This paper empirically examines the impact of digital transformation on the financial performance of manufacturing enterprises, using Midea Group as a case study. Based on financial data from 2010 to 2024, vertical and horizontal comparative analyses reveal that digital transformation significantly improved Midea’s profitability, asset utilization efficiency, short-term solvency, and operational cycle. Key strategies include: restructuring IT systems through the “632 Project” to reduce costs and enhance efficiency, optimizing supply chains and production processes via the “Dual Intelligence Strategy” and C2M model, expanding online sales channels through digital marketing, and increasing R&D investment to strengthen product competitiveness. The paper also highlights that digital transformation’s effects exhibit a time lag, with initial high investments causing financial fluctuations but ultimately driving long-term value growth. This research provides practical insights for the home appliance industry and other traditional manufacturers, emphasizing the need for tailored digital strategies to achieve sustainable development. 

Shiyu Mei. Digital Transformation and Corporate Financial Performance: Empirical Evidence from Chinese Manufacturing Firms. Academic Journal of Business & Management (2025), Vol. 7, Issue 8: 89-103. https://doi.org/10.25236/AJBM.2025.070812.

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