ANNUAL 2020 RESULTS
Midea Group Co., Ltd. The 2020 Annual Report
30 April 2021 The 2020 Annual Report of Midea Group Co., Ltd.
Section I
Important Statements, Contents and Definitions
The Board of Directors, the Supervisory Committee, directors, supervisors and senior management of Midea Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the information presented in this report is free of any misrepresentations, misleading statements or material omissions, and shall together be wholly liable for the truthfulness, accuracy and completeness of its contents.
All directors of the Company attended the Board meeting to review this Annual Report. There are no directors, super- visors, or senior management who do not warrant or who dispute the truthfulness, accuracy and completeness of the contents of this Annual Report.
The financial statements for 2020 have been audited by PricewaterhouseCoopers Zhong Tian LLP and have obtained an unqualified audit report.
Mr. Fang Hongbo, Chairman of the Board and CEO of the Company and Ms. Zhong Zheng, Director of Finance of the Company, have represented and warranted that the financial statements in this report are true and complete.
The Board has considered and approved the following dividend payout plan for the year 2020: based on the 6,916,495,109 shares at the disclosure date of this report (the total share capital of 7,047,686,070 shares minus the repurchased 131,190,961 shares in the repo securities account at that date), it is proposed that the Company should distribute a cash dividend of RMB16 (tax inclusive) per 10 shares to all the shareholders and should not convert capital surplus into share capital. When the profit distribution plan is implemented, if any change occurs to the total shares eligible for profit distribution, the profit distribution plan shall be based on the total shares eligible for profit distribution at the book closure date of the profit distribution, and the dividend per share shall be adjusted under an unchanged total distribution amount.
The future plans and some forward-looking statements mentioned in this report shall not be considered as virtual promises of the Company to investors. Therefore, investors are kindly reminded to pay attention to possible investment risks.
This report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
2 The 2020 Annual Report of Midea Group Co., Ltd.
Contents
SECTION I IMPORTANT STATEMENTS, CONTENTS AND DEFINITIONS ...... 2
SECTION II COMPANY PROFILE AND KEY FINANCIAL RESULTS ...... 8
SECTION III BUSINESS PROFILE ...... 11
SECTION IV PERFORMANCE DISCUSSION AND ANALYSIS ...... 20
SECTION V SIGNIFICANT EVENTS ...... 86
SECTION VI CHANGES IN SHARES AND INFORMATION ABOUT SHAREHOLDERS ...... 165
SECTION VII INFORMATION ABOUT DIRECTORS, SUPERVISORS, SENIOR MANAGEMENT AND EMPLOYEES ...... 178
SECTION VIII CORPORATE GOVERNANCE ...... 194
SECTION IX FINANCIAL REPORT ...... 202
SECTION X DOCUMENTS AVAILABLE FOR REFERENCE ...... 357
3 The 2020 Annual Report of Midea Group Co., Ltd.
Definitions
Term Definition
The “Company”, “Midea”, “Midea Group” or the “Group” Midea Group Co., Ltd.
Midea Holding Midea Holding Co., Ltd.
TLSC Toshiba Lifestyle Products & Services Corporation
KUKA KUKA Aktiengesellschaft
Reporting Period 1 January 2020 to 31 December 2020
4 The 2020 Annual Report of Midea Group Co., Ltd.
Section II
Company Profile and Key Financial Results
1. Corporate Information
Stock abbreviation Midea Group
Stock code 000333