Gree, which specializes in home appliances, has been favored by investors because it has a better operating performance in the industry and a higher dividend ratio. However, recently, Gree’s stock price has almost stopped falling in the intraday trading session and eventually fell by 8.97%. The market value is within one day. Evaporation surpassed 27 billion yuan, even exceeding the profit of last year. The reason for this phenomenon is that Gree announced to the outside world that it would suspend the ten-year dividend “habit”, and it will not continue to distribute dividends in 2017, and its reserve funds Will invest in integrated circuits and other industrial areas.
Why Gree does not pay dividends?
Gree Electric Co., Ltd. released the first quarterly report and the announcement of the reply statement on “Focus on Zhuhai Gree Electric Appliance Co., Ltd.”. The report shows that Gree Electric Appliances achieved operating income of 39.56 billion yuan in the first quarter of this year, an increase of 33.29% year-on-year, net profit. This was 5.58 billion yuan, a year-on-year increase of 39.04%. Although revenue and net profit both rose, Gree stated that it did not make cash dividends in 2017, mainly because it will focus on the layout of smart equipment, smart appliances, integrated circuits and other industries. Gree declared As the above projects are in the planning stage and the project planning involves a wide range, it is expected that the amount of funds will be large, and it is difficult to accurately measure the capital demand and capital flow. Therefore, it is difficult for Gree to formulate an appropriate amount for 2017 cash dividends.
According to report, Gree Electric Appliances has implemented cash dividends for many years since its listing. From 2015 to 2017, the cumulative distribution of profits was approximately 19.8 billion yuan, accounting for 109.30% of the three-year annual distributable profits. This time it was an abnormal behavior, or It will be the first step for Gree Electric to enter the field of intelligence and integrated circuits. Dong Mingzhu, chairman and president of Zhuhai Gree Electric Co., Ltd., said that in the next five years, Gree will exert its efforts in smart equipment, and smart equipment must adhere to independent innovation. Become Gree's second main business in the future.
On the second day after Gree released the first quarterly report, the market value evaporated by approximately 27.2 billion yuan. The Shenzhen Stock Exchange sent a letter of concern to Gree Electric and asked it to submit the capital demand. Gree Electric Appliances stated to the Shenzhen Stock Exchange that it was based on 2018 Business plan and long-term industrial planning. It is expected that in the future, capital expenditures on capacity expansion and diversification will be relatively large. In order to seek the long-term development of the company and the long-term interests of shareholders, Gree needs to make appropriate capital reserves, and the retained funds will be used for production. Base construction, smart factory upgrade, and smart equipment, smart appliances, integrated circuits and other new industries of technology research and development and marketing.
New players enter the game
In addition to Gree’s efforts to tap into integrated circuits, there have been more and more “players” outside the industry planning to enter the integrated circuit industry. Recently, Evergrande Group announced that it has joined hands with the Chinese Academy of Sciences in the development of integrated circuits. The Chinese Academy of Sciences and Evergrande signed The cooperation agreement will invest 100 billion in the next ten years to jointly build three major scientific research bases. The cooperation will focus on such key areas as life sciences, aerospace, integrated circuits, quantum science and technology, new energy, artificial intelligence, robotics, and modern science and technology agriculture. Xu Jiayin, Chairman of the Board of Directors of the Group, publicly stated that Evergrande will actively explore high-tech industries and gradually form an industrial structure based on the people's livelihood property, cultural tourism, health and health as the two wings, and high-tech as the leading industry.
The leading integrated companies entering the IC market will not be separated from the current characteristics and environment of China's integrated circuits. China's IC industry has the characteristics of high degree of internationalization, large investment in capital, and so on. Therefore, in recent years, China has used market-based mechanisms to implement the state. Strategy, bringing together all aspects to increase investment, rapid increase in industrial strength, continuous optimization of the industrial environment.
The broad future market has attracted many companies to increase their investment. According to IC insights, by 2021, China's final consumption of integrated circuits will account for a further 44% of the global market share. The market demand is huge. Looking at the demand for complete machines, In 2016, China produced 1.5 billion smart phones and 290 million micro-computers, which accounted for more than 70% and 66% of the world respectively. This led to an increase in the import volume of integrated circuits from 95 billion U.S. dollars in 2006 to 227 billion U.S. dollars in 2016. It accounts for 76% of the global market. From the perspective of final consumer demand of domestic users, our users have purchased 29% of smartphones, 20% of personal computers, 17% of tablets, and 27% of cars (embedded automotive electronics) worldwide. The final consumption of integrated circuits led to 112 billion US dollars, accounting for 38% of the world.
The huge market demand has become an impetus for all walks of life to invest in ICs. An American executive who is unwilling to disclose information tells reporters that the US company has always been a leader in the medical and biochemical fields, but the Chinese integrated circuit market has already received In order to expand the Chinese market, the world’s attention has established the company’s first independent department to deal with semiconductors and integrated circuits in China. According to the reporter’s knowledge, the company’s business unit for the IC sector has grown from the initial 20 people. To 70 people.
The executive said that the IC market is so valued because China’s semiconductor market is now a period of rapid development. Many industries have stepped into this market, and China’s integrated circuit market will eventually grow bigger and bigger.