[年报]格力电器(000651):2021年年度报告（英文版）
原标题:格力电器:2021年年度报告（英文版） Annual Report 2021 April 2022 Section I Important Notice, Table of Contents and Paraphrase The Board of Directors, Board of Supervisors, all directors, supervisors and Senior Management Personnel of the Company hereby guarantee that the contents are authentic, accurate and complete, and there are no false records, misleading representations or material omissions in the Annual Report, and shall take all the joint and several legal responsibilities. Dong Mingzhu, the Company's responsible person, Liao Jianxiong, responsible person in charge of accounting work and Liu Yanzi, in-charge person of accounting institution (accounting superintendent) hereby declare and warrant that the financial report in the Report is authentic, accurate and complete. All the directors attended the meeting of the Board of Directors in respect of deliberation of the Report. The forward-looking statements such as future plans and development strategies in the Report do not constitute a substantive commitment of the Company to investors. Investors and relevant persons should therefore be aware of risk factors attendant in investment and understand the differences between plans, forecasts and commitments. The Company's profit distribution proposal passed upon deliberation at the meeting of the Board of Directors is set out as below: Based on the total number of 5,536,677,733 shares of the Company enjoying profit distribution rights as of April 29, 2022 (the total stock capital of 5,914,469,040 shares excluding the 377,791,307 shares held in the repurchase account of the Company), the Company plans to distribute all shareholders a cash dividend of RMB 20 (tax included) per 10 shares, but does not plan to give any bonus share or use any public reserve funds for capitalization. Table of Contents Section I Important Notice, Table of Contents and Paraphrase ............................. 1 Section II Company Profile and Main Financial Indices ........................................ 6 Section III Management Discussion and Analysis .................................................. 12 Section IV Corporate Governance ........................................................................... 72 Section V Environmental and Social Responsibility .............................................. 99 Section VI Important Matters ................................................................................. 111 Section VII Changes in Shares and Shareholders ................................................ 141 Section VIII Related Information of Preferred Share ......................................... 153 Section IX Related Information on Bonds ............................................................ 154 Section X Financial statement ................................................................................ 155 References (I) The accounting statements signed and sealed by Dong Mingzhu, the legal representative, Liao Jianxiong, chief accountant and Liu Yanzi, head of accounting department. (II) The original audit report sealed by China Audit Union Power Certified Public Accountants Co., Ltd. and signed and sealed by certified public accountants Han Zhenping and Qiu Yiwu. (III) Originals and original drafts of all the Company's documents and announcements published on the newspapers designated by CSRC and on www.cninfo.com.cn within the Report Period. Paraphrase
I. Company information
Accounting firm engaged by the Company
Financial adviser engaged by the Company to perform continuous supervision during the Report Period □ Applicable √ Not applicable VI. Main accounting data and financial indices Whether the Company has retroactive adjustment or restatement of previous accounting data □ Yes √ No
lower, is negative, and the audit report of the last year shows that the Company's ability to continue as a going concern is uncertain □ Yes √ No The net profit before and after deducting non-recurring profits and losses, whichever is lower, is negative □ Yes √ No VII. Accounting data differences under domestic and foreign accounting standards 1. Differences in net profit and net assets in the financial report disclosed under international accounting standards and that disclosed under domestic accounting standards □ Applicable √ Not applicable There was no difference in net profit and net assets in the financial report disclosed under international accounting standards and that disclosed under domestic accounting standards during the Report Period. 2. Differences in net profit and net assets in the financial report disclosed under overseas accounting standards and that disclosed under domestic accounting standards □ Applicable √ Not applicable There was no difference in net profit and net assets in the financial report disclosed under overseas accounting standards and that disclosed under domestic accounting standards during the Report Period. VIII. Quarter-based main financial indicators Unit: Yuan
semi-annual report □ Yes √ No IX. Non-recurring profit and loss items and amounts √ Applicable □ Not applicable Unit: Yuan
√ Applicable □ Not Applicable
