GREE(SZ:000651)2018-08-17 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 reached CNY 22.40 billion, marking a 44.87% increase from CNY 15.42 billion in the previous year[17]. - The net profit after deducting non-recurring gains and losses was CNY 21.17 billion, up 35.33% from CNY 15.60 billion in 2016[17]. - The operating cash flow for the year was CNY 16.36 billion, reflecting a 10.08% increase from CNY 14.86 billion in 2016[17]. - Basic and diluted earnings per share increased to CNY 3.72, a rise of 44.75% from CNY 2.56 in 2016[17]. - Total operating revenue for 2017 reached ¥148.29 billion, a 36.92% increase from ¥108.30 billion in 2016[64]. - The company achieved a net profit of 5.95 billion RMB in 2017, reflecting a growth of 25% compared to the previous year[171]. - Gree Electric Appliances reported a total revenue of 61.38 billion RMB for the year 2017, marking a year-on-year increase of 17%[171]. - Gree Electric Appliances reported a revenue of CNY 150 billion for the fiscal year 2017, representing a year-on-year growth of 10%[185]. - The company achieved a net profit of CNY 20 billion, an increase of 15% compared to the previous year[186]. Market Position and Strategy - The company has over 3 billion users globally and has maintained the leading position in China's air conditioning market for 23 consecutive years, with a market share of 31% in 2017[28]. - Gree Electric's air conditioning customer satisfaction score was 85, maintaining the highest score in the industry for seven consecutive years[32]. - Gree's overseas sales saw over 20% growth in 2017, driven by a strategy focused on brand building, market development, and channel management[49]. - Gree Electric aims to enhance its international market share, particularly in Europe and North America, with a projected growth rate of 15% in these regions for 2018[171]. - Gree Electric aims to deepen its presence in domestic markets, particularly in lower-tier cities, while enhancing its overseas brand influence[99]. - Gree's strategic focus includes enhancing supply chain efficiency, aiming for a 15% reduction in logistics costs by 2019[183]. 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, ranking seventh in China for invention patent grants in 2017[34]. - Research and development investment increased by 24.69% to ¥57.67 billion, while operating revenue rose by 36.92% to ¥1,482.86 billion[79]. - Gree Electric plans to invest CNY 5 billion in R&D for new energy-efficient technologies over the next three years[183]. - Gree's R&D investment reached CNY 4.5 billion, accounting for 3% of total revenue, focusing on new product development and technology innovation[190]. Product Development and Innovation - Gree Electric has developed 19 internationally leading core technologies, including advancements in distributed air delivery technology and high-efficiency multi-split systems[34]. - The company has introduced a new generation of multi-split air conditioning systems that have won multiple design awards, showcasing its commitment to innovation and quality[47]. - Gree launched a new line of smart air conditioners, which accounted for 10% of total sales in 2017[183]. - The company is focusing on smart home technology, with plans to launch several new smart appliances in the upcoming year[171]. Sustainability and Environmental Initiatives - Gree Electric is committed to sustainability, with plans to reduce carbon emissions by 30% by 2025[183]. - The company has achieved stable compliance in wastewater treatment with no exceedance of discharge standards[147]. - The company has implemented a detailed waste gas prevention and control improvement plan targeting VOCs[148]. - Gree's environmental initiatives have led to a 10% reduction in carbon emissions across its manufacturing processes[188]. Corporate Governance and Shareholder Information - The company did not distribute cash dividends or bonus shares for the year[6]. - The company did not have any fundraising activities during the reporting period[93]. - The company has committed to not reducing its shareholdings in the next 12 months, with ongoing commitments from major shareholders[117]. - The total number of shareholders at the end of the reporting period was 357,373[160]. - The largest shareholder, Zhuhai Gree Group, holds 18.22% of the shares, amounting to 1,096,255,624 shares[160]. Employee Development and Training - The company has established a diversified talent training mechanism to support strategic transformation and market needs, enhancing employee development and learning[60]. - The company has trained 1,200 specialized skill talents in areas such as robot integration and equipment maintenance in 2017[197]. - A total of 55,000 participants engaged in the annual "Craftsmanship Dream" labor skills competition, which included 12 events to enhance professional skills[197]. - The company has developed a learning resource system with over 28,500 training materials to improve training efficiency and effectiveness[196].