In the fiercely competitive logistics market, Ande Smart Link holds a 27% market share, outpacing JD Logistics to secure the top position in China's home appliance integrated supply chain logistics solutions market. However, its leading advantage is narrow, and the market landscape could shift dramatically at any time. Its public listing fundraising will help expand into new markets and support Midea Group's overseas expansion. In 2024, Ande Smart Link's major customers represented only 1.6% of its client base but contributed 59% of revenue, with Midea Group alone accounting for 41%. Strategic investor Hisense Group, which made a late-stage investment, sits as the second-largest shareholder, providing both capital and orders. Related party transactions are expected to surge from 370 million yuan in 2024 to 18 billion yuan by 2027. By 2027, the combined related party transaction ceiling from Midea Group and Hisense Group could reach 143 billion yuan, representing half of Ande Smart Link's revenue. Will this impact capital market valuation of its IPO?

**Foshan Creates Wealth Once Again**

Foshan, Guangdong Province's third-largest city, is creating wealth again. Following Ririshun under Haier Group, another logistics company incubated within a home appliance giant is charging toward the capital markets - Ande Smart Link Supply Chain Technology Co., Ltd. (Ande Smart Link), a subsidiary of Midea Group Co.,Ltd. (000333/00300.HK).

On August 27, 2025, Ande Smart Link submitted its application to the Hong Kong Stock Exchange, with China International Capital Corporation (601995/03908.HK) and Morgan Stanley as sponsors. If successfully listed, it will become the tenth listed company controlled by the He Xiangjian family, with wealth creation effects benefiting many.

Midea Group has implemented multiple rounds of equity incentives throughout its history. Current CEO Fang Hongbo directly holds 117 million shares, with wealth of approximately 9 billion yuan, representing the pinnacle for professional managers. Based on issuance market value calculations, his Ande Smart Link stake through Ningbo Meiyue is worth approximately 60 million yuan.

Ande Smart Link has long arranged employee shareholding, which combined with Midea Group's employee shareholding platforms, totals over 270 people holding nearly 20% of shares, valued at approximately 1.368 billion yuan, averaging about 5 million yuan per person. Ande Smart Link Chairman Liang Pengfei holds significant portions across multiple shareholding platforms, with equity value exceeding 200 million yuan.

**He Xiangjian Family's Tenth IPO Approach**

As early as July 2023, Midea Group planned to spin off Ande Smart Link for listing on the Shenzhen Stock Exchange main board. Due to Ande Smart Link's registration in Wuhu, Anhui, China International Capital Corporation submitted listing guidance filing materials to Anhui Securities Regulatory Bureau in December that year, but no further progress was made.

In April 2025, Midea Group adjusted its strategy to spin off Ande Smart Link for Hong Kong Stock Exchange main board listing. By late August, Ande Smart Link formally submitted its Hong Kong IPO application.

Midea Group has already "paved the way" for Ande Smart Link's Hong Kong listing. In September 2024, Midea Group completed its Hong Kong IPO, becoming another "A+H" listed home appliance giant after Haier Smart Home (600690/06690.HK), with China International Capital Corporation also serving as one of the sponsors.

Before Ande Smart Link's IPO, Midea Group holds 52.94% through its wholly-owned subsidiary Midea Smart Link. Post-listing, Midea Group will remain the controlling shareholder.

Including Ande Smart Link, the He Xiangjian family controls ten listed enterprises across nine companies. As of the first half of 2025, these ten major enterprises achieved combined revenue of 292.6 billion yuan, net profit of approximately 28.4 billion yuan, and total assets of 665.3 billion yuan.

As of September 9, 2025, the nine already-listed enterprises have a combined market capitalization of 737.3 billion yuan, with Midea Group's market cap of 592.7 billion yuan accounting for over 80%.

**Competing with JD Logistics for Market Leadership**

According to Zhide Consulting statistics, by 2024 revenue, among China's comprehensive integrated supply chain logistics solution providers, JD LOGISTICS (02618.HK) and Sinotrans ranked first and second with 87.4 billion yuan and 31.7 billion yuan respectively, holding market shares of 2.8% and 1%.

Ande Smart Link's revenue of 16.3 billion yuan represents a 0.5% market share, ranking third with significant gaps from the top two but leading the fourth-place competitor by 2.1 billion yuan. This market has extremely low concentration, with the top five companies' combined market share only reaching 5.2%.

In the more narrowly defined China home appliance integrated supply chain logistics solutions market, Ande Smart Link leads with 11.2 billion yuan in revenue and a 27.1% market share in 2024. However, Ande Smart Link doesn't maintain significant distance from competitors in this segment, with the second-place (23.2%) and third-place JD Logistics (21%) trailing by only 4-6 percentage points.

From 2022 to 2024, Ande Smart Link's revenue grew from 14.2 billion yuan to 18.7 billion yuan, with net profit increasing from 220 million yuan to 380 million yuan, representing growth of 32% and 73% respectively.

