Business Structure and Future Planning - Gree Electric is a diversified, technology-driven global industrial group with brands including Gree, TOSOT, and Jinghong, covering both consumer goods and industrial equipment sectors [1][2] - The company focuses on energy-saving, comfort, health, and intelligence in its air conditioning products, with continuous upgrades to meet high-quality living demands [1] - Gree aims for sustainable development through independent brand growth, innovation, and deepening channel construction [2] Technological Advantages - Gree has established a robust R&D system with nearly 16,000 researchers and a total R&D investment of 7.14 billion yuan in 2024, accounting for 3.77% of revenue [3][4] - The company holds approximately 130,000 patents, with 55% being invention patents, and has developed 48 internationally leading technologies [3] - Gree's unique technologies include the "no wind blowing" feature in air conditioning and energy-efficient solutions that reduce electricity consumption by over 13.6% [4][5] Dividend Policy - Since its listing, Gree has raised 5.269 billion yuan in equity financing and distributed cash dividends totaling 130.883 billion yuan, with an average dividend rate of 63.49% over the past five years [6][7] - The company aims to maintain a stable and sustainable high dividend policy while ensuring normal operations and long-term development [7] Health Home Initiative - The "Dong Mingzhu Healthy Home" initiative aims to enhance consumer awareness of Gree's health-oriented home appliances through experiential marketing [8][9] - By March 2025, Gree plans to upgrade 3,000 stores nationwide, with over 600 already upgraded, achieving significant sales performance [9][11] Ice Washing and Home Appliance Business - Gree is accelerating product development in ice washing and home appliances, leveraging its core technology in compressors to enhance preservation capabilities [12] - The company plans to launch innovative products that meet the ecological needs of the "Dong Mingzhu Healthy Home" initiative [12] Global Strategy and Market Expansion - Gree's products are sold in over 190 countries, with 2024 foreign sales revenue reaching 28.202 billion yuan, a 13.25% increase [22][23] - The company is expanding its product range from air conditioning to include refrigerators and washing machines, transitioning to a comprehensive industrial group [23][24] Challenges and Responses - Gree faces challenges from raw material price fluctuations, particularly in copper, aluminum, and steel, which impact manufacturing costs [32] - The company employs strategies such as hedging, strategic reserves, and technological innovation to mitigate these pressures [32] Intellectual Property Protection - Gree has taken legal measures to protect its intellectual property and reputation, resulting in multiple criminal and civil cases against infringers [34] - The company has successfully prosecuted 6 individuals for intellectual property crimes and has pursued civil actions for damages totaling over 21.31 million yuan [34]

Group 1 - The 2025 Ninth China (Indonesia) Export Brand Exhibition and Jakarta International Industrial Exhibition opened on June 4, attracting over 1,000 enterprises from 20 provinces in China and countries like Indonesia and Japan, covering an exhibition area of 40,000 square meters [1][3] - The exhibition focuses on the new demands of Indonesia's industrialization 4.0 upgrade, featuring 15 major categories including new energy, automotive parts, agricultural machinery, plastic machinery and molds, packaging and printing machinery, and food processing and packaging machinery [3][4] - To enhance supply-demand matching, the organizing committee will hold multiple roadshow events in cities like Kendari, Makassar, and Bandung in the first half of 2025, promoting quality Chinese enterprises and products [3] Group 2 - The exhibition has upgraded its "intelligent" features by introducing the self-developed "AI Hui Exhibition" system and AI glasses, which provide AI-assisted behavior and customer profiling analysis, with a 30% application rate among exhibitors [4] - The exhibition serves as an international platform for Chinese industrial enterprises to showcase their strength and expand their market, while also building an important bridge for in-depth cooperation between China and Indonesia in industrial manufacturing, machinery, and intelligent manufacturing [4] - The event is organized by the Wenzhou Municipal Government, with support from various municipal commerce bureaus and international exhibition companies [4]

Group 1 - The 2025 China (Indonesia) Export Brand Exhibition and Jakarta International Industrial Exhibition opened on June 4, 2023, in Jakarta, Indonesia [1] - The exhibition focuses on Indonesia's industrialization 4.0 upgrade needs and features 15 major categories of exhibits, including new energy, automotive parts, agricultural machinery, plastic machinery, and packaging and printing machinery [2] - The exhibition covers an area of 40,000 square meters, making it the largest industrial-themed exhibition hosted by China in the RCEP region and the largest industrial supply chain exhibition in Indonesia [2] Group 2 - The organizing committee has conducted multiple roadshow activities in cities like Kendari, Makassar, and Bandung to promote quality Chinese enterprises and products, enhancing the influence of Chinese manufacturing in the ASEAN market [3] - The exhibition has established cooperation with major industrial parks and companies in Indonesia, such as the Jababeka Industrial Park and Krakatau Steel, to deepen industrial linkage and technology exchange [3] - The exhibition has integrated AI technology through its self-developed "AI Hui Exhibition" system, achieving a 30% application rate among exhibitors for AI-assisted behavior and customer profiling analysis [3] Group 3 - The exhibition is hosted by the Wenzhou Municipal Government and supported by various local business bureaus and associations from different provinces in China [4]

Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [4][7]. Core Insights - The company achieved a revenue of 1161.86 billion CNY in 2024, a year-on-year increase of 1.21%, while the net profit attributable to shareholders was 7.52 billion CNY, down 6.33% year-on-year [1]. - In Q1 2025, the company reported a revenue of 222.45 billion CNY, up 8.06% year-on-year, and a net profit of 2.92 billion CNY, a significant increase of 145.69% year-on-year, marking a return to profitability [1]. - The energy equipment segment saw a revenue increase of 5.30% to 617.58 billion CNY, benefiting from the continued delivery of coal-fired and nuclear power units [2]. - The company’s new order intake reached a four-year high of 1536.0 billion CNY in 2024, representing an 11.9% year-on-year growth, with the energy equipment segment orders increasing by 18.5% [3]. - The company is focusing on green and low-carbon transformation, making progress in energy storage, hydrogen energy, and robotics [4]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 1161.86 billion CNY and a net profit of 7.52 billion CNY, with a projected revenue growth of 3.52% in 2025 [6]. - The gross profit margin improved to 19.7% in the energy equipment segment, reflecting a 2.0 percentage point increase year-on-year [2]. Order Intake and Market Position - The company’s new orders in the energy equipment segment reached 891.0 billion CNY, a five-year high, with wind power orders increasing by 150.4% to 173.8 billion CNY [3]. - The company is expected to leverage its leading position to enhance market share in traditional business areas while exploring new growth points in technology-driven sectors [4]. Future Outlook - The report projects net profits for 2025-2027 to be 14 billion CNY, 27 billion CNY, and 32 billion CNY respectively, with a downward adjustment of 16% and 10% for the first two years [4]. - The current A/H share price corresponds to a PE ratio of 81 and 27 for 2025, indicating potential for future growth [4].