GREE(SZ:000651)2017-04-26 16:00Financial Performance - The total operating revenue for 2016 was CNY 108.30 billion, representing a 10.80% increase compared to CNY 97.75 billion in 2015[17]. - The net profit attributable to shareholders for 2016 was CNY 15.42 billion, an increase of 23.05% from CNY 12.53 billion in 2015[17]. - The net profit after deducting non-recurring gains and losses was CNY 15.60 billion, up 26.69% from CNY 12.31 billion in 2015[17]. - The basic earnings per share for 2016 was CNY 2.56, a 23.08% increase from CNY 2.08 in 2015[17]. - The total assets at the end of 2016 were CNY 182.37 billion, a 12.78% increase from CNY 161.70 billion at the end of 2015[17]. - The net assets attributable to shareholders at the end of 2016 were CNY 53.86 billion, up 13.35% from CNY 47.52 billion at the end of 2015[17]. - The net cash flow from operating activities for 2016 was CNY 14.86 billion, a decrease of 66.52% from CNY 44.38 billion in 2015[17]. - The weighted average return on equity for 2016 was 30.41%, an increase of 3.10% from 27.31% in 2015[17]. - The company plans to distribute a cash dividend of CNY 18 per 10 shares, based on a total of 6,015,730,878 shares[5]. Market Position - Gree's home air conditioner market share reached 42.73% in 2016, maintaining its position as the leader in the Chinese air conditioning industry for 22 consecutive years[27]. - Gree's commercial air conditioner market share was 16.2% in 2016, also ranking first for five consecutive years[27]. - The total sales of home air conditioners in China decreased by 3.64% year-on-year in 2016, totaling 60.49 million units[28]. - Gree's annual production capacity for home air conditioners exceeds 60 million units, making it the largest in the world[35]. - Gree Electric achieved a total revenue of 110.1 billion yuan in 2016, representing a 9.5% increase compared to the previous year[48]. - User data indicated that Gree's air conditioning products maintained a market share of 30% in China, solidifying its position as the market leader[185]. Research and Development - Gree Electric's R&D investment exceeded 4 billion yuan annually, with a total of over 27,000 technology patents applied, including more than 10,000 invention patents[38]. - The company has developed 15 internationally leading core technologies, including the innovative photovoltaic air conditioning system[38]. - Gree Electric's patented technology for "high-efficiency permanent magnet synchronous variable frequency centrifugal ice storage dual-condition unit" was identified as internationally leading[48]. - The company launched multiple new energy-efficient inverter air conditioners, with the "Energy Efficiency Leader - Run Series" receiving excellent market feedback[52]. - Gree plans to invest CNY 5 billion in R&D for new energy-efficient technologies over the next three years[186]. Operational Efficiency - Gree Electric's production efficiency improved by 10.5% in 2016, with a direct efficiency increase of 4,294 personnel[42]. - The company achieved a cost reduction of approximately 387 million yuan through new process development, quality inspection optimization, and production line arrangement optimization[51]. - Gree's operational efficiency improved, with a reduction in production costs by 8% due to automation and process optimization[186]. - The company has established a comprehensive management system within its manufacturing system, enhancing its operational efficiency and management capabilities[51]. Sustainability and Corporate Responsibility - The company established a sustainable development strategy focusing on resource recycling and green manufacturing, achieving certification for its four bases in June 2016[62]. - Gree's commitment to sustainability includes plans to reduce carbon emissions by 25% by 2020 through innovative manufacturing practices[186]. - The company provided assistance to 238 employees in need, with a total amount of 1,687,000 RMB allocated for support[155]. - The company’s environmental protection expenditure for the year was 2,840,000 RMB[157]. - The company is not classified as a key pollutant discharge unit by environmental protection authorities[157]. Talent Development - The company implemented a talent development strategy, including skills assessment for 408 technical workers across 16 job categories[72]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 2,060.51 million RMB[190]. - The company has established a standardized salary management system to ensure employees receive fair compensation[192]. - The company aims to create a talent retention and motivation mechanism through various training and development initiatives[194]. - The company trained a total of 45,000 personnel through the "Zhenpin Journey, Building the Future" technical training camp in 2016[196]. Shareholder Information - The company distributed a cash dividend of 15.00 CNY per 10 shares for the 2015 fiscal year, totaling 9,023,596,317 CNY[124]. - For the 2016 fiscal year, the proposed cash dividend is 18.00 CNY per 10 shares, amounting to 10,828,315,580.40 CNY, pending shareholder approval[125]. - The cash dividend for 2016 represents 70.22% of the net profit attributable to ordinary shareholders, which is 15,420,964,990.94 CNY[128]. - The controlling shareholder of Gree Electric Appliances is Zhuhai Gree Group Co., Ltd., holding 18.22% of shares, with 1,096,255,624 shares frozen[165]. Governance and Management - The company maintained a fully independent governance structure, ensuring separation from its controlling shareholder in various aspects[199]. - The company has appointed several independent directors with extensive experience in finance and management, enhancing its governance structure[184]. - The management team is focused on innovation and technology development, which is crucial for maintaining competitive advantage in the market[177]. - The company has maintained a stable leadership structure, with key executives holding their positions since at least 2012[176]. Financial Management - The company has implemented risk management measures to mitigate price fluctuations and enhance operational efficiency through hedging activities[102]. - The total financial liabilities at the end of the reporting period were ¥1.19 billion, with a significant portion being accounted for by changes in fair value[97]. - The company’s derivative financial assets were valued at ¥250.85 million, indicating active management of financial instruments[99]. - The overall financial asset investment strategy appears to be conservative, with a focus on maintaining liquidity and minimizing risk exposure[100].