Gree Titanium lost 1.9 billion yuan last year. Dong Mingzhu： My former boss set me up with a hole! She said that ＂Gree Electric’s strategic planning has never lost.＂

Every reporter Chen Pengli every editor Wei Guanhong He Xiaotao　　　　

On the afternoon of June 30th, Gree Electric (SZ000651, share price 36.51 yuan, market value 205.6 billion yuan) held its 2022 annual general meeting of shareholders in Gree Electric, Zhuhai.

National business daily reporter learned that this year’s Gree Electric shareholders’ meeting was very popular, with as many as 186 shareholders attending offline. The whole meeting lasted about 2 hours, and Dong Mingzhu, Chairman and President of Gree Electric, answered many investors’ questions one by one.

The reporter learned that the concerns of the shareholders at the scene mainly focused on the development and dividend plan of the subsidiary Gree Titanium New Energy Co., Ltd. (hereinafter referred to as Gree Titanium).

Dong Mingzhu responded that there was no problem with the technology of Gree Titanium, and the acquisition of Gree Titanium was to lengthen the industrial chain of Gree Electric and at the same time open the sales of automobile air conditioners. Gree Titanium is still in the process of "filling the pit", but the dawn is in front of us. Regarding the dividend issue, Dong Mingzhu said that he did not think that Gree’s dividend was low. From 2022 to 2024, Gree will pay dividends as promised, and it is expected that Gree Electric’s cash dividend will reach the standard of "2 yuan per share" next year. She also said that Gree is an international brand in China, and the goal of air conditioning is to be the first in the world in order to sell the China brand to the whole world.

On-site photo of the shareholders’ meeting Source: Photo by reporter Chen Pengli

Talking about Gree Titanium: In the efforts to "fill the pit"

At this year’s shareholders’ meeting in Gree Electric, the most frequently asked question by shareholders is about the development of Gree Titanium. In fact, investors have been questioning Gree Electric’s acquisition of Gree Titanium.

According to the financial data of Gree Electric in 2022, by the end of 2022, Gree Titanium had total assets of 25.024 billion yuan, total liabilities of 24.786 billion yuan and total net assets of about 238 million yuan.Last year, Gree Titanium’s revenue was 2.587 billion yuan and its net profit was-1.905 billion yuan.What investors are really worried about is whether Gree Electric will support Gree Titanium when it needs equity financing.

Image source: screenshot of financial data

At the shareholders’ meeting, Dong Mingzhu described in detail why he wanted to buy Gree Titanium and the current situation of Gree Titanium. She said that the technology of this enterprise itself is absolutely no problem."If the former boss didn’t set me up with a pit, it would be a very good enterprise."She said that Gree Electric’s optical storage uses Gree titanium battery, and the safety of the battery is particularly important for Gree’s optical storage. If it hadn’t been acquired at that time, Gree’s light storage would not be realized now.

Moreover, at that time, she thought that the cars of Gree Titanium (namely Yinlong New Energy) could add a channel to Gree, such as automobile air conditioners, automobile compressors, automobile motors and automobile capacitors. "We have dealt with the automobile industry, and it is even more difficult to sell automobile air conditioners … This platform, I think, is very important." "At the beginning, the acquisition of Gree Titanium was unsuccessful. It was not the opposition of small and medium shareholders, and the struggle behind it was too complicated."

She told the shareholders present, "I had to gamble on this game when I borrowed money, just to make Gree Electric’s industrial chain longer."

"At present, the triangular debt problem of Gree Titanium has been gradually resolved. I believe that Gree Titanium has brought many industrial linkages to Gree Electric and brought butterfly effect. We can still make it a very independent subsidiary with the fastest speed and be able to support ourselves. " Dong Mingzhu said.

She also expressed the hope that everyone would give Gree Titanium some time."There is a process of filling in the pit, which I think is very promising. Dawn is just ahead. " "It’s not a day’s work. I believe we can see a little hope next year."

