Dong Mingzhu submits the first transcript of Zhili Gree

Not surprisingly, Gree Electric Appliances successfully achieved its earlier scheduled target of 100 billion.

This is the first annual transcript of Dong Mingzhu’s annual success after he took control of Gree last May. Gree Electric Co., Ltd. released its 2012 performance report on the evening of the 17th. Last year, Gree achieved operating revenue of 10.084 billion yuan, a year-on-year increase of 19.84%, and net profit of 7.378 billion yuan, a year-on-year increase of 40.88%.

Gree became the first domestic appliance company to rely on a single category of products to achieve 100 billion revenue.

Affected by this good news, Gree's stock price opened 27.4 yuan/share higher on the previous day, leading the appliance sector to close at 28.3 yuan/share, or more than 6%.

Net profit rose by 40%

According to the report, Gree Electric Appliances achieved operating revenue of RMB 100.08 billion in 2012, a year-on-year increase of 19.84%, and a net profit attributable to parent company of RMB 7.38 billion, an increase of 40.88% year-on-year, and a basic earnings per share of RMB 2.47. Among them, operating profit and total profit increased by 77.41% and 39.07% respectively.

The net profit, operating profit, and total profit have all increased by more than 30%. In response, Gree announced that the growth in performance was mainly attributed to the company’s insistence on independent innovation, technological innovation as the driving force, and the company’s technological leadership and quality brand. Advantages, advantages of the entire industry chain, and cost advantages of scale.

In addition, through the promotion of internal management, deepening the management of sales channels, and strengthening the export of self-owned brands, the overall profitability of the company has been comprehensively enhanced.

Liu Buchen, an observer of the household electrical appliance industry, predicted that Gree will become the best home appliance company in 2012 and “does not rule out that its net profit will also be the highest in the industry.”

According to statistics, in the first three quarters of 2012, the income from the home appliances sector was 403.28 billion yuan. Gree's total revenue for the first three quarters was 77,165 million yuan, accounting for one-fifth of the total revenue of 51 home appliance listed companies; the net profit of 53 billion yuan accounted for more than 30% of the industry.

Global air-conditioning industry concentrated in the Chinese market

Liu analysis said that in 2013 the global air-conditioning industry will be further concentrated in the Chinese market, Japan and South Korea companies have gradually contracted their air-conditioning front, and with the exit of the state subsidy policy, Gree, Haier and other strong brands will continue to increase market share.

"When Gree has invested heavily in R&D, it has now reached the time of 'picking peaches'. It is expected that Gree's revenue will increase by at least RMB 20 billion in 2013."

Gree reported outstanding performance at the same time, the capital market also used the stock price position, the day before Gree's stock price opened 27.4 yuan higher/shares, led the home appliance sector, an increase of 7.48%, to close at 28.3 yuan / share, an increase of 6%.

Orient Securities commented: “In 2013, the improvement of industry energy efficiency standards will bring a wave of product upgrades to the industry. Coupled with Gree’s introduction of multiple high-end inverter products in the second half of 2012, we believe that the company’s higher profitability is expected to increase. Can be maintained."