1、GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 00 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 April 2017 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 1 Section I Important Notice,Table of Contents and Paraphrase The Board of Directors,Board of Supervisors,all di
2、rectors,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 responsibiliti
3、es.Dong Mingzhu,the Companys responsible person,Wang Jingdong,responsible person in charge of accounting work and Liao Jianxiong,in-charge person of accounting institution(accounting superintendent)hereby declare and warrant that the financial report in the Report is authentic,accurate and complete.
4、All the directors attended the meeting of the Board of Directors in respect of deliberation of the Report.The Companys profit distribution proposal passed upon deliberation at the meeting of the Board of Directors is set out as below:Based on the total stock capital of 6,015,730,878 of the Company,a
5、ll directors were distributed a cash dividend of RMB 18(tax included)per 10 stocks and given 0 bonus share(tax included).Public reserve funds were not used for capitalization.GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 2 Table of Contents Section I Important Notice,Table of Contents an
6、d Paraphrase.1 Section II Company Profile and Main Financial Indices.4 Section III Corporate Business Overview.9 Section IV Discussion and Analysis of Business Operation.16 Section V Important Events.48 Section VI Changes in Stock Capital&Information of Shareholders.57 Section VII Related Informatio
7、n of Preferred Stock.63 Section VIII Directors,Supervisors,Senior Management Personnel and Employees.64 Section IX Corporate Governance.85 Section X Financial Report.91 Section XI Index of Documents.234 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 3 Paraphrase Items Means Contents Compa
8、ny,the Company,the enterprise,GREE ELECTRIC APPLIANCES or GREE Means GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI GREE GROUP Means Zhuhai Gree Group Co.,Ltd.Finance Company Means Zhuhai Gree Group Finance Company Limited Jinghai Guaranteed Means Hebei Jinghai Guaranteed Investment Co.,Ltd.CSRC Means China
9、 Securities Regulatory Commission Guangdong Securities Regulatory Bureau Means Guangdong Regulatory Bureau of CSRC Report Period Means the period from 1 January 2016 to 31 December 2016 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 4 Section II Company Profile and Main Financial Indices
10、I.Company information Stock Abbreviation GREE ELECTRIC APPLIANCES Stock Code 000651 Stock Exchange Shenzhen Stock Exchange Name in Chinese 珠海格力电器股份有限公司 Name Abbreviation in Chinese 格力电器 Name in Foreign Language(if any)GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Name Abbreviation in foreign language(if an
11、y)GREE Legal Representative Dong Mingzhu Registered Address Jinji West Road,Qianshan,Zhuhai City,Guangdong Province Post Code of Registered Address 519070 Office Address Jinji West Road,Qianshan,Zhuhai City,Guangdong Province Post Code of Office Address 519070 Website http:/Email II.Contacts and con
12、tact information Board Secretary Securities Affairs Representative Name Wang Jingdong Address Jinji West Road,Qianshan,Zhuhai City,Guangdong Province Tel 0756-8669232 Fax 0756-8622581 Email GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 5 III.Information disclosure and place of the report
13、 Media designated by the Company for information disclosure China Securities Journal,Securities Times,Shanghai Securities News and Securities Daily Website specified by CSRC for release of the Annual Report http:/Place where the Annual Report is available for inspection Securities Legal Affairs Depa
14、rtment of the Company IV.Alteration of registration Organization code 91440400192548256N Changes(if any)in the main business since listing of the Company No change Changes(if any)in the controlling shareholders No change V.Other related information Accounting firm engaged by the Company Name of the
15、Accounting Firm Union Power Certified Public Accountants(Special General Partnership)Office Address No.169 Donghu Road,Wuchang District,Wuhan City Names of Accountants as Signatories Wang Bing,He Li Sponsor engaged by the Company to perform continuous supervision during the Report Period Applicable
16、Not applicable 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 will retroactively adjust and restate the accounting data of previous years because of change
