Dong Mingzhu: Don’t ask the successor questions about Gree’s good development is the most important thing

Chairman and President Dong Mingzhu said at the shareholders' meeting of Gree Electric Appliances (000651, SZ) yesterday that Gree Air Conditioner's position as the "boss" in the next ten years has been unshakable, and the air conditioning field is more broad, and the central air conditioning and cooling power market still have huge room for growth.

Regarding the highly-watched transformation of intelligent manufacturing, Dong Mingzhu said that Gree is currently committed to independent research and development. In addition to the import of individual molds, more than 80% of intelligent equipment has been independently developed.

Faced with the problem of increased manpower, Dong Mingzhu said that Gree had a lot of traditional workers before, but now more than half are technical talents. In the future, Gree will also need technical workers to fully automate.

Gree's stock price is lower than normal value

Dong Mingzhu was asked about the decline of Gree Air Conditioner at the shareholders' meeting. She said that only when Gree loses its position as the boss is called a "decline", and Gree Air Conditioner's position as the "boss" in the next ten years will not be shaken.

When asked about the successor, Dong Mingzhu asked the investors, "I don't want to stay, do you welcome them?" She said that regardless of whether she is in Gree or not, Gree is developing well, this is the most important thing. When asked if there will be a successor in the next five years, she suggested not to ask again.

The problem surrounding Dong Mingzhu is that in the past two years, she has recorded more than 30 increases in holdings of Gree shares, and the time point for increasing holdings was that when Gree's stock price was low, she was jokingly said that she was right to scout the spot. Dong Mingzhu said to this, "Everyone is not optimistic, I will buy it if I am optimistic." In addition, last year, regulators encouraged directors to increase their holdings to protect the market. Even though Gree's stock price did not need to "protect the market", she still bought a little.

However, she believes that Gree's stock price is more than that, and is less than normal value. For investors to follow up, she advised not to follow her. "Don't follow me blindly, what if I bought the wrong one?"

What has attracted much attention is that Gree still has sufficient cash after high dividends. Yesterday, the shareholders' meeting also voted to pass a proposal to use idle funds to invest in financial products. Some investors asked why they did not invest idle funds in high-quality companies in the stock market. Dong Mingzhu said that investment requires professional ability, and Gree's professionalism is reflected in "manufacturing". She hopes that Gree will also take the "single-plank bridge" of "manufacturing" in the future to create more dividends for shareholders.

Yesterday, many investors mentioned the dividend method. Dong Mingzhu said that Gree's dividends are "divided if you have money". As for how many times a year and how much dividends are distributed, it is recommended that small shareholders can submit them to the board of directors if they have relevant opinions. Gree will definitely have good development this year and will have good growth potential.

Can equity incentives keep employees?

In Dong Mingzhu's view, Gree is the well-known one that benefits from its related transactions with Yinlong. Yinlong brings new growth space to Gree in the fields of automobiles and other fields. If Yinlong Automobile purchases Gree air conditioners, it can bring Gree revenue of 1 billion to 2 billion yuan.

Dong Mingzhu said that Yinlong's acquisition is a story, but some people have disturbed it and “disrupted it.” If successful, Gree can enter many fields. At present, she holds shares in Yinlong out of helplessness, "If you don't go, it's nothing to do with Gree." Dong Mingzhu said that she is optimistic about synergy and believes that this will benefit Yinlong and Gree.

Regarding Gree mobile phones that have begun to have the third generation, Dong Mingzhu said that it is not the time to make efforts. Gree is still planning, considering whether to buy private label or all self-made, and has not decided yet. If you finally decide to make your own decision in the future, you must have the ability to grasp it.

Many investors mentioned whether the employee stock ownership plan that failed last year was launched again or used equity incentives to ensure the enthusiasm of employees. Dong Mingzhu said that the employee stock ownership plan failed last year, but it did not affect the enthusiasm of employees. Currently she encourages employees to buy shares directly in the market.

However, she believes that whether equity incentives can retain employees is a question worth thinking about. Huawei's stock holding plan is very good, but "the person who should leave still leaves", which is not a good way to keep people. She believes that people should be retained through multiple channels. Last year, Gree added money to employees, and the employee treatment was increasing reasonably. As for investors who want to promote employee shareholding, but listed companies have a big market and must pass the board of directors and shareholders' meeting. She said that shareholders can come up with proposals if they have any opinions and promote the board of directors and shareholders' meeting to consider it.

When he was mentioned many times that he imitated Huawei to encourage its backbone employees, Dong Mingzhu replied again that Huawei is a listed company and its operating method is different from Gree.

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