GREE(000651)2023-04-28 16:00Revenue and Financial Performance - Total operating revenue for 2022 reached 188.99 billion RMB, a slight increase of 0.60% compared to 2021[90] - Manufacturing sector revenue grew by 5.75% to 153.17 billion RMB, accounting for 81.05% of total revenue[90] - Air conditioning product revenue increased by 2.39% to 134.86 billion RMB, representing 71.36% of total revenue[90] - Domestic sales revenue rose by 6.21% to 129.90 billion RMB, accounting for 68.74% of total revenue[90] - Gross margin for the manufacturing sector improved by 0.82% to 31.07%[91] - Sales expenses decreased by 2.56% year-over-year to RMB 11.29 billion[101] - Management expenses increased by 30.03% year-over-year to RMB 5.27 billion, influenced by non-consolidated enterprise mergers[101] - R&D expenses slightly decreased by 0.24% year-over-year to RMB 6.28 billion[101] - Net cash flow from operating activities increased by 1,413.35% to RMB 28.67 billion, driven by increased cash received from sales of goods and services[106] - Net cash flow from investing activities decreased by 224.55% to RMB -37.06 billion, primarily due to reduced cash received from other investing activities[106] - Net cash flow from financing activities increased by 139.17% to RMB 9.92 billion, mainly due to increased cash from borrowings and reduced payments related to financing activities[106] - Monetary funds increased by 7.77% to RMB 157.48 billion, accounting for 44.36% of total assets[107] - Short-term borrowings increased by 6.26% to RMB 52.90 billion, mainly to meet daily production and operational funding needs[107] - Long-term borrowings increased by 5.87% to RMB 30.78 billion, primarily to fund the construction of long-term assets such as fixed assets[107] - Total financial assets decreased by RMB 5.61 billion in fair value, with a significant decline in other equity instrument investments by RMB 5.47 billion[109] - Total restricted assets at the end of the reporting period amounted to RMB 74.97 billion, with RMB 49.22 billion in restricted cash due to statutory reserve requirements and guarantees[111] - The company's total investment in the reporting period was RMB 13.47 billion, a decrease of 25.81% compared to the previous year's RMB 18.15 billion[112] - The company's total investment income for the reporting period was RMB 91.75 million[115] - The company's total derivative investment for hedging purposes amounted to RMB 242.7 million, with a fair value change loss of RMB 431.15 million during the reporting period[118] - The actual profit and loss from futures hedging contracts during the reporting period was RMB 56.84 million, while the actual profit and loss from forward financial contracts was RMB 5.31 million[118] - Total cash dividends distributed in 2022: RMB 5,613,841,613, with a dividend of RMB 10 per 10 shares[166] - Cash dividend distribution ratio: 100% of the total profit distribution, meeting the minimum requirement of 80% for companies in the mature stage without major capital expenditures[167] - Total cash dividends distributed in 2021: RMB 16,610,033,199, including RMB 5,536,677,733 for the mid-year and RMB 11,073,355,466 for the annual distribution[164] Subsidiaries and Investments - The company acquired a 29.48% stake in Zhejiang Dunan Artificial Environment Co., Ltd. for 2.42 billion RMB[95] - Two subsidiaries, Shanxi Yinlong Guangtong New Energy Vehicle Sales Co., Ltd. and Songliang (Shenzhen) South China Agricultural Development Co., Ltd., were liquidated[96] - Seven new entities were established in 2022, including Gree Titan New Energy Co., Ltd. and Gree Digital Technology Co., Ltd.[97] - A significant equity investment of RMB 2.42 billion was made in Zhejiang DunAn Artificial Environment Co., Ltd., acquiring a 29.48% stake[113] - The company's total securities investment portfolio had an ending book value of RMB 11.41 billion, with a total initial investment cost of RMB 11.50 billion[115] - The company's investment in Wintech (600745) had an ending book value of RMB 1.89 billion, with a significant fair value loss of RMB 2.75 billion during the reporting period[115] - Investment in Sanan Optoelectronics (600703) had an ending book value of RMB 1.97 billion, with a fair value loss of RMB 2.34 billion during the reporting period[115] - The