The founder's family companies and their dealings with Midea Group

analysisMidea's September 2024 Hong Kong prospectus describes Lu Deyan, who holds the remaining 5.5% of Midea Holding, as the daughter-in-law of He Xiangjian and states that they are not parties acting in concert in respect of their interests in Midea Holding. The prospectus does not name her husband; a media report in September 2024 described her as the wife of He Jianfeng. A media report in June 2024 described He Jianfeng as the son of Midea Group's founder He Xiangjian, and a commercial company-data service profile also describes him as He Xiangjian's son. The parent-child relationship therefore rests on these media reports and the data-service profile, and the marriage on the September 2024 media report; no Midea or Midea Real Estate filing in the inspected record states that He Jianfeng is He Xiangjian's son or Lu Deyan's husband. ^{1 2 3 4}

analysisMidea's 2020 annual report lists He Jianfeng as a director of Midea Group, with his then current term starting on 25 August 2012, and as president of the shareholding entity Midea Holding Co., Ltd. from January 2016, receiving no allowance from Midea Holding; it gives no end date for that post. Media reports in June and September 2024 stated that He Jianfeng was not included in Midea Group's fifth board of directors, announced by the company on 14 June 2024, and so lost the board seat he had held for 12 years. The September 2024 report added that he had become a non-executive director in September 2023, that Yu Gang also left the board at the June 2024 change, that Zhao Jun was appointed as the new non-executive director and that the vice-president Guan Jinwei became an executive director. The record contains no Midea announcement of the 2024 board election itself, but Midea's own records are consistent with the reports: its September 2024 Hong Kong prospectus describes a ten-member board with one non-executive director, Zhao Jun, and its 2025 annual report dates the current director terms of Zhao Jun and Guan Jinwei from 2 July 2024. ^{5 3 1 6 7}

analysisMidea's 2025 annual report lists two routine related-party transactions for 2025, both priced at market prices. Midea Group bought goods from Huitong New Materials Co., Ltd. (会通新材料股份有限公司), described as a company controlled by a relative of Midea's actual controller, for RMB 146,385 ten-thousand (about RMB 1.46 billion; 0.46% of transactions of the same type) against an approved cap of RMB 1.9 billion. It sold goods to Midea Real Estate Holding Limited (美的置业控股有限公司), described as a company controlled by the actual controller, for RMB 8,349 ten-thousand (about RMB 83.5 million; 0.02%) against a cap of RMB 250 million. Neither amount exceeded its cap, both were settled with goods delivered before payment, and the caps had been disclosed on 29 March 2025 (announcement 2025-012). The report states that in 2025 there were no related-party acquisitions or disposals of assets or equity and no related-party debts. ¹

analysisThe notes to Midea's 2025 financial statements name He Xiangjian as the company's ultimate controller. They list Huitong New Materials Co., Ltd. and its subsidiaries as under the common control of immediate family members of Midea's ultimate controlling shareholder, and Midea Real Estate Holding Limited and its subsidiaries as under the common control of Midea's ultimate controller. Transactions with the main related parties were on normal commercial terms, with prices negotiated by reference to market prices. Purchases of goods from Huitong and its subsidiaries were RMB 1,463,851 thousand in 2025 (2024: RMB 1,437,677 thousand), and trade and notes payable to them were RMB 153,451 thousand at 31 December 2025 (31 December 2024: RMB 64,572 thousand). ¹

analysisThe same notes list related parties of another kind: Guangdong Shunde Rural Commercial Bank Co., Ltd. and Carrier Midea North America LLC are among the companies in which the group holds investments in associates and joint ventures. In 2025 Midea Group sold goods of RMB 2,159,244 thousand to Carrier Midea North America (2024: RMB 1,965,917 thousand) and received interest income of RMB 220,599 thousand from Shunde Rural Commercial Bank (2024: RMB 301,244 thousand). The group's balances with the bank, recorded as cash, other non-current assets and non-current assets due within one year, were RMB 6,922,056 thousand at 31 December 2025 (31 December 2024: RMB 6,645,217 thousand). Key management compensation, which includes share options, restricted shares and employee share ownership plans, was RMB 318,736 thousand in 2025 (2024: RMB 316,564 thousand). ¹

