On the afternoon of February 28, the first extraordinary general meeting of shareholders of Gree Electric Appliances Inc.Of Zhuhai(000651) ( Gree Electric Appliances Inc.Of Zhuhai(000651) , SZ) in 2022 was held in Zhuhai Gree Electric Appliances Inc.Of Zhuhai(000651) headquarters as scheduled. The reporter of the daily economic news learned at the scene in Zhuhai that Dong Mingzhu was successfully re elected to Gree Electric Appliances Inc.Of Zhuhai(000651) the 12th non independent director with a high pass rate. This will also mean that Dong Mingzhu, 68, will hold her next three-year term as chairman in Gree Electric Appliances Inc.Of Zhuhai(000651) office.
At the investor exchange session of the shareholders’ meeting, Dong Mingzhu talked about the challenges faced by the home appliance industry in the past year. She said that the impact of the real estate market is not the most important. The rise in the price of raw materials since last year has indeed put pressure on enterprises. Despite the challenges, Dong Mingzhu said she was still confident, which came from Gree’s team and Gree’s diversified business coverage. “In addition to air conditioning, Gree ice washing and household appliances have been covered, and it is also at the stage of harvest.”
Dong Mingzhu also revealed that Gree Electric Appliances Inc.Of Zhuhai(000651) at present, several major business sectors do have the intention of spin off listing, but “we are not listed for money, and the purpose of (spin off) listing is to shape the brand value of our own category classification.”
Speaking of new energy batteries, Dong Mingzhu said: “if we succeeded in acquiring (Gree titanium) at that time, the industry has done a lot now. We delayed ourselves. But it’s not too late.”
On the evening of the 28th, Gree Electric Appliances Inc.Of Zhuhai(000651) announced that Dong Mingzhu was elected chairman of the 12th board of directors of the company at the board of directors, and the term of office was the same as that of the 12th board of directors of the company.
“we are confident in the first half of the year”
On the afternoon of February 28, 41 shareholders from all over the country came to Zhuhai Gree Electric Appliances Inc.Of Zhuhai(000651) headquarters. The extraordinary general meeting of shareholders considered eight proposals including the 2021 interim profit distribution plan and the proposal on the election of the board of directors and the nomination of non independent directors, which are related to the change of Gree Electric Appliances Inc.Of Zhuhai(000651) board of directors. Therefore, many investors came to the meeting.
The reporter of the daily economic news learned at the scene that the eight proposals under consideration were considered and passed. Dong Mingzhu was elected Gree Electric Appliances Inc.Of Zhuhai(000651) non independent director with a high pass rate, and the other four non independent directors were Zhang Wei, Deng Xiaobo, Zhang Jundu and Guo shuzhan.
On the same day, Dong Mingzhu, chairman and President of Gree Electric Appliances Inc.Of Zhuhai(000651) also attended the extraordinary general meeting. In the investor’s question session, investors first paid attention to the performance pressure Gree Electric Appliances Inc.Of Zhuhai(000651) faced. In June last year, Gree Electric Appliances Inc.Of Zhuhai(000651) released the first phase of the company’s employee stock ownership plan, which mentioned that Gree Electric Appliances Inc.Of Zhuhai(000651) this equity incentive plan, the company’s performance assessment requirements are that the net profit attributable to the parent company in 2021 and 2022 should increase by no less than 10% and 20% respectively compared with the base in 2020. Under the pressure of external changes in 2022, whether there is pressure on Gree Electric Appliances Inc.Of Zhuhai(000651) to achieve the above performance has become a concern of investors.
Dong Mingzhu admitted that the pressure brought by external changes in the past two years has been felt from different angles and positions, and household appliance enterprises bear the brunt of this pressure – first, the changes in the real estate market, and then the rise in the price of raw materials. “I don’t think the change of real estate is important. What’s more important is the increase in the price of materials. The price of some materials has increased by 50%, and even the price of some materials has increased by 100%, which really puts pressure on us.” Dong Mingzhu said, “even if we don’t raise the price of our products, we can’t cut corners on work and materials. This is our real pressure. How to ensure quality is also the integrity Gree has adhered to for so many years.”
Despite many challenges, she is still confident. “Our team is becoming more and more sound, and there is no ‘lying flat’ phenomenon in our senior management team. Senior executives are not condescending or self righteous.” In addition, Gree Electric Appliances Inc.Of Zhuhai(000651) now, in addition to air conditioning, it also covers all categories such as ice washing and household appliances. These categories have reached the harvest stage, which is very promising.
