Produced by Leida Finance | Text by Ding Yu | Edited by Meng Shuai

Chinese Home Appliance Giant’s Air Conditioners Become Europe’s Summer Must-Have Amidst Scorching Heat!

Europe has recently been hit by frequent extreme heatwaves. Amidst the sweltering conditions, Midea’s “loophole-exploiting” portable split air conditioner has become a hot seller among Europeans. On secondhand platforms, prices for this model have soared from around 6,000 yuan to a peak of 30,000 yuan.

In response to the surge in sales, Midea’s official statement noted, “The heatwave has significantly boosted sales growth, especially for the PortaSplit air conditioner, which has sold out in some sales channels.”

It is reported that the PortaSplit air conditioner complies precisely with regulatory standards across European countries, perfectly meeting local cooling needs without requiring drilling, violating regulations, or hiring costly installation workers.

Behind the PortaSplit craze lies Midea’s long-term commitment to its globalization strategy. Last year, the company achieved overseas revenue of 195.948 billion yuan, a year-on-year increase of 15.92%, outpacing domestic market growth by 6.52 percentage points.

Meanwhile, Midea’s share of overseas revenue continued to rise, climbing from 41.52% in 2024 to 42.93% last year. This further optimized its revenue structure and underscored the success of its global expansion efforts.

However, as a global operator, Midea faced certain challenges in the first quarter of this year. The company’s other comprehensive income fell from -469 million yuan in the same period last year to -3.045 billion yuan, with financial income decreasing by 4.19 billion yuan year-on-year to -1.35 billion yuan.

Overall, in the first quarter, Midea reported operating revenue of 131.099 billion yuan, a year-on-year increase of 2.55%, and net profit attributable to shareholders of 12.675 billion yuan, a year-on-year increase of 2.03%. However, net profit excluding non-recurring gains declined by 14.02% year-on-year to 10.962 billion yuan.

Notably, in the recently released “2026 New Fortune 500 Richest List,” Midea’s founder, He Xiangjian, and his son, He Jianfeng, made the list with a combined fortune of 198.98 billion yuan.

Europe’s Scorching Heat Drives Midea’s “Loophole-Exploiting” Air Conditioners to Fly Off Shelves

Recently, a heatwave has swept across Europe, repeatedly breaking high-temperature records in many regions. A high-pressure system has continuously funneled hot air from North Africa into Europe, with temperatures in France, Germany, Italy, Spain, and elsewhere rising 5 to 12 degrees Celsius above seasonal averages.

Last week, temperatures exceeded 40°C in many parts of France, with Paris recording an outdoor temperature of 45°C on June 25. From noon on the 25th to noon on the 26th, three-quarters of France was under extreme heat red alerts.

Amidst the scorching conditions, easy-to-install portable split air conditioners from Chinese companies like Midea have become summer essentials, frenziedly snapped up by Europeans.

According to Yicai Global, an Austrian consumer said on social media that Midea’s PortaSplit is nearly sold out everywhere in the EU. Another German consumer noted that every air conditioning unit is sold out, with Chinese portable split air conditioners out of stock within a 100-kilometer radius.

It is reported that PortaSplit is a custom air conditioner model designed by Midea specifically for Europe, priced at 900 euros (approximately 6,000 yuan) for the cooling-only version and 1,200 euros (approximately 9,000 yuan) for the heating and cooling version.

Despite not being budget-friendly, after selling out, PortaSplit is still being resold on secondhand platforms by European scalpers at 3 to 5 times the original price, with a cooling-only version originally priced around 6,000 yuan being resold for nearly 30,000 yuan at its peak.

The booming sales of PortaSplit, where it is “hard to find a single unit” locally, is mainly attributed to its precise alignment with regulations across European countries.

In Spain, installing an external outdoor unit requires altering the facade, which must be approved by a three-fifths vote of all building owners. Italy mandates that air conditioners must be installed by certified professionals, with fines of up to 100,000 euros for unauthorized installations.

PortaSplit’s outdoor unit is fixed via a window bracket, requiring no tools or drilling, and is legally defined as an “internal appliance placed on a shelf,” cleverly bypassing the facade alteration ban.

Additionally, France mandates that equipment with more than 2kg of refrigerant must be inspected by a specialist; Germany strictly requires nighttime noise levels not to exceed 35 decibels; Switzerland mandates an energy efficiency rating of no lower than A++.

In response, Midea precisely designed PortaSplit’s refrigerant capacity at 1.99kg, developed a silent mode to control operating noise at 35 decibels, and achieved an energy efficiency ratio (SEER) of 6.1, just hitting the lower limit of Switzerland’s A++ range (6.1-8.5).

Leida Finance noted that on its overseas website, Midea claims that PortaSplit requires no installation procedures, tools, or drilling, and can be easily applied to various installation scenarios, including ordinary windows, skylights, French windows, balcony doors, and camper van windows.

In its 2024 semi-annual report, Midea also mentioned that in the first half of 2024, the company launched the industry’s first user-DIY-installable PortaSplit portable split air conditioner for the European market. Through a lightweight, small outdoor unit pre-connected at the factory and an innovative, self-developed multi-scenario adaptive installation bracket, it achieved three-step rapid installation, saving thousands of euros in installation fees.

According to Yicai Global, on June 26, a Midea air conditioner representative stated that Midea’s air conditioner factory in Shunde is working overtime to replenish production of this portable split air conditioner, which will be transported via the China-Europe Railway Express to meet some of the demand during Europe’s peak summer season.

