Gree Electric's semi-annual report: The new retail model has achieved remarkable results, and the new shareholder Gao Wei has empowered diversified transformation.

On August 30th, Gree Electric released the semi-annual report for 2020. This is also the first semi-annual report released since Gree mixed reform at the end of last year. According to the report, due to the global COVID-19 epidemic, the production and sales of the air-conditioning industry have been affected. In the first half of the year, the domestic central air-conditioning market declined by 22% year-on-year, and Gree Electric's revenue and net profit also declined to varying degrees. But overall, Gree Electric's total assets have not changed significantly. Fixed assets, intangible assets and construction in progress among the main assets are stable, and investment in long-term equity and other equity instruments increased by 48. 18% and 84.29% respectively from the end of last year. The net assets attributable to shareholders of listed companies are still growing against the trend.

The temporary depression caused by the epidemic situation cannot represent the development trend of the air conditioning industry. Compared with mature markets such as Japan, there is still room for growth per 100 household air conditioners. With the gradual increase of third-and fourth-tier cities and rural markets, and the release of upgrading demand, there is still room for growth in the HVAC market. As the impact of the epidemic dissipates, the development of the industry will return to the right track. On the other hand, since July 1 year, China has implemented the energy efficiency limits and grades of room air conditioners, which put forward higher requirements for air conditioning energy efficiency. In addition, consumers' demand for air-conditioning equipment has also shifted to the direction of improving air quality in all directions, such as temperature and humidity, purification, sterilization and fresh air, which will accelerate the restructuring of the industry and give Gree Electric more opportunities to win market share.

The financial report also pointed out that in the first half of the year, Gree Electric promoted the new online retail model nationwide, shared the platform with the original offline sales channels, and steadily passed the transition period of sales channels and internal management through the policies of platform live broadcast cooperation, offline specialty stores and online linkage promotion, so as to improve channel efficiency and reduce the channel cost of products. In addition, Gree Electric has also made some progress in the field of high-end equipment and promoting the intelligent upgrading of enterprises. Not only the independent R&D and production of core components of industrial robots have been successfully realized, but also the research of high-speed direct-drive high-precision CNC machine tools has been successfully selected into the pilot demonstration project of intelligent manufacturing in Guangdong Province.

Although affected by the epidemic, Gree's overall operating performance is still strong, which is closely related to the internal mixed reform in Gree Electric. On February 2, last year, 65438, Gree Electric announced that Gree Group signed the Share Transfer Agreement with Zhuhai Mingjun Investment Partnership (Limited Partnership) under Gaochun Capital, and Gaochun Capital replaced Gree Group as the largest shareholder in Gree Electric. As mentioned in the financial report, after the mixed reform, new shareholders have brought empowerment to the company. It is reported that during the cooperation between the two parties, Gree Electric's shareholding structure was further optimized and its governance structure was more reasonable. Gaoyou has introduced strategic resources to Gree Electric in the fields of technology, products and channels, making it develop in a more market-oriented direction, and the layout strategy of science and technology, innovation, diversification and globalization has also been solidly promoted. Zhongtai Securities Research Report believes that "Gree's exploration of online-driven new retail model has achieved initial results, and the offline channel level has been gradually optimized." This change is related to Gao Ling's active promotion of Gree's innovation and development after taking office. In addition, from a macro perspective, the joint efforts of Gree Electric and Gaoling conform to the national policy trend of deepening the development of manufacturing industry, which will vigorously promote the adjustment of industrial structure and the implementation of the national innovation strategy, and effectively serve the high-quality development of the real economy.

At the end of 20 19, after Gao Xian became a shareholder in Gree, some securities analysts believed that Gao Xian was more likely to realize industrial empowerment in many aspects, such as promoting multi-party strategic cooperation, accelerating information construction, and escorting diversified expansion, thus opening up a new situation for the reform of mixed ownership of state-owned enterprises.