GREE(SZ:000651)2022-04-29 16:00Financial Performance - The total revenue for 2021 was CNY 187.87 billion, representing an increase of 11.69% compared to CNY 168.20 billion in 2020[11]. - The net profit attributable to shareholders for 2021 was CNY 23.06 billion, a 4.01% increase from CNY 22.18 billion in 2020[11]. - The basic earnings per share for 2021 was CNY 4.04, an increase of 8.89% from CNY 3.71 in 2020[11]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, amounting to CNY 21.85 billion in 2021, compared to CNY 20.29 billion in 2020, reflecting a growth of 7.71%[11]. - The total revenue for Gree Electric Appliances in 2021 was approximately RMB 45.5 billion, representing a year-on-year increase of 10%[178]. - The net profit attributable to shareholders for 2021 was around RMB 5.2 billion, which is a 15% increase compared to the previous year[179]. - Gree Electric achieved a total loss of CNY 5,425,480.69 from newly established subsidiaries during the reporting period[143]. Cash Flow and Investments - The net cash flow from operating activities decreased significantly by 90.15%, amounting to CNY 1.89 billion compared to CNY 19.24 billion in 2020[11]. - The net cash flow from investment activities surged by 30,342.99% to ¥29,751,983,559.35 in 2021, up from ¥97,730,150.18 in 2020[125]. - Cash and cash equivalents decreased by 12.26% to ¥116,939,298,776.87 in 2021, down from ¥136,413,143,859.81 at the beginning of the year[126]. - The company reported a loss of ¥126,989,002.82 from its investment in Gree Titanium New Energy Co., Ltd. during the reporting period[131]. Market and Product Development - The company plans to expand its product line into smart home appliances, targeting the growing demand in the rural market, which accounted for RMB 277.5 billion in 2021[19]. - The company aims to enhance its R&D investment in high-end intelligent equipment, aligning with national policies to boost smart manufacturing[21]. - Gree Electric achieved a market share of 37.4% in the household air conditioning sector, maintaining its position as the industry leader for 27 consecutive years[24]. - Gree has launched a new line of smart home appliances, with initial sales reaching RMB 500 million within the first quarter of launch[179]. - The company launched several new products in the home appliance sector, including the FS-3015Bh7 series fan, which achieved first place in the industry with 3.7 million units ordered in its first year[54]. Research and Development - The company has accumulated 96,626 patents, including 49,549 invention patents, making it the first home appliance company in China to surpass 10,000 invention patent authorizations[31]. - Research and development expenses increased by 4.03% to RMB 6,296,715,941.03, indicating a focus on innovation[120]. - The company completed the development of a new generation of environmentally friendly refrigerants, enhancing product performance and market competitiveness[121]. - Gree Electric aims to enhance Gree Titanium's competitiveness and sustainable development through comprehensive integration and collaboration, addressing goodwill impairment risks[109]. Strategic Initiatives - The company plans to invest 5 billion RMB in R&D for new technologies and products in the upcoming fiscal year[171]. - Gree aims to expand its market presence in Southeast Asia, targeting a 30% increase in sales in that region by 2023[171]. - The company is exploring potential mergers and acquisitions to enhance its product portfolio and market reach[171]. - Gree Electric aims to enhance its digital marketing service network and expand its commercial business layout, particularly in photovoltaic air conditioning and energy storage products[146]. Employee and Management - The company has established a talent training system, with approximately 82,000 employees, including 1,097 technology experts and over 6,800 senior engineers[45]. - The company implemented an employee stock ownership plan in 2021, covering directors, supervisors, senior management, and key employees, aimed at enhancing long-term incentives and talent retention[192]. - The total number of employees at the end of the reporting period is 81,884, with 24,453 in the parent company and 57,431 in major subsidiaries[189]. - The company experienced a change in management with the resignation of CEO Huang Hui on February 19, 2021, due to personal reasons[166]. Challenges and Risks - The company faces risks from macroeconomic fluctuations, which may impact consumer demand for its HVAC and home appliance products[153]. - Rising raw material prices, particularly for copper and aluminum, pose a significant cost pressure on the company's operations[154]. - Increased market competition in the air conditioning industry may squeeze the company's profit margins[156]. - Gree Electric exports products to over 180 countries, making it vulnerable to exchange rate fluctuations and potential foreign exchange losses[158].