**Major Customer Concentration**

In 2024, Ande Smart Link served 8,400 customers, with 2,388 having cooperation exceeding three years, more than doubling from 2022. Beyond home appliance companies, furniture, fast-moving consumer goods, automotive parts, and solar companies constitute major customer segments.

Ande Smart Link divides revenue into two main segments: integrated supply chain logistics solutions and basic logistics. In 2024, major customers contributing over 30 million yuan in annual revenue numbered 84, collectively contributing 11.05 billion yuan in revenue.

Major customers represent only 1.6% of the client base but contribute 59% of total revenue. However, excluding Midea Group, this proportion drops sharply to 18%.

**Midea Group's Dominant Contribution**

From 2022 to 2024, Midea Group consistently ranked as Ande Smart Link's largest customer, with transaction amounts of 5.34 billion yuan, 5.94 billion yuan, and 7.68 billion yuan, representing 38%, 37%, and 41% of Ande Smart Link's revenue respectively.

In 2024, Ande Smart Link earned 11.2 billion yuan from home appliance integrated supply chain logistics solutions, with Midea Group contributing 68.6%. In the first half of 2025, Midea Group contributed approximately 4.4 billion yuan in transaction volume, accounting for 40% of Ande Smart Link's revenue.

According to forecasts, from 2025 to 2027, the related party transaction ceiling between Midea Group and Ande Smart Link will increase from 9.35 billion yuan to 12.5 billion yuan, totaling nearly 32.9 billion yuan over three years.

Hisense Group's revenue contribution is also noteworthy. In June 2025, Ande Smart Link conducted a capital increase with Hisense Electronics subscribing for shares to become a shareholder. Before this investment, Hisense Group's 2024 related party transactions with Ande Smart Link totaled only 37 million yuan. Post-investment, this is expected to expand rapidly from 200 million yuan in 2025 to 1.8 billion yuan by 2027.

By 2027, Midea Group and Hisense Group are expected to contribute a combined 14.3 billion yuan in revenue.

**Business Model and Financial Performance**

Supply chain logistics consistently accounts for over 85% of Ande Smart Link's total revenue, growing from 12.164 billion yuan in 2022 to 16.343 billion yuan in 2024, a 34% increase over two years.

Ande Smart Link's supply chain logistics business subdivides into three segments: centralized warehousing and distribution, delivery and installation integration, and production logistics. Centralized warehousing and distribution accounts for nearly two-thirds of total revenue.

The delivery and installation integration business has grown faster, with revenue increasing 43% from 2022 to 2024, outpacing total revenue growth by 11 percentage points. It maintains the highest gross margin at 14.8% in 2024.

Ande Smart Link's comprehensive gross margin remains around 7%, with service costs accounting for 93% of revenue. The company operates with a light asset model, maintaining sustainable profitability. From 2022 to 2024, net profit increased from 215 million yuan to 380 million yuan, with net profit margin slightly increasing from 1.5% to 2%.

**Investment and Shareholding Structure**

Midea Group should be among domestic home appliance companies with the most equity incentive implementations. Ande Smart Link, as its first spin-off listed enterprise, had employee incentives arranged early.

In August 2021, Ande Smart Link implemented an employee shareholding plan, establishing multiple shareholding platforms including Ningbo Xunchi. By June 2025, Ande Smart Link's employee shareholding platforms collectively hold 13.15% of shares, while Midea Group's employee shareholding platforms collectively hold 6.39%, totaling 19.54%.

In June 2025, five investors including Hisense Electronics, Tianjin Shunhe, Zhongding Shengguan, Yinshan Zhineng, and Meike Qixin subscribed to 205.2 million newly issued shares at 9.259 yuan per share, investing a total of 1.9 billion yuan.

Hisense Group, Midea Group's longtime rival, invested 1.52 billion yuan through Hisense Electronics to subscribe for over 164 million shares, accounting for 22.03% of Ande Smart Link's post-increase share capital, securing the second-largest shareholder position.

Based on enterprise investigation statistics, across all shareholding platforms, there are 276 limited partners (with overlaps), averaging approximately 5 million yuan in shareholding market value per person.

The management team is led by Chairman and President Liang Pengfei, who has worked at Midea Group for nearly 20 years. All management members are born after 1975, in their prime years.

As a key executive of Midea Group, Liang Pengfei received total basic compensation of 25.65 million yuan from 2022 to 2024. He holds significant partnership shares across multiple platforms, collectively holding 24.96 million Ande Smart Link shares (3.35% stake), worth approximately 230 million yuan at 9.259 yuan per share.

Midea Group Chairman and President Fang Hongbo, while not holding any position at Ande Smart Link, holds the largest share (39.76%) in Ningbo Meiyue, indirectly holding 7.06 million Ande Smart Link shares (0.95%), worth approximately 65 million yuan. His greater wealth remains in direct Midea Group holdings of 117 million shares, valued at approximately 9 billion yuan.

Will Ande Smart Link's Hong Kong IPO bid prove more successful than Ririshun's terminated listing attempt in October 2024? The market will provide the answer.