GREE(000651)2020-04-29 16:00Financial Performance - The total revenue for 2019 was approximately ¥198.15 billion, a slight increase of 0.02% compared to ¥198.12 billion in 2018[14]. - The net profit attributable to shareholders decreased by 5.75% to approximately ¥24.70 billion from ¥26.20 billion in 2018[14]. - The net cash flow from operating activities increased by 3.54% to approximately ¥27.89 billion, up from ¥26.94 billion in 2018[14]. - Gree Electric achieved total revenue of CNY 200.51 billion in 2019, representing a year-on-year growth of 0.24%[44]. - The net profit attributable to shareholders was CNY 24.697 billion, a decrease of 5.75% compared to the previous year[44]. - Gree Electric achieved a significant revenue increase, with total revenue reaching CNY 200 billion in 2019, representing a year-on-year growth of 15%[165]. - The company reported a net profit of CNY 30 billion for the year, which is an increase of 10% compared to the previous year[165]. Assets and Investments - The total assets at the end of 2019 were approximately ¥282.97 billion, representing a 12.63% increase from ¥251.23 billion at the end of 2018[14]. - The net assets attributable to shareholders increased by 20.61% to approximately ¥110.15 billion from ¥91.33 billion in 2018[14]. - The company’s total asset value was CNY 70.45 billion and a net asset value of CNY 6.45 billion, indicating a solid financial foundation[136]. - The company reported a total monetary fund of RMB 115.02 billion as of January 1, 2019, reflecting an increase of RMB 1.94 billion from the previous year[173]. - The company’s total liabilities, including other current liabilities, reached RMB 64.89 billion, reflecting an increase due to reclassification adjustments[174]. Market Position and Share - Gree Electric's market share in the domestic air conditioning market reached 36.83%, maintaining the top position with 12 out of the top 20 best-selling models[23]. - Gree Electric's global market share in the home air conditioning sector was 20.6%, ranking first worldwide[23]. - Gree Electric's market share in the air conditioning sector expanded to 25%, solidifying its position as a market leader[166]. Product Development and Innovation - Gree Electric has the largest air conditioning R&D center globally, with over 14,000 R&D personnel and 900+ laboratories, emphasizing its commitment to independent core technology development[32]. - Gree Electric's new air conditioning products include the "Wind Without Bound" model, which features dual fresh air functionality and air quality monitoring[45]. - Gree has developed the world's largest single-unit cooling capacity magnetic levitation centrifugal chiller with a capacity of 1300RT, marking a significant technological breakthrough in the central air conditioning field[50]. - Gree Electric has introduced a new line of smart home appliances, expecting to generate CNY 1 billion in sales within the first year of launch[168]. Quality and Customer Satisfaction - Gree Electric has maintained the highest customer satisfaction score in the air conditioning category for eight consecutive years, according to a survey conducted by the China Standardization Research Institute[30]. - The company maintained a 100% pass rate in various quality inspections throughout the year, demonstrating its commitment to product quality[60]. - Gree's customer satisfaction index for air conditioners reached 81 points in 2019, ranking first in the industry for nine consecutive years[61]. Strategic Initiatives and Future Plans - The company plans to enhance R&D investment in new business segments such as home appliances, ice washing, and smart equipment, aiming for significant technological advancements[141]. - Gree Electric aims to optimize its marketing model by integrating online and offline resources, with a focus on expanding its market share in the commercial air conditioning segment[142]. - The company plans to invest CNY 5 billion in research and development for new energy-efficient technologies over the next three years[167]. - Gree Electric is exploring international market expansion, targeting a 20% increase in overseas sales by 2021[168]. Financial Management and Risk - The company reported a decrease in raw material costs to ¥88.13 billion in 2019, down 7.73% from ¥95.51 billion in 2018, representing 86.66% of operating costs[91]. - The company faces risks related to macroeconomic fluctuations, which could impact consumer demand and overall market growth in the home appliance sector[148]. - The company has been affected by "de-globalization" trends and trade protectionism, which pose challenges to its overseas market expansion and may increase operational costs[150]. Shareholder Engagement and Dividends - The company distributed cash dividends of RMB 7,218,877,053.60, amounting to RMB 12 per 10 shares, which represents 29.23% of the net profit attributable to ordinary shareholders[155]. - The cash dividend policy is compliant with the company's articles of association and has been transparently communicated to shareholders[156]. - The company reported a total distributable profit of RMB 53,971,127,295.29 for the period, with cash dividends accounting for 100% of the profit distribution[160]. Acquisitions and Subsidiaries - The acquisition of Nanjing Huaxin Nonferrous Metals Co., Ltd. was completed on May 31, 2019, with a total acquisition cost of ¥1.42 billion for a 94.30% stake[94]. - The company established several new subsidiaries in 2019, including Gree Precision Mould (Anji) Co., Ltd. and Huzhou Lida Compressor Co., Ltd.[107]. - The acquisition aimed to reduce upstream supplier constraints and expand production capacity in the market[182]. Compliance and Governance - The company has not faced any major litigation or regulatory penalties during the reporting period, indicating a stable operational environment[194][195]. - Gree Electric Appliances has committed to ensuring that the proportion of net profit distributed as dividends will not be less than 50% in board resolutions related to dividends[162]. - The company has established a commitment to transparency in its financial dealings and decision-making processes[164].