The Company has no other profit and loss items that conform to the definition of non-recurring profit and loss. Description of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss as recurring profit and loss items □ Applicable √ Not applicable No non-recurring profit and loss items which are listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profit and Loss were defined by the Company as recurring profit and loss items. Section III Management Discussion and Analysis I. Industry of the Company during the report period (I) Consumption field Gree's products in the consumption field cover residential air conditioners, HVAC, refrigerators, washing machines, water heaters, kitchen appliances, and environment appliances, etc. According to the Report on China's Household Appliance Market in 2021 issued by China Center for Information Industry Development, in 2021, the household appliance market of China recovered in an all-round way, with the retail scale volume reaching 881.1 billion yuan, a year-on-year increase of 5.7%, basically returning to the level before the COVID-19 pandemic. Sales of air conditioners returned to the level before the COVID-19 pandemic, and exports became the main growth engine. According to the statistics of ChinaIOL.com, the sales volume of residential air conditioners was 152,590,000 in 2021, a year-on-year increase of 7.9%, which was also slightly higher than that in 2019; export was the main growth engine of residential air conditioner industry, in 2021, the export volume of residential air conditioners was 67,890,000, a year-on-year increase of 11.0%; domestic sales volume was 84,700,000, a year-on-year increase of 5.5%. In 2021, the sales volume of central air conditioner was about RMB 123.2 billion, with a year-on-year increase of 25.4%. The retail sales of household appliances in online channels once again exceeded those in offline channels in China. The growth rate of online and offline market scale has changed from negative to positive. Moreover, under the continuous and profound impact of COVID-19 pandemic, the retail sales of online channels in China accounted for 52.9% of the entire household appliance market in 2021, with a proportion more than 50% for two consecutive years. High quality household appliances are favored, and emerging household appliances continue to sell well. Among traditional household appliances, products with larger size, larger capacity and higher quality, such as inverter air conditioners, multi-door refrigerators, high-capacity washing and drying integrated washing machines and high suction range hoods, are favored. Among the emerging household appliances, the demand for fresh air conditioners, partitioned washing machines, clothes dryers, water purification and hot water all-in-one machine, multi-functional high speed blenders, air fryers, integrated stoves, floor scrubbers, cosmetic instruments and pet appliances is more fine sorted, and the products with improved quality continue to sell well. The policy of green intelligent household appliance going to the countryside will be launched, and the potential of the sinking market is huge. The household appliance market of the sinking market, which accounts for 70% of China's population, reached RMB 277.5 billion in 2021, accounting for 31.5%, with a year-on-year increase of 8.9%, which is much higher than the overall market, becoming the most important growth pole of the household appliance market. Universal household appliances are still the main sales in the sinking market, and there is still a large gap between the number of main household appliances per 100 households in rural areas and that in cities. For example, the number of air conditioners owned by 100 households in cities is 150, while that in rural areas is only 74. The penetration rate of kitchen appliances, environment appliances and personal care appliances in rural areas is lower. With the continuous improvement of rural residents' consumption capacity, the gradual improvement of network and logistics infrastructure, and the rapid integration of urban and rural household appliance consumption concepts, the sinking market has become the household appliance consumption market with the largest population base, the largest area and the greatest potential in China. On March 5, 2022, Premier Li Keqiang proposed in the Government Work Report to encourage local governments to carry out the policy of green intelligent household appliance going to the countryside and old for new service, which will certainly promote the further growth of the sinking market of household appliances. (II) Industrial field Gree's products in the industrial field cover high-end equipment, precision moulds, compressors, motors, industrial energy storage, new energy buses, and new energy special vehicles, etc. The intelligent equipment sector continues to grow. The combination of post-pandemic economic recovery and industrial transformation and upgrading, coupled with the promotion of national strategies such as "Made in China 2025" and the Development Plan on Smart Manufacturing During the "14th Five-Year Plan", China's intelligent equipment sector has achieved rapid development. According to the data of the National Bureau of Statistics, the added value of China's equipment manufacturing industry increased by 12.9% year-on-year in 2021, accounting for 32.4% of the added value of industries above designated size; the output of industrial robots was 366,000 sets, a year-on-year increase of 67.9%. Technology-intensive industries drive the development of intelligent equipment. The demand increment of intelligent equipment in 2021 mainly comes from technology-intensive industries such as new energy vehicles, 3C electronics and medicine. According to the data of the GGII, in 2021, the sales volume of industrial robots in China exceeded 261,000 sets, with a year-on-year increase of more than 53%, accounting for more than 50% of the global sales volume, and China has become the world's largest consumer of industrial robots for 8 consecutive years. The development direction of intelligent equipment is to meet the needs of industrial upgrading. The development demand of industrial manufacturing is improvement of production efficiency, improvement of product quality and customized production. Intelligent equipment is the carrier to realize the demand of industrial manufacturing, and will develop in the direction of high precision, high stability and flexible production. China's intelligent manufacturing industry has clear objectives and great growth potential. The development level of high-end intelligent equipment is not only the standard to measure the development level of a country's manufacturing industry, but also the basis for industrial upgrading of