GREE(000651)2021-08-22 16:00Financial Performance - The operating revenue for the first half of 2021 was CNY 91,052,071,946.13, representing a 31.01% increase compared to CNY 69,502,322,369.94 in the same period last year[12]. - The net profit attributable to shareholders of the listed company reached CNY 9,456,819,352.86, a 48.64% increase from CNY 6,362,137,377.64 year-on-year[12]. - The net profit after deducting non-recurring gains and losses was CNY 8,791,754,578.14, up 46.61% from CNY 5,996,537,619.91 in the previous year[12]. - The basic earnings per share increased to CNY 1.62, reflecting a growth of 52.83% compared to CNY 1.06 in the same period last year[12]. - The total profit for the same period was 10.976 billion yuan, representing a year-on-year growth of 42.62%[19]. - Gree Electric's revenue for the first half of 2021 reached ¥91.05 billion, a 31.01% increase compared to ¥69.50 billion in the same period last year[38]. - The company's main business revenue increased by 42.69% year-on-year, reaching RMB 70.93 billion, primarily due to recovery from COVID-19 impacts and enhanced promotional strategies[41]. - The company reported a total profit of RMB 10.98 billion for the first half of 2021, up 42.9% from RMB 7.70 billion in the first half of 2020[119]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 311,890,823,614.08, an increase of 11.70% from CNY 279,217,923,628.27 at the end of the previous year[12]. - The total liabilities reached CNY 211.86 billion, up from CNY 162.34 billion, indicating a growth of around 30.5%[114]. - The company's equity attributable to shareholders decreased to CNY 95.54 billion from CNY 102.84 billion, a decline of about 7%[114]. - Current liabilities rose to CNY 203.09 billion, compared to CNY 158.48 billion in the previous period, marking an increase of about 28.1%[114]. - The company's cash and cash equivalents amounted to RMB 134.46 billion, accounting for 43.11% of total assets, a decrease of 5.75% from the previous year[42]. Cash Flow - The net cash flow from operating activities was negative at CNY -6,071,219,912.21, a decline of 34.39% compared to CNY -4,517,675,737.76 in the same period last year[12]. - The company raised 42,705,688,508.97 CNY through borrowings, a substantial increase from 14,495,414,251.94 CNY in the previous year[125]. - The net cash flow from financing activities was 3,609,675,261.22 CNY, recovering from a negative flow of -4,042,985,715.82 CNY in the first half of 2020[125]. - The cash inflow from investment activities totaled 32,278,386,904.66 CNY, compared to 6,599,280,744.09 CNY in the same period last year[124]. Research and Development - The company's R&D investment rose to ¥3.54 billion, marking a 38.38% increase from ¥2.56 billion year-on-year[38]. - GREE plans to launch three new product lines in the next quarter, focusing on energy-efficient appliances[72]. - The company is investing 500 million RMB in R&D for new technologies aimed at reducing carbon emissions by 30% by 2025[72]. Market Position and Sales - Gree's market share in the central air conditioning sector reached 16.2%, ranking first in the industry[17]. - The domestic sales of Gree's household air conditioners accounted for 33.89% of the market, also ranking first in the home appliance industry[17]. - Gree's domestic sales accounted for 63.92% of total revenue, with a 53.91% increase compared to the previous year[40]. - The overall sales volume of the household air conditioning industry in the first half of 2021 was 86.3736 million units, a year-on-year increase of 13.56%[18]. Environmental Compliance - The total COD emissions for the company in the first half of the year were 5.527 tons, with an annual limit of 26.4 tons[68]. - The company has received environmental approval for its new manufacturing plant, ensuring compliance with national standards[75]. - GREE's environmental compliance measures have resulted in a 15% reduction in waste emissions compared to the previous year[73]. Shareholder Information - The annual shareholders' meeting had a participation rate of 54.58% on June 30, 2021[64]. - The company plans not to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[66]. - The total number of ordinary shareholders at the end of the reporting period was 714,661, with significant shareholders including Hong Kong Central Clearing holding 17.04% and Zhuhai Mingjun Investment holding 15.00%[97]. Risks and Challenges - The company faces risks from macroeconomic fluctuations, particularly due to the ongoing impact of the COVID-19 pandemic, which may lead to reduced consumer demand[60]. - Trade protectionism poses a risk to the company's overseas market expansion and may increase operational costs[62]. - The company is exposed to raw material price volatility, particularly for copper, steel, aluminum, and plastics, and plans to mitigate this through hedging and advance procurement[61]. Corporate Governance - The financial report was approved by the board of directors on August 20, 2021[137]. - The financial statements are prepared based on the going concern assumption, with no significant factors affecting the company's ability to continue operations identified for the next 12 months[138]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[105].