No matter how to expand investment,

Dividend plan will not change.

In 2022, Gree Electric’s annual profit distribution plan is to distribute cash dividend 10 yuan (including tax) to all shareholders for every 10 shares, with a total cash dividend of 5.614 billion yuan (including tax). After the release of the plan, it immediately triggered a heated discussion among investors, who generally believed that the dividend was less than expected.

At the end of April this year, Gree Electric also issued "Shareholder Return Plan for the Next Three Years (2022 -2024) (Revised Draft)". On the premise that the company’s cash flow meets the company’s normal operation and long-term development, the company’s annual cash dividend per share from 2022 to 2024 is not less than 2 yuan or the total cash dividend is not less than 50% of the audited net profit attributable to shareholders of listed companies in that year.

On the afternoon of June 30th, several shareholders also mentioned the issue of dividends to Dong Mingzhu. Dong Mingzhu explained the modification of the dividend plan. "We are worried about what if the income is not good and we can’t make 2 yuan? We will divide 50% of the profit of the year according to the minimum standard, not less than this number. "

Dong Mingzhu also said that from 2012 to 2022, Gree Electric’s accumulated cash dividends exceeded 100 billion yuan in 11 years. She hopes that investors and Gree Electric will help each other in the same boat and share happiness. "Gree Electric does not rely on the stock market to develop. Gree adheres to the principle of benefiting shareholders, but it also needs to retain space for sustainable development."

For the dividend outlook in 2023, she said,According to her own assessment, she can achieve "2 yuan for cash dividend per share" next year, and even add "above".

"Three years of dividend commitment, no matter how we expand our investment, we can do it (the cash dividend per share is not low in 2 yuan), which will not change." Dong Mingzhu said.

The chairman is not above himself,

There is no rule against live broadcast.

Regarding the shareholders’ question that the growth of Gree Electric’s operating income has not been obvious in the past few years, Dong Mingzhu said that shareholders should allow enterprises to have an adjustment period, instead of stipulating that enterprises should grow by 20% or 50% every year."Say a word of anger, you can do it."

She told the shareholders present that the reason for Gree’s slow growth in the past few years was that it was affected by the epidemic. On the other hand, in the Internet age, "I can certainly cooperate with platforms such as JD.COM in an instant and go online, but we have tens of thousands of dealer stores, and hundreds of thousands of people need to eat. We should adjust this relationship in place and not give up social responsibility for temporary interests."

Talking about Gree’s diversified business, Dong Mingzhu said that in the era of high-quality development, Gree should be an industry that the country lacks and the enterprise development strategy needs, such as CNC machine tools. Now Gree’s CNC machine tools have been exported. Although the scale is not large, it is a blueprint that Gree Electric will paint for everyone in the future. "Gree’s industrial sector, robots, motors, etc., each product has huge market space, so I am very confident that enterprises will be able to go healthier and go further."

Regarding the promotion of overseas markets, Dong Mingzhu said that Gree is an international China brand. If air conditioners are to go global, it is absolutely necessary to develop not only the Middle East market, but also all markets. In overseas markets, Gree does not want to catch up with its peers. "In the future, we will be the first in the world."

Dong Mingzhu also said that some people outside are very concerned about Gree’s successor."Don’t worry. If you think you can be a successor, you can go. If not, don’t judge the internal development of the company. We have our own set of rules. "

Dong Mingzhu revealed that after the shareholders’ meeting, her next work arrangement is live broadcast with goods. "People say that I am the chairman of the board of directors, how do you know that I didn’t do it? There is no rule that the chairman can’t do live broadcast.The head of an enterprise should regard the enterprise as his own life, rather than being above it … I think Gree Electric’s strategic planning has never been lost."

Reporter |Chen pengli?edit|Wei Guanhong He Xiaotao Du Bo

Proofread |Sun Zhicheng

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