Dong Mingzhu also said that in Gree’s diversification, mobile phones should also be insisted on. “I believe there will be gains if we stick to it. I’m still very confident about how to harvest it. It’s just that we need time to precipitate. Gree’s mobile phone is not to grab the share of the mobile phone market, but to plan according to the layout of the whole household appliances.”
In addition, Gree Electric Appliances Inc.Of Zhuhai(000651) ‘s nucleic acid vehicle has been put into operation in many provinces across the country, and Gree titanium’s energy storage market is also very large.
“Gree’s production line has been fully covered, not only a single air conditioner. If Gree still has a single air conditioner, it may really be dead and have no chance. But now on the contrary, Gree’s production line is full, and the demand from all fields is particularly large.” Dong Mingzhu said.
“Indeed, since last year, the price rise of raw materials has exceeded our expectations. I think the key now is not the price rise of raw materials, but the technical upgrading of products.” “We are confident that the situation will change in the first half of the year and the second half of the year,” said Dong Mingzhu She also stressed that as long as we continue to innovate, there is always hope. There will be difficulties every day. The key is to face them with what mentality.
has plans to spin off its business segment
On the afternoon of February 28, Dong Mingzhu made it clear at the extraordinary general meeting that several major sectors of the company do have plans to be split and listed, such as motors, equipment and other sectors. She also stressed that the spin off is not to attract money, but to shape the brand value of her category.
Dong Mingzhu said that after the spin off and listing, Gree will not pursue high market value too much, “because our purpose is not to circle money, but to build our own brand.”
The reporter learned that Gree Electric Appliances Inc.Of Zhuhai(000651) combed the business sector of the company in the 2020 annual report. The company’s products include household appliances and industrial equipment. The field of household appliances includes household air conditioning, HVAC equipment, household appliances, refrigerators, washing machines and industrial products; In the field of industrial equipment, Gree Electric Appliances Inc.Of Zhuhai(000651) has six sectors: intelligent equipment, precision molds, renewable resources, semiconductors, new energy and medical health.
“In terms of equipment, we have gradually entered a stage of development. We have quietly worked on casting.” Dong Mingzhu said.
It should be noted that among the Gree Electric Appliances Inc.Of Zhuhai(000651) new independent directors, Zhang Qiusheng is an expert in the field of M & A. This time, his joining Gree Electric Appliances Inc.Of Zhuhai(000651) has also triggered speculation among investors about whether Gree Electric Appliances Inc.Of Zhuhai(000651) will have more mergers and acquisitions in the future.
In this regard, Dong Mingzhu said that the responsibilities of independent directors are more to supervise listed companies, help enterprises, promote the development of enterprises, and supervise and standardize operation.
She hopes that the four independent directors will help Gree Electric Appliances Inc.Of Zhuhai(000651) make better strategic planning and decision-making from different perspectives. In terms of restructuring, I also hope that Zhang Qiusheng will provide more and better help to Gree Electric Appliances Inc.Of Zhuhai(000651) .
“I have always advocated that our investors really use the investment mentality to recognize Gree, and I absolutely don’t agree with the speculation mentality to do stocks. That’s why we have made a three-year profit distribution plan this time. We still hope to exchange the market for benefits and the market for the return of investors.” Dong Mingzhu said.
Referring to Gree titanium, Dong Mingzhu told investors that Gree Electric Appliances Inc.Of Zhuhai(000651) has adhered to it for a long time and seen the expected situation – the market’s brand recognition of Gree titanium. She believes that energy storage is a huge market, which is needed not only in engineering and power system, but also in every family in the future. For example, in a flood, after the family has cut off water and power, the refrigerator cannot work, so energy storage equipment is needed. In her opinion, Gree titanium’s new energy battery has the advantages of 30 years of service life, high temperature and no explosion.
On the question of investors about Gree Electric Appliances Inc.Of Zhuhai(000651) taking a stake in Gree titanium, she said that after Gree Electric Appliances Inc.Of Zhuhai(000651) shareholders’ meeting rejected the acquisition of Gree titanium, Gree Electric Appliances Inc.Of Zhuhai(000651) still had to take a stake because of a very good acquisition opportunity. The debt problem of the original shareholders of Gree titanium led to the judicial auction of the shares of Gree titanium. “1.8 billion yuan, which may not be able to build a factory. I think it’s very valuable. It’s the best time.”
“At the next shareholders’ meeting, we should be able to speak with (Gree titanium’s) performance. It’s not that time yet.” Dong Mingzhu said. She told investors that in her opinion, the most important and essential thing of batteries is safety. “Technology needs continuous innovation, and our bottom line is to ensure safety. Gree Electric Appliances Inc.Of Zhuhai(000651) pay attention to technological innovation, and I think (lithium titanate battery) is very promising.”
