Gree Dong Mingzhu: Zhou Shaoqiang loses market action

Gree Electric Co., Ltd. ushered in the first single after the transition from the "Zhu Dongzuo era" to the "Dong Mingzhu era."

On July 16, Gree Electric (000651.SZ) released a performance report showing that in the first half of 2012, the company achieved operating revenue of 48.3 billion yuan, up 20.04% year-on-year; net profit attributable to listed companies was 2.87 billion yuan, up 30.08% from the same period last year.

This was after Dong Mingzhu served as chairman and president of the company. Gree Electric's first performance was announced. As for the performance status, Dong Mingzhu said that in the context of the so-called industry encountering the winter, Gree Electric can achieve such a performance, which is related to the company's long-term accumulation of brand value based on technology.

After Gree entered the “Dong Mingzhu era”, how Gree Electric Co., Ltd. handled the relationship with its major shareholder, the SASAC of Zhuhai, has always been a topic of concern to the outside world. Previously in the middle and late May, Gree announced that at the 2011 annual general meeting of shareholders, Gree Group’s president and party secretary and former Zhuhai SASAC deputy director Zhou Shaoqiang was elected as a director of Gree Electric.

In this regard, Dong Mingzhu said, “Chou Shaoqiang’s defeat is only a normal result of market behavior. There is nothing wrong with him being defeated or not defeated. The outside world has always treated me as a representative of the opposite of state-owned assets, and within the board of directors, On the one hand, I need to represent the interests of major shareholders, and at the same time, it is mainly responsible for the interests of all shareholders."

"I hope someone can share"

"Today, like yesterday, I feel no change." Dong Mingzhu said when he was the chairman and president of Gree Electric Appliances, and Gree Group Chairman, said three important positions.

The formation of this pattern is related to the results of the annual general meeting of shareholders less than two months ago. Zhou Shaoqiang, 40 years old, was transferred to vice president and member of the Party Committee of the Zhuhai SASAC in May this year and transferred to the position of president and secretary of the Party Committee of Gree Group. Against this backdrop, market news speculated that Gree Electric would usher in the era of “Dong and Zhou Dynasties” after the “Zhu Dong Match” was over.

However, at the general meeting of shareholders, Feng Jiyong, elected by Yale University and Penghua Fund, was elected as a director of Gree Electric, and Zhou Shaoqiang was unexpectedly defeated.

The relationship between Gree Electric Appliance's major shareholder Zhuhai SASAC and Gree Electric's management has been regarded as a sensitive topic. In this regard, Dong Mingzhu said, “For any shareholder, I treat it equally. The requirement of a major shareholder for me is to do a good job, let me help it make more money, for me, only to make performance In order to communicate with all shareholders."

When speaking about the feelings of taking up the three positions, Dong Mingzhu said, “I don’t feel tired because 98% of the group’s business is Gree, so the main focus is still on the listed companies. However, I also hope that there will be appropriate Candidates can share my duties."

Dong Mingzhu said that now Vice Presidents of Gree Electric, including Wang Jingdong and Zhuang Pei, have the opportunity to take over her duties. “The vice presidents are also racing for this” and they do not rule out the introduction of talent from outside and serve as Gree Electric. She has held relevant positions.

For the so-called successor's standard requirements, Dong Mingzhu said, "First of all, we must have loyalty to companies, secondly, we must have dedication and a strong sense of social responsibility to enterprises, and second, we can effectively promote the sustainable development of enterprises."

100 Billion Targets Unchanged After completing the “Zhu Dongzuo era” to the “Dong Mingzhu era”, Gree Electric Appliances made a brilliant response.

Gree Electric's half-year performance report data show that the first half of 2012, the company achieved operating income of 48.3 billion yuan, an increase of 20.04%; to achieve the listed company's net profit of 2.87 billion yuan, an increase of 30.08%. Among them, in the first quarter of this year, Gree Electric Appliances realized a total operating income of 20.088 billion yuan, an increase of 16.29%; net profit of 1.174 billion yuan, an increase of 25.56%.

Wang Jingdong, vice president of Gree Electric, said that the industry did encounter some problems this year, and I heard that some companies had a 30% drop in revenue in the first half of the year. However, Gree Electric Co., Ltd. maintained a steady trend in domestic sales, and in the generally considered bad export market, Gree Electric Appliances still achieved a year-on-year increase of more than 10%.

Dong Mingzhu said, “In this state of the industry, we have achieved steady growth. Our company is quite satisfied with the performance in the first half of the year.”

According to the report from the Ministry of Industry and Information Technology published in the January-April 2012 domestic appliance industry, the growth rate of China's home appliance industry has further slowed down. The growth rate has dropped from the double digits of the same period last year to single digits, and the number of loss-making enterprises has increased by 17.2% over the same period of last year. .

Can industry conditions out of the sluggish growth situation in the second half of the year? In this regard, Dong Mingzhu said that the trend of the market this year is not good analysis, because the current point of view, many regions this year, the temperature is not high, affected by temperature air conditioning consumption in many areas is not ideal. Faced with this situation, "I have always said that there is no bad industry, only bad companies."

Whether this situation will affect Gree Electric's annual sales target of over RMB 100 billion, Dong Mingzhu said, “I always think that the goal to be able to win is only challenging, and according to the current data, it is not until the end of the year. Achieving the sales target of 100 billion yuan after tax, that is, to achieve sales of 10 billion yuan a month, this goal is challenging, but it has momentum for us."