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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 2019 CNYUSD
Revenue198,965.34M28,794.43M
Gross Profit55,354.79M8,010.99M
Operating income27,147.43M3,928.79M
Income before tax29,373.69M4,250.98M
Net income24,696.64M3,574.11M
EBITDA30,302.38M4,385.38M
Diluted EPS4.100.59
Dividends Per Share1.200.17
Total Assets282,972.15M40,623.64M
Total liabilities170,683.99M24,503.49M
Total equity110,153.57M15,813.71M
Operating cash flow28,320.63M4,098.58M
Currency in CNYCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 99,812.55M 108,682.69M 148,506.51M 198,282.10M 198,965.34M
Gross Profit 33,142.45M 35,703.40M 48,747.22M 60,001.93M 55,354.79M
Operating income 12,537.67M 13,708.28M 25,750.96M 29,548.78M 27,147.43M
Income before tax 14,906.17M 18,565.03M 26,609.24M 31,272.94M 29,373.69M
Net income 12,532.44M 15,463.62M 22,400.48M 26,202.78M 24,696.64M
EBITDA 13,855.40M 15,524.96M 27,783.96M 32,659.11M 30,302.38M
Diluted EPS 2.08 2.57 3.72 4.35 4.10
Dividends Per Share 1.50 1.80 0 2.10 1.20
Total Assets 161,698.01M 182,373.99M 214,987.90M 251,116.49M 282,972.15M
Total liabilities 112,996.83M 127,249.75M 148,006.98M 158,353.15M 170,683.99M
Total equity 47,521.37M 53,972.18M 65,614.91M 91,209.42M 110,153.57M
Operating cash flow 44,463.02M 15,124.68M 16,735.64M 27,520.28M 28,320.63M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 15,880.77M 16,359.10M 21,974.20M 29,965.50M 28,794.43M
Gross Profit 5,273.16M 5,374.13M 7,213.02M 9,067.83M 8,010.99M
Operating income 1,994.81M 2,063.39M 3,810.31M 4,465.57M 3,928.79M
Income before tax 2,371.66M 2,794.44M 3,937.31M 4,726.14M 4,250.98M
Net income 1,993.98M 2,327.61M 3,314.55M 3,959.91M 3,574.11M
EBITDA 2,204.47M 2,336.84M 4,111.13M 4,935.62M 4,385.38M
Diluted EPS 0.33 0.38 0.55 0.65 0.59
Dividends Per Share 0.23 0.27 0 0.31 0.17
Total Assets 24,901.13M 26,242.74M 33,014.11M 36,575.51M 40,623.64M
Total liabilities 17,401.26M 18,310.63M 22,728.34M 23,064.38M 24,503.49M
Total equity 7,318.18M 7,766.34M 10,076.00M 13,284.79M 15,813.71M
Operating cash flow 7,074.33M 2,276.59M 2,476.33M 4,159.01M 4,098.58M

Valuation Measures

Dec 2019
PER15.97
ROA9.24%
ROE24.52%
Operating margin13.64%
Profit margin12.41%

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 Gaoling Equity Investment Management Co. Ltd. (15.1%)
  • Hebei Jinghai Guaranty & Investment Co. Ltd. (8.2%)
  • Zhuhai State-Owned Assets Supervision & Admin. Commission (3.2%)
  • China Securities Finance Corp. Ltd. (3.0%)
  • Qian Hai Life Insurance Co., Ltd. (1.6%)
  • China Investment Corp. (Investment Management) (1.4%)
  • E Fund Management Co., Ltd. (1.3%)
  • Harvest Fund Management Co., Ltd. (1.0%)
  • Hillhouse (Beijing) Advisory Ltd. (0.7%)
  • China Southern Asset Management Co., Ltd. (0.6%)

Contact Details

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

Related Companies

  • Gree USA, Inc.
  • 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 Appliances (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
  • Johnson Controls International plc
  • Chigo Holding Limited
  • Airmate (Cayman) International Co., Ltd.
  • Elec-tech International Co., Ltd. Class A
  • Carrier Global Corp.
  • Nirmitee Robotics India Ltd
Last Updated on 10 Aug, 2020

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