1、GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 April 2021 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 1 Section I Important Notice,Table of Contents and Paraphrase The Board of Directors,Board of Supervisors,all direc
2、tors,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.
3、Dong Mingzhu,the Companys 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
4、 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
5、 therefore be aware of risk factors attendant in investment and understand the differences between plans,forecasts and commitments.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 number of 5,832,851,21
6、7 shares of the Company enjoying profit distribution rights as of 28 April,2021(the total stock capital of 6,015,730,878 shares excluding the 182,879,661 shares held in the repurchase account of the Company),the Company plans to distribute all shareholders a cash dividend of RMB 30(tax included)per
7、10 shares,but does not plan to give any bonus share or use any public reserve funds for capitalization.GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 2 Table of Contents Section I Important Notice,Table of Contents and Paraphrase.1 Section II Company Profile and Main Financial Indices.4 S
8、ection III Corporate Business Overview.9 Section IV Discussion and Analysis of Business Operation.17 Section V Important Events.53 Section VI Changes in Stock Capital&Information of Shareholders.83 Section VII Related Information of Preferred Stock.91 Section VIII Related Information of Convertible
9、Corporate Bonds.92 Section IX Directors,Supervisors,Senior Management Personnel and Employees.93 Section X Corporate Governance.109 Section XI Related Information of Corporate Bonds.114 Section XII Financial Report.115 Section XIII References.274 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report
10、2020 3 Paraphrase Items Means Contents Company,the Company,the enterprise,GREE ELECTRIC APPLIANCES or GREE Means GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI GREE GROUP Means Zhuhai Gree Group Co.,Ltd.Zhuhai Mingjun Means Zhuhai Mingjun Investment Partnership(Limited Partnership)Finance Company Means Zhuh
11、ai Gree Group Finance Company Limited Jinghai Internet Means Jinghai Internet Technology Development Co.,Ltd.Yinlong Means Zhuhai Yinlong New Energy Co.,Ltd.CSRC Means China Securities Regulatory Commission Report Period Means 1 January,2020 to 31 December,2020 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI
12、 Annual Report 2020 4 Section II Company Profile and Main Financial Indices 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 E
13、LECTRIC APPLIANCES,INC.OF ZHUHAI Name Abbreviation in Foreign Language(if any)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 Provinc
14、e Post Code of Office Address 519070 Website http:/Email II.Contacts and contact information Board Secretary Securities Affairs Representative Name Deng Xiaobo Zhang Zhouhu,Yan Zhangxiang Address Jinji West Road,Qianshan,Zhuhai City,Guangdong Province Jinji West Road,Qianshan,Zhuhai City,Guangdong P
15、rovince Tel 0756-8669232 0756-8669232 Fax 0756-8614998 0756-8614998 Email III.Information disclosure and place of the report Media designated by the Company for information disclosure China Securities Journal,Securities Times,Shanghai Securities News and Securities Daily Website specified by CSRC fo
16、r release of the Annual http:/GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 5 Report Place where the Annual Report is available for inspection Investment Management Department of the Company IV.Alteration of registration Organization code 91440400192548256N Changes(if any)in the main bus
17、iness since listing of the Company No change Changes(if any)in the controlling shareholders On 2 December,2019,Gree Group and Zhuhai Mingjun signed the Share Transfer Agreement.Gree Group planned to transfer 902,359,632 shares of the Company with unlimited sales conditions held by Gree Group to Zhuh
18、ai Mingjun at a price of RMB 46.17/share(accounting for 15%of the Companys total equity);On 13 December,2019,the Zhuhai Municipal Peoples Government and the State-owned Assets Supervision and Administration Commission of the State Council(SASAC)of Zhuhai City separately approved the share transfer.G
19、ree Group obtained the Transfer Registration Confirmation issued by China Securities Depository and Clearing Corporation Limited(CSDC)Shenzhen Branch on 3 February,2020.The share transfer registration procedures for the transfer of this agreement have been completed,and the transfer date is 23 Janua
20、ry,2020.After the completion of the share transfer registration,the Company has neither a controlling shareholder nor an actual controller.V.Other related information Accounting firm engaged by the Company Name of the Accounting Firm Union Power Certified Public Accountants(Special General Partnersh
21、ip)Office Address No.169 Donghu Road,Wuchang District,Wuhan City Names of Accountants as Signatories Han Zhenping,Geng Ting Sponsor engaged by the Company to perform continuous supervision during the Report Period Applicable Not applicable Name of the sponsor Office address of the sponsor Name of th
22、e recommended representative Continuous supervision period Huatai United Securities Co.,Ltd.26F,CTS Tower,No.4011,Shennan Boulevard,Futian District,Shenzhen Gu Chongxiang,Li Shijing From 26 July,2019 to 25 July,2020 Financial adviser engaged by the Company to perform continuous supervision during th
23、e Report Period Applicable Not applicable GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 6 VI.Main accounting data and financial indices Whether the Company has retroactive adjustment or restatement of previous accounting data Yes No Unit:Yuan Item 2020 2019 Increase/Decrease over the pre
24、vious year 2018 Operating Revenue(Yuan)168,199,204,404.53 198,153,027,540.35-15.12%198,123,177,056.84 Net profit attributable to shareholders of listed Company(Yuan)22,175,108,137.32 24,696,641,368.84-10.21%26,202,787,681.42 Net profit attributable to shareholders of listed Company less non-recurrin
25、g gains and losses(Yuan)20,285,816,036.00 24,171,511,911.32-16.08%25,580,865,501.38 Net cash flow generated from operating activities(Yuan)19,238,637,309.16 27,893,714,093.59-31.03%26,940,791,542.98 Basic earnings per share(Yuan per Share)3.71 4.11-9.73%4.36 Diluted earnings per share(Yuan per Share
26、)3.71 4.11-9.73%4.36 Weighted average return on net assets 18.88%25.72%-6.84%33.36%Item At the end of 2020 At the end of 2019 Increase/Decrease over the previous year At the end of 2018 Total asset(Yuan)279,217,923,628.27 282,972,157,415.28-1.33%251,234,157,276.81 Net asset attributable to sharehold
27、ers of listed Company(Yuan)115,190,211,206.76 110,153,573,282.67 4.57%91,327,095,069.10 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 discl
28、osed 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 prof
29、it and net assets in the financial report disclosed under overseas accounting standards and that disclosed under domestic accounting standards Applicable Not applicable GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 7 There was no difference in net profit and net assets in the financial r
30、eport disclosed under overseas accounting standards and that disclosed under domestic accounting standards during the Report Period.VIII.Quarter-based main financial indicators Unit:Yuan Quarter 1 Quarter 2 Quarter 3 Quarter 4 Operating incomes 20,395,535,183.42 49,106,787,186.52 56,387,073,628.99 4
31、2,309,808,405.60 Net profit attributable to shareholders of listed company 1,558,013,539.01 4,804,123,838.63 7,336,584,665.51 8,476,386,094.17 Net profit attributable to shareholders of listed companies after deduction of non-recurring profit and loss 1,429,583,505.27 4,566,954,114.64 6,585,565,313.
