On the evening of April 25th, Gree released its 2017 annual report. As a high-quality white horse blue-chip stock, the Gree Electric Appliance's annual report is not surprising. But surprisingly, Gree Electric Appliance Co., Ltd. is not only stingy for investors. Don’t send cash dividends, and don’t send bonus stocks at the same time. At the same time, Gree Electric’s red-preparation plan has made investors stunned. After all, for many years, Gree Electric appeared in the image of high dividends to investors. For every 10 shares, 10 shares are distributed for 30 yuan, in 2015, every 15 shares are distributed at 15 yuan. In 2016, every 10 shares are distributed at 18 yuan. The dividends in the recent five years are close to 40 billion yuan. It is such a large dividend-paying company that invests in 2017. This is a market that cannot be expected.
In addition, the current management also actively promotes the cash dividends of listed companies and strengthens the supervision of 'iron roosters'. As of February 5 this year, the Shanghai Stock Exchange hosted a 'special briefing session on cash dividends for listed companies' to encourage the cash dividends of listed companies. The five companies that have the ability to pay dividends but have not paid dividends in recent years explain the reasons for the lack of dividends. At the same time, the SSE has had many dividend-prone companies and 8 companies that have questioned more than three markets including Langsha.com. The company that issued the condition but did not receive dividends or dividends issued a regulatory letter of work that requires the company to attach great importance to cash dividends and to effectively return investors through real money. It is in the face of pressure from the exchange’s 'strong supervision', such as Langsha shares. The 'iron rooster', which had not paid cash dividends for 19 years, was also redeemed for investors for the first time this year. However, when the 'iron roosters' started to plucking, Gree Electric Co., the chicken of the chicken, suddenly stopped laying eggs. Does this not mean 'reduce' with management? More importantly, Gree is not short of money. The 2017 annual report shows that as of 2017 Its currency cash amounted to RMB 99.61 billion, accounting for 46.34% of the total assets. Bank deposits without restrictions on usage also reached RMB 59.17 billion. Not only that, but Gree also launched a profit-sharing plan for investors. At the same time, the company also issued the “Announcement on the use of its own idle funds for investment and wealth management”, and the announcement stated that in order to increase the utilization efficiency of idle funds of its own stock, the company plans to use its own funds to launch low-risk investment and wealth management business. From May 1, 2018 to May 1, 2019, the balance of investment and wealth management business was RMB 19 billion. On the one hand, Gree Electric is not short of money and plans to invest large amounts of funds in low-risk wealth management products. On the other hand, it is also a matter of investors, and it is no wonder that after the disclosure of Gree's annual report, Dong Mingzhu immediately became a target for investors to shell out.
Someone took Dong Mingzhu's remarks on the “Special Shareholders' Meeting in Gree” on October 28, 2016 for five years without paying dividends. He said that Dong Mingzhu is too red to be too precarious; others also took Dong Mingzhu’s global hard technology in 2017. The statement made at the conference was that 'a good listed company must stick to paying dividends for shareholders, pay more taxes for the country, create better benefits for its employees'. It is said that Dong Mingzhu said one set to do. Some people also said that Dong Mingzhu There is money for employees to build houses, dividends for investors, and no money. Others speculate that Dong Mingzhu’s intention is not to give Baoan a dividend, so she’s tired. In fact, these arguments and speculations are not reliable. Because, overall, Gree’s Electric appliances are still a company that values the return of investors. They cannot veto what it had done in the past as a reward for investors because it did not pay dividends for a certain year. As for Dong Mingzhu’s remarks that are too hasty, it is only a momentary emotional relief. However, even though Dong Mingzhu’s remarks on '5 years without dividends' are fresh in their memory, in fact, in the year when they said this, Gree introduced a dividend plan of RMB 18 for every 10 shares. As for Gree’s, Electric money management There is no money to pay dividends. This is actually two different things. Because financial management is a low-risk product, the principal is basically safe and belongs to the company. However, if the dividend is paid, it will no longer have this capital. If the company needs With money, there is no such source of funds. In fact, in terms of dividends, Gree Electric Appliances does not make any dividends. It is not the Baoneng Department, but the company’s largest shareholder Gree Group; and it is our general investor. The impact of non-profit dividends is actually limited. On the contrary, for Dong Mingzhu, the tenth largest shareholder holding 44.488 million shares, her interests are affected far more than our small and medium investors.
Gree Group and Dong Mingzhu don’t make cash dividends for their own benefit. This kind of emphasis on the overall situation is actually worthy of recognition. According to Gree’s explanation, the reason for the company’s non-profit distribution in 2017 is that according to 2018 As for the business plan and long-term industrial planning, the company expects capital expenditures in terms of capacity expansion and diversification to expand in the future. In order to seek the long-term development of the company and the long-term interests of shareholders, the company needs to make appropriate fund reserves. The company’s retained funds will be used. In the production base construction, smart factory upgrades, and technology development and market promotion for smart industries, smart home appliances, integrated circuits and other new industries. It can be seen that Gree Electric Appliances’ 2017 non-profit dividend is based on the reserve funds for the company's next step development. Therefore, For investors, it is necessary to have more understanding and tolerance.