[年报]格力电器(000651):2024年年度报告（英文版）
原标题:格力电器:2024年年度报告（英文版） Gree Electric Appliances, Inc. of Zhuhai 2024 Annual Report April 2025 Section I Important Notice, Contents and Paraphrase The Board of Directors, Board of Supervisors, directors, supervisors, and senior executives of the Company hereby guarantee that the contents are authentic, accurate, and complete, without false records, misleading representations, or material omissions in the Annual Report, and shall take all the joint and several legal liabilities. Dong Mingzhu, the Company's responsible person, Liao Jianxiong, the responsible person in charge of accounting work, and Liu Yanzi, the Accounting Department's responsible person (accounting superintendent), hereby declare and warrant that the financial report in the Annual Report is authentic, accurate, and complete. All the directors have attended the meeting of the Board of Directors in respect of the deliberation of the Annual Report. The forward-looking statements, such as future plans and development strategies in the Annual Report, do not constitute a substantive commitment of the Company to investors. Investors and relevant parties should therefore make rational investments based on an awareness 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 share capital of 5,585,138,741 shares enjoying profit distribution rights at the time of disclosure of this profit distribution plan (the total stock capital of 5,601,405,741 shares excluding the 16,267,000 shares held in the repurchase account of the Company), the Company plans to distribute all shareholders a cash dividend of CNY20 (tax included) per 10 shares, but does not plan to give any bonus share (0 share, tax included) or convert any capital reserves into share capital. If there is a change in the total share capital of the Company entitled to profit distribution from the date of disclosure of this distribution plan to the date of implementation of equity distribution registration, the Company will adjust the total dividend amount accordingly based on the principle of keeping the distribution ratio per share unchanged. Contents Section I Important Notice, Contents and Paraphrase ........................................................................................ 2 Section II Company Profile and Main Financial Indicators ................................................................................ 6 Section III Management Discussion and Analysis .............................................................................................. 11 Section IV Corporate Governance ....................................................................................................................... 62 Section V Environmental and Social Responsibility........................................................................................... 86 Section VI Important Matters ............................................................................................................................ 107 Section VII. Changes in Shares and Shareholders ........................................................................................... 136 Section VIII Preferred Share Information ........................................................................................................ 148 Section IX Bond Information ............................................................................................................................. 149 Section X Financial Statements .......................................................................................................................... 150 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 Union Power Certified Public Accountants (Special General Partnership) with signatures and seals of certified public accountants Qiu Yiwu and Wang Huijun. (III) Originals and original drafts of all the Company's documents and announcements published on the media and CNINFO designated by the Company within the report period. Paraphrase
Section II Company Profile and Main Financial Indicators 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 indicators 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 profits 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 profits and net assets in the financial report disclosed under the international accounting standards and that disclosed under the domestic accounting standards □ Applicable ?Not Applicable There was no difference in net profits and net assets in the financial report disclosed under the international accounting standards and that disclosed under the domestic accounting standards during the report period. 2. Differences in net profits and net assets in the financial report disclosed under the overseas accounting standards and that disclosed under the domestic accounting standards □ Applicable ?Not Applicable There was no difference in net profits and net assets in the financial report disclosed under the overseas accounting standards and that disclosed under the domestic accounting standards during the report period. VIII. Quarter-based main financial indicators Currency: CNY
semi-annual report □ Yes ?No IX. Non-recurring profit and loss items and amounts ?Applicable □ Not applicable Currency: CNY
?Applicable □ Not applicable Currency: CNY
