GREE(000651)2023-08-30 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥99.24 billion, an increase of 4.22% compared to ¥95.22 billion in the same period last year[9]. - The net profit attributable to shareholders of the listed company reached ¥12.67 billion, reflecting a growth of 10.52% from ¥11.47 billion year-on-year[9]. - Basic and diluted earnings per share increased by 16.49% to ¥2.26, up from ¥1.94 in the same period last year[10]. - The total investment amount for the reporting period reached ¥20,134,442,372.93, representing a 59.01% increase compared to ¥12,662,489,553.65 in the same period last year[65]. - The total comprehensive income attributable to shareholders for the first half of 2023 was ¥11.99 billion, compared to ¥7.78 billion in the same period of 2022, marking a significant increase[145]. - Gree Electric's total revenue for the first half of 2023 reached ¥127.93 billion, a significant increase from ¥91.68 billion in the same period of 2022, representing an increase of approximately 39.5%[148]. - The company reported a net profit of 1 billion RMB for the first half of 2023, reflecting a 12% increase year-on-year[171]. Cash Flow and Assets - The net cash flow from operating activities surged by 134.78%, amounting to ¥30.86 billion compared to ¥13.14 billion in the previous year[9]. - The company's cash and cash equivalents increased to ¥191.65 billion, representing 48.09% of total assets, up from 44.36% last year[61]. - Cash and cash equivalents at the end of the first half of 2023 amounted to ¥35.29 billion, a decrease from ¥37.69 billion at the end of the first half of 2022[149]. - The company reported a net cash outflow from investing activities of ¥23.98 billion for the first half of 2023, compared to a net outflow of ¥13.48 billion in the same period of 2022[149]. - The total cash inflow from financing activities was 40,219,529,100.85 CNY, down from 46,951,095,433.22 CNY in the previous period[151]. Market Performance and Strategy - The retail sales of household air conditioners in China increased by 12.72% in volume and 16% in revenue year-on-year in the first half of 2023, indicating a growing market demand[13]. - Gree's market share in the household air conditioning sector remains the highest globally, with the central air conditioning market in the first half of 2023 exceeding CNY 10 billion, making it the only brand to achieve this milestone[15]. - The company plans to continue expanding its product lines and enhancing its market presence through strategic investments in smart manufacturing and technology upgrades[56]. - The company expects a revenue growth guidance of 10% for the second half of 2023, driven by new product launches and market expansion[175]. Research and Development - Research and development investment increased by 18.71% to ¥3.71 billion, up from ¥3.13 billion, reflecting the company's commitment to innovation[57]. - The company has established a comprehensive research and development platform with 39 "international leading" technologies and received 106 significant awards[37]. - Investment in R&D for new technologies reached 200 million RMB, focusing on energy-efficient appliances[172]. Environmental Compliance - The company is a key pollutant discharge unit as per environmental protection department announcements[88]. - The company strictly adheres to various environmental protection laws and regulations during its operations[89]. - Gree Electric Appliances reported a total COD discharge of 3.2119 tons for the first half of 2023, with an annualized estimate of 23.4 tons[91]. - The company has established wastewater treatment facilities that are operating normally and meeting discharge standards without any exceedances[104]. - The company has developed emergency response plans for environmental incidents, ensuring efficient handling to protect employee safety and minimize property loss[105]. Risk Management - The company faced risks from macroeconomic fluctuations, which could impact consumer spending on home appliances[77]. - The company is exposed to raw material price volatility, particularly for copper, steel, aluminum, and plastics, which significantly affect cost[78]. - The company has implemented measures to control various risks, including market competition and exchange rate fluctuations[80]. Employee and Corporate Governance - The company has implemented a high-skilled talent training program, completing training for 340,000 personnel during the reporting period[51]. - The employee stock ownership plan has been successfully implemented, enhancing organizational cohesion and competitiveness[52]. - The company did not experience any changes in its board of directors, supervisors, or senior management during the reporting period[82]. Product Development and Innovation - The company has developed new products such as the "National Style" series and "Fabric Element" series air conditioners, focusing on health, energy efficiency, and smart technology[17]. - Gree's new high-efficiency air conditioning products for tropical climates have received SASO energy efficiency certification, promoting energy conservation and emission reduction[17]. - The company launched the first flat-embedded ultra-freezing refrigerator, utilizing a unique -38℃ preservation technology and achieving over 99% sterilization rate[25]. Financial Instruments and Accounting - The company emphasizes the importance of fair value measurement in financial reporting, utilizing observable inputs whenever possible[185]. - The company recognizes impairment losses when the expected credit loss exceeds the current impairment provision, ensuring accurate financial reporting[187]. - The company applies the effective interest method for financial assets measured at amortized cost, recognizing amortization or impairment in the income statement[181].