Miss Dong sprinkled an extra 200 million
▲ (Source/Gree Electric Official Weibo)
Dong Mingzhu rushed to the hot search again.
On January 29, the topic of "Dong Mingzhu announced that he would issue an additional 200 million year-end bonus" was sent to the hot search by envious netizens, "It's someone else's company again" and "Miss Dong is a good boss in China". For the large-scale year-end bonus, Dong Mingzhu's original intention is to let employees work with dignity, and altruistic thinking will help the development of the enterprise.
The year-end award promise, Dong Mingzhu was said at the Gree 2024 Global Dream Ceremony on January 28, wearing a silver dress on the same day, she released a series of good things in her speech, in 2023, Gree's revenue will exceed 200 billion, profits will exceed 27 billion, taxes will be 17.6 billion, and dividends will average more than 14 billion per year in the past five years......
On January 29, Gree Electric Appliances led the home appliance sector, with a share of 35.06 yuan, up 4.16%, and the total market value increased by 7.88 billion yuan to 197.437 billion yuan in one day. Although Dong Mingzhu claimed that he did not care about the stock price and emphasized that Gree Electric Appliances did not rely on the stock price to survive, the 570,000 Gree shareholders were still happy and shared their joy on the stock trading platform.
01. Spend money generously
I have to say that Miss Dong knows how to hit workers very well and understands traffic.
At the end of the year and the beginning of the year, the dark clouds of layoffs hanging over many people have not yet dissipated, and the sentence of Dong Mingzhu, the helmsman of Gree, "give Gree people an additional 200 million year-end bonuses", focuses on a contrast and contrast, and once again sent himself to the hot search.
"It's better than nothing", "I will go to Gree as a worker next year", "No matter how much money is evenly distributed to each employee, Boss Dong is still very powerful"...... Under the hot search topic on Weibo "Dong Mingzhu announced that he will issue an additional 200 million year-end bonus", countless workers are envious. As of press time, the topic has been read nearly 70 million times and discussed by thousands.
Dong Mingzhu's "good news of the year-end award" comes from the 2024 Global Dream Ceremony held by Gree Electric Appliances in Zhuhai on January 28. On the same day, nearly 20,000 people, including Gree employees, suppliers and distributors, gathered at Zhuhai Gree Vocational College, and the party was held from 7:30 p.m. to the early morning of the next day. Judging from the photos posted by Gree's official and on-site employees, the more than 4-hour party was "stuffed" with speeches, singing and dancing performances, and oaths by all employees.
"In 2023, Greina's tax is the highest in the past 33 years, and the business has achieved the best results. Dong Mingzhu spoke firmly when he took the stage, and tried to redefine the standard of "good enterprise": "A good enterprise is not supported by stock price, but by innovation and strength", "In addition to looking at revenue, we should also look at how much profit is created, which can better illustrate the importance of innovation."
▲ (Source/Gree video playback screenshot)
Immediately afterwards, Dong Mingzhu said the most inspiring sentence - Gree will take out an extra 200 million yuan to give employees a year-end bonus.
How can the extra 200 million be divided? Is it cash or equivalent? "City Boundary" contacted Gree staff on related issues, but did not reply as of press time. However, on social media, some netizens who claimed to be Gree (former) employees said that in previous years, Gree's year-end bonus consisted of "bonus + points internal purchase". "The main thing is to send virtual welfare coupons to employee accounts for the purchase of Gree electrical products. ”
According to the financial report data, by the end of 2022, the number of Gree employees was about 72,000. If there is no change in the total number of Gree employees in 2023, according to "egalitarianism", the 200 million yuan will be divided equally according to the capitation, and each Gree person can get about 2,778 yuan. But this is clearly too idealistic. A senior HR told "City Boundary" that the 200 million yuan mentioned by Dong Mingzhu is for the entire Gree from top to bottom, and the specific distribution depends on the salary structure within the company.
"Under normal circumstances, different projects (or subsidiaries) will get different proportions of bonus packages according to the completion of target tasks or performance. Secondly, we should also take into account the dividends of the leadership, depending on what proportion the leader occupies in the salary structure, and finally it is specific to the individual grassroots employees. The HR said to the "City Boundary".
Miss Dong's "200 million" gift package, it is not yet known which lucky ones will fall on. But the operation of giving benefits at every grand ceremony can be regarded as being rectified.
In May 2018, at the "2018 Dream Ceremony Held by Gree", Dong Mingzhu announced, "As long as it is a Gree person, I promise, and I also promise, one person and one suite". In 2023, when asked about the progress of the room division, Dong Mingzhu responded domineeringly, "The first batch of 3,700 units of Gree has been divided, but it has indeed been affected by the special environment in recent years", Dong Mingzhu also said, "Gree's previous commitment to 'one suite for each employee of the group' remains unchanged."
While giving benefits to employees, Ms. Dong is also not stingy with giving benefits to shareholders. On the evening of January 28, Dong Mingzhu said that Gree paid 200 million yuan in dividends in 2003 and 3 billion in 2012, with an average annual dividend of more than 14 billion in the past five years.
