On the evening of February 28, Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) . SZ) issued an announcement confirming that the directors of the company unanimously agreed to elect Dong Mingzhu as the chairman of the 12th board of directors of Gree Electric Appliances Inc.Of Zhuhai(000651) until 2025. Dong Mingzhu was re elected successfully.
In the afternoon, Gree Electric Appliances Inc.Of Zhuhai(000651) held the first extraordinary general meeting of shareholders in 2022 at Zhuhai headquarters. Due to the impact of the epidemic, the meeting was held in a combination of communication and on-site voting. According to the announcement, 4648 shareholders voted on site and online, representing 2425590820 shares, accounting for 438095% of the total voting shares of listed companies, including the general election of the board of directors.
Gree Electric Appliances Inc.Of Zhuhai(000651) chairman and president Dong Mingzhu said in response to shareholders’ questions on the spot that the external changes in the past two years have indeed brought a lot of pressure to Gree, especially the price rise of raw materials, “some prices rise by 50%, and even the price rise of individual materials by 100%”. However, she believes that with the increasingly sound Gree team, she is still confident in the future despite many challenges.
successfully re elected
According to the latest vote, Gree Electric Appliances Inc.Of Zhuhai(000651) the non independent directors of the 12th board of directors are Dong Mingzhu, Zhang Wei, Deng Xiaobo, Zhang Jundu and Guo shuzhan; The independent directors are Liu Shuwei, Xing Ziwen, Wang Xiaohua and Zhang Qiusheng.
The reporter noted that at the extraordinary general meeting of shareholders held in January Gree Electric Appliances Inc.Of Zhuhai(000651) 2019, Dong Mingzhu, Huang Hui, Wang Jingdong, Zhang Wei, Zhang Jundu and Guo shuzhan were elected as non independent directors, and Liu Shuwei, Xing Ziwen and Wang Xiaohua were elected as independent directors. However, in 2020 and 2021, Wang Jingdong and Huang Hui resigned from all their positions successively, and the quota of Gree Electric Appliances Inc.Of Zhuhai(000651) board of directors was vacant by two. Therefore, in this election, Deng Xiaobo and Zhang Qiusheng were newly added to the Gree Electric Appliances Inc.Of Zhuhai(000651) board of directors.
At the same time, the number of independent directors has also increased by one compared with the 11th board of directors. “Independent directors can supervise, help and promote enterprise development and standardize enterprise operation. Therefore, I hope the four independent directors can help Gree Electric Appliances Inc.Of Zhuhai(000651) make better strategic planning and decision-making from different angles.” Dong Mingzhu said.
In addition, the meeting also adopted the “return to shareholders plan for the next three years (20222024)”, which proposed that “on the premise that the cash flow meets the normal operation and long-term development of the company, Gree Electric Appliances Inc.Of Zhuhai(000651) the total annual cumulative cash dividends in the next three years shall not be less than 50% of the net profit of the current year.”
At the shareholders’ meeting, some shareholders welcomed the dividend plan and looked forward to participating in the spin off plan of other businesses of Gree and sharing the dividends in the process of asset securitization.
In this regard, Dong Mingzhu said that she has always advocated that investors should buy stocks with an investment mentality rather than a speculative mentality. When it comes to the reason for proposing the three-year shareholder return plan, Dong Mingzhu said that he “hopes to exchange the market for efficiency and the market for the return of investors, so as to achieve sustainable development.”
what does future growth depend on
In recent years, the growth rate of home appliance market has slowed down, and the industry has entered the stock era. According to AVC data, in 2018, the retail scale of home appliance market was 810.4 billion, with a year-on-year increase of only 1.9%. By 2019, this figure had become 803.2 billion yuan, with a year-on-year decrease of 2.2%. The impact of the epidemic has made the home appliance market worse. In 2020, the scale of China’s home appliance retail market was 705.6 billion yuan, a year-on-year decrease of 11.3%. In this context, enterprises are trying to find new growth points.
Dong Mingzhu believes that taking innovation as the driving force is the principle that Gree Electric Appliances Inc.Of Zhuhai(000651) has always adhered to, and the unity and innovation of the team is the hope of gree in the future. For the follow-up growth of Gree Electric Appliances Inc.Of Zhuhai(000651) , Dong Mingzhu said that there will be several sources. The first is the diversification of categories. She mentioned that at present, Gree’s product line has achieved full coverage. In addition to the field of air conditioning, it also covers the whole category of ice washing and household appliances, and has entered the harvest period.
When it comes to business diversification, Dong Mingzhu doesn’t taboo the controversial mobile phone business. “I still have to insist on doing it. I believe this persistence will have a harvest. How to harvest it needs time to precipitate.” Dong Mingzhu said that Gree’s mobile phone business “is not simply to seize market share, but to plan according to the layout of the whole household appliances.”
Last year, Gree Electric Appliances Inc.Of Zhuhai(000651) acquired Yinlong new energy, and then renamed it Gree titanium new energy, overweight energy storage and new energy vehicle business. At the shareholders’ meeting, some shareholders questioned the prospect of Gree titanium’s core technology and products. Dong Mingzhu responded that the future energy storage market is very large.
“In the future, it is not only the need of the engineering power system, but also the need of energy storage for every household.” In Dong Mingzhu’s view, it is “not too late” to acquire Yinlong. As long as this project can be carried out, it will become an invisible source of profits for Gree. Taking Gree Electric Appliances Inc.Of Zhuhai(000651) as an example, “energy storage batteries are used in Gree Electric Appliances Inc.Of Zhuhai(000651) many places, which brings great green value to our industrial power consumption, saving at least 60% ~ 70% more energy than daily life.”
“Gree’s new factory can be put into operation at the end of the year. After calculation, we expect to realize the return of investment cost in five years, which means that more than 20 million net profits will be converted every year in the next 20 years.” Dong Mingzhu further said.
In November last year, Gree Electric Appliances Inc.Of Zhuhai(000651) invested 3 billion yuan to take shares in Zhejiang Dun’An Artificial Environment Co.Ltd(002011) ( Zhejiang Dun’An Artificial Environment Co.Ltd(002011) . SZ) and became the controlling shareholder of the latter. Dong Mingzhu revealed that Gree was indeed considering its plan to spin off and list its equipment and industrial core components business separately. But she also stressed that the spin off is not to attract money, but to better shape category classification and brand value. “In the past, Chinese enterprises had to import the core components of the high-end automobile industry, but at present Gree Electric Appliances Inc.Of Zhuhai(000651) has been able to complete such processing, which also means that Gree has gradually entered the development stage of equipment.”
“In the process of splitting, there will be links to attract strategic investors. Strategic investors must have important strategic significance, meet the needs of the company’s future development in terms of object and election, and also meet a series of requirements of relevant laws and regulations of the CSRC.” Gree Electric Appliances Inc.Of Zhuhai(000651) relevant responsible person further added that under the framework permitted by laws and regulations, the splitting process will be promoted reasonably, legally and steadily in the future.
As of the closing on February 28, Gree closed at 36.77 yuan / share, down 1.08%, with a total market value of 217475 billion yuan.