analysisMidea's 2026 interim report lists the same two routine related-party transactions for the first half of 2026, priced at market prices and settled as agreed. Midea Group bought goods from Huitong New Materials, described as controlled by a relative of the actual controller, for RMB 78,489.7 ten-thousand (about RMB 785 million; 0.44% of transactions of the same type) against the approved cap of RMB 190,000 ten-thousand, and sold goods to Midea Real Estate Holding Limited, described as controlled by the actual controller, for RMB 2,727.6 ten-thousand (about RMB 27.3 million; 0.01%) against a cap of RMB 25,000 ten-thousand. Together the two came to RMB 81,217.3 ten-thousand against caps of RMB 215,000 ten-thousand; neither exceeded its cap, the caps were disclosed on 31 March 2026 (announcement 2026-014), and the report states that there were no related-party acquisitions or disposals of assets or equity in the period. ²

analysisThe notes to the financial statements for the first half of 2026 again name He Xiangjian as ultimate controller and keep both classifications: Huitong and its subsidiaries under the common control of immediate family members of Midea's ultimate controlling shareholder, Midea Real Estate and its subsidiaries under the common control of the ultimate controller. For the six months to 30 June 2026 they show purchases of goods from Huitong and its subsidiaries of RMB 784,897 thousand (first half of 2025: RMB 708,002 thousand), sales of goods to Carrier Midea North America LLC of RMB 1,738,039 thousand (RMB 1,355,588 thousand), investment income on monetary products and interest income from Guangdong Shunde Rural Commercial Bank of RMB 100,240 thousand (RMB 99,786 thousand) and key management compensation of RMB 114,626 thousand (RMB 124,254 thousand). The group's monetary-product investments with the bank were RMB 4,268,837 thousand at 30 June 2026, against a comparative figure of RMB 6,922,056 thousand, which equals the figure given for 31 December 2025. In the extracted interim note tables the current-period figures are separated from their row labels; they are assigned by row order, which matches the section subtotals and the RMB 78,489.7 ten-thousand Huitong amount in the report's own transaction table. ^{2 1}

analysisMidea's 2020 annual report lists three routine related-party transactions for 2020, priced at market prices. Midea bought goods from Infore Environment Technology Group Co., Ltd., described as controlled by a family member of the company's actual controller, for RMB 951,201 thousand (0.48% of transactions of the same type) against an approved line of RMB 1,500,000 thousand, and from Orinko Plastics Group, with the same description, for RMB 1,238,817 thousand against RMB 1,700,000 thousand. It sold goods to Midea Real Estate Holding Limited, described as controlled by the company's actual controller, for RMB 198,903 thousand. None of the amounts exceeded its approved line. The English report names 'Orinko Plastics Group', and the inspected records do not state whether it is the same group as Huitong New Materials (会通新材料) named in the Chinese-language 2025 and 2026 reports; the approved line for Midea Real Estate is garbled in the extracted table and is not stated. ¹

analysisMidea's own 2025 and 2026 reports describe Midea Real Estate Holding Limited as under the common control of Midea's ultimate controller, He Xiangjian, and Midea's 2025 annual report lists it among the listed companies the actual controller has controlled in the past ten years. A September 2024 media report gave a fuller account, citing Midea Real Estate's 2023 annual report, which is not in the inspected record. It stated that Lu Deyan is the actual controller of Midea Real Estate and that He Xiangjian controls the company through an acting-in-concert confirmation; that the controlling shareholder is 美的强展控股（BVI）有限公司 with 76.43%, with He Xiangjian and Lu Deyan also controlling shareholders; and that Lu Deyan indirectly controls 81.13% of the shares through 美的发展控股（BVI）有限公司, 美恒有限公司 and 美域有限公司. The report said that He Jianfeng, as her husband, shares control through his spouse's interest and is a non-executive director, and that neither He Xiangjian nor Lu Deyan holds a management position there. The percentages are as the report gives them. ^{1 2}

