GREE(000651)2023-06-08 16:00Financial Performance - Operating revenue in 2022 reached RMB 188.99 billion, a 0.60% increase compared to 2021[15] - Net profits attributable to shareholders in 2022 were RMB 24.51 billion, a 6.26% increase year-over-year[15] - Net cash flows from operating activities surged to RMB 28.67 billion, a 1,413.35% increase compared to 2021[15] - Basic earnings per share increased by 9.65% to RMB 4.43 in 2022[16] - Total assets grew by 11.08% to RMB 355.02 billion at the end of 2022[16] - Total operating revenue in 2022 reached RMB 190,151 million, a year-on-year increase of 0.26%, with net profit attributable to the parent company at RMB 24,507 million, up 6.26% year-on-year[33] - Total operating revenue in 2022 reached 188.99 billion yuan, a year-on-year increase of 0.60%[48] - Manufacturing industry revenue accounted for 81.05% of total operating revenue, growing 5.75% year-on-year to 153.17 billion yuan[48] - Air conditioner revenue increased by 2.39% year-on-year to 134.86 billion yuan, representing 71.36% of total operating revenue[48] - Industrial product revenue surged 137.88% year-on-year to 7.60 billion yuan[48] - Domestic sales of main business grew 6.21% year-on-year to 129.90 billion yuan, accounting for 68.74% of total operating revenue[48] - Export sales of main business increased by 3.26% year-on-year to 23.27 billion yuan[48] - Net cash flows from operating activities increased by 1,413.35% to RMB 28.67 billion in 2022[71] - Net cash flows from investment activities decreased by 224.55% to RMB -37.06 billion in 2022[71] - Net cash flows from financing activities increased by 139.17% to RMB 9.92 billion in 2022[71] - Monetary funds increased by 7.77% to RMB 157.48 billion, accounting for 44.36% of total assets[74] - Short-term borrowings increased by 6.26% to RMB 52.90 billion, primarily to meet daily production and operation requirements[75] - Total restricted assets at the end of the reporting period amounted to RMB 74.97 billion, with monetary funds accounting for RMB 49.22 billion[80] - Investment during the reporting period decreased by 25.81% to RMB 13.47 billion compared to the same period last year[81] - Significant equity investment in Zhejiang DunAn Artificial Environment Co., Ltd. amounted to RMB 2.42 billion, representing a 29.48% shareholding[82] - Securities investments totaled RMB 11.50 billion, with a book value of RMB 10.92 billion at the beginning of the period and RMB 11.41 billion at the end[84][85] - The Ronghui Single Asset Management Plan had an initial investment cost of RMB 4.37 billion and a book value of RMB 4.40 billion at the end of the period[84] - WINGTECH stock investment showed a loss of RMB 2.75 billion in fair value changes during the reporting period[84] - San'an Optoelectronics stock investment recorded a loss of RMB 2.34 billion in fair value changes during the reporting period[84] - Derivative investments resulted in a total loss of RMB 43.12 million during the reporting period[87] - The proportion of derivative investment amount at the end of the period to net assets was -0.19%[87] - Actual profits from futures hedging contracts during the report period were RMB 56.84 million, and from forward financial contracts were RMB 5.31 million[88] - Loss from changes in fair value of derivatives during the report period was RMB 431.15 million[88] - Zhuhai Gree Group Finance Company Limited, a subsidiary, reported operating revenue of RMB 1.36 billion and net profits of RMB 319.95 million[94] - Gree (Hefei) Electric Appliances, a subsidiary, reported operating revenue of RMB 9.56 billion and net profits of RMB 656.93 million[94] - Zhuhai Landa Compressor Co., Ltd., a subsidiary, reported operating revenue of RMB 11.19 billion and net profits of RMB 652.90 million[95] - Zhejiang DunAn Artificial Environment Co., Ltd. was acquired, impacting the company with RMB 719.77 million[96] - The company distributed a cash dividend of RMB 5,613,841,613 in the 2022 mid-term equity distribution plan[160] - The company distributed a total of RMB 11,073,355,466 in cash dividends in the 2021 annual equity distribution plan[160] - The company plans to distribute a cash dividend of RMB10 per 10 shares, totaling RMB5,613,841,613, with a share capital base of 5,613,841,613 shares[162][163] - The total distributable profits for the period amounted to RMB52,303,785,737.73, with 100% of the profit distribution allocated