Dong Mingzhu's Gree years: a total of 200 million dividends, 11 years, 37,200,000 pay

Dong Mingzhu's Gree Years:

A total of 200 million dividends, 11 years of leadership 37.02 million

It is planned to acquire Zhuhai Yinlong New Energy, and the supporting fund-raising plan is rejected; Gree's small home appliance revenue contribution is low, and the mobile phone “sees no benefit in the short term”

"I didn't applaud when I came in, this is the first time." "Gree didn't treat you badly! I can't do this at all." "I don't give you dividends for 5 years. How can you treat me?" October 28 At the special shareholders meeting of Gree Electric Appliances, Dong Mingzhu, Chairman of Gree Electric Appliances, “reprimanded” the small and medium shareholders who came to the meeting.

At the meeting, Gree Electric plans to acquire 13 billion yuan to purchase Zhuhai Yinlong New Energy due to the support of the major shareholder Gree Group, but the proposal to raise funds was rejected by the minority shareholders by more than half of the votes.

In 2012, it was precisely because of the support of small and medium-sized shareholders that Dong Mingzhu, then vice chairman and president of Gree Electric Appliances, was able to take over as the founder of Gree Zhu Jianghong and became the chairman of the board, opening the era of Dong Mingzhu of Gree Electric. But in the past four years, the small and medium-sized shareholders who once supported Dong Mingzhu did not support her this time.

Small and medium shareholders changed from "support" to "opposition" within 4 years

On October 28, Gree Electric Appliances will prepare a seven-month asset acquisition plan for consideration by the shareholders meeting. The acquisition of Zhuhai Yinlong by 13 billion yuan and the march into the field of new energy vehicles is an important step in the diversification of Gree Electric.

But the result of the vote was quite dramatic. With the support of the major shareholder Gree Group, the asset acquisition proposal passed the insurance with an overall support rate of 66.96%, but the small and medium-sized shareholders participated in the vote and voted against it. The supporting fundraising proposal was rejected by the minority shareholders due to the large shareholders' withdrawal.

"Gree doesn't treat you badly! I can't do this at all." "Do you see what kind of listed companies give you dividends?" At the shareholders meeting, Dong Mingzhu was disappointed because of the disagreement between the small and medium shareholders and the management. ".

In 2012, Dong Mingzhu was elected as the chairman of Gree Electric Appliances because of the support of small and medium shareholders.

On May 5, 2012, when Gree Electric sprinted the 100 billion sales mark, Gree Electric announced the general election of the board of directors at the general meeting of shareholders. The soul figure and Zhu Jianghong, the chairman of the board of directors, were not on the list of director candidates.

On May 10, 2012, Zhuhai City officially appointed Dong Mingzhu as the chairman of Gree Group, Lu Junyi, the chairman of Gree Real Estate, as the vice chairman of the group, and Zhou Shaoqiang as the party secretary and president. The major shareholder Gree Group "changing handsome" is a prelude to Gree Electric's "transfer class."

At that time, Zhou Shaoqiang, 40, was appointed as the deputy director and party committee member of the Zhuhai Municipal State-owned Assets Supervision and Administration Commission and was appointed as the president and party secretary of the Gree Group. At that time, market news speculated that after the end of "Zhu Dongpei", Gree Electric Appliances will usher in the "Dong Zhoupei" era.

However, at the shareholders meeting, Feng Jiyong, who was elected by Yale University and Penghua Fund, was elected as a director of Gree Electric Appliances, and Zhou Shaoqiang was unsuccessful. In addition to Zhou Shaoqiang, other candidates including Dong Mingzhu have a support rate of over 95%. Under the small shareholders vote of Gree Electric Appliances, Zhou Shaoqiang, the majority shareholder of Zhuhai State-owned Assets Supervision and Development Commission and Gree Group, was blocked from the board of directors. Dong Mingzhu also served as Chairman and President of Gree Electric Appliances and Chairman of the Gree Group. Gree entered the Dong Mingzhu era.