17、s on the accounting policy and correction of accounting errors,etc.Yes No 2016 2015 Increase/Decrease over the previous year 2014 Operating Revenue(Yuan)108,302,565,293.70 97,745,137,194.16 10.80%137,750,358,395.70 Net profit attributable to shareholders of listed Company(Yuan)15,420,964,990.94 12,5
18、32,442,817.66 23.05%14,155,167,229.36 Net profit attributable to shareholders of listed Company less non-recurring gains and 15,600,520,445.21 12,313,582,570.49 26.69%14,144,950,462.04 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 6 losses(Yuan)Net cash flow generated from operating acti
19、vities(Yuan)14,859,952,106.92 44,378,381,827.68-66.52%18,939,165,507.73 Basic earnings per share(Yuan per Share)2.56 2.08 23.08%2.35 Diluted earnings per share(Yuan per Share)2.56 2.08 23.08%2.35 Weighted average return on net assets 30.41%27.31%3.10%35.23%At the end of 2016 At the end of 2015 Incre
20、ase/Decrease over the previous year At the end of 2014 Total asset(Yuan)182,369,705,049.35 161,698,016,315.06 12.78%156,230,948,479.88 Net asset attributable to shareholders of listed Company(Yuan)53,863,951,278.13 47,521,376,091.77 13.35%44,152,654,824.68 VII.Accounting Data Differences under Domes
21、tic 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 fina
22、ncial 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 accountin
23、g 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 Quar
24、ter 1 Quarter 2 Quarter 3 Quarter 4 Operating incomes 24,640,675,696.66 24,542,144,380.03 33,245,891,313.38 25,873,853,903.63 Net profit attributable to shareholders of listed company 3,159,816,132.99 3,242,653,852.65 4,826,589,275.21 4,191,905,730.09 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Re
25、port 2016 7 Net profit attributable to shareholders of listed companies after deduction of non-recurring profit and loss 3,133,470,823.80 3,920,819,811.65 4,700,144,150.16 3,846,085,659.60 Net cash flows from operating activities 6,117,619,903.98 5,337,251,013.81 2,707,392,718.78 697,688,470.35 Whet
26、her major differences exist between the above financial indicators or their sum and those in the disclosed quarterly report and semi-annual report Yes No IX.Non-recurring Profit and Loss Items and Amounts Applicable Not applicable Unit:Yuan Item Amount in 2016 Amount in 2015 Amount in 2014 Descripti
27、on Gains and losses from disposal of non-current assets(including the provision for asset impairment write-off part)-12,245,120.40-8,078,976.10-13,604,321.23 Profit and loss from disposal of fixed/intangible assets Governmental subsidies recorded into the current gains and losses(excluding the gover
28、nmental subsidies closely relating to the business of the enterprise and enjoyed by a fixed quota or a fixed amount in accordance with the state policies)960,287,886.56 1,160,736,574.04 681,875,856.67 Financial rewards,technological innovation subsidies and development project grants,etc.Gains and l
29、osses of the fair value change of the trading financial asset and liability held by the Company,investment income from the disposal of the trading financial asset and liability and available-for-sale financial asset,except for the effective hedging business in relation to the normal operation of Com
30、pany-1,136,058,635.86-916,913,668.52-653,382,850.98 Investment income,gains and losses from changes in fair value Reversal of impairment provision for the accounts receivable for which an independent impairment test is conducted 5,556,302.40 Non-operating incomes and expenditures other than the abov
31、e items 28,307,584.72 37,595,046.55-5,068,130.68 Less:Influence amount of income tax 17,078,192.05 44,984,019.01-4,880,796.83 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 8 Item Amount in 2016 Amount in 2015 Amount in 2014 Description Influence amount of minority equity(after tax)8,325,
32、279.64 9,494,709.79 4,484,583.29 Total-179,555,454.27 218,860,247.17 10,216,767.32-Explanation should be given for non-recurring profit and loss items defined by the Company according to Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Non
33、-recurring Profit and Loss and for non-recurring profit and loss items which are listed in Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Non-recurring Profit and Loss and defined as recurring profit and loss items.Applicable Not applica
34、ble No non-recurring profit and loss items which are defined or listed in 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 during the Report Perio
35、d.GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 9 Section III Corporate Business Overview I.Major Businesses Engaged in during the Report Period 1.Major businesses and position in industry Currently,Gree runs two major brands of GREE and TOSOT,covering a wide range of products such as re