32、26 7,703,713,102.83 Net cash flows from operating activities-11,772,862,523.80 7,255,186,786.04 7,549,675,839.30 16,206,637,207.62 Whether 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-recu
33、rring profit and loss items and amounts Applicable Not applicable Unit:Yuan Item Amount in 2020 Amount in 2019 Amount in 2018 Description Gains and losses from disposal of non-current assets(including the provision for asset impairment write-off part)-4,974,224.62-9,293,929.38-23,064,935.35 For deta
34、ils,see Note(V)57,Note(V)58,and Note(V)59 Governmental subsidies recorded into the current gains and losses(excluding the governmental 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)1,346,168,393.38 1,
35、215,852,371.66 671,678,104.47 For details,see Note(V)52 and Note(V)58 Capital occupation fee collected from the non-financial institution and recorded into the current gains and losses 883,505.62 359,713.10 1,262,805.80 Net profits or losses of the subsidiaries in the current period from the beginni
36、ng of the period to the combination date that are generated by business combination involving 184,503.98 GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 8 enterprises under common control Gains and losses caused by fair value changes from the holding of trading financial assets,derivative
37、financial assets,trading financial liabilities and derivative financial liabilities,and investment income obtained from the disposal of trading financial assets,derivative financial assets,trading financial liabilities,derivative financial liabilities and other debt investments,except for the effect
38、ive hedging business related to the Companys normal business operations 877,450,950.74 1,449,722.86 151,222,484.83 Reversal of impairment provision for the accounts receivable and contract assets for which an independent impairment test is conducted 2,320,229.26 Non-operating incomes and expenditure
39、s other than the above items 50,024,914.68-530,486,147.03 32,323,207.44 For details,see Note(V)58 and Note(V)59 Other profit and loss items that conform to the definition of non-recurring profit and loss 17,915,425.64 997,770.17 6,119,851.77 Less:Influence amount of income tax 386,974,457.37 147,189
40、,032.83 170,139,883.37 Influence amount of minority equity(after tax)11,202,406.75 6,561,011.03 49,984,188.79 Total 1,889,292,101.32 525,129,457.52 621,922,180.04-Explanation should be given for non-recurring profit and loss items defined by the Company according to Explanatory Announcement No.1 on
41、Information Disclosure for Companies Offering Their Securities to the Public-Non-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 Profi
42、t and Loss and defined as recurring profit and loss items.Applicable Not applicable 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 d
43、efined by the Company as recurring profit and loss items during the Report Period.GREE ELECTRIC APPLIANCES,INC.OF ZHUHAI Annual Report 2020 9 Section III Corporate Business Overview I.Major businesses engaged in during the Report Period(I)Major businesses and position in industry Gree Electric Appli
44、ances,Inc.of Zhuhai is a diversified and technological global industrial group and has three major brands:Gree,TOSOT and KINGHOME.Its products have been expanded to cover the two major fields of household consumer goods and industrial equipment,including residential air conditioners,HV AC,refrigerat
45、ors,washing machines,water heaters,kitchen appliances,environmental appliances,communication products,smart buildings,and smart household appliances in the consumption field;high-end equipment,precision moulds,freezers and refrigeration equipment,motors,compressors,capacitors,semiconductor devices,p
46、recision casting equipment,basic materials,industrial energy storages,and renewable resources in the industrial field Gree products are sold in more than 160 countries and regions,providing more than 400 million users with satisfactory products and services,for the purpose of creating a better life.
47、In 2020,Gree was again listed in the Fortune Global 500 and ranked the 436th by virtue of its outstanding comprehensive strength;listed in the Forbes Global 2000 Worlds Best Employers and ranked the 246th,rising 14 places from 2019.According to the data released by HV AC Information,Gree took the le
48、ad in the central air conditioner market relying on a market share of 13.9%and has maintained the position for nine consecutive years in the Chinese market;according to the 2020 domestic sales data of air conditioner brands published by ChinaIOL.com,Gree air conditioners ranked the first in the fiel
49、d with a share of 36.9%,taking the lead for 26 years.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
50、 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 ent