18 cash dividends, Dong Mingzhu got 200 million

The supporting fund-raising proposal on October 28 failed to pass, which made Gree's acquisition of Zhuhai Yinlong full of uncertainty. Dong Mingzhu said at the shareholders meeting that the participating shareholders were “everyone with different minds”. "Gree doesn't treat you badly." "I don't pay dividends to you for 5 years. How can you treat me, the more you give you more, the more words you have."

The Beijing News reporter noted that since its listing in 1996, in addition to the infrared in 2006, Gree has paid dividends for the rest of the year, of which 18 have cash dividends, and only 1997 did not send gold. Since its listing, Gree has accumulated a total dividend of 30.964 billion yuan, a total net profit of 76.052 billion yuan, and a dividend payout ratio of 40.71%.

Since Dong Mingzhu became chairman in 2012, Gree's dividends have been even stronger.

In 2013, Gree's net profit was 7.446 billion yuan, cash dividend was 3.008 billion yuan, and dividend payout ratio was 40.4%. The previous five-year Gree dividend payout ratio was only 32.04% in 2009. In 2014, Gree's dividend payout ratio increased to 63.31%, and the net profit of 14.253 billion yuan was 9.024 billion yuan used for dividends. In 2015, although the revenue and net profit since the listing fell double, the Gree still improved. Dividend ratio, dividend payout rate reached 71.48%.

In the Dong Mingzhu era, the cumulative dividend was 25.568 billion yuan. It is not only the small and medium-sized shareholders who enjoy the benefits of Gree Electric's high dividends. Dong Mingzhu personally also has a lot of profits due to the high dividends of Gree Electric. He has accumulated a cash dividend of 200 million yuan.

The Beijing News reporter noted that as of the third quarter of this year, Dong Mingzhu had held Gree's 44,235,500 shares, but at the beginning of Gree's listing in 1996, Dong Mingzhu held only 500 shares of Gree as an employee. Most of the shares held by Dong Mingzhu are from the equity incentives launched by Gree in 2006.

In 2006, Gree Electric implemented the share-trading reform, and the controlling shareholder Gree Group made a commitment: the share reform will allocate 26.39 million shares from the shares held by Gree Group as the stock source of Gree Electric's management equity incentive plan. Gree Electric executives and middle management personnel including Zhu Jianghong and Dong Mingzhu became the target of equity incentives.

Through equity incentives, Dong Mingzhu received 1.5 million shares, 2.5 million shares and 2.26 million shares in 2006, 2007 and 2009 respectively. The subscription prices were 5.07 yuan, 3.87 yuan and 4.49 yuan respectively, totaling a total of 27.434 million yuan. . Gree said Dong Mingzhu’s subscription funds came from self-raising.

In addition to the equity incentives, Dong Mingzhu also received salary from Gree Electric. In 2005, Gree Electric disclosed the annual salary of executives for the first time in the annual report. Dong Mingzhu, then a director and general manager, earned an annual salary of 550,000 yuan, second only to the chairman of Zhu Jianghong's 600,000 yuan.

In 2007, Dong Mingzhu’s annual salary exceeded 1 million yuan for the first time, reaching 1.33 million yuan. In 2009, it rose to 2.1 million yuan, and doubled to 4.75 million yuan two years later. In 2014, Dong Mingzhu's annual salary reached 7.2 million yuan, the highest peak since he took office. In 2015, he dropped slightly to 6.98 million yuan.

According to data disclosed by Gree Electric, Dong Mingzhu received at least 37.02 million yuan in salary during his tenure at Gree.

In this acquisition fundraising rejected by small and medium shareholders, Dong Mingzhu plans to participate in the employee stock ownership plan with 937 million yuan. Dong Mingzhu's shareholding ratio has risen from the current 0.74% to 1.3%, from the tenth shareholder to the first. four. In addition, more than 4,600 Gree employees will be subscribed together with Dong Mingzhu. Gree said that the share of the employee stock ownership plan is derived from the legal salary of the participants and other legal means of self-raising.