analysisMidea Real Estate Holding Limited (美的置業控股有限公司) was incorporated in the Cayman Islands on 29 November 2017 and is listed on the Main Board of the Stock Exchange of Hong Kong under stock code 3990. On 28 March 2025 it announced that Lin Ge had resigned that day as an executive director and vice president, to devote more time to other business operations of its group, and that he had confirmed having no disagreement with the board. The same announcement appointed Liu Min (劉敏) as an executive director responsible for the group's financial and treasury affairs, securities business and investor relations. It states that she joined the Midea Real Estate group in July 2010 and earlier held positions in Midea Group Co., Ltd., including financial controller of Annto Logistics Co., Ltd. (now Annto Logistics Supply Chain Technology Co., Ltd.) from September 1992 to June 2010; that Midea Group is a connected person of Midea Real Estate; and that she has no relationship with any director, senior manager or substantial or controlling shareholder of Midea Real Estate. Her announced career differs from that of Midea Group's vice-president of the same name, who according to Midea's 2020 annual report joined Midea in 1998 and was a Midea Group vice-president in 2020; the record does not identify them as one person, and they are kept apart. After the change the board comprised executive directors Hao Hengle (chairman), Wang Dazai and Liu Min; non-executive directors He Jianfeng, Zhao Jun and Ren Lingyan; and independent non-executive directors Tan Jinsong, O'Yang Wiley and Lu Qi. ^{3 4}

analysisMidea Real Estate's interim results announcement dated 10 August 2026 lists its board as executive directors Wang Dazai (chairman and president), Liu Min and She Zuojun; non-executive directors He Jianfeng, Zhao Jun and Ren Lingyan; and independent non-executive directors Tan Jinsong, O'Yang Wiley and Lu Qi. Its audit committee, established on 12 September 2018, comprises Tan Jinsong (chairman), O'Yang Wiley and Zhao Jun; it reviewed the unaudited interim results for the six months ended 30 June 2026, and PricewaterhouseCoopers, the company's auditor, reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410. In the same announcement Midea Real Estate disclosed a deviation from code provision C.2.1 of the Corporate Governance Code in Appendix C1 to the Hong Kong Listing Rules, which provides that the roles of chairman and chief executive should be separate, because Wang Dazai was both chairman and president during the period. Its board stated that, given Wang Dazai's experience in the group's business, combining the two roles facilitates the execution of its strategy and business development, and that the balance of power is preserved because the nine-member board includes three independent non-executive directors and takes major decisions by majority vote; it said it would review the structure from time to time. ⁵

analysisFor the six months ended 30 June 2026 Midea Real Estate reported unaudited revenue of RMB 1,882.48 million, down 5.7% from RMB 1,996.59 million a year earlier. Project management services contributed RMB 329.61 million (down 34.7% from RMB 504.70 million), property management services RMB 912.70 million (RMB 929.99 million), asset operation RMB 558.65 million (up 103.2% from RMB 274.93 million) and real estate technology RMB 81.52 million (down 71.6% from RMB 286.97 million). Profit attributable to owners of the company was RMB 254.59 million, down 16.7% from RMB 305.46 million, and the board declared an interim dividend of HK$0.12 per share. ⁵

analysisMidea's 2020 annual report describes He Jianfeng as chairman of the board and president of Infore Investments Holding Group Co., Ltd.; its table of positions in other entities dates the post from June 1995 and shows him receiving an allowance from that entity. A June 2024 media report and a commercial company-data service profile both state that he founded Infore (盈峰) in 1994. These are an unsourced profile and a media remark: the media report uses the business-group name Infore Group, and neither source ties the 1994 founding to a registered company. The profile also describes him as chairman of a company named 盈峰控股集团有限公司 and states that he set up a Shenzhen investment-management company, 深圳市合赢投资管理有限公司, in 2007 and has chaired the Hede charity foundation (和的慈善基金会) since 2013. A commercial company-data service lists him as a shareholder, chairman, manager, director and legal representative of Infore Group Co., Ltd. (盈峰集团有限公司), which it shows as established on 18 April 2002 with registered capital of RMB 4.45 billion; the listing gives no dates, shareholding percentage or source filings, and the service's counters of affiliated, invested and 'controlled' companies and of co-positions are aggregate figures without content and are not reproduced. ^{1 2 3}

