Midea Group: Annto financing and related-party business

analysisThe annual report says Annto issued 205.2 million ordinary shares to outside investors during 2025, raising RMB1.9 billion. Midea retained control, so the transaction was accounted for as a change in non-controlling interests rather than a disposal of the subsidiary. The year-end subsidiary table gives the group’s rounded interest as 53%. The outside financing, a proposed stock-exchange listing and a completed public flotation are different events. The retained accounts do not establish that the proposed Hong Kong listing had completed. ¹

analysisMay 2025 reporting describes Midea’s proposed spin-off of Annto for a Hong Kong listing, following an earlier Shenzhen plan. The report records a high historical share of logistics revenue from Midea and related parties and discusses how Annto could develop outside customers. The article’s interpretation of the business strategy is attributed analysis. A related-party revenue concentration does not by itself establish improper pricing or unlawful transfers. The reported company statement said Annto had developed the capacity to meet the group’s demanding logistics needs and expected substantial cooperation to continue for some time as the business expanded. The proposal still required further corporate and listing steps at the reported date; no final listing outcome is established here. ²

analysisThe 2025 notes list Midea Holding and other controlling-family businesses as related parties, including Hefei Huitong and Midea Real Estate. Disclosed transactions included RMB1.464 billion of purchases from Huitong, RMB2.159 billion of sales to Carrier Midea North America and RMB220.599 million of interest income from Shunde Rural Commercial Bank. Deposits at that bank were RMB6.922 billion at year-end. Related-party classification does not make each counterparty a subsidiary of the listed group. These are selected disclosed transactions and balances, not a finding of impropriety or a complete exposure total. The issuer describes the transactions as conducted in the ordinary course on commercial terms. ¹