Disclosure for Companies Offering Their Securities to the Public - Non-recurring Profits and Losses as recurring profit and loss items □ Applicable ?Not Applicable No 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 Profits and Losses were defined by the Company as recurring profit and loss items. Section III Management Discussion and Analysis I. Industry situation of the Company during the report period 1. Consumption field — stable growth in the home appliance industry and sustainable growth in the air conditioner market In 2024, China’s economy maintained an overall recovery and positive trend. Policies promoting the consumption economy’s large circulation accelerated the release of updated demand and further stimulated the market’s consumption potential. According to data from AVC, the retail sales of all home appliance categories in China (excluding 3C products) reached CNY907.1 billion in 2024, representing a year-on-year growth of 6.4%. In March 2024, the state officially launched the “Large-scale Equipment Renewal and Consumer Goods Trade-in” action plan. In late July, the central government further increased its support, clearly stating that it would provide trade-in subsidies for consumers purchasing eight types of home appliances, including air conditioners, refrigerators, and washing machines, that meet or exceed the secondary energy or water efficiency standards. The subsidy rate is 15% of the product’s sales price. For products that meet or exceed the primary energy or water efficiency standards, an additional 5% subsidy will be provided to promote the upgrading of home appliance consumption. From August to September, local governments successively introduced supporting policies, and the policy effects continued to be released, with the consumer market showing a recovery and improvement trend. Driven by the trade-in and fiscal subsidy policies, the domestic sales volume of white goods in the fourth quarter increased significantly quarter-on-quarter. Data from the National Bureau of Statistics shows that the annual production of air conditioners, washing machines, and refrigerators increased by 9.7%, 8.8%, and 8.3% respectively, indicating a continuous recovery in the home appliance consumption market. 2. Industrial sector — production shows a sustained recovery trend Data from the National Bureau of Statistics indicates that in 2024, China’s large-scale industrial enterprises achieved operating income of CNY137.77 trillion, representing a year-on-year growth of 2.1%. The industrial economy is demonstrating a sustained recovery trend. The industrial scale of air conditioner core parts and components increases significantly. According to data from ChinaIOL.com, in 2024, the overall scale of the rotor compressor market reached a new high, with an annual sales volume of nearly 300 million units, representing a year-on-year growth of 13.7%. In the domestic market, the sales volume was approximately 251.69 million units, increasing by 11.9% year-on-year; in the export market, the sales volume was about 44.88 million units, growing by 24.8% year-on- year. Benefiting from the growth in the sales scale of the downstream air conditioner market, the domestic sales volume of air conditioner motors was approximately 396 million units, increasing by 13% year-on-year; the export volume was about 92 million units, growing by 28.9% year-on-year. The scale of the intelligent manufacturing equipment industry is growing. The Development Plan on Smart Manufacturing During the “14th Five-Year Plan” takes the development of advanced intelligent manufacturing industry as the core goal to overall arrange and plan the promotion of manufacturing power. At present, China has formed an intelligent manufacturing industry system represented by automated production lines, intelligent detection and assembly equipment, intelligent control systems, industrial robots, etc., and the scale of the industry is growing. According to data from INSIGHT AND INFO, the market size of China's intelligent manufacturing equipment was CNY3.4 trillion, representing a year-on-year growth of 6.3%. Data from the China Machinery Industry Federation shows that the output of industrial robots in 2024 was 556,000 units, increasing by 14.2% year-on-year. According to data from the Zhongshang Industry Research Institute, the scale of the CNC machine tools exceeded CNY430 billion, with a year-on-year growth of approximately 5.7%. With the advancement of technology and the coordinated development of industries, the industrial chains of CNC machine tools and industrial robots will continue to expand and deepen, becoming the core driving force for industrial transformation and upgrading. II. Major businesses of the Company during the report period Gree Electric Appliances, Inc. of Zhuhai is a diversified and technological global industrial group and has three major consumer brands of GREE, TOSOT and KINGHOME, and industrial brands of LANDA, Kaibang, and Xinyuan. Its industry covers two major areas of household consumer goods and industrial equipment. In the consumption field, it covers residential air conditioners, HVAC, refrigerators, washing machines, water heaters, kitchen appliances, environmental appliances, smart buildings, and smart home appliances. In the industrial sector, it covers high-end equipment, precision molds, freezers and refrigeration equipment, motors, compressors, capacitors, semiconductor devices, precision casting equipment, basic materials, industrial energy storage, renewable resources, etc. So far, GREE products have served more than 190 countries and regions around the world, and continue to meet people's needs for a better life. During the report period, GREE’s sales of central air conditioners remained the largest in the industry. According to the “2024 China Central Air Conditioner Industry Development Report” released by ihos’s “HVAC & Heat Pump” magazine, GREE achieved the top sales volume in the domestic central air conditioner market with a market share of over 15%, leading the market for 13 consecutive years. During the report period, GREE continuously enriched its product categories. Multiple categories of its home appliances were highly favored by the market, with its retail sales and volumes ranking among the top in the industry. According to data released by Euromonitor, GREE ranked