to cash dividends[163] - The company's employee stock ownership plan involved 4,845 employees holding a total of 46,334,473 shares, representing 0.82% of the total share capital[165] - The company recognized total expenses of RMB370,227,884.10 for equity-settled share-based payments in 2022[168] Market and Industry Trends - The domestic sales volume of the household appliance industry in 2022 was 730.72 billion yuan, a year-on-year decrease of 9.5%[25] - The export value of China's household appliances in 2022 was 568.16 billion yuan, a year-on-year decrease of 10.9%[25] - The global market size of household air conditioners in 2022 was 160 million sets, a year-on-year decrease of 3.1%[25] - The domestic market size of household air conditioners in 2022 was 80.22 million sets, a year-on-year decrease of 1.6%[25] - The online retail sales volume of China's household appliance industry in 2022 reached 422.66 billion yuan, contributing 57.8% to total sales[25] - The market penetration rate of new energy passenger vehicles in 2022 reached 27.6%, with predictions to increase to 36% in 2023[26] - The installed capacity of new energy storage projects in China reached 8.7 GW by the end of 2022, a year-on-year increase of over 110%[26] - Gree's central air conditioner market size in 2022 exceeded 20 billion yuan, maintaining a leading position for eleven consecutive years[27] - Gree air conditioners ranked first in the domestic market with a 33.9% share, maintaining the leading position for 28 years[34] - Gree's air source water heater achieved a 23.4% online retail market share in 2022, ranking second in the industry[36] - DunAn Environment's market share of cut-off valves ranked first globally, four-way valves ranked second, and electronic expansion valves ranked third[38] - GREE's online market share increased to 28.9% in 2022, driven by deep cooperation with e-commerce platforms and the establishment of nearly 600 Gree + JD joint stores[44] - The company's smart home products and IoT platform have been accessed into more than 100,000 devices, serving operators nationwide[44] Research and Development - The company has accumulated over 100,000 patents, ranking among the top 10 in China's invention patent authorization for seven consecutive years[29] - In 2022, the company was listed in the 2021 National Enterprise Standard "Leader" with 19 product categories, 385 product models, and 24 standards[30] - The company has established 16 research institutes, 152 research departments, and 1,411 laboratories, including 1 State Key Laboratory[29] - The company has 1,041 sets of nationally recognized laboratory equipment and 11 laboratories certified by globally renowned third-party institutions[30] - The company has developed 1 kg−600 kg industrial robot products, including GR35/1.8, GR50_2.0, and GR200/3.2 robots, suitable for various industrial scenarios[31] - The company launched the Gree GMV 6S+ artificial intelligence VRF, which combines AI with VRF technology, significantly improving system energy efficiency[34] - Gree introduced multiple industry-leading heat pump technologies, including the K-series Hongbing air-source heat pump heat unit, expanding applications in cold regions[34] - The company developed a full cold chain series of products, including an integrated photovoltaic direct drive inverter refrigeration unit, providing continuous power for refrigeration through photovoltaic power generation[35] - Gree provided over 40,000 sets of air conditioning equipment for the Qatar World Cup venues, including split units, GMVs, and fan coil units[35] - The company launched the JQF series of air conditioners for 5G base stations, ensuring stable operation and supporting 5G development[35] - The company introduced the Kinghome refrigerator with ultra-low temperature freezing at -38°C, equipped with cell micro-dormancy moisturizing and refreshing technology[36] - Gree's V-Lasso series antivirus purifier won multiple awards, including the first prize of the 2022 Quality Innovation Award[36] - Gree's heat pump washer and dryer combo products feature a 100% self-developed soft drying customized dual rotor inverter compressor and low-frequency torque control technology, with the latter winning the "National Science and Technology Progress Award"[37] - In 2022, Gree launched the Ruchu heat pump washer dryer combo, featuring embedded installation, heat pump drying, steam care