a manufacturing power. Therefore, it has been strongly supported by national policies. It is clearly stated in the Development Plan on Smart Manufacturing During the "14th Five-Year Plan" that by 2025, 70% of manufacturing enterprises above designated size will be generally digitalized and networked, and build more than 500 intelligent manufacturing demonstration plants leading the development of the industry. Driven by national policies and industrial upgrading needs, China's intelligent manufacturing industry has great growth potential in the future. Industrial upgrading will accelerate the survival of the fittest in the mould industry. China is a big country in mould manufacturing and trade in the world. According to the data of Zhongshang Industry Research Institute, the market scale of China's mould industry is expected to be RMB 302.833 billion in 2021, with a year-on-year increase of 9.5%. With the implementation of national intelligent manufacturing and industrial upgrading policies, leading enterprises in the industry will increase R&D investment, accelerate the automation upgrading of production lines, and improve the development level of new products; the industry will accelerate the survival of conducive to the development of advantageous enterprises. The sector of core air conditioning parts returned to growth. Thanks to the effective control of the domestic COVID-19 pandemic and the comprehensive recovery of the downstream household appliance industry, the market has improved compared with 2020, but it has not completely recovered. According to the 2021 statistics of ChinaIOL.com, the sales volume of rotor compressors in China was 238,570,000, a year-on-year increase of 12.8%; the sales volume of air conditioner motor in China was 392,290,000, a year-on-year increase of 10%. With the implementation of new energy efficiency policy and carbon peaking and carbon neutrality policy, and the continuous rise of global raw materials, the upgrading of product structure is imperative. Under the strong impetus of the national "carbon peaking and carbon neutrality" strategy, green industries such as energy storage and new energy vehicles have ushered in unprecedented development opportunities. The state has made clear the development objectives of the energy storage industry, and the industry will accelerate its development. In July 2021, the National Development and Reform Commission and the National Energy Administration jointly issued the Guidance on Accelerating the Development of New Energy Storage, which defined and quantified the development objectives of the energy storage industry for the first time at the national level. It is expected that the installed capacity of new energy storage will reach more than 30,000,000 KW (30 GW) by 2025. From 3.28 GW at the end of 2020 to 30 GW in 2025, the scale of the new energy storage market will be expanded to 10 times the current level in the next five years, with an average annual compound growth rate of more than 55%. Positive policy signals will guide the inflow of social capital and boost the rapid arrival of trillion energy storage market. The sales volume of new energy special vehicles reached a new high, leading the new energy commercial vehicle market. Driven by the introduction of new energy logistics vehicle policies, the expansion of urban distribution scale, the new regulations for blue license plate light trucks and the rise of switching mode for heavy trucks, new energy special vehicles have achieved explosive growth, according to the terminal license plate enrolling data, the cumulative sales of new energy special vehicles in 2021 were 160,700, with a year-on-year growth of 125.6%. Due to the decline of subsidies and the gradual saturation of the market, the sales volume of new energy buses above 6 meters decreased by 17% year-on-year. Enterprises with new energy special vehicles, new energy buses, and new energy auto parts simultaneously can quickly adapt to market changes. II. Major businesses engaged in during the Report Period Gree Electric Appliances, Inc. of Zhuhai is a diversified and technological global industrial group and has three major consumer brands: Gree, TOSOT and KINGHOME, and industrial brands: LANDA, Kaibang, and Xinyuan, etc. In consumption field, it covers residential air conditioners, HVAC, refrigerators, washing machines, water heaters, kitchen appliances, environment appliances, communication products, smart buildings, and smart household appliances; in industrial field, it covers high-end equipment, precision moulds, freezers and refrigeration equipment, motors, compressors, capacitors, semiconductor devices, precision casting equipment, basic materials, industrial energy storage, and renewable resources. Gree's products are sold in more than 180 countries and regions, providing global consumers with satisfactory products and services, for the purpose of creating a better life. In 2021, Gree was again listed in the Forbes Global 2000 - World's Best Employers and ranked the 252th, and listed in the Fortune Global 500 and ranked the 488th by virtue of its outstanding comprehensive strength. According to the data released by HVAC Information, Gree was the only brand with a sales scale of more than RMB 20 billion in China's central air conditioning industry in 2021 and has maintained the position for ten consecutive years in the Chinese market, among them, Gree ranked first among national brands with a share of more than 20% in VRF, and was far ahead of the second with a share of 34.8% in unitary air conditioner. According to the 2021 domestic sales data of air conditioner published by ChinaIOL.com, Gree air conditioners ranked the first in the field with a share of 37.4%, taking the lead for 27 years. In 2021, Gree continued to enrich the categories of home appliances, strengthened the marketing of new media channels, and achieved good results. According to the data of All View Cloud, in 