GREE(SZ:000651)2016-04-28 16:00Financial Performance - The total operating revenue for 2015 was ¥97,745,137,194.16, a decrease of 29.04% compared to ¥137,750,358,395.70 in 2014[16] - The net profit attributable to shareholders was ¥12,532,442,817.66, down 11.46% from ¥14,155,167,229.36 in the previous year[16] - The basic earnings per share decreased to ¥2.08, down 11.49% from ¥2.35 in 2014[16] - In 2015, the company achieved total revenue of CNY 100.564 billion, a decrease of 28.17% compared to the previous year[45] - The net profit attributable to shareholders was CNY 12.532 billion, down 11.46% year-on-year, but the net profit margin increased from 10.18% in 2014 to 12.55%, an increase of 2.37 percentage points[45] - Gree Electric's total revenue for the reporting period reached approximately CNY 66.69 billion, with a net profit of CNY 5.92 billion, reflecting a year-on-year increase of 7.5% in revenue and 8.3% in net profit[89] - Gree Electric Appliances reported a revenue of CNY 150 billion for the year 2015, representing a year-on-year growth of 10%[165] - The company achieved a net profit of CNY 20 billion in 2015, an increase of 15% compared to the previous year[165] Cash Flow and Assets - The net cash flow from operating activities increased significantly by 134.32% to ¥44,378,381,827.68 from ¥18,939,165,507.73 in 2014[16] - The total assets at the end of 2015 were ¥161,698,016,315.06, reflecting a 3.50% increase from ¥156,230,948,479.88 in 2014[16] - The cash and cash equivalents increased by 137.65% to ¥33,858,545,732.13, compared to ¥14,247,288,049.48 in the previous year[73] - The proportion of cash and cash equivalents to total assets rose significantly from 34.91% in 2014 to 54.93% in 2015, reflecting a 20.02% increase[75] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥15 per 10 shares, totaling approximately ¥9,023,596,000 based on the total share capital[4] - In 2015, the company distributed a cash dividend of 30.00 CNY per 10 shares, totaling 9,023,596,317 CNY, which represents 72.00% of the net profit attributable to shareholders[96][100] - The company has maintained a consistent cash dividend policy, with a minimum distribution ratio of 40% during its mature development stage[100] Market Performance and Sales - The domestic production of household air conditioners in 2015 was 10.385 million units, a decrease of 12% year-on-year, while total sales reached 10.66 million units, down 8.6%[27] - The company achieved significant sales on e-commerce platforms, with nearly 50% market share on Tmall for air conditioning products in 2015[59] - The air conditioning segment generated ¥83.72 billion, accounting for 85.65% of total revenue, with a slight decline of 0.53% year-over-year[62] Research and Development - The company’s R&D efforts have led to the development of several internationally leading products, including a magnetic levitation variable frequency centrifugal compressor[26] - The company has set up five subsidiaries and seven research institutes, with nearly 700 laboratories, enhancing its research and development capabilities[36] - The company invested significantly in R&D, leading to the launch of innovative products such as the Gree Art Era wall-mounted air conditioner, which received 11 patents and features a customizable panel[47] - Gree plans to invest CNY 5 billion in research and development for new energy-efficient technologies over the next three years[165] Strategic Initiatives and Partnerships - The company’s strategic partnership with China Aerospace Science and Industry Corporation aims to leverage mutual strengths for collaborative growth[33] - The company is expanding its production capabilities with the establishment of a new smart appliance manufacturing base in Hangzhou, focusing on both household and commercial air conditioning[33] - Gree Electric aims to enhance its product development in the HVAC sector, focusing on energy-efficient and environmentally friendly technologies, with a commitment to innovation and smart home integration[90] Corporate Governance and Management - The company maintained a robust corporate governance structure, ensuring independence from its controlling shareholder[183] - The audit committee reviewed the financial statements and confirmed they accurately reflect the company's financial position as of December 31, 2015[190] - The company has a strong commitment to corporate governance, with independent directors actively involved in oversight[142] Employee Development and Training - The company provided training to over 470,000 participants in 2015, conducting more than 12,000 training sessions with a total of nearly 1.3 million training hours[176] - The company emphasizes a dual-track career development mechanism to attract, retain, and motivate talent[174] - The company trained over 1,000 university mentors to support the development of new employees[177] Challenges and Risks - The company anticipates risks from macroeconomic fluctuations and policy adjustments that may impact consumer demand and production costs[91] - Gree Electric faces increasing competition in the home appliance market, particularly from new technologies and materials, which may challenge its market position[91] - The company is also exposed to risks related to the volatility of raw material prices and foreign exchange rates, which could affect its profitability[91]