Midea’s overseas air conditioner business leader revealed that this year, the company has seen strong sales growth in air conditioners in some Western European countries, with markets like France, Spain, Germany, and the UK, which have lower air conditioner penetration rates, achieving year-on-year increases of over 70%. However, overall inventory levels and weather conditions in Eastern Europe do not support high growth.

The aforementioned leader also pointed out that air conditioner installation fees are exorbitant in Western Europe, costing 1,500-2,000 euros per unit, with summer installation wait times exceeding two months. Therefore, they are focusing on easy-to-install portable split air conditioners to address the pain points of difficult outdoor installations in European old apartments and detached houses. While its price is higher than ordinary portable air conditioners, its comprehensive cost is cheaper than split air conditioners (including installation fees).

Last Year’s Overseas Growth Outpaced Domestic, Though Q1 Net Profit Excluding Non-Recurring Gains Declined

Tianyancha shows that Midea Group Co., Ltd. was registered and established in 2000. As a globally leading technology group, Midea’s current business portfolio covers smart homes, industrial technology, building technology, robotics and automation, new energy, healthcare, smart logistics, and other sectors.

Financial reports show that in 2025, Midea Group achieved operating revenue of 456.452 billion yuan, a year-on-year increase of 12.11%, and net profit attributable to shareholders of 43.945 billion yuan, a year-on-year increase of 14.03%.

By business segment, in 2025, the company’s smart home business achieved revenue of 299.927 billion yuan, a year-on-year increase of 11.28%, accounting for 65.71% of revenue, making it the company’s pillar business.

By region, in 2025, the company’s overseas business growth significantly outpaced domestic growth. Last year, Midea achieved revenue of 260.504 billion yuan domestically and 195.948 billion yuan overseas, with year-on-year increases of 9.4% and 15.92%, respectively.

Meanwhile, Midea’s overseas revenue share continued to rise, climbing from 41.52% in 2024 to 42.93% last year, further narrowing the gap with domestic business.

However, entering 2026, Midea Group’s performance growth has slowed. In the first quarter, the company achieved operating revenue of 131.099 billion yuan, a year-on-year increase of 2.55%, and recorded net profit attributable to shareholders of 12.675 billion yuan, a year-on-year increase of 2.03%. However, the company’s net profit excluding non-recurring gains declined by 14.02% year-on-year to 10.962 billion yuan.

Financial reports show that in the first quarter, Midea Group’s other comprehensive income decreased from -469 million yuan in the same period last year to -3.045 billion yuan, mainly due to changes in foreign currency statement translation.

Meanwhile, Midea Group’s financial income decreased by 4.19 billion yuan year-on-year to -1.35 billion yuan this quarter, mainly due to changes in exchange gains and losses.

Additionally, in the first quarter, the company’s payroll payables were 5.656 billion yuan, a year-on-year decrease of 41.36%. During the same period, the company’s R&D expenses also saw a rare contraction, falling from 4.348 billion yuan in the first quarter of last year to 4.166 billion yuan, a year-on-year decrease of 4.19%.

Midea Ramps Up Overseas Layout with Heavy Investments in Acquisitions

Leida Finance learned from the annual report that Midea considers itself a globally operating company. Currently, Midea has over 600 subsidiaries, 41 R&D centers, and 65 major manufacturing bases worldwide, employing over 190,000 people and operating in more than 200 countries and regions.

Meanwhile, Midea has 29 R&D centers and 43 major manufacturing bases overseas, spread across more than 20 countries and regions.

In 2025, centered around its global breakthrough strategy, the number of countries/regions covered by Midea’s overseas self-operated branches increased from 27 in 2024 to 50, effectively supporting the rapid growth of the company’s overseas own-brand (OBM) business.

In 2025, the company’s OBM business revenue reached over 45% of smart home business revenue overseas.

As a key part of the group’s strategy to expand its smart home business overseas, last April, Midea invested approximately 213 million euros to successfully complete the acquisition of Germany’s home appliance manufacturer Teka Group (excluding Teka’s Russian subsidiary).

It is reported that Teka Group currently operates in over 120 countries across five continents, holding significant market positions in Spain, Portugal, Mexico, Chile, Thailand, Turkey, Germany, the UAE, and Northern Europe. The group produces millions of units annually, with 10 production bases in Europe, Asia, and the Americas, and nearly 3,000 employees.

Midea stated in its annual report that through the acquisition of Teka, the company has achieved deep synergy in resources for home appliance product R&D, manufacturing, sales, and channels, fully advancing the “In Europe, for Europe” strategy across the entire value chain.

Through systematic integration and leveraging Teka’s superior resources, Midea continues to drive cross-selling across multiple brands and categories, fueling double-digit high-speed revenue growth in the European region.

In addition to Teka, last February, Midea also completed the acquisition of Arbonia Climate for 542 million euros, strategically expanding its HVAC business.

It is reported that Arbonia Climate is a company specializing in indoor climate system solutions, headquartered in Switzerland, with business scope covering heating, cooling, ventilation equipment, and energy storage systems.

Arbonia Climate boasts numerous brands, including system brands like KERMI, PROLUX, SABIANA, and VASCO, as well as product brands like arbonia, Britec, Brugman, Cicsa, PZP, Solius, Superia, Tecna, and Termovent.

Subsequently, Midea merged Italy’s Clivet air conditioner business with the newly acquired Arbonia Climate to form MBT Climate. Last July, the MBT Climate R&D center officially opened in Italy, aiming to become an international R&D benchmark in the HVAC field.

Leida Finance will continue to monitor Midea Group’s subsequent developments.