technology, and intelligence, as well as the upgraded Ruxin series and Zhibo washing machine with AI decision-making capabilities[37] - Sales of servo motors increased nearly threefold in 2022, and the sales of DC thin film capacitors increased by three times year-on-year[37] - Gree developed a high-temperature refrigeration enthalpy-increasing rotor compressor, achieving an 8.8% increase in refrigeration capacity at 46°C, 14.7% at 48°C, and 23.6% at 54°C[37] - The new generation of variable capacity rotor compressors for household VRF increased APF by 8%, improved low load operation by 20%, and doubled cooling or heating speed at startup[37] - Gree's "Key Technology and Application of High-efficiency Heat Pump Based on Thermal Mass" project solved issues in the domestic heat pump floor heating industry, reaching international leading levels[39] - Gree led the formulation of 756 international and national standards, with the 2022 international standard "Photovoltaic Direct-driven Appliance Controllers − Part 2: Operation Modes and Graphic Display" officially released[39] - Gree Electric Appliances applied for a total of 12,520 patents in 2022, including 7,508 invention patent applications and 3,270 invention patent authorizations[40] - The company launched a "recycling of used air conditioners" program, targeting the recycling of 5.12 million household appliances in 2022[40] - Gree products won 12 international design awards in 2022, including 1 German iF Design Award, 6 Red Dot Design Awards, and 5 American IDEA Awards[40] - Gree's photovoltaic air conditioning system completed over 12,000 projects globally, covering various climate zones and achieving "zero carbon source" technology[41] - The company's intelligent equipment division developed over 100 product specifications, including CNC machine tools and industrial robots, with breakthroughs in overseas markets[41] - Gree's lithium-titanate battery technology won the 23rd China Patent Award, marking a significant achievement in the lithium-ion battery industry[42] - The company's new energy vehicles (NEVs) operated in over 230 cities across China, with products winning multiple industry awards in 2022[42] - Gree's energy storage system was awarded the "2023 'Polaris Cup' Energy Storage Influential Battery Supplier" and received the Guangdong Science and Technology Progress Award[42] - The company's hydrogen fuel cell bus was named "Hydrogen Fuel Cell Bus of the Year" by the Qingyun Cup in 2022[42] - GREE Altairnano has applied for a total of 3,463 patents by the end of 2022, achieving recognition as a "National Intellectual Property Demonstration Enterprise"[43] - The company's 32-bit MCU series achieved annual consumption exceeding 10 million units, widely used in consumer electronics, household products, and industrial sensing[43] - GREE's power semiconductor products have cumulative shipments exceeding 100 million units, recognized as "Famous High-tech Products of Guangdong Province in 2022"[43] - In 2022, the company disposed of 6.7 million units of waste household appliances and processed over 46.7 million units of various waste electrical and electronic products[43] - The new generation of distributed air-supply zero temperature-difference heating-and-cooling distribution technology project was completed, achieving an annual performance factor (APF) of 4.56, 8.6% higher than the national standard[62] - The key technology and application of new complete refrigeration equipment for heat injury control in deep mines was completed, reducing water consumption by more than 90% and improving reliability[64] - The high-efficiency heat pump based on floor heat storage project achieved more than 20% energy saving in operation[66] - The circulating cooling fan project adopted composite technology for air circulation, cooling, and humidification, achieving three-in-one functionality[66] - The company developed high-efficiency heat external units, hot water generators, and floor heating adapters, enhancing its product portfolio[68] - The company improved drying efficiency by 30% through compressor direct cooling and evaporator spray load reduction technologies[69] - The company achieved a leading position in high-speed scroll compressors, meeting APF Level 1 energy efficiency for commercial air conditioners[69] - The number of R&D personnel decreased by 8.82% to 12,977 in 2022, with a slight increase in the