格力电器(000651)

On 9 December 2017, Gree’s chairman Mingzhu Dong was invited by theChina Entrepreneur Summit to give a speech on several topics, including Gree’sautomation strategy and 2017 performance:

The automation reform and diversification strategy are bearing fruits.In her speech, Ms. Dong commented that Gree began to diversifyits businesses in recent years. In addition air-conditioning business, ithas entered into the field of small appliances, smart manufacturing,smart phones etc. Gree is undergoing automation reform. The companyconsidered using the domestic equipment before, but it finally chose theimported German devices due to the higher precision. But as a long termplan, Gree decided to enter into the field of industrial manufacturing in2013. Currently, Gree’s CNC machine, and robots are not only providedfor internal use, but also for other industries. Ms. Dong said that all ofthe devices in Zhuhai Silver Dargon (a company invested by Ms Dongprivately) were produced by Gree.

Preview of 2017 results. According to Ms. Dong, Gree ‘s 2017-ytdrevenue increased RMB 40bn (2016 revenue: RMB108.3bn) as comparedwith last year’s same period, and its NP margin was 15%.