According to the statistics of Gree's annual report, Dongjingzhu has won a total of 200 million yuan in dividends. Since 2005, he has obtained at least 37.02 million yuan in salary during Gree's tenure. Based on the share price of Gree on October 28, Dong Mingzhu held a stock market value of 992 million yuan, and none of them were pledged.

If the stock is pledged, Dong Mingzhu will raise enough subscription funds. Through this acquisition, Dong Mingzhu will firmly bind the major shareholder, Yinlong, Gree employees and even himself to the large ship of Gree. However, the small and medium-sized shareholders used actual actions to safeguard their own interests and rejected the acquisition of Yinlong’s matching fund-raising plan.

During Dong Mingzhu’s tenure, Midea’s surpassing Gree

In March of this year, Gree proposed to acquire Zhuhai Yinlong by way of issuing shares, and entered the field of new energy vehicles. This is the first time that Gree has acquired assets in the non-air-conditioning business field in the past 20 years.

At the Gree Interim General Meeting of Shareholders on October 28, Dong Mingzhu also stressed that the market share of Gree air-conditioning has reached about 40%. "There is no room for growth, and there is no way for the gods to expand."

In the 4 years under Dong Mingzhu’s rule, Gree’s performance has declined, and net profit has been surpassed by competitors’ beauty. In 2015, Gree achieved operating income of 97.745 billion yuan, down 29.04% year-on-year, and achieved net profit of 12.532 billion yuan, down 11.46% year-on-year.

Revenue and net profit both fell year on year, which is the first time in the 20 years since Gree went public. In 2012, Gree's revenue reached 99.316 billion yuan, close to 100 billion. Dong Mingzhu, who took over the chairman of the year, proposed a goal of recreating a Gree for five years. Over half of the time, Gree’s revenue returned to the level of 3 years ago.

The competitor’s beauty is “overtaking” and the net profit is more than Gree. In 2015, the net profit of the United States was 12.706 billion yuan, higher than Gree's 12.532 billion yuan, 1.4 times more than the 5.317 billion yuan in 2013. In the first three quarters of this year, Midea achieved revenue of 116.415 billion yuan and net profit of 12.808 billion yuan, surpassing Gree's revenue of 83.133 billion yuan and net profit of 11.229 billion yuan.

Since the establishment of Gree, more than 90% of its revenue has come from air conditioners. It is also a single air-conditioning product. In 2015, Gree's share in the Chinese market exceeded 40%, its share in the global market was 23.1%, and global shipments exceeded 170 million units, making it a myth of the home appliance industry.

Compared with Gree, which only uses air conditioners, competitors are fully deployed in the fields of home appliances such as air conditioners, refrigerators, and washing machines. In 2015, more than 50% of the US revenue comes from refrigerators, washing machines, and small appliances.

Small household appliances and mobile phones have not seen significant results

The acquisition of Zhuhai Yinlong is not the first diversification attempt of Gree. In 2003, Gree Small Appliances Co., Ltd. entered the kitchen appliance market, but it led to the brand dispute between Gree and its parent company Gree Group. The controversy ended with the appointment of Zhu Jianghong, the chairman of Gree Electric, as the chairman, legal representative, president and party secretary of Gree. Since then, Gree Electric Appliances is still eager to develop the main business of air conditioning.

Until Dong Mingzhu took over as chairman of Gree Electric, Gree's diversified road was restarted.

However, after more than two years of development, Gree's small appliance business has not improved much. In 2015, Gree Life Appliance's revenue was only 1.523 billion yuan, accounting for only 1.56% of the total revenue, which was down from the 1.786 billion in 2014. In 2015, Midea's small household appliance business revenue reached 35.446 billion yuan, accounting for 25.6% of total revenue. In the first half of this year, Midea's small household appliance business revenue was 20.368 billion yuan, while Gree's life electrical appliance business revenue was 768 million yuan.

