(Yicai) Sept. 1 -- Midea Group achieved its best-ever performance in the first six months, thanks to its push into premium products and overseas markets. The Chinese home appliance giant also promoted 48-year-old Vice President Wang Jianguo to executive president as the company moves to refresh its leadership ranks with younger talent.

Both Midea’s net profit and revenue hit new highs for the period. Net profit soared 25 percent in the six months ended June 30 year on year to CNY26 billion (USD3.6 billion), while revenue jumped 16 percent to CNY252.3 billion (USD35.4 billion), according to the financial report released by the firm on Aug. 29.

At the same time as the release of the earnings report, Midea appointed Wang, who joined the Foshan-based company in 1999, as its executive president. Wang became vice president in 2017, overseeing international business and the smart home division. He also sits on the company's board of directors.

Wang has long been viewed as a potential successor to Midea's current Chairman and President Fang Hongbo. 58-year-old Fang took the helm from Midea's founder He Xiangjian in 2012. Earlier this year, Fang said that he is grooming the next generation of leadership.

Revenue from Midea's smart home business, which includes household appliances such as air conditioners, refrigerators and washing machines, surged 13 percent to CNY167.2 billion (USD23.4 billion) in the first half from a year earlier. Meanwhile, earnings from its commercial and industrial solutions segment, which includes new energy, smart buildings and robotics, soared 21 percent to CNY64.5 billion.

Overseas sales expanded 18 percent to CNY107.2 billion (USD15 billion), outpacing growth in its home market. As of June 30, the company had built 41 production bases abroad and its products were available in over 200 countries and regions. Midea also owns several foreign sub-brands, including Japan’s Toshiba and Italy’s Clivet. 

Domestic demand for home appliances picked up in the first half, thanks to the government’s trade-in subsidies that encourage consumers to replace old goods with new ones. But competition at home continues to intensify, while overseas the firm faces challenges such as trade protectionism, exchange rate fluctuations and geopolitical conflicts, Midea said.

To stay ahead of the competition, Midea is rolling out a premium brand strategy and is shifting to a direct-to-consumer sales model in China. It is also speeding up investment in local factories and supply chains in overseas markets, the company added.

Thanks to its strong performance, Midea announced its first-ever interim dividend. The firm plans to distribute a cash dividend of CNY5 (USD0.70) for every 10 shares, amounting to a total payout of CNY3.8 billion (USD532.9 million). 

Midea’s share price [SHE:000333] closed up 0.4 percent at CNY74.03 (USD10.38) today, giving the company a market capitalization of CNY568.2 billion (USD79.7 billion).

Editors: Dou Shicong, Kim Taylor