02. Return to 200 billion
Behind Gree Electric's generosity to employees and shareholders, its performance has reached a record high.
On the same day, Dong Mingzhu also revealed the performance in 2023, saying that last year was the best year for Gree Electric in the 33 years since its establishment, with an estimated operating income of 205 billion yuan to 210 billion yuan and a net profit of 27 billion yuan to 29.3 billion yuan. The last time Gree's revenue exceeded the 200 billion mark was in 2018 and 2019.
▲ (Source/Gree video playback screenshot)
According to the calculation of the median net profit attributable to the parent company, it is expected that Gree Electric will achieve a net profit of 28.150 billion yuan in 2023, exceeding the 26.203 billion yuan in 2018 and hitting a record high, and the growth rate of net profit attributable to the parent company will reach 14.90%, the fastest growth rate since 2019.
As soon as the performance forecast came out, the capital market immediately bullish Gree Electric. The day after Dong Mingzhu's speech, on January 29, the share price of Gree Electric opened high, closing at 35.06 yuan per share, up 4.16%. "Miss Dong said that the performance will double in the next five years, this sentence is worth a limit!" said a shareholder.
However, for Gree Electric Appliances, this year has not been easy: it fell out of the world's top 500 list for the first time, disbanded the mobile phone team that has not been optimistic for many years, the revenue scale and Midea are getting bigger and bigger, and the stock price plummeted after increasing the holdings of Gree Titanium.
Of course, all this did not affect Dong Mingzhu, she responded in August last year, she was not sad at all to fall out of the world's top 500, Gree's healthy development is better than the world's top 500 companies that exploded, the world's top 500 only look at sales revenue, what is the significance? ”
Dong Mingzhu's remarks have unsurprisingly been on the hot search, and in the past year, she has frequently dominated the list like a hot search possession. From Meng Yutong to Wang Ziru, from the rose air conditioner that caused complaints to the frequent golden sentences of participating in variety shows, 70-year-old Dong Mingzhu has become one of the few entrepreneurs who are still active in the public eye, and almost every move can be easily sent to the hot search.
Back to the company level, why can Gree Electric Appliances, whose performance has been sluggish for several years, reach a new high? According to the analysis of industry insiders, this is related to the strong recovery of the air conditioning industry in 2023.
According to the data of Aowei Cloud Network, in 2023, the production of household air conditioners will be 163.282 million units, a year-on-year increase of 12.3%, and the sales will be 156.946 million units, a year-on-year increase of 10.4%. The relevant person in charge of the major appliance business department of Aowei Cloud Network said, "Rao has experienced a rollercoaster sales trend, and the domestic sales and shipments of household air conditioners in 2023 will still exceed 90 million units, a record high." ”
Previously, Guosheng Securities' research report also analyzed that 2023 may become the best year for air conditioning investment since 2018, "due to factors such as the decline in raw material prices, the profitability of the air conditioning industry chain is expected to be restored." ”
In 2023, when the air conditioning industry recovers, Gree Electric, which has 70% of its revenue from the air conditioning business, seems to be able to reap good results. In the first three quarters of 2023, Gree Electric's revenue was 155.812 billion, an increase of 5.03% year-on-year, and the net profit attributable to the parent company was 20.092 billion, breaking through the 20 billion mark for the first time in the past three years, an increase of 9.77% year-on-year.
"In 2023, the performance growth of Gree Electric Appliances is mainly due to the recovery growth and the effectiveness of the diversification strategy, and the turnover has exceeded the historical peak," Liang Zhenpeng, a senior industrial economic observer, told "City Boundary", "On the other hand, Gree originally relied mainly on offline physical stores, and in the past two years, it has been continuously promoting the flat reform of sales channels, and a series of measures such as the transformation to e-commerce are conducive to Gree's recovery of performance growth." ”
Due to the late start of online channels, Gree Electric attaches great importance to online channels, and Dong Mingzhu even went live to bring goods in person, trying to gain a firm foothold in online channels. Judging from the data of the third quarter report of 2023, the development of online channels is indeed very helpful, boosting the gross profit margin of Gree Electric Appliances to 30.13%, an increase of 2.69% year-on-year.
The recovery of the market, coupled with Gree's initial channel reform, has allowed Gree to deliver a pretty good answer sheet in 2023. However, from the perspective of the industry as a whole, Gree, as one of the three giants of home appliances, still has a big gap with Midea and Haier Smart Home.
Judging from the data of the third quarterly report, Midea's revenue was 292.380 billion yuan, and Haier Smart Home's revenue was 198.657 billion yuan, which was 136.568 billion yuan and 42.845 billion yuan higher than Gree Electric Appliances respectively. In the same period last year, the revenue gap between Midea and Haier Smart Home and Gree Electric Appliances was 123.431 billion yuan and 36.462 billion yuan respectively, which can be seen that the gap between Gree Electric Appliances and the two giants is getting bigger and bigger.
"Analects" says "Seventy and do what you want, do not exceed the rules", Dong Mingzhu, who is just turning 70 this year, can he take Gree forward for a while in the future?
Author | Zhang Jikang, Li Dan
Edit | Chen Fang
Operations | Liu Shan