Economic Observation Network reporter Li Huaqing On the evening of April 29, Gree Electric Appliances (000651. SZ) and Midea Group (000333.SZ) both released their 2021 annual reports.
The two white electricity giants cultivated in the Pearl River Delta region have been competitors for many years, and they have both stepped on the small tail of the annual report disclosure season for many years, handing over their annual operating report cards to the public on the same day.
So, in comparison, what is their 2021 annual report card?
Cash dividends with PK in the air conditioning market
From the perspective of financial data, the performance of Gree Electric Appliances in 2021 has recovered.
In 2020, the net profit attributable to the mother of Gree Electric Appliances was 22.175 billion yuan, lower than the 24.7 billion yuan before the epidemic in 2019, while in 2021, Gree Electric Appliances achieved a net profit attributable to the mother of 23.063 billion yuan, an increase of 4.01% year-on-year, and the revenue reached 187.868 billion yuan, an increase of 11.69% year-on-year.
According to the "2021 China Home Appliance Market Report" released by the Electronic Information Industry Development Research Institute, in 2021, China's home appliance market will fully recover, and the retail scale will reach 881.1 billion yuan, an increase of 5.7% year-on-year, and the overall basic recovery to the pre-epidemic level.
Midea Group has maintained the double surpassing of Gree Electric Appliances in terms of revenue and net profit level after the epidemic. In 2021, Midea Group's revenue reached 341.233 billion yuan, an increase of 20.06% year-on-year, and the net profit attributable to the mother was 28.573 billion yuan, an increase of 4.96% year-on-year.
In the capital market, although the market value of Midea Group has surpassed Gree Electric Appliances for many years, the "generous" degree of Dividends of Midea Group has not been able to catch up with Gree Electric Appliances, which has also become a point where Midea Group has been complained about by small and medium-sized shareholders.
According to the official WeChat public account of Midea Group, counting the cash distribution in 2021, the overall cash distribution of Midea Group since its listing is 69.5 billion yuan.
When introducing the 2021 annual report, the official public account of Gree Electric Appliances introduced that the cumulative dividend amount of Gree Electric Appliances since its listing has reached 100.929 billion yuan.
In 2021, the annual profit distribution plan of Gree Electric Appliances is still "arrogant", and the annual report of Gree Electric Appliances introduces that the dividend plan approved by the board of directors is to distribute a cash dividend of 20 yuan (including tax) to all shareholders for every 10 shares, and the annual cash dividend amount in 2021 will reach 11.073 billion yuan.
In terms of cash dividends, midea group also "supported", midea group annual report introduced, 2021 board of directors deliberated and approved profit plan is every 10 shares to pay a cash dividend of 17 yuan (including tax). Although the amount of cash paid per 10 shares is not high enough for Gree Electric Appliances, the cash dividend amount of Midea Group in 2021 reached 11.677 billion yuan.
Before the epidemic, Gree Electric Appliances was the air conditioning boss with outstanding status, but after the epidemic, midea group attacked fiercely in the air conditioning market. The controversy over the seat of the air conditioning market has once again become one of the points of contention between the two companies in the 2021 annual report.
According to the annual report of Midea Group, according to the data of Aowei Cloud Network, in 2021, Midea Group's home air conditioner ranked first in the domestic online and offline market share, of which the offline market share was 36% (by retail sales) and the online market share was 34.6% (by retail sales).
According to the annual report of Gree Electric Appliances, according to the domestic sales data of household air conditioners in 2021 of "Industry Online", Gree air conditioners ranked first in the industry with a share of 37.4%, achieving 27 years of leadership.
In the field of home air conditioning, when selecting the boss, whether the data of Aowei Cloud Network should be used, or the data of "Industry Online", whether it should be measured from the perspective of retail sales or from the perspective of sales.
According to the annual report of Gree Electric Appliances, according to the data released by "HVAC Information", in 2021, Gree central air conditioning is the only brand with a sales scale of more than 20 billion yuan in China's central air conditioning industry, achieving a "ten consecutive championship" in the central air conditioning market.
However, when introducing the 2021 annual results of the Midea Group's official WeChat public account, it said that according to the 2021 data of "Industry Online" and "Mechanical and Electrical Information • Central Air Conditioning Market", midea's central air conditioning domestic market share continued to remain the first.
In the field of central air conditioning, when selecting the boss, it is also a matter of opinion as to which institution's data should be used.
