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The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

author:小郭研财社

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In the second year after Chunlan shares were listed, the annual production of air conditioners reached 470,000, which is very high, but after almost 30 years, the sales volume of air conditioners fell to 22,000. This sales can be said to have plummeted.

All of a sudden, it changed from the top of the sales to the bottom, but the profit increased. What happened in the middle? I'm sure many of you have a question mark in your heart, so let's follow me and take a look.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

1. Unveil the veil of Chunlan shares

According to the annual report released by Chunlan last year, the production of air conditioners last year was 31,000 units, and there were 34,000 units in inventory. However, sales did not decrease, but increased. This is indeed a bit strange, because normally sales should be closely related to the amount of production.

The more you sell, the more you should earn, but Chunlan shares seem to be the opposite. Sell less, earn more. Everyone should know less about Chunlan, because when it comes to air conditioning, everyone should think of more Gree air conditioning.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Midea air conditioner or Haier air conditioner, you won't immediately think of Chunlan air conditioner. In fact, in the 90s, Chunlan was the industry giant in the entire Chinese air conditioning market, and the founder of Chunlan was known as the "father of air conditioning".

He entered the international market with Chunlan air conditioner, and ranked 7th in the world rankings. Moreover, Chunlan shares not only sell air conditioners, its business also includes the development of real estate and the rental of houses.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Second, the reason for the profit growth of Chunlan shares

In the past 10 years, Chunlan air conditioners have gone from selling 320,000 air conditioners a year to only 22,000 air conditioners a year. Let's take a look at the real estate in another business area of Chunlan, which has also declined accordingly. Air conditioner sales are declining, revenues are affected, what about real estate?

Due to the change of the times, the demand for buying houses has declined, so the real estate business has also declined a lot. Seeing this, I believe that everyone is already very anxious, so what makes the net profit of Chunlan shares in a growth trend?

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Chunlan shares actually gave a clear explanation in last year's annual report, because the company has made corresponding investments in other companies, such as Taizhou Power Plant and Longyuan Taizhou Company, whose profitability is relatively high.

So the company's earnings are not declining, they are still growing. The data clearly shows that the increase in revenue is more than 56 million more than in two years. It can be said that Chunlan shares rely on Taizhou Power Plant and Longyuan Taizhou Company to earn a lot.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Third, the development trend of Chunlan shares

Seeing this, I believe that some friends have thought in their hearts, since dividends are so popular, can they also consider taking the route of dividends? In fact, dividends cannot be used as the main business of a listed company.

Because in the long run, there is a certain risk for the company. Let's take a look back at the historical stage of the development of Chunlan shares. In 98 years, Gree Electric Appliances became the No. 1 in sales, and slowly Midea, Haier and other brands also developed rapidly.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Chunlan's share market began to shrink. Later, because of the purchase of the corresponding equity of Taizhou Power Plant and other companies, Chunlan shares were listed again and entered real estate. Prior to this, Chunlan shares also tried many fields, but did not succeed in transformation.

Moreover, with the transformation, the real estate business sector of Chunlan shares has also fallen into a state of slump. However, from the perspective of capital, although Chunlan shares do not make much profit, the capital chain is still sufficient. Moreover, Chunlan shares have dividends every year.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Judging from the recent period, the number of dividends is constantly increasing. Although Chunlan shares have not made a major breakthrough in development, the funds are sufficient. This also shows that Chunlan shares actually have a great opportunity to turn over.

After all, economic support is actually very important for individuals, enterprises or countries, and the basic part is only if the economic sector is solid enough, then it is more likely to want to develop and plan for a long time.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

Moreover, although Chunlan shares and business sectors are not operating particularly well, it is very promising to make relevant adjustments in combination with the needs of the development of the times, transform again, and make breakthroughs.

Grasping the opportunity of the times, seizing the dividends of the times, jumping up, adjusting strategic planning and strategic objectives, and carrying out another transformation is a question worth thinking about for the company's management.

The former "king of air conditioners" sold 22,000 units a year, and most of their performance relied on dividends to "support the façade"

epilogue

How will Chelai shares develop in the future? What is the trend? You can pay attention to the follow-up. From the investor's point of view, Chunlan shares are still very conscientious, and we can look forward to the direction of Chunlan shares in the future.

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