Gree Electric Appliances, Inc. of Zhuhai

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.

Business Summary

Gree Electric Appliances, Inc. of Zhuhai engages in the research and development, manufacture, and sale of air conditioners. Its products include residential and commercial air conditioners, air to water heat pumps, home appliances, refrigerators, smartphones, and industrial products. The company was founded by Jiang Hong Zhu on December 13, 1989 and is headquartered in Zhuhai, China.

Financial Highlights

Dec 2021	CNY	USD
Revenue	188,577.36M	29,239.70M
Gross Profit	45,801.67M	7,101.74M
Operating income	23,193.65M	3,596.27M
Income before tax	26,751.64M	4,147.95M
Net income	23,063.73M	3,576.12M
EBITDA	26,795.22M	4,154.71M
Diluted EPS	4.03	0.62
Dividends Per Share	3	0.46
Total Assets	319,598.18M	50,146.02M
Total liabilities	208,976.64M	32,789.13M
Total equity	103,651.65M	16,263.29M
Operating cash flow	1,056.34M	163.79M
	Currency in CNY	Currency in USD

Historical Data

CNY | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	148,506.51M	198,282.10M	198,965.34M	169,532.81M	188,577.36M
Gross Profit	48,747.22M	60,001.93M	55,354.79M	44,998.81M	45,801.67M
Operating income	25,750.96M	29,548.78M	27,147.43M	21,915.76M	23,193.65M
Income before tax	26,609.24M	31,272.94M	29,373.69M	26,273.62M	26,751.64M
Net income	22,400.48M	26,202.78M	24,696.64M	22,175.10M	23,063.73M
EBITDA	27,783.96M	32,659.11M	30,340.33M	25,504.47M	26,795.22M
Diluted EPS	3.72	4.35	4.10	3.70	4.03
Dividends Per Share	0	2.10	1.20	4	3
Total Assets	214,987.90M	251,116.49M	282,972.15M	279,250.26M	319,598.18M
Total liabilities	148,006.98M	158,353.15M	170,683.99M	161,932.74M	208,976.64M
Total equity	65,614.91M	91,209.42M	110,153.57M	115,190.21M	103,651.65M
Operating cash flow	16,735.64M	27,520.28M	28,320.63M	19,544.04M	1,056.34M

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	21,974.20M	29,965.50M	28,794.43M	24,562.01M	29,239.70M
Gross Profit	7,213.02M	9,067.83M	8,010.99M	6,519.45M	7,101.74M
Operating income	3,810.31M	4,465.57M	3,928.79M	3,175.16M	3,596.27M
Income before tax	3,937.31M	4,726.14M	4,250.98M	3,806.53M	4,147.95M
Net income	3,314.55M	3,959.91M	3,574.11M	3,212.74M	3,576.12M
EBITDA	4,111.13M	4,935.62M	4,390.87M	3,695.10M	4,154.71M
Diluted EPS	0.55	0.65	0.59	0.53	0.62
Dividends Per Share	0	0.31	0.17	0.57	0.46
Total Assets	33,014.11M	36,575.51M	40,623.64M	42,700.12M	50,146.02M
Total liabilities	22,728.34M	23,064.38M	24,503.49M	24,761.11M	32,789.13M
Total equity	10,076.00M	13,284.79M	15,813.71M	17,613.72M	16,263.29M
Operating cash flow	2,476.33M	4,159.01M	4,098.58M	2,831.55M	163.79M

Valuation Measures

Dec 2021
PER	9.17
ROA	7.70%
ROE	21.07%
Operating margin	12.29%
Profit margin	12.23%

Key executives

Chairman & President: Ming Zhu Dong
CFO, Board Secretary & Vice President: Jing Dong Wang
Chief Engineer & Vice President: Jian Ming Tan
Vice President: Pei Zhuang

Shareholders

Zhuhai Gaoling Equity Investment Management Co. Ltd. (15.1%)
Jinghai Internet Technology Development Co. Ltd. (6.4%)
China Securities Finance Corp. Ltd. (3.0%)
Zhuhai State-Owned Assets Supervision & Admin. Commission (2.9%)
Gree Electric Appliances, Inc. of Zhuhai (1.5%)
Qian Hai Life Insurance Co., Ltd. (0.7%)
Gree Electric Appliances, Inc. of Zhuhai Esop (0.7%)
HHLR Management Pte Ltd. (0.7%)
Abu Dhabi Investment Authority (Investment Management) (0.5%)
China Investment Corp. (Investment Management) (0.4%)

Contact Details

Website:http://www.gree.com.cn
Address: Jinji West Road, Qianshan, Zhuhai, 519070, China
Phone: +86.756.8614883

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Competitors

Shanghai Highly (Group) Co., Ltd. Class A
Johnson Controls International plc
Chigo Holding Limited
Airmate (Cayman) International Co., Ltd.
Beijer Ref AB Class B
Runner (Xiamen) Corp. Class A

Last Updated on 31 Mar, 2023