At Gree Electric Appliances, Inc. of Zhuhai's (000651.SZ) second extraordinary shareholders' meeting for 2025 held yesterday in Zhuhai, the management addressed questions on product strategy, channel reforms, dividends, overseas expansion, and more.
Compared to previous meetings, this gathering appeared relatively subdued, with only about 70 shareholders in attendance. Gree's Chairperson Dong Mingzhu remarked, "Many of those present today are long-time partners of Gree. This isn’t just a shareholders' meeting—it’s a gathering of friends."
Regarding dividends, the meeting approved the "2025 Interim Profit Distribution Plan," with 99.8959% of voting shares in favor (2,331,422,068 shares) and only 0.0868% opposed (2,025,411 shares). The plan proposes a cash dividend of 10 yuan per share (tax-inclusive), totaling 5.585 billion yuan.
Dong acknowledged shareholders' dividend expectations but emphasized Gree's track record: "Since its IPO, Gree has raised just 5 billion yuan while distributing over 170 billion yuan in dividends. Shareholders want the 'horse to run,' but it must also 'have grass to eat.' Gree’s foundation lies in creating value for consumers. Only when products succeed in the market can profits—and dividends—follow naturally."
A decade-long shareholder inquired whether Gree’s dividend stability would persist. President Zhang Wei affirmed Gree’s commitment to maintaining high, steady dividends, linking this consistency to the company’s operational philosophy and investor returns.
On sales and channel reforms for Dong Mingzhu Healthier Home (a product line), Sales Director Lu Luqun reported over 1,000 stores since its February launch. Sales ratios have shifted from 70% air conditioners to a balanced 1:1 split with non-AC categories in some stores, reflecting Gree’s transition from "great ACs" to "great appliances" and revamped dealer profitability.
Lu added that Gree is streamlining its national wholesale channels by eliminating middle layers, enabling direct dealer-to-HQ coordination.
Addressing critics who argue Gree should "stick to ACs," Dong countered that success hinges on focus, not specialization or diversification. "Our core AC technologies, like compressors, have enabled expansions into refrigeration, heating, and home appliances—proving our technical depth and adaptability."
Notably, Dong, who has been "speaking less," only took the microphone during the Q&A—unlike the 2024 annual meeting where former independent director Liu Shuwei urged her to step back for younger executives. Dong then pledged to "talk less" to give them more visibility.
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