GREE(SZ:000651)2018-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 90.98 billion, representing a 31.50% increase compared to CNY 69.18 billion in the same period last year[17]. - The net profit attributable to shareholders was CNY 12.81 billion, up 35.48% from CNY 9.45 billion year-on-year[17]. - The net profit after deducting non-recurring gains and losses reached CNY 12.63 billion, reflecting a 40.30% increase from CNY 9.00 billion in the previous year[17]. - The net cash flow from operating activities was CNY 8.94 billion, a significant increase of 145.77% compared to CNY 3.64 billion in the same period last year[17]. - The total assets at the end of the reporting period amounted to CNY 219.07 billion, a 1.91% increase from CNY 214.97 billion at the end of the previous year[17]. - The net assets attributable to shareholders increased by 19.40% to CNY 78.32 billion from CNY 65.60 billion at the end of the previous year[17]. - The basic earnings per share were CNY 2.13, up 35.67% from CNY 1.57 in the same period last year[17]. - In the first half of 2018, the company achieved total revenue of 92.005 billion yuan, a year-on-year increase of 31.40%[32]. - The net profit attributable to shareholders reached 12.806 billion yuan, up 35.48% compared to the same period last year[32]. - The company reported a significant increase in cash and cash equivalents, which rose by 175.92% to ¥14.38 billion from ¥5.21 billion[41]. Market Position and Strategy - Gree Electric has maintained its leadership in the domestic market for home air conditioners for 23 consecutive years and has led the global market for 13 consecutive years, with a global market share of 21.90% as of 2017[25]. - The company aims to provide globally leading, high-quality HVAC and home appliance products, with its self-owned brand products exported to over 160 countries and regions, serving more than 400 million users[25]. - The company maintained a global market share of 21.90% in the home air conditioning sector, leading the industry by a margin of 7 percentage points[33]. - The market share of the company's central air conditioning products increased to 17.03%, up 1.61 percentage points from 15.42% in 2017[34]. - The company plans to enhance its market expansion strategies and invest in new product development in the upcoming quarters[150]. - The company aims to improve its operational efficiency through technological advancements and innovation in product offerings[150]. Research and Development - The company ranked seventh in the number of invention patents granted in China, with 787 patents in the first half of 2018, being the only home appliance company in the top ten[35]. - The company has developed 24 internationally leading technologies, showcasing its strong research and development capabilities[36]. - The company is advancing into the air conditioning chip design field to reduce reliance on imports, with a significant increase in chip demand expected[39]. - The company successfully developed and delivered its first fiber laser cutting machine, marking a significant achievement in the intelligent equipment sector[37]. Environmental Responsibility - Gree Electric Appliances reported a total COD emissions of 3 tons for the first half of the year, with a concentration of 24 mg/L, adhering to the water pollution discharge standards[84]. - The company emitted 0.135 tons of nitrogen oxides in the first half of the year, with a concentration of 1.1 mg/m³, complying with the air pollution discharge limits[84]. - Gree's total sulfur dioxide emissions were recorded at 0.001 tons for the first half of the year, with a concentration of 0.008 mg/m³, meeting the required standards[84]. - The company has implemented various pollution control measures across its facilities, reflecting its commitment to environmental responsibility[84]. - Gree Electric Appliances is classified as a key pollutant discharge unit by environmental authorities, highlighting its significant environmental impact[84]. - The company is actively working on improving its emissions standards and reducing its environmental footprint through ongoing assessments and upgrades[84]. Financial Management - Operating costs increased by 35.19% to ¥63.66 billion from ¥47.09 billion, resulting in a gross margin decrease in the manufacturing sector to 33.61% from 38.18%[42]. - The company’s net profit tax expense increased by 43.62% to ¥2.42 billion from ¥1.68 billion[41]. - The company’s short-term borrowings increased to ¥19.68 billion, representing 8.98% of total assets, up from 8.67%[43]. - The inventory level decreased to ¥13.12 billion, accounting for 5.99% of total assets, down from 7.71%[43]. - The company has established internal control measures to manage risks associated with derivative investments, including market, liquidity, credit, and operational risks[50]. - The company has implemented hedging strategies to mitigate risks associated with raw material price fluctuations and foreign exchange rate volatility[50]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 459,959[104]. - The largest shareholder, Zhuhai Gree Group Co., Ltd., holds 18.22% of the shares, totaling 1,096,255,624 shares[104]. - Gree Electric Appliances plans to distribute a cash dividend of 6 CNY per 10 shares, totaling 3,609,438,526.80 CNY, which represents 100% of the profit distribution[59]. Corporate Governance - The company did not undergo any changes in its controlling shareholder or actual controller during the reporting period[107]. - There were no priority shares issued by the company during the reporting period[110]. - The company has not initiated any targeted poverty alleviation work during the reporting period and has no subsequent plans[96]. - The company has established emergency response plans for sudden environmental incidents to ensure efficient handling and minimize losses[94]. Accounting and Compliance - The financial statements are prepared based on the "Enterprise Accounting Standards" and comply with the disclosure requirements of the China Securities Regulatory Commission[168]. - The company has assessed macroeconomic policy risks and market operational risks, concluding that there are no significant factors affecting its ability to continue as a going concern[167]. - The company follows specific accounting policies for revenue recognition based on its operational characteristics[169].