analysisA media report in September 2024 stated that He Jianfeng, He Xiangjian's son, indirectly controls four listed companies, Midea Real Estate Holding Limited, Infore Environment Technology Group (盈峰环境), Bainaqiancheng (百纳千成) and Jason Furniture (顾家家居), and that he controls many businesses through Infore Group (盈峰集团), which, according to the report, set up asset-management and commercial-factoring companies and is the controlling shareholder of a micro-lending company. A June 2024 media report stated that Infore had paid CNY 10.3 billion the previous November for a 29 percent stake in Jason Furniture, taking control of the company. These media accounts give no shareholding chains or percentages for the companies, and the inspected record contains no filings by Infore Environment, Bainaqiancheng or Jason Furniture. Midea's 2020 annual report separately describes Infore Environment as controlled by a family member of Midea's actual controller, without naming that person. ^{4 3 1}

analysisFoshan Shunde Midea Development Co., Ltd. (佛山市顺德区美的发展有限公司) is documented in the record only by commercial company-data listings. One lists He Xiangjian as shareholder and executive director of Midea Holding Co., Ltd. and as chairman, director executing company affairs and legal representative of Foshan Shunde Midea Development, which it shows with registered capital of RMB 3.3 billion and a founding date of 13 April 2010. Another lists Ren Lingyan as a director and the person in charge of finance of the same company, with He Xiangjian as legal representative, the same registered capital and an establishment date of 13 April 2010. Neither listing gives appointment dates or source filings, and no filing in the record confirms them; the services' counters of linked, controlled and affiliated companies and of co-positions with other persons say nothing about the content of those roles and are not reproduced. ^{1 2}

analysisMidea's September 2024 Hong Kong prospectus states that, apart from Zhao Jun, its non-executive director, who is also executive president of Midea Holding and a non-executive director of Midea Real Estate, and Ren Lingyan, its supervisor, who is also finance director of Midea Holding, none of its directors, supervisors and senior management holds an executive position in Midea Holding or its close associates. It states that the company and Midea Holding and its close associates are managed by separate management teams. ¹

analysisThe prospectus states that Zhao Jun, a director of Midea Group since July 2024, joined the group in March 2000 and held positions at Midea Electric from July 2004 to September 2012, including head of its finance and accounting department. It lists him as a director of Guangzhou SiE Consulting Co., Ltd. (廣州賽意信息科技股份有限公司, SZSE: 300687) since December 2015, executive president of Midea Holding since March 2020, a non-executive director of Midea Real Estate (HKEX: 3990) since May 2018 and its vice chairman since November 2012, and as holding directorships in subsidiaries of Midea Real Estate, including Midea Construction (Hong Kong) Limited. The prospectus does not say which entity the November 2012 vice-chairmanship refers to; Midea Real Estate Holding Limited itself was incorporated in the Cayman Islands on 29 November 2017, according to its March 2025 announcement. Midea's 2025 annual report describes Zhao Jun as having worked at Midea from 2000 to 2012 and at Midea Holding since 2012 and as a former director and chief financial officer of Guangdong Midea Electric Co., Ltd. Its tables list him as a director of Midea Group from 2 July 2024, as executive president of Midea Holding from March 2020 and as a non-executive director of Midea Real Estate from November 2017, both of the latter with remuneration, and as an unremunerated director of Guangzhou SiE Consulting from December 2015. The two Midea documents thus date the Midea Real Estate directorship from May 2018 and from November 2017 respectively, and neither explains the difference. ^{2 3 4}

analysisAccording to the prospectus, Ren Lingyan, appointed a supervisor of Midea Group in July 2024, joined the group in July 2006, worked in its finance departments and since April 2012 has held several positions in the finance department of Midea Holding, including head of the finance department. Midea's 2025 annual report lists her as finance director of Midea Holding from March 2020, with remuneration, and records her term as a Midea Group supervisor from 2 July 2024 to 30 May 2025. Midea's 2020 annual report lists a further person in a Midea Holding post: Liu Min, then a vice-president of Midea Group, as executive president of Midea Holding from March 2020, with an allowance from Midea Holding. The 2024 prospectus and the 2025 annual report give Zhao Jun as executive president of Midea Holding since March 2020, and the 2020 report's own biography of Zhao Jun also calls him Midea Holding's executive president; the record does not explain whether both held the title at the same time. This Liu Min is not the Midea Real Estate executive director of the same name appointed in March 2025. ^{2 4 5}