company's investment in Shanghai Highly (600619) had an ending book value of RMB 522.21 million, with a fair value loss of RMB 236.32 million during the reporting period[115] - The company's bond investments had a total ending book value of RMB 1.07 billion, with a fair value loss of RMB 147.87 million during the reporting period[115] - The company's total financial assets investment incurred a fair value loss of RMB 5.46 billion during the reporting period[115] - The company's subsidiary, Gree Electric Appliances (Hefei) Co., Ltd., generated a net profit of RMB 656.93 million from air conditioning manufacturing[122] - The company's subsidiary, Zhuhai Gree New Yuan Electronics Co., Ltd., achieved a net profit of RMB 198.57 million from capacitor manufacturing[122] - The company's subsidiary, Zhuhai Gree Finance Co., Ltd., recorded a net profit of RMB 319.95 million from financial services[122] - The company's subsidiary, Zhuhai Gree Electric Co., Ltd., reported a net profit of RMB 54.12 million from enameled wire manufacturing[122] - The company's subsidiary, Zhuhai Lingda Compressor Co., Ltd., earned a net profit of RMB 652.9 million from compressor manufacturing[122] - The company's subsidiary, Zhuhai Kaibang Motor Manufacturing Co., Ltd., made a net profit of RMB 12 million from motor manufacturing[123] - The company's subsidiary, Gree Electric Appliances (Zhongshan) Small Home Appliance Manufacturing Co., Ltd., achieved a net profit of RMB 33.8 million from small home appliance manufacturing[123] - The company's acquisition of Zhejiang Dunan Artificial Environment Co., Ltd. contributed RMB 719.77 million to the overall performance[124] Research and Development - The new generation distributed air supply technology achieved a 8.6% higher annual energy consumption efficiency (APF) of 4.56 compared to the national standard[102] - Deep mine heat hazard control technology reduced water consumption by over 90% and achieved a thermal comfort level of Class II[102] - High-efficiency heat pump technology achieved over 20% energy savings in operation[103] - Heat pump dryer technology improved drying efficiency by 30% and reduced damage to high-end fabrics[103] - -38°C ultra-freezing preservation technology is in the small-batch trial production phase, aiming to better preserve the original color and aroma of meat[103] - R&D personnel decreased by 8.82% to 12,977 in 2022, with the proportion of R&D personnel increasing slightly by 0.55% to 17.93%[104] - R&D investment decreased by 1.52% to RMB 6.43 billion, accounting for 3.40% of operating revenue, down 0.08% year-on-year[104] - Capitalized R&D investment decreased significantly by 36.06% to RMB 148.31 million, mainly due to reduced capital investment in fixed assets for R&D activities[104] Corporate Governance and Leadership - The company maintains a robust corporate governance structure, ensuring independence in operations, assets, personnel, and finance from its controlling shareholder[137] - The company held multiple shareholder meetings in 2022, with participation rates ranging from 38.55% to 43.81%, reflecting active investor engagement[138][139] - Chairman and President Dong Mingzhu holds 44,488,492 shares, with no changes in shareholding during the reporting period[140] - Total shares held by directors, supervisors, and senior management at the end of the period amounted to 52,355,919 shares, with no changes in shareholding during the reporting period[140] - Dong Mingzhu was re-elected as Chairman and President on February 28, 2022[141] - Zhang Wei was re-elected as Party Secretary and Director on February 28, 2022[141] - Deng Xiaobo was re-elected as Director, Vice President, and Board Secretary on February 28, 2022[141] - Guo Shuzhan was re-elected as Director on February 28, 2022[141] - Liu Shuwei was re-elected as Independent Director on February 28, 2022[141] - Wang Xiaohua was re-elected as Independent Director on February 28, 2022[141] - Xing Ziwen was re-elected as Independent Director on February 28, 2022[141] - Zhang Qiusheng was elected as Independent Director on February 28, 2022[141] Employee and Talent Management - Total number of employees at the end of the reporting period: 72,380, including 21,994 from the parent company and 50,386 from major subsidiaries[160] - Employee