The news of the star blue-chip Gree Electric Appliances was ups and downs in just 24 hours.
On the evening of April 25th, Gree Electric Co., Ltd. released a very bright 2017 annual report, but did not pay dividends. This abnormal behavior immediately triggered the investment circle. On the opening of the 26th, Gree's stock price opened sharply lower limit once. After the close, the Shenzhen Stock Exchange sent a letter. Inquire why there is no dividend. On the evening of the same day, Gree Electric quickly responded that it should fully consider the investor’s demands and plan to distribute dividends in mid-2018.
The adjustment of Gree’s dividend strategy and the heated debates triggered by the news events not only reflect the high demands and high attention of investors on high-quality companies, but also highlight the timely and decisive response of good companies to market opinion and regulatory attitudes. From a historical point of view, we can also examine the changes and changes behind Gree's traditional 11-year dividend distribution.
Careful investors will discover from the annual report that the guiding ideology of Gree Electric's annual business operation in 2018 has been changed from 'Challenge and Control the Future' of the previous year to 'Fight endlessly and change to control the future'.
In fact, Gree was not a sudden change. In July 2016, Chairman of Gree Electric Appliances and President Dong Mingzhu proposed the diversification strategy for the first time and began to work hard to change the pattern of air conditioning as a single main business. Gree also presented itself to the company in its annual report. A new position - a global industrial group.
Change the pass. 'Alternative' has become Gree's new ideas and new outlets. Despite many doubts and even taunts in the market, Gree has made gratifying gains in many aspects in the past two years.
In 2017, in addition to continued rapid growth in sales of air conditioners, Gree's self-developed electric appliances such as rice cookers, water purifiers, and air purifiers also increased by 33.95%. Gree smart equipment revenue reached 2.126 billion yuan last year, a year-on-year increase. 1220.27%, far better than expected.
Regarding the reason why the annual report did not contribute to dividends, Gree replied to the Shenzhen Stock Exchange that the company plans to gradually expand its air-conditioning production capacity, and plans to focus on the layout of smart equipment, smart appliances, integrated circuits and other industrial fields to achieve sustainable, stable and healthy development of the company.
'In order to become a manufacturing powerhouse in China, enterprises should become devotees and creators. 'After the recent sudden 'ZTE incident', Dong Mingzhu told the Shanghai Daily: 'Gree is doing its own chip and doing CNC machine tools.'
Regarding the annual report without dividend, Gree responded that it was not Dong Mingzhu’s personal decision but the result of the company’s board decision. The company’s announcement on the evening of April 25 showed that all seven board members voted in favor.
In response to the change in market expectations caused by this non-profit dividend, Gree related sources told reporters that this is a special approach and special approach taken in a special period of time to achieve the long-term development of Gree Electric Appliances. No dividends have been frustrated with the previous acquisition of Silver Dragon by Gree. And whether Dong Mingzhu can get re-election, there is no association.
'Do not care about other people's assessment of their own, keep the initial heart, do their own thing, chase their own dreams is the most important.' On the morning of the 26th, Dong Mingzhu appeared in Suzhou, in a program recording site expressed his views.
She said that entrepreneurs must adhere to their own dreams. If they do not face difficulties, they will withdraw. There will be many difficulties and setbacks along the way. The most important thing is that the direction of entrepreneurship should be clear and clear.
Dong Mingzhu's strong and prosperous character, as always, has never changed.
A merit fund manager told the reporter that the core soul person is one of the important factors for the long-term growth of a company. He believes that the vision and insight of the soul person is something the general investor cannot understand and deeply approve. Because the investor Short-term interests are often pursued, and short-term benefits tend to conflict with the company's long-term strategy. How to choose between, how to play, is a problem.
The above-mentioned Gree Electric related person told reporters that in the future, Gree will still insist on several 'unchanged': the belief that creating more value for the whole society will not change; the idea of persisting in creating sustainable returns for the majority of investors will not change; The direction of taking the path of independent innovation and development will not change.