70-year-old Dong Mingzhu, let's talk about retirement!

Securities Times E Company

2024-06-28 21:44The official account of "Company E" under the Securities Times

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01 Dong Mingzhu, chairman of Gree Electric Appliances, said at the 2023 annual general meeting of shareholders that the company achieved the best performance in history last year, mainly due to the continuous increase in talent team construction and technological innovation.

02Dong Mingzhu introduced Gree Electric's optical air storage technology, which is expected to reduce CO2 emissions by 100 billion tons by 2050.

03 In addition, Dong Mingzhu also talked about the application of Gree titanium in optical air storage technology and the development of Gree Electric Appliances in the industrial sector.

04 When it comes to channel reform, Dong Mingzhu said that the channel reform of Gree Electric has taken shape, but it is still changing, and there is a lot of room for development in overseas markets.

05 Dong Mingzhu rarely took the initiative to talk about the topic of retirement, saying that she may retire next year, but she hopes to leave a good stall for the people behind.

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"Many people say that Dong Mingzhu likes to be an Internet celebrity, not that I deliberately want to be an Internet celebrity, but that Gree's products are deeply rooted in the hearts of the people. If Gree's products are not good, am I an Internet celebrity? ”

"Maybe I'll retire next year, but it's not okay to leave a mess for the people who come after!"

On June 28, the coastal city of Zhuhai has entered the scorching summer season, and the A-share star company Gree Electric Appliances (000651) also ushered in the convening of the 2023 annual general meeting of shareholders. As one of the most well-known entrepreneurs in China, Dong Mingzhu, chairman of Gree Electric Appliances, has always been the focus of attention in the market.

At about 2 o'clock in the afternoon of the same day, one hour before the official convening of the shareholders' meeting, the reporter of Securities Times E Company saw in front of the headquarters of Gree Electric Appliances that many shareholders had begun to line up to accept the inspection. Due to the large number of shareholders participating in the meeting, the general meeting of shareholders of Gree Electric once again chose the Gree auditorium, which can accommodate hundreds of people.

Talking about growth: diversified products to make efforts

At 3 o'clock in the afternoon, Dong Mingzhu entered the venue in a white dress, and was immediately welcomed by shareholders with applause, and there were shareholders in the back row shouting "Sister Dong". After the host made an introduction to the agenda, Dong Mingzhu also started a personal speech.

"Last year was said by many people to be the most difficult year (economically), but Gree has achieved the best performance in history, and since its establishment 33 years ago, it has been the year with the highest profits and the highest tax payments." Dong Mingzhu said that the reason why Gree Electric Appliances has been able to achieve good results against the market is mainly due to two aspects, one is to continue to increase the construction of talent team, and the other is to continue to increase technological innovation.

Among them, Dong Mingzhu focused on introducing the optical air storage technology of Gree Electric. "Our current PV storage technology is fundamentally different from the past, improving the energy efficiency of photovoltaics several times, and now the third generation (PV storage) technology has been able to achieve a family's power self-sufficiency, not dependent on the external power grid."

"Now several of our executives, first of all, the whole house in their own homes is used up and empty." Dong Mingzhu predicts that if the technology is popularized, it can reduce CO2 emissions by 100 billion tons by 2050.

Recently, the new product "Flower Refrigerator" of Gree Electric Appliances, which has been hotly discussed on the Internet, has also been mentioned by Dong Mingzhu. "We have mastered the 'Global Fresh 2.0' technology, so that flowers can be kept fresh for 25 days in the refrigerator, so that the nutrition of the ingredients can be fully maintained. Our precision temperature control technology can accurately control the temperature within 0.1°C. ”

Dong Mingzhu also introduced the progress of Gree Electric Appliances in the industrial sector. "Our CNC machine tools and robots continue to make efforts, and in the field of core components, our motors, capacitors and other products have begun to be exported. Our low-carbon intelligent environmental control system for rail transit, applied to a subway line of Shenzhen Metro, is estimated to save about 15 million yuan in electricity bills a year. ”

"You always ask me where Gree's future growth point is, and I will tell you that it is in terms of refrigerators, washing machines and other diversified products. Through continuous technological innovation, we will launch products that meet the needs of consumers' contemporary life. Many people say that Dong Mingzhu likes to be an Internet celebrity, not that I deliberately want to be an Internet celebrity, but that Gree's products are deeply rooted in the hearts of the people. If Gree's products are not good, am I an Internet celebrity? Dong Mingzhu said.

Talking about acquisitions: Gree titanium is the foundation of optical storage

In recent years, one of the most controversial investments in Gree Electric Appliances is the acquisition of Gree Titanium (formerly Zhuhai Yinlong). Dong Mingzhu has repeatedly emphasized that Gree titanium is one of the foundations of Gree Electric's optical air storage technology.

Dong Mingzhu also took the initiative to talk about this topic. "Through Gretitanium's technology, we have solved the problem of the follow-up upgrade of optical air storage, which can bring more application scenarios. For example, we recently had an order in Zhuhai, which used Greti's energy storage technology to solve the problem of 24-hour power supply. Now we have several prototype projects, all of which have been successful. In the future, some scenarios such as data centers and high-energy factories can be well applied. ”

Deng Xiaobo, secretary of the board of directors of Gree Electric Appliances, also serves as the chairman of Gree Titanium. He also took over the topic and said that Gree Titanium's revenue currently accounts for only about 2% of Gree Electric Appliances as a whole, but in 2023, Gree Titanium's revenue will increase significantly, with a growth rate of more than 50%; At present, the gross profit margin of Greti's business is normal, but due to historical reasons, asset impairment has led to performance losses.