36、sidential air conditioners,central air conditioners,air source water heaters,home appliances,industrial products and mobile phones.Gree has a number of subsidiaries including Landa Compressor,Gree Electrical,Kaibang Motor,Xinyuan Electronics,Intelligent Equipment,Precision Mould,and Renewable Resour
37、ces,covering the whole industry chain from upstream production of components to downstream recycling of waste products.Gree has developed products covering 20 major categories,400 series and over 12,700 varieties,which have been sold to over 300 million users in over 160 countries and regions.Here,t
38、he production and sales volume of Gree residential air conditioners has been No.1 in the air conditioner industry of China for 22 consecutive years since 1995,and taken the lead in the world for 12 years since 2005.According to the statistics of ChinaIOL.com,the domestic market share of Gree residen
39、tial air conditioners reached 42.73%in 2016.According to the statistics of,the domestic market share of Gree commercial air conditioners reached 16.2%and maintained the first place for five consecutive years.2.Industry Overview According to the statistics of ChinaIOL.com,due to the downward pressure
40、 on the overall economy in China,the cumulative domestic sales volume of residential air conditioners was 60,485,600 sets in 2016,indicating a year-on-year drop of 3.64%.Thanks to the improved economic conditions abroad,the export volume increased by 9.74%as compared to 2015,and 47,927,400 sets of a
41、ir conditioners have been exported in total.Among residential air conditioners,in addition to the intelligent characteristic of residential air conditioners that becomes more and more significant,product energy efficiency,energy saving and environmental protection also turn to be important condition
42、s for a brand to GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2016 10 have a foothold in the market.According to the statistics of,the overall capacity of Chinas central air conditioner market in 2016 was about RMB70 billion,indicating an increase of 10%over 2015,and a trend of recovery on t
43、he market.The VRF units and unitary units were still the products that drove the market growth in 2016.Coal-to-electricity became one of the most noteworthy events in the HVAC industry in 2016.The significance of the air-source heat pump water heater,the major product of coal-to-electricity,is self-
44、evident to the whole HVAC industry.Especially under the situation that the central air conditioning project market is relatively sluggish,it seems that coal-to-electricity brings another possibility for the development of central air conditioner manufacturing enterprises.In terms of brand concentrat
45、ion,as the industry brand concentration was further enhanced,the brands of domestic home appliance series and those of domestic chillers were combined into national brands to compete with American and European brands and Japanese and Korean brands,creating a situation of tripartite confrontation.The
46、 overall market share of nine major national brands including Gree has reached about 40%,far higher than that of the other two camps,wherein Gree ranked first with the market share of 16.2%.II.Significant Changes in Major Assets 1.Significant changes in major assets Major assets Significant changes
47、Equity assets None Fixed assets None Intangible assets None Construction in progress Year-on-year decrease of 71%,caused by conversion to fixed assets from the construction in progress that has reached the intended usable condition 2.Major overseas assets Applicable Not applicable GREE ELECTRIC APPL
48、IANCES,INC.OF ZHUHAI Annual Report 2016 11 III.Core Competence Analysis 1.Brand advantage of worldwide reputation and firm channel discourse power Gree is the largest state-controlled listed company integrating R&D,production,sales and service in the world.The production and sales volume of Grees re
49、sidential air conditioners has ranked No.1 in the air conditioner industry of China for 22 consecutive years since 1995,and taken the lead in the world for 12 consecutive years since 2005,securing its leading position in the industry.In 2016,Gree shouldered the responsibility of the state,regarded r
50、e-energizing Made in China as its responsibility and implemented brand promotion and marketing by centering on The Pillars of a Great Power.Both the brand promotion effect and activity ranked in the forefront of the industry:Gree won the China Brand Innovation Award granted by Peoples Daily,Industry
