GREE(SZ:000651)2016-08-18 16:00Financial Performance - The company achieved operating revenue of CNY 49.18 billion, a decrease of 1.85% compared to the same period last year[20]. - The net profit attributable to shareholders reached CNY 6.40 billion, an increase of 11.92% year-on-year[20]. - The net profit excluding non-recurring gains and losses was CNY 7.05 billion, reflecting a growth of 35.32% compared to the previous year[20]. - The net cash flow from operating activities was CNY 11.45 billion, down 61.50% from the same period last year[20]. - The total assets at the end of the reporting period amounted to CNY 172.09 billion, an increase of 6.43% from the end of the previous year[20]. - The net assets attributable to shareholders decreased by 5.49% to CNY 44.91 billion compared to the end of the previous year[20]. - The basic earnings per share increased by 11.58% to CNY 1.06 per share[20]. - The weighted average return on equity rose to 12.62%, up 0.52% from the previous year[20]. - The company's revenue for the reporting period was approximately ¥49.18 billion, a decrease of 1.85% compared to the previous year[34]. - Gree's operating costs decreased by 12.23% to approximately ¥31.63 billion, contributing to improved profitability[34]. - Sales expenses increased by 48.76% to approximately ¥9.43 billion, primarily due to intensified promotional efforts[34]. Market Position and Product Development - Gree Electric maintained a leading position in the air conditioning industry with a global market share of 23.1%, shipping over 170 million units[28]. - Gree launched the TOSOT brand's IH rice cooker, which utilizes IH electromagnetic heating technology, receiving positive consumer feedback[29]. - The company is actively pursuing the acquisition of Zhuhai Yinlong New Energy Co., Ltd. to enhance its capabilities in the electric vehicle and energy storage sectors[32]. - Gree's air conditioning segment generated approximately ¥41.98 billion in revenue, with a slight decrease of 0.02% year-over-year[36]. - The company established multiple new TOSOT sales companies across various regions to enhance market penetration and online sales integration[29]. - The company plans to focus on new product development and market expansion strategies to enhance future growth prospects[106]. Financial Management and Investments - The company's derivative investment losses for the reporting period amounted to -35.60 million CNY from futures hedging contracts and -1,309.76 million CNY from forward foreign exchange contracts[46]. - The company has implemented risk management measures for derivative investments, including strict compliance with legal regulations and internal control systems[46]. - Gree Electric has established a hedging strategy to mitigate risks associated with raw material price fluctuations and foreign exchange rate volatility[46]. - The company has not engaged in any entrusted loans during the reporting period[47]. - There were no fundraising activities reported during the period[48]. - Gree Electric Appliances has not engaged in any major non-public fundraising investment projects during the reporting period[52]. - The company did not acquire or sell any assets, nor did it undergo any corporate mergers during the reporting period[61][62][63]. Shareholder Information - The company has 351,476 total common shareholders at the end of the reporting period[86]. - The largest shareholder, Zhuhai Gree Group Co., Ltd., holds 18.22% of the shares, totaling 1,096,255,624 shares, with 928,147,500 shares frozen[87]. - The second-largest shareholder, Hebei Jinghai Guarantee Investment Co., Ltd., holds 8.91% of the shares, totaling 536,062,033 shares[87]. - The company has not issued any new shares or conducted any significant share buybacks during the reporting period[86]. - The total number of shares outstanding remains at 6,015,730,878[86]. - The company has not faced any penalties or compliance issues during the reporting period[80]. Compliance and Governance - Gree Electric Appliances has maintained compliance with corporate governance requirements as per the Company Law and regulations from the China Securities Regulatory Commission[58]. - The company has not initiated any stock incentive plans during the reporting period[64]. - No major changes in operating performance are expected for the period from January to September 2016 compared to the previous year[53]. - Gree Electric Appliances has engaged with various institutional investors and asset management firms during the reporting period to discuss company strategies and performance[54][55]. Cash Flow and Liquidity - The company's cash and cash equivalents amounted to RMB 99.42 billion, up from RMB 88.82 billion, indicating a growth of about 11.5%[99]. - Accounts receivable increased significantly to RMB 5.91 billion from RMB 2.88 billion, representing a growth of approximately 105.5%[99]. - Inventory decreased to RMB 5.56 billion from RMB 9.47 billion, showing a reduction of about 41.5%[99]. - Current liabilities totaled RMB 125.61 billion, compared to RMB 112.63 billion at the beginning of the period, marking an increase of approximately 11.5%[100]. - The company reported a significant increase in prepayments, which rose to RMB 2.17 billion from RMB 847.93 million, a growth of approximately 156.5%[99]. - The non-current assets totaled RMB 45.48 billion, up from RMB 40.75 billion, indicating an increase of about 11.5%[100]. Accounting and Financial Reporting - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance[133]. - The company assesses its ability to continue as a going concern and finds no significant factors that would impact its ongoing operations in the next 12 months[134]. - The accounting period for the company is from January 1 to December 31 each year, with mid-term periods including semi-annual, quarterly, and monthly[137]. - The company uses Renminbi as its functional currency for accounting purposes[139]. - The company follows specific accounting treatments for business combinations, distinguishing between those under common control and those not under common control[140][143]. Inventory and Receivables Management - Inventory is classified into three categories: raw materials, work in progress, and finished goods[185]. - The company applies a perpetual inventory system for stock management[188]. - For inventory valuation, the lower of cost and net realizable value is used, with provisions for inventory write-downs recognized in the current period[187]. - The company assesses the recoverability of receivables based on future cash flow projections when significant differences in collectability exist[184].