"Gree small household appliances annual revenue is about 1.5 billion yuan, the industry ranks in the third group army; accounted for 1.2% of Gree's total revenue, the contribution rate is low. It can be said that Gree small appliances are not doing well." Household appliance industry observer Liu Buchen In an interview with the Beijing News reporter, he said.

Liu Buchen also believes that Gree's small appliances lack features, and the products have no obvious competitiveness. The original name is Gree, and later renamed Dasong, causing some consumers to lose. “There are a lot of well-known brands in front, and objectively suppressing the formation of small household appliances in Gree is also one of the reasons.”

In addition to living appliances, Dong Mingzhu’s Gree mobile phone, which was promoted by the chairman of the board of directors, is considered by the industry to be another direction for the development of Gree. It is also the most controversial business of Gree.

On June 1, 2015, Dong Mingzhu officially announced the Gree mobile phone sales at the Gree Electric Appliances General Meeting held at the price of 1699 yuan. Dong Mingzhu said: "The future believes that selling 50 million units is not a problem." At the beginning of this year, Gree released the second generation of Gree mobile phones.

However, there is still no authoritative data on the sales of Gree mobile phones. In the 2015 annual report of Gree Electric, there is only one mention of Gree mobile phone, that is, “Gree has built the 'e+e' intelligent environmental protection home system, and the Gree Zhilian APP carried by Gree router and Gree mobile phone is the control center. Interconnection." There are no reports on the development and sales of Gree mobile phones.

At the extraordinary shareholders meeting on October 28, in the face of investors' questions about the development plan of Gree mobile phone, Dong Mingzhu said that Gree mobile phone was developed and manufactured by Gree, refused to OEM, and could not see the benefits in the short term.

Liu Buchen believes that Gree mobile phones can basically be judged as unsuccessful. "The competition in the mobile phone industry is far more fierce than air-conditioning. You are singing and debuting. It is a remarkable feature of the mobile phone market in recent years. The understanding of mobile phone products by Dong Mingzhu and Gree is a typical industrial age thinking, unable to cater to the Internet age. Consumer demand. Secondly, Gree lacked substantial input on mobile phones, such as no research and development capabilities, no manufacturing capabilities, and even sales channels and after-sales service capabilities."

"Is opposed, we let them experience the results of the opposition"

Diversification has not improved, and competitors are under pressure. In order to rebuild a Gree Dong Mingzhu within five years, it is urgent to find a new "engine" for Gree, so the new energy vehicle has entered her field of vision.

However, once the plan to acquire Zhuhai Yinlong was announced, it attracted constant criticism. According to the acquisition plan, Gree Electric intends to issue 835 million shares at 15.57 yuan/share, and purchase 100% equity of Zhuhai Yinlong at a price of 13 billion yuan. At the same time, it plans to raise funds of 15.57 yuan/share non-public offerings to no more than 9.7 billion yuan. In the construction of Zhuhai Yinlong Project, the company's controlling shareholder Gree Group intends to subscribe for 4.188 billion yuan, the employee stock ownership plan is planned to subscribe for no more than 2.38 billion yuan, and Dong Mingzhu personally subscribes for 937 million yuan in the employee stock ownership plan.

The outside world questioned that in the case of Gree's cash flow of 97.234 billion yuan at the end of the third quarter of this year, the issuance and fundraising of the market price of 15.57 yuan far lower than the current Gree 22.4 yuan will substantially dilute the minority shareholders' equity.

In the acquisition plan, Gree said that although the company has high monetary cash, but also has high current liabilities, it needs to hold high liquidity to meet the needs of normal production and operation, and is not suitable for a large amount of one-time long-term capital expenditure.

