Three more years?Gree Electric Appliances plans to pay “10 billion red envelope” for three years, which is accused of paving the way for Dong Mingzhu’s re-election

2022-06-08 0 By

In the position of chairman of Gree Electric Appliances, Dong Mingzhu once again showed her domineering attitude.On the evening of January 24, Gree Electric Appliances announced that the company will hold an extraordinary general meeting of shareholders on February 28, at which time the company’s board of directors will be elected.To this end, the eleventh board of Directors of the Company nominated Dong Mingzhu, Zhang Wei, Deng Xiaobo, Zhang Jundu and Guo Shuzhan as non-independent director candidates for the twelfth board of Directors of the Company.This also means that Dong Mingzhu will be a large probability of re-election gree electric chairman.Since taking over as chairman in 2012, Dong Mingzhu, 68, has been “serving” over her age and has repeatedly been rumored to retire and develop a succession plan, but these rumors are often unsubstantiated and are now even more refuted.It is worth mentioning that gree Electric Appliances issued several announcements on the evening of January 24, which also involved the shareholder return planning for the next three years. Gree Electric Appliances proposed that the total accumulative cash dividend should not be less than 50% of the annual net profit from 2022 to 2024.Industry insiders said gree electric appliances’ gift to shareholders and investors is clearly paving the way for Dong mingzhu’s re-election.To this, the reporter to gree electric appliances market department for confirmation, interview did not get a reply.Offering dividends as “trump card”?On the evening of January 24, Gree Electric Appliances announced that in order to establish a scientific, sustainable and stable shareholder return mechanism and effectively protect the legitimate rights and interests of shareholders, the company has formulated the Shareholder return Plan for the next three years (2022-2024), taking corporate profitability, business development plan, shareholder return and other factors into consideration.According to the plan, Gree Electric Appliances plans to distribute profit twice a year from 2022 to 2024, namely, annual profit distribution and interim profit distribution;In addition, on the premise that the cash flow of the company meets the normal operation and long-term development of the company, the cumulative total cash dividend of the company from 2022 to 2024 shall not be less than 50% of the net profit of the year.Gree public dividend generous, has been gree electric label.Public data show that during the six years from 2012 to 2018, except for 2017, the annual dividends reached 3.08 billion yuan, 4.512 billion yuan, 9.024 billion yuan, 10.828 billion yuan (2016) and 12.633 billion yuan (2018), respectively.Another data also shows that from its listing in 1996 to 2020 (the annual profit distribution plan of 2020 is not included), Gree Electric Appliances has realized 22 dividends, with the total amount of dividends reaching 67.566 billion yuan, accounting for more than 40% of the net profit returned to the parent during the period.”From the perspective of pure dividend, Gree is responsible for shareholders. At that time, we only raised 5 billion yuan from the stock market, and now the cash dividend return to shareholders has exceeded 40 billion yuan.”Dong mingzhu has repeatedly said publicly that Gree Electric Appliances has always been generous and responsible when it comes to dividends.Not long ago, Dong Mingzhu said in an interview with the media: “Gree pays dividends every year, which is not the only one among listed companies, but also one of the few.”This is also recognized by Gree’s investors.A Gree electric shareholder told reporters, Gree electric appliances is known as a conscience enterprise, now the “tuhao style” official dividend, for investors is a major good.On January 25, Gree Electric Appliances was one of the few red spots, edging up 0.10% in a market full of green.Dong Mingzhu will work for another three years. The chairman of the board sent a gift of “ten billion red envelopes”, gree electric appliances practice, also attracted a variety of hot discussions.The personage inside course of study points out, so-called “no profit can’t afford early”, Gree electric appliance this official publicizes generous bonus, apparently is in for Dong Mingzhu’s reelection campaign, paves the way.On the evening of January 24, Gree Electric Appliances announced that the company will hold an extraordinary general meeting of shareholders on February 28, at which time the company’s board of directors will be elected.To this end, the eleventh board of Directors of the Company nominated