In capital markets, seeking high-quality growth stocks remains an eternal pursuit for investors. However, maintaining growth elasticity while extending growth sustainability has never been an easy task. Regarding stock selection, "The Little Book That Still Builds Wealth" by Morningstar analysts provides valuable insights. The author believes the key lies in "identifying the target company's competitive advantages," and more importantly, "determining the duration of such advantages." Only products or services protected by "economic moats" can generate substantial returns.

Following this investment approach to identify targets, Midea Group Co.,Ltd. (00300, 000333.SZ), one of the "pearls" of Chinese manufacturing, appears quite representative. This evening, Midea Group disclosed its 2025 interim report, presenting results that thoroughly validate the company's technological leadership and significant achievements in global expansion.

**Building Deep "Moats" Through Technological Leadership**

On August 29, Midea Group released its 2025 interim results. The financial report shows that in the first half, Midea achieved operating revenue of RMB 252.331 billion, a year-on-year increase of 15.7%; net profit attributable to shareholders reached RMB 26.014 billion, up 25% year-on-year, significantly exceeding expectations. The core financial metrics continue their high-growth momentum, once again confirming Midea as a typical high-quality growth stock.

Behind the impressive interim performance, Midea Group's Smart Home business (To C business) maintained its leading market position in the first half, while the company's Commercial & Industrial Solutions business (To B business) fully delivered on its growth expectations as the second growth curve.

Data shows that in the first half, Midea's Smart Home business achieved revenue of RMB 167.201 billion, up 13.3% year-on-year; Commercial & Industrial Solutions business generated revenue of RMB 64.538 billion, up 20.8% year-on-year. By business division, New Energy & Industrial Technology, Robotics & Automation, and Smart Building Technologies reported revenues of RMB 21.959 billion, RMB 15.073 billion, and RMB 19.511 billion respectively, with year-on-year growth rates of 28.6%, 8.3%, and 24.2%.

It's evident that Midea Group's major business segments continue to work synergistically, driving orderly scale growth. The underlying logic behind the company's growth encountering no "ceiling" lies in Midea Group's persistent commitment to building deeper moats through "technological leadership."

Taking examples from the reporting period, for the key overseas market of North America, Midea launched the T3 high-performance variable frequency series, pioneering "high-torque miniaturized T3 compressor + air-liquid hybrid refrigerant tube heat dissipation technology," helping the product achieve outstanding market performance locally. The Little Swan Mini series represents the industry's first 1+1KG mini washer-dryer combo, achieving "true zoning, true drying, true versatility."

Similar cases abound, but product upgrades alone don't fully capture Midea's deep understanding and forward-looking exploration of the transformation from manufacturing to "smart manufacturing." In terms of production capacity, Midea previously established the world's first intelligent agent factory - Midea's washing machine factory in Jingzhou. This factory has obtained WRCA certification as the "world's outstanding first multi-scenario intelligent agent factory." The factory's 14 intelligent agents cover 38 core production business scenarios, with results showing these agents can complete traditional manual hour-level tasks with second-level responses across multiple scenarios.

Being the first globally to deploy intelligent agent factories, the "Midea speed" reflects Midea's long-term investment in key innovation areas like robotics beginning to show results. Starting from Welling Motor's self-developed servo motors under Midea, the company has made unlimited investments in robotics through self-research, joint ventures, and acquisitions over the years. In terms of achievements, besides the humanoid robot "Meiluo" appearing in the Jingzhou washing machine factory, Midea also showcased "Meila," a household humanoid robot capable of making coffee and opening refrigerators, at the World Artificial Intelligence Conference in July, with related results landing intensively.

**Midea's Example of Chinese Advanced Manufacturing's "Global Breakthrough"**

This year marks the conclusion of "Made in China 2025." Standing at the historic juncture where Chinese advanced manufacturing leads globally in multiple aspects, Midea Group's "global breakthrough" continues to unfold comprehensively.

In the first half, Midea Group achieved overseas revenue of RMB 107.192 billion, up 17.7% year-on-year, with the proportion rising to 42.5%. Undoubtedly, overseas markets have become an important cornerstone for Midea's long-term development.

The steady improvement in overseas penetration reflects both the increasing "technological content" and global competitiveness of Chinese advanced manufacturing represented by Midea, as well as Midea's increasingly comprehensive overseas system layout and accelerating pace of overseas autonomous capacity construction.

As of the end of the first half, Midea has established 38 R&D centers across 12 countries globally, forming a "2+4+N" global R&D network. Additionally, Midea currently operates 41 overseas bases, enabling global production and delivery to better capture overseas market growth opportunities.

Regarding overseas prospects, according to data from Western Securities, Midea's proprietary brand appliances currently hold approximately 6%+ global market share. Even for its advantageous category of air conditioners, Midea still has considerable room for improvement in global market share. For other categories like refrigerators, washing machines, and small appliances, given Midea's manufacturing scale advantages and continued increased R&D investment over the years, the company's breakthrough potential in these areas remains significant.

Finally, returning to the capital market perspective, Chinese assets are currently experiencing systematic revaluation, with quality companies' stock price operating centers generally moving higher. From an investment standpoint, Midea Group combines both growth and value attributes. The company not only demonstrates excellent financial performance but also maintains a tradition of high dividends. This year, Midea has significantly increased share buybacks, launching two buyback plans in the first half, further highlighting management's emphasis on shareholder returns. The allocation value of such high-quality growth blue-chip stocks in bull market conditions is self-evident.