Asia300

Gree Electric Appliances, Inc. of Zhuhai

China

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Jul 21, 2017
Prev close: 40.71
Jul 21, 2017
Market cap:
Market cap(USD):
244,900M
36,185.6M
Shares: 6,015.73M

Currency in CNY

Company profile

Market(Ticker): SHE(000651)
Sector:
Industry:
Consumer Durables
Electronics/Appliances
Full time employees: 71,610

Business summary

Gree Electric Appliances, Inc. of Zhuhai engages in the research, development, manufacture, marketing, and sale of air conditioners and other household electric appliances. Its business activities include the manufacture and sale of pumps, valves, compressors, packaging equipment, motors, transmissions, control equipment, wires, cables, fiber optic cables, electrical equipment, and household electrical appliances; wholesale of machinery equipment, hardware, and electronic products; and the retail of household appliances and electronic products. The company was founded on December 13, 1989 and is headquartered in Zhuhai, China.

Company background

Gree Electric Appliances is China's biggest air conditioner maker and one of the largest in the sector worldwide in terms of sales. It has formed a partnership with Daikin Industries of Japan, the world's largest air conditioner maker. In addition to its core Gree-brand air conditioners, it produces household appliances such as electric fans, water purifiers, air purifiers, rice cookers and humidifiers under the Tosot brand. The company is fiercely competing with fellow Chinese air conditioner maker Midea Group over market share in China.

Founded in 1991, Gree Electric is based in Zhuhai, Guangdong Province. Chairwoman Dong Mingzhu is a well-known female executive in China, and often appears in TV commercials and on programs. Many Chinese women look up to her as a role model. Gree Electric listed on the Shenzhen Stock Exchange in 1996. A state-run entity owned by the Zhuhai municipal government owns 18% of the company, making it the largest shareholder.

In March 2015, the company announced it will enter the smartphone market. It plans to launch Gree-brand smartphones by the end of 2015. It has set a sales target of 100 million units a year in a bid to go toe-to-toe with major smartphone makers in the near future.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 108,682.69M
Gross profit 35,703.40M
Operating income 13,662.33M
Income before tax 18,523.15M
Net income 15,420.96M
EBITDA 15,457.90M
Diluted EPS 2.56
Dividends per share 1.8
Total assets 182,369.70M
Total liabilities 127,274.02M
Total equity 53,863.95M
Operating cash flow 15,124.68M

Currency in CNY

Revenue 16,359.10M
Gross profit 5,374.13M
Operating income 2,056.47M
Income before tax 2,788.13M
Net income 2,321.19M
EBITDA 2,326.75M
Diluted EPS 0.38
Dividends per share 0.27
Total assets 26,242.13M
Total liabilities 18,314.12M
Total equity 7,750.76M
Operating cash flow 2,276.59M

Currency in USD

Valuation measures

Dec 2016

PER 9.61
ROA 8.96%
ROE 30.42%
Operating margin 12.57%
Profit margin 14.18%

Key executive

  • Chairman & President: Ming Zhu Dong
  • CFO, Board Secretary & Vice President: Jing Dong Wang
  • Director & Vice President: Hui Huang
  • Vice President: Pei Zhuang
  • Securities Representative: Yong Xing Yang

Share holders

  • Zhuhai State-Owned Assets Supervision & Admin. Commission(18.3%)
  • Hebei Jinghai Guaranty & Investment Co. Ltd.(8.9%)
  • China Securities Finance Corp. Ltd.(2.8%)
  • China Investment Corp. (Investment Management)(1.4%)
  • Qian Hai Life Insurance Co. Ltd.(1.0%)
  • Yale University Endowment(0.8%)
  • Hillhouse Capital Management Ltd. (China)(0.7%)
  • DONG MING ZHU(0.7%)
  • First State Investments (Hong Kong) Ltd.(0.6%)
  • China Southern Asset Management Co., Ltd.(0.4%)

Address

  • Website: http://www.gree.com.cn
  • Address: Jinji West Road, Qianshan District, Zhuhai, 519070, China
  • Phone: +86.756.861.4883

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