first in the global retail volume of split air conditioners in 2024. Data from AVC shows that in 2024, GREE’s share of online retail sales of residential air conditioners was 25.40%, ranking first in the industry; its share of online retail sales of electric fans was 13.01%, ranking second; its share of online retail sales of electric heaters was 9.66%, ranking third; and its share of online retail sales of air source water heaters was 17.45%, also ranking third in the industry. In the future, the Company will continue to take “promoting the industrial spirit, mastering core technologies, pursuing perfect quality, providing first-class services, Made in China, Loved by the World” as its mission, and steadily move forward towards the realization of its corporate vision of “building a world-class enterprise and making GREE a century-old brand”. III. Core competence analysis The Company adheres to independent innovation, breaks through core technologies, focuses on consumer demands, provides professional services, leads industry development, and jointly creates a better life for humanity. (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. Over the years, the Company has successively won numerous honors such as “China World-famous Brand”, “Most Competitive Brand in the Market”, “National Quality Award”, “Enterprise Exempted from Export Inspection”, “China Brand Innovation Award”, “Top 100 Scientific and Technological Enterprises in China's Light Industry”, and “Top 500 Creditworthy Enterprises in China”. During the report period, the Company was once again listed on Forbes “Global 2000”, made it onto the “2024 China's Top 500 Private Enterprises List”, and was included in the “2024 World IoT 500 Golden List”, receiving multiple honors including the “Global Business Contribution Award”. It was also selected for the “2024 China’s Top 100 Overseas Brands Index” and the “People’s Craftsmanship Brand” list. In the “2024 China Brand Value Evaluation Information”, it ranked first in the home appliance industry of the light industry group with a brand value of CNY188.253 billion. GREE adheres to the core values of quality first, customer satisfaction, honest operation and win-win for all parties. It builds and establishes its brand with perfect quality and world-leading technology, and continuously creates value for society and consumers. (II) Outstanding R&D capabilities demonstrate an industry leading role The Company adheres to the principle of “independent research and development of core technologies”, builds a multi-level and high- level R&D platform system relying on national-level scientific research platforms, and forms a technological innovation system that is “enterprise-oriented, market-driven, and combines industry, academia, and research”. It continuously overcomes key core technologies and leads the development of the industry. The Company has the world’s largest air conditioner R&D center, with 16 institutes, 152 research institutions, 1,411 laboratories, and 1 academician workstation (electric motor and control). It also has one National Engineering Technology Research Center, one State- level Industrial Design Center, one State Recognized Enterprise Technology Center, and one Robot Engineering Technology R&D Center. At the same time, it has become the research and evaluation base for refrigeration equipment of the National Notification Enquiry Center and the national standard verification point for energy conservation of refrigeration equipment. As of the end of 2024, the Company has cumulatively won 2 National Science and Technology Progress Awards; received a total of 122 important awards at the national, provincial, and industrial levels, and has possessed 46 “World Leading” technologies; has applied for 129,524 patents, including 70,884 invention patents; has obtained 25,883 invention patent grants, making it the only home appliance enterprise to enter the top ten in China's invention patent grants for 9 consecutive years; has won 81 Chinese patent awards, including 3 gold awards for invention and 4 gold awards for appearance; and has got 15 gold awards of International Exhibition of Inventions of Geneva and 12 gold awards of iENA. At the same time, the Company is one of the first batch of national enterprise intellectual property demonstration units, “National Patent Operation Pilot Enterprise”, and won the China Trademark Gold Award. The Company’s steady increase in the number and quality of patents fully demonstrates GREE’s invention and creation capabilities and international leading research and development strength to the world. (III) Leading PQAM mode, achieving “Made in China, Loved by the World” The Company adheres to the quality policy of “pursuing perfect quality, establishing an international brand, and building a century- old enterprise”. It always prioritizes quality and is guided by the pursuit of perfect quality. Through continuous innovation, it enhances product quality to give back to consumers. Innovation drives quality management. GREE’s quality model sets an industry benchmark. Since 2012, the Company has vigorously carried out quality management innovation, method innovation and theoretical innovation, deepened the construction of a quality- strong enterprise, and proposed the forward quality-driven “Five-step Quality Prevention Method” and the reverse quality-driven “D- CTFP Quality Technology Innovation Cycle” methodology; with the T9 comprehensive quality control model and PQAM (perfect quality assurance model) as the core framework, it has established a unique GREE “perfect quality” management model, and won the third “China Quality Award” in 2018. In March 2021, the Company launched a “ten-year free repair” policy for residential air conditioners, which is the longest repair period promised by the Chinese