composition: 51,931 production personnel, 3,002 sales personnel, 12,977 technical personnel, 1,126 financial personnel, and 3,344 administrative personnel[160] - Education level of employees: 16,893 with bachelor's degree or above, 11,999 with college degree, and 43,488 with secondary education or below[160] - Number of newly assessed skilled talents: over 14,000, including 8 Guangdong Provincial Technical Experts, 2 Southern Guangdong Technical Experts, and 232 Zhuhai Craftsmen[163] - Total number of technical workers: over 30,000, with 948 internal technical experts and 548 young outstanding talents[162] - Employee training and development: Focus on high-quality talent supply through campus recruitment, "Gri Order Classes," and the establishment of "Gri Vocational College"[162] - Employee benefits and incentives: Implementation of employee stock ownership plans, talent subsidies, and housing benefits to enhance employee satisfaction and career development[163] Environmental and Sustainability - Industrial wastewater discharge outlet WS39214A has a phosphate concentration of 0.5 mg/L, with an annual discharge of 0.0103 tons[182] - Industrial wastewater discharge outlet WS39214A has an ammonia nitrogen concentration of 0.01 mg/L, with an annual discharge of 0.0010 tons[182] - Industrial wastewater discharge outlet WS39214A has a total nitrogen concentration of 0.025 mg/L, with an annual discharge of 0.0009 tons[182] - Industrial wastewater discharge outlet WS39214A has a petroleum concentration of 2 mg/L, with an annual discharge of 0.0087 tons[182] - Industrial wastewater discharge outlet WS39214A has a biochemical oxygen demand (BOD5) concentration of 0.06 mg/L, with an annual discharge of 0.0003 tons[182] - Domestic wastewater discharge outlet DW002 has a phosphate concentration of 0.5 mg/L[182] - Domestic wastewater discharge outlet DW002 has an ammonia nitrogen concentration of 0.01 mg/L[182] - Domestic wastewater discharge outlet DW002 has a total nitrogen concentration of 0.025 mg/L[182] - Domestic wastewater discharge outlet DW002 has a petroleum concentration of 1.24 mg/L[182] - The total VOCs emission from the paint immersion exhaust outlet FQ39214B is 3.86 mg/m³, with an annual discharge of 0.0312 tons[183] - Benzene emissions detected in Plant 1 at 0.01 mg/m³ [185] - Benzene emissions detected in Plant 3 at 0.02 mg/m³ [191] - Benzene emissions detected in Plant 3 at 0.02 mg/m³ [194] - Benzene emissions detected in Plant 1 at 0.01 mg/m³ [195] - Toluene emissions detected in Plant 1 at 0.02 mg/m³ [199] - Annual benzene emission limit set at 0.0012 tons/year according to Guangdong standards [198] - Annual benzene emission limit set at 0.0216 tons/year according to Guangdong standards [198] - No benzene emissions detected in multiple samples across Plant 1 and Plant 3 [186, 187, 188, 189, 190, 192, 193] - No toluene emissions detected in Plant 1 [200] - 2022排污许可未核定 [197] Market and Competitive Risks - The company faces risks from macroeconomic fluctuations, which may impact consumer spending on home appliances, as well as from real estate policies affecting demand[133] - Raw material costs, including copper, steel, aluminum, and plastics, account for a significant portion of the main business costs, and price fluctuations in these materials could affect profitability[134] - The company is exposed to risks from intensified market competition, overseas political instability, trade frictions, and exchange rate fluctuations, which could impact export competitiveness and financial costs[135] Global and Technological Expansion - The company has established cooperation with over 190 countries and regions, primarily along the "Belt and Road" initiative, fostering mutual development and win-win outcomes[127] - The company focuses on key core technologies, continuously upgrading its global certified technical team and advanced experimental facilities to ensure product technology is independently controllable[128] - The company is accelerating digital transformation by leveraging IoT, AI, big data, and cloud technologies to enhance automation and efficiency in production, aiming to build intelligent manufacturing solutions[130] Energy and Operational Costs - Energy costs increased significantly by 30.28% to 923.52 million RMB[94]