[Annual Report] Gree Electric's annual report, which was not released until about 3 a.m. on April 30, still has many highlights.
According to the 2023 annual report, Gree Electric Appliances (000651) has completed a total revenue of 205 billion yuan, once again standing above 200 billion yuan, with a revenue growth of 7.8%, which is a big improvement from the 0.3% growth rate in 2022.
Gree Electric Appliances has a diversified business, but mainly air conditioners, with a revenue of 151.2 billion yuan last year, an increase of more than 12 percent, an increase of nearly 32 percent in industrial products, and a 55 percent increase in the revenue of intelligent equipment, but only 670 million yuan in scale.
Green energy also increased by 51 percent to 7.1 billion yuan, small household appliances decreased by 12 percent to only 4 billion yuan, and other businesses saw the highest decline of more than 20 percent to 29.4 billion yuan. "Other" increased by about 56% to 1.57 billion yuan.
The revenue of air conditioning increased by 16.4 billion yuan last year, accounting for 111% of the total revenue increase of 14.8 billion yuan of Gree Electric Appliances, that is, all the increase can be regarded as coming from air conditioning.
The gross profit margin of air conditioning is also the highest, exceeding 37% last year, an increase of 4.6 percentage points, but lower than the level of 2014 and 2016, the third highest in history, and has continued to exceed 30% since 2013.
The gross profit of the air conditioning business was 56 billion yuan, accounting for about 88% of the total gross profit of Gree Electric Appliances of 63.4 billion yuan, 15 percentage points more than the proportion of revenue, and it is still the cow of the company's profits.
The gross profit margin of the small household appliances business is also good, reaching 35.5%, that is, the scale is limited, and the gross profit margin of other businesses with a revenue scale of 29.4 billion yuan is only 4.4%, which should be difficult to make a profit. The consolidated gross profit margin was 30.57%, an increase of 4.53 percentage points.
Because there are too many cash reserves, Gree Electric's annual interest income is 6.2 billion yuan, an increase of 1.55 billion yuan from the interest income of 4.65 billion yuan in 2022, but the asset impairment loss expands to 2.5 billion yuan, an increase of 1.5 billion yuan over 2022, which is basically offset by the changes in the two.
In 2023, Gree Electric will achieve a net profit attributable to the parent company of 29 billion yuan, an increase of 18.4%, which is also a double-digit growth rate after 2018, and the basic earnings per share will be 5.22 yuan.
The other two home appliance giants, Midea Group, had a net profit of 33.7 billion yuan and a basic earnings per share of 4.34 yuan. Haier Smart Home achieved a net profit attributable to the parent company of 16.6 billion yuan, and basic earnings per share of 1.79 yuan. Gree's profit scale is lower than that of Midea and Haier Smart Home, and its earnings per share are higher than that of Midea and Haier Smart Home.
According to the dividend plan, Gree Electric will pay a dividend of 2.38 yuan per share, with a total dividend of 13.1 billion yuan, and the dividend rate will be about 45.6%, which is basically the same as 45.8% in 2022. The dividend plan also needs to be approved by the general meeting of shareholders.
The annual report also discloses the executive compensation of Gree Electric. Only Chairman and President Dong Mingzhu's salary exceeds 10 million yuan, an increase of about 720,000 yuan from 2022, or about 12.14 million yuan.
Vice President Tan Jianming and Director Zhang Wei are both paid 4 million yuan, Vice Presidents Fang Xiangjian and Deng Xiaobo are both paid 3 million yuan, Vice Presidents Zhuang Pei and Shu Lizhi are paid 2.4 million yuan and 2.2 million yuan, financial director Liao Jianxiong is 1.8 million yuan, employee supervisor Wang Fawen is paid 740,000 yuan, and independent director Liu Shuwei is paid 200,000 yuan.
There are also a number of executives who have benefited from equity incentives, such as Dong Mingzhu, who added 10 million shares last year, holding a total of 54.49 million shares, and is also one of the top ten shareholders of the company. According to the dividend of 2.38 yuan per share, Dong Mingzhu can get about 130 million yuan in cash through dividends.
As of the end of 2023, the total number of employees of Gree Electric Appliances is 72,600, a slight increase of 230 compared with the end of 2022, with an average profit of 382,000 yuan per capita and an average salary of 164,000 yuan last year, an increase of 10,000 yuan over 2022.
As of April 30, the total market value of Gree Electric Appliances was 237.2 billion yuan, corresponding to a net profit of 29 billion yuan, a price-earnings ratio of 8.2 times, a dividend of 2.38 yuan, a corresponding stock price of 42 yuan, and a dividend yield of about 5.67%.
Note: The remuneration mentioned in this article includes wages and bonuses, employee benefits, five insurances and one housing fund, enterprise annuity, supplementary retirement benefits, etc., and is pre-tax.