may be easy to say goodbye but it's hard to meet again! Let's keep moving forward on the same mission – and meet our better selves in the future!
换一换
