On April 26, Gree Electric Appliances received a letter of concern from the Shenzhen Stock Exchange. The Shenzhen Stock Exchange asked the company to explain the specific reason and rationality of the cash dividends for 2017. On the evening of the same day, Gree Electric Co., Ltd. stated in its reply letter that 2018 was considered for consideration. Mid-year dividend payment.
Previously, Gree Electric released its 2017 annual report, showing that its 2017 net profit was 22.402 billion yuan, a year-on-year increase of 44.87%. But in the annual report, Gree Electric Appliances did not list the dividend plans for the first time in nearly 11 years. Meanwhile, according to Gree Electric Appliances' merger in the first quarter of this year The balance sheet shows that as of the end of the first quarter, the company's undistributed profit was RMB 61.3 billion.
Regarding the reasons for no dividends, Gree Electric stated that the air-conditioning industry in which the company's main business is located is characterized by large capital investment and strong seasonality in consumption, and that logistics costs are increasing, to further reduce operating costs and strengthen competitive advantages. The company is planning and The key investment projects implemented include the construction of new air-conditioning base projects, such as Luoyang, Nanjing Base is under planning, the Hangzhou base is under construction, and the smart factory upgrade project, etc.
According to an announcement issued by Gree Electric Appliances, the above projects are currently at the research and planning stage. The project plan involves a wide range of projects. It is expected that the amount of funds used will be large and there is still uncertainty. It is difficult to accurately measure capital demand and cash flow, so it is difficult for the company to determine 2017. The appropriate amount of annual cash dividends. Gree said that the company will quickly determine the capital needs and cash flow calculations, give full consideration to investors' demands and conduct mid-2018 dividends. Dividends will be determined according to the company's funds at that time.