As early as April 15 when Gree Electric released its 2020 results snapshot, some home appliance industry analysts said that given Gree Electric's performance in the first three quarters of 2020 - a decline of 18.8% in revenue and a decline of 38.06% in net profit attributable to the listed company - investors for the Gree Electric 2020 full-year performance will have a significant decline in psychological preparation, the results of its annual revenue, net profit decline to remain within 16%, counting more than expected.
Anxin Securities analyst Zhang Licong believes that Gree Electric 2020 fourth-quarter results exceeded expectations is the embodiment of the initial results of channel reform.
From the perspective of four quarterly performance data, Gree Electric's performance in the fourth quarter of 2020 saved the day. the fourth quarter of 2020 net profit attributable to listed companies amounted to 8.476 billion yuan, accounting for more than 38% of the annual net profit attributable to listed companies.
Reviewing Gree Electric's 2020 annual report, there are three key points are more prominent, one is the expansion of production capacity and products; the second is the channel reform; the third is the large cash dividend.
Geli Electric's 2019 annual report had disclosed that Geli Electric has 14 large home appliance production bases, while the 2020 annual report disclosed that the number of production bases has increased to 17, with the addition of production bases in Ganzhou and other places. Affected by the new crown epidemic, the sales of large appliances such as air conditioners, refrigerators, washing machines, kitchen appliances and other major appliances were hindered, and retail sales all declined to varying degrees, but the sales of household appliances were popular, and the importance of health appliances was highlighted.In 2020, Gree Electric enriched its home appliance categories with the launch of new disinfectant makers, decontaminating small square tubes, hand-held vacuum cleaners, heat pump washer-dryers, electrically-heated lunchboxes, fruit juice cups, hand-held Tooth Flosser, Handheld Vacuum Cleaner, Dishwasher and other categories.
New crown under the epidemic, Gree Electric also entered the medical and health care field, newly established Zhuhai Gejian Medical Technology Company Limited (hereinafter referred to as "Zhuhai Gejian") and Chengdu Gree Xinhui Medical Equipment Co. (hereinafter referred to as "Gree Xinhui"). Among them, Zhuhai Gejian produces epidemic prevention materials and mainly produces and sells Class I and Class II medical devices such as medical goggles, medical masks and medical forehead temperature guns. Greexinhui is the production of medical equipment, Greexinhui introduced, Greexinhui developed mobile protective equipment to fill the company in the medical equipment temperature control system product blanks, 2020 has been marketed and delivered to the market, to help nucleic acid mobile testing, reduce the testing load of the hospital.
Despite the Zhuhai Gejian and Gree Xinhui was not established for a long time, but benefit Gree Electric 2020 revenue. Gree Electric's 2020 annual report disclosed that Zhuhai Gejian's impact on the company's 2020 revenue amounted to 24.21 million yuan, Gree Xinhui's impact on the company's 2020 revenue amounted to 1.199 million yuan.
Channel reform is Gree Electric 2020 colorful. 2020, Gree Electric held eight stops of the national tour of live activities, driving 30,000 offline stores to open online Gree Dongzhu store to enhance the online channel.