Gree Announces the Extension of Board of Directors Extension | June 25 Shareholders Meeting Does Not Include Changes

On the evening of June 4, 'Company Deep Reading' was informed that Zhuhai Gree Electric Appliance Co., Ltd. announced that the current board of directors and the election of the supervisory board were officially postponed.

According to the announcement, the tenth session of the Gree Electric Appliances Board of Directors and the Supervisory Committee expired on May 31, 2018. Given the new company's Board of Directors, the board of supervisors and supervisors' nominations are still in progress, 'to facilitate the related work arrangements. To maintain the continuity and stability of the work of the board of directors and the board of supervisors, the election of the board of directors and the board of supervisors will be appropriately extended.

At the same time, Gree Electric announced that this year's general meeting of shareholders will be held on June 25th. The discussion agenda includes the 2017 Board of Directors' Work Report, the Board of Supervisors' Work Report, the 2017 Financial Statements, and the revised Articles of Association.

Previously, 'Company Deep Reading' had reported that according to the regulations of Gree Electric Appliances, prior to the election of board members, the board of directors should announce to the shareholders the candidate directors, the supervisor's resume and the basic situation. Based on this, it can be judged that Dong Mingzhu and his board members will at least 'Out of service' until June 25.

Gree Electric stated that, in accordance with the relevant provisions of the Articles of Association, before the completion of the term of office, the company’s tenth board of directors, all members of the board of supervisors and the company’s senior management personnel will perform their duties in accordance with laws, administrative regulations, and the “Articles of Association”, and postpones them. The change of term will not affect the normal operation of the company. In addition, the term of office of the special committees and senior management personnel of the company's board of directors will be correspondingly delayed.

Gree Electric stated that it will promote the board of directors as soon as possible, change the work of the board of supervisors, and perform corresponding information disclosure obligations.

Dong Mingzhu has served as Chairman of Gree Electric Appliances since 2012. In 6 years, Gree Electric Appliances revenue increased from RMB 1101 million on December 31, 2012 to RMB 150.00 million at the end of last year, and net profit increased from RMB 7.38 billion to 224.02 during the same period. Billion yuan, the average annual compound growth rate was 8.31% and 40.71%, respectively.

However, during Dong Mingzhu's tenure, around the acquisition of Zhuhai Yinlong New Energy, Dong Mingzhu encountered opposition from small and medium shareholders. Zhuhai Yinlong was exposed this year with unfavorable news such as production stagnation and debt default. Gree announced no dividends this year. Caused some of the investors' controversy.

In addition, from 2016, Gree Electric Holdings Co., Ltd., the owner of Gree Group with a Zhuhai state-owned asset background, will no longer be served by Dong Mingzhu. Zhou Lewei will be appointed as chairman and legal person of the latter by Zhuhai SASAC, Gree Electric and Gree Group. Enter the 'binary pattern'.

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