Every reporter: Chen Pengli Every editor: Wen Duo
On the afternoon of May 31, Gree Electric (000651.SZ) 2021 online performance briefing was held in the form of online video.The replay video of the performance briefing obtained by the reporter of "Daily Economic News" shows that the meeting was chaired by Deng Xiaobo, the secretary of Gree Electric Appliances. Among them, the speech of Chairman and President Dong Mingzhu and the question and answer session for investors took about half an hour.
The reporter was informed that at this online performance briefing, Dong Mingzhu talked about Gree's new growth points, the progress of channel reform, and the adjustment of employee stock ownership plan assessment indicators and other topics of high concern to the outside world.Dong Mingzhu said that the channel reform of Gree Electric Appliances is the life of the company. Only in this way can we find shortcomings and develop better.She also said that the company had expected a 10% increase in net profit in 2021, but the final result was not satisfactory.However, she believes that Gree Electric Appliances is still a competitive enterprise. In the future, Gree's full range of home appliance consumer goods, new energy, smart equipment, and high-end capacitors will all be good growth points.She also called on shareholders to stop talking about Gree air conditioners and pay attention to Gree Electric Appliances in the whole series.
Image source: Video screenshot
Talking about Channel Reform: Revolutionizing Your Own Life
The reporter noticed that on the afternoon of May 31, at Gree Electric's online performance briefing, Dong Mingzhu was in charge of answering investor questions one by one during the investor question and answer session.
Some investors asked about Gree Electric's channel reform and the progress of the new retail system.In this regard, Dong Mingzhu said that reform is first of all to revolutionize one's own life, because only in this way can we find shortcomings and develop better.Dong Mingzhu said that Gree's previous marketing model was created by her.In 1995, she returned to the company to change the marketing model. Under the complicated background of the market price war in 1997, she led the creation of Gree Electric's marketing model and persisted all the way for more than 20 years.However, in the era of the Internet, Gree is facing huge challenges in the process of changing channels from offline to online.For the huge marketing team, the reform process must not only allow them to move forward, but also make everyone a beneficiary."For us, it is necessary to fully think about it. It is not a one-size-fits-all relationship. Of course, we can do the same, regardless of whether the dealer lives or dies. , this is not Gree's culture." Dong Mingzhu said.
"I have been doing live broadcasts for the past two years. The live broadcast is not for me to do this market, but to experience this market." Dong Mingzhu said.She also said that the company's sales changes in 2021 did not meet expectations, and channel changes were one of the influencing factors, "but it has little impact, because in this process, it is more important to let everyone know. To do a live broadcast."
She said that Gree's past marketing model required a lot of investment from dealers to bring back the goods and store them in the channel.The annual sales of 20 to 30 billion yuan are for the channel. It seems that there is sales on the enterprise side, but the channel needs time to digest.Now that this policy is cancelled, "in terms of performance, it seems that the growth is not fast, but this model makes us more competitive."
"Offline stores used to sell millions of dollars, but now only 300,000 to 500,000 is enough to support." Dong Mingzhu said.
She also mentioned that Gree also had headaches during the online reform process.That is, consumers buying air conditioners online are often measured by low price rather than quality, but Gree's air conditioner production cost is higher than that of general brands."Copper, steel plate, and even small capacitors are very different. Product comfort and energy saving must also be considered. Our material cost is higher than others." Fraud."
She said that the biggest gain of Gree Online is to let more people know that Gree is not only an air conditioner brand, but also more life products."Gree has indeed been 'kidnapped' by air conditioners in the past 30 years. When we talk about Gree, we think of air conditioners, and when we talk about air conditioners, we think of Gree. So today, Gree has become a 'good electrical appliance, made by Gree'."
Talking about performance: The target of 10% has not been reached, but the company has become more resilient
Dong Mingzhu said that the company originally expected a 10% increase in net profit in 2021, but the results were not satisfactory, mainly due to multiple uncertainties such as the complex international situation, the new crown epidemic, and rising raw material prices."Although the 10% (performance growth) target has not been reached in 2021, the company has become more resilient."
"But we still believe that Gree Electric is a competitive company, because in the process of development, Gree Electric has (realized) full coverage from a single air conditioner to the entire consumer electronics. I think this is a good growth highlight for us in the future. "Dong Mingzhu said.
At the end of the investor question and answer session, Dong Mingzhu also said to investors: "Don't always talk about Gree air conditioners, please pay attention to Gree Electric Appliances. From refrigerators to washing machines, to household appliances, the whole series cares about us."
On the other hand, the industrial sector of Gree Electric is also changing. New energy (lithium titanate) technology has opened up new channels for Gree Electric, and the application of "optical storage" technology will become more and more in the future.She told investors that lithium titanate technology will have a good performance this year, and this technology is also a good growth point.
In addition, Gree's intelligent equipment - CNC machine tools has begun to export, and provide CNC machine tools for specific high-end auto companies.Dong Mingzhu also mentioned Gree's high-end capacitor business.Gree has a capacitor factory in 2005, but it has not really realized the effect.But last year, both the capacitor factory and the motor factory made good profits. In 2022, she is also very optimistic about the company's high-end capacitor business.
When it comes to his judgment on the air-conditioning market, Dong Mingzhu is "still very optimistic."Because there are more than 500 million units in the stock air conditioner market with a service life of more than 10 years, the replacement market is infinite."I'm still very optimistic, but there are always difficulties. Perseverance is the winner."
Regarding the adjustment of the company's performance assessment indicators involved in the first phase of the company's employee stock ownership plan that investors are concerned about, Dong Mingzhu responded externally that this is to ensure that they are both contributors and beneficiaries.