The Beijing News reporter found that as of the end of the first half of this year, Gree Electric had a current liability of 125.06 billion yuan, and current liabilities accounted for 99.62% of the total debt ratio. The other current liabilities in current liabilities were 61.237 billion yuan, accounting for nearly half. Gree said that among other current liabilities, 59.355 billion yuan was payable for sales.

Sales rebate is Gree's sales policy. Gree explained this policy in the 2012 "Investment Letter of Intent", "Sales rebate refers to the dealers who have purchased a certain amount of goods in a certain period of time, or because the market price has dropped, etc., the company gives the dealer the corresponding price concessions. Or compensation, etc. The company's sales rebate is paid on a monthly basis and paid in installments."

Since 2007, Gree has begun to accrue sales rebates in its financial statements and included other current liabilities. The Beijing News reporter noted that since 2012, Gree’s sales rebate balance has increased significantly in proportion to revenue. In 2012, it accounted for 14.45%, in 2013 it increased to 24.30%, in 2014 it reached 33.87%, and in 2015 it accounted for more than half, at 54.27%.

For the increasing balance of sales rebates, Gree did not explain in the annual report. In the 2012 Intentional Issuance Letter of Intent, Gree has explained that the increase in sales rebate is increasing year by year because the actual payment amount of each period is less than the current provision amount, resulting in the continuous increase in the sales rebate balance under other current liabilities.

A financial person who did not want to be named told the Beijing News that Gree’s revenue fell more than 20% year-on-year last year, but the sales rebate balance still increased by more than 6 billion yuan, and the possibility of over-selling sales rebates was not ruled out. "And the actual amount of annual sales of sales rebates will be less than the amount of the accrued, the funds remain in the Gree account, such liabilities push up Gree's debt ratio, but the actual situation is that the cash flow to Gree does not produce too much influences."

There was enough cash to pay for the acquisition but it was issued to the major shareholders and employees at a low price. At the extraordinary shareholders meeting on October 28, the proposal to acquire Zhuhai Yinlong was reluctantly approved by the major shareholders, but the supporting fundraising proposal was passed. Half of the participants in the meeting voted against and passed.

On November 4, Dong Mingzhu said in an interview with Netease Technology, "The outside world thinks that the shareholders will not pass, it seems to be a big blow to us. In fact, I don't think it is necessary to look at it with such a mentality. Because you have a clear conscience, your The choice is to bring better development to the shareholders. When he does not understand you, he opposes, and we let them experience the results of the opposition."

â–  People

Dong Mingzhu: I never make mistakes.

On October 28th, Dong Mingzhu’s video at the Gree EGM was “sentenced” and “learned” the video of the small and medium shareholders, which made the 62-year-old business iron lady become the focus of attention again. From Gree's grassroots sales, to the sales of 100 billion home appliance faucets, sales myths, real economic representatives, unpretentious, love to shoot, tough, stubborn, the outside world will put many labels on Dong Mingzhu, the distinctive personality also let Dong Mingzhu has received much attention and controversy.

From sales to the chairman

In August 1954, Dong Mingzhu was born in an ordinary family in Nanjing. In 1990, her husband died. 36-year-old Dong Mingzhu hosted his 8-year-old son to his mother. He came to Zhuhai from Nanjing alone and found a sales job at Gree's predecessor, Haili State Air Conditioning Factory.

In 1992, Dong Mingzhu’s sales in Anhui exceeded 16 million yuan, accounting for one-eighth of Gree’s sales at the time. After being transferred to Nanjing, Dong Mingzhu’s personal sales reached an astonishing 36.5 million yuan in one year, creating a sales myth.

At the end of 1994, Dong Mingzhu was elected as the head of the company's operations department. In 2001, 47-year-old Dong Mingzhu served as general manager of Gree Electric. From an ordinary employee to the second person of the company, which is second only to Gree founder Zhu Jianghong, Dong Mingzhu only spent 11 years.