Deng Xiaobo emphasized that Gree Electric Appliances acquired Gree Titanium mainly because of two core strategic values, one is lithium titanate technology, and the other is Gree Titanium's equipment manufacturing assets.

"After the acquisition, our main work is to develop these two values of Gretitanium. At present, these two strategic values have met the conditions for unleashing. Deng Xiaobo said that at present, there are more and more application scenarios of lithium titanate batteries, the demand is becoming more and more stable, and the production and supply are becoming more and more stable, which can provide stable business support for the company.

In terms of new energy buses, Deng Xiaobo said that the product quality of Gree Titanium continues to improve, and there has been great progress compared with before. In 2023, the sales of Gree titanium buses will also increase by more than 50%, of which overseas exports account for a large proportion.

Some investors asked whether lithium titanate products are competitive due to the fierce competition in the current energy storage product market. Deng Xiaobo responded that although the competition is fierce, Gree Titanium has become a qualified competitor in the mainstream energy storage market, and it also got a number of head projects in China last year. At the same time, he stressed that there is no plan for large-scale additional investment in fixed assets, and revitalizing and making full use of existing assets is enough to support this year's development.

Talking about channels: There is still a lot of room for change overseas

Channel reform is also a topic of concern for investors. Dong Mingzhu said that the channel reform of Gree Electric has been carried out for several years, "The change, first of all, is that you can't get along with yourself." In the past, Gree's channel strategy was successful, but with the development of the times, we must cover more benefits to terminal dealers. Nowadays, in the era of big data, we want to make offline stores grow online. ”

Dong Mingzhu said that in general, the channel reform of Gree Electric has now taken shape, but it is still changing. "In the past year, we have moved forward in struggle and grown in struggle, and this year is still the same."

Dong Mingzhu especially pointed out that she has seen a lot of room for growth in overseas markets. "This year, I've been to the Middle East twice, once to get excited. Optical air storage products are very popular in the local area. According to reports, Gree Electric has provided nearly 10,000 sets of photovoltaic air conditioning products for consumers in the Middle East, which can reduce carbon emissions by 110,000 tons per year. Among them, the total installed capacity of the photovoltaic project located in the AL-Asasyah headquarters building in Dammam, Saudi Arabia is 112.17 kilowatts per hour, with an average annual clean power generation of about 170,000 kilowatt-hours, which is equivalent to reducing carbon dioxide emissions by about 148 tons.

Dong Mingzhu also mentioned that he stayed in a top hotel in Turkey on a business trip and found that the hotel used Gree's air conditioning products. "This feeling is very proud, in the past it was difficult for Gree's air conditioners to enter five-star hotels, but now more and more five-star hotels are using Gree's products."

For internationalization, Dong Mingzhu said that for a long time in the past, Gree Electric's products were exported through "OEM". However, in recent years, more and more attention has been paid to the overseas expansion of independent brands, and the proportion of independent brands has been increasing. "Internationalization, I believe that this year must be moving forward, in addition to air conditioning, our ice washing products will also begin to internationalize."

It's rare to talk about retirement

In the shareholder exchange session, some shareholders asked about the impact of the current rising copper prices on Gree Electric.

Dong Mingzhu responded that in the face of rising copper prices, many peer companies began to study "replacing copper with aluminum", and Gree Electric Appliances is also conducting relevant research. "But considering the quality of the product, in the absence of 100% certainty, we will not easily change the material, and would rather suffer a little loss in the short term. But our research on aluminum instead of copper has not stopped. ”

"If an enterprise wants to be sustainable, it can't rush for quick success. We are very strict with the requirements of each product component, and we have always put quality in the first standard. Maybe I'll retire next year, but it's not okay to leave a mess for the people who come after me! ”

It is worth mentioning that this is also a rare time for Dong Mingzhu to take the initiative to talk about the topic of retirement, although it is only a hypothesis. In the past, the market has always been hot on the topic of Dong Mingzhu's retirement and the "successor" of Gree Electric.

has been at the helm of Gree Electric for more than ten years, and Dong Mingzhu is currently 70 years old. At the shareholders' meeting last year, before the shareholders could ask questions, Dong Mingzhu himself mentioned this topic. She said that what kind of person can take over, the internal development of the enterprise has its own rules. "You see a lot of companies, as soon as they change people, they fall. In our opinion, it is necessary to use corporate culture to achieve a group of people, and honest enterprises can cultivate excellent people. The leader of the enterprise should regard the enterprise as his own life and have the spirit of dedication. Without that spirit, you don't deserve to sit here. ”

In addition, Dong Mingzhu also responded to the market's concern about dividends. "Gree is a responsible enterprise, and our determination to strive for annual dividends will not waver, which is also Gree's commitment and 'reassurance' to every shareholder. But shareholders can't be harsh on the company's profits, what to do with the company's subsequent development? Enterprises should also reserve 'dry food', not eat and use up, and must be sustainable. ”

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