Dong Mingzhu, Zhang Wei, Deng Xiaobo, Zhang Jundu and Guo Shuzhan as non-independent director candidates for the twelfth board of Directors of the Company.Shuwei Liu, Xiaohua Wang, Ziwen Xing and Qiusheng Zhang were nominated as independent director candidates for the 12th board of Directors of the Company.In other words, Dong Mingzhu will start a new term of office.As early as January 2019, Gree Electric Appliances elected the 11th board of Directors, dong Mingzhu, Huang Hui, Wang Jingdong, Zhang Wei, Zhang Jundu and Guo Shuzhan as non-independent directors, and Liu Shuwei, Xing Ziwen and Wang Xiaohua as independent directors.Now, three years later, gree Electric Appliances has seen significant changes in its management: Zhang Jundu and Guo Shuzhan, representatives of gree’s core dealers who have been Dong mingzhu’s partners for many years, are still on the list of candidates for the new non-independent director.Wang Jingdong, the secretary of the board of Directors, resigned in August 2020, and Huang Hui, the executive president, resigned in February 2021.In December 2020, Deng Xiaobo served as vice President and Secretary to the board of directors of the company.To over age “service” dong Mingzhu, her go or stay has been concerned.Dong Mingzhu’s re-election is also facing a lot of controversy.A senior person in the home appliance industry told Tuyere Finance that Gree Electric Appliances is an excellent enterprise and Dong Mingzhu is a competent chairman, but it remains to be seen whether her reappointment is “better than better” for gree Electric Appliances, which is in a critical period of transition.Despite her aura, one thing is clear: Dong Mingzhu will not be an easy chairwoman in the next three years.In the past 10 years, under dong Mingzhu’s leadership, Gree Electric Appliances has become bigger and stronger, but its performance in recent years has been unsatisfactory, especially its diversification transformation has been criticized for a long time.Gree Electric Appliances put forward its diversified development strategy in 2013. According to Dong Mingzhu’s vision, Gree Electric Appliances has developed from a specialized air conditioning enterprise into a diversified and technology-based global industrial group.However, the results of transformation are not significant.According to gree Electric Appliances’ 2021 semi-annual report, air conditioners account for 73.79% of gree Electric Appliances’ total revenue, while household appliances and intelligent equipment only account for 2.42% and 0.21% of gree Electric Appliances’ total revenue respectively.On the one hand, other industries have not become a climate, on the other hand, the main industry of air conditioning is facing the ceiling, and even overtaken by competitors in the United States.Gree electric appliances is searching for a second growth curve that has yet to emerge, which is dong mingzhu’s big challenge ahead.Of course, Dong Mingzhu also has his trump card in hand.Related people said that new energy, medical equipment, etc., are the new business layout of Gree Electric Appliances in the past two years, and there is a possibility for Gree Electric Appliances to rebuild momentum.For example, clean industries such as new energy, energy storage and photovoltaic will usher in great development. Gree Electric Appliances, which can master core technologies and take the lead in related fields, is expected to gain a new round of development advantages.Last year, Gree Electric Appliances won a 30.47 percent stake in Yinlong New Energy Co., now known as Gree Titanium New Energy, through a judicial auction.At the same time, Dong Mingzhu entrusted Gree Electric Appliances to exercise the voting rights corresponding to her 17.46% shares of Yinlong New Energy.Upon completion of the transaction, Gree Electric Appliances will collectively control 47.93% of the voting rights of Yinlong New Energy.Joining hands with Yinlong is not only gree Electric Appliances’ initiative to seek green transformation, but also shows gree Electric Appliances’ strength and courage in the development of new energy industry.It is understood that Gree electric Appliances currently has nearly 90,000 employees, including nearly 16,000 r&d personnel and more than 30,000 technical workers.Dong Mingzhu has repeatedly said that Gree Electric Appliances’ talents are trained independently and outstanding talent advantage is gree Electric Appliances’ greatest resource.It can be said that with the arrival of the new term, Dong Mingzhu still has time to continue to complete the mission of leading the transformation of Gree Electric Appliances.(This point of view is for reference only, does not constitute investment advice, investment is risky, the market should be cautious!)