At the end of each year, the most concerned topic of various companies is undoubtedly the year-end bonus, recently Dong Mingzhu announced an additional 200 million year-end bonus, in the face of such a hot information, people can't help but want to ask what is the confidence of Gree Electric Appliances? How do we analyze this?
1. Dong Mingzhu announced an additional 200 million year-end bonus?
According to a report by Shangguan News, Gree Electric has crossed the threshold of 200 billion yuan again after four years, and its total operating income in 2023 is expected to reach 205 billion yuan to 210 billion yuan, and the net profit attributable to the parent company will reach 27 billion yuan to 29.3 billion yuan. On January 28, 2024, Gree Electric Appliances once again held a party of more than 10,000 people, and Dong Mingzhu, chairman and president of the company, said that Gree Electric's performance reached a record high last year and strives to double in the next five years.
Six years ago, Gree Electric also held a meeting of more than 10,000 people on May 16, 2018"Set sail again"At the party, the total operating income of the year exceeded 200 billion yuan for the first time to 20002.4 billion yuan, and the net profit attributable to the parent company was 26.2 billion yuan. In 2019, Gree Electric introduced strategic investors and completed the mixed ownership reform, and Zhuhai Mingjun, which has a Hillhouse background, became the major shareholder, and Gree Electric Appliances changed from a state-owned holding company to no actual controller. In 2019, the total operating income of Gree Electric Appliances reached a new high of 200.5 billion yuan, and the net profit attributable to the parent company was 24.7 billion yuan.
Later, after three years of the impact of the epidemic, Gree Electric's total operating income in 2020, 2021, and 2022 fell to 170.5 billion yuan, 189.7 billion yuan, and 190.2 billion yuan respectively.
In the face of more than 20,000 overseas and domestic dealers, guests and Gree employees at the scene, Dong Mingzhu said at the party on the 28th that innovation is the vitality of the enterprise in the manufacturing industry, and the best performance of Gree Electric Appliances in the 33 years since its establishment in 2023 is due to innovation. In 2023, Gree Electric will pay 17.6 billion yuan in taxes, and hopes to pay more than 20 billion yuan in taxes in 2024. In the past five years, Gree Electric has paid an average annual dividend of more than 14 billion yuan.
In order to allow employees to fully enjoy the fruits of the company's development, Dong Mingzhu decided to spend an additional 200 million yuan to give employees a year-end bonus.
Second, what is the confidence of Gree Electric Appliances to make a lot of money?
Recently, Dong Mingzhu, chairman of Gree Electric Appliances, announced that he would issue a year-end bonus of 200 million yuan to employees, which has attracted widespread attention in the market. We can't help but ask: why does Gree Electric dare to issue year-end bonuses so generously? Where does its confidence come from?
First of all, the first root cause of daring to send money is that Gree has made money. Gree Electric dares to issue more year-end bonuses, first of all, thanks to the continuous growth of its income. In recent years, Gree Electric's revenue has continued to rise, once again breaking through the 200 billion mark. This achievement is the result of Gree Electric's efforts in product innovation, marketing, brand building and other aspects. With the increase in the company's profitability, Gree has more funds to reward employees, improve employee satisfaction and loyalty, and promote the company's sustainable development.
Secondly, at the macroeconomic level, this achievement has benefited from the recovery of China's domestic consumer market and the trend of consumption upgrading. In 2023, with the adjustment and optimization of national economic policies and the recovery of consumer confidence, the demand for durable consumer goods, including air conditioners, will increase significantly. In particular, the frequent occurrence of high temperature weather has caused a surge in the demand for air conditioners as a necessity for homes and commercial places, which has brought a huge market space for Gree Electric Appliances. With its brand influence, product quality and technical advantages, Gree continues to maintain a leading position in the field of air conditioning, and its market share has been further consolidated and expanded.
Third, the risk of over-reliance on a single track is also emerging. In the first three quarters of 2023, Gree Electric's air conditioning business contributed about 70% of the total revenue, which is undoubtedly an important pillar for Gree to achieve high revenue. However, a high dependency on a single product line also means potential risks. In the face of intensified competition in the industry and changes in market demand, Gree's management is well aware of the importance of diversified development, and strives to reduce the risk of over-dependence on the air conditioning business through technology research and development innovation, product line expansion and industrial chain integration, and gradually lays out emerging industries such as smart home and intelligent equipment, in order to maintain sustainable growth in performance in the future.
Fourth, although the current performance of Gree Electric is strong enough to support the high year-end bonus, it does not mean that the company can sit back and relax. In the long run, in order to achieve sustainable development and long-term development, Gree Electric must implement a diversified strategic layout and innovation-driven development model. On the one hand, the company can reduce the energy consumption of air conditioning products and improve the energy efficiency ratio through technological innovation and product upgrading, so as to meet the requirements of environmental protection and energy saving; On the other hand, we can also actively explore new opportunities and new markets in the fields of smart home and new energy, so as to achieve diversified and balanced development of business.
In short, the confidence of Gree Electric Appliances to dare to issue more year-end bonuses lies in its outstanding performance and stable financial situation. However, it also reminds us that any enterprise needs to focus on long-term development, constantly looking for new growth points, and reducing dependence on a single track. Only in this way can we be invincible in the market competition.
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