On August 27, 2025, Midea Group (000333.SZ/00300.HK) announced that its controlling subsidiary, Andeshilian Supply Chain Technology Co., Ltd. (hereinafter referred to as "Andeshilian"), has formally submitted a listing application to The Stock Exchange of Hong Kong Limited (HKEX), planning to list on the Main Board of HKEX.

**Key Information:**

**Issuance Scale:** Andeshilian's initial public offering (IPO) of H shares will not exceed 20% of the total share capital after issuance (before exercising the over-allotment option). Underwriters may obtain an over-allotment option of up to 15% of the initial issuance scale for price stabilization purposes.

**Shareholding Structure:** After listing, Andeshilian will remain a controlling subsidiary of Midea Group, with Midea Group maintaining unchanged control.

**Progress and Subsequent Arrangements:** The spin-off listing still requires approval from China Securities Regulatory Commission, HKEX, and other relevant regulatory authorities, and has not yet been finalized. Midea Group plans to provide guaranteed allocation of Andeshilian H shares to eligible H-share shareholders, but A-share shareholders cannot participate due to legal and policy barriers.

**Joint Sponsors:** This IPO is sponsored jointly by China International Capital Corporation Limited (CICC) and Morgan Stanley.

**Background and Significance:** Andeshilian is a subsidiary of Midea Group specializing in integrated supply chain logistics solutions, with business covering production logistics, warehousing management, and last-mile delivery and installation services. This spin-off listing aims to unlock subsidiary value, broaden financing channels, and enhance independent operational capabilities. If successfully listed, Andeshilian will become another listed company within the Midea system, further strengthening Midea's strategic layout in the supply chain logistics sector.

**Business Analysis:**

**Core Business Operations:** Andeshilian provides "integrated supply chain logistics solutions" encompassing:

- Production Logistics: Assisting factories in efficiently managing component supply to ensure uninterrupted production lines, such as ensuring precise delivery of screws and chips needed for air conditioning assembly plants.

- Unified Warehousing and Distribution: Helping brand merchants consolidate inventory previously scattered across various dealer warehouses into Andeshilian's unified warehouse management system. Both online and offline store orders are fulfilled from a single warehouse, significantly reducing inventory backlog and transfer complications.

- Last-Mile Delivery and Installation Integration: Providing door-to-door delivery combined with installation, debugging, and after-sales services. When customers purchase air conditioners, technicians deliver and install them directly.

**Industry Position:** According to industry data, among the top 5 companies in China providing similar services, Andeshilian achieved the fastest revenue growth from 2022-2024. In the home appliance logistics sector, the company ranks first nationally and has obtained "5A-level Logistics Enterprise" certification, the highest rating in China's logistics industry.

**Corporate Development History:** - **2000**: Originally established as an internal logistics department within Midea Group - **2011**: Formally registered as an independent company while remaining under Midea Group's control - **2021**: Established employee shareholding platforms, enabling senior management and core employees to become shareholders - **June 2025**: Completed pre-IPO financing round, introducing external investors including: - Hisense Electronic Technology: A subsidiary of Hisense Group - Zhongding Capital and Yinshan Capital: Leading domestic logistics and supply chain investment institutions

**Pre-Listing Shareholding Structure:** - Midea Group (through subsidiary "Midea Smart Connection"): approximately 53% - Hisense: approximately 22% - Employee shareholding platforms: approximately 20% - Other institutional investors: remaining portion

**Financial Performance:** Revenue has shown consistent growth: RMB 14.17 billion (2022), RMB 16.22 billion (2023), RMB 18.66 billion (2024). The company maintained profitability with growing net profits (approximately RMB 380 million in 2024), continuing growth momentum in the first half of 2025.

**Management Team:**

**Executive Directors:** - **Liang Pengfei, Chairman and President (48 years old)**: Joined the group in July 2019 as Director, Chairman and President. Prior to joining, he worked at Midea Group for approximately 20 years from July 1999 to December 2018, serving in various departments including Smart Home, Industrial Technology, and President's Office. He accumulated extensive management experience in marketing, lean manufacturing, supply chain, human resources, and business transformation, participating deeply in Midea Group's business reforms including the "T+3" production-sales model and omni-channel "unified inventory" business transformation. He holds a Bachelor's degree in International Trade from Wuhan University of Technology (1999) and an MBA from China Europe International Business School (2019).

- **Ma Liang, CFO and Board Secretary (43 years old)**: Joined the group in December 2019 as CFO, appointed as Director in September 2020, and redesignated as Executive Director in August 2025. He also serves as Board Secretary and Joint Company Secretary. Previously worked at Midea Group for over 10 years from September 2007 to December 2019, serving as financial management head and Finance Department Director in various divisions including Home Air Conditioning Division and Central Research Institute. He holds a Bachelor's degree in Public Finance from Changchun Institute of Taxation (now Jilin University of Finance and Economics) (2007) and is currently pursuing an MBA at Tsinghua University since September 2024.

**Strategic Rationale for Listing:** - **Fundraising**: Public listing enables raising substantial capital for warehouse network expansion, technology development, and overseas business expansion - **Brand Enhancement**: Listed company status provides higher market reputation and attracts more major clients - **Value Realization**: Early investors and employee shareholders can realize or appreciate their equity value through public listing

**Key Characteristics:** - B2B Focus: Serves enterprise clients rather than individual consumers - Industry Expertise: Deep specialization in home appliances, FMCG, and other sectors with understanding of industry pain points - Strategic Independence: While originating from Midea, the company has attracted investment from competitors like Hisense, demonstrating market recognition of its capabilities - Strong Growth Trajectory: Positive revenue and profit performance data - Capital Market Readiness: Preparing for Hong Kong stock market fundraising to support continued development

**Midea Group's Capital Empire:** Through organic development and external acquisitions, Midea Group has built an extensive "Midea System" capital landscape. According to latest information, the He Xiangjian family and their controlled "Midea System" currently comprises 9 listed companies, with 1 additional company (Andeshilian) having formally submitted its listing application to HKEX.

**Midea's Capital Strategy Characteristics:** - **Dual Approach**: Combining "organic incubation" with "external acquisitions," including internally grown enterprises like Andeshilian and acquired listed companies - **Family-Centric**: He Xiangjian's children (such as He Jianfeng and He Qianchang) play important roles, controlling multiple listed companies - **B2B Business Independence**: Spinning off B2B businesses like Andeshilian for independent listing broadens financing channels, unlocks value, and incentivizes management teams

**Andeshilian IPO Perspective:** The key attraction of Andeshilian's IPO lies in demonstrating its independence. As a logistics enterprise incubated from Midea Group, its ability to prove effective service delivery to non-Midea clients (exemplified by recent strategic cooperation with Hisense) will be crucial for achieving higher market valuations.