2025-06-10-深交所-格力电器_2024年年度报告（英文版）_308页_3mb

Gree Electric Appliances, Inc. of Zhuhai 2024 Annual Report Summary

Core Content Overview

This summary outlines the key points from the 2024 Annual Report of Gree Electric Appliances, Inc. of Zhuhai (stock code: 000651, listed on the Shenzhen Stock Exchange). It includes the company’s guarantees of report accuracy, profit distribution proposal, financial performance, industry analysis, and core competencies.

Important Notice and Definitions

• The Board of Directors, Board of Supervisors, and senior executives have guaranteed the authenticity, accuracy, and completeness of the report.
• Dong Mingzhu, Liao Jianxiong, and Liu Yanzi have declared the financial report to be authentic and accurate.
• The report is available on the Shenzhen Stock Exchange website and other media such as China Securities Journal, Securities Times, and CNINFO.
• Key entities defined in the report:
  • Company: Gree Electric Appliances, Inc. of Zhuhai
  • Zhuhai Mingjun: Zhuhai Mingjun Investment Partnership (Limited Partnership)
  • GREE GROUP: Zhuhai Gree Group Co., Ltd.
  • Finance Company: Zhuhai Gree Group Finance Company Limited
  • Jinghai Internet: Jinghai Internet Technology Development Co., Ltd.
  • DunAn Environment: Zhejiang DunAn Artificial Environment Co., Ltd.
  • CSRC: China Securities Regulatory Commission

Profit Distribution Proposal

• The Company plans to distribute a cash dividend of CNY20 per 10 shares (tax included) to all shareholders.
• No bonus shares or conversion of capital reserves into share capital is planned.
• If there is a change in the total share capital from the date of disclosure to the date of implementation, the dividend amount will be adjusted to maintain the same distribution ratio per share.
• The total share capital at the time of disclosure was 5,585,138,741 shares (excluding 16,267,000 shares held in the repurchase account).

Main Financial Indicators

2024 vs. 2023 vs. 2022

• The Company has no non-recurring profit and loss items that are defined as recurring in the report.

Industry Situation Analysis

Consumption Field

• The home appliance industry in China showed stable growth in 2024, with retail sales reaching CNY907.1 billion (up 6.4% year-on-year).
• The "Large-scale Equipment Renewal and Consumer Goods Trade-in" policy was launched in March 2024, and subsidies of 15% were provided for products meeting energy or water efficiency standards.
• Consumer demand was further stimulated by local government support and fiscal policies, leading to market recovery and improvement.
• White goods (air conditioners, washing machines, refrigerators) saw significant growth in domestic sales volume in the fourth quarter, with annual production increases of 9.7%, 8.8%, and 8.3% respectively.

Industrial Sector

• The industrial economy demonstrated a sustained recovery with operating income of CNY137.77 trillion (up 2.1% year-on-year).
• The air conditioner core parts market experienced sustained growth, with total sales volume of nearly 300 million units (up 13.7% year-on-year).
  • Domestic sales: 251.69 million units (up 11.9%)
  • Export sales: 44.88 million units (up 24.8%)
• Air conditioner motors sales increased by 13% in the domestic market and 28.9% in the export market.
• The intelligent manufacturing equipment industry grew, with market size reaching CNY3.4 trillion (up 6.3% year-on-year).
• Industrial robots output reached 556,000 units (up 14.2% year-on-year).
• CNC machine tools market size exceeded CNY430 billion (up 5.7% year-on-year).
• The industrial chains of CNC machine tools and industrial robots are expected to expand and deepen, driving industrial transformation and upgrading.

Major Businesses and Market Position

• GREE operates in two major sectors: household consumer goods and industrial equipment.
• It has three major consumer brands: GREE, TOSOT, and KINGHOME, and industrial brands: LANDA, Kaibang, and Xinyuan.
• Products include residential air conditioners, HVAC systems, refrigerators, washing machines, water heaters, kitchen appliances, environmental appliances, smart buildings, and smart home appliances.
• GREE has served more than 190 countries and regions worldwide.
• In central air conditioners, GREE remained the market leader with a market share of over 15% and 13 consecutive years of leadership.
• In 2024, GREE ranked first in global split air conditioner retail volume.
• In online retail sales, GREE's share of:
  • Residential air conditioners: 25.40% (first)
  • Electric fans: 13.01% (second)
  • Electric heaters: 9.66% (third)
  • Air source water heaters: 17.45% (third)

Core Competence Analysis

World-famous Brand

• GREE has won numerous national and international honors, including:
  • "China World-famous Brand"
  • "Most Competitive Brand in the Market"
  • "National Quality Award"
  • "China Brand Innovation Award"
  • "Top 100 Scientific and Technological Enterprises in China's Light Industry"
  • "Top 500 Creditworthy Enterprises in China"
• In 2024, GREE ranked first in brand value among home appliance companies in the light industry group with a brand value of CNY188.253 billion.

Outstanding R&D Capabilities

• GREE has world-leading R&D capabilities, with:
  • 16 institutes, 152 research institutions, 1,411 laboratories
  • 1 academician workstation (electric motor and control)
  • 1 National Engineering Technology Research Center
  • 1 State-level Industrial Design Center
  • 1 State Recognized Enterprise Technology Center
  • 1 Robot Engineering Technology R&D Center
• It has won 2 National Science and Technology Progress Awards, 122 important awards at national, provincial, and industrial levels, and 46 "World Leading" technologies.
• 129,524 patents were applied for, including 70,884 invention patents.
• 25,883 invention patent grants, making it the only home appliance company to enter the top ten in invention patent grants for 9 consecutive years.
• 81 Chinese patent awards, including 3 gold awards for invention and 4 gold awards for appearance.
• 15 gold awards from the Geneva International Exhibition of Inventions and 12 gold awards from iENA.

Quality Management and Service Excellence

• GREE follows a "Perfect Quality" management model, which includes:
  • Five-step Quality Prevention Method
  • DCTFP Quality Technology Innovation Cycle
  • T9 comprehensive quality control model
  • PQAM (Perfect Quality Assurance Model)
• In 2018, GREE won the third China Quality Award.
• In 2021, it launched a "ten-year free repair" policy for residential air conditioners, which is the longest repair period in the Chinese residential air conditioner industry.
• During the report period, it received the "Enterprise Market Quality Credit AAA Level" and "Five-Star User Satisfaction Benchmark Enterprise" awards, indicating strong consumer recognition.

Corporate Vision and Future Goals

• The Company's mission is to "promote the industrial spirit, master core technologies, pursue perfect quality, provide first-class services, Made in China, Loved by the World".
• The vision is to "build a world-class enterprise and make GREE a century-old brand".
• GREE aims to continue leading the industry through innovation, quality management, and global brand recognition.