Core Viewpoint - Gree Electric Appliances has announced significant cash dividends and reported a decline in revenue but an increase in net profit, indicating a complex financial landscape as the company transitions into a new management era under the leadership of a new president while maintaining its core business focus on air conditioning. Financial Performance - In 2024, Gree Electric achieved total revenue of 1900.38 billion yuan, a year-on-year decline of 7.31%, but net profit attributable to shareholders increased by 10.91% to 321.85 billion yuan [10][22][33] - For the first quarter of 2025, Gree reported approximately 416 billion yuan in revenue, a year-on-year growth of 13.78%, with net profit of about 59 billion yuan, up 26.29% [10][11][22] Dividend Distribution - Gree Electric plans to distribute a cash dividend of 20 yuan per 10 shares, totaling 111.7 billion yuan, alongside a mid-year dividend of 55.9 billion yuan, bringing the total cash dividends for the previous year to nearly 168 billion yuan [12][3][9] Management Transition - The company is entering a "post-董明珠 era" as 71-year-old董明珠 continues as chairman but has stepped down as president, with Zhang Wei taking over the role [4][12][24] -董明珠's recent comments on talent acquisition, particularly regarding "overseas returnees," have sparked public debate about the company's hiring philosophy and cultural alignment [6][12][13] Market Position and Competition - Gree Electric, once the leader in the domestic appliance market, faces increasing competition from Midea Group, which has become the dominant player in the industry [7][31][34] - In terms of air conditioning revenue, Gree reported 1512 billion yuan in 2023, while Midea's revenue was 1611.11 billion yuan, indicating a narrowing gap in their core business [32][33] Innovation and R&D - Gree Electric has established itself as a leader in innovation, holding over 129,500 patents, including 25,900 invention patents, and has been recognized for its technological advancements [20][22]

Core Viewpoint - Gree Electric's recent shareholder meeting highlighted its talent strategy and R&D capabilities, particularly in light of Chairman Dong Mingzhu's controversial remarks about not hiring overseas returnees, which sparked significant public discourse [2][8][15] R&D Investment and Achievements - Gree's R&D investment is projected to exceed 10 billion yuan in 2024, reflecting a strong commitment to technological innovation [3] - The company has achieved notable advancements in core technologies, including the production of silicon carbide (SiC) chips, with an annual capacity of 240,000 six-inch SiC chips, enhancing its capabilities in smart home and renewable energy sectors [3] - As of November 2024, Gree has filed a total of 126,000 patents, with nearly 70,000 being invention patents, positioning it among the leaders in the industry [3] Challenges in Diversification - Despite strong R&D investments, Gree's performance in diversified businesses such as smartphones and electric vehicles has been underwhelming, raising questions about its R&D efficiency [4] - Gree's smartphone, launched in 2015, has seen minimal market impact, with a market share that is nearly negligible, and its products have been criticized for being overpriced and underperforming [4] - The acquisition of Yinlong New Energy in 2016 has not yielded expected results, with Gree's revenue from its battery business remaining below 5% in 2024 [4] Imbalance in R&D Focus - Gree's R&D resources are heavily concentrated in its air conditioning business, which accounted for 78% of its revenue in the first half of 2024, while other diversified sectors contributed less than 10% [5] - This "single-core drive" model may limit Gree's growth potential, as further technological advancements in a well-established market may not significantly impact market share [5] Internationalization and Talent Strategy - Gree's international sales revenue was 24.9 billion yuan in 2023, making up only 12.21% of total revenue, which is significantly lower than competitors like Haier and Midea [8] - The company's reliance on traditional channels and lack of localized R&D capabilities hinder its ability to penetrate key overseas markets [8] - Gree's talent strategy, which excludes overseas returnees, may be detrimental to its internationalization efforts, as these individuals often possess valuable global perspectives and advanced technical skills [10][15] Comparison with Competitors - In contrast to Gree, Midea has successfully diversified its revenue streams, with 41.52% of its revenue coming from overseas, and has invested in various sectors including smart home technology and robotics [7] - Gree's lag in emerging fields like electric vehicles and AI is evident, with its patent count in these areas being less than one-tenth of that of competitors like BYD [11][14] Future Considerations - Gree's current talent strategy may need reevaluation to incorporate external expertise, particularly in rapidly evolving sectors, to avoid falling behind in technological advancements [14][15] - The company must balance its commitment to self-developed talent with the need for external collaboration to foster innovation and adapt to market changes [15]