On the evening of April 25th, Gree Electric disclosed its annual report. The company's 2017 revenue was 148.286 billion yuan, up 37% year-on-year, and net profit was 24.402 billion yuan, a year-on-year increase of 45%, hitting a record high. With such a good performance, Gree had such a good performance. The appliance company announced that it had no dividend plan in 2017. This is the first time Gree Electric Appliances has not paid dividends since 2007. It has been 11 years since the last non-dividend.
Prior to this, on April 26, 2017, Gree released its 2016 annual report, saying that it would pay out RMB 10.828 billion to shareholder dividends. The generous dividend surpassed that of the first Kweichow Moutai to create a new record for the company in the industry. Can be called 'spoiled'.
Dong Mingzhu once said at the Global Hard Technology Innovation Conference in 2017: 'If someone buys Gree stock, he will be very happy because (Gree) has a dividend of nearly 40 billion in five years. A good listed company is to stick to dividends for shareholders. , To pay more taxes for the country, to create good benefits for employees. '
However, on October 28, 2016, Gree’s Extraordinary General Meeting of Shareholders, Dong Mingzhu also published another statement that “If you don’t give you dividends in five years, how would you like me?”. In the presence of more than one hundred people, In response to the shareholders’ questioning session, Dong Mingzhu said, “Gree did not treat you badly! I can't say too much about this. You see what several of the listed companies do to give you dividends? I don’t give you dividends in 5 years. You again What can you do with me? Two years will give you 18 billion yuan. Will you go and see which company gives you so much? Gree people from 1 billion, and companies that have not even lost profits from 1% do today, reaching 13% Is the profit coming from you?'
At that time, the proposal to issue additional shares and raise funds to acquire Yinlong New Energy held a voting. However, after Gree Electric announced the acquisition plan, it caused great controversy among the investors.
Image Source: Vision China
Therefore, Gree Electric disclosed its 2017 annual report, but in the case of record-high net profit, it did not make any dividends. It could not help but make some investors take advantage of it. In Weibo and snowball online, netizens expressed their dissatisfaction with Gree Electric Appliances. Emotions. There are even netizens' performances that are 'beautiful', Gree's disregard for the interests of minority shareholders'.
Image Source: Weibo
Image Source: Snowball
From the perspective of historical dividend data of Gree Electric Appliances, a total of 19 cash dividends have been implemented since listing in 1996, and there have been only 3 dividends in 1996, 2006 and 2017. Since the listing, cumulative cash dividends have reached RMB 41.7 billion. The rate reached 40.96%.
Picture Source: wind
Coincidentally, Midea also announced the 2017 profit distribution implementation announcement on April 25. The announcement shows that the US-based Group will implement a cash dividend distribution plan of 10 to 12 in 2017. But in the long run, the Midea Group has re-listed since 2013. The dividend rate is 31.7%, which is lower than the dividend rate of Gree Electric 40.96%.
Picture Source: wind
As for the reasons why Gree Electric Appliances did not distribute dividends, its 2017 annual report explained that it was to retain profits in the company's development of production bases, smart factories, and the development and promotion of smart industries, integrated circuits and other new industries. , Stability, healthy development, and better safeguard the long-term interests of all shareholders.
