After holding shares for ten years, Midea Group liquidates Xiaomi Technology.

Midea Group Limited (Midea Group) released its financial report for the year 2024, showing that the group has completely divested its shares in Xiaomi Technology Co., Ltd. (Xiaomi), realizing a total of nearly 2 billion yuan. This news made it to the top of Baidu’s trending searches on March 31 and sparked discussions.

According to the annual report announced by Midea Group on the evening of March 28, the group fully cleared its holding of Xiaomi Technology shares in 2024.

As reported by Red Star News on March 30, Midea Group has been holding shares in Xiaomi Technology since 2015, close to a decade. Starting in 2020, Midea Group began choosing to sell off its Xiaomi Technology shares. Specifically, in 2020, Midea Group cashed out 876 million yuan of Xiaomi Technology shares; there were no relevant operations in 2021 and 2022; in 2023, the sale of Xiaomi shares amounted to 59.18 million yuan; in 2024, over 900 million yuan worth of Xiaomi Technology shares were sold off, leading to a complete divestment and a total cash realization of nearly 2 billion yuan.

Regarding Midea Group’s divestment of Xiaomi Technology shares, Fenghui Yu, a consultant at the Top 100 Hong Kong Stock Research Center, told First Financial that Midea Group’s clearing of Xiaomi Technology shares in 2024 reflects a reassessment and adjustment of its investment portfolio. On one hand, it may be driven by considerations of liquidity or the belief that Xiaomi’s share price has reached its target price, prompting profit-taking. On the other hand, as Xiaomi is actively expanding into the home appliance sector, becoming a direct competitor to Midea, selling shares can also be seen as a strategic move to reduce potential conflicts of interest.

Hu Kunchao, an investment manager at Cheese Fund, remarked that Midea’s investment in Xiaomi was primarily financial. With Xiaomi’s stock price continuously rising, selling off Xiaomi shares to lock in profits is a normal capital operation. Midea Group may have sold off shares from a risk diversification perspective to mitigate potential investment risks or as part of adjusting its business strategy.

In response to this news, netizen “Dream of Wutong Falling in a Dream” commented: “Complete divestment indicates a lack of confidence in Xiaomi anymore?!”

“Mifan Buddha-self-transmigration” said: “Xiaomi should also be divested of now. Raising stock prices is just a means to raise funds. Intelligence doesn’t necessarily mean no brains.”

“EDBM30241” expressed: “Midea finally let go. Apart from financial considerations, market overlap leading to strategic conflicts is also a reason. The competition in the home appliance market will be interesting to watch in the future.”