2021, Gree's online retail sales share of electric heaters, electric fans, dehumidifiers, air source water heaters and other products ranked among the top two in the industry. Gree takes "To be Global Leading Air Conditioning Enterprise" as its corporate vision, and "carrying forward the industrial spirit, mastering core technologies, pursuing perfect quality, providing first-class services, and achieving ‘Made in China, Loved by the World’" as its mission. By adhering to the management philosophy that "innovation never stops", Gree focuses on independent innovation and development, in order to grasp the pulse of the times, build a world brand and create a development model with Chinese characteristics for Chinese manufacturing enterprises. III. Core competence analysis Facing new opportunities and challenges, Gree takes "mastering core technologies and forging perfect quality" as the two wheels for driving, transfers and improves the value through unique marketing model, sticks to independent people cultivation, independent innovation and independent production, and takes "carrying forward the industrial spirit, mastering core technologies, pursuing perfect quality, providing first-class services, and achieving Made in China, Loved by the World" as its mission to stride forward. (I) World famous brand, continuing to create value for the society Gree is a diversified technological global industrial group integrating R&D, production, sales and service. Gree has won a great number of honors such as "World Brand", "Most Competitive Brand in the Market", "National Quality Award", "Export Inspection Exemption Enterprise" and "China Brand Innovation Award" over these years. In 2021, Gree was again listed in the Forbes Global 2000 and ranked the 252th, and listed in the Fortune Global 500 and ranked the 488th by virtue of its outstanding comprehensive strength. In May 2021, the "2021 China Brand Value Evaluation Information List" jointly sponsored by Xinhua News Agency, China Council for Brand Development, China Appraisal Society and SASAC News Center was released, and Gree ranked first in the household appliance industry, with a brand value of RMB 120.778 billion, an increase of RMB 6.675 billion compared with last year. Gree has always been adhering to the core sense of worth of “quality first, customer satisfaction, good faith management, and win-win situation”, and forging its brands and creating social value, environmental value and economic value for the society and consumers depending on its perfect quality and world-leading technologies. (II) Excellent R&D strength, continuously leading technological innovation of the industry Gree insists on "independent research and development of core technologies", and has set up a technological innovation system of "enterprise regarded as the main player, market as the orientation, enterprise-university-research cooperation". It insists on innovation driving, cultivates innovative talents, implements the leader strategy, and constantly consolidates its global leading position in the field of refrigeration. Gree boasts the largest R&D center of air conditioners in the world, including 4 national R&D centers, 1 academician workstation, 16 research institutes, nearly 1,000 laboratories. Its national R&D centers are the National Key Laboratory on Air Conditioning Equipment and Energy-saving System Operation, National Engineering Research Center of Green Refrigeration Equipment, State Recognized Enterprise Technology Center and National Industrial Design Center. In 2021, Gree was approved to establish Guangdong Key Laboratory for Enterprises of High-speed Energy Saving Motor System. Gree Electric continued to lead the industry in testing, certification and standards. Gree has built more than 300 professional laboratories for thermal balance, noises, reliability, electrical safety, electromagnetic compatibility, etc., and has been successively recognized by a variety of national or international organizations (including CNAS, TUV, UL, CSA, VDE, ITS, SGS, BV, and AHRI, etc.), growing into the largest experimental center in the industry that can provide the most complete tests and receive the largest number of national and international recognitions. Gree has actively led or participated in the formulation of more than 570 international standards and national standards. In terms of international standards, Gree took the lead in formulating two international standards for photovoltaic direct-drive technology, laying a solid foundation for Gree's photovoltaic air conditioning products to enter the international market; it participated in the formulation and revision of 13 international standards for household appliances and national standards for air conditioning in the United States and Canada, and continuously made new breakthroughs and new competitive advantages in international standardization. Gree has successively become the research and evaluation base of the National Notification Enquiry Center, the first batch of National Demonstration Base for Standardization of Consumer Goods, the National Energy Conservation Standardization Demonstration Pilot and the National Pilot Enterprise for Standardization of High-end Equipment Manufacturing Industry. By the end of 2021, Gree had won 99 important awards at the national, provincial and industrial levels; had accumulatively applied for 96,626 domestic and foreign patents, including 49,549 invention patents, had obtained 13,507 invention patent grants at home and abroad and become the first household appliance enterprise in China with more than 10,000 invention patents granted; had won 65 Chinese patent awards in total, including two gold awards for invention and three gold awards for appearance, ranking first in the air conditioning industry in terms of the total number of awards; had won 11 gold awards at the International Exhibition of Inventions of Geneva and 6 iENA at the iENA. At the same time, Gree