Gree Electric Appliances, Inc. of Zhuhai

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See more articles on 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 2018	CNY	USD
Revenue	198,282.10M	29,965.50M
Gross Profit	60,001.93M	9,067.83M
Operating income	29,487.37M	4,456.29M
Income before tax	31,272.94M	4,726.14M
Net income	26,202.78M	3,959.91M
EBITDA	32,560.98M	4,920.79M
Diluted EPS	4.35	0.65
Dividends Per Share	2.10	0.31
Total Assets	251,234.15M	36,592.65M
Total liabilities	158,353.15M	23,064.38M
Total equity	91,327.09M	13,301.93M
Operating cash flow	30,020.28M	4,536.83M
	Currency in CNY	Currency in USD

Historical Data

CNY | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	138,642.96M	99,812.55M	108,682.69M	148,506.51M	198,282.10M
Gross Profit	49,910.75M	33,142.45M	35,703.40M	48,747.22M	60,001.93M
Operating income	15,804.16M	12,537.67M	13,708.28M	25,750.96M	29,487.37M
Income before tax	16,756.03M	14,906.17M	18,565.03M	26,609.24M	31,272.94M
Net income	14,155.16M	12,532.44M	15,463.62M	22,400.48M	26,202.78M
EBITDA	17,161.03M	13,855.40M	15,524.96M	27,783.96M	32,560.98M
Diluted EPS	2.35	2.08	2.57	3.72	4.35
Dividends Per Share	1.50	1.50	1.80	0	2.10
Total Assets	156,230.94M	161,698.01M	182,373.99M	214,987.90M	251,234.15M
Total liabilities	111,011.05M	112,996.83M	127,249.75M	148,006.98M	158,353.15M
Total equity	44,152.65M	47,521.37M	53,972.18M	65,614.91M	91,327.09M
Operating cash flow	18,983.86M	44,463.02M	15,124.68M	16,735.64M	30,020.28M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	22,500.76M	15,880.77M	16,359.10M	21,974.20M	29,965.50M
Gross Profit	8,100.15M	5,273.16M	5,374.13M	7,213.02M	9,067.83M
Operating income	2,564.90M	1,994.81M	2,063.39M	3,810.31M	4,456.29M
Income before tax	2,719.38M	2,371.66M	2,794.44M	3,937.31M	4,726.14M
Net income	2,297.28M	1,993.98M	2,327.61M	3,314.55M	3,959.91M
EBITDA	2,785.11M	2,204.47M	2,336.84M	4,111.13M	4,920.79M
Diluted EPS	0.38	0.33	0.38	0.55	0.65
Dividends Per Share	0.24	0.23	0.27	0	0.31
Total Assets	25,182.29M	24,901.13M	26,242.74M	33,014.11M	36,592.65M
Total liabilities	17,893.46M	17,401.26M	18,310.63M	22,728.34M	23,064.38M
Total equity	7,116.80M	7,318.18M	7,766.34M	10,076.00M	13,301.93M
Operating cash flow	3,080.94M	7,074.33M	2,276.59M	2,476.33M	4,536.83M

Valuation Measures

Dec 2018
PER	8.19
ROA	11.24%
ROE	33.39%
Operating margin	14.87%
Profit margin	13.21%

Key executives

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

Shareholders

Zhuhai State-Owned Assets Supervision & Admin. Commission (18.3%)
Hebei Jinghai Guaranty & Investment Co. Ltd. (8.9%)
China Securities Finance Corp. Ltd. (3.0%)
China Life Asset Management Co., Ltd. (2.0%)
Qian Hai Life Insurance Co., Ltd. (1.9%)
China Investment Corp. (Investment Management) (1.4%)
E Fund Management Co., Ltd. (1.3%)
Harvest Fund Management Co., Ltd. (0.9%)
Bosera Asset Management Co., Ltd. (0.8%)
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

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Competitors

Shanghai Highly (Group) Co., Ltd. Class B
Chigo Holding Limited
Rechi Precision Co. Ltd.
Sichuan Changhong Electric Co., Ltd. Class A
Airmate (Cayman) International Co., Ltd.
Elec-tech International Co., Ltd. Class A
Johnson Controls International plc

Last Updated on 5 Dec, 2019