Gree Electric Appliances (000651) H2 2023 earnings summary

Executive summary

• Achieved record performance in 2023, with operating revenue exceeding RMB205.18 billion, up 7.82% year-over-year, and net profit attributable to the parent company surpassing RMB29.02 billion, up 18.41% year-over-year.

• Maintained industry leadership in air conditioners, with top market share in both residential and central air conditioning segments.

• Continued focus on independent innovation, quality management, and digital transformation, with significant investments in R&D and talent development.

Financial highlights

• Operating revenue: RMB203.98 billion, up 7.93% year-over-year.

• Net profit attributable to shareholders: RMB29.02 billion, up 18.41% year-over-year.

• Net cash flows from operating activities: RMB56.40 billion, up 96.73% year-over-year.

• Basic and diluted EPS: RMB5.22, up 17.83% year-over-year.

• Weighted average ROE: 26.53% (up from 24.19%).

• Gross margin for manufacturing: 34.98%; air conditioner segment: 37.04%.

Outlook and guidance

• Plans to continue promoting high-quality development through digital transformation, innovation, and diversified business expansion in 2024.

• Focus on cost reduction, efficiency improvement, and strengthening talent pipelines.

• Identified risks include macroeconomic fluctuations, raw material and labor cost increases, intensified competition, overseas political and exchange rate risks.