Give yourself the highest score

In 2013, CCTV's "China's Economic Person of the Year" selection, because Xiaomi founder Lei Jun said, "If Xiaomi's turnover in 5 years cannot exceed Gree, he will lose you a dollar." Dong Mingzhu said, "If you want to gamble, you will bet 10 billion." .

The overbearing female president Dong Mingzhu and the "1 billion gambling contract" of "Rebs" made Dong Mingzhu become a "net red" in an instant. In the words of financial writer Wu Xiaobo, "The reason for the red is very sudden. The manufacturing industry has been forced into the corner by the Internet economy. At this time, a person needs to stand up and raise the knife and shout a few voices for himself."

In March 2015, the Gree mobile phone was born. "Gree do mobile phones, kill Xiaomi in minutes". For Gree mobile phones, Dong Mingzhu has released a lot of rhetoric, "Gree mobile phone sales target 100 million in 2015", "create a mobile phone that does not need to change for three years", "Gree mobile phone 2 On behalf of the explosion of the iPhone 6S", "the boot screen must be me, this is respect for consumers."

Gree Marketing Minister Chen Zili told reporters that the two generations of mobile phones actually did not have large-scale public sales, but only a small-scale group purchase. "Dong Mingzhu regards the reputation of the company as heavier than life. She will not use the inferior products to fool consumers." Dong Mingzhu accepted the media question in August last year, "When I gave Gree a few points," she replied, "I It’s always the highest score for yourself.”

"I will always be right"

"I have never made mistakes. I never admit mistakes. I will always be right." In many public occasions, Dong Mingzhu said so.

On November 4, Dong Mingzhu explained in an interview with NetEase that he did not make mistakes because he could not make mistakes.

"If I make a decision mistake, I can't explain it to my employees. The reason many companies fall down is because the leaders made mistakes or mismanaged. When a company fell, the most hurt is the employees, not just yourself. So since we are sitting in a leadership position and being a manager, you should demand yourself harshly and not let the company fall."

Regarding the criticism of Dong Mingzhu’s words and deeds, a Gree employee of her subordinate told the reporter, “It’s a kind of mentality similar to hateful iron, she wants to change something she doesn’t agree with.” In the eyes of employees, Dong Mingzhu’s so-called “arrogance and arrogance” stems from her strong sense of responsibility and mission to Gree. She does not allow herself to make mistakes. “Gree is her life.”

No matter how much controversy is attracted, Gree is the focus of all work of Dong Mingzhu. Dong Mingzhu once said that almost all of the time was dedicated to Gree. He could have no holidays for more than ten years. He only wanted one thing all the time - selling air conditioners.

"The place you walked is not long grass"

In September of this year, "Lu Yu You" was broadcast a special program, which can intuitively feel the domineering side of "Iron Lady" Dong Mingzhu.

In the program, because the staff did not prepare the car in time, the program group needed to wait for time. Dong Mingzhu said with an angry voice, "I will blame if you don't withdraw you." Back at the headquarters, Dong Mingzhu directed the staff to turn off the light of the projectors on the faces of themselves and the guests while taking photos with the guests. However, the staff turned off the lights in the conference room. Dong Mingzhu angrily directed the staff to "turn off the lights and turn this off." When Dong Mingzhu was passing by the park, many employees found that they were playing mobile phones while walking. They also criticized two sentences.

Some netizens read the program and said that Dong Mingzhu was "too cute." However, Dong Mingzhu’s style is also reminiscent of the evaluation: “The road that Dong’s sister has traveled can’t grow out.”

"There is no upper limit for research funding, and every penny of activities must be checked." Talking about Dong Mingzhu's hegemony and "strict mother" style of management, a Gree employee said that Gree held a large-scale event in Beijing. Need to rent a number of buses. In response to the unexpected situation, the employee ordered one more. "The budget table is so dense that so many pages, she can see it at a glance, how to ask the bus so much." Let her feel the deepest, in addition to Dong Mingzhu's eyes, there is no waste of a penny attitude.

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