is one of the first batch of national enterprise intellectual property demonstration unit, "National Patent Operation Pilot Enterprise", and won the China Trademark Gold Award. (III) Leading PQAM perfect quality assurance mode, achieving “Made in China, Loved by the World” Gree always adheres to the principle of "quality first" and "integrity management", and constantly optimizes the quality management system and innovates the quality control mode based on customer demand. Gree adheres to the quality policy of "pursuing the perfect quality, creating an international brand, and forging a century enterprise", take "best service not requiring after-sales service" and "zero defect" as the quality goal, always sticks to the quality culture of "strict, true and new" oriented to customer demand and social responsibility, with independent talent training as the core, establish an all-round quality education and training system. In the process of "practice - summary and innovation - practice again - summary and innovation again", a comprehensive quality management model of independent innovation with Gree characteristics has been gradually formed, and the T9 comprehensive quality control system centered on the quality technology innovation cycle D-CTFP has been created and implemented. Quality is related to "two lives", one is the life of consumers and the other is the life of enterprise. The quality level of Gree's products has been steadily improved by strengthening the internal quality control, and the after-sale failure rate has been declining for many consecutive years. In March 2021, Gree put forward the "ten-year free repair policy" for residential air conditioners, which led the progress of domestic air conditioning service standards and reflected the strength of Gree's air conditioning product quality and after-sales service beyond national standards. Gree adheres to the original intention of "taking consumer demand as the highest standard" and contributes to the high-quality development of Made-in-China products with the spirit of "conduct self-examination". In 2018, Gree won the “China Quality Award” issued by the State Administration for Market Regulation relying on its perfect quality management mode of "Made in China, Loved by the World"; in 2020, based on the "perfect quality management mode", Gree participated in the drafting and development of the Quality Management - Innovation Cycle Guide Based on Customer Demand as a national standard, with a view to publicizing Gree's advanced quality management experience throughout the industry and promoting continuous improvement of the quality level of the whole industry. In November 2021, Gree won the title of "National Market Quality Credit AAA Grade User Satisfaction Benchmarking Enterprise", which demonstrated consumers' recognition of Gree's high-quality products and Gree's strong strength as an industry leader. (IV) The full series of household appliances, providing consumers with overall solutions for high-quality life Gree can provide a full range of household appliances including residential air conditioners, HVAC, refrigerators, washing machines, environment appliances, kitchen appliances and home appliances, fully meeting consumers’ all-round needs for high quality life. The new household appliances launched in 2021 include Real Purify formaldehyde removal air conditioner, Freair series two-way fresh air conditioner, Wisdom Wind air conditioner for the aged, Painting Era AI audio-visual air conditioner, Kinghome refrigerator with all-round freshness preservation, Almighty King Shuzun II air source water heater, Automatic Drum Washer&Heat Pump Clothing Care Dryer, EcoSilence Drive washing machine, Jinghuan Series dishwasher, steam oven, gas stove with anti-burning protection, sweeping robot, water softener, central water purifier, desktop water dispenser, car air purifier, tower air cooler with cooling and heating function, graphene baseboard heater, household dryer, sparkling water maker, air fryer, ultrasonic cleaner, and health pot, etc., facilitating the consumers in their colorful life. In addition, under the background of consumption upgrading and seriation becoming the general trend of the industry, Gree launched five sets of household appliance products, including " Gree Serenity", "Gree Pearl", "Gree Times", "Gree Stars" and "Gree Brevity", which fully concerned the intelligent, convenient, comfortable and healthy personalized household needs of consumers, and created a new home experience for consumers with the ultimate quality and aesthetic perception. Gree Smart Home has made in-depth layout in smart home system, smart home network, smart voice interaction, smart scene scheme and smart product technology, launched a series of smart home products, and independently created smart IoT technologies such as IoT platform, smart decision system, G-Voice voice interaction system, smart vision system, G-OS IoT operating system and G-Learning comfort and energy-saving algorithm, creating a high-quality life of Internet of Everything (IoE) for consumers. sense, smart interaction, smart cloud platform, smart energy and artificial intelligence. It also has five control accesses, including "Gree +" App, smart voice control air conditioner, IoT mobile phone, smart door lock and magic cube, which can cover the whole series of Gree smart products. Gree will build Gree's "healthy, smart and comfortable home" ecological home system for consumers from the all-round multi-system product lines of air conditioner, floor heating, fresh air, water purification and smart, combined with the six-constant system concept of "constant temperature, constant humidity, constant oxygen, constant cleanliness, constant mute and constant smart" in the new era. (V) With the self-controlled new retail system, growth is driven by data Gree insists on the sales channel construction and sales model of independent management, mutual benefit （未完）  |