Gree 2013 achieves revenue of RMB 120 billion

Gree Electric recently released its 2013 performance report. According to the report, the company achieved total operating revenue of RMB 12.003 billion in 2013, an increase of 19.90% year-on-year; net profit attributable to shareholders of listed companies was RMB 10.813 billion, an increase of 46.53% year-on-year, reaching the highest level in history.

This "anticipated" brilliant performance received high recognition from the market. On the same day, Gree Electric Appliance (000651) soared more than 5 percentage points to close at 29.57 yuan per share.

According to the current public financial data, Gree Electric Appliances is China's first home appliance company with an annual net profit of over 10 billion yuan.

Net Profit Leaders At the beginning of 2013, Gree Electric put forward the ambitious goal of “strive for revenue of 120 billion yuan in 2013, net profit and tax revenue to reach 10 billion yuan in 2013”, which once caused the market to question.

However, as early as last October, after Gree Electric's third quarterly report was released, several research institutions have raised Gree’s full-year earnings forecasts and are optimistic about its follow-up performance.

Analysts of Guotai Junan once stated that higher revenue growth and lower inventory levels reflect Gree's positive channel stocking. As a result, the company’s growth in the fourth quarter was optimistic and exceeded market expectations.

On January 20, Gree Electric used data to corroborate previous market expectations. The annual revenue exceeded RMB 120 billion, the total profit exceeded RMB 13.1 billion, and the net profit exceeded RMB 10.8 billion, making China the first home appliance company with a net profit of more than RMB 10 billion.

According to industry sources, benefiting from the recovery of the home appliance industry, the performance of other home appliance manufacturers will not be ugly in 2013, but it will certainly be inferior to Gree Electric Appliances in terms of net profit and profit margin.

Gree Electric Co., Ltd. stated that in 2013, the company insisted on being consumer-oriented, driven by innovative technologies, brand influence, and management capabilities, and focused on creating quality products to improve management efficiency through group management, procurement, and group capital operation. Through production automation and information construction, we will improve operational efficiency, continuously upgrade quality, optimize product structure, give full play to the company's entire industry chain, scale costs, and channel advantages, so as to further enhance the company's overall profitability.

Exports maintained rapid growth Although Gree Electric's 2013 overseas sales figures were not yet known, according to Gree’s related overseas market leaders at the Canton Fair last autumn, Gree’s export growth from January to September 2013 was close to 20%. And it is expected that exports will continue to maintain a 20% increase in 2014.

The responsible person stated that, on the one hand, the confidence is based on the resumption of growth in the market demand of Gree Electric Appliances' major exporting countries; on the other hand, it is related to Gree's own grasp of the core technological competitiveness and the increase in the proportion of its own branded exports.

At present, Gree's independent brands have exported more than 100 countries and regions. In many countries and regions, Gree has become the first air-conditioning brand in the local market.

Experts pointed out that Gree Electric Appliances' overseas market has always maintained a steady growth, which is inseparable from the principle of “high-tech, high-quality, high-performance” development. The development of Gree air-conditioners has also driven the air-conditioning industry's advancement. China has become an important force influencing the global refrigeration industry.

Where are the future growth points?

Dong Mingzhu, chairman of Gree Electric, once said: "The most important thing in corporate development is technology and innovation. If we can maintain technological leadership and innovative strength, I think the market is infinite."

It is reported that Gree Electric Appliances is currently accelerating the establishment of diversification in specialization, strengthening the deep integration of the industry, development of related (refrigeration heating and ventilation equipment) diversification, "horizontal and longitudinal" wings together.

“The future development space of Gree Electric Appliances is central air-conditioning,” Dong Mingzhu said clearly. In addition, Life Electric is another profit growth point of Gree Electric Appliances.

"The company's commercial air-conditioning business maintained a 40% compound growth growth. The living appliance business received more emphasis and attention from the company's management in 2013. The TOSOT brand was launched. The product design gave a fresh feeling and maintained the company. We always take quality and technology as our fundamental development strategy. We are optimistic about the company's new business expansion,” said industry analyst of Guosen Securities.

“Although it is now an era of Internet marketing, it is ultimately technology and products that determine whether to win or lose. Gree Electric Appliances will insist on 'being down-to-earth' to walk and do what it needs to do. We will truly support China’s manufacturing with quality products and leading technologies.” Pearl said, "The transformation of the real economy cannot be overshadowed."