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Consumer Durables

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 2020 CNYUSD
Revenue169,532.81M24,562.01M
Gross Profit44,998.81M6,519.45M
Operating income21,915.76M3,175.16M
Income before tax26,273.62M3,806.53M
Net income22,175.10M3,212.74M
EBITDA25,465.93M3,689.52M
Diluted EPS3.710.53
Dividends Per Share40.57
Total Assets279,217.92M42,695.17M
Total liabilities161,900.40M24,756.17M
Total equity115,190.21M17,613.72M
Operating cash flow19,544.04M2,831.55M
Currency in CNYCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 108,682.69M 148,506.51M 198,282.10M 198,965.34M 169,532.81M
Gross Profit 35,703.40M 48,747.22M 60,001.93M 55,354.79M 44,998.81M
Operating income 13,708.28M 25,750.96M 29,548.78M 27,147.43M 21,915.76M
Income before tax 18,565.03M 26,609.24M 31,272.94M 29,373.69M 26,273.62M
Net income 15,463.62M 22,400.48M 26,202.78M 24,696.64M 22,175.10M
EBITDA 15,524.96M 27,783.96M 32,659.11M 30,340.33M 25,465.93M
Diluted EPS 2.57 3.72 4.35 4.10 3.71
Dividends Per Share 1.80 0 2.10 1.20 4
Total Assets 182,373.99M 214,987.90M 251,116.49M 282,972.15M 279,217.92M
Total liabilities 127,249.75M 148,006.98M 158,353.15M 170,683.99M 161,900.40M
Total equity 53,972.18M 65,614.91M 91,209.42M 110,153.57M 115,190.21M
Operating cash flow 15,124.68M 16,735.64M 27,520.28M 28,320.63M 19,544.04M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 16,359.10M 21,974.20M 29,965.50M 28,794.43M 24,562.01M
Gross Profit 5,374.13M 7,213.02M 9,067.83M 8,010.99M 6,519.45M
Operating income 2,063.39M 3,810.31M 4,465.57M 3,928.79M 3,175.16M
Income before tax 2,794.44M 3,937.31M 4,726.14M 4,250.98M 3,806.53M
Net income 2,327.61M 3,314.55M 3,959.91M 3,574.11M 3,212.74M
EBITDA 2,336.84M 4,111.13M 4,935.62M 4,390.87M 3,689.52M
Diluted EPS 0.38 0.55 0.65 0.59 0.53
Dividends Per Share 0.27 0 0.31 0.17 0.57
Total Assets 26,242.74M 33,014.11M 36,575.51M 40,623.64M 42,695.17M
Total liabilities 18,310.63M 22,728.34M 23,064.38M 24,503.49M 24,756.17M
Total equity 7,766.34M 10,076.00M 13,284.79M 15,813.71M 17,613.72M
Operating cash flow 2,276.59M 2,476.33M 4,159.01M 4,098.58M 2,831.55M

Valuation Measures

Dec 2020
PER16.69
ROA7.88%
ROE19.68%
Operating margin12.92%
Profit margin13.08%

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%)
  • Gree Electric Appliances, Inc. of Zhuhai (8.8%)
  • Hebei Jinghai Guaranty & Investment Co. Ltd. (8.2%)
  • Zhuhai State-Owned Assets Supervision & Admin. Commission (3.2%)
  • China Securities Finance Corp. Ltd. (3.0%)
  • China Investment Corp. (Investment Management) (1.4%)
  • Qian Hai Life Insurance Co., Ltd. (1.0%)
  • Goldman Sachs Asia LLC (Investment Management) (0.9%)
  • T. Rowe Price International Ltd. (0.7%)
  • Hillhouse (Beijing) Advisory Ltd. (0.7%)

Contact Details

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

Related Companies

  • Gelan Environmental Protection Technology (Shaoguan) Co., Ltd.
  • Gree Rongzhu Copper (Nanjing) Co., Ltd.
  • Gree E-commerce Co., Ltd.
  • Huzhou Landa Compressor Co., Ltd.
  • Gree Material Supply (Chongqing) Co., Ltd.
  • Gree Material Supply (Zhengzhou) Co., Ltd.
  • Gree Material Supply (Hefei) Co., Ltd.
  • Gree Material Supply (Wuhan) Co., Ltd.
  • Handan Yingdong New Energy Technology Co., Ltd.
  • Zhuhai Hengqin Gree Huatai Energy Development Co., Ltd.
  • Luoyang Lianmei Real Estate Co., Ltd.
  • Guangdong Guochuang Intelligent Technology Co., Ltd.
  • Zhuhai Gree Green Resources Recycling Co., Ltd.
  • Gree (Anji) Precision Mold Co., Ltd.
  • Guochuang Energy Internet Innovation Center (Guangdong) Co
  • Gree (Luoyang) Washing Machine Co., Ltd.
  • Zhuhai Gree Electrical & Mechanical Engineering Co., Ltd.
  • Gree (Chengdu) Precision Mold Co., Ltd.
  • Hefei Kinghome Electrical Co., Ltd.
  • Zhuhai Gree Lvkong Technology Co., Ltd.
  • Zhuhai Gree Material Supply Co., Ltd.
  • Zhuhai Zero Boundary Integrated Circuit Co., Ltd.
  • Zhuhai Lianyun Technology Co., Ltd.
  • Zhuhai Gree Transportation Co., Ltd.
  • Zhuhai Gree CNC Machine Tool Research Institute Co., Ltd.
  • Zhuhai Gree Info Technology Co., Ltd.
  • Zhuhai Gree Energy Environment Technology Co., Ltd.
  • Zhuhai Gree New Material Co., Ltd.
  • Gree (Wu'an) Precision Equipment Manufacturing Co., Ltd.
  • Gree (Wuhan) Precision Mold Co., Ltd.

Competitors

  • Shanghai Highly (Group) Co., Ltd. Class B
  • Johnson Controls International plc
  • Chigo Holding Limited
  • Airmate (Cayman) International Co., Ltd.
  • Beijer Ref AB Class B
  • Carrier Global Corp.
  • Nirmitee Robotics India Ltd
Last Updated on 23 Sep, 2021

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