Geli's performance decline is not because of decision-making mistakes, but because of the past increase is too large, the market downward pressure, product price downward adjustment of three factors **** the same lead.
Revenue decline, net profit margin rose
Geli's annual report results showed a significant decline, causing social concern, and Dong Mingzhu also made a clear response to this matter. The woman in charge said, from the current situation, the demand for home appliances industry has been in a situation of an overall slowdown, nearly three years of plant energy increase and product price adjustment needs a certain amount of digestion time, so that led to the decline in Gree's total operating income last year, at the same time, Dong Mingzhu said that Gree Electric before this has achieved the highest net profit margin in history, and has been invested in the research and development of innovative science and technology and equipment entrepreneurship on the shift .
And the future of the air conditioning industry will be the pillar of Gree, Gree will also develop new energy life appliances molds and cell phones and automation equipment and other emerging industries, that is to say, Gree will have to carry out the transition from purely home appliance manufacturing enterprises into equipment manufacturing and new energy enterprises, truly diversified development, according to Gree's annual report shows that Gree Electric Appliances year-on-year decline in operating income by 28.17%, shareholders' net profit was 12.7%. Total revenue, shareholders net profit of 12.532 billion yuan, down 11.16% year-on-year net profit was raised to 12.5%, the highest level in history.
Main reasons for revenue decline
And Dong Mingzhu believes that there are three main reasons for the revenue decline, one of which is that in the past few years, Gree has already achieved a significant increase in annual revenue in the industry of air conditioning, from 80 billion yuan across to 120 billion yuan, so the market needs some time to digest this great increase, secondly, the domestic market has also been the downward pressure of demand beyond expectations, from the industry data shows that last year, the total domestic sales of air conditioners 106 million units, down 8.6%, the domestic market pressure is also one of the factors that led to the decline in performance, and lastly, Dong Mingzhu said that most of Gree's products have adjusted the price and price downward adjustments, for the overall amount of revenue also caused a certain impact.
Future Gree will realize diversified and steady development
But Dong Mingzhu also said that the decline in revenue has not hindered the pace of Gree's transformation, benefiting from the brand effect as well as the significant improvement of the enterprise's technological innovation ability, Gree air conditioning still occupies a certain position in the global market for household air conditioning, and in the field of commercial air conditioning have also been achieved considerable success.
In addition to the breakthroughs made by Gree enterprises in the field of aerospace, including photovoltaic air conditioning, including the basic sales, has also begun to have a new point of growth, the current share of Gree in the domestic market accounted for nearly 50%, so Dong Mingzhu said that the future Gree's point of strength will be the international market to further reduce the share of the OEM, increase the share of the independent brand, and in the future, Gree will also further develop the life of the Electric appliances and intelligent equipment and other industries, including the field of refrigerator appliances and intelligent equipment, but also includes a number of industries such as medical food, to achieve diversified and steady development.