Recently, the white giant's 'Big Three' released its financial report for the first quarter of 2018. From the perspective of financial reports, the 'Big Three' has made a good start for this year. However, it is not surprising that Gree, with good performance, has fallen into a Among the 'swirls'.
Haier and the United States Gree gap widened
The United States announced the first quarterly report of 2018, which showed that in the first quarter, Midea realized revenue of 69.738 billion yuan, an increase of 16.70% from the previous year, and a net profit of 5.256 billion yuan, a year-on-year increase of 20.76%.
According to Haier’s quarterly report for 2018, its operating income was 42.7 billion yuan, a year-on-year increase of 13.01%; net profit attributable to shareholders of listed companies was 1.98 billion yuan, a year-on-year increase of 14.02%. Basic earnings per share was 0.325 yuan.
Gree Electric again reported in the first quarter of this year. In the first quarter, it achieved revenue of 39.56 billion yuan, an increase of 33.29% year-on-year; net profit was 5.58 billion yuan, an increase of 39.04% year-on-year.
Looking at the scale of revenue, Midea is far ahead of Haier and Gree. From the perspective of net profit, compared with Haier and Gree, from the perspective of net profit, the United States and Gree are far ahead of Haier. From the perspective of profit growth, Gree leads. Yu Mei's, Haier, from the point of view of profit margin, Gree (14.1%) to a large extent ahead of the United States (7.5%), Haier (4.6%).
High-end market increases investment and seeks new growth
In the first quarter of the strategic layout, Midea has made frequent efforts in the high-end market. This year, it launched a high-end innovative products such as iron-free dryers, net drinkers, and leafless fans. At the same time, Midea and European white giants. Electrolux established a joint venture in China to jointly promote the development of high-end home appliance brand AEG in China.
In the robotics business, in March this year, Midea announced that it would inject capital into the Chinese affiliate business of the German KUKA Group and set up three joint ventures to expand the business of industrial robots, medical robots and warehouse automation. In the month, Smart The manufacturing industry base has officially started construction in Shunde, Guangdong. The base will become an important part of Midea’s “Double Wisdom Strategy” landing, which is expected to boost China’s annual robot production capacity to exceed 100,000 units.
For the first quarter of the 'route', Haier said that its white-metal business grew by more than 20%, and that of high-end brand Casati increased by 50%. In overseas markets, Haier brand GEA achieved a 5.9% increase in US dollar revenue in the first quarter of 2018 , far exceeding the North American market growth of 2.6% of the industry (industry data source: Stevenson); GEA overall market share increased by 1.5 percentage points year-on-year. At the same time, South Asian market revenue increased by more than 40%, European market revenue increased by more than 30%.
In the first quarter, Gree won a bid for a series of benchmarking projects, and it also made gains in overseas markets. In January of this year, Gree signed the US World Trade Center Phoenix and won the world’s largest PV air-conditioning project to date. In the quarter, Gree also released the GMV6 artificial intelligence multi-line, which uses artificial intelligence technology in the central air conditioning area.
Gree raises controversy indiscriminately
Prior to the release of the first quarter earnings report in 2018, Gree Electronics released a complete annual report for 2017. The revenue for 2017 was 148.286 billion yuan, up 36.92% year-on-year; the net profit was 24.402 billion yuan, up 44.87% year-on-year. In this annual report, Gree Electric Appliances For the first time in 11 years, no dividend plans have been listed.
Unexpectedly, it was this move that triggered an 'earthquake'. Gree subsequently received a letter of concern from the Shenzhen Stock Exchange. The Shenzhen Stock Exchange asked Gree to explain the specific reasons and rationality of the 2017 cash dividend not being paid.
Gree Electric responded to Shenzhen Stock Exchange's concern that the company is planning and implementing key investment projects including: new air-conditioning base projects, smart factory upgrade projects, smart equipment, smart appliances, integrated circuit design and investment projects, participating in the mixed reform of Luoyang LYC Bearing Co., Ltd. Investment projects, etc. The aforementioned investment projects are still in the planning stage. The company will make clear as soon as possible the capital needs and cash flow calculations, fully consider the investors’ demands, and conduct the mid-2000 dividends. The dividend amount will be determined according to the company's funds at that time.
According to the annual report, Gree Electric's annual business operation guidelines for this year have been changed from 'Challenge Yourself to the Future' in the previous year and quietly changed to 'Fight endlessly and change your control in the future'. It is worth noting that in 2017, In the annual report, Gree proposed to carry out integrated circuit projects for the first time. However, how to deploy and how much to invest in it has yet to be solved.
At present, Gree is also at a somewhat sensitive and embarrassing time. Dong Mingzhu’s term of office will expire on May 31 this year. The fate of Dong Mingzhu’s re-election to a large extent rests on the institutions participating in the general meeting of shareholders. In the hands of investors.
However, with the appearance of the 'no dividend' event, the 'game' between the unprofitable investors and Dong Mingzhu seems to have become a delicate matter again. This 'accident' has also made Gree stocks appear. The rate of decline has been very large, and the rate of decline has been rare for many years. All this has added uncertainties to the future development of Gree.