proportion of R&D personnel to 17.93%[69] - R&D investment decreased by 1.52% to RMB 6.43 billion in 2022, with a capitalization rate drop of 36.06%[70] Corporate Governance and Leadership - The company has no controlling shareholder or actual controller after the share transfer in 2020[12] - The company held its 2021 Annual General Meeting of Shareholders with a 41.42% investor participation rate on June 7, 2022[109] - Dong Mingzhu, Chairperson & President, holds 44,488,492 shares as of the end of the reporting period[112] - Ms. Dong Mingzhu, Chairperson and President of Gree Electric Appliances, holds a master's degree and has extensive experience in sales and management roles within the company[115] - Mr. Zhang Wei, Secretary of the Party Committee and Director of Gree Electric Appliances, joined the company in 1999 and has held various leadership positions, including Vice President of Gree Group[117] - Mr. Guo Shuzhan, a director of Gree Electric Appliances, has been serving as the Chairman and General Manager of Jinghai Internet Technology Development Co., Ltd. since August 2006[118] - Mr. Deng Xiaobo, Vice President and Secretary of the Board of Directors, joined Gree Electric Appliances in November 2020 and has been serving as a director since February 2022[120] - Ms. Liu Shuwei, an independent director, is a renowned scholar in finance and has been serving as an independent director since January 2019[120] - Mr. Xing Ziwen, an independent director, is a professor at Xi'an Jiaotong University and has won multiple national and provincial science and technology awards[121] - Mr. Wang Xiaohua, an independent director, is a first-grade lawyer in Guangdong Province and has over 34 years of legal practice experience[122] - Mr. Zhang Qiusheng, an independent director, is a professor at Beijing Jiaotong University and has published over 30 works on mergers and acquisitions[123] - Mr. Zhuang Pei, Vice President of Gree Electric Appliances, has been serving in this role since April 2003 and has extensive experience in the company[126] - Mr. Liao Jianxiong, Finance Chief and President Assistant, joined Gree in May 1993 and has held various financial leadership roles within the company[130] - Total pre-tax remuneration for directors, supervisors, and senior executives in 2022 amounted to 315.831 million yuan, with Chairperson & President Dong Mingzhu receiving 114.2 million yuan[138][139] - The company implemented a performance appraisal system for senior executives, focusing on ethics, competence, attendance, and performance, with a combination of material and spiritual incentives[136] - The 12th Board of Directors held 10 meetings in 2022, with key resolutions including the approval of the 2022 First Quarter Report and Third Quarter Report[141][142] - Independent directors received remuneration ranging from 16.67 million yuan to 19.17 million yuan, with Zhang Qiusheng receiving 16.67 million yuan[139] - Vice President and Chief Engineer Tan Jianming received a total pre-tax remuneration of 40 million yuan, the highest among vice presidents[139] - The company emphasized the timing and frequency of rewards in its material incentive system, aiming to reasonably control reward grades and widen reward gaps[136] - The Board of Directors appraised senior executives annually, focusing on corporate objectives, dedication, social responsibility, and career achievement[136] - Employee supervisor Wang Fawen received a total pre-tax remuneration of 6.831 million yuan, the lowest among listed executives[139] - The company's remuneration system adhered to principles of reasonableness, fairness, and justice, with a focus on both material and spiritual incentives[136] - Finance Chief and President Assistant Liao Jianxiong received a total pre-tax remuneration of 11.646 million yuan[139] Environmental and Social Responsibility - The company and its subsidiaries strictly comply with environmental protection laws and regulations, including the Environmental Protection Law of the People's Republic of China[178] - Gree Electric Appliances, Inc. of Zhuhai's pollution discharge permit is valid from December 22, 2022, to December 21, 2027[178] - The total discharge of COD (Chemical Oxygen Demand) by Gree Electric Appliances, Inc. of Zhuhai is 5.2496 t/year, well below the approved limit of 26.4 t/year[180] - The total discharge of ammonia nitrogen by Gree Electric Appliances, Inc. of Zhuhai is