International. Midea Group posted operating income in yuan (RMB) of $159.8 billion in 2016 (about US$23 billion), a year-on-year increase of 15%. Net profit was 15.9 billion yuan (about $2.3 billion), up 16 percent year-on-year. Net profit attributable to the company was RMB$14.7 billion (about $2.1 billion), seeing growth of 16%. Earnings per share were RMB$2.29.
The company indicated that its status within the industry continues to grow. Efficiency indicators and asset structures progressed. "Overall, it was a year in which the group took great strides to become a global leader in consumer devices, heating, ventilation and air conditioning (HVAC) systems, robots and industrial automation systems," the statement said.
Since its listing on the Shenzhen Stock Exchange (SZSE) on September 18, 2013, the company's market value has increased to approximately RMB210 million, nearly tripling, and has brought profits to shareholders.
The company further indicated that it continued to increase investment in research and development, integrating its global R&D resources and focusing on R&D innovation. Over the past five years, around RMB 20 billion has been invested in R&D, with 17 research centres established in eight countries.
The staff involved in R&D exceeds 10,000, with more than 300 international experts cooperating closely with more than 30 research institutes around the world. As of 2016, Midea Group had more than 26,000 patents authorized. Last year alone, the group applied for 13,546 patents and 5,562 invention patents.
The main products launched by Midea last year include the M-Smart air conditioning series, 6D water heater, high-temperature steam hood, precision washer and dryer, IH rice pot and many more. Many product categories achieved their highest profitability, ensuring that product competitiveness and brand value continued to grow.
Better corporate governance
At the same time, Midea launched a multi-level incentive program for senior management and key employees. This includes restricted stock incentives and multidimensional performance evaluations to ensure that there is personal participation in the company's long-term interests and to further optimize corporate governance. Nearly 2,000 people have participated in the early incentive scheme. This time, it will cover more than 1,600 people from middle and upper management.
