GREE(SZ:000651)2018-05-07 16:00Financial Performance - Gree Electric Appliances reported a revenue of CNY 148.29 billion in 2017, representing a 36.92% increase compared to CNY 108.30 billion in 2016[17]. - The net profit attributable to shareholders was CNY 22.40 billion, up 44.87% from CNY 15.42 billion in the previous year[17]. - The net profit excluding non-recurring gains and losses was CNY 21.17 billion, reflecting a 35.33% increase from CNY 15.60 billion in 2016[17]. - The operating cash flow for the year was CNY 16.36 billion, a 10.08% increase from CNY 14.86 billion in 2016[17]. - Basic earnings per share rose to CNY 3.72, a 44.75% increase from CNY 2.56 in 2016[17]. - Total operating revenue for 2017 reached ¥148.29 billion, a year-on-year increase of 36.92% from ¥108.30 billion in 2016[64]. - The company achieved a net profit of CNY 25 billion in 2017, representing a growth of 10% compared to the previous year[175]. - Gree Electric Appliances reported a significant increase in revenue, reaching CNY 150 billion, representing a year-on-year growth of 10%[176]. - The company reported a net profit of CNY 20 billion, which is a 15% increase compared to the previous year[177]. Market Position and Sales - The company has maintained its position as the leading manufacturer of household air conditioners in China for 23 consecutive years, with a market share of 28.7% in 2017[28]. - In 2017, Gree's domestic air conditioner sales reached 88.75 million units, representing a year-on-year growth of 46.8%[29]. - Gree's market share in the air conditioning segment reached 40% in 2017, solidifying its position as the market leader[175]. - Gree's commercial air conditioning sales continued to grow, maintaining a 1st place market share in China's central air conditioning sector for six consecutive years[48]. - Gree's overseas sales saw over 20% growth in self-owned brand sales in 2017, driven by a strategy of brand building and market expansion[49]. - E-commerce sales for Gree's products increased by 140% year-on-year in 2017, with air conditioning sales ranking first on JD.com[50]. Research and Development - Gree Electric has invested heavily in R&D, with over 35,000 technology patents filed, including more than 15,000 invention patents[34]. - The company plans to invest CNY 5 billion in R&D for new energy-efficient technologies over the next three years[175]. - The number of R&D personnel rose by 18.45% to 9,155, while the proportion of R&D personnel slightly decreased to 10.74%[79]. - Gree Electric achieved a significant milestone with 1,273 invention patents authorized in 2017, ranking seventh in China's patent authorization list[46]. - The company emphasizes the integration of new materials and processes in its research and development efforts[101]. Product Development and Innovation - Gree Electric's new high-efficiency air-cooled screw unit has been successfully implemented in major projects, receiving positive feedback from clients[44]. - The company developed a distributed air supply heat pump air conditioning system that can save over 19.8% energy, enhancing user comfort with improved airflow distribution[43]. - Gree has launched a new line of smart home appliances, contributing to a projected revenue increase of 8% in the next fiscal year[175]. - Gree Electric's new TOSOT air purifier features dual intelligent air sensing technology for real-time air quality monitoring[45]. - The company is actively expanding into smart equipment, smart home, and renewable energy sectors while focusing on innovation and efficiency[42]. Financial Management and Investments - The company maintains a robust cash flow and strong financial management, ensuring sustainable development despite industry challenges[39]. - Research and development investment increased by 24.69% to ¥57.67 billion, while total revenue rose by 36.92% to ¥1,482.86 billion[79]. - The company implemented a T9 management system to enhance quality control, resulting in a significant reduction in after-sales failure rates over the past decade[58]. - The company has established management measures for derivative investments to control risks, including legal, operational, and market risks[91]. - The company plans significant capital expenditures for capacity expansion and diversification, focusing on smart factories and new technologies such as smart appliances and integrated circuits[116]. Corporate Governance and Social Responsibility - The company maintains a robust corporate governance structure in compliance with the Company Law and Securities Law, ensuring effective decision-making and supervision[196]. - The company actively fulfilled its social responsibilities, promoting green and low-carbon development[144]. - The company is committed to sustainability, with plans to reduce carbon emissions by 30% by 2025 through innovative manufacturing processes[175]. - The company emphasizes quality control by establishing higher internal standards than national and international requirements, ensuring product quality throughout the production process[105]. Shareholder Information - The company did not distribute cash dividends or bonus shares for the year[6]. - The company implemented a cash dividend policy in 2016, distributing 18.00 CNY per 10 shares, totaling 10,828,315,580.40 CNY[112]. - In 2017, the company did not propose any cash dividend distribution despite a positive profit for ordinary shareholders, aiming to maintain financial stability[115]. - The total number of shares remained at 6,015,730,878 with no changes in the overall share structure[152]. - The largest shareholder, Zhuhai Gree Group, holds 18.22% of the shares, amounting to 1,096,255,624 shares, which are currently frozen[154]. Employee Development and Training - The total number of employees in the company is 85,222, with 26,529 in the parent company and 58,693 in major subsidiaries[185]. - The company has established a comprehensive training mechanism for after-sales personnel, focusing on technical skills and quality improvement[192]. - The company trained 1,200 specialized skill talents in areas such as robot integration and equipment maintenance in 2017[190]. - The company emphasizes continuous learning, with 47,000 video course views and 170,000 system exam participants on the Gree mobile app[191]. - The company has developed various information technology learning systems, such as the Gree Smart Learning Management System and Gree Mobile Library, to enhance training management and promote continuous development[193].