Midea Group Co. Ltd.

Strong market position and an extensive distribution network in China. Good profitability and operating efficiency. Operations in the highly competitive home appliances retail market in China. Lower brand awareness than global peers in overseas markets. No debt on an adjusted basis. Strong positive free operating cash flow. Large surplus cash offsets impact of acquisitions on credit ratios. The stable outlook reflects our expectation that Midea Group Co. Ltd. will maintain its strong market position in China's home appliances industry over the next 24 months and effectively integrate recent acquisitions within its operations. We also expect the company to remain debt free on an adjusted basis and generate positive free operating cash flows based on its strong profitability, good working capital

...Outlook: Stable The stable outlook reflects our expectation that Midea Group Co. Ltd. will maintain its strong market position in China's home appliances industry over the next 24 months and effectively integrate recent acquisitions within its operations. We also expect the company to remain debt free on an adjusted basis and generate positive free operating cash flows based on its strong profitability, good working capital efficiency, and disciplined financial management....

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