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Consumer Durables

Gree Electric Appliances, Inc. of Zhuhai

  • 40.45 CNY
  • +0.45
  • +1.13%
  • China
    Aug 14, 2018
  • Ticker
    SHE(000651)
  • Prev. close
    40.00
  • Market cap (CNY)
    240,629.21M
  • Market cap (USD)
    34,961.92M
  • Shares
    6,015.73M

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 2017 CNYUSD
Revenue148,506.51M21,974.20M
Gross Profit48,747.22M7,213.02M
Operating income25,802.20M3,817.89M
Income before tax26,610.69M3,937.52M
Net income22,401.57M3,314.71M
EBITDA27,808.14M4,114.71M
Diluted EPS3.720.55
Dividends Per Share00
Total Assets214,967.99M33,011.05M
Total liabilities148,006.98M22,728.34M
Total equity65,595.00M10,072.94M
Operating cash flow16,510.63M2,443.04M
Currency in CNYCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 119,086.90M 138,642.96M 99,812.55M 108,682.69M 148,506.51M
Gross Profit 38,208.73M 49,910.75M 33,142.45M 35,703.40M 48,747.22M
Operating income 10,417.83M 15,804.16M 12,537.67M 13,708.28M 25,802.20M
Income before tax 12,889.06M 16,756.03M 14,906.17M 18,565.03M 26,610.69M
Net income 10,870.67M 14,155.16M 12,532.44M 15,463.62M 22,401.57M
EBITDA 11,647.99M 17,161.03M 13,855.40M 15,524.96M 27,808.14M
Diluted EPS 1.80 2.35 2.08 2.57 3.72
Dividends Per Share 0.75 1.50 1.50 1.80 0
Total Assets 133,706.40M 156,230.94M 161,698.01M 182,373.99M 214,967.99M
Total liabilities 98,199.81M 111,011.05M 112,996.83M 127,249.75M 148,006.98M
Total equity 34,582.81M 44,152.65M 47,521.37M 53,972.18M 65,595.00M
Operating cash flow 13,211.18M 18,983.86M 44,463.02M 15,124.68M 16,510.63M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 19,371.02M 22,500.76M 15,880.77M 16,359.10M 21,974.20M
Gross Profit 6,215.14M 8,100.15M 5,273.16M 5,374.13M 7,213.02M
Operating income 1,694.59M 2,564.90M 1,994.81M 2,063.39M 3,817.89M
Income before tax 2,096.57M 2,719.38M 2,371.66M 2,794.44M 3,937.52M
Net income 1,768.25M 2,297.28M 1,993.98M 2,327.61M 3,314.71M
EBITDA 1,894.69M 2,785.11M 2,204.47M 2,336.84M 4,114.71M
Diluted EPS 0.29 0.38 0.33 0.38 0.55
Dividends Per Share 0.12 0.24 0.23 0.27 0
Total Assets 22,085.99M 25,182.29M 24,901.13M 26,242.74M 33,011.05M
Total liabilities 16,220.91M 17,893.46M 17,401.26M 18,310.63M 22,728.34M
Total equity 5,712.48M 7,116.80M 7,318.18M 7,766.34M 10,072.94M
Operating cash flow 2,148.97M 3,080.94M 7,074.33M 2,276.59M 2,443.04M

Valuation Measures

Dec 2017
PER11.74
ROA11.27%
ROE37.47%
Operating margin17.37%
Profit margin15.08%

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%)
  • Qian Hai Life Insurance Co., Ltd. (4.1%)
  • China Investment Corp. (Investment Management) (1.4%)
  • E Fund Management Co., Ltd. (1.3%)
  • China Securities Finance Corp. Ltd. (1.0%)
  • China Life Asset Management Co., Ltd. (0.9%)
  • Bosera Asset Management Co., Ltd. (0.9%)
  • China Universal Asset Management Co., Ltd. (0.8%)
  • Hillhouse Capital Management Ltd. (China) (0.8%)

Contact Details

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

Related Companies

  • Gree (Shijiazhuang) Small Home Appliances Co., Ltd.
  • Zhengzhou Landa Compressor Co., Ltd
  • Gree Electric Appliance (Wuhu) Co. Ltd.
  • Gree Electric Appliances (Shijiazhuang) Co. Ltd.
  • Zhuhai Gree Daikin Device Co., Ltd.
  • Gree Electric Appliances (Zhengzhou) Co. Ltd.
  • Gree Electric Appliances (Wuhan) Co., Ltd.
  • Gree Electric Appliance Hefei Co. Ltd.
  • Zhuhai Kaibang Motor Manufacture Co., Ltd.
  • Gree Electric Appliances Chongqing Electronic Tech Co., Ltd.
  • Gree Electric Appliances (Chongqing) Co., Ltd.
  • Zhuhai Gree Household Electric Appliance Co. Ltd.
  • Zhuhai Gree Xinyuan Electronic Co. Ltd.
  • Zhuhai Gree Electric Enterprises Ltd.
  • Zhuhai Landa Compressor Co. Ltd.

Competitors

  • Shanghai Highly (Group) Co., Ltd. Class B
  • Midea Group Co. Ltd. Class A
  • Chigo Holding Limited
  • Rechi Precision Co. Ltd.
  • Sichuan Changhong Electric Co., Ltd. Class A
  • Johnson Controls International plc
Last Updated on 14 Aug, 2018

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