residential air conditioner industry to date. It is also an upgrade of the service quality since GREE was the first in the industry to introduce the “six-year free repair” policy for residential air conditioners in 2005, and it is a demonstration of the strength of GREE air conditioners in leading the industry service standards. The Company 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 2019, the Company’s quality technology innovation cycle D-CTFP was elevated to the national standard Quality Management - Innovation Cycle Guide Based on Customer Demand (GB/T 38356-2019). In 2023, the book “Pursuing Perfection - Innovation & Progress: GREE Quality Model”, co-authored by GREE and South China University of Technology, was selected for the “Best Quality Practices in China in the 21st Century” series published by Standards Press of China. During the report period, the Company once again received the two highest honors in its field, “Enterprise Market Quality Credit AAA Level” and “Five-Star User Satisfaction Benchmark Enterprise”, awarded by the China Association for Quality, demonstrating consumers’ recognition of GREE’s high-quality products and showcasing GREE’s strong strength as a leading player in the industry. Through continuous innovation and outstanding management, GREE has set an industry benchmark with its “Perfect Quality” management model, demonstrating the absolute advantage of “Made in China”. In the future, we will continue to take “pursuing perfect quality” as our responsibility and “satisfying users” as our goal, to win global admiration for “Made in China”! (IV) The full series of home appliances, providing consumers with a high-quality living environment GREE’s products cover a full range of home appliances, including residential air conditioners, HVAC systems, refrigerators, washing machines, water heaters, kitchen appliances, and environmental appliances, fully meeting consumers’ comprehensive needs for a high- quality living experience. During the report period, the Company adhered to the principle of user demand-oriented and launched a series of new home appliances, including AI Savenergior Air Conditioner, Cool Comfort-II Energy-saving Air Conditioner, Ultimate Refresh Air Conditioner, Pure Fresh Air Conditioner, residential central air conditioners with Gentle Air Comfort technology, Pular and Charmo series of photovoltaic storage air conditioners for tropical regions, All-round Freshness Preservation series refrigerators, “Zhenrou” series washing machines, high-efficiency heat exchange series gas water heaters, instant heating wall-mounted pipeline water dispensers, stove range hood sets, air circulators, air cooler, new tower-type warm air fans, and new humidifying skirting boards, providing consumers with a high-quality home living environment. The Company has deepened its layout in areas such as the whole-house intelligent system, the whole-house communication architecture, intelligent voice interaction, and the intelligence of home appliances, achieving the construction of a “Healthy Home” from individual smart products to the entire smart home appliance ecosystem. The Company takes “A Better Life, One Step Ahead” as its core concept and independently created the IoT platform, intelligent decision-making system, G-Voice voice interaction system, intelligent vision system, G-OS IoT operating system, G-Learning comfort and energy-saving algorithm and other intelligent IoT technologies. It has launched a series of smart home products and formed a smart home solution covering five systems: energy, air, health, security and lighting. It has achieved a leap from “GREE, Making Better Home Appliances” to “Smart life, Created by GREE”, and comprehensively and systematically created a healthy and intelligent home environment. (V) A new retail system under autonomous control, meeting consumers' new demands through digitalization The Company is committed to building an independent, controllable, mutually beneficial and win-win channel system. By continuously promoting the innovation of the new retail marketing system, it has formed a dual-line integrated sales network covering the whole country. Through the in-depth application of digital technology, the Company continuously enhances channel efficiency, achieving a win-win situation for the enterprise, distributors and consumers. The Company has established a nationwide dual-channel integrated sales network through 30 regional sales companies across the country, over 30,000 offline outlets, its own online platform and official flagship stores on third-party e-commerce platforms, further strengthening its channel retail capabilities and market service capabilities. It has also set up a unified national marketing and inventory management plan to enhance the transparency and controllability of channel management, reduce channel inventory, optimize logistics costs and improve channel operation efficiency. The Company is actively creating an offline experiential shopping environment and has launched a new channel strategy brand, “Dong Mingzhu Healthy Home”, integrating multiple categories of home appliances to meet consumers’ diverse needs and provide comprehensive and high-quality home life solutions for them. Digitalization empowers new advantages in channel management. By building an advanced digital information system, the Company has achieved full-process digitalization from procurement and logistics to sales and services, enhancing overall efficiency. Digital technology improves the timeliness of sales information for dealers, facilitating precise decision-making and efficient implementation, and further enhancing the service efficiency of dealers and inventory turnover rate. Digital means make the Company's terminal business situation visible, enhancing user stickiness; through the digital upgrade of terminal stores, it deepens the flattening reform of the channel, improves operational efficiency, continuously improves the shopping experience of consumers, and further consolidates the Company's market position. (VI) Scientific production capacity layout and leading intelligent manufacturing level to respond to market demand flexibly The Company scientifically arranges its production capacity distribution based on factors such as the market demand characteristics of different products and the differences in regional production factor endowments. By the end of 2024, the Company had established 77 production bases in multiple provinces and cities including Guangdong, Chongqing, Anhui, and in countries such as Brazil, covering air conditioners, home appliances, industrial products, etc., achieving industrial agglomeration and highly coordinated development of the upstream and downstream industrial chains. The Company, guided by the principles of serving the market, overall planning, local production, and regional collaboration, and following the allocation principles of economic transportation and balanced production, arranges the production capacity of each base to promote the optimal benefits. Meanwhile, the Company has established 6 recycling resource bases, covering the entire industrial chain from upstream production to downstream recycling, and has achieved a green, circular and sustainable development model. With the goal of enhancing the operational efficiency of the entire production process, the Company fully integrates advanced technologies such as industrial robots, CNC machine tools, 5G, and AI into its production scenarios, striving to build and cultivate leading demonstration factories in the industry. By the end of 2024, the Company had been awarded a total of 2 national-level intelligent factories, 3 national-level 5G factories, 9 national-level green factories, and 8 national-level industrial internet pilot demonstrations/application cases, fully demonstrating the Company's leading position in the field of intelligent manufacturing. Precise production capacity layout and leading intelligent manufacturing level further enhanced GREE's manufacturing and cost advantages, realized the rapid response to market demand and brought high-quality life enjoyment to consumers. (VII) With strong self-research and self-made ability of core components, the comprehensive competitiveness of products continues to lead the industry The Company possesses strong capabilities in core component research and development as well as manufacturing. It has subsidiaries such as Landa Compressor, Kaibang Motor, Xinyuan Electronics, Gree Electric, and Gree Mold. It leads the industry in terms of production capacity, technology and quality, and has successively won honors such as the "National Quality Award", "National Quality Benchmark", "Top 100 Enterprises in China's Electronic Components Industry", "National Intellectual Property Advantage Enterprise", "Guangdong Famous Product", and "Guangdong Provincial Enterprise Technology Center". It has established key industry experimental and testing centers and research centers such as the "National CNAS Testing Center", "Guangdong Provincial Engineering Technology Research Center for Key Electronic Components", "Guangdong Provincial Engineering Technology Research Center", and "Guangdong Provincial Intelligent Mold Technology Innovation Center", demonstrating the Company's hard power and brand influence in industrial product development. The Company's independently developed products, including the two-stage enthalpy-increasing compressor, three-cylinder two-stage variable displacement compressor, rare-earth-free main drive motor system, high-performance linear servo motor and driver, high- performance servo motor and driver for industrial robots, and magnetic levitation motor drive system, have all received the "World Leading" technology certification. The CD294W large ripple aluminum electrolytic capacitor with welded plates has been shortlisted for the 2024 AWE Award. The Company has a comprehensive grasp of the advanced technology of core components and continuously consolidates its leading position in the market. GREE has strong R&D capability of core components and excellent processing and manufacturing capability. The GA-UHD500 horizontal machining center from GREE adopts a stepped column lightweight and high-rigidity structural design, breaking through the technical challenges of high speed and high precision. Its maximum feed rate reaches 60 m/min, with a minimum division of 0.001°. The positioning accuracy and repeatability of the equipment are 0.006 mm and 0.004 mm respectively, and the efficiency is increased by more than 15% compared with the same type of equipment. It meets the high-quality processing requirements of core components. The powerful R&D and manufacturing capabilities of core components ensure the extremely high degree of autonomy and comprehensive competitiveness of the Company's products, providing strong support for the Company's continuous and stable development and guaranteeing that the Company's products always remain at the leading position. (VIII) Refine the cost control system and continuously enhance the competitiveness of products The Company adheres to the customer demand-oriented approach, combines its business goals, and establishes and improves the cost control system. It deepens the cost control of products, implements value chain analysis, and through the decomposition and analysis of the impact of the input, transformation and output of costs in each business link inside and outside the group on the final value of the product, it improves operations and reduces costs accordingly, thus forming a sustainable competitive advantage. （未完）  |