In the field of air conditioning, Gree Electric Appliances is not easy to argue about the sales of household air conditioning compressors. Midea and Gree have compressor manufacturing enterprises, according to the "Industry Online" 2021 data, Midea's home air conditioning compressor sales exceeded 100 million units, an increase of 20% year-on-year, accounting for 42% in the global market, and continue to rank first in the world.
Midea group people told the Economic Observer Network reporter in December 2021 that among the world's well-known air-conditioning brands, in addition to Gree Electrical Appliances, other brands are basically customers of Midea's Meizhi air-conditioning compressors.
Exploring diversity is a common action
Diversification is a strategy that Gree Electric Appliances and Midea Group has been practicing for many years.
At the end of 2020, Midea Group announced that it will adjust its business segments into five major segments - smart home business group, industrial technology business group, building technology business unit, robot and automation business unit, and digital innovation business. According to Midea Group, in 2021, the revenue growth rate of the non-smart home business segment is much higher than that of the smart home segment.
According to midea's official WeChat public account, in 2021, the revenue of smart home was 234.9 billion yuan, an increase of 12.6% year-on-year, and the revenue of industrial technology was 20.1 billion yuan, an increase of 43.5%; the revenue of building technology was 19.7 billion yuan, an increase of 54.8% year-on-year; the revenue of digital innovation business was 8.3 billion yuan, an increase of 51.4%; and the revenue of robots and automation was 25.3 billion yuan, an increase of 22.8% year-on-year.
Compared with the Midea Group, Gree Electric Appliances has been criticized for the failure of diversification, and by 2021, the revenue of Gree Electric Appliances from air-conditioning products still accounts for 70%, but in 2021, in terms of diversification, Gree Electric Appliances has made more efforts.
In addition to the air conditioning plate, the living electrical appliance plate that has been well known to the public, as well as the intelligent equipment plate, precision mold plate, photovoltaic/light storage air conditioning plate that have been explored for many years, in 2021, Gree Electric Appliances has more remarkable places in the fields of new energy vehicles and lithium batteries, renewable resources, semiconductors, and digital transformation.
In 2021, Gree Electric Appliances acquired 30.47% of the equity of Gree Titanium New Energy Co., Ltd. through cash acquisition and obtained control of Gree Titanium.
Since 2010, Gree Electric Appliances has successively established six renewable resource bases, mainly engaged in the recycling of waste electrical and electronic products, scrap cars, etc., as well as the recycling of waste circuit boards and waste plastics, and in 2021, the renewable resource base of Gree Electric Appliances will process 6.5 million sets of waste home appliances.
In 2021, the operating income of Zero Boundary Integrated Circuit Co., Ltd., a wholly-owned subsidiary of Gree Electric Appliances, achieved an increase of more than 50%, and the product shipment exceeded 70 million.
In 2020, Chengdu Gree Xinhui Medical Equipment Co., Ltd., a holding subsidiary of Gree Electric Appliances, was established, and the mobile P2+ nucleic acid detection vehicle launched has served the epidemic prevention and control work in Shanghai, Hong Kong, Guangdong, Anhui, Hunan, Henan, Hebei, Shandong, Shanxi, Sichuan and other places, and in 2021, Chengdu Gree Xinhui Medical was awarded the title of "Advanced Collective in Fighting the New Crown Pneumonia Epidemic".
In the annual report, Gree Electric Also introduced that in 2021, with the goal of "1 platform, 1 set of standard architecture, and 18 field systems", the group's IT construction resources will be coordinated, and the company's new generation of industrial interconnection platform and business control application software will be developed to serve the company's digital transformation, while the company's software development results will be precipitated into the company's industrial interconnection platform.
In 2021, Gree Electric Appliances built a smart factory and exported smart factory solutions in Gaolan Port. Gree Electric Appliance said that in 2021, the company's "intelligent factory platform research and industrialization based on the Internet of Things" project was selected as the Ministry of Industry and Information Technology's Internet of Things integrated innovation and integration application project, "industrial Internet platform for the collaborative scenario of the industrial chain of the home appliance industry" was selected as the Guangdong Provincial Department of Industry and Information Technology Industrial Internet benchmarking demonstration project, in 2021, the company and electronics, food, mechanical and electrical and other industry enterprises reached a project cooperation, to provide customers with intelligent factory system solutions based on intelligent logistics and informatization.
The revenue that Gree Electric Appliances can bring in digital transformation is still small, but it is very